Organovo 3D Printing: Bold Mission But Needs Cash, May Offer Secondary
Investor information site Seeking Alpha thinks Organovo Holdings (PINK: ONVO) is worth a deeper look. We have profiled this company and the field of bioprinting before. It’s one of the most amazing 3D printing applications.
Organovo Holdings (ONVO) is a revolutionary company that uses 3D printing technology to build organic tissues one cell at a time. The potential applications for this technology are simply astounding with the possibility of replacement organ and tissue manufacturing that would revolutionize medicine and the healthcare industry. With an innovative management team and a potentially lucrative patent portfolio, it would seem that the sky is the limit for ONVO.
Organovo’s mission is potentially revolutionary, but the question is whether the company can survive long enough to see it through. It currently trades on the pink sheets. Below is their stock chart.
is loaded up with debt,bleeding cash and generates little to no revenue. While the technology is amazing and the potential is huge, right now the company is generous in its filings when it says it will be able to pay the bills for the next 12 months.
So what are the options? Most likely, the company will need to take additional funding, in the form of a dilutive secondary offering. While it would reduce the equity of the founders, a secondary could given them enough cash to complete R&D and start to generate revenue. We will see if the board of directors is willing to make this deal.
(Update: a commenter pointed out that the company has no debt. We checked in Yahoo! Finance and corrected the quote from Seeking Alpha above.)
Read the full analysis at Seeking Alpha.