Uitstekende Post van DD op het YF - gisteren:
Today's PR on SSF was good news for RLF and RLF Shareholders:
1. We found out that GEM still holds over 1.3b shares. Last I saw they had that same amount a couple of months ago. They have not sold a single share, other than maybe to cover their funding for RLF. If they exercised warrants for cash, they probably sell a couple of shares to get the cash back. Same goes for SSF, if Relief draws on it, then GEM most likely sells some shares to get cash back. So nothing to worry when you see GEM selling a few million shares. They have 1.3b and are not dumping any shares.
2. Relief gets access to raise capital at 10% discount to market price (over 15-day average). This is a great deal, because BNGO just traded a couple weeks ago at $5 and they announced dilution event at $3.05 (40% discount). Then they went up to $9 and diluted again, raising $200m, at $6 (huge discount again). RLF decides when to draw on the SSF as needed, and they have no obligation to use it. This is a great deal. GEM wins too, because they can sell shares on market and make an immediate 10% gain. GEM deserves this, because they have been with the company from day 1. They poured in millions when there was little hope for RLF.
3. Even if RLF drew entire $50m today, that would be 100m shares at $0.50, and only 3% dilution. If we get great trial data and the stock goes up, we might be talking about 1% dilution to raise $50m.
4. The PR clearly states that the money will be used to order RLF-100 for commercialization. Like I have been saying all this time, it is expensive to order product from BACHEM and Nephron. They need upfront payments, so RLF and NRXP need cash. You need a lot of cash to order 1 million courses of treatment. This SSF is a godsend. I argued this point very hard over the past few months. Many disagreed with me, but they were all wrong as this PR proves today. RLF still has $50m or so in cash, which isn't enough to order as much product as they expect to need. This is very good news, as the more product we order, the more we sell. High margin sales too. Doesn't matter how much we pay for it if we sell it at $5k-$10k per course.
5. Everything that NRX and RLF have been doing over the last few weeks leads to one destination = Commercialization. They are gearing up to get the drug to market as soon as the trial results come in. It sounds like they are very optimistic that the results will be good.
6. Yesterday's PR was even better than today's. They got a steal of a deal to buy those rights to inhaled VIP for Checkpoint Inhibitor Pneumonitis. This is going to be another recurring revenue stream of hundreds of millions of dollars annually. And they paid under $50m for it. Great deal!
If we get the great trial results we are hoping for, then everything else will fall into place. Looking forward to great data. Remember that it will take the world weeks or months to realize what we have here. Don't sell yourselves too short if the trial data is great. We didn't hold for months just to sell at $1-$2. At least I didn't.