TRCA going BK??
by: str1ker_nl
Long-Term Sentiment: Strong Sell 06/20/06 05:55 pm
Msg: 4438 of 4442
Cash, cash equivalents and short-term investments as of March 31, 2006 were $79.2 million, compared with $58.6 million as of December 31, 2005.
Tercica today affirmed previously issued guidance for 2006 cash burn to be
between $63 million and $69 million, including working capital requirements
and excluding the impact of revenue and related product costs.
What revenue???
So 80 million in cash, burnrate 63+ million.
That will last till at the very latest Q2 2007.
Soo...the BIG question is: who is gonna finance an emission???
Tercica Secures $75 Million Committed Equity Financing Facility
BRISBANE, Calif., Oct 14, 2005 /PRNewswire-FirstCall via COMTEX/ -- Tercica, Inc. (Nasdaq: TRCA) today announced that it has entered into a Committed Equity Financing Facility (CEFF) with Kingsbridge Capital Limited in which Kingsbridge has committed to provide up to $75 million in financing during the next 3 years through the purchase of newly issued shares of Tercica common stock. Under the terms of the agreement, Tercica will ultimately determine the exact timing and amount of any CEFF financings, subject to certain conditions.
The minimum acceptable purchase price prior to the application of the appropriate discount for any shares to be issued to Kingsbridge during the 8-day pricing period is determined by the higher of $3.00 or 90% of Tercica's closing share price the day before the commencement of each draw down. Any shares of common stock purchased by Kingsbridge pursuant to the CEFF will be purchased at discounts ranging from 6% to 10% depending on the average market price of Tercica's common stock during the pricing period.
Whoops...a minimum PPS of $3...looks like CEFF is getting off easy.
TRCA holders better pray that the revenue will be a little better in Q2 and that INSM won't exceed expectations.
Else the end is near, very near. The institutions rather write off the investment than pump in more money in this sinking ship.
Ik neem aan dat de grote zakking van TRCA komt omdat CEFF van de financiering af wilt. Dit zou een hoop verklaren en is het dus waarschijnlijk dat TRCA in ieder geval onder de 3 dollar gaat duiken. En dan heeft TRCA een heel groot probleem want hoe komen ze dan aan geld? Dit alles werkt in het voordeel van INSM. En als TRCA nu een emissie zou moeten doen dan zal dat op een heel wat lagere koers zijn dan 3 dollar. En ik denk dat de meeste financierders zich niet meer zullen branden aan TRCA. Kortom volgend jaar zou het wel eens exit kunnen zijn voor TRCA!!!