This story is becoming more and more one of the best stories I have seen in the biotech arena on the venture for the last couple of years at least.

Many anticipated a flush of shares once the last placement became free trading, but as I mentioned before, the speed at which that PP closed suggested that only handful set of investors were given a meaningful piece and they are not going to give it away at such levels.

Whenever I want to get into a story, I look at so called 5 DD points. Theralase ticks the box of the so called top 5 DD points (technology and science, management and having skin in the game, valuation and comparable, financials and upcoming milestones). Add to that an element that is rarely available in many stocks on the venture, market savvy investors and investor awareness groups that can get investors attention to the unique opportunity Theralase has to offer.

Indeed the speed at which nearly 5 million lose shares were eaten up last week speaks to the potential valuation seed investors and new ones are looking to exit at. This has all happened with just a handful newsletters providing coverage combined with a major milestone (regarding the PDC destroying bacterial cancer) that took place in the last few weeks.

To my mind, the real beauty of this story is that it has a strong balance sheet to become cashflow positive and self finance its trials. So in a nutshell, Theralase will launch second generation of a very effective pain relief device into the US and Canada in the coming couple of quarters. They are already generating 2 million dollars in revenue in Canada and their device is FDA approved. Next they will move their pre-clinical trial to a GMP approved setup, so that they can conduct a Ph1/Ph2 trial for bladder cancer in Q1/Q2 of 2015.

From a balance sheet perspective the Company is sitting at almost 2 million dollars in positive working capital position and has 21 million warrants in the money that could beef up the treasury by another 4.2 million dollars. Last reported quarter, the Company had a net burn rate of 185k (after taking into account EBITDA from current device) per 3 months. So, the Company has enough cash upto Q2 of 2015, taking into account around 500k for the new launch of the second generation device and nearly 1 million dollars for the trial setup. All warrants are currently in the money, so they can take themselves through the first part of the trial as well (all the way to the end of 2015) once warrants are exercised.

Insiders have a lot of skin in the story (nearly 10 million shares) aside from a Company that owns a few million shares of Theralase, which is also owned by an insider.

I believe the milestones will soon start to materialize on this Company.

MMN
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