Oct. 23 at 4:12 PM
$MDAI I actually like this offering and the signal. A few things:
1) with the gov't shutdown, i would assume the BARDA payments are frozen. W/ payments, they were burning
$2M/quarter, as of 9/30, they would have been at
$8M, down from
$10M. Without payments, likely burning
$5-7M. They needed to do this to keep operating the business.
2) This raise was pretty small in grand scheme of things. Indicates that they dont want to overdo it on raising capital now, which hopefully indicates confidence in FDA approval and ability to raise at much higher share prices down the road (or to avoid a raise altogether and just sell the company)
3)
$1.9 vs.
$2.2 on a penny stock with a thinly traded float and small market cap is not a bad deal and signals someone went through diligence and got comfortable with the story and outlook
4) share price holding well supports the above, usually with these the stock declines significantly
