RE: Avct28 Sep 2023 09:20
It's not losses which cripple early stage companies like Avacta...it's cash flow and lack of cash reserves.
Avacta's two recent purchases came with income streams which not only benefit the DX side of the business they benefit the business as a whole. As a result of the purchases the DX side of the business in the near term is projected to move into profitability together with expansion.
It looks like the markets are, like many on here, completely ignoring the day to day factors which are the back bone of the company and only looking at the bsiness from it's ongoing clinical trial standpoint. They don't like agreements with ND clauses, they don't like uncertainty regarding debt payments. In fact, they don't like early stage clinical trials because that's where most products fail. The markets are cautious and that's why they tend to stick to FTSE Listings rather than push the boat out on AIM. They do like fundraisers...buying at a discount and selling back to PI's at a profit often by creating a bit of a buying frenzy...
For me, it's now just a waiting game. I have enough invested as a not too bad price and will simply wait for data news in Q4 (probably a nice Christmas pressy), then start of Phase 2....anything juicey in the meantime will be a bonus.
Am out for lunch so will miss the live Presentation but will catch up with it later...enjoy...