Capital Raise is a Good Sign!
PROF had about 3 years of expenses on the balance sheet. They had $60M and have been losing $20M per year. This new capital raise, even at a price that was lower than expected for unknown reasons, is a clear sign they are ready to accelerate the launch. It's about $40M additional capital, a huge percent increase.
It's a little odd that the price was lower than market. I don't know a lot about the micro cap norms, this is the only micro cap I am following. It makes it seem like the capital raise was not done "opportunistically" just because they could. The trading volume is so low, there is no way to get that on the open market, it would take too long.
The other piece is, this raise was probably pre-arranged. It's only open for a week.
That leads me to believe they are doing this strategically based on a need for capital. Why? It seems reasonable this is for the US launch.
The business model for this tech is a little expensive for clinics and Dr's to shell out for the MRI, training, and Tulsa-Pro. MRI alone is about $250-300k, so with installation and probably a dedicated medical office space spinning up a Tulsa-Pro might cost $500k.
They have made it more attractive by enabling a lease program. The capital might be to purchase MRI's and enable leases. Tack on Sales and Marketing expense. Just some envelope math for 20 machines and double the cost for S&M and you are still at only $12M. (300k*20*2) If we do some optimistic math, 20 this year, 40 next gets you to $36M. Now we are getting close. So if it's a capital raise for two years it's a doubling of growth over projected 20 units.
The bad news here is the losses will be steep as they buy machines and get little revenue during the ramp of usage and training.
All this needs to have people willing to pay for the treatment out of pocket unless insurance comes through. There will have to be some very good news to support the stock price if losses go from $20M to 40M per year.