Contrarian play Datametrex AI sets sights on shareholder value

• Despite severe losses for pandemic investors, recent news flow from Datametrex AI suggests the company is on the path to profitable growth and shareholder value generation
• The microcap issuer is ruling out a reverse stock split in 2024, opting instead for numerous ongoing growth initiatives outlined below
• Datametrex develops innovative solutions across technology, artificial intelligence and healthcare to enhance operational efficiencies and business outcomes
• Datametrex stock has fallen by 83.33 per cent year-over-year, and by 50 per cent since 2019

Despite severe losses for pandemic investors, recent news flow from Datametrex AI (TSXV:DM) suggests the company is on the path to profitable growth and shareholder value generation.

On Tuesday, the technology-, artificial intelligence- and healthcare-focused issuer closed a C$1 million private placement at C$0.02 per share, including a little more than 10 per cent insider participation, to shore up its working capital.

The fresh funds will help Datametrex to build upon numerous revenue-generating initiatives spearheaded by new CEO Charles Park after December’s restructuring. These include:

• The expansion of IT services, as recently highlighted by the company’s first contract with a global energy company
• Opening new healthcare clinics and wellness centres based on strong revenue from existing operations
• Deploying its artificial intelligence technology in the entertainment sector, as recently highlighted by the company’s contract with CBM Entertainment focused on the marketing of its K-pop artist roster

The financing close follows yesterday’s confirmation that Datametrex does not intend to apply for a reverse stock split in 2024 to attract a broader investor base, preferring instead to create value through operational performance.

Management commentary

“We are immensely thankful for the support and confidence our investors have placed in Datametrex,” Park said in a statement. “This successful financing is a clear endorsement of our strategic direction and underscores the significant growth potential we see ahead. We are committed to leveraging this capital to further our goals and deliver value to all our stakeholders.”

About Datametrex

Datametrex develops innovative solutions across technology, artificial intelligence and healthcare to enhance operational efficiencies and business outcomes.

Datametrex stock (TSXV:DM) is unchanged, trading at C$0.02 per share as of 9:45 am ET. The stock has fallen by 83.33 per cent year-over-year, and by 50 per cent since 2019.

Join the discussion: Find out what everybody’s saying about this potentially undervalued microcap stock on the Datametrex AI Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.