Maintaining Biomoda Avoid/Sell Rating
Biomoda Shows 10-Q Continuing Capital Difficulties
Download Full 19-Page Update with Important Disclosures: BMOD Update 08-26-11
1.) Biomoda filed their 10-Q for Q2 2011 which indicated that they continue to have difficulty raising development capital under satisfactory terms. Specifically, the 10-Q stated the following:
“Biomoda currently is insolvent and will remain insolvent until new funding is secured. The Company is investigating all means of funding, including restructuring. Management believes that Biomoda’s technology is sound and can be developed to commercialization if funding for research and clinical trials can be secured. Management will continue to work despite lack of funds to procure investment, and the Company is in conversations with several investment funds to resolve the current financial situation and continue forward with technology and commercial development. Biomoda currently has obligations of approximately $1,000,000. The anticipated capital needs for the next 12 months are $2,000,000, for a total capital raise of $3,000,000. This amount is planned to fund the optimization work leading to the pivotal trial.”
2.) While we continue to believe that Biomoda’s CyPath® could represent a breakthrough in lung cancer screening (for which there is no currently FDA-approved methodology), we believe investors should now move to the sidelines until we have better visibility on the financial landscape for Biomoda.
3.) Due to the financial uncertainty, we are unable to forecast CyPath® development timelines. Therefore, we continue to exclude any financial model and maintain our Avoid/Sell rating until such time as the capital uncertainties are resolved with some degree of confidence yielding a reasonable basis for a developing a financial model.
Download Full 19-Page Update with Important Disclosures: BMOD Update 08-26-11
