Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
The was a statement in the annual review to say cash could run out in February '24 if anticipated inflows did not materialise. They need £7 million just to keep afloat for 12 months, I can't imagine any single partner having the confidence to contribute that much to a business valued at £2 million .
Iain Ross also said in one of these online business updates that they aren't going to run out of cash. A statement of fact, until you read the small print. Did similar happen with RedX? The name alone being a warning sign if ever there was one! Lol.
The annual report can be taken as fact and shouldn't be ignored, I can speculate based on the facts as I wish:
'...there is no guarantee that attempts to secure adequate cash inflows from the Group’s exosome platform, IP and legacy assets or through equity fund raising with the timescales stated above will be successful. These conditions indicate the existence of a material uncertainty, which may cast significant doubt about the Group’s and Company’s ability to continue as a going concern.'
Of course for private investors the hope would be that the CEO and board are working to secure a superb deal for our benefit, but there are no facts suggest this.
That's old news with with no recent feedback - exactly my point.
Read the accounts - 'the Group and Company and have prepared a further plausible but downside scenario which excludes these inflows and indicates a cash runway until February 2024.'
Well guess what, it's February 2024 and there have been no inflows. Indeed, we have no indication that any inflows are forthcoming within the required timeframe. Further, we have no indication of any activity whatsoever from the CEO to justify the outflows.
So again, I am lead to believe their plan is indeed to run out of cash, take private at minimal cost, and then become successful as a private entity.
Irrelevant if they have 4 weeks' cash and don't make any positive announcements within that time.
I've not seen any direction from the company regarding what they plan to achieve before running out of cash, which leads me to believe their plan is indeed to run out of cash, take private at minimal cost, and then become successful as a private entity.
Presumably the company could run out of cash, be taken private by the directors, and then sold on. So yes, a deal could be done at the lowest possible share price. But not in the interests of the current shareholders!
In fact; 'The Directors recognise that not all of these assumed inflows are fully within the control of the Group and Company and have prepared a further plausible but downside scenario which excludes these inflows and indicates a cash runway until February 2024.'
Considering there have been minimal cash inflows, the above scenario is therefore likely and only 4 weeks away. 4 weeks is not long enough to raise sufficient capital to continue operating through issuance of new stock, therefore one might be lead to believe a deal is close.
Seems major pharma have an interest in the field:
https://exosome-rna.com/featured-exosome-job-sr-scientist-exosomes/
With no news of deals and therefore the audit's worst case scenario of cash runway to February 2024 looking ever more likely, should we assume that deals ARE in the offing?
Leaving only 3 months to fundraise via. issuing stock, with Christmas in the middle, doesn't seem prudent.
I guess they didn't present after all? No longer on the speakerlist and the event removed from ReNeuron's website, unless I'm mistaken.
https://exosomebased-therapeutics.com/speakers/
CEO said publicly that it won't go bust, so it won't go bust. He also previously said they're going to raise loads of dosh, so they're going to raise loads of dosh. When the CEO makes those statements, they must be taken as fact.
Two things are certain:
It's in the company's partners' interest that the company continues as a going-concern in its current form. They've put cash into projects and they stand to benefit from the results. One of the partners buying the company may restrict their peers from benefiting.
The declared risk of not continuing as a going-concern will put off potential partners.