SQI Diagnostics Inc V.SQD.H

RE:Liquidity and Going Concern Risk

[mercedesman]

No particular insights on where (if) funding will come in time.  Going Concern warnings are required long before "the hardest of times" for legal reasons.

But here are a few thoughts:

$ 18 M  CAD $ MC (today at .045) for the complete pipeline (see today's release) ?!?!?!?  When the future annual revenue potential of the pipeline is between $ 1B USD and $ 2B USD ?!?!?
 Latest on the pipeline:
https://stockhouse.com/news/press-releases/2023/03/03/four-diagnostic-products-in-the-pipeline-at-sqi

Walking away after all that has been accomplished (R&D and science-wise)? ( Tho not so much when it comes to commercialization - yet) 

To be fair a potential buyer or white knight may conclude that it'll take more than $ 10M to get to meaningful commercialization & postive cashflow. Perhaps 3 to 5 times that?

The other thing for an investor to consider is that the opportunity is not all  wrapped up into just 1 (or even 2) product(s) - but five separate opportunities  (4 diagnostics + 1 Antibody at Home test (that just needs more favourable US regulatory approval to be viable).   Anybody plunking down support now, only has to see the Company hit on 1 or more of 5 opportunities, to make it a good investment.

The 3 mega owners already own > 80% fully diluted.   Lots of friends family etc likely own a chunk of the balance. I see no percentage in burning it down at this point just in order for some unknown party to potentially wrestle away 100% of the IP in the 11th hour.

I'll be shocked and surprised if a white knight doesn't ride into town over the next several weeks.   Too important to the UHN alone, to risk losing control of a key element of their go-forward plan, and the future? of lung transplants.

Finally, would a Receiver or Monitor (under the worst case scenario) not be able to find a buyer for 1 or more of the advanced products?  Is it possible to find a $ 50 or $ 100M IP buyer for one or more of the pillars in a firesale?   If so, it suggests that monies would be there to save the Company & shareholders, under a worst case scenario.  

So my gut is that cooler heads will prevail.  No guarantees.  Investing is hard...and it's risky...especially during times of rising interest rates.

MM