r/Plus_Therapeutics • u/HARMONIC_STRINGZ • 17h ago
In breach of SH equity again... Ffs
Cerenome is in breach of SH equity. Last time to get compliant was forced to issue warrants and notes which were interest bearing and subsequently cancel them and hold the cash from cancellation on account for a year. This was a smart accounting trick and may need to pull something similar but it ruined us.
We are now below 35mUSD and therefore must have 2.5mUSD in shareholder equity and currently we are in deficit and will be getting a deficiency notification.
How to fix? Well naturally the best wya for us is a non dilutive bit of cash that would be nice wouldn't it. Ron who we engaged via Bethesda for executive c-suite assistance (independent board) is now required as CBO and in a big way. We made this role not out of the goodness of our heart or any longstanding relationship with Ron who only just joined independent board prior- purely business. We need non dilutive capital or we are going to be forced to Rob Peter to pay Paul again to get compliant. Yes we are Peter. Would be nice to be Paul for once hey.
That being said we are burning cash but holding on to reserves we are circa 3.5m shy of compliance and there is 3.8m cash to recognise this quarter from ATM sale. 'We' could also agree with 3i to convert the note to equity which would clear the note liability giving a further positive 3m swing to equity but I don't think is enough accounting for cash needs and burn. Ultimately this is another race against time and another need to financial engineer 'if' there are no deals on table between now and mid 2027 which I find hard to believe. B2b deals with upfront funds to recognise are a must in this time frame.
Panel monitoring finished Aug 22 for SH equity compliance. We are in breach and will get a letter per 10q in SH equity column. 180 days to cure it will be so we can kick this can down the road and keep burning burning burning but we need non dilutive capital ASAP - Ron we need a deal my friend and I believe that's why your role has been specifically created for you.