ENP Newswire - 18 October 2013
Release date- 17102013 - Vancouver, British Columbia - Sirona Biochem Corp. (TSX-V: SBM, OTCQX: SRBCF) today provided a business update.
I'd like to take this opportunity to summarize Sirona Biochem's business and strategic growth over the past 12 months.
In October 2012, Sirona Biochem's share price hit a low of 4 cents and our market cap was $3 million CDN. We made the decision to raise money using a debt instrument to avoid a punitive equity financing. We raised $600,000 in debt which gave us the financial runway to grow the value of the company to a high of 14 cents per share and a market cap of more than $11 million on January 18th 2013.
February 22, 2013 we announced an equity financing target of $2.7 million and we closed the second tranche of this financing on April 30, 2013 having raised $1.8 million in equity.
September 11, 2013 we announced an equity financing target of $1 million and we oversubscribed the private placement, closing on September 19th having raised $1.17 million.
On October 11, 2013, Sirona's share price was 16.5 cents and our market cap was $17.83 million CDN, representing an increase in market capitalization of $14,644,394.00 CDN and a market capitalization increase of 560%.
As of October 11, 2013, Sirona Biochem's running 3 month average trading volume was in excess of 500,000 shares per day.
The decision was made in November 2012 that we would de-risk our business model and simplify our operations.
Sirona' Biochem's business model
Sirona Biochem's expertise is in creating new chemical compounds (pharmaceutical and cosmetic) that have distinct advantages over existing technologies. Each compound that we create will be licensed to an industry-leading company who will be responsible for developing, manufacturing and selling the compound. In return for the licenses, Sirona will receive licensing fees, milestone payments and ongoing royalty payments. The more compounds Sirona Biochem creates, the more revenue streams Sirona Biochem receives.
With this level of strategic focus, we diversify our risk across multiple projects, increase our portfolio size more quickly and continue to build our credibility and reputation as experts in the discovery of innovative therapeutics.
In November 2012 we restructured the company and downsized our corporate head office by one position. In our laboratory in France we assessed every project in development and made the decision to focus our resources on two projects (SGLT2 inhibitor and skin lightening) to ensure each would be completed and available for transaction within 6 months. All other projects were assigned a timeline for re-insertion into the development pipeline contingent upon the successful completion of our two prioritized projects.