Forum Topics IBX IBX Imagion Biosystems Ltd General Discussion
callum34
Added 6 years ago

Cheers for the input Strawman and Reon!

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callum34
Added 6 years ago

Can anybody provide some clarity for me, looking briefly at the operating cash flows and the cash outflows for the quarter ended 30 september 2020. The outflows are $1.8m and only set to increase seemingly for a long time during the phase 1 study set to begin in the "fourth calendar quarter" 

even very conservatively a 2m cash burn per quarter and 8.3m in the bank, leaves a cash runway of just over a year before another capital raise is on the cards even after 2 capital raises in 2020.

Is this factor negligible in the valuation when compared to the potential upside of fast tracked FDA approval and the large addressable market for the product and potential up sells/expansion of the bussiness model?

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Strawman
Added 6 years ago

Personally i think it is far from negligible as a principle. Dilution can be a very real factor, and i think we need to account for it when valuing a company. (That being said, I don't follow this specific company so perhaps there are reasons to think a further raise is unnecessary -- although from your comments I think you are right to be concerned) As shareholders, our currency is shares. So *per share* cash flows/earnings/sales etc are what really matter.

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