Post by dreamboatcruise on Nov 10, 2017 15:24:41 GMT -5
The white Knight! [Edit Note: fictional conversation. -BD]
Kimi: Hi Mike, first I would like you to know, that I’m impressed with your work as CEO
Mike: Thanks Kimi
Kimi: I’ve heard you say, that extending the runway is primary issue to be successful
Mike: Yes, I said it several times
Kimi: How could you get $57 Mill with 10 Mill shares? We all have been enthusiastic if it was $40 Mill. No one could expect sales at $6. Genius – Again, how have you done it? Who paid $6 for a share which is between $2 and 3?
Mike: I won’t tell
Kimi: Mannkind now has $57 Mill more cash in hand – that’s awesome! That would extend the runway to Summer 2018 – enough time to be successful with a moderate growth rate – you’ve got it!
Mike: True
Kimi: You can imagine my surprise, when I heard you say that you will finance TV ads.
In other words – you’re going to spend much more money, instead of extending the runway
Some Analysts are saying you will run out of cash very shortly – why this paradigm shift?
Mike: I can’t tell
Kimi: Is it possible, that you’ve been asked to do TV ads from the new shareholders?
Mike: Sorry, I can’t ………
Kimi: Are you going to say, that you would take the risk of bancruptcy or massive dilution instead of extending the runway?
Lizard hiding in a potted plant mumbling under his lizard breath: Well, he is seeking authorization for 50% dilution, so he's preparing for possibility of massive dilution. Not sure why one would prepare for something if they felt there was no risk of it coming to pass.
Mike: No!
Kimi: No?
Mike: No!
Kimi: That means, you’ll have enough money in the back in case of cash running short!
Mike: I can’t ….
Kimi: Who is willing to pay ads, more sales reps to accelerate growth?
Kimi: I know you can’t tell – thanks!