Stock PriceOn BNN Market Call today a fund manager essentially said K-Bro Linen didn't get much analyst coverage because it didn't need to raise money. It is underappreciated. I've said it before but because CZO is so successful it hasn't needed to raise money for a long time. The last time it raised money was approaching seven years ago. CZO been able to finance within and now has $13 milion and no debt with a cash runway to a number of key strategic milestones. It may not need money for some time and is neglected by the investment bankers and analyst community because of it as the general market avoids biotech due to the historic bear market in biotech. Around the last time CZO raised money was when the stock ran to $2.50 as the underwriter sold the story to the market to sell the stock and institutional funds bought in and hyped the stock on BNN, etc. What could CZO's stock do the next time CZO raises money and story is sold to the market, etc., given the developments since?
Once the current PGX scale-up is completed CZO may need to raise money. The next PGX scale-up may cost $40 million. CZO will also have its broader ambitions which it may want to control. Avalyn raised C$80 million going into Phase I for its inhaled fibrosis drug. The institutions wanted in and the story was being sold to the market. As CZO completes the next set of strategic milestones CZO may need lots of money for its next steps and may attract numerous analysts as investment bankers feed off the investment banking fees. We may hear the story hyped on BNN again, etc. Until than Gilles continues to build the story and CZO is neglected by the investment bankers, etc.