Control Bionics Limited CBL IPO Analysis

From the prospectus , Media Articles and Company presentations

https://hotcopper.com.au/threads/ann-prospectus.5798936/




Offer Price $0.60
Number of Shares to be held by Existing Shareholders after the Offer 58.3 million
Escrow Shares 58.3 million ( Means EVERY SINGLE EXISTING SHARES ARE IN ESCROW)
SOI 83.3 million
Mcap 1 $50.0 million
Cash $15.6 million
EV $34.4 million

Control Bionics designs, manufactures and sells wireless wearable electromyography (EMG) based augmentative and alternative communication (AAC) technology. This allows users to operate and communicate via a computer using intentional thought and the body’s own neuroelectric signals detected at skeletal muscle sites – the physical movement of a muscle is not necessary for the technology to detect and interface. Target market is users suffering from ALS/MND, Cerebral Palsy, Multiple Sclerosis, and spinal cord injuries.

Control Bionics’ aim is to become the world’s leading provider of innovative augmentative communications and control devices

In any medical technology / Medical device company's life cycle the most important aspect is regulatory approvals

Regulatory Approvals in Place and Government Support Agencies

Australia :

Approved by the Australian TGA as Durable Medical Equipment (DME) .Registered as an approved NDIS supplier in Australia Eligible to be funded under a number of State Government insurance schemes including the Transport Accident Commission and iCare. Recently secured its first sales to the Australian Government Department of Veterans Affairs

USA:

Listed and registered with United States FDA as DME .Approved by Medicare nationally & Medicaid in 37 of 50 State .Funded by the United States Veterans’ Administra .Contract with New York Education Department (NYED) and has been added to the list of approved providers to US Schools.

Patent Protected Product:

NeuroNode (NN) is the world’s first wearable EMG assistive technology device. It gives those with ALS/MND, spinal cord injury, or any other condition causing paralysis or loss of speech a connection to the world. NN is wireless and completely non-invasive and simply adheres to the skin above a chosen muscle site. The user can connect to any computer, mobile phone, or tablet to generate speech, send text messages and email, manage environmental controls, surfing the web and controlling music and video content.o NeuroNode Trilogy, launched in 2019, combines the power of the NeuroNode with a three axis Spatial Sensor capability and eye control technology to create a robust AAC system available for the disability sector.

+$1.2b Market Opportunity: Over 56,000 people are diagnosed each year across USA, Japan and Australia for target market patients. Average sale price of unit $21,928 (funded by insures and govts incl. NDIS)

Strong Revenue Growth: FY20 Rev $3.1 up 297% yoy

Unique Core Technology: detects the electrical signals generated at the muscle site when it receives a command from the brain. NeuroNode uses smart algorithms to analyse, synthesize and convert EMG signals into code which can interface with and control a broad range of electrical devices.

Product Development :

In process of establishing a Control Bionics Advanced Bionics Accelerator and a medical advisory board to guide significant future non-invasive opportunities identified from EMG capabilities.Exploring potential applications of its core technology in AR/VR, gaming applications, muscle retraining rehabilitation products, and other augmented human applications

Conclusion :

Control Bionics is one of the best IPO I've seen in my last 5 years of ASX IPO experience. 35 mil EV. Revenue Making ..Cutting edge Medical technology/ Medical device company. All the REGULATORY APPROVALS in place. All the existing shares are in escrow. It can truly become the world’s leading provider of innovative augmentative communications and control devices.

Only competitor which got all the regulatory approvals is Tobii (Swedish high-technology company that develops and sells products for eye control and eye tracking) and Tobii is trading is 5.5 BILLION Mcap on NASDAQ.)

I managed to get a little allocation in IPO.

I think It should list between 80c to a dollar.

In next 24 to 36 months It should trade at 500 mil Mcap IMHO.

GLTAH

ALL IMHO

DYOR

Peace

Bhavdip