Fool's article got me spooked Beware the significant business risk!
The small firm is yet to report any revenue on its books since inception.
Although the company’s gold nanotechnology could be adapted for use in several health applications, this requires approval from Health Canada and the U.S. Food and Drug Administration. Such approvals aren’t there yet.
There isn’t any strong cash flow visibility beyond the coronavirus pandemic, especially if the new technology fails to be adapted to other use cases. There’s a significant business risk here.
Sona Nanotech is yet to commercialize any product, and the market is buying into the promise of a product that is still in the development stage. Everything could go wrong here, and that could mean a catastrophic tumble in the share price back to the humble pre-pandemic trading ranges.