Microbix Biosystems Inc T.MBX

KRC reduces share price target to $1.80

[wizzdumb]

May 26, 2021 -  KRC Insights put out a Q2 Update on Microbix.  The following is KRC's summary and below is the link for the full report. 

 

FQ2/21: Despite strong results and strategic benefit of capital raise, valuation gap widening presents excellent entry opportunity. Reducing target to $1.80 (from $2.00) to account for equity offering.

 

 

• Quarter confirmed revenue growth – 51.5% YoY revenue growth.

 

• Margins holding up at 59.87% driving EBITDA margin of 29.6%.

 

• VTM (largest forecast variable): management expanding capacity now in anticipation of additional orders from Gov't of Ontario and those from 3^rdparties . 

 

• Equity raise removes balance sheet risk. Budgeted facility upgrades and capacity expansion (QAPs and VTM) positions company to bid on new business immediately.

 

• Shares trading at lowest multiple vs peers. It appears that investors are waiting for something while the story is unfolding in front of them.

 

• Lowered tgt to $1.80 (from $2.00) to account to additional shares in issue, but confidence in MBX has increased as now fully funded.

[RazeKreations]

 After accounting for the capital raise and significant capex, we forecast MBX will end F22 with $8.8m cash. There is also $16.6m due from warrants/options ($13.3m within 26 months), suggesting that MBX will have a war chest for acquisitions, share buybacks, and to accelerate the Kinlytic urokinase commercialization.

[RazeKreations]

Here is the link to the report https://files.constantcontact.com/19b93b72501/820e7e89-f023-48fd-aaaa-f531bfa718a4.pdf

[wizzdumb]

From the report: We believe that if this valuation difference persists, MBX will be acquired. Cameron made a comment in the Q2 webinar that if Canadian markets didn't start to realize value and potential of the compnay interesting things might happen.  I'm starting to think they may have been approached, and if I had to guess it was by Copan Italia. Private company, current

[Mbxwatcher]

Unfortunately I don't think you are.  I think we are at risk of a low ball offer $1.00 ??  The Italian company is a good  guess. after being in this since 2009 that would be incredibly disappointing.   Not clear on the rules but I'm sure shareholders could reject it.

[rjc7]

I doubt controlling interests (insiders) would let it go that cheap.  

[Mbxwatcher]

Music to my ears

[RazeKreations]

No way they would sell now. Just got to a point where this company has huge potential to become a major player in the Healthcare industry. Its like i stated before. We need more fund managers to promote MBX and that might take until the end of this fiscal year. Many still using last fiscal year end financials for guidance. Once they see this years fiscal results there will be a major scramble to