The market doesn’t seem too confident in managements ability to do non punitive financings. I can see why. The new loan seems to have very onerous terms as outlined on pg 8 of the latest prospectus. Advance and exit fees, monthly interest payments, encumberance of IP and future financings, and maintaining a $5MM cash balance would seem to limit managements ability to further fund operations without being quite dilutive. I would rather see just a straight dilutive financing. I really don’t like the IP encumberance this go around as to me it opens the door for a huge loss to current shareholders even if the CKD results are good but the BoM topline is not great.  

I find it hard to imagine any potential partner entering into any type of development money deal without having this loan first paid out. I’m not sure how a prospective partner could responsibly advance development funds knowing that the investment could be lost to a collateral claim. IMO ineffective business management is becoming the biggest risk to this investment as it has been quite some time since investors could feel confident about understanding their position as it relates to the company being a going concern, at least until BETONMACE readout.  This uncertainty has never allowed the stock to rise with what seems to be somewhat increased positivity surrounding the science.  That being said perhaps we can get lucky and they can pull off a financing that can circumvent the need for this loan.