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WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) – the “Berkshire Hathaway of Tech-Enabled Healthcare” – Could Be the Next Giant Healthtech Conglomerate

When Warren Buffett first bought Berkshire Hathaway in 1962, it was nothing more than a struggling textile mill.

Today, it is a $600+ billion conglomerate juggernaut,[1] owning businesses ranging from insurance and utilities to railroads and chemicals.

Berkshire’s journey from humble mill to giant conglomerate is incredible. Unfortunately, the Berkshire of today is far too huge to generate the kind of returns that can truly change individual investors’ lives.

It has become “just another” blue-chip stock – and one that some think has come in late or missed the boat entirely on many disruptive technologies.

But there’s one fast-growing company that is in a position to have a profound impact on investor returns. It has learned from companies like Berkshire, incorporating what is arguably Berkshire’s greatest strength – its operating structure…

Where the holding company acts like a giant institutional investor, seeking out operating companies to invest in that can generate the highest ROI…

And letting these subsidiaries operate independently with minimal interference, while the holding company does what it does best – efficiently allocating capital.

But this company has learned from Berkshire’s mistakes – and even improved on its operating model.

What’s this company, you may ask? None other than WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF).

WELL firmly understands that technology is the future, and is committed to fully capitalizing on this wave…

Plus, it is only focused on acquiring companies within the multi-trillion-dollar healthcare sector, which allows it to generate powerful value-boosting synergies among its acquisitions (something that Berkshire does not focus on due to its divergent scope of investments).

And its biggest investor? Multi-billionaire Sir Li Ka-Shing – ranked the 43rd richest person in the world with a networth of $34.6 billion[2] and nicknamed “Superman Li” for his business prowess.

That’s why it could be no exaggeration to say that…

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is the “Berkshire Hathaway of Tech-Enabled Healthcare” – and the Company Could Be on the Cusp of a Major Growth Spurt

Much like Berkshire started in the textile business, WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) began as a humble medical clinic operator.

And in just a few short years, it has grown to become a billion-dollar omni-channel company with 7 different healthcare business lines, including health clinics, electronic medical records (EMR), telehealth, digital apps, billing and cybersecurity…

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) owns 27 primary healthcare clinics in North America – the largest network in BC and the third-largest in Canada…

It operates a multi-national EMR business including its OSCAR Pro EMR asset, which is the third-largest EMR service provider in Canada (a $26.1 billion global market that’s expected to hit $39.4 billion within 5 years[3])…

Its leading Canadian telehealth service conducts thousands of patient visits daily using its software.

All this was done through disciplined and accretive acquisitions, with shareholder dilution always being carefully managed.

And although its stock has shot up by 313% since 2020[4]…

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Remains Substantially Undervalued Compared to Its Peers…

Even though…

Its EBITDA already turned positive in the fourth quarter of 2020, with a 53% revenue growth for the year…

It’s just completed a major acquisition that would add approximately C$175 million in revenues and C$72 million in EBITDA to its earnings…

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) has 10 signed letters of intent that could add another C$100+ million to its annual revenues by the end of 2021…

And it’s planning a US IPO by the end of the year.

CompanySymbolMarket Cap (USD)*Share Price (USD)*Revenue  (USD)EV/Sales
WELL HealthTSX:WELL OTC:WLYYF$991M$6.05$220M+**[5][6]5x
Veeva SystemsNYSE:VEEV$40.8B$268.29$1.1B[7]37.1x
Teladoc HealthNYSE:TDOC$29.0B$188.11$1.1B[8]26.6x
Oak Street HealthNYSE:OSH$14.1B$58.57$883M[9]16.0x
American WellNYSE:AMWL$4.1B$17.23$245M[10]16.7x
1Life HealthcareNASDAQ:ONEM$5.8B$42.49$380M[11]15.3x
Hims and HersNYSE:HIMS$2.3B$12.29$149M[12]15.7x

*Share Price and Market cap taken from Yahoo Finance on April 14, 2021

**This revenue figure is inclusive of the company’s recent (completed) acquisition of CRH Medical, estimated to be on a runrate basis based on consensus estimates.

When compared to others in the industry, WELL’s peer group trades at 10x to 20x revenue multiples, while WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) trades at an EV to sales multiple of just 5x.

This means that although the company is far from being a risky early-stage startup company…

It still has plenty of room to grow, particularly as it continues to ramp up its acquisitions…

Which could place WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) in the perfect risk-reward “sweet spot” for investors…

But this window of opportunity may be closing, as analysts expect its valuations to increase to a range more in line with its peers once the US IPO happens.

8 Reasons WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Could Be the Healthtech Play of the Future

  1. Multi-channel Capability: With healthcare clinics, EMR services, telehealth offerings, digital apps, and more, the company is truly multi-channel, multi-service, and omni-channel in nature – able to offer both in-person and digital solutions to patients, healthcare professionals, and clinics. This allows the company to not only benefit from all aspects of the healthcare industry, but also provides defensive diversification qualities.
  1. Track Record of Accretive Acquisitions: WELL Health (TSX: WELL – OTC: WLYYF) has a solid track record of buying profit-generating companies that can continually add value to its bottom line – all with carefully-controlled shareholder dilution. For instance, due to its acquisition of CRH Health, it is expected to experience 120% accretion to revenue and 800% accretion to EBITDA on a per share basis. However, shareholder dilution was limited to a mere 17%.
  1. Value-Boosting Synergies Within Business Lines: Post-acquisition, the company also has multiple opportunities to add further value to its acquisitions via internal synergies within its business lines. For example, the company is planning to cross-sell its digital services to CRH Health’s network of over 3,000 Gastroenterologist physicians, which are currently generally digitally underserved.
  1. Rapid Acquisition and Growth Strategy: Within the first three months of 2021 alone, WELL Health (TSX: WELL – OTC: WLYYF) has already announced six acquisitions – one of which is a major US player. The company also has another 10 signed letters of intent that could add C$100+ million to annual revenues. Further, recent acquisition CRH Medical is itself a proven M&A player with a track record of 32 acquisitions and over 500 active deal targets.
  1. Strong Investor Base: Multi-billionaire Li Ka-shing is a strategic investor in the company, among other institutional investors such as Manulife, CI Investments, Sentry Investments, Iconiq Capital, Fiera Capital, and the PenderFund Capital. Li Ka-shing and his partner personally led a C$302.5 million equity raise for the CRH Medical acquisition with their own investment of C$100M at an unprecedented 25% premium to market (based on the 5 day VWAP before announcement) – the additional C$202.5M came from the other institutional investors at the same premium.
  1. Well Funded With a Strong Balance Sheet: WELL Health (TSX: WELL – OTC: WLYYF) boasts C$87 million in cash as at end-2020 – with zero debt. Only recently did the company take on some debt as part of the CRH Medical acquisition. However, even said debt facility was obtained at highly cost-effective rates of between 1.5% to 3.25% depending on leverage ratios.
  1. Future US IPO Listing: The company’s targeted US IPO in late 2021 will provide an additional cash infusion that it can use to turbocharge its acquisition strategy. Further, analysts also expect a US listing to push the company’s valuation upwards to a level more in line with its peers. WELL is grossly undervalued when compared against US comps.
  1. Proven Management Team with Skin in the Game: WELL Health’s (TSX: WELL – OTC: WLYYF) management team are all veterans of Tio Networks, a multichannel bill payment processor that was acquired by PayPal for C$304 million in 2017.[13] They’re also all heavily invested in the company, with the CEO personally investing approximately C$6 million in company stock – and never having sold a single share or taken a dollar of cash as salary thus far.

With all these factors in its favor, WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is…

Well-Positioned to Capitalize on the Massive Digital Transformation Wave Sweeping Through the Healthcare Industry

The health crisis has accelerated digital transformation in all areas, and healthcare is no exception.

For proof of this, look no further than telehealth.

In 2019, research firm Fortune Business Insights[14] estimated the size of the global telehealth market at “only” $61.4 billion…

By 2027, it expects that number to hit $559.5 billion, a compound annual growth rate of over 25%. That’s an astounding growth rate that shows just how big the digital transformation opportunity in healthcare is.

Because although telehealth could soon be worth hundreds of billions, it’s still just one part of the larger digital transformation opportunity…

And WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is strongly positioned to benefit from all aspects of this opportunity thanks to its multi-pronged approach to healthcare tech.

Beyond that, each new acquisition generates incremental opportunities for its existing subsidiaries, meaning the whole is truly greater than the sum of its parts.

Just like how…

WELL’s (TSX: WELL – OTC: WLYYF) Recent Acquisition of CRH Medical Could Soon Turn the Company into a North American Digital Health Powerhouse

CRH Medical is a major player in the US gastroenterology (GI) market, with 72 GI ambulatory service centers, 411 GI providers, and over 3,200 GI providers trained to use its products and services.

This alone is already enough to generate over C$175 million in annual revenues, with an incredible 26% free cash flow margin.

Yet as investment bank Eight Capital said in a recent research report[15]…

“CRH’s +72 clinic footprint remains digitally underpenetrated, providing a greenfield opportunity for cross-sell. We expect the introduction of a telehealth offering to optimize consumer reach and patient in- and outflow. Plans for the development of a GI-focused app will expand CRH’s reach, increase traffic to clinics, and push product sales.”

In other words, the additional C$175+ million in revenues – not to mention C$72 million in EBITDA and C$45 million in free cash flow – is just the beginning of CRH Medical’s potential…

Because once WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) integrates its digital health offerings with CRH Medical, it could be well on its way toward becoming the next North American digital health powerhouse.

Not to mention that CRH Medical is itself planning to swiftly expand its network and offerings through acquisitions (it has 500 active deal targets in its pipeline)…

Meaning the cross-sell synergies will have a powerful multiplier effect even years down the line.

The best part? All this was done with only a 17% shareholder dilution for Well Health’s (TSX: WELL – OTC: WLYYF) shareholders.

It’s all thanks to the support of the company’s strong investor base, who were all too happy to put in their money at a 25% market premium (investors in this round included every member of its board and most of its management team, including the CEO and CFO of the company)…

Because they realized that the CRH Medical acquisition puts WELL Health in a great position for a US listing…

A powerful catalyst that is widely expected to drive its valuations up toward the ranges offered by its peers.

But while much focus has been (rightfully) given toward the company’s CRH Medical acquisition…

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Has Been Steadily Conquering the Digital Healthcare Industry, One Acquisition at a Time

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is a diversified healthtech conglomerate that is rapidly making inroads in all aspects of digital health…

Just look at all of its businesses that it already has:

Like the $26.1 billion EMR market, an industry that is quickly growing as clinics scramble to digitize…

Because EMR is the “enterprise backbone” of a clinic, a system that manages everything from the backend database to the frontend point of sale…

Meaning clinics are unlikely to be able to remain competitive in the modern healthcare market for long without an EMR system.

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is already the third-largest player in Canada for EMR…

Its main EMR offering – OSCAR Pro – is also open source, giving it greater versatility compared to its competitors. It has been a market share taker in Canada because of its strong interoperability with a large community of third-party app developers.

The company is also quickly adding to its EMR business line with other acquisitions, such as IntraHealth, an enterprise class EMR vendor with customers in Canada, Australia and New Zealand.

Meanwhile, it’s also transitioning clinics owned by newly-acquired subsidiaries over to its EMR platform – showing just how easily the company can generate internal synergies.

Another example is its acquisition of Silicon Valley – and Y Combinator-backed – company Circle Medical.

WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) completed a majority stake investment in Circle Medical in November 2020.

Yet in the past four months, Circle Medical’s revenues have nearly doubled…

This highlights Well Health’s (TSX: WELL – OTC: WLYYF) specialty – strategically allocating capital to undervalued companies that are usually on the cusp of greater growth, which makes the company…

A Fast-Growing, Diversified, and Undervalued Healthtech Play With Multiple Catalysts on the Horizon

Investors looking to invest in the digital transformation that is happening in the trillion-dollar healthcare industry face a common dilemma…

The industry is so vast, with so many different sub-sectors (both B2B and B2C) that they may not even know where to start.

Even if they did know about the various sub-sectors, they would need to invest in many different companies to have a truly holistic and diversified exposure…

Or, they could choose to invest in the large multi-billion dollar health conglomerates – where most of the major returns have already been snatched up years ago by early investors.

WELL Health Technologies Corp. (TSX:WELL) could be the answer to that dilemma…

It offers investors:

  • Diversified exposure to the entire tech-enabled healthcare market with a single investment…
  • Strong near-term growth opportunities thanks to multiple catalysts on the horizon – such as its expansion into the US from its CRH Medical acquisition plus its planned US IPO, as well as its 10 pending signed LOIs…
  • Long-term value from disciplined and accretive acquisitions that also benefit from internal synergies…

All at a price that analysts consider substantially undervalued.

So, instead of spending all that time and effort untangling the complex web that is healthtech, just to find a company that may or may not pan out…

Why not look at a company whose sole specialty is finding undervalued profit-generating companies across the entire healthtech spectrum, and then consolidating and modernizing them to create even more value?

In other words, why not let WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) do the work for you?

There’s a reason the company was recognized as a TSX Venture 50 company for three years in a row[16]…

Plus, its management team’s track record speaks for itself.

WELL Health Technologies Corp.’s (TSX: WELL – OTC: WLYYF) Has a Management Team Consisting of Nothing but Proven Veterans

Hamed Shahbazi – Chairman & CEO

With over 20 years as a technology-focused operator, Shahbazi has a razor-sharp understanding of the intricacies of identifying opportunities and generating value in the sector. He was the founder of TIO Networks, originally a kiosk solution provider before Shahbazi transitioned it into a multichannel payment solution provider specializing in bill payments and other financial services. As a result, the company was acquired by PayPal in 2017 for C$304 million.

Shahbazi has extensive experience in strategic mergers, acquisitions, and divestitures, both as an operator and board member, with more than a dozen successful transactions. He is also the Lead Independent Director for mediatech company BBTV Corp, as well as the owner and operator of Impactreneur Capital Corp, which has over a dozen investments in leading digital content, ehealth, insurtech, and other technology inspired companies.

Dr. Michael Frankel – Chief Medical Officer

Dr. Frankel has 29 years of experience as a general practitioner in the Lower Mainland, giving him a wealth of experience in the medical industry. But more than just being a doctor, Dr. Frankel is also a healthcare investor and businessman, owning and operating a portfolio of successful primary healthcare facilities. This gives him a deep understanding of what healthcare facilities are lacking and how they can be improved – a crucial piece of WELL Health’s (TSX:WELL) strategy.

Eva Fong, FCCA, CPA, CGA – Chief Financial Officer

As the VP in charge of corporate strategy and M&A at TIO Networks, Fong intimately understands the full lifecycle of M&A transactions, from prospecting to integration and regulatory compliance management.

Her 25 years of experience includes Fortune 500 public company management, M&A, corporate strategy development, risk and compliance, and finance and business shared services programs. She’s held senior leadership positions in various high-tech sectors including PayPal, TIO Networks, SAP, and 360networks, where she led business units and built best-in-class corporate culture.

Amir Javidan – Chief Operations Officer

In his over 15 years of experience as a technology and operations executive, Javidan has been involved in two successful exits. Most recently, he was the SVP of Operations for TIO Networks, overseeing its C$304 million buyout by PayPal. Before that, he was at Avigilon, an integrated cloud and AI-powered solutions company, where he helped scale the business from a “stealth mode” startup to a public company worth over C$1 billion. He also helped take its revenue to over C$100M in five years.

RECAP: 10 Reasons Investors Should Seriously Consider Adding WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) to Their Portfolios

  1. It is a multi-channel, multi-product healthtech conglomerate that has the capability to benefit from multiple areas of the industry
  1. A proven track record of accretive acquisitions of profit-generating businesses – all with carefully controlled dilution
  1. Internal synergies from cross-selling can further boost the value of its acquisitions
  1. Rapid acquisition and growth strategy gives it strong potential in a lucrative industry
  1. Significantly undervalued compared to its peers; for example, its peer group trades at 10x to 20x revenue multiples, while WELL trades at 5x EV to Sales multiple.
  1. Planned US IPO listing is widely expected to bring its valuations to a range more in line with its peers
  1. Strong investor base including multi-billionaire Li Ka Shing plus other institutional investors, all of whom have shown willingness to pump in capital to support acquisitions
  1. Proven management team with skin in the game that have executed successful M&As and exits
  1. Multiple business lines within the healthtech industry provides defensiveness plus a hybrid physical-virtual competitive moat
  1.  Already a significant player within multiple lucrative business lines (such as EMR and telehealth) but with plenty of room to grow remaining

SOURCES:

[1] https://finance.yahoo.com/quote/BRK-A?p=BRK-A&.tsrc=fin-srch (15 Apr 2021)

[2] https://www.forbes.com/profile/li-ka-shing/?sh=38d286ff523f

[3] https://www.pharmiweb.com/press-release/2020-12-15/electronic-medical-records-emr-market-2020-size-and-growth-factors-study-and-estimate-4medica-a

[4] https://finance.yahoo.com/quote/WELL.TO?p=WELL.TO&.tsrc=fin-srch (from Jan 1 2020 to Apr 15 2021)

[5] https://www.newswire.ca/news-releases/well-health-achieves-record-revenue-and-positive-adjusted-ebitda-in-q4-2020-driven-by-400-yoy-growth-of-software-and-services-revenue-861878058.html

[6] https://www.newswire.ca/news-releases/crh-medical-corporation-announces-2020-fourth-quarter-and-year-end-results-825729519.html

[7] https://ir.veeva.com/investors/news-and-events/latest-news/press-release-details/2020/Veeva-Announces-Fiscal-2020-Fourth-Quarter-and-Fiscal-Year-2020-Results/default.aspx

[8] https://www.mobihealthnews.com/news/teladoc-health-outlines-year-knockout-growth-q4-2020-earnings-call

[9] https://www.businesswire.com/news/home/20210309005989/en/Oak-Street-Health-Reports-Fourth-Quarter-2020-Financial-Results

[10] https://www.fool.com/earnings/call-transcripts/2021/03/25/american-well-corporation-amwl-q4-2020-earnings-ca/

[11] https://www.globenewswire.com/news-release/2021/02/25/2182928/0/en/One-Medical-Announces-Results-for-Fourth-Quarter-and-Full-Year-2020.html

[12] https://www.businesswire.com/news/home/20210318005928/en/Hims-Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2020-Financial-Results

[13] https://www.businesswire.com/news/home/20170718005456/en/PayPal-Completes-Acquisition-of-TIO-Networks

[14] https://www.fortunebusinessinsights.com/industry-reports/telehealth-market-101065

[15] Title “WELL accelerates scale in NA with CRH; US IPO on deck”, dated Feb 18, 2021

[16] https://www.well.company/for-investors/news-releases/well-health-recognized-as-a-tsx-venture-50–company-for-the-third-year-in-a-row

DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Biotech Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for WELL Health Technologies Corp. advertising and digital media from Market Jar Media Inc. There may be 3rd parties who may have shares of WELL Health Technologies Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ does not own any shares of WELL Health Technologies Corp. MIQ will not buy or sell shares of WELL Health Technologies Corp. for a minimum of 72 hours from the publication date on this website (May 5, 2021), but reserve the right to buy and sell, and will buy and sell shares of WELL Health Technologies Corp. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Administrator by — November 23, 2024 By News Administrator in Uncategorized

There are two types of healthcare companies that stand out as the biggest potential winners of 2021: companies that are able to produce a widely used vaccine or treatment for certain virus’, and resilient firms that held tough through the worst of 2020 and can benefit from a gradual return to normalcy.

Healthcare technology, commonly referred to as “healthtech,” refers to the use of technologies developed for the purpose of improving any and all aspects of the healthcare system. From telehealth to robotic-assisted surgery, our guide will walk you through what it is and how it’s being used. 

Healthcare technology refers to any IT tools or software designed to boost hospital and administrative productivity, give new insights into medicines and treatments, or improve the overall quality of care provided. Today’s healthcare industry is a $2 trillion behemoth at a crossroads. Currently being weighed down by crushing costs and red tape, the industry is looking for ways to improve in nearly every imaginable area. That’s where healthtech comes in. Tech-infused tools are being integrated into every step of our healthcare experience to counteract two key trouble spots: quality and efficiency.

The way we purchase healthcare is becoming more accessible to a wider group of people through the insurance technology industry, sometimes called “insurtech.” Patient waiting times are declining and hospitals are more efficiently staffed thanks to artificial intelligence and predictive analytics. Even surgical procedures and recovery times are being reduced thanks to ultra-precise robots that assist in surgeries and make some procedures less evasive.

This is a very broad sector that can go in many directions, for more information on this sector please enter your email address in the box provided on this page and we will be more than happy to let you know when more information becomes available.

News Administrator by — November 23, 2024 By News Administrator in Uncategorized
The Best Way To Pick The Next Big Stock

When considering valuation metrics, price-to-earnings ratio has always been the obvious choice. This is because calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development, generating meager or no profits.

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, its price-to-sales could indicate the hidden strength of its business. This underrated ratio is also used to identify a recovery situation or ensure that a company’s growth is not overvalued.

A stock’s price-to-sales ratio reflects how much investors are paying for each dollar of revenues generated by a company.

If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that a stock with a price-to-sales below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.  

Thus, a stock with a lower price-to-sales ratio is a more suitable investment than a stock with a high price-to-sales ratio.

Price-to-sales is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.

However, one should keep in mind that a company with high debt and low price-to-sales is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance, rise in market cap and ultimately a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation cannot do the trick. One should also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.

To learn more about how to trade in a volatile market, please feel free to enter your email address below:

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Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Biotech Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Administrator by — November 23, 2024 By News Administrator in Uncategorized
QuestCap Inc. – The Social Impact Investment Company Targeting Pandemic Response Technologies and Therapies

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) is an investment issuer listed on the Canadian Securities Exchange dedicated to acquiring equity, debt, or other securities of publicly traded or private companies. It provides financing in exchange for pre-determined royalties or distributions, or for the acquisition of all or part of one or more businesses, portfolios, or other assets.

QuestCap bills itself as a social impact investment focused company.[1] “Impact investing” is a strategy through which investors aim to make a positive societal impact in addition to financial gains.

According to a report from the Global Impact Investing Network, published in April 2019, the global size of the impact investing market at that time exceeded half a trillion dollars.[2] More than half (58%) of the funds invested are from the United States and Canada.

Now, here’s where things get really interesting from an investment point of view:

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) is composed of three divisions: MedQuest, ClimateQuest, and TechQuest.[3] It is currently focused on developing MedQuest, which invests in near-market technology and therapies to combat the current global health crisis. Reports indicate that, as the pandemic stretches on, more funds will flow into the impact investing sector.[4] [5]

Through MedQuest, the company is targeting three aspects of the pandemic response: testing for the virus, assessing the evolution and biology of the pathogen to potentially source effective therapies, and regulating certain social institutions so as to expedite the post-crisis “restoration period.”[6]

Here are some investment highlights for QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1):

  1. Through a profit sharing agreement with More Than Just Rice Inc (“MTJR”), QuestCap will receive 40% of any profits earned by MTJR from IgG/IgM antibody test kit sales in North and South America.
  2. By acquiring 49% of Athletics and Health Solutions Inc., QuestCap will help implement the “Standard for Safe Sport” for the Division Mayor del Fútbol Colombiano. As a part of the program, QuestCap will earn profits by providing technical expertise and from the sale of MTJR’s tests.
  3. QuestCap will also receive royalties generated by any commercial product developed by Sinai Health Foundation related to the research done by the Lunenfeld-Tanenbaum Research Institute towards an alternate diagnostic test for SARS-CoV-2.
  4. In exchange for a $1 million investment, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive a 3.5% royalty on any revenues earned from the commercialization of the research done by the Sunnybrook Translational Research Group for Emerging and Respiratory Viruses (SERV).
  5. QuestCap has also invested $1 million in order to acquire 40% of Amino Therapeutics Inc., which is working on a  “novel approach” to developing a drug candidate to address the global pandemic.
  6. The company’s management team includes Stan Bharti.  Bharti’s most successful project was Consolidated Thompson Iron Mines which began as a $1 million dollar exploration iron ore company which later sold to Cliffs Natural Resources for $4.9 billion in cash.[7] QuestCap’s advisory board also includes medical experts and broadcasting legend Larry King.

Rapid, Point-of-Care Serological Tests

On April 7, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) announced that it entered into a profit sharing agreement with MTJR to exclusively distribute, market, and sell IgG/IgM antibody tests in both North and South America.[8]

Through a small blood sample, these tests provide rapid, point-of-care results to identify individuals who may be infected with SARS-CoV-2, the virus behind the current pandemic. This is done by analyzing the patient’s blood for antibodies to COVID-19. All necessary components come included in the kits and the results are available  in 10 to 15 minutes.

“Highly sensitive and specific tests for antibodies … will likely be a component of an essential toolkit for understanding who might have immunity and to help inform health authorities on where we stand on controlling the worldwide outbreak.”

  • Dr. Lawrence Steinman, Member of the Board of Advisors for QuestCap

Though they haven’t been approved by the FDA, the regulatory body has permitted the distribution and marketing of the tests in the US based on its public health emergency policy. They are already being sold and distributed in the European Union, certain Asian countries, and South Korea where their clinical effectiveness is being assessed.

QuestCap will help finance MTJR’s purchase of the antibody test for distribution in the Americas, and will receive 40% of any profits earned from the sale of these tests.

Mike McCarthy—former Senior Policy Advisor to the Minister of Health of Ontario and another Member of the Board of Advisors for QuestCap—says that the strategic partnership to distribute these antibody tests will help “our society return to a ‘new normal’.

“Standard for Safe Sport” Protocol

Despite the research being done to address the global crisis, it is far too early to begin reliably forecasting a return to normalcy, especially for large-scale social events like concerts, conventions, and sporting events.

In fact, according to Dean Winslow, an infectious-disease doctor at Stanford, the return of large spectator sports “may even have to be delayed a little bit longer” than most other forms of gathering.[9]

This, however, brings us to another key element of QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) impact investment portfolio.

On April 17, the company executed a share purchase agreement to acquire 49% of Athletics and Health Solutions Inc. Just days earlier, Athletics and Health Solutions itself signed an LOI with DIMAYOR—the organization responsible for operating professional football leagues and tournaments in Colombia—to restart football activities in that nation.[10]

A major part of this plan is the implementation of a “Standard for Safe Sport Medical Screening, Interpretation and Reporting” protocol. Created by Glenco Medical Corp.—whose CEO, Glenn Copeland, is a Special Advisor to QuestCap—the Standard for Safe Sport involves:

  • Extensive screening using antibody tests supplied by MTJR;
  • Self-assessment, self-reporting, and self-regulation on the part of all those involved in the league, including players, staff, and support personnel;
  • Collaboration with governing bodies;
  • Enforcement of medical recommendations and measures for recovery.

Through its previously discussed deal with MTJR, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive 40% of any profits earned from the sale of the tests. The company expects this test will provide the confidence to return the players back to the field in a controlled ecosystem.

Another Potential Diagnostic Test

While QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) works to bring the IgG/IgM antibody tests to the American market, its investment is also enabling a team of researchers in Ontario to develop another potential diagnostic test.

Led by Dr. Anne-Claude Gingras, the team operates out of Lunenfeld-Tanenbaum Research Institute (LTRI), one of the world’s top biomedical research institutes. Their aim is to gain a better understanding of SARS-CoV-2 biology and evolution. This, they believe, could lead to the development of an alternative test to identify the virus.

On April 9, QuestCap—in partnership with Sinai Health Foundation—announced that it will provide $500,000 to advance the LTRI team’s efforts to develop commercial applications related to the team’s research.[11]

“We are committed to putting our capital to use where we can to aid in the fight against this global pandemic, and this investment illustrates how public and private enterprises can work together in this time of crisis.”

  • QuestCap Co-Chair, Stan Bharti

In exchange, the company will receive royalties generated by any commercial product developed by Sinai Health Foundation related to their research.

QuestCap Invests $1 Million to Establish Research Group For Emerging And Respiratory Viruses

QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) made one of its biggest moves at the beginning of April when it invested $1 million to establish the Sunnybrook Translational Research Group for Emerging and Respiratory Viruses (SERV).[12]

Led by infectious diseases physician and microbiologist Dr. Samira Mubareka—who, along with clinical microbiologist Dr. Robert Kozak and a team of close collaborators, were the first to isolate SARS-CoV-2,[13] the agent behind the ongoing global outbreak—SERV’s work will focus on three crucial streams of research:

  1. Virus Biology – this approach provides precision genomic data, which will be essential for outbreak investigation.
  2. Vaccines and Therapeutics – the SERV team will share its findings within the Canadian research and diagnostic community, thereby driving further innovative solutions to the pandemic.
  3. Transmission Prevention – SERV will also build a simulation space for live virus experiments to help evaluate the risks posed to healthcare workers

With the $1 million investment, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) will receive a 3.5% royalty on any revenues earned from the commercialization of the research done by SERV. The company believes that its investment can aid researchers in Canada and across the world in their efforts to develop better diagnostic testing, treatments, and vaccines.

“On behalf of Sunnybrook, I would like to extend my deepest thanks to QuestCap for stepping up with this inspiring investment. Your support will have a direct impact on the lives of countless people in our communities, across Canada and around the world.”

  • Dr. Andy Smith, Sunnybrook’s President and CEO.

As Dr. Mubareka herself explains, QuestCap’s investment will help optimize this “extremely time-sensitive research.” While no timeline for commercialization can be provided, the team will no doubt be working quickly as possible.

QuestCap Acquires 40% of  Life Science Company Developing Biologic Pharmaceuticals

Just a day after the Sunnybrook deal was announced, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) announced another major impact investment— a 40% stake in Amino Therapeutics Inc.[14]

Through its parent company, Exponential Genomics Inc., Amino has exclusive rights to leverage the XenoArray platform to engineer a potential treatment for the virus behind the global pandemic.

If successfully developed, the treatment would be a small molecule drug candidate based on peptide protease inhibitors. By selectively bonding with specific proteases, these inhibitors could potentially fight the virus’s ability to reproduce.

Amino’s President and CEO, David Preiner, described this as a “novel approach” to developing a drug candidate, and described his team as being “optimistic” about potentially yielding effective treatments.

“We are working on ways to accelerate the drug development timeline for novel biologics to start regulatory processes, demonstrate patient safety, and bring patients treatments.”

  • David Preiner, President and CEO of Amino Therapeutics

As with the Sunnybrook deal, QuestCap Inc. (OTC: COPRF) – (CSE:QSC) – (FRA:34C1) invested $1 million for its 40% acquisition of Amino. The closing of the deal was announced on April 13.[15]

QuestCap’s Management Team and Advisory Board

Neil Said – President and Chief Executive Officer. Said has worked as an officer and legal consultant to numerous Canadian listed companies in the technology, cannabis, mining, oil & gas, and healthcare industries. He began his career as a securities lawyer at Osler, Hoskin & Harcourt LLP, where he worked on a variety of corporate and commercial transactions. Neil is also currently the head of legal for the Forbes & Manhattan group of companies.

Deborah Battiston – Chief Financial Officer. In addition to her work at QuestCap, Battiston serves or has served as CFO at a number of other companies, including Origin Gold Corp., Trigon Metals, Inc., Jourdan Resources, Inc., Q-Gold Resources Ltd., Savanna Capital Corp., Yukoterre Resources, Inc., Sulliden Mining Capital, Inc., QMX Gold Corp., Russo-Forest Corp. and Tangelo Games Corp. She is also on the Board of Directors at Savanna Capital Corp. and Sulliden Mining Capital, Inc.

Stan Bharti – Co-Chairman. Bharti is the founder of Forbes & Manhattan, a merchant bank with a focus on resource-based sectors. In May 2011, Forbes & Manhattan took Consolidated Thompson Iron Mines—then a $1M dollar exploration iron ore company—was later able to develop and sell it to Cliffs Natural Resources Inc. for $4.9 billion in cash. Over the last ten years, Bharti has invested and raised over US$10 billion and has listed over 50 companies on different stock markets including Toronto, London, Australia, South Africa and New York.

G. Scott Moore – Co-Chairman. In addition to his position at QuestCap, Moore is also Chairman at Vilhelmina Mineral AB; President, CEO, and Director at Euro Sun Mining, Inc; and COO and Vice President at Forbes & Manhattan Inc, as well as President and CEO at its subsidiary, Potash Atlantico Corp. Together with his previous positions, Moore has served at the helm of nine companies.

Richard Dolan – Member of the Advisory Board. Dolan began his career in the wealth management industry. Following a ten-year record of raising over $3 billion in assets, he was invited to design and deliver a certificate program at Schulich School of Business’s Executive Development Centre in York University on the subject of marketing and selling wealth management services. Since 2006, he has toured with US Presidents Bill Clinton, George W. Bush, Barack Obama, and Donald J. Trump as well as Secretary of State Hillary Clinton.[16]

Jim Rogers – Member of the Advisory Board. Mr. Rogers co-founded the Quantum Fund, a global-investment partnership. Over the next 10 years, the portfolio gained 4,200%. After retiring at age 37, he continued to manage his own portfolio and serve as a professor of finance at the Columbia University Graduate School of Business.

Dr. Lawrence Steinman – Member of the Advisory Board. Steinman is Professor of Neurology, Neurological Sciences and Pediatrics at Stanford University and Chair of the Stanford Program in Immunology from 2001 to 2011. His research focuses on antigen specific tolerance in autoimmune disease and in gene therapy for degenerative neurologic diseases. He was a postdoctoral fellow in chemical immunology at the Weizmann Institute of Science and has received numerous honors. He also co-founded several biotech companies, including Neurocrine, Atreca, 180 Therapeutics, and Tolerion. He was a Director of Centocor from 1988 until its sale to Johnson and Johnson.[17]

Dr. Glenn Copeland – Member of the Advisory Board. As an expert in the treatment and diagnosis of lower extremity sports medicine injuries, Dr. Copeland has offered invaluable advice and service since 1979 in his significant role as one of the team doctors of the Toronto Blue Jays of Major League Baseball. Furthermore, Dr. Copeland has overseen the lower extremity health and wellbeing as Consultant to Major League Baseball Umpires for over 20 years. He still continues in that capacity. Dr. Copeland was entrenched as Medical Director for Ottawa Sports and Entertainment Group, the Ottawa REDBLACKS of the CFL as well as the Ottawa 67’s of the OHL in 2013. He still continues in this role. Dr. Copeland’s more recent appointment was to the Atlanta Braves of Major League Baseball as a foot and ankle Consultant in 2017, where he currently remains operating in that position.

About Mike McCarthy – Member of the Advisory Board. As a volunteer Vice-President of the Canadian Hemophilia Society, McCarthy was the national spokesperson for Canadians infected by blood tainted with Hepatitis C. Presently, Mike is a Principal at Grosso McCarthy and provides counsel to clients in both the not-for-profit and for-profit sectors. In 2003, he provided strategic support and counsel to the government of Ontario during the SARS outbreak. McCarthy has more than 14 years of experience with the Ontario Ministry of Health and Long-Term Care and 24 years in health policy and delivery. He previously spent 18 years as a psychiatric nurse.

Larry King – Member of the Advisory Board. King has conducted more than 40,000 interviews over his 60-year career and can still be seen hosting “Larry King Now” on Ora TV, Hulu and RT. Celebrities, politicians, athletes and newsmakers from around the planet have experienced Larry King’s unique disarming interview style and come to trust him as a friend and talented professional. From JFK and Vladimir Putin, to the Dalai Lama and Lady Gaga, anyone having an impact on the world has sat across the desk from Larry King.

Editorial Team
USA News Group

Sources:

[1] http://questcapinc.com/

[2] https://thegiin.org/research/publication/impinv-market-size

[3] https://www.globenewswire.com/news-release/2020/03/30/2008778/0/en/QUESTCAP-APPOINTS-NEW-CEO-OUTLINES-NEW-INVESTMENT-STRATEGY-AND-PROVIDES-CORPORATE-UPDATE.html

[4] https://www.barrons.com/articles/impact-investments-rise-amid-covid-19-pandemic-01586086243

[5] https://www.fnlondon.com/articles/covid-19-shows-the-case-for-impact-investing-20200420

[6] http://questcapinc.com/medquest/

[7] https://en.wikipedia.org/wiki/Stan_Bharti

[8] http://questcapinc.com/questcap-announces-profit-sharing-on-exclusive-distribution-contract/

[9] https://www.boston.com/sports/sports-news/2020/04/05/how-long-sports-return

[10] https://www.globenewswire.com/news-release/2020/04/17/2017801/0/en/REPEAT-QuestCap-to-Acquire-49-Percent-of-Athletics-and-Health-Solutions-Inc-With-Intent-to-Deploy-COVID-19-Standard-for-Safe-Sport-With-Colombian-Professional-Soccer-League.html

[11] https://streetsignals.com/questcap-made-investment-in-sinai-health-foundation

[12] https://www.globenewswire.com/news-release/2020/04/02/2010455/0/en/QUESTCAP-TO-INVEST-1-MILLION-WITH-SUNNYBROOK-RESEARCH-INSTITUTE-TO-ESTABLISH-THE-SUNNYBROOK-TRANSLATIONAL-RESEARCH-GROUP-FOR-EMERGING-AND-RESPIRATORY-VIRUSES.html

[13] https://sunnybrook.ca/research/media/item.asp?f=covid-19-isolated-2020&i=2069

[14] https://www.globenewswire.com/news-release/2020/04/03/2011571/0/en/QUESTCAP-SIGNS-BINDING-LOI-TO-ACQUIRE-INTEREST-IN-AMINO-THERAPEUTICS.html

[15] https://www.globenewswire.com/news-release/2020/04/13/2015184/0/en/QuestCap-Completes-Acquisition-of-Amino-Therapeutics.html

[16] https://www.globenewswire.com/news-release/2020/04/08/2013289/0/en/QuestCap-Appoints-Richard-Dolan-and-Jim-Rogers-to-Advisory-Board.html

[17] https://www.globenewswire.com/news-release/2020/04/02/2010668/0/en/REPEAT-QUESTCAP-TO-INVEST-1-MILLION-WITH-SUNNYBROOK-RESEARCH-INSTITUTE-TO-ESTABLISH-THE-SUNNYBROOK-TRANSLATIONAL-RESEARCH-GROUP-FOR-EMERGING-AND-RESPIRATORY-VIRUSES.html

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Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for QuestCap Inc. advertising and digital media in Canada and Europe from the company directly. Please note, as we are shareholders of the company MIQ reserve the right to advertise this company Worldwide, and will advertise the company Worldwide. There may be other 3rd parties who may have shares of QuestCap Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of QuestCap Inc. which were purchased as a part of a financing offered by the QuestCap Inc. We also reserve the right to buy and sell, and will buy and sell shares of QuestCap Inc. in the open market at any time without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of QuestCap Inc. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
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News Administrator by — November 23, 2024 By News Administrator in Uncategorized

Once in a while a sector in a sector (Sub-sector) gets ignored. This can happen for a variety of reasons, but usually it’s because of World events and market activity thatis taking all the attention away.

This can sometimes present us with some very interesting opportunities within these sub-sectors, and it’s situations like this we like to look at.

The best part about these types of situations, is that 9 times out of 10 it’s only a matter of time until these sub-sectors catch up, and if we can dig out some solid looking companies before they get caught up with, it can result in good buying opportunities.

If you’re interested in hearing about some of the companies we look at in this space, then simply enter your email in the box provided below, and we will email you once we’ve concluded assembling the information we’ve found.

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While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in any of our reports is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Administrator by — February 21, 2020 By News Administrator in Uncategorized
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