Flatlander schreef op 15 juli 2019 22:55:
I never heard back from anyone as to what Biocartis was going to do with the $125 million Euro proceeds from the early May convertible offering. The press release was not very specific and pretty much covered all of their operations, so I'll launch my hypothesis. My guess is that Biocartis has ponied up for their half of a cartridge manufacturing plant in SE China. With the US trade sanctions against China, they are looking for ways to keep the growth engine humming. This dropped into their lap as a shovel ready project at a very opportune time. They can make a deal with an emerging EU company and respond to a growing need for cancer diagnostic products. China has fast increasing lung and breast cancer rates. A cost effective IVD product to assist in CDx prescriptions appears much more beneficial than building any more ghost cities! I expect a big announcement at a point in time when China can use it to their benefit to show that business is proceeding just fine despite the US tariffs and to demonstrate that the US is in effect locking their companies out of the fastest growing market in the world.
This is just a hunch, but it explains why BCART needed to raise so much in funding in May on top of the $E 55M raised in January.
Any Thoughts?
FL