Hi. I recently received a call advertising Bioretec’s share offering. From what I quickly read, it seems like an interesting case. Have others received similar marketing, and what are others’ feelings about the company? Springvest is the organizer of the offering; that particular firm is unknown to me, but then again, I don’t really know these types of firms.
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A desperate attempt to raise money, if anyone would still fall for it 
It felt a bit too good to be true, of course. Superior technology, about to break through, and affordable. I read a few comments, and apparently the same promises have been in effect for a few years now
Bioretec Oy, a medical device company that develops and manufactures strong, safe and reliable biodegradable implants for pediatric and adult orthopedics, plans an initial public offering and listing of its shares on the Nasdaq First North Growth Market Finland.
Bioretec Oy (“Bioretec” or “the Company”) announces its plan for an initial public offering and listing of its shares on the Nasdaq First North Growth Market Finland marketplace (“the IPO”).
The objective of the planned IPO is to enable future investments in the commercialization of the Company’s orthopedic RemeOs™ trauma screws, as well as the development and commercialization of future orthopedic RemeOs™ implants, thereby supporting Bioretec’s growth strategy.
The planned IPO is expected to consist of a share offering by Bioretec and a potential overallotment option. The gross proceeds from the new share offering are estimated to be approximately 25 million euros (excluding the overallotment option) and are intended to be used to support Bioretec’s growth strategy by enabling new investments in the commercialization and development of RemeOs™ products, expansion of production, and strengthening of Bioretec’s capital structure.
Handelsbanken Fonder AB, Mandatum Life Insurance Company Ltd, and Mutual Insurance Company Kaleva (“Anchor Investors”) have committed to subscribe for shares totaling 8 million euros under certain conditions and provided that the valuation of the Company’s issued shares after the proceeds from the IPO does not exceed 71 million euros.
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Can anyone smarter tell me how the Springvest offering compares to the current move to First North? Are they selling a pig in a poke because they’re out of money, or will they get a good valuation for the company?
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They’re going public with a pretty good product, but there’s absolutely no buzz around it.
Is it a flop before it even starts, or is it a proper underground stock? 
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Another option is for everyone to keep quiet about the diamond-tier thing so that for once they could get more than 100 shares?
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Karo Hämäläinen briefly commented on Bioretec in his article:
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An article in Aamulehti. The aim is to be cash flow positive by 2025 and achieve a turnover of €100m by 2027. The plan is to enter the US market with the new Remeos trauma screw, for which funds are currently being raised for its launch in the US. Gross margin is 97%.
Beautiful words and numbers, believe it if you want. One would think there should at least be a possibility of 100% daily gains sometime in the future if positive news comes from the US. The starting level, of course, could be much lower than the issue price.
Company presentation.
It would be nice to hear from someone who understands the industry what Bioretec looks like compared to other players! Good, bad, experiences, etc.
https://bioretec.com/files/IPO-page%20publications/Bioretec%20Oy%20-%20Yhtiöesittely%2007062021.pdf
If all permits from the USA had already been granted, this would be an interesting case. I understand the owners wanting to bring this to the stock market right now, as continued operations require money.
As usual, I also wrote an analysis of Bioretec, as it seems to have received little attention in this IPO frenzy - and the more I looked into it, the more I felt it was undeserved. Spinnova, however, seems to have captured all the attention among these start-up IPOs.
A few highlights. Firstly, it is rare to find a start-up company in Finland that is aiming directly for the US markets, which is a big plus for me. A similar South Korean competitor has already received marketing authorization in Europe, although it has not yet started sales processes in Europe. There are no other significant competitors at the same stage as Bioretec. Other competitors have foreign metals in their products, the long-term effects of which are unknown.
I also had to research what the FDA’s Breakthrough Designation Device designation means. The Breakthrough Designation Device designation, which was granted at the beginning of the year, is essentially the US health authorities’ way of creating a fast track to market for products and medical innovations that help cure deadly or permanently disabling diseases. So, although the approval process is not quite finished, it is clear that Bioretec has a first-mover advantage in a huge market that is difficult to enter due to the approval process and where healthcare costs are notoriously high.
I was most convinced by the innovation especially because it genuinely enhances healthcare and recovery. Biodegradability thus benefits many different actors at various levels in the healthcare value chain, starting from the patient.
Of course, its valuation is still quite salty, but when you consider that Nanoform’s market capitalization was 3x this, Nightingale’s 5x this, Spinnova’s 6x this, the offering feels okay. The market capitalization has nearly quadrupled from Springvest’s last offering a year and a half ago, but now the risks are much smaller than before the FDA breakthrough designation, and the path should open once the remaining permits are in order.
I have simultaneously been studying Bioretec and Spinnova, and when looking at Spinnova’s valuation, it contains much more air than Bioretec’s, but on the other hand, the hype around Spinnova is so much stronger that this is understandable. It’s amusing that in both cases, the main idea is to manufacture a biodegradable product - for entirely different purposes, of course.
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This seems to have been overshadowed by other IPOs, as there was no announcement of oversubscription or an offering cancellation.
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It looks like Nordnet still allows subscriptions, but I couldn’t do it through Danske Bank a moment ago when I tried. Of course, they assumed it would end and had an automated system to take the page down. 
EDIT: It seems that Danske Bank allows subscriptions again.
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Yeah, it went a bit quiet, well, I’ll hold on and wait to hear what’s happening in the US
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Long speculation, indeed. Of course, oversubscription announcements have come out, for example, 10 minutes past the hour, etc., so it’s very possible that the same will happen with this one.
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Those who aimed for quick profits may be disappointed. There are many IPOs now, and this one has been somewhat sidelined. The industry has also made investors cautious. A few health technology stocks have seen significant drops in recent years.
“I really wanted this for my wallet, but the fact that there won’t be oversubscription might look bad on the opening day (Nighthealth)…”