Let me have a first crack at replying to your & leeking genuine concerns, and why I’m not only still invested, but topped up last week.
CardieX needs to recapitalise it’s balance sheet if it wants to become serious about taking on the USD $4 Trillion health market. No point kicking the can down the road with AUD$4.5m raises. These were about keeping the lights on until we had a product to legitimately take on the US Market. With FDA clearance for Pulse, we now have that. There was absolutely no point hitting the go button for recapitalising the business until we had this clearance. Yes, all the prep could be done, and was, but until clearance it was a holding pattern.
Regards OTC vs RX for Pulse, there was a change in the language between 2021 presentations and 2022 … yes, the business originally envisaged launch as OTC, but IMHO realised that RX was the likely outcome sometime ago. I actually favour this approach, build the science, credibility, avoids massive risk for mass consumer production runs. Learn to walk before you run !
On trials, the last big win was with Xcel devices (centralised), but the comment was made that on Pulse clearing there was an opportunity to expand this trial further with a decentralised component.
On US listing, while I’m not expert, there are over 140 companies on the ASX that offer ADRs on various US exchanges ( OTC, NASDAQ, NYE ) including household names. Nothing to worry about there, and that is how the USD $4 min listing price is achieved. As has been mentioned numerous times, the issue is the ratio, and resultant dilution … which is looking worse now than a few weeks ago ! TBH, I just want working capital to be sorted out such that it isn’t a roadblock to success for at least 2 years. So looking at AUD$30M raise. My reading of criteria is that there are options for CDX listing on the NASDAQ Capital market or the NASDAQ Global Market, but not the top tier NASDAQ Global Select Market. All 3 tiers require the same level of compliance and rigour ( unlike something like the OTC pink tier ).
Other random thoughts,
- IMO Craig pretty much gave up on the ASX with the fracas around valuing convertible notes in InHealth and BLUMIO a few years ago … be that good or bad.
- Truly IMO, Craig turned 60 a couple of weeks ago. I reckon he is on a mission to complete the task of disrupting this category with speed and urgency … he has a few other things to tick off on his bucket list.This suits my timeline as well.
Purely hypothetical, but I notice that Craig and the senior team have all tidied up their LinkedIn profiles over the last couple of days, ensuring all posts are on message. Possibly a team edict … I sense we are getting very close to finding out all the details of the US capital raise anyhow … no more guessing.
All IMO.
Please DYOR
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