'very low cash burn'29 Sep 2023 14:32
Pm might be exaggerating when he writes 'very low cash burn'. The interims showed cash on hand at £891k and the receipt of £193k tax credit after 30 June. Net cash outflows from operations was £1104k = £184k a month. Burning a third of your m/cap in a year puts 'very low cash burn' in a new perspective.
So total cash lasts 5.89 months ([891+193]/184) if they keep operations at the same pace and there has been no statement made about slowing things down to conserve cash.
5.89 months takes the company to the bank holiday after Boxing Day which is less than 3 months away. Cash is needed one way or another but suggesting that the company has a 'very low cash burn' without mentioning that it has very little cash to burn just invites criticism and a reminder that the company will soon need a cash injection.
It either comes from a deal for VAL201 [yes, that same deal that was supposed to be signed in 2021 and that the company said "The first payments are expected by the end of 2021."] or a placing / (convertible) loan.
Happy days?