Zomedica Corp (NYSEAMERICAN: ZOM) is having an incredibly strong start to the trading session this morning, and for good reason. The CEO of the company, Robert Cohen, issued a letter to shareholders ahead of the launch of the TRUFORMA diagnostics platform. Here’s what’s going on:
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- Zomedica CEO Issues Letter to Shareholders
- The TRUFORMA Launch Could Change the Game
- What Analysts Think About ZOM Stock
- Risks to Consider Before Buying ZOM Stock
- Final Thoughts
Zomedica CEO Issues Letter to Shareholders
In the a press release, Zomedica’s CEO, Robert Cohin, issued a letter to shareholders surrounding several key events taking place ahead of the launch of the TRUFORMA diagnostics platform.
First and foremost, the letter started by explaining that as a result of the strong performance the stock has seen as of late, investors have been exercising their outstanding warrants, driving more than $40 million of additional cash into the company.
Cohen went on to explain that this additional cash brings the company’s cash and cash equivalents to more than $90 on the balance sheet. As a result, the company has enough money to fund its operations through the 2023 calendar year, at which point, ZOM expects to be cash flow positive.
Also, earlier this month, the NYSE American notified the company that it has regained compliance with continued listing standards.
Cohen explained that he is looking forward to the launch of TRUFORMA, which is expected to take place on March 30, 2020. Following the launch, two more assays are expected to be added to the technology in 2021.
Finally, Cohen said that the TRUFORMA diagnostics platform is protected by around 70 issued and pending patents held by ZOM.
The TRUFORMA Launch Could Change the Game
Recently, Zomedica stock has been on a tear for the top, and for good reason. For some time now, investors have been focused on the launch of the TRUFORMA diagnostics platform.
Keep in mind, consumers spend tens of billions of dollars on their pets’ health each year. With TRUFORMA, Zomedica will be tapping into that market in a big way.
The TRUFORMA platform allows for point of care diagnostics testing, both for ailments that there were not tests for in the past as well as for ailments that previously had to be sent off to a laboratory, taking days to generate results.
With the strong efficacy and rapid nature of TRUFORMA diagnostics tests, ZOM may be sitting on the product that’s destined to make it a cornerstone in this multi-billion dollar industry, setting the stage for more tremendous growth ahead.
What Analysts Think About ZOM Stock
According to TipRanks, there’s only one analyst following Zomedica at the moment, but what the stock lacks in quantity of analysts covering, it makes up for with quality of rating.
The one analyst covering ZOM stock rates it a Buy. While the price target on the stock is only $0.30 per share, the target was set prior to the announcement of the coming launch of TRUFORMA. As such, upon re-review, I’m expecting that the price target will be increased.
Risks to Consider Before Buying ZOM Stock
If you’re going to invest at all, whether it be in stocks or any other investment vehicle, you’re going to have to be willing to accept risk. ZOM stock is no exception to that rule. Before investing, you should consider the following:
- TRUFORMA Hasn’t Launched Yet. First and foremost, TRUFORMA is exciting, but it hasn’t launched yet. As such, we don’t know how the market is going to take the product. While we are all hoping for the best, if demand isn’t quite what the market is expecting, significant losses could be the result.
- Penny Stock Risks. Zomedica is a penny stock. This means that it comes with additional risk, including increased volatility and high levels of speculation.
While all investments come with risk, and Zomedica is no exception to that rule, the stock is an exciting opportunity and one worth considering diving into. The fact of the matter is that in just a couple of months, ZOM will launch TRUFORMA, a platform that has the potential to become a cornerstone in pet diagnostics testing.
With the launch around the corner and enough money in the bank to make it through 2022, the company has plenty of runway to reach profitability and a great product launching soon to help make that happen. All in all, ZOM is a stock worth watching.