Question: If there is so much potential in the company, why is your stock so low and what do you plan to do about it?
Dr. Chan: I am not a believer in efficient markets for individual stocks, particularly micro-cap stocks, where the stock price is supposed to reflect all of the relevant information and the “true” value of a company. In microcap stocks such as ours, there are just too many variables that are not publicly known for this to be the case. But this can represent an opportunity for investors who are willing to take the time to understand the story.
I believe the market right now has built in a substantial arbitrary discount for “uncertainty”, has discounted the significant potential of our technology and products, and is judging our entire company by looking at early stage revenues. The problem with this is that we have not yet even started selling the product with a sales team, something which perhaps was not clear to investors. Because of this, I believe that the market may not be appropriately valuing our company.
At the end of the day, the stock price reflects supply and demand and right now, there is too much supply and not enough demand. When I first began as CEO in January 2009, our stock was trading at a 3-month average daily trading volume of 11,500 shares per day. We’ve made a lot of progress as a business since then, and we have increased our average daily trading volume to 625,000 shares a day. We clearly recognize that, although a dramatic improvement, we can do even better.
As we outlined in our press release, with CytoSorb® in the early stages of commercialization, a growing number of exciting products under development, and an expanding research pipeline with government interest, CytoSorbents' story has become even more compelling and needs to be heard by more investors. We are working to accomplish this first and foremost by executing on our business strategy and increasing the fundamental value of the company through operational progress. We also are presenting the story to new institutional and retail investors, launching a revitalized website that can help communicate our story more effectively, and increasing our presence on the web and in social and print media. We also plan to attempt to uplist our company to a national exchange when eligible, and work to attract new analyst coverage. These are all designed to enhance awareness of our company and technology, broaden our investor base, and seek to grow our value for the benefit of all shareholders.