rgs had few options. A lifeline loan secured against future R&D tax refund, or hammer SP & SHers with another cap raise, a large cash injection from a "Japan deal", or run out of cash. Tapping mkt again w/o finalised Japan deal would tank SP. And a "partnering" deal with little cash requiring rgs to tap mkt soon would not be good. rgs is going to need $$$$ for its trials, partnering or not.
With the loan rgs cash runs out late 2016 at current burn....& $2 mil will barely cover FY16 CEO & CSO pay & performance bonuses.......
2 (3?) "Japan deal" delays were not good to SP (- 70% @ 7c). If no Japan deal by end of first half CY16 & rgs operating on the smell of an oily rag it will take more than hints to support current SP.
Hoping Japan deal breaks out for rgs long suffering SHers. If a good deal comes through it should be quite good all round IMHO.
RGS Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
