https://keskustelut.inderes.fi/t/ostin-myin-juuri-asken-osa-7/52688/2747?u=pohjolan_eka
It was such an interesting company that I had to open a separate thread for it.
SenesTech (SNES) is the world’s only biotechnology company manufacturing and selling contraceptive products for rats and mice. This is a completely new product category for the multi-billion dollar rodent control market, which, unlike poisons, does not pose a danger to pets and wildlife when accumulated in rodents’ bodies. PETA and other animal welfare organizations also consider this a more humane way to control pests, as it allows them to live out their natural lives without producing a larger next generation of offspring. From an investor’s perspective, it is attractive that SenesTech’s products are not sterilizing, meaning rats must be continuously fed contraceptives at least once every six weeks for the effect to be maintained.
https://www.youtube.com/watch?v=23Dh9QCegq0
The company has two product categories. ContraPest, which contains a sweet, fatty liquid and is intended for professional use, and the “sausage-stick product” Evolve Soft Bait, launched this year, which is easier to store and sell than the liquid.
Regarding ContraPest, the company has several ongoing trial and pilot projects. The most significant new decision is the City of New York’s decision to initiate a year-long pilot project with the company, the details of which should be agreed upon very soon:
California has also banned the strongest rat poisons this year, so I consider it almost inevitable that they will adopt SenesTech’s product in the near future, even though an order has not yet been announced.
However, Evolve Soft Bait is expected to become SenesTech’s most important asset in the near future, with efforts to get it into all possible sales channels and countries as quickly as possible. The challenge is that because this is a completely new product category, buyers and consumers may not be very aware of the product.
The company naturally has a patent portfolio, so it is unlikely that any competitors will appear on the market immediately, and SenesTech is expected to maintain its monopoly position for years to come.
https://patents.justia.com/assignee/senestech-inc
Why is this company with a revolutionary product then worth only less than three million dollars? The reason is that the company is unfortunately in a constant cash crisis, as quarterly losses are many times higher than revenue, and only a limited amount of cash is available:
The company itself guides that Evolve’s sales will take off so dramatically next year that it will become cash flow neutral during the next year, and even in the first half of the year. However, many distressed companies are, as it were, forced to give overly positive guidance so that financiers do not flee, so there is a great deal of uncertainty associated with achieving the guidance. In addition, as part of its financing arrangements, SenesTech has had to issue a huge number of warrants, which significantly dilute investor ownership if the stock price turns sharply upwards. I would see the company more likely to be an acquisition target in the coming quarters than in bankruptcy, but everything is still possible at the moment.
There are hardly any shares: float about a million shares. If this takes off, it will move like a shot. Of course, the momentum can be in both directions.
At this point, one should believe that sales will really take off.
