Attis Industries Inc (NASDAQ: ATIS) is having a great start to the trading session this morning, and for good reason. The company announced that it has entered into a partnership, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The partnership;
- what we’re seeing from ATIS as a result; and
- what we’ll be watching for with regard to the stock ahead.
ATIS Gains On Partnership
As mentioned above, Attis Industries is having an incredibly strong start to the trading session this morning after the company announced that it has entered into a partnership. In a press release issued early this morning, the company said that it has entere dinto an agreement with NorthCrest Medical Center. Under the terms of the agreement, ATIS will assist NorthCrest in the expansion and operation of their existing state-of-the-art hospital laboratory to provide outreach services within the community.
In the release, the company said that it expects that the laboratory will be able to complete around 1,000 specimen tests per month and the comapny expects to generate revenue and cash flow immediately. However, the company did say that it cannot predict revenues associated with reimbursements. Nonetheless, it is expecting that annual revenue will come in between $4 to $7 million.
In a statement, Jeff Cosman, CEO at ATIS, had the following to offer:
The agreement with NorthCrest Medical Center is another in our line of partnerships with rural hospitals as we continue to expand our healthcare business… We pride ourselves on our ability to improve healthcare for communities, particularly rural communities, while partnering with outstanding hospitals like NorthCrest. We will continue to deliver improved patient care to underserved communities across the nation.
This latest partnership is one of the final steps we have been working on to complete our core infrastructure in Attis Healthcare. This contract is a significant milestone as it will immediately generate revenue and cash flow for the Attis Healthcare Division. Attis Healthcare remains optimistic it will receive our Medicare license for our Oklahoma lab in October; the build out which was completed at the end of August with the announcement of Attis receiving our CLIA license. Attaining the Medicare license is the final step of securing our core assets we forecasted internally as our baseline; the results of which will drive revenue and cashflows for the fourth quarter as they ramp up. Additionally, this relationship with NorthCrest gives our business model of partnering with rural hospitals credibility to the market as we increase the number of partnerships in 2019. Attis Healthcare is forecasting 10-12 new partnerships in 2019. With these assets and relationships in place expect significant growth in revenue and cash flow… The management team is extremely focused on delivering significant success for the Company, as outlined during our shareholder call. While the focus of the third quarter was achieving significant restructuring results of the balance sheet in the public company, the fourth quarter will be about building the Company’s revenue once again.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Attis Industries, the news proved to be overwhelmingly positive. After all, this new partnership will immediately drive revenue for the company. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:25), ATIS is trading at $0.42 per share after a gain of $0.10 per share or 31.46% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ATIS. In particular, we’re interested in following the story surrounding this new partnership and the revenue it generates. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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