Another day and more going on in the life of GMV. Never a dull moment!
The $5m cap raise is a lot more than most, including the company were expecting. It’s pleasing to see the stock go to a small handful of local and institutional investors. No high net worth retail flippers.
And that was evident in the trading yesterday. Very low volumes of about 10m or 10% of the raise tells me these new institutions held very little if any stock before the cap raise. The price help up well above the 5c and was very well bid around this range.
If these cap raise participants held enough stock pre the raise they would have punished the stock further and insisted it trade down to 5c. But no, IMO these new investors are holding for the medium term and are not looking to make a few cents on this stock. This stock does not have the volume for institutional investors to trade out of for a small 10% gain. Far too risky.
$5m is in the bank now equates to about 15% of the market cap and provides the company with enormous flexibility. The balance sheet is looking extremely solid coming into the Nasdaq listing. $5m will go a long way in growing the IDTF business, either organically or via acquisition. In the unlikely event we do receive a purchase order, $5m will will produce a truck of product. And best of all this capital can be recycled very quickly.
I agree with those who believe the company is now in its best shape in terms of balance and business momentum. That strategy seems very clear now and looks to be paying off. The US should have always been the focus!
Those waiting for a significant revenue announcement may wish to go back to night school and brush up on their math and English. The company has already announced this. Those that need reminding:
1000 prizmas sold to Meditel
6 university hospitals now on the IDTF platform
11 more university hospitals at very stages of being on boarded to the IDTF platform
July patient numbers and turn revenue doubling during the month
The company guiding to a 3 fold increase in patient numbers and in turn revenue by years end.
Those wanting more information can read my previous post. With an interpreter if needed!
These are pretty good announcements in my book. Keeping in mind the business has come from nothing and most of this revenue will take up 90 days to hit the bank account.
A few other bits and pieces
Interesting the GMV patch is used as an example in the below study on home monitoring technologies.
https://www.nature.com/articles/s41591-020-0994-1IRTC reported after market Thursday. They reported a 20% decline in revenue for the June quarter. Similar to BEAT and GMV and for the same reasons. However, IRTC share price has gone nuts during the week, rising from $115 to close at $202. The stock is up 4 fold in 4 months! The company now has a market cap of over $5b USD with revenues of around $220m USD. Thus trading on a sales multiple of 23 times. And interesting the company is still loss making at around $40m USD a year. They have $115m USD in cash. Most brokers that cover the stock have upgraded it to over $200 a share.
Let’s see what next week brings...
