Investors Flock to Pressure BioSciences as Its Patented PCT Platform Goes Mainstream
REDONDO BEACH, CA / ACCESSWIRE / January 15, 2016 / Pressure BioSciences Inc. (OTCQB: PBIO) just announced that it exceeded its $5 million fundraising goal and approved the opening of an additional $1.25 million over-subscription amount in its PIPE offering. With growing revenue, a new multi-national partner (see below), and a potential up-listing in the near future, accredited investors have been flocking into the company's stock through the private offering, and retail investors have been flocking into the company's stock in the open market. Both of these may be bullish signs for individual investors for the coming year.
The company's Pressure Cycling Technology (PCT) helps researchers in the life sciences industry reproducibly extract and subsequently process more proteins from complex sample types compared to other current technologies. This allows scientists using PCT to ultimately gain superior biological insights and discoveries. By cycling between ambient and ultrahigh levels of pressure at controlled temperatures, the technology gently squeezes out proteins, lipids, or other cellular components without damaging the cell's contents prior to studying them. This cannot be said of competitive methods to PCT.
And here is some additional breakthrough news. After several years in development, the company announced an exclusive co-marketing agreement with SCIEX - Danaher Corporation's (NYSE: DHR) $1.1 billion acquisition made back in 2009 to enter the important and growing mass spectrometry industry. The agreement will promote PCT sample preparation systems with SCIEX mass spec systems as a way to better prepare samples ahead of analyzing them in order to maximize the identification of key proteins, which can potentially lead to the discovery of new and vastly important biomarkers of disease. The agreement could add significantly to the company's revenue model in 2016 and beyond.
In November, the company reported a 55.8% increase in third quarter revenue and a 13.4% decrease in its operating loss quarter over quarter, making it the most successful financial quarter in the company's history. The SCIEX agreement could provide a significant boost to these financial results by pairing its technology with some of the most popular mass spec equipment in the market rather than relying on organic growth and direct sales.
The move could spur other mass spec companies, such as Thermo Fisher Scientific Inc. (NYSE: TMO) or Waters Corporation (NYSE: WAT), to try and strike similar deals to expand their product offerings with PCT-based technologies that improve sample preparation.
Management also made great strides in cleaning up the company's fiscal situation by eliminating all (nearly $3 million worth) of its variable rate convertible notes. With the notes being a significant overhang on the company's stock for much of the past 2-3 years, the elimination of the toxic debt should make it easier for the company to access the capital that it needs, while opening the door for the share price to move higher due to the firm's improved financial condition.
The company's plan to up-list to the NASDAQ early this year could also dramatically expand the visibility of its stock. Since many institutional investors aren't permitted to invest in over-the-counter equities, a NASDAQ up-listing could open the door to significantly more liquidity and a wider investor base. These dynamics could help the stock achieve a fairer valuation more quickly and ultimately improve long-term shareholder value.
Investors in lab instrumentation stocks, such as Harvard Bioscience Inc. (NASDAQ: HBIO) or HTG Molecular Diagnostics Inc. (NASDAQ: HTGM), may want to take a closer look at Pressure BioSciences ahead of its 2016 financial results and potential up-listing to the NASDAQ. The company has made many significant moves over the past year to improve both its financial and operational businesses and looks to be on a path of solid growth.
For more information, visit the company's website at www.pressurebiosciences.com.
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SOURCE: Emerging Growth LLC