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TOPIC: June approaching- Funding solution required

June approaching- Funding solution required 27 May 2013 09:29 #499

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The Q1 Statement of Cash Flows provides a very clear picture of the cash situations:

Cash was reduced from 25.7 Mio at year-end 2012 to 16.4 Mio at Q1 quarter end.

Operating cash burn approx. 3 Mio per month. Debt redemption in Q1 equaled the proceeds from the "extra´s" on the December secondary.

So total cash burn about 12 Mio in Q2 with a restriction on cash holding from the GE loan, still an issue.

Decision time- partner deal or secondary or some other temporary financing are due. :evil:

Actually- I am quite astonished, this has not been settled yet- not very prudent, I can also say. :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:

June approaching- Funding solution required 27 May 2013 10:52 #500

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***Actually- I am quite astonished, this has not been settled yet- not very prudent, I can also say.***

This statement would imply you thought Cytori would have learned from past mistakes and not run cash down to the very last minute :bash:

I am sure Cytori is working on all fronts but as always...they have zero real leverage.

The GE loan is turning out to be very expensive money as CYTX again tries to rework the terms.

Banks want nothing to do with us due to the horrible balance sheet and low sales.

Partners have never paid up without a exchange for shares...Astellas well past their 2 year option that expired in December yet the seem to retain their observer seat on the board.

The last secondary a few months ago is seeing many of the takers bailing from their $2.85 purchase.

June is quarter end window dressing for institutions...this may add some additional PPS pressure should a secondary be necessary.

That said...maybe they are working the 3 day weekend here in the states and we get news Tuesday...Hmmm...what are the chances.
Also, I not long ago suggested on the YMB that if we are to see a secondary that the ideal timing would be between May 15 and June 15.

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June approaching- Funding solution required 27 May 2013 15:01 #501

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I am sure Cytori is working on all fronts but as always...they have zero real leverage.


We will know soon enough. Its not impossible that they renew and top up the GE (and others) loan again under the most horrible conditions.

When I saw the last one they did, the terms reminded me of Henry Fonda as loan shark talking to the guy with the rope around his neck (CC) -while Fonda says - accept the terms of my loan or else..


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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:

June approaching- Funding solution required 27 May 2013 16:20 #502

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Thing is Fas...they really need soooo much money. :bang:
Management may be in denial to the real world......but I am not !!! :evil:
We have the same bi-annual funding needs as we have always been...nothing has changed in those therms as in the previous years we have been here. They need another 100 million ,imho ,from somewhere. :puke:

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June approaching- Funding solution required 28 May 2013 05:01 #503

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We have the same bi-annual funding needs as we have always been...nothing has changed in those therms as in the previous years we have been here. They need another 100 million ,imho ,from somewhere


Well- I respect your opinion on that, but surely I do not concur with that. The reason why I consider loan re-structuring an option, is matching re-demptions with future cash-inflows, which however- I agree with that- would be the FOURTH time a new assessment would have been made.

basically I feel- if management would have this "100 Million" somewhere in the back of their minds, they could not hire the likes of Kesten and Shores and I know they have been recruiting heavily in the science arm also. Instead - you would reduce your headcount by at least 50% to start survival mode like Aastrom is doing.

I still believe these EU approvals especially in the wound arena are close to market- just needs a partner and a sales force, either in Japan or EU or Both. :winky:

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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:

June approaching- Funding solution required 28 May 2013 06:58 #504

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Just to throw out some other thoughts or better observations on this issue-

To me the "silence is deafening"-- :grin:

Last year the 14A - i.e. the report accompanying the invitation to the shareholders meeting came out April 30 !!!!

So far no filing!!!! in 2013!!!!

If a secondary is announced in the next couple of days- can you imagine that "all hell will break lose?" :evil:

I can- and I would not want to be in CCs shoes leading up to the Annual Meeting after what has been said at the last Meeting and in the Q3 call in November last year.

Interesting times :grin: :cool: :nice:

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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:

June approaching- Funding solution required 28 May 2013 09:37 #505

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One thing I think Cytori has going for it is the recent deal Mesoblast did to raise 175 million.... Thjere must be funds that want into the sector...Cytori is a leader in the sector

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June approaching- Funding solution required 28 May 2013 10:12 #506

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Fas...I hope you are correct.
I just feel ending the cash burn is going to take time considering current and possible future share count.

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June approaching- Funding solution required 28 May 2013 10:21 #507

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Joey
The mesoblast deal happened some time ago now and no one has stepped in to pay up for Cytori technology between then and now.
If there are funds that want in they are sure in no hurry. Hedrick has recently said Big Pharma has taken a wait and see approach....so who know what is really happening. Cytori is the leader in terms of number of patients treated and personally I favor their tech but no one else seems to care from partners to dedicated institutional holders willing to support the PPS. Remember, a special situation but Olympus is bailing not moving forward and expanding their relationship with us (although I view this as very positive).

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June approaching- Funding solution required 28 May 2013 10:40 #508

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Hedge-

On top of the pile of money they had- they did raise 170 Mio Aussie dollars in a private placement in March this year.

I think that was very prudent of Itescu- personally I think they are over-valued and tapping the market now, appears to be smart to me.

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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:

June approaching- Funding solution required 28 May 2013 11:23 #509

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Raising funds while there is still strength in your share price....what a novel idea...LOL :cry:

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June approaching- Funding solution required 28 May 2013 21:14 #510

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Fas I cant make sense of why Mesoblast is the only public company that seems to be able to raise money at will. In my opinion their tech and pipeline do not warrant a 10x market cap premium over us. Also many other good SC companies undervalued.
I think the sector was waiting for a decent partnership deal with both ATHX and Cytori but neither have materialized.
Do you think there is a chance that an outside company like Corning, Microsoft Google ect.. a smaller pharma or any outlier company could come in and partner? Personally I think this would give the sector some much needed attention.
On another note I think Pfizer has progressed the Atherys trials at a snails pace...
These are questions I have been asking myself for some time.

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June approaching- Funding solution required 29 May 2013 05:18 #511

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Joey- my best guess-
MesoBlast has an established business model, which the market thinks is viable and at the same time is being covered by established banking fortresses like Nomura, Merryll Linch and Deutsche bank among others.
Those analysts have no problem looking into the future and considering all platform apps unlike the ones covering Cytori. That is appropriate I think- since with TEVA as partner and the money pile- assuming the therapies are effective- they will reach market.

That is exactly the problem I have with them- I am not convinced the tech is effective and saves the health care system money. Time will only tell.

With CYTX is still requires partners and money to convince the market they have a viable business model. Obviously everything is focused on cardiac and BARDA and no one sees the rest. With ATHX the waiting is for the bowel results and whether they can come up with a partner for cardiac. Personally I have a good feeling there. ASTM is a one trick pony now and will likely fail. I think Neostem will too.

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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:

June approaching- Funding solution required 29 May 2013 09:26 #512

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I did not think of that.... yes that makes some sense to me now. Thanks

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