Q&A Investor Relations
Below you will find frequently asked investor questions and our CEO’s answers
Latest edition March 31, 2023
TO3 warrants
How is the exercise price calculated, and how do I redeem my TO3 warrants?
The volume-weighted average price (vwap) during the period of March 8 to April 4 with a 30% discount will be the exercise price for the TO3 warrants. On April 5, the exercise price is announced.
April 11 is the start date for exercising the TO3 warrants. Please notice that not all banks give a “heads up”. If you encounter any problems, please call your bank first. You may then contact [email protected] if it is still not working.
May 2 is the last day to use TO3 warrants. If not used, they will expire and have no value.
Financing
What is the time plan for the TO4 warrants, and how are you going to use the proceeds?
The TO4 warrants can be exercised in October 2024. The proceeds are needed to finalize our investment in regenerative medicine. This investment started with the rights issue in 2022 and then continued with the TO3 warrants in 2023.
Is rising inflation and interest rates affecting the Company?
So far, not at all. However, in 2022, there were delivery issues for parts to our system. As a result, we have already secured those parts for future deliveries at the beginning of this year.
How do you envision your positive cash flow and profitability in the future?
The fluorescence unit will improve the cash flow. But for us to secure positive cash flow, PHI needs to get GAMP approval and address the much larger clinical market segment.
Sales
Who are your customers?
Our products empower cell researchers around the world in both academia and industry, from cancer research, and stem cell studies to drug development. With our strategy shift towards regenerative medicine, we go from our present pre-clinical to the much larger market of clinical applications.
Learn more about our users and the over 250 scientific articles they published using HoloMonitor.
What is the proportion of the current sales for the system hardware, software and consumables?
Today, our sales consist of hardware 45%, software 45%, and 5% consumables and services.
What is the classic no-thank-you response a customer gives? Is it that the market is not ready, or that the price is too high?
Common responses are that they wish for fluorescence, did not get the financing or that the system needs to be GMP-compliant. The price is normally not an issue.
Product Development
It could be seen on your manufacturer’s website that you conduct a joint project to improve HoloMonitor’s motor table. Can you tell us more about the improvement work?
Improvement work is an integrated part of our ongoing work, both in terms of software and hardware development. The improved motor table will open up new applications and a broadened product offering without significantly increasing the manufacturing cost.
Do you have any plans to develop HoloMonitor further after the fluorescence module?
Yes!
What is the price for a fluorescence add-on module?
The final price is not set yet. We will not use cost-plus pricing or any of those models. But instead, set the price according to the value for our users.
When exactly is the module going to be available to all existing and new customers?
We will soon come back with this information.
Have customers refrained from purchasing a HoloMonitor M4 right now to wait for the release of the fluorescence add-on?
Yes, some contacts wanted to wait.
What is the advantage of combining holographic imaging with fluorescence imaging?
The combination makes it easier and less expensive to gain fluorescence insights. Coupled with that, it minimizes the harmful effect of fluorescence labeling on the cells. Especially, reduced cell impact is very important to produce reliable research results, which is important to our users.
Which of your customers request the combination?
Almost all of our users ask about fluorescence. Cell biologists are very interested in the genetic activity of cells. To some extent, it is possible to see genetic activity with holography, as the activity results in changing the shape or behavior of the cells. However, to see more subtle biochemical changes, fluorescence microscopy is needed.
Will the customers who have already purchased the HoloMonitor be able to add the fluorescence module afterward?
Yes, the HoloMonitor M4 system has been prepared for a fluorescence add-on for a long time.
Regenerative Medicine
“We envision that PHI and our key technology are integrated into established quality standards within regenerative medicine.” – What would that entail for your sales and finance? And how would that look in praxis?
A quality standard means that all companies acting within regenerative medicine must use the established standard for quality control and approvals. Thus, the first companies creating that standard have a competitive edge in the market.
For PHI technology to integrate into the quality control process in regenerative medicine, do you need to make any changes to the current M4 hardware and software?
Yes, to integrate our technology into manufacturing processes, the system will most likely be tailor-made. Generally, at the patient bedside and for cell transport, we envision a standard system, most likely a development of the present HoloMonitor M4.
GAMP
What is GAMP, and why are you interested in it?
GAMP® refers to Good Automated Manufacturing Practices. It is a system for producing quality equipment using the concept of prospective validation following a life cycle model. It is specifically designed to aid suppliers and users in the pharmaceutical industry. Certainly, we need GAMP validation to enter the sizeable clinical market and to grow as a significant player in regenerative medicine.
Approximately how long does it take to get GAMP approval?
From what we know today, our aim is to obtain GAMP approval in two years. However, we are aware that this is a very tight timetable.
What is our plan if you do not achieve GAMP validation?
We will get GAMP validation.
GlycoImaging
Read more about GlycoImaging in the article Fighting cancer at an early stage.
What is the status of the MIPs patent?
The patents in the US and Japan are approved. Presently, we are anticipating the patent approval in Europe. Therefore, we decided to create a dedicated subsidiary to house the synthetic antibody patent family and facilitate its business potential.
What is the future plan for the MIPs patent?
So far, we have established a dedicated subsidiary that will allow easier communication and transparency around the synthetic antibody patents and our core business. All in all, the idea is to license out the patent right or sell the patent.
Communication
How can I stay informed about the Company?
- View PHI’s profile and see the share price on Spotlight Stock Market.
- Subscribe to the latest PHI news from BioStock and Cision to stay informed.
- Visit our phiab.com website, which we regularly update with information.
- Follow PHI on social media, where we keep in touch with our global HoloMonitor community.
Why is the communication all in English now?
One of our bottlenecks has been communication. So, we made it our priority to improve and accelerate communication with limited resources. This is why we decided to communicate in just one language.
More questions? Please get in touch with our CEO,
Patrik Eschricht, at: [email protected]