Notice: Trying to get property 'slug' of non-object in /home/sgumdev/public_html/wp-content/themes/sgum_2016/single.php on line 44

written by reader BIONIK LABORATORIES, BNKL.

By lokahirr, September 5, 2017

aloha everyone,
i have owned shares if this groundbreaking company ( bionik laboritories. BNKL ) for a while now but am a little confused by recent events. the company is well managed, has a product line light years ahead of competitors, has opened markets in europe and asia. seem to be doing everything that they hoped to accomplish within the time frame they set for themselves.
so i guess that i must be missing something because there share price has been steadily declining despite the positive company direction. i am in for the long haul as i see great potential in bnkl. maybe someone out there can shed some insight about them. information from the company and from other investment outlets are few and far between.
i figure if anyone would know whats up it would be the gumshoe gang!
thanks

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

5 Comments
Inline Feedbacks
View all comments

Notice: Undefined variable: karmaOutput in /home/sgumdev/public_html/wp-content/themes/sgum_2016/functions.php on line 3288
Travis Johnson, Stock Gumshoe
Admin

That’s an absurdly tiny company — market cap only $8 million or so. Sometimes the “story” for these companies is compelling, but the financials are rarely attractive — they often have to issue tons of stock each year just to keep the lights on, and they often seem to exist solely to pad the wallet of the executives.

I have no idea what the company makes or does, but unless there’s something really compelling in the future the financials don’t make much sense — they had revenue of about half a million dollars, and cost of goods at about 70% of revenue, so gross profit is quite small at just over $100,000, and they have operating expenses of almost 9 million dollars over the past four quarters. They don’t have anywhere near enough cash to keep that going for more than a few weeks, so if those operating expenses stay anywhere near this level they’ll have to raise a huge amount of money — a company with an $8 million market cap that has to raise $8 million a year to fund their operations is not one that provides much equity to existing shareholders who will see their ownership halved.

Again, I don’t know this specific company or whether they have some product or business that will turn this financial picture around quickly, that would be the “story” that you’d have to believe to own the stock…. but the financials look like they’re in a downward spiral, and it’s hard to break out of that.

Add a Topic
5971
Add a Topic
5971
👍 15112
swgoombah
swgoombah
4 years ago

From a letter to their shareholders a few weeks back:

In parallel, the Company is exploring an uplist to a national securities exchange, such as NASDAQ, and a capital raise necessary to do so and to fund the Company. A successful uplist is expected to provide the Company with greater market coverage and a larger diversified base of prospective investors. We have made good progress as a Company in regards to engineering and product development, and believe stepping up to a senior exchange will provide us with greater opportunity and flexibility as we move toward commercialization of our technology at scale.

The Company is seeking approval at its annual meeting of stockholders for a reverse split to ensure it meets certain stock price minimums required for market inclusion on NASDAQ.

Furthermore, the Company is seeking approval at its annual meeting of stockholders for an increase in the total number of authorized shares of our Common Stock. The Company and its leadership believe such an increase may be necessary for future issuances of the Company’s securities as it seeks to raise capital for operations and the NASDAQ uplist, among other things.

Add a Topic
5971
Add a Topic
1340
Add a Topic
5971
👍 410
swgoombah
swgoombah
4 years ago
Reply to  swgoombah

It would seem to be a very poor time to be seeking uplisting, given the poor financials. It would seem they could find better use for their cash at this point.

👍 410
Travis Johnson, Stock Gumshoe
Admin
Reply to  swgoombah

They’re nowhere near big enough to be taken seriously in an uplifting right now, though I don’t know what their future plans are.

👍 15112

We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.

More Info