Reason #2: Potential For Financial Restructuring
Having $20 million in the bank sounds like a lot. After all, I could live for the rest of my life on $20 million. However, for a biotechnology company looking to develop treatments for serious neurological conditions, $20 million isn’t a lot of money.
Unfortunately, over the years, NTRP has accumulated quite a bit of debt. The payments on this debt, coupled with the overwhelmingly high cost associated with developing new treatments is crippling the company and dragging investor value through the dirt.
However, there may be light at the end of the tunnel here. Even if an acquisition didn’t take place, some form of financial restructuring would likely be the result of the strategic review.
Should the company make the right moves through a financial restructuring, it could put itself in a position where it has the cash needed to get through key catalysts ahead, which would be very exciting for investors.
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