To early to tell, but I think there is a good chance that ZOM shifted from distribution phase in to accumulation phase .$0.12 price level is showing strong support and it is also (in my opinion ) psychological point -moving past that level can potentially trigger an avalanche .At this moment we can expect price to move sometime in $0.12-$.13 channel .
Reverse split might have a positive impact on the price of ZOM ,penny stocks have a bad reputation, and that's not what most legitimate companies want to have. So a reverse split can boost the stock to a “respectable” price. This may lead to increased attention from analysts and investors, who may see the company as more legitimate at the higher price, many institutional investors and mutual funds have policies against taking positions in a stock whose price is below a minimum value.
August 27, 2020
Dear Zomedica Shareholders:
As I pass my second month anniversary at Zomedica, I have been looking forward to communicating with
you directly and to offering both my impressions of the Company and an update on our progress. I am
pleased to report that I have been impressed by what I have seen since assuming the CEO role. I believe
that the core technology, planned products, and employee base of Zomedica are strong, and that our
future is bright. Recognizing that the Company has been through some challenging times in the recent
past, we now all are united in the singular goal of advancing our lead product platform -- TRUFORMA™
-- to market as expeditiously as possible without sacrificing the quality of the product, which is critically
important to Zomedica.
Our intent is to launch TRUFORMA with five assays, which I believe immediately will make it a
valuable contributor to the veterinarian's practice, both clinically and economically. This means that we
are, in effect, developing five products simultaneously, which is a substantial undertaking. As reported in
past news releases, in partnership with a subsidiary of Qorvo, Inc., which had revenues last year of over
US $3.0 billion, we already successfully have verified three of the assays, and work is progressing on the
remaining two. Proper testing is an important part of any product development effort, but more so when
your product will be used to diagnose a living animal. We never forget this responsibility and we do not
compromise in this area. That is why product development takes longer than some people would like.
Validation must follow verification, and then market testing occurs prior to commercial release. While
we have worked to streamline this process, it still takes time. We certainly appreciate, and hope to reward,
your patience in the not-too-distant future.
As I write this letter, we have more than US $50 million in cash and cash equivalents as a result of our
capital raising activities in 2020. By taking advantage of favorable market conditions, we believe that we
now have sufficient cash to take us well beyond TRUFORMA commercialization and have reduced
dramatically the financing risk that previously has been an issue for our company. This additional capital
also puts Zomedica in a better position to weather any new adverse consequences of the pandemic. We
intend to be good stewards of our capital and will continue to embrace a "lean and mean" operating
philosophy.
Our commercial team has been working hard to prepare for the upcoming market release of
TRUFORMA. We intend to pursue a hybrid sales model for the United States utilizing a small number of
high-quality regional distributors who will be supported in the field by our own Zomedica direct sales
employees, some of whom will service key geographies independently of our distributors. We also plan to
have several veterinary clinical direct employees who, when needed, can provide deep clinical expertise
on our products and their applications. Our goal is to assemble a selling organization that is appropriate
for a variety of circumstances and to be ready to hit the ground running with a sizeable effort and preexisting customer relationships from day one. The behind-the-scenes effort employed to develop
marketing and educational materials also is in full swing. The sales organization that we are building is
intended not only to support TRUFORMA, our customers and their patients, but also to be suitable for
future Zomedica products. I am looking forward to our Annual Meeting of Shareholders. Normally, I look forward to meeting as
many shareholders as I can in person, but these are unusual times. I hope to address most, if not all, of
your questions at the virtual meeting. While I realize that we have a "crowded" proxy statement, one
agenda item for the meeting that I know is the subject of discussion among shareholders is the proposed
reverse split, or consolidation, of our outstanding common shares. We are seeking your approval for the
reverse split in order to comply with a specific requirement of the NYSE American exchange that we
increase the trading price of our common shares. If we do not receive shareholder approval for the reverse
split at the Annual Meeting, our common shares will be delisted from the NYSE American. It is important
for us to maintain our listing to assure that there is a liquid market for our common shares. The reverse
split is intended only to increase our stock price by reducing the number of shares outstanding, which is a
purely mathematical exercise that does not affect your ownership interest in the Company. Accordingly,
our Board of Directors has recommended that shareholders vote in favor of the reverse split.
Finally, I would like to wish you all well during this difficult time. We at Zomedica have adjusted to the
new COVID environment, with the majority of us working remotely. We proactively are addressing
COVID-related issues that could impact our commercial launch, including by the development and
implementation of remote installation capability for our TRUFORMA instrument.
In summary, I believe that we now are well capitalized and well equipped to face the challenges ahead of
us as we move toward commercialization. These are exciting times. Stay safe and healthy, and I look
forward to delivering additional updates as we make further progress with our key milestones.
Robert Cohen
Reverse split might have a positive impact on the price of ZOM ,penny stocks have a bad reputation, and that's not what most legitimate companies want to have. So a reverse split can boost the stock to a “respectable” price. This may lead to increased attention from analysts and investors, who may see the company as more legitimate at the higher price, many institutional investors and mutual funds have policies against taking positions in a stock whose price is below a minimum value.
August 27, 2020
Dear Zomedica Shareholders:
As I pass my second month anniversary at Zomedica, I have been looking forward to communicating with
you directly and to offering both my impressions of the Company and an update on our progress. I am
pleased to report that I have been impressed by what I have seen since assuming the CEO role. I believe
that the core technology, planned products, and employee base of Zomedica are strong, and that our
future is bright. Recognizing that the Company has been through some challenging times in the recent
past, we now all are united in the singular goal of advancing our lead product platform -- TRUFORMA™
-- to market as expeditiously as possible without sacrificing the quality of the product, which is critically
important to Zomedica.
Our intent is to launch TRUFORMA with five assays, which I believe immediately will make it a
valuable contributor to the veterinarian's practice, both clinically and economically. This means that we
are, in effect, developing five products simultaneously, which is a substantial undertaking. As reported in
past news releases, in partnership with a subsidiary of Qorvo, Inc., which had revenues last year of over
US $3.0 billion, we already successfully have verified three of the assays, and work is progressing on the
remaining two. Proper testing is an important part of any product development effort, but more so when
your product will be used to diagnose a living animal. We never forget this responsibility and we do not
compromise in this area. That is why product development takes longer than some people would like.
Validation must follow verification, and then market testing occurs prior to commercial release. While
we have worked to streamline this process, it still takes time. We certainly appreciate, and hope to reward,
your patience in the not-too-distant future.
As I write this letter, we have more than US $50 million in cash and cash equivalents as a result of our
capital raising activities in 2020. By taking advantage of favorable market conditions, we believe that we
now have sufficient cash to take us well beyond TRUFORMA commercialization and have reduced
dramatically the financing risk that previously has been an issue for our company. This additional capital
also puts Zomedica in a better position to weather any new adverse consequences of the pandemic. We
intend to be good stewards of our capital and will continue to embrace a "lean and mean" operating
philosophy.
Our commercial team has been working hard to prepare for the upcoming market release of
TRUFORMA. We intend to pursue a hybrid sales model for the United States utilizing a small number of
high-quality regional distributors who will be supported in the field by our own Zomedica direct sales
employees, some of whom will service key geographies independently of our distributors. We also plan to
have several veterinary clinical direct employees who, when needed, can provide deep clinical expertise
on our products and their applications. Our goal is to assemble a selling organization that is appropriate
for a variety of circumstances and to be ready to hit the ground running with a sizeable effort and preexisting customer relationships from day one. The behind-the-scenes effort employed to develop
marketing and educational materials also is in full swing. The sales organization that we are building is
intended not only to support TRUFORMA, our customers and their patients, but also to be suitable for
future Zomedica products. I am looking forward to our Annual Meeting of Shareholders. Normally, I look forward to meeting as
many shareholders as I can in person, but these are unusual times. I hope to address most, if not all, of
your questions at the virtual meeting. While I realize that we have a "crowded" proxy statement, one
agenda item for the meeting that I know is the subject of discussion among shareholders is the proposed
reverse split, or consolidation, of our outstanding common shares. We are seeking your approval for the
reverse split in order to comply with a specific requirement of the NYSE American exchange that we
increase the trading price of our common shares. If we do not receive shareholder approval for the reverse
split at the Annual Meeting, our common shares will be delisted from the NYSE American. It is important
for us to maintain our listing to assure that there is a liquid market for our common shares. The reverse
split is intended only to increase our stock price by reducing the number of shares outstanding, which is a
purely mathematical exercise that does not affect your ownership interest in the Company. Accordingly,
our Board of Directors has recommended that shareholders vote in favor of the reverse split.
Finally, I would like to wish you all well during this difficult time. We at Zomedica have adjusted to the
new COVID environment, with the majority of us working remotely. We proactively are addressing
COVID-related issues that could impact our commercial launch, including by the development and
implementation of remote installation capability for our TRUFORMA instrument.
In summary, I believe that we now are well capitalized and well equipped to face the challenges ahead of
us as we move toward commercialization. These are exciting times. Stay safe and healthy, and I look
forward to delivering additional updates as we make further progress with our key milestones.
Robert Cohen