Biotricity (BTCY) Could Be a Case Study for a Well Managed Businesses with Their Rapid Growth, Controlled Costs and a New Non-Dilutive Financing Deal
Good day everyone and welcome to all of our new group members,
As I said earlier, this is fast becoming one of my favorite Biotech companies to report on.
Biotricity, Inc. (NASDAQ: BTCY), is a medical diagnostic and consumer healthcare technology company.
Current price $4.315/share (at 10:30 a.m. EST 12-27-21)
In news released Monday morning the company announced a $12M non-dilutive debt financing. The company indicates the deal strengthens its balance sheet and positions the company for multiple new product launches in 2022. BTCY shares gained on the news.
Net proceeds of $10.18 million were received by the Company, after giving effect to the payment of $274,000 in origination and the repayment of approximately $1.57 million in prior Company indebtedness. In addition, the Company issued the Lender 57,536 warrants convertible into one share of common stock each, with a 7-year term and an exercise price of $6.26.
We last reported on BTCY seven weeks ago and wanted to update that report. I feel there is untapped value in this company and that the near-term prospects look good.
Outstanding shares 47.66M
Shares in float 37.45M
Revenues (ttm) $5.76M
Insider ownership 11.3%
The one metric that impresses me the most at BTCY is their revenue growth because growing revenues can remedy almost all financial metric concerns in the long haul. BTCY has a FYE of March 31st, so they have completed their FYE 22H1 and are coming to the end of Q3. Let’s look at their revenue growth:
FYE 3-31-19 $398K
FYE 3-31-20 $1.4M (+260% YoY)
FYE 3-31-21 $3.3M (+240% YoY)
FYE 3-31-22 H1 $3.5M (surpassed last year’s revenues already)
Earlier I said that BTCY was professionally managed, and I think that, because over the last three fiscal quarters, revenues have grown 80% from $1.0M to $1.8M but operating expenses have only grown by 52% from $3.6M to $6.3M. Additionally, BTCY is operating with an enviable 66% gross margin (FYE 22H1). Management must keep their “eye on the ball” to keep those figures consistent.
Growing revenues at a rapid pace is a challenge for any business at the onset of their growth, but growing revenues and maintaining a high gross margin while keeping expenses in check takes a real team of pros.
Earlier this month Dr. Waqaas Al-Siddiq, CEO addressed a letter to shareholders, and I urge you to review it as a part of your due diligence. I am going to unwrap some of the points made in that letter in our forthcoming full report.
Unique Selling Propositions (USPs) at BTCY
Many companies are competing in the home use cardiac device market, but BTCY is the one making their products capable of transmitting data to physicians, disrupting, and reducing the need for clinic-based treatment.
BTCY is creating an ecosystem with their product line where all their devices are working in tandem and transmitting data into their unique cloud system. Maybe they took a cue from Apple, a company that does the same thing with their products.
BTCY home use products are affordable. You can but their new, blockbuster product Bioheart on Amazon for $149.00.
The company has a unique selling approach with their flagship product, BioFlux, marketed to cardiac physicians. Not only does the company train doctors and staff on how to use the product, but they also train them on how to bill insurance companies with simple codes. This billing aspect of Biotricity products starts at the design stage. Smart!
With a proforma level of revenues for FYE 2022 looking to reach $10M, and a list of USPs to be envied, BTCY is one of the most exciting biotech companies we’ve reported on. We expect there could be continuous growth in the company value in the near and mid-term.
Stay tuned for our full report on BTCY where we discuss the near-term future of the company.
The Traders News Group
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