Hello Mr. Sxxxxx
Thank you for your prompt reply.
We appreciate you sharing your concerns.
You are correct in assessing that news has been a bit slow this month. This is due to the reasons I expressed in our first email. Last year the ChroMedX development team was made up of 2 full time employees and a number of outside consultants focused on the research & development of the HemoPalm. With the addition of Lahav the Company is moving into the next stage of productization, the development team is growing exponentially and we will be appointing key personnel to properly manage this process. This is a very exciting time for the Company and marks the transition from a small R&D organization to a fully formed organization in medical device development. With the expanded team we are now in the process of reviewing the path to market strategy to ensure that the Company is working as efficiently as possible and that their would be a seamless transition in the event of a value based transaction and that we attribute resources to the right strategy to avoid unnecessary dilution.
Our next financial report will be out at the end of this month. As for now the Company has approximately CAD $1.5MM in the treasury with no considerable debt.
James Samsoondar and his wife have been longtime supporters of the Company and are very confident in the potential transaction of the HemoPalm. They have sold a small amount of shares for personal reasons and we do not expect this to be a problem. He has been very dedicated to ChroMedX since its inception, continuing to provide advisory services while he manages the lab at the hospital.
We have had some warrants exercised over the last few months and understand the concern related to these warrants. We have been very fortunate at the Company to have financial partners who have supported ChroMedX over the long term. Most of these individuals have considerable positions in the Company and it is not in their interest to exercise warrants for the sake of selling them recklessly in the market. We have traded above warrant prices for quite sometime and have not experienced this issue in the past. This does not mean that we could not see this issue in the future but the majority of our outstanding warrants are held at one brokerage who is one of the Company’s largest shareholders. The options of the Company have been issued to existing directors/officers and consultants and have a 5 year term which means individuals do not need to exercise these options under threat of expiry.
I am not sure what you mean by potential takeover. If this is in regards to the deal with DxEconomix the terms are very clear. DxEconomix is responsible for leading the Company to a strategic relationship or acquisition for an initial term of 2 years. At present Richard and his team are working with some large Companies in the space to establish a set of requirements that will best suit potential acquirer's or strategic investor/partners. This is an exciting process for the Company as it enables us to ensure that the finished HemoPalm product will fit into existing production lines and supply chains that will maximize the value of a transaction/relationship in our field. Richard and his team currently work with the Company on a consulting basis outside of the success fee based agreement that was finalized earlier this month.
We have reached out to Stuttgart and are discussing with them now. The initial answer we have had is that our market maker has requested a delisting due to lack of activity on the tertiary exchange. The Company did not seek a listing on Stuttgart in the first place but we are doing what we can to get to the bottom of this and find out if there are any issues. We were made aware in December that there was a very large short position in Germany that was unable to cover and have had some correspondence with unrelated market makers that have indicated that there is likely still a short position in the market there that has not covered. We are dealing with our german council now in the hopes of finding a way to rectify this issue so that parties are not incentivized to put downward pressure on the stock or push misinformation or negative speculation.
ChroMedX is very thankful to the German market. Even though the other major blood gas analyzers come from Ontario, Canada where we are the Canadian small cap market does not understand the medical technology sector like the German and American investors do and prefer to focus on the resource sectors. We have a lot more interest in Canada now with the additions of Lahav and DxEconomix but our German shareholders have been extremely important to the advancement of the Company and we will continue to serve in their interests. In the near term we are going to have a german website with all of our documents translated, will be hiring a German representative to deal with German correspondence and we are producing a number of videos with our German speaking director and new special advisor Thomas Schlumpberger. We also plan on a number of investor presentations in the first half of 2018 in Germany for our investors to attend and get acquainted with management.
Cheers,
Clark
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