stocksrising
5 days ago
They said cash runway thru q1, 2025 and the way they burn*, 💯 positive of a raise as soon as SEC reviews Financials most likely..clock it back and do simultaneous offering .. they also want to access final tranches of Hercules**
*Material and Other Risks Associated with Our Business—
Below is a summary of the material risks to our business, operations and the investment in our common stock. This summary does not address all of the risks that we face:
• We have incurred significant losses since our inception and we may not achieve our goal of becoming profitable in the timeframe we expect, or at all.
• There is substantial doubt regarding our ability to continue as a going concern. We will need to raise additional funding, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our commercial programs, product development efforts or other operations.
• Among other potential adverse events, insertional oncogenesis is a significant risk of gene therapies using viral vectors that can integrate into the genome. Any such adverse events may require us to halt or delay further clinical development of our products or any future product candidates or to suspend or cease commercialization, and the commercial potential of our products and any such future product candidates may be materially and negatively impacted.
• We rely on complex, single-source supply chains for SKYSONA, ZYNTEGLO, and LYFGENIA, respectively. The manufacture, testing and delivery of LVV and drug products present significant challenges for us, and we may not be able to produce our vector and drug products at the quality, quantities, or timing needed to support our clinical programs and commercialization.
**The Loan and Security Agreement ("LSA") requires the Company to comply with customary affirmative and negative covenants, including, among other things, a requirement to deliver annual financial statements within 90 days of each fiscal year and quarterly financial statements within 45 days of each fiscal quarter. A failure to comply with these covenants, or failure to obtain a waiver for any non-compliance, would result in an event of default under the LSA and would allow Hercules to accelerate repayment of the debt, which could materially and adversely affect the business, results of operations and financial condition of the Company. On April 30, 2024, July 9, 2024, August 13, 2024, and August 29, 2024 the Company and Hercules entered into amendments to the LSA providing for revised monthly financial reporting metrics for each month through September 30, 2024 and extension of the deadlines by which the Company must provide certain annual and quarterly financial statements.
On August 13, 2024, the Company and Hercules entered into a third amendment to the LSA (the "Third Amendment"), pursuant to which the parties agreed to, among other things, revised terms for the availability of the second and third tranches of funding under the LSA. In accordance with the Third Amendment, the Company may draw the second tranche of $25.0 million during the period commencing on the date the Company has (x) received at least $75.0 million in gross cash proceeds from qualified financing transactions by December 20, 2024 and (y) completed patient starts (cell collections) for at least
50 LYFGENIA patients by March 31, 2025 or 70 LYFGENIA patients by June 30, 2025 (collectively, the "Tranche 2 Milestone") and ending on the earlier of
(i) the date that is 30 days immediately following achievement of the Tranche 2 Milestone and ii) July 31, 2025. The Company may draw the third tranche of $25.0 million during the period commencing on the date the Company has (x) received at least $100.0 million in gross cash proceeds from qualified financing transactions by December 20, 2024 or at least $125.0 million by June 30, 2025 and (y) completed 70 drug product deliveries within a given six-month period ending no later than December 31, 2025, at least 40 of which are for LYFGENIA (collectively, the "Tranche 3 Milestone") and ending on the earlier of (i) the date that is 30 days immediately following the date the Company achieves the Tranche 3 Milestone and (ii) December 31, 2025. Additionally, the Company and Hercules agreed to increase the minimum cash coverage requirement from 40% to 45% of the outstanding principal of the term loan.
I realize these are ‘safe harbor’ jargon statements, however a raise is needed is necessary before year end :(
Moose412
3 weeks ago
I figure FMV as of Sept 1st, just with cash on hand, is ~$0.75. This does not account for cash flows from Qtr 2 '24 Lyfgenia, nor from Q 3 and 4 sales of all three. Skysona, for CALD, is the biggest of the three approved therapies, IMO. Lyfgenia (Sickle Cell) is great, but when you get to stopping and/or repairing mitochondria damage, that's just amazing. The therapy market for Skysona may only be in the tens, but the future markets are much, much larger.
Huge sell-off today - 3.6m buys vs 7.1 m sells - and it closes down less than 2%.
Finally, we have Hercules backing BLUE. That's pretty huge.