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- Neuroscientific Biopharmaceuticals (NSB) has entered the week in back-to-back trading halts as it gears up for an equity raise
- The healthcare stock will remain paused from trade until the end of the week, unless it’s able to provide details of the raise earlier
- Until that happens, shareholders won’t know just how much NSB intends to raise, or even what the cash injection will go towards
- The cap raise comes after the business went cashflow-negative by just $9000 in its latest quarterly report
- Coupled with over $3.3 million in cash reserves, NSB has enough capital to support operations for 367 more quarters
- Neuroscientific Biopharmaceuticals shares last traded for 30 cents in a $23.6 million market cap on November 6
Neuroscientific Biopharmaceuticals (NSB) has entered the week in back-to-back trading halts as it gears up for an equity raise.
The healthcare stock will remain paused from trade until the end of the week, unless it’s able to provide details of the raise earlier.
Until that happens, shareholders won’t know just how much NSB intends to raise, or even what the cash injection will go towards.
Today’s trading halt announcement comes just over a week after the company released its September quarter report.
Pleasingly, NSB went cashflow-negative by just $9000 — while it’s yet to receive customer receipts, $375,000 in government grants and tax incentives offset the majority of operational cash outflows.
The business spent $116,000 on research and development in FY21’s opening quarter, while a combined $256,000 was set aside to cover staff, admin and corporate costs.
NSB entered the December quarter with just over $3.3 million in the bank — up marginally from the $3.29 million in cash reserves tabled at the end of June.
In fact, based on its minimal cash burn and its current cash position, the healthcare stock has enough capital to fund operations for 367 quarters.
Looking ahead, the steady cash reserves should support NSB as it works on treatments for neurological disorders and eye diseases.
Currently, the business is developing a suite of peptide-based pharmaceutical products while it partners with major healthcare brands like the Lions Eye Institute and Menzies.
In the short term, investors should find out more about NSB’s capital raise before market open on Friday, November 13.
Neuroscientific Biopharmaceuticals shares last traded for 30 cents in a $23.6 million market cap on November 6.
