Greyson International Inc. (OTC Pink: GYSN), developer of an innovative, patented topical delivery technology targeting the multi-billion dollar cosmetics and OTC pharmaceutical industries, has made significant progress in 2012 and outlined ambitious plans to unlock shareholder value in 2013 on a recent conference call. With numerous upcoming catalysts, investors may want to take a closer look at this early-stage company.
Steps Towards Commercialization
Greyson made significant progress in developing its game-changing Trilexon® topical delivery technology, which management believes has the potential to revolutionize numerous industries around the world. The polymer blend delivers active ingredients to the skin over an extended period of time, while maintaining better moisture and pH levels for skin health, by combining a cationic emulsifying agent, oil soluble polymer and lactate buffer system.
On July 23, 2012, the company received a Notice of Allowance from the U.S. Patent and Trademark Office signaling that its patent application had been approved. And on September 18, 2012, the company was officially issued patent number 8,268,335, covering its Trilexon® delivery technology. The achievement was a necessary precursor to commercialization, since the company couldn’t license the technology without first protecting it.
With the newly issued patent in hand, the company launched its new tinted Trilexon® foundation product, designed to reduce fine lines that form around the eyes and mouth before the application of make-ups, blushes and eye shadows. The very public product launch was designed to put the technology on the radar of many larger cosmetic companies, like Estee Lauder Companies Inc. (NYSE: EL) and Avon Products Inc. (NYSE: AVP).
Working Capital & Capital Markets
On March 12, 2012, Greyson acquired a private entity that owns a 3% passive investment in Blake Oil and Gas Limited, a privately owned, Guernsey registered, oil and gas company, with a property that could house billions of barrels of hydrocarbons. Blake’s partner has committed over $100 million in funding to further develop these oil and gas reserves, which Greyson hopes will eventually yield cash flow to help support Trilexon®’s development and expansion.
With working capital potentially on the way, the company also focused on improving access to the capital markets during 2012. On October 15, 2012, the company announced that its shares had become DTC eligible, which means that its stock is more widely accessible to both retail and professional traders. And on December 27, 2012, the firm announced that its stock had been upgraded to OTC Pink Current Information, signaling greater transparency for investors.
These elements are both very positive for the company, since they signal a move towards greater transparency, easier market access, and potentially less shareholder dilution down the road. Meanwhile, the oil and gas investment could prove to be larger than management or investors initially expected, particularly given the $100 million commitment by a key partner, signaling a strong vote of confidence in the property’s potential.
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Looking Ahead to 2013 and Beyond
Greyson’s management remains very confident moving into 2013, judging by comments on its conference call. CEO Harvey Tauman indicated that the company’s Trilexon® technology could prove to be a breakthrough far bigger than the market realizes, with implications moving beyond cosmetics and into the pharmaceutical industry. In fact, the company announced that it would be creating a new Greyson Biomedical subsidiary to capitalize on these opportunities.
When it comes to commercialization plans, management indicated that it was looking at numerous sales possibilities, including shopping channels, television advertising, retail marketing and infomercial advertising. These methods had been successfully used by management in the past to launch previous cosmetic innovations, lending credibility to their methods and abilities this time around with its Trilexon® based product lines.
While the conference call was cut short by confusion during the Q&A section, investors interested in learning more about these future plans or those with questions about the company should e-mail [email protected] for a prompt reply. But, in the end, the company may be worth considering for investors willing to take on a little risk in their portfolios, with numerous upcoming catalysts and a clear path towards commercialization.
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