Sign up Australia
Proactive Investors - Run By Investors For Investors

Pressure BioSciences shares soar on shrinking debt and jump in first-quarter revenue

The life-sciences company saw a double-digit revenue increase for the period
test tubes
Pressure Biosciences' shares burst to the upside

Investors sent shares of Pressure BioSciences Inc (OTCMKTS:PBIO) soaring Tuesday after the life science group reported both a jump in first-quarter revenue thanks to an uptick in instrument sales, and said it has shrunk its debt.

By the afternoon, Pressure Bio's shares were up about 19% to US$3.90.

The company’s total revenue for the opening three months of 2018 rose 11% to US$610,774, up from US$551,357 in the year-ago quarter, thanks partly to booming sales of the company’s laboratory instruments which utilize pressure to control bio-molecular interactions.

Sales of instruments jumped 8% to $420,089 in the first quarter compared with $396,095 last year while sales of related consumables rose 18% to $74,698 compared with $63,264 for the same period in 2017.

Pressure BioSciences also successfully converted US$6.39mln worth of debentures held by 22 debt holders into series AA preferred stock, which means that it paid off 92% of its 2015/2016 outstanding debenture debt on its balance sheet as of the end of last March.

If the company successfully persuades more debt holders to follow suit and swap their debt for equity, CEO Richard Schumacher says it would increase the company’s chance of uplisting to a national exchange such as the Nasdaq later this year.“We are in discussions with other note-holders about the possible conversion of debt into equity in the near future,” said Schumacher in a statement. “If some of these additional loans are also converted into equity, the projected balance sheet on June 30, 2018, will be materially stronger than the balance sheet as of March 31, 2018."

READ: Pressure Biosciences chief bullish on sale of new PreEMT platform

As a result of its move to pay down its debt and the bolstering of its revenue, the company’s loss shrank 24% to US$1.64 in the first quarter, down from a loss of US$2.16 in the year-ago quarter.

Among wins in the quarter is the signing of the first contract to evaluate the ability of the company’s patented PreEMT platform to improve the manufacturing process for protein therapeutic drug candidates.

Pressure BioSciences also entered a two-year global co-marketing and distribution agreement with ISS Inc, a supplier of high-pressure optical cell systems used for laboratory analysis. Working together, the two companies plan to replace ISS’s manual pressure generator with Pressure BioSciences’ computer-controlled, automated instruments.

View full PBIO profile View Profile

Pressure BioSciences Inc Timeline

Related Articles

Widecells
September 28 2018
WideCells has undertaken a review of the business to deliver a strategy that will generate revenue, reduce overheads and achieve profitability
1511901712_biotech_517925923.jpg
November 29 2017
The company has developed a "unique and superior pressure" cycling technology (PCT), says Zacks.
Proton Therapy sign
October 10 2018
The broker says the cancer treatment developer could potentially take the entire share of the growth market from ageing cyclotron companies

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use