Go the mighty Magpies. I've been a supporter since moving to...

Go the mighty Magpies. I've been a supporter since moving to Australia in 1980. A 3rd championship celebrated in 43 years was to be rejoiced, and a great game for all who watched.

On CDX, most on here have said for some time we need capital sorted, and the pulse device to prove market traction/acceptance, before CDX had a clear pathway to success. Until these 2 critical items were delivered/validated, CardieX remained high risk. We are all feeling that risk "loud & clear' at the moment.

On the corporate presentation there was much that was new, that demonstrated product development, app development, GTM activities, FDA cardiovascular biomarker development etc. etc. has been moving forward in earnest. In respect to the above, Pulse market traction may have been addressed to investors with this statement in the presentation

Immediate near term opportunitiesshow strong initial market traction.
Quantifiable success metrics(devices deployed (sale/lease),subscription revenues).

On Pulse market success, I feel very confident.

But the concern, of course, is around working capital and market valuation.
Can CDX raise the funds to deliver Pulse , and later the Band, to market.

I see CardieX as a pre-revenue business when applying a valuation.
The future, and why Craig & Niall embraced the opportunity in 2018, was to deliver the SphygmoCor technology to the consumer, thereby disrupting the cardiovascular biomarker/BP market and creating value for shareholders.

So as I see it, this business, and the valuation potential investors will attribute to it, is more about the Connect ( pre-revenue ) division than the existing Atcor division.

This is a sprint, not a marathon. CardieX will not be the only company to have identified this opportunity. The tech itself has only "some" IP protection. Speed is of the essence, to be first to market and establish a leading position. As such, Craig & Niall have gone hard on capital, recruiting the best people, and investing in the technology/process/branding etc to be first, and to be best in class with CBP.

But, this comes with inherent risk. I recall Craig saying a one presentation - " don't be afraid of capital ".
Well the wisdom of that statementis about to be tested.

IMO, NASDAQ was a mistake, a costly $4M mistake, and 18 months loss of focus for management.
NASDAQ should never have been an option for a " pre -revenue" business.

So, if the working capital position can be resolved, I for one am actually quite relieved we have dumped the NASDAQ listing.

I'm hoping that we are talking to Venture Capital funds and the like in the USA ( see note on Josh Stevens below )
The likes of MST Access were giving CDX a valuation of $1.45 only 6 months ago - would they be recommending entry at this level and backing their valuation.

I did a back of the envelope "Venture Capital' valuation on the CONNECT business, on pre-revenue, using the method made famous by Harvard Business School Professor Bill Sahlman.



Or, perhaps using the " Cost to Duplicate method ".
I see Connect as " Scaling / Adoption " with FDA clearance & Xcel device in market.



A number around $50M MC valuation today, vs current MC of $20M.

Looking at this, and I'm sure this would be how the numbers are being presented, that there is every chance Craig, Niall & Josh will find the backers.

I say Josh, because have a look at what this guy has been doing on LInkedIn ... he may well be the curve ball in the equation.
His title is now "President & CGO" of Connect - Chief Growth Officer.
"As a board member, a healthcare and health IT investor, and a 40 under 40 honoree, I leverage my extensive network, knowledge, and insights to identify, partner with, and support high-growth companies that are transforming the healthcare landscape. I thrive on collaborating with diverse and talented teams, fostering a culture of innovation, excellence, and impact."

Let's see hat happens.
It may be Tuesday, or whenever they have capital sorted.
Good luck to all.

DYOR.
All IMO Only