Cash15 Jul 2024 15:03
Unfortubtaley like many other small biotechs apta is struggling with its cash position and will require further funding in the near future. Whilst the increase in revenues from recent deals is welce and a good sign that the business had a future it's not enough for the company to break even before the cash runs out. Initial projections from the company were for this to happen in August but this may have been extended slightly with the new deals. Renmeber though not all the monies from those deals will be recognised straight away but spread out over the length of the deal.
With this in mind apta will need to raise funds in the near future and in this market that will result in the sp falling substantially from where it is today. Most companies have suffered a 50-75% discount to raise modest amounts of cash namely Polx, Gdr, sce, Avacta, etc etc. I suspect a similar event is coming here and likely explains the lack of share price rise on the recent run of good news. Whilst I like the company and progress it's making until this happens the shares are unlikely to rise, infcat more likely to fall as that event apooraches.
I suspect a fund raise in the region of 0.3p will be what happens and hopefully they raise around 3m to help them get to breakeven. When it happens I will look to buy shares in apta.