Medical device company using nasal technology in the areas of breathing, improving sleep and congestion.
Initially they had the Turbine product to help altheles improve their breathing performance.
Then the Mute product to help with snoring.
Now the Pronto sleep product using the breathing technology and essential oils to help sleep.
It has been burning cash while it developed its nasal technology and raising capital every year.
The latest capital raise is at $0.077 underwritten by is largest shareholder W. Whitney George 47.63m 28.15%. If no shares are applied for and he as the underwriter takes all the shares for the $6.5m raise then his holding will be slightly over 50% giving him control of the company.
Cash Receipts at the end of CY19 was $3.1m which was a growth of >70% from CY18.
The number of chemists stocking their products is expected to reach 20,000 by the end of the FY.
If they continue with this store and sales growth, an inflection point could be reached in the next year or two which would lead to a considerable rerating of the stock. If it remains significantly cash flow negative then it will need to raise additional share and dilute the shareholder further.