Full DD on NASDAQ: CLRX
Good DD on (NASDAQ: CLRX) Large merger LOI
Update CollabRX, Inc. (NASDAQ: CLRX) in our opinion has a whole lot to gain with the acquisition/merger of Medytox (OTCQB: MMMS) here’s why.
Medytox total shareholders’ equity of $38M vs. CollabRX at $3.6M (Remember the NASDAQ letter was due to shareholders equity in CLRX dropping below 2.5M)
Medytox revenue (NET) $18.2M for the 3 months ending September 30th , 2014 vs. CollabRX $158K
Medytox (Gross) Revenue $22.8M for the 3 months ending September 30th, 2014 vs. CollabRX 176K
Taglich Brothers recently issued a $7.00/share price target for CLRX and then downgraded still with a “buy” to $2.00/share based on financing arrangements and potential dilution this summer. This came in before the announcement of the LOI for merger with MMMS. In our opinion in light of this new information we could see a target much, much higher than the original.
The Team
original report
You asked for an exciting play with potential for BIG near term gains and we plan to deliver today! Let’s get right to it.
CollabRX, Inc. (NASDAQ: CLRX) named one of the top four NASDAQ stocks In the Healthcare Information Services Industry with the Highest EPS Growth Forecast for Next Year by Benzinga.com. Benzinga full report: http://www.benzinga.com/trading-ideas/15/01/5...ustry-with
The most recent price of CollabRx Inc (NASDAQ:CLRX) is now at a discount of -72.89% to the 12-month high of $4.02 hit on Jan 14, 2014.
CollabRx, Inc. (NASDAQ: CLRX) earnings per share growth forecast for the next year is 62.30%. CollabRx's trailing-twelve-month gross margin is 50%.
Recent LOI for Merger with Medytox announced on January 22nd, 2015
LOI for merger with Medytox, here is a quote directly from an 8-K filing on January 16th, 2015 and part of the reason we believe that this merger will happen.
“Pursuant to the Letter of Intent, Medytox has agreed to advance certain funding to CollabRx in contemplation of the business combination. On January 16, 2015, CollabRx entered into a Loan and Security Agreement (the “Loan Agreement”) with Medytox, pursuant to which it is contemplated that Medytox will loan up to $2,395,644 to the Company. Medytox is a holding company that owns and operates businesses in the medical services sector. Its principal line of business is clinical laboratory blood and urine testing services, with a particular emphasis in the provision of urine drug toxicology and comprehensive pain medication monitoring programs to physicians, clinics and rehabilitation facilities in the United States.”
Link to full 8-K filing: http://www.otcmarkets.com/edgar/GetFilingHtml...D=10420489
We might also note a slew of Form 4’s filed dating back to December12th, 2014 showing insider buy’s in CLRX stock.
Let’s talk about the elephant in the room. The risk and warnings from NASDAQ recently in regards to listing requirements.
SAN FRANCISCO, Dec. 3, 2014 (GLOBE NEWSWIRE) -- CollabRx, Inc. (Nasdaq:CLRX) (herein "CLRX" or "the Company" , announced today that it received a letter from the NASDAQ OMX GROUP ("Nasdaq" stating that the Company is in non-compliance with the Nasdaq Capital Market's Listing Rule 5550(b)(1). That rule requires the Company to maintain a minimum stockholder's equity of $2,500,000 for continued listing.
The Company has 45 days to prepare and submit a plan to Nasdaq to regain compliance. If the plan is accepted, Nasdaq may grant the Company an extension of up to 180 days from November 20, 2014 to evidence compliance. This announcement is being made in compliance with Listing Rule 5810(b), which requires prompt disclosure of receipt of a noncompliance letter. The Nasdaq notification letter does not result in the immediate delisting of the Company's common stock, and the stock will continue to trade uninterrupted on the Nasdaq Capital Market under the symbol "CLRX."
CollabRx management intends to resolve the situation to allow for continued listing on the Nasdaq Capital Market.
Full PR: http:// http://globenewswire.com/news-release/2014/12...0-b-1.html
SAN FRANCISCO, Jan 20, 2015 (GLOBE NEWSWIRE via COMTEX) -- CollabRx, Inc. (Nasdaq:CLRX) ("the Company" announced that it received a letter from the NASDAQ Listing Qualifications Staff indicating that, unless the Company timely requests a hearing before the NASDAQ Listing Qualifications Panel (the "Panel" , the Company's securities would be delisted from The NASDAQ Capital Market due to the Company's non-compliance with NASDAQ Listing Rule 5550(b)(1) (the "Rule" . The Company intends to timely request a hearing before the Panel, at which hearing the Company will present its plan to evidence compliance with the Rule, which requires the Company to maintain a minimum of $2.5 million in stockholders' equity. The Company's common stock will continue to trade on The NASDAQ Capital Market under the symbol "CLRX" pending completion of the hearing process and the expiration of any extension period granted by the Panel.
Full PR: http://globenewswire.com/news-release/2015/01...aring.html
So, as you can see this delisting notice does not appear to be an immediate threat to the securities and has very good odds of being resolved prior to the May 2015 deadline. Furthermore, there is no doubt that this has contributed to the decline in the securities.
Updated report in regards to the potential merger entity Medytox coming soon.
The Team
“Small-cap stocks are like a deserted lagoon lately. Too insignificant to have drawn Wall Street’s attention, many small companies are pearls of potential profit, waiting for the right catalyst to value them into the limelight. Although there’s plenty of risk involved, the rewards can be nearly limitless.”
Good DD on (NASDAQ: CLRX) Large merger LOI
Update CollabRX, Inc. (NASDAQ: CLRX) in our opinion has a whole lot to gain with the acquisition/merger of Medytox (OTCQB: MMMS) here’s why.
Medytox total shareholders’ equity of $38M vs. CollabRX at $3.6M (Remember the NASDAQ letter was due to shareholders equity in CLRX dropping below 2.5M)
Medytox revenue (NET) $18.2M for the 3 months ending September 30th , 2014 vs. CollabRX $158K
Medytox (Gross) Revenue $22.8M for the 3 months ending September 30th, 2014 vs. CollabRX 176K
Taglich Brothers recently issued a $7.00/share price target for CLRX and then downgraded still with a “buy” to $2.00/share based on financing arrangements and potential dilution this summer. This came in before the announcement of the LOI for merger with MMMS. In our opinion in light of this new information we could see a target much, much higher than the original.
The Team
original report
You asked for an exciting play with potential for BIG near term gains and we plan to deliver today! Let’s get right to it.
CollabRX, Inc. (NASDAQ: CLRX) named one of the top four NASDAQ stocks In the Healthcare Information Services Industry with the Highest EPS Growth Forecast for Next Year by Benzinga.com. Benzinga full report: http://www.benzinga.com/trading-ideas/15/01/5...ustry-with
The most recent price of CollabRx Inc (NASDAQ:CLRX) is now at a discount of -72.89% to the 12-month high of $4.02 hit on Jan 14, 2014.
CollabRx, Inc. (NASDAQ: CLRX) earnings per share growth forecast for the next year is 62.30%. CollabRx's trailing-twelve-month gross margin is 50%.
Recent LOI for Merger with Medytox announced on January 22nd, 2015
LOI for merger with Medytox, here is a quote directly from an 8-K filing on January 16th, 2015 and part of the reason we believe that this merger will happen.
“Pursuant to the Letter of Intent, Medytox has agreed to advance certain funding to CollabRx in contemplation of the business combination. On January 16, 2015, CollabRx entered into a Loan and Security Agreement (the “Loan Agreement”) with Medytox, pursuant to which it is contemplated that Medytox will loan up to $2,395,644 to the Company. Medytox is a holding company that owns and operates businesses in the medical services sector. Its principal line of business is clinical laboratory blood and urine testing services, with a particular emphasis in the provision of urine drug toxicology and comprehensive pain medication monitoring programs to physicians, clinics and rehabilitation facilities in the United States.”
Link to full 8-K filing: http://www.otcmarkets.com/edgar/GetFilingHtml...D=10420489
We might also note a slew of Form 4’s filed dating back to December12th, 2014 showing insider buy’s in CLRX stock.
Let’s talk about the elephant in the room. The risk and warnings from NASDAQ recently in regards to listing requirements.
SAN FRANCISCO, Dec. 3, 2014 (GLOBE NEWSWIRE) -- CollabRx, Inc. (Nasdaq:CLRX) (herein "CLRX" or "the Company" , announced today that it received a letter from the NASDAQ OMX GROUP ("Nasdaq" stating that the Company is in non-compliance with the Nasdaq Capital Market's Listing Rule 5550(b)(1). That rule requires the Company to maintain a minimum stockholder's equity of $2,500,000 for continued listing.
The Company has 45 days to prepare and submit a plan to Nasdaq to regain compliance. If the plan is accepted, Nasdaq may grant the Company an extension of up to 180 days from November 20, 2014 to evidence compliance. This announcement is being made in compliance with Listing Rule 5810(b), which requires prompt disclosure of receipt of a noncompliance letter. The Nasdaq notification letter does not result in the immediate delisting of the Company's common stock, and the stock will continue to trade uninterrupted on the Nasdaq Capital Market under the symbol "CLRX."
CollabRx management intends to resolve the situation to allow for continued listing on the Nasdaq Capital Market.
Full PR: http:// http://globenewswire.com/news-release/2014/12...0-b-1.html
SAN FRANCISCO, Jan 20, 2015 (GLOBE NEWSWIRE via COMTEX) -- CollabRx, Inc. (Nasdaq:CLRX) ("the Company" announced that it received a letter from the NASDAQ Listing Qualifications Staff indicating that, unless the Company timely requests a hearing before the NASDAQ Listing Qualifications Panel (the "Panel" , the Company's securities would be delisted from The NASDAQ Capital Market due to the Company's non-compliance with NASDAQ Listing Rule 5550(b)(1) (the "Rule" . The Company intends to timely request a hearing before the Panel, at which hearing the Company will present its plan to evidence compliance with the Rule, which requires the Company to maintain a minimum of $2.5 million in stockholders' equity. The Company's common stock will continue to trade on The NASDAQ Capital Market under the symbol "CLRX" pending completion of the hearing process and the expiration of any extension period granted by the Panel.
Full PR: http://globenewswire.com/news-release/2015/01...aring.html
So, as you can see this delisting notice does not appear to be an immediate threat to the securities and has very good odds of being resolved prior to the May 2015 deadline. Furthermore, there is no doubt that this has contributed to the decline in the securities.
Updated report in regards to the potential merger entity Medytox coming soon.
The Team
“Small-cap stocks are like a deserted lagoon lately. Too insignificant to have drawn Wall Street’s attention, many small companies are pearls of potential profit, waiting for the right catalyst to value them into the limelight. Although there’s plenty of risk involved, the rewards can be nearly limitless.”
