Reverse Mergers & Low Float Plays

[Potse]

HLTT(.299)...Q4 revenue, acquisition, new CEO, uplisting......

I would be somewhat surprised if HLTT's Q4 revenue was not fairly decent/sizable. The wound care business showed about a $351K loss in Q3, which means operating expenses for that business were about $1.075M in the third quarter. It is very possible those operating expenses can be reduced in Q4, but I think the revenue number will still need to be reasonably high for the business to reach profitability.

Twice in the Q3 report, the company mentions an expectation of the wound care business reaching a profitable status in the near-term......

I bought some more shares at the sub-25 cent level last week for a possible short-term trade opportunity. Based on the January 6 letter to shareholders, I am anticipating there will be an increase in corporate activity (both operational and investor relations related) during 2023. The acquisition of World Reach Holdings and the appointment of new CEO Jelena Olmstead is expected to be completed on January 27. The website for the wound care business started to come online around the end of December (still in the process of full-development, but the management section is available now).......

http://healthtechwoundcare.com/about-us/

Based on the wording in the shareholder letter it appears that 2022 Q4 revenue for the wound care business was at a minimum over $2.3M (compared to $766K in 2022 Q3), and there is an expectation that revenue for that business will continue growing in 2023. The uplisting process to one of the higher exchanges is expected to start after HLTT files its 2022 10-K.

Update on Varian Biopharma (in which HLTT has an ownership position): The deal to bring Varian public via the SPK SPAC was terminated in late December. There could be no connection between the termination announcement and HLTT revealing it plans to uplist its stock, but the timing is somewhat interesting to me. As per the HLTT wound care website, Paul Mann continues to be Chairman of both HLTT and Varian.

Some items of interest from the shareholder letter......

1)

In the Spring of 2022, we completed the licensing of our initial wound care product line and appointed World Reach Health, LLC (“WRH”), an experienced distributor of biomedical products (more on WRH below), to develop a market for our wound care products. That market produced its first sales in September 2022, and we reported net revenue of $776,221 for that month. We have recorded increased wound care revenue for each month in the fourth quarter of 2022, and we expect wound care revenue to continue to grow during 2023.

2)

WRH has ongoing contracts to distribute a number of products. These include Endurakit, a non-opiate surgical block for which WRH is one of four national distributors. WRH is the exclusive distributor for MY GEL, which is a neuropathy pain gel. WRH is also an approved distributor for some of the leading COVID-19 diagnostic tests, along with other diagnostic products, which are manufactured by AccessBio and Phase Scientific. WRH is a distributor of the Postday One-Step emergency contraceptive, and WRH is also an authorized distributor of Better Air, which provides organic probiotic air purification solutions. In this fashion, we expect WRH to provide a gateway to market for the products developed by HLTT subsidiaries as well as a source of additions to HLTT’s product list.

3)

The acquisition of WRH later this month will provide HLTT a soup-to-nuts integration of the facilities required to develop biotechnical products and bring them to market. The only external input necessary for significant growth will be funding. Towards that end, management is in discussions with several broker-dealers with a view toward one or more of them sponsoring the uplist of HLTT’s shares to the NYSE American or NASDAQ. We plan to initiate the uplist process, soon after we file our 10-K Annual Report for 2022.

In sum, management expects 2023 to be HLTT‘s breakout year. We thank you for the support and dedication you have shown the company since 2020. We pledge to work tirelessly to assure that your confidence will be well rewarded.

https://www.otcmarkets.com/filing/html?id=16302923&guid=3Is-k6RJAZjldth#ex991_htm