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TOPIC: Next Capital Raise is Imminent

Next Capital Raise is Imminent 24 Aug 2014 16:11 #2082

  • DOV
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I pulled out the calculator and came up with this observation. The June 4th raise of roughly $ 9.5MM net occurred resulting in the cash balance of $ 12.7MM at June 30th. With the burn rate flat since then, the cash balance today should be very close to $ 8.0MM once again.

With the loan covenant requiring a minimum cash balance of three months, I would expect a deal of some sort this week (unless they have been tapping the ATM at these prices or we finally get paid for product shipments). If not this week, it will be in the next three weeks.

The cash burn rate will fall when Barda offsets expenses. Severance costs will delay the drop in the burn rate for a period of time. Up to now, the burn rate is roughly 2.6MM per month. Going forward it should drop to as low as 2.0MM per month (Barda offset). (? edit fas)
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Next Capital Raise is Imminent 24 Aug 2014 16:56 #2083

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Try typing without using dollar sign..... Dumbest thing Saad ever did was borrow money...... That's for folks with cash flow. Where the f@@@ did he get his financial training???? Glad that knucklehead is gone.

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Next Capital Raise is Imminent 24 Aug 2014 21:31 #2084

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DOV,

When are they going to right this ship?!? Seems like everything that could go wrong has literally gone wrong since Hedrick took over. Sadly we all expected a complete reversal after the era of Calhouning was deemed over. I guess the ghost of Calhoun is still around to haunt us. The recent stock option grants were ridiculously timed as well. I mean, WTF.
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Next Capital Raise is Imminent 25 Aug 2014 05:17 #2085

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Yes- something need to be "cooked" soon.

$ 40 till 60 Mio would be my belly guess as being required to settle the BS issue. If the raise of money is by a secondary that would mean about 50 Mio additional shares...????!!!!
:evil: :evil: :KO: :KO: :bang: :bang: :bash: :bash:


I refuse to believe or accept that- for the time being. :yawn: :yawn: :really: :really:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Next Capital Raise is Imminent 25 Aug 2014 07:03 #2086

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I think I would prefer the BS issue to be off the table once and for all, even if this means an additional 50 mio shares. At least we can start looking forward at that moment and not constantly check the bank account to see what we can do or not in the next 6 months....
Anyway, the options for Management I also find unbelievable regarding its timing. Hedrick with a 'shareholder friendly' speech during last meeting and now doing this....incredible ! I know he's also a shareholder, but being 'shareholder friendly' has to be for the entire shareholder community, damned !!!! :-(

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Next Capital Raise is Imminent 25 Aug 2014 08:56 #2087

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Fas

You seem to be on my page now where I said some time ago that CYTX needed another 90-100 million in cash.

Perhaps a partner emerges with some $ but they will be floating more shares imho no matter what.

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Next Capital Raise is Imminent 25 Aug 2014 09:11 #2089

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Hedge,

"CYTX needed another 90-100 million in cash"

Lim could own the company with another 100 million or so. There are many interesting scenarios out there but coming up with that kind of cash for a company that has such limited potential cash flow seems to me to be a stretch. Based on the projected BARDA revenue stream alone an investment would be foolish. Considering the near term frustrations of - management turmoil, Athena, and now a shareholder lawsuit, a white knight is needed or I fear the worst might be in the cards. If TT leaves the board due to any kind of scandal the company will be doomed. The future is not looking bright. It could be that Hedrick felt the stock options were worthless. He may be correct.

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Next Capital Raise is Imminent 25 Aug 2014 11:58 #2090

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fatboy

This was before Mr Lim and his 24 million dollar stock purchase and the stock sale in June (poor souls)

We still have years to go before we get a sales ramp size containing meaningful numbers imho

Cutting cost is all they can do as they try to march the science forward until those sales come in.

As for the BOD...I very much doubt TT is leaving but clearly we could afford to loose a few board members for this small company...I have my few I'd like to see go.

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Next Capital Raise is Imminent 25 Aug 2014 13:19 #2091

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Hedge,
I totally agree. The more BOD there are the less that gets done.

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Next Capital Raise is Imminent 30 Aug 2014 16:26 #2114

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There is no evidence that any member of the BOD has done anything to introduce us to sources of needed capital or needed business ventures involving sales revenue. Advice is cheap. Like everybody else, I am a total loss as to why we have so many BOD members.

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Next Capital Raise is Imminent 31 Aug 2014 04:52 #2115

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Warning: parts of this post should NOT be taken too seriously... other parts should :grin:

Anyway, in the time frame that I regularly talked to Saad- that is early 2005 until late 2007- we also (of course) talked about his expectations on the future of the Company he (at that time) recently joined.

The discussion pretty much arrived quickly at Companies like Baxter and Medtronic (those days pretty much similar size), but yes- he thought that would take 15-20 years or so.

Now 10 years are gone and thank god- no more Mark Saad and the new CFO sounding like someone who speaks my language that is :
of a conservative public accountant who has a (gigantic) knack for business development and a major interest in regenerative technologies.

So- just for what it is worth :write: :KO: I had a look at the composition of the Boards of the referenced Companies- Baxter has 13 Directors and Medtronic 10. Cytori has 9 at present but with a CEO (or president) and a Lim representative- 11. i.e. one more than Baxter. :vegas: :vegas:

One thing should be said though- I still think Mark could very well be right in his assessment. ADRCs are the paradigm shift in medicine; it just is a bit difficult to convey the world of the fact. :grin: :winky:

Here the links to the Boards:
Baxter Board

Medtronic Board

Very interesting: the last person on the Medtronic Board is Preetha Reddy- daughter of Dr. Reddy- Founder of Apollo Hospitals.
She is somebody that should be on Cytori´s Board, you can dump virtually everbody else. :joy: :really:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Next Capital Raise is Imminent 31 Aug 2014 21:37 #2118

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I like where the recent discussions here have taken us.

Open discussion on the wrongs and ineffectiveness of past management and that the changes are good.

Reshaping the BOD may also be good...though no evidence that is happening or going to happen

Realistic timelines of when this tech will be ready for prime time...I personally never believed the short timelines of some and often openly ridiculed JK's lofty cardiac only earnings estimates.

Differing opinions are a good thing for open and honest discussion but when everyone was on the YMB I also realistic views were important not only for current shareholders but also for new comers so their investment horizons could withstand set backs. Educated shareholders are the best shareholders and a big reason Fas has spent so much of his personal time in creating this site.

Now...if we can pull a rabbit out of the hat with the balance sheet we may actually have had a productive year for this company !

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Next Capital Raise is Imminent 01 Sep 2014 05:09 #2119

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The part of my last post, which I am not so serious about, was the size of the BOD.

I really could not care less, although I do not understand what value some folks bring to the party. As a Company which will likely develop strongest in Japan and in Emerging Nations, the lack of nationals on the BOD from these countries is most striking.

I always expected this guy on the BOD one day, since he was also Chairman of Cellsociety amongst many other functions. He is "friendly" to CYTX tech and advised the Diet on Fukushima (as Chairman of the investigation committee).

His recent function of Chair of GHIT fits perfectly to Cytori.



I recommend to read his blog regularly- very very interesting man- Kurokawa

Kiyoshi Kurokawa

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Next Capital Raise is Imminent 01 Sep 2014 06:02 #2120

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To come back at the first post of thread by Lewis (DOV), my partner who reads all 10K´s and 10Q´s line by line, mentioned there was something on August 31 (i.e. yesterday) with the covenants of the Oxford Finance loan.

I glanced over the contract which is in the Q2 2013 report, but that one is so thick and is so boring that I gave up and settled for the 8K issued on the day of the announcement.

This just gives as "extra" on Lewis´post that Cytori pays a small Mio every first day of the month starting August 1 2014 i.e. today September 1 too (well assuming no banks are open on Labor Day- than tomorrow). Simply being 27 Mio in 36 installments plus 9,75% interest on the balance.

That quickly empties the money purse... :whistle:
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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Next Capital Raise is Imminent 01 Sep 2014 08:30 #2121

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Ammendment to the contract terms is a very possible news item soon.

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Next Capital Raise is Imminent 01 Sep 2014 09:17 #2122

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Yes-

Cytori must have been delinquent since July 31/Aug 1. If for some miracle they were not at the time- they surely must be now as of today.

So - yes as Lewis said- probably tomorrow or so. :really:

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

Next Capital Raise is Imminent 01 Sep 2014 21:27 #2125

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And yet , Rickey knew they were about out of cash on June 5 when he bought shares...... Or even should need cash soon. And yet the comment recently about buying shares at these levels if he could.....
I see a big move up quickly. $1.42 is major resistance at this point .... First things first . Need 2 consecutive daily closes above $1.42 .... You see how much panic is out there as the talk track in the sec filing was matter of fact ( as it always is) about default talk. They need to get this behind them the first day the new CFO takes over .... Certainly this week.

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Next Capital Raise is Imminent 01 Sep 2014 21:28 #2126

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Get above 1.42 that is

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Next Capital Raise is Imminent 13 Sep 2014 16:42 #2170

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I would get KT Lim to buy 24MM shares at 2 bucks with a warrant for 8mm shares at 3 bucks and pay the debt off, MAKE a partner deal happen ...and run lean. Debt with a non-rev company, what a fucking stupid decision that was.....then compounding the stupidity with greed to the point where you can't make a deal....honestly think we'll see some more KT Lim money.... If I was him, I'd be calling cytori , I wouldn't be waiting on them to call me. F
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Next Capital Raise is Imminent 13 Sep 2014 17:08 #2171

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Poison Pill kicks in around 20% ownership I believe.

Why would Lim pay nearly a 100% premium ?

I agree Lim could be a viable option and considered it myself but what you laid out just doesnt seem likely at all.

Maybe sell rights to Japan ? How would Japan react to Lim as owner of Cytori's Apps in Japan ?

I do agree the debt issue is killing us....CC/Saad deals still sting even after they are gone....I just dont think they can pay off that debt and get funding to run the company comfortably with enough cash cushion to attract the kind of investors we need.

Balance sheet first...then debt later down the road.
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