Does this company actually make a profit? Can anyone answer this? Thanks.
I e-mailed them asking how they are paying down debt. They replied by saying debt was being paid via revenue generated by normal business activities and stock. One can argue dilution is a bad thing. One can argue debt is worse.
Looking at the potential for generating revenue after the new facility is complete helps ease the pain of dilution. At least the dilution here is constructive. Face facts, all company's dilute. Even big board company's dilute via secondary's and stock options. Look how badly the banks diluted this past year. I remember many company's announcing dilution only to have their shares soar upward on the news. Why did that happen? It happened because dilution was better than debt. Dilution allowed the company's to survive and prosper.
That is what is happening here. The company is paying down debt and fortifying it's future. When the new facility is up and running, profitability will come. Their labor will be low and profits will be high. Once a mother stores the stem cells, nothing else labor wise needs to be done to generate almost free profit at that point from annual fees. Only normal overhead will be involved.
I don't like the dilution, but I can live with it while the storage facility is being readied. At least this company can be verified, unlike many other BB and pink sheet company's.
AI
