Adding Zomedica (ZOM, ZOMDF) $0.037 to Watch List.
Our first ‘publicly announced’ trading idea, in what might be decades. It’s from a friend (we’ll call him Bob, an old-timer like us) who used to own a brokerage firm in the 80’s. We usually keep our trading ideas to ourself, since we can’t stand the public embarrassment when things don’t work out, and our trading ideas generally speaking, don’t work out..lol.
But let’s nonetheless give it a shot anyway! MTGA, make trading great again. This will be short and sweet, do your own due diligence.
REASONS TO CONSIDER ZOMEDICA
This is about as wild and crazy (and fun) as we have seen. Here, in bullet points…
> Reasons #1-5 to consider the idea for your portfolio — $76 million, in cash and short term investments.
> Reason #6, a market cap of..$38 million.
>Reason #7, reasons 1-6 are not a misprint!
> Reason #8, the underlying businesses while not mind blowing, are attractive and best in category. It’s in the $62 billion dollar animal healthcare sector – run like an incubator. Meaning using it’s cash war chest to acquire, partner, or joint venture with other fast growing animal healthcare start-ups.
> Reason #8. Noble Financial (see below) had a $0.25 price target back in November of 2024 when it was at $0.12.
REASONS NOT TO CONSIDER ZOMEDICA
> After getting delisted, let’s call it ‘downgraded’ there is a chance they additionally later file a form 25 and voluntarily “go dark,” (more about that later) which means terminating or suspending its reporting obligations. Which means no more 10Q’s, no visibilty of how much money they are making or even how many shares are outstanding. It spells – death nell – not for the business, but for the stock.
> Management doesn’t own much stock. Something like less than 5%. So the stock being down 90% in the last 5 years doesn’t negatively affect their lifestyle. Though there has been some small insider buying in 2024. If they decide to deregister and terminate reporting – they would save the expense of being a public company – mainly audited accounting, legal fees and exchange fees. These fees can add up to a lot, if there is no intention of raising money in the future, like “why” be public?
THE BIG PICTURE
In 2019, Zomedica had $510,000 in the bank. During a share price mania between 2020 and 2021, they hit the market with a series perfectly timed secondaries (perfect for them). By the end of 2021, they had a truly amazing (spectaular even) $194 million in the bank. Thank you H.C. Wainwright & Co.
We’ll skip why price and volume went through the roof, and just note that they hit the motherlode in 2021!
LONGER TERM CHART
Then things got ugly, as the chart above shows. Fast foward to present times, they took a vote to do a reverse split, to stay on a senior exchange (NYSE) and shareholders voted NO!!
Were guessing now they wish they voted yes (or just sold)..just saying. The stock was trading between $0.15 and $0.20 during reverse split related news.
Then the day of delisting.
We have met with management over the years and attended numerous dinners and investor conferences and just watched (luckily) from the sidelines. You could hardly blame an investor for buying Zomedica, when it had market cap of $100 million and cash of $100 million operating in a $62 billion market. Like, why not?
While we have successfully played many “post” reverse-split stocks, we can’t remember the last time shareholders voted no to a reverse, and the company got delisted (nothing wrong with being on OTCBB we might add). So there isn’t much to go on historically with regards to aftermath patterns or trends.
The stock actually traded at $0.01, which is when we were alerted by our friend, Bob a couple days ago.
Zomedica Corp. Announces Transition to OTCQB Venture Market
Since this is a cash versus market cap story, lets end with financials.
Start your due diligence sorting through their disclosures and examine their product lineup on their website.
Insiders. https://www.marketbeat.com/stocks/NYSEAMERICAN/ZOM/insider-trades/
GOING DARK at Skadden and Arps. It happend to us once before, with Jerry’s Deli in 2001. It’s lights out virtually overnite, with virtually no chance, to take a small loss.
This is what a deregistering press release looks like. Jerry’s Famous Deli to Deregister Stock
Wall Street Research Report with $0.25 Price Target (Hmm)
Zomedica Corp., a veterinary health company, focuses on the unmet needs of clinical veterinarians by developing products for companion animals.
The company offers diagnostic products comprising TRUFORMA Bulk Acoustic Wave point of care diagnostic platform; TRUVIEW, a digital cystoscopy platform that offers automated slide preparation within the instrument; and VetGuardian, a zero-touch vital signs remote monitoring system.
It also provides therapeutic products, including PulseVet electrohydraulic shockwave therapy platform; and Assisi Loop line of products, including the Assisi Loop, Assisi Loop Lounge, and DentaLoop devices that treat pain and inflammation through delivery of targeted pulsed electromagnetic field focused energy.
The company has collaboration agreements with Celsee, Inc. for the development and commercialization of liquid biopsy assays and related consumables for the detection of cancer in companion animals; and Seraph Biosciences, Inc. for the development of a novel pathogen detection system.
The company was formerly known as Zomedica Pharmaceuticals Corp. and changed its name to Zomedica Corp. in October 2020.
Zomedica Corp. is headquartered in Ann Arbor, Michigan.
DISCLAIMER.
About Zomedica Corp.
Zomedica is a leading equine and companion animal healthcare company dedicated to improving animal health by providing veterinarians innovative therapeutic and diagnostic solutions. Our gold standard PulseVet® shock wave system, which accelerates healing in musculoskeletal conditions, has transformed veterinary therapeutics. Our suite of products also includes the Assisi® Loop line of therapeutic devices and the TRUFORMA® diagnostic platform, the TRUVIEW™ digital cytology system, and the VetGuardian® no-touch monitoring system, all designed to empower veterinarians to provide top-tier care. In the aggregate, their total addressable market in the U.S. exceeds $2 billion. Headquartered in Michigan, Zomedica employs approximately 150 people and manufactures and distributes its products from its world-class facilities in Georgia and Minnesota. Zomedica is advancing its product offerings, leveraging strategic acquisitions, and expanding internationally as we work to enhance the quality of care for pets, increase pet parent satisfaction, and improve the workflow, cash flow and profitability of veterinary practices. Not a client. For more information visit www.zomedica.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the anticipated transition to the OTCQB Market and the company’s business outlook. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. Factors that may impact future results include, but are not limited to, market conditions, regulatory approvals, and competitive developments. Zomedica disclaims any obligation to update or revise forward-looking statements except as required by law.
Investor & Media Contact:
Investor Relations
[email protected]
(734) 369-2555 extension #5
