RedChip announced today that it has issued a research update on its featured company, BioForce Nanosciences Holdings, after the company announced the completion of a financing agreement that is valued up to $3.45 million. As terms of the agreement, the institutional investor was granted Series A 8% Convertible Preferred Stock at $0.50 per share and a series of warrants with exercise prices ranging from $0.50 to $1.25 per share. It is important to note, however that the transaction is structured at a fixed price, which protects the interests of current shareholders.
BioForce Nanosciences is focused on developing and commercializing nanotech instruments, associated consumables, and applications for the life sciences sector through its wholly owned subsidiary. The Company’s flagship product, the Nano eNabler molecular printer, places tiny droplets of liquid onto surfaces with nanometer precision. This unique technology opens doors for innovation in various fields of biotechnology, nanotechnology and medicine.
The analyst who completed the research report stated, “In summary, we continue to believe BFNH offers a compelling investment opportunity for those seeking exposure to micro-cap nanotechnology equities. With a current market cap of less than $16 million, BFHN is undervalued given the expected trajectory of near-term revenue growth and the large ultimate market potential of the Company’s product offering. Using sales of AFMs as a proxy for market size and assuming approximately 8,000 AFM sales to date yields a potential market of $1.3 billion (8,000 systems x $160,000 per system) for the NeN system, or $800 million assuming a lower sales target (5,000 systems).
Let us hear your thoughts:
