Verisante Technology (VRS:TSXV) was among the most liquid healthcare-related stocks on the TSX Venture Monday.
Verisante Technology’s shares rebound
Verisante Technology was up more than 50% at one point Monday on more than 600,000 shares traded. Some investors may remember Verisante from a few years ago when it dominated liquidity on the TSX Venture.
Verisante’s multispectral imaging (MSI) system was designed to revolutionize how doctors search for various forms of skin cancer. The technology is a form of imaging that captures data at different frequencies across the electromagnetic spectrum. These frequencies can include wavelengths not visible to the human eye, according to the company.
The company received huge media attention for its claims in 2011 as interest around future prototypes swelled. But, like the majority of small-cap stocks, in any sector, reality told a different story as the time and money needed to produce results and work through the regulatory approval process set in.
The above video was posted on YouTube on June 14th, 2011. Verisante’s shares were enroute to their all-time high and traded between $0.71 and $0.77 per share that day. A far cry, from Verisante’s high of $0.08which it hit today.
Verisante Technology was one of the most liquid stocks on the exchange in 2011 when it began its rally to above $1 per share.
Verisante Technology – 10 Year Chart
On November 12th, Verisante put out its first press release since early July when it announced a breakthrough in the fight against oral and skin cancer with a second phase prototype for the Company’s Intelligent Multispectral Imaging Camera.
The news went largely unnoticed as it was not distributed on the main outlets, including Quotemedia.com for example. Volume in Verisante’s stock was minimal last week, but exploded this morning.
The company chose not to release a typical press release, stating that:
“Press releases are short by nature and therefore detailed information is required to be left out. In response to the range of recent queries brought forward, Verisante is issuing a newsletter to clarify the scope of this new product and outline the positive effect it could have on the Company’s future growth.”
Click here to read the entire release.
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Verisante’s MSI Camera
The secret sauce behind Verisante’s MSI Camera is that it has the potential to detect cancers that other technologies might miss. The company explains its camera in detail:
“Verisante has licensed the exclusive worldwide rights to a rapid MSI imaging system. The camera takes images of 18 different narrow band wavelengths of light in one third of a second to capture high definition multispectral images. From these multispectral images, unique information can be extracted about tissue oxygenation ratios, hemoglobin levels, melanin levels, scatter size, and other parameters which make the device useful to assist in oral and skin cancer detection applications.”
Click here to read the entire press release.
In a Canadian small-cap market that has seen better days, the Venture hovered near 525 this morning, patience is not something most retail investors have in abundance.
Verisante also reported its ‘next steps’ over the coming 12-24 month period. The completion of a laboratory for testing its skin cancer prototype and the building of 5 additional units to place in the field to gather data for its skin cancer device were at the top.
Also on the list for the company, was to begin applications for regulatory approvals. Clearly, this technology is still quite some time away from being commercialized.
In regards to revenue and the company’s potential impact in the space, it reports:
“The existence of a billing code for using the MSI Camera for oral cancer exams means the average dentist can add an estimated $20,000 or more to their annual revenue. This has driven sales of the above mentioned competing devices which have sold an estimated 30,000 units combined. It is Verisante’s goal to dominate this market with what the Company strongly believes is vastly superior technology.”
Whether or not Verisante Technology can gain regulatory approval for its MSI Camera and “dominate this market” are still unknowns. The company most recently closed a non-brokered private placement of 3,888,889 common shares at a price of $0.09 per share for gross proceeds of $350,000 almost one year ago on December 31st 2014. Dilution has to be a point of focus and concern for current shareholders as the company works to maintain its development schedule. However, with its potential market only growing and skin cancer rates on the rise in most countries, some investors have clearly not forgotten about this speculative healthcare-related stock.
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