MyDx Inc. (OTCQB: MYDX) surprised its investors by sharing a positive update about its trajectory through a press release. The company asserted that its performance this year has been exemplary so far as it outlined plans for rest of the year to continue to grow shareholder value.
Some highlights and accomplishments
In a bid to keep investors well informed about the company’s accomplishments, a brief video clip was also released. Main highlights of the press release included double-digit quarterly revenue growth for the company post-commercialization of its first four patented technologies. Moreover, revenue growth and trimming losses are driving MyDx towards profitability, which is likely to come by the end of the year, according to the company. The company’s net loss was cut to $1.6 million year-over-year from $2.1 million in the first quarter of 2016.
The company reported that it has entered into a first major distribution agreement with Nanolux Technology for its MyDx Analyzer, an affordable portable analyzer detects chemicals in combination with a smart phone app, and CannaDx chemical sensor instrument. The CannaDx app is a cutting-edge product that takes the chemical analysis of cannabis to create the particular strains “Total Canna Profile,” a translation that delivers actionable, customized knowledge for a cannabis user to understand how different strains affect patients’ ailments and feelings, which can be tracked for personal use and shared with others to best define strains’ profiles. The combination of the two products effectively is a personal lab in the palm of a hand.
The agreement with Nanolux, who has extensive distribution channels in place, is valued roughly at $4 million. Besides this, MyDx is looking forward to launching two new sensors by the end of the year, which will help it add two new revenue streams. MyDx said that it is on track to reduce debt and strengthen its balance sheet. At the same time, the company is aiming to ramp up its sales and marketing initiatives.
What lies ahead?
Second half of the year plans will be dominated by new product launches, continued market expansion and profitable growth, said the company’s Chairman, CEO & CFO, Daniel Yazbeck. Based on the company’s trajectory, Yazbeck believes that MyDx is significantly undervalued in comparison to multiples that are given to industry leaders such as Thermo Fisher (NYSE: TMO). While understanding that they are the new kids on the block and that established industry giants like TMO are certainly viewed differently, Yazbeck is confident that the performance put forth by MyDx will eventually lead it to the right value.
He even revealed that the company is reviewing plans to utilize excess cash flows towards stock buyback program and that they are likely to announce such program soon.
Shares of MYDX traded as high as $3.39 in April 2015 and are today at 17 cents are trading near their all-time low of 14 cents printed early this month. Based up 22.2 million shares outstanding, MYDX has a market valuation of only $3.62 million, according to data from QuoteMedia.
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