I thought it was the year of the sheep, but apparently not.
One of the toughest aspects of being the CEO or Chairman of any early stage company, is keeping your shareholders engaged with the idea that the deal is just around the corner. In the case of Dr. Stewart Washer, apparently there is strategic value in disclosing to the markets in advance that a deal is going to happen even when there is no deal yet on the table and no basis for a deal. I mean, there is nothing like being a publicly-traded company and one minute talking about the infallibility and game-changing need for your technology, it’s $Bn blue-sky potential – and then the next minute telling the punters that you are shooting for a pre-clinical trade sale in the near future. Or that you have “cancelled” your low-hanging fruit clinical trial plans in graft-versus-host-disease (GvHD).
Forgive me, am I missing something?
(Though I do want to say congratulations on cancelling that particular study, it would have been a tremendous waste of shareholder capital, so good one there… of course that means that Cynata is back to being an “application-less” stem cell company)
The thing I like best about this article is the detailed characterisation of the type of investor they are out on the road looking for, while at the same time informing us all that they will not be actually raising money to finance clinical trials. All this against the backdrop of the company allegedly having sufficient runway for two years of development activities, providing of course that they do no clinical trails. What’s going on? Are they raising money? Not raising money? I’m confused.
So that’s it folks, I don’t need to comment on Cynata anymore because the future of the company has been ordained. Clearly the lesson learned here is that harvesting undifferentiated “Mum and Dad” investors and opinionated but gullible punters is a hell of a lot easier than harvesting a bunch of undifferentiated cells.