Fibrocell Science, Inc. (OTC:FCSC) is a biotechnology company which hasn’t been doing well of late. The Q3 financials were published recently, and things still look grim for FCSC.
Yesterday, FCSC closed down 3.16% at $0.46 with a volume of approximately 622 thousand shares.
While the company has expressed excitement over its LAVIV treatment, it’s financial results are still dismal, and there is no clarity whether this will change any time soon.[BANNER]
The 10-Q filed on Nov. 14 showed that FCSC has secured a significant amount of funds. The company reported $14.8 million in cash and cash equivalents. However, the development wasn’t particularly good for shareholders.
The cash was secured through the issuance of stock, and although this is not always something bad in this case the number of common stock shares doubled. Unless the company finds a way to finance its operations without such crushing dilution, it may find itself short of shareholders.
The idea of financing coming from operations is not an option for FCSC at this moment. The report shows FCSC actually generated less revenue than in the previous quarter, and the operating loss was $5.7 million.
The situation with the outstanding warrants is better than it was the previous quarter, but it’s still bad enough to further hinder any chance of a significant stock price increase.
None of this means FCSC doesn’t have a chance to turn things around, but it would be difficult and would take a lot of time.
