NEW YORK, NY / ACCESSWIRE / January 26, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update note on OxySure Systems, Inc. (OTCQB: OXYS).
The update note is available here: OXYS Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
OxySure provides short duration / emergency medical oxygen and respiratory solutions for mass market use. Using patented technology that combines two dry, inert powders to create medical oxygen, the company manufactures and markets the OxySure Model 615, a portable emergency oxygen system that has been approved by the FDA for sale over the counter without a prescription.
We see OxySure as an intriguing company with several potential catalysts ahead as it enters 2015. In the last six weeks, OxySure has made several key announcements that increase our confidence that the company can execute on its growth plans, including raising fresh capital, striking a large new distribution agreement, and announcing that current CEO Julian T. Ross will stay on as CEO for at least the next three years. Mr. Ross will also continue to serve as CFO of OxySure until the company completes its CFO search, which is expected to occur during 2015.
Highlights of the note are as follows:
Exclusive New Deal Announced In Singapore
Last month, OxySure announced an impressive new exclusive distribution agreement with HTM Medico Pte Ltd. ("HTM Medico") in Singapore. The agreement appoints HTM Medico as the company's exclusive distributor in Singapore, and we believe represents a material new deal for the company. Importantly, the distribution agreement covers five years and includes minimum order commitments for OxySure's flagship product, the OxySure Portable Emergency Oxygen System, Model 615.
New Financing To Help Fund Growth
We were impressed to learn that OxySure was able to secure strategic financing for general corporate purposes and to fund its growth plans. Given its strong growth outlook but limited cash on the balance sheet at the end of the September quarter, we see the access to growth capital as a key factor helping to enable the company to execute to plan. The company raised $1.575mn in equity financing from an existing accredited institutional investor. The raise will include preferred stock and warrants, and will be denominated in three installments of $525,000 – the first of which has already closed as of December 29, 2014.
Olympian Cliff Meidl Becomes Spokesman
The company also announced that it had signed an exclusive long-term agreement with Cliff Meidl, a two-time Olympian and Team USA flag bearer at the Sydney Games, to be a spokesman and health ambassador for the company. Meidl, a passionate advocate for safety, has been named one of the twenty most inspiring USA Olympians after surviving a severe high voltage accident on a construction site. During the accident Meidl survived against all odds, receiving life-saving CPR and oxygen from local fire fighters, becoming an Olympian and elite kayaker despite withstanding a voltage equal to five times the amount used in the electric chair.
Maintaining Price Target Of $2.30
We are maintaining our price target of $2.30 for OxySure. We see the company as a compelling medical device company in the small cap healthcare sector with an innovative medical device with several catalysts ahead. We have modeled strong growth in 2015E; our model calls for the top line to grow from $3.1mn in 2014E, which would represent growth of 72.2% from 2013 levels. Oxysure's management has also reiterated its goal to reach an annual run rate of $10.0mn in 2015E, and we are encouraged by the recent steps taken by the company to achieve this goal. Our target of $2.30 suggests potential upside of 233.3% from the recent price of $0.69 on January 21, 2015.
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About OxySure System, Inc.
OxySure Systems, Inc. (OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The company owns numerous issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. OxySure's products improve access to emergency oxygen that affects the survival, recovery and safety of individuals in several areas of need: (1) Public and private places and settings where medical emergencies can occur; (2) Individuals at risk for cardiac, respiratory or general medical distress needing immediate help prior to emergency medical care arrival; and (3) Those requiring immediate protection and escape from exposure situations or oxygen-deficient situations in industrial, mining, military, or other "Immediately Dangerous to Life or Health" (IDLH) environments.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
[email protected]
SOURCE: SeeThruEquity