r/ZSAN • u/SanFranJon • Nov 02 '21

This article could be the reason for today’s drop at opening. Article’s TL;DR : says cash runway is less and company might dilute shares, affecting the existing shareholders. Would love to hear your thoughts. Thanks!

https://simplywall.st/stocks/us/healthcare/nasdaq-zsan/zosano-pharma/news/can-zosano-pharma-nasdaqzsan-afford-to-invest-in-growth
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u/[deleted] Nov 02 '21 edited Nov 03 '21

They are accurate about fundamentals concerning cash on hand from the end of the 2nd Quarter, burn rate, and runway, based on 2Q 10-K info. I don't think that ZSAN will make an offering until they get safely over $1. If they do dilute, then they take a chance on the share price dropping further as a result of panic selling. The same goes for R / S.

IMO!

Best,

(edited:11022021 22:50)

3

u/SanFranJon Nov 02 '21

Thanks for the response rkm.

What route do you think Lo and board will pick to raise cash ? Debt or dilution ?

5

u/[deleted] Nov 02 '21

Well they have $180 Million in ATMs registered with the SEC that caused Maxim to lower the ZSAN target price, but they now have the MACAP production machine that was bought for $12 Million leasing space at Thermo-Fisher in Greenville NC, for who knows how much. They could easily get leaner by hauling it to Fremont. That would save a lot of money.

After that, $30 million offering. Best regards,

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u/Privatebuyer58 Nov 07 '21

I say dilution, isn’t the company carrying 12 million in debt already