RNS Today11 Dec 2018 15:33
Below is an extract from the notes to the accounts & reflects that the Company does not have a 12 months cash runway & puts Summit back to a part qualified position a situation Summit have been in before.Within the paragraph below are the following words :
'These circumstances represent a material uncertainty which may cast and raise substantial doubt on the Group’s ability to continue as a going concern.' see included below:
'The Group is evaluating various options to finance its cash needs, through a combination of some, or all, of the following: equity offerings, collaborations, strategic alliances, grants and clinical trial support from government entities, philanthropic, non-government and not-for-profit organisations and patient advocacy groups, debt financings, and marketing, distribution or licensing arrangements. Whilst the Group believes that funds would be available in this manner before the end of September 2019, there can be no assurance that the Group will be able to generate funds in this manner, on terms acceptable to the Group, on a timely basis or at all, which would impact the Group’s ability to continue as a going concern. The failure of the Group to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Group’s business, results of operations and financial condition. These circumstances represent a material uncertainty which may cast and raise substantial doubt on the Group’s ability to continue as a going concern. The interim financial statements do not contain any adjustments that might result from the outcome of this uncertainty'
The cash forecast has not been extended beyond September 2019 as also reported in the previous quarters accounts
and this will look even worse if as at 31st January 2019 this remains the same.In the belief that Summit will find additional funds before next September the current SP makes for a Strong Buy.However Summit , in my opinion, has some 6 months to find additional funds or it will be in 'the last chance saloon'.
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