I tend to agree galileeMy main concern with this stock was cash...

I tend to agree galilee

My main concern with this stock was cash levels and leverage, the capital raise was 100% necessary and looks to be an appropriate level of cash to fund and grow the company over the next 2 - 3 years - whilst also releasing a substantial amount of debt. Company for mine continues to de-risk.

The company is spending around US$4mio a quarter.... likely to pick up in the next few months. Revenue growth last quarter was 100% - so if the company can achieve that run rate next 2 quarters it will be generating USD5.5mio a quarter. This effectively should be achieved with the Hygea contract - even assuming no further sales contracts coming on. If you add in another Hygea size contract - the company will be getting close to US$40mio revenue per annum (US10mio per quarter). However, cash burn has been heavy, will likely pick up in the next two-three quarters as well as the company ramps up production and marketing - so hard to estimate, and hence the need to capital raise

If you use IRYTHM as a comp - they did US130mio revenue last year (as Low Key mentioned) - market cap of US2bio. So US40mio vs US130mio is about 30% of revenue - 30% of 2bio market cap is 615mio US or AU850mio.

This is just the way im viewing it, and despite the dilution, im happy the leverage is coming out of the company and there is sufficient cash to fund the next 2-3 years of growth.

Im looking for another HYGEA size announcement, increasing revenue growth quarter on quarter in the next 4C and the CFDA approval to hopefully turn the Silverlake MOU to a contract as well.

These are the key requirements for a re-rate of the stock, but as a risk reward trade i like my odds.

DYOR