$ and sense
Although I am disappointed that they had to do a placement at 7 cents. After seeing the numbers in the prospectus i am encouraged. They clearly state that they have 250,000+ orders and that they are capable of 1000 tests per day (need equipment and people to perform them). We all knew that money was tight so in order to meet those test volumes they needed cash fast. With potentially $8 million they should be able to easily process all the tests that come their way and receive revenues of 18 to 34 million i think it said. If you take the median at $25ish million and add another 10 million later from the 9 cent warrants, the company should no longer have to raise capital. So Covid is the catalyst that changes the coarse of this company. If covid 19 had not happened it is pretty clear SZLS would be bankrupt.
Covid looks like it is going to be with us until a vaccine or a high quality therapuetic is developed. We may have a year, maybe more, maybe less, who knows? As this virus plays out the cancer screening business must get traction or a year or two down the road this company is back in the same place but won't be able to raise money.
The thing we need to see is those test numbers and the revenues, but $25 million in revenue over 450 million shares is 5 cents of revenus/share. If the earnings are say 3 cents/share (60% margin) and we traded at a PE of 15 we might get a 45 cent stock price. If the revenues come fast maybe we get a bit of a momentum bump as well and trade at 20X = 60 cents
Looks like I talked myself into holding for another 6 months.