New York, New York--(Newsfile Corp. - May 13, 2021) - PCG Digital -- Things seem to be heating up for (NASDAQ: AIKI) with a near term potential catalyst quickly approaching this quarter and several others planned throughout the remainder of the year. Management has been filing form 4s showing open market buying which typically signals strong faith in the company and signifies how undervalued they believe the stock may be at these levels. Speaking of which, the stock appears to be extremely undervalued as it trades well below its cash balance sheet with over $102 mill in cash on the balance sheet with no debt and an extremely clean cap structure.
Amazingly, they also have a few hidden assets/investments that are not readily apparent to the naked eye that are valued at an additional several million dollars and have the potential to be worth much more!
So why should investors be paying very close attention right now? If you look at the last several releases they have issued they have alluded to a key milestone approaching with testing data publication and technology advancement results expected this quarter. So within the next 30-45 days, things may get very exciting indeed!
Strong Pipeline with Multiple Catalysts
The company is involved in some very exciting sectors in the biotech industry including next-generation dual-action peptide receptor radionuclide therapy for advanced human trials relating to prostate cancer therapies, which happens to be the same space that Novartis just reported positive phase 3 data and has been snapping up technologies for multi billion dollar valuations over the last few years. See one and two here.
AIKI is also actively involved in another sector that has been attracting growing investor interest with its partnership with Mount Sinai Center for Psychedelic Psychotherapy and Trauma Research to help veterans who are suffering from post-traumatic stress disorder (PTSD).
If that wasn't enough, AIKI has an exclusive patent license agreement with Silo Pharma, Inc. for technology that covers the use of psilocybin (a naturally occurring psychedelic prodrug compound produced by more than 200 species of fungus) for cancer patients providing the Company with the opportunity to explore an emerging and expanding treatment for neuroinflammation, which is frequently associated with cancer, and other cancer-related neurological side-effects.
Lastly, AIKI also has a broad spectrum anti-viral platform that has shown progress in optimizing drugs for the treatment of influenza, COVID-19, Ebola, and other viral infections. These new compounds are being tested against the influenza virus with testing on SARS-CoV-2 expected in the near future.
Each of the above areas of focus have milestones approaching and can prove to be strong catalysts that may drive shareholder value.
Strongest cash balance in its history: So where did all of this cash come from and why is it trading so far below its cash value and getting zero appreciation for all of its therapies and partnerships? If you look back over the past year, the stock has performed well and allowed the company to raise significant amounts of cash at higher valuations. Its last round of $86 million raised at $1.6 just this past February with no warrants at all coincided perfectly with the top of the micro cap biotech spike we all experienced this past year. Since then the sector has been hit hard with a lot of profit taking coming in and pushing the entire sector down hard. The micro cap market often presents anomalies which can be taken advantage of by the astute investor. Many micro cap biotech stocks rightfully were overvalued but with ETF, algorithmic and quant trading and many unsophisticated investors just blatantly selling off the entire sector, it seems to have created an oversold situation for several companies that now trade well below their cash levels like AIKI.
Low burn rate: A common fear in the biotech space can be extremely high cash burn rates that force companies to constantly have to raise more money. However, AIKI has an extremely low burn with only about $4.0 million utilized from operations in all of 2020 and only about $1.2 million in Q1 2021 - at that rate the $102 plus million in the bank will last for years to come.
Strategic initiatives and future partnerships: So what will they do with all that cash? They recently stated that they will be funding additional research activities (that can provide further value enhancing opportunities) that are currently underway and will selectively pursue additional emerging opportunities. AIKI's strong partnerships with notable Universities and Hospitals may serve as catalysts this year.
Investor conferences starting this week: So with all this now in hand, it is extremely interesting to see that the company just announced that they will be presenting at three different notable investor conference in the next 30 days starting later this week...Investors may start to wake up to the very near term catalysts this quarter as well as another major strategic partnership that could be coming soon.
They must be excited about something…
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