Imagin Medical Inc (CNSX: IME) underperformance over the past year is a point of concern. The stock has shed more than 60% in market value on succumbing to soaring short selling pressure. Amidst the underperformance, the company has continued to work round the clock all in the effort of strengthening its long-term prospects.
CNSX: IME Catalysts And Share Price Analysis
The confirmation that the company has completed the assembly of i/Blue imaging system is a development that could help strengthen the stock’s sentiments in the market. The company’s balance sheet did receive a $1 million boost early in the year, paving the way for the company to pursue strategic initiatives for accelerating growth.
Shrinking net loss as depicted in a recent earnings report also underscores the company’s bid to shore the bottom line as it continues to explore ways of strengthening shareholders return. While the company has achieved significant progress in securing its future, the stock has continued to edge lower.
The stock is currently languishing near all-time lows having felt the full force of short sellers. A plunge to the $0.06 level leaves the stock susceptible to further drops as it is flirting with a critical technical level.
A plunge followed by a close below the $0.06 mark could attract increased shot selling pressure, after months of consolidation above the critical support level.
Imagin Medical needs to hold above the $0.06 level to have any chance of bouncing back after the underperformance of 2018.
Above the $0.06 mark, the stock remains well positioned to make a run for the $ 0.10 mark, a crucial resistance level.
A rally followed by a close above the $0.10 mark would open the door for the stock to continue powering high, in line with the emerging uptrend.
About Imagin Medical
Imagin Medical casts itself as a surgical imaging company focused on establishing new standards of care in the treatment of cancer. The company has developed the i/Blue system with a view of improving a surgeon’s ability to visualize cancerous cells. The system produces high-quality images compared to current methods in use.
i/Blue System Development
While Imagin Medical has taken a significant hit in the market, it has achieved significant milestones on the development of i/Blue System designed to enhance the visualization of cancerous cells. The company has already developed a Functional Unit that meets pre-established performance expectations.
The system control unit and the Dual Camera handpiece are now capable of operating as anticipated, to produce high-resolution images in blue and white light modes.
“We are very pleased that the i/Blue Imaging System’s Functional Unit is performing as intended. We are currently conducting focus groups with urologists to optimize the software user interface and to meet precise functionality requirements,” said Jim Hutchens, Imagin’s President, and CEO.
According to the CEO, I/Blue system has the potential to enhance blue light cystoscopy as a mainstream standard of care for bladder cancer. The executive expects the groundbreaking technology to drive significant shareholder value going forward.
Imagin medical has already met with the Food and Drug Administration as it seeks to get a head start on the regulatory pathway for its revolutionary imaging system. The company is planning to use feedback from the agency to refine its regulatory strategy as it eyes approval in the near future.
In the final quarter of 2018, Imagin Medical received $1 million from an exercise of warrants. With the new finances, the company remains well funded to oversee the development of the i/Blue system as it also eyes regulatory approval.
“We are excited to see the real promise of Imagin’s ground-breaking technology start to emerge and believe that it will drive significant value for our shareholders as we progress,” said Mr. Hutchens.
What Next For Imagin Medical
Imagin Medical finds itself in a precarious position after plunging to one-year lows on soaring short selling pressure. The stock is in dire need of new catalysts to bounce back from critical technical levels.
The milestones achieved on the development of i/Blue System should go a long way in strengthening the stock’s sentiments in the market. Given that the stock is still engulfed in a long-term bear trend, it would be wise to wait for it to rally and close above the $0.08 mark, to consider it a long-term investment play.
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Disclosure: We have no position in CNSX: IME and have not been compensated for this article.