Had a look at ECQ/Cynata. Don't claim to understand Cynata's ADULT stem sell technology fully ,but it seems to work in animal trials. # Huge market if successful...Diabetics , GVH (Graft vs host reaction in organ transplants where the vessels are 1st to suffer)....Simply a limb or a life saving "off the shelf" treatment for a vast number of patients. # Cheap acquisition of Cynata...Around $1m for 33% (already paid) + 200m shares in 18 months....Dirt cheap. # Funding Cynata is not clear at this stage. # ECQ is run by a very frugal crew...Their cash burn is around $200Ks/quarter....Not expensive to feed. # Biodegradable products are on the way to be licensed out ,cutting costs further & probably generating some income. # fully diluted MC @ 0.028 is around $29m...looks "expensive" 590m FPO. 235m 2014 0.01 options. 200m Cynata. 10m 0.02 unlisted options. Much optimism built in the CP....I like this fact....Don't like "cheap" discounted stocks....they are usually discounted for a good reason. # Not quite sure why the options are not commanding a healthy premium...A negative in my view. # Technically awesome....Persistent heavy volume for a few weeks (this spells Rerating ,with a Capital R)...OBV at its highest point ever...ST target 5c on a close above 3c.....but worth holding even a small parcel for the blue sky potential.
ECQ Price at posting:
2.8¢ Sentiment: None Disclosure: Held
