Ra1nyDayz
$CNXU yesterday I received a random “information packet” in the mail from none other than the carnival clowns themselves, the Najarian Brothers. I must admit, the company sounds interesting, but there's no 10-K, and a biotech micro cap under ten bucks is dangerous. The 10-Q shows about $2.0M in cash on July 31. Operating cash burn was about $10.1M over the prior nine months, roughly $1.1M a month. That means only a couple of months of runway as of that date. The company itself states there is "substantial doubt" about its ability to keep operating for the next year. Sept 4, it raised about $1.75M, letting holders exercise warrants at $2.30. That helps, but it's small against the burn rate. An overhang of about 6.7M warrants are still outstanding, against about 28.2M shares, ~24% potential dilution. That supply tends to come in whenever the price rises. it has been paying consultants, including a "marketing consultant," in shares and has also issued insider warrants at $0.001 a share.
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