Since I first heard about Genera about eight weeks ago I have dedicated at least 100 hours to researching every aspect of this little company which is currently doing an IPO.
It seemed to me that this might be an opportunity to make up some ground on the opportunities that I have missed in the past in biotech IPOs - such as the CST IPO in 2001 that floated at 25 cents and quickly went on to become a 10-bagger. With a float market cap of $25 million, there are many parallels between the CST and GBI IPO stories as both are attacking large markets with near-term revenues.
Anyway, the key things that I have learned are
1. The relationship between GBI and Sonic Healthcare looks to be rock solid. The relationship between the two companies goes to the highest levels within Sonic (at least to the CFO) and there is a genuine desire to give GBI a leg-up in getting its product to market in the USA and beyond
2. There is quite low risk regarding Genera's ability to earn significant revenue out of the USA WITHIN 12 MONTHS. This is highly unusual for a $25-million market cap biotech.
3. I have tracked down one of the two founding executives from Digene - the HPV company that sold for US$1.6billion a year or so ago, and spent a significant amount of time discussing GBI's prospects in the USA. I came away well satisfied that the outlook is bright (although there will always be some risk)and that Genera's 3-in-1 test for Gonorrhoea, Chlamydia and HPV promises to set the company apart from all others who are targetting the HPV testing space.
4. I have contacted Domain Capital on a number of occasions and have established that there is strong institutional and broker support for the IPO.
WHICH GETS ME TO THE REAL POINT - based on the announcement that Genera put out on Friday it looks as though this float is LOCKED AND LOADED. READY TO COME OUT OF THE STARTING BLOCKS VERY VERY STRONG.
The only piece of the puzzle that remains to be resolved is to get shareholder spread satisfied - you need 400 shareholders to come to market - and based on discussions with Domain - it sounds like the $5 million raising is not a problem. . . . but they are about 150 shareholders short of the target by number.
THEREFORE - IN ORDER TO SEE THIS FLOAT HIT THE BOARDS ASAP . . . . WHY NOT DO YOURSELF A FVOUR (AS IT LOOKS TO BE A GOOD THING) AND ME A FAVOUR TOO (AS I HAVE WRITTEN OUT A BIG CHEQUE INTO THIS IPO) . . . . and fill out the form in the back of the prospectus. . . and post in your cheque for $2k, $5k, $10k. . . whatever. . . . . TODAY!
LET'S GET GBI TRADING!!!!!!!!!!!
http://www.generabiosystems.com/
GBI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
