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Biotechnology development company AIkido Pharma Inc. (NASDAQ: AIKI) recently released its 1st-quarter report, which revealed the strongest balance sheet in the company’s history with approximately $102 million in cash and cash equivalents.
It also shows a market capitalization of $73 million — trading approximately 30% below cash value.
Investors typically view trading below cash value as a sign of trouble. Some may assume that the company’s burn rate is too high to sustain itself or expect uncertainty about the true cost of its liabilities.
The company does not believe that this is a fair assumption given its history of successful acquisitions, substantial runway, and plans to pursue additional strategic initiatives and emerging opportunities to further diversify the risk.
History of Successful Acquisitions
AIkido has a diverse portfolio of small-molecule anti-cancer therapeutics. To further diversify and improve its balance sheet, the company has made value-enhancing acquisitions advancing in their respective timelines such as DatChat, Convergent Therapeutics, and Hoth Therapeutics.
DatChat Inc. (NASDAQ: DATS) is a personal privacy platform focused on encrypted communication, internet security, and digital rights management. Recently, DatChat went public, spelling big news for AIkido as it owns 525,000 shares of the company, which it purchased for $1,000,000. As of October 1, DatChat shares closed at $11.93, well higher than its initial public offering …
Full story available on Benzinga.com
Original Source: benzinga.com