Theralase Technologies (TLT:TSXV) has been one of the more liquid stocks on the TSX Venture in recent weeks.
The company is advancing its “cancer destruction technology” and has found success in recent preclinical animal trials.
Theralase traded nearly 27 million shares on the 29th and 30th of May following significant news surrounding its patented cancer technology. Its shares nearly doubled in value last week, moving from a low of $0.255 per share on the 29th to a high of $0.48 per share on the 30th. Despite hitting a high of $0.48 the stock fell back to $0.34 by the close.
There is no question May 29th’s attention grabbing headline, Theralase Discovers Anti-Cancer Memory Response, impressed investors and caused the stock to explode higher. However, just one week removed from the major press release and the stock is trading at $0.32, down 5% on the day.
Potentially, a key reason for the continued resistance could be the fact that Theralase issued 21 million units to investors at a price of 15 cents per unit in November of 2013. Associated with that private placement were 21 million warrants at $0.20 per share. These warrants have been in the money since they became free trading in March of this year.
A brief excerpt from Theralase’s historic press release last week is featured below:
“Theralase Technologies Inc. (“Theralase”) (TSXV: TLT) (TLTFF: OTCBB) announced today that in preclinical animal testing, performed at Princess Margaret Cancer Centre, University Health Network (“UHN”), it has discovered that its lead Photo Dynamic Compound (PDC), intended for the destruction of cancer, has demonstrated an ability to render animals immune to repeated exposures of the same cancer.”
Click here to read the entire press release.
Theralase Technologies announced on May 27th that its latest research on Photo Dynamic Compound (PDC) technology, proven effective in the destruction of bacteria and cancer, was peer reviewed and invited to be published in the prestigious US Elsevier publication, Coordination Chemistry Reviews.
An excerpt from that press release is below:
“The new research presents how Theralase’s new class of PDCs incorporates systems that act as dual Type I/II PDCs (able to work in oxygenated and non-oxygenated tissue), opening up the possibility of treating hypoxic (low oxygen) tumours with Photo Dynamic Therapy (PDT). These PDCs are remarkable in-vitro centromere binders (localizing to the nucleus of a cell) and photocleavers (ability to damage nucleus), thus destroying cells when exposed to light. They also exhibit no nucleic damage in the absence of light, supporting their high safety and tolerability.”
Click here to read the entire press release.
While the cancer Photo Dynamic Compound (PDC) technology, proven effective in the destruction of bacteria and cancer has received the attention of investors from coast to coast of late, it is not the company’s main source of income. Despite encouraging results, the technology remains in the advanced research and development stages.
Theralase Technologies Inc. designs, develops, manufactures and markets patented, superpulsed laser technology utilized in biostimulation and biodestruction applications. The technology is safe and effective in the treatment of chronic pain, neural muscular-skeletal conditions and wound care. This is Theralase’s main source of income currently.
Theralase lists a total of 749 clinics on its website that currently utilize its laser therapy technology.
When its foundational laster technology is combined with its patented, light-sensitive Photo Dynamic Compounds, Theralase laser technology is able to specifically target and destroy cancers, bacteria and viruses. Theralase lasers are FDA, Health Canada and CSA/UL approved, and have international ISO 13485 certification.
The advancement and early success in preclinical animal testing of this technology is what led to nearly 30 million shares trading hands last week.
Cold Laser Therapy explained:
Low Level Laser Therapy (LLLT) is the use of therapeutic (or cold) laser light to provide relief from pain, eliminate inflammation (swelling) or to repair damaged tissues.
Theralase lasers work by supplying energy to the body in the form of billions of photons of light. This has been the foundation of Theralase’s technology for over 17 years.
President and CEO of Theralase, Mr. Dumoulin-White, summed up Theralase’s current position in a quote from May 30th’s press release:
“Our patented cancer technology is demonstrating significant success in preclinical research and is on track for clinical evaluation in humans for bladder cancer as early as 1Q2015. If our PDC technology, with its recent advances in providing an immune-mediated memory response in the destruction of cancer, is proven effective in cancer patients, the implications of this discovery are nothing short of game changing for both Theralase and for the cancer patients, who are inflicted with this deadly disease. The ability to destroy the original cancer and at the same time program the body’s immune system to prevent its recurrence, after only a single treatment, is nothing short of miraculous. The scientific, clinical and engineering teams at UHN, Acadia and Theralase are all fully dedicated to bringing the Theralase anti-cancer PDC technology to the forefront of clinical treatment, as soon as possible, in order to help eradicate the world of cancer and assist cancer patients.”
Click here to read the entire press release.
To help facilitate the launch of these two groundbreaking technologies in 2014 and 2015, the company closed a $3.15-million private placement on Nov. 7, 2013, issuing 21 million units to investors at a price of 15 cents per unit.
Each whole warrant will entitle the purchaser to purchase one additional common share in the capital of the company until Nov. 7, 2015, at a price of 20 cents.
As mentioned above, this has likely been the reason for price resistance in recent weeks as early investors could opt to exercise warrants. The positive to that, of course, is that it would beef up the company’s treasury balance.
Theralase Technologies – 3 Month Chart
Theralase issued 21 million units at a price of $0.15 on November 7th 2013. Those shares and the full warrant at $0.20 became free trading on March 7th (outlined by the red circle above).This is significant as it represents roughly 1/3 of the company’s total outstanding shares. The stock retraced to a low of $0.205 on May 20th, almost the exact price of the attached warrant, before its recent rebound.
On May 27th, Theralase received a boost of confidence after announcing its latest research on Photo Dynamic Compound (PDC) technology, proven effective in the destruction of bacteria and cancer, was peer reviewed and invited to be published in the prestigious US Elsevier publication, Coordination Chemistry Reviews. An excerpt from that press release is below:
“The new research presents how Theralase’s new class of PDCs incorporates systems that act as dual Type I/II PDCs (able to work in oxygenated and non-oxygenated tissue), opening up the possibility of treating hypoxic (low oxygen) tumours with Photo Dynamic Therapy (PDT). These PDCs are remarkable in-vitro centromere binders (localizing to the nucleus of a cell) and photocleavers (ability to damage nucleus), thus destroying cells when exposed to light. They also exhibit no nucleic damage in the absence of light, supporting their high safety and tolerability. This PDT effect translates effectively to animals and has proven superior to the FDA approved PDC Photofrin(R), in this research. The ability to activate the Theralase PDCs from visible to Near Infra Red (NIR) light marks an unprecedented versatility that can be exploited to match treatment depth to tumour target depth, giving rise to PDCs for multi-wavelength activated PDT.
Photo Dynamic Therapy (PDT) is an elegant method for destroying cancer cells. PDCs accumulate in cells intended for destruction and when light activated destroy the intended cell; hence, PDT is best described as a combination therapy that offers selectivity through local interactions between a PDC, light and oxygen.”
Click here to read the entire press release.
Theralase recently announced its Q1 financial results. Total revenue for the three-month period ended March 31, 2014 increased 5% from $342,900 to $361,179 year over year.
The net loss for the three-month period ended March 31, 2014 was $344,074 (including $15,897 of net non-cash expenses) compared to a net loss of $332,435 in the same period in 2013 (including $56,829 of net non-cash expenses), a 3.5% increase.
The company emphasized that the net loss reflects the ongoing commitment of Theralase to invest in its next generation of therapeutic laser and cancer destruction technologies, from existing therapeutic laser sales. A noted advantage Theralase has in comparison to other micro caps lies in the steady revenue derived from its laser therapy division, roughly $2 million in 2013. This revenue could help to offset future dilution as the company advances its lead cancer destruction technology.
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