Zomedica Touts $100M Cash, 40% Revenue Growth Ahead of Special Meeting

TL;DR

**Zomedica's sitting on $100M cash and projecting 40% revenue growth, pushing confidence ahead of a key shareholder vote.**

AI Summary

Zomedica Corp. (ZOM) filed a DEFA14A to provide additional materials for its upcoming Special Meeting, following a conference call on January 17, 2024. The company highlighted its strong financial position with $100 million in cash and equivalents and projected full-year 2023 revenue between $31 million and $35 million, a 40% increase from over $25 million in 2023. This matters to investors because it signals management's confidence in the company's growth and financial stability ahead of a crucial shareholder vote.

Why It Matters

This filing provides shareholders with management's perspective on Zomedica's financial health and growth trajectory, which is crucial information for making informed decisions regarding the upcoming Special Meeting and their investment.

Risk Assessment

Risk Level: low — This filing is an informational update from management, not indicating new risks but rather reinforcing positive financial metrics.

Analyst Insight

A smart investor would review the full proxy statement and conference call details to understand the specific proposals for the Special Meeting, considering Zomedica's strong financial position and growth projections as context for their vote.

Key Numbers

• $100 million — Cash and Equivalents (Indicates strong liquidity and financial stability for Zomedica.)
• $31 million to $35 million — Expected Full-Year 2023 Revenue (Represents significant top-line growth for the company.)
• 40% — Revenue Growth (Highlights rapid expansion at the high end of the projected range over the previous year.)
• $25 million — Full Year 2023 Revenue (The baseline revenue figure against which the 40% growth is calculated.)

Key Players & Entities

• Zomedica Corp. (company) — the registrant filing the DEFA14A
• $100 million (dollar_amount) — cash and equivalents on Zomedica's balance sheet
• $31 million to $35 million (dollar_amount) — expected full-year revenue for 2023
• 40% (dollar_amount) — projected increase in revenue at the high end of the range over full year 2023
• $25 million (dollar_amount) — full year 2023 revenue
• January 17, 2024 (date) — date of the conference call discussed in the filing

Forward-Looking Statements

• Zomedica will continue to emphasize its strong cash position and revenue growth in future communications to shareholders. (Zomedica Corp.) — high confidence, target: Q1 2024
• The positive financial outlook presented will likely influence shareholder voting outcomes at the Special Meeting. (Shareholders) — medium confidence, target: Date of Special Meeting

FAQ

Key Financial Figures

• $100 million — y with strong future prospects. We have $100 million in cash and equivalents on the balance
• $31 — xpect full year revenue in the range of $31 to $35 million, an increase of approxim
• $35 m — ull year revenue in the range of $31 to $35 million, an increase of approximately 40%
• $25 million — ge, over full year 2023 revenue of over $25 million. We believe our strong operational pro
• $5.00 — below certain price thresholds, such as $5.00 or $1.00 per share. We believe that a l
• $1.00 — tain price thresholds, such as $5.00 or $1.00 per share. We believe that a lower outs
• $0.20 — as been trading considerably lower than $0.20 recently and the number of trading days
• $12.80 — the price would be 80 times 16 cents or $12.80 dollars per share. If you held 80 share
• $100 — plits conducted by companies within the $100 - $200 million market cap range, we obs
• $200 million — onducted by companies within the $100 - $200 million market cap range, we observed that the
• $0 — ation for growth, building revenue from $0 in 2020, to $4 million in 2021, to ~$19
• $4 million — h, building revenue from $0 in 2020, to $4 million in 2021, to ~$19 million in 2022 and ov
• $19 million — $0 in 2020, to $4 million in 2021, to ~$19 million in 2022 and over $25 million in 2023. W

Filing Documents

• zom_def14a.htm (DEFA14A) — 36KB
• 0001654954-24-000872.txt ( ) — 37KB

From the Filing

zom_def14a.htm United States Securities and Exchange Commission Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant Filed by a Party other than the Registrant Check the appropriate box: Preliminary Proxy Statement Confidential, For Use of the Commission Only (as -permitted by Rule 14a-6(e)(2)) Definitive Proxy Statement Definitive Additional Materials Soliciting Materials under 240.14a-12 ZOMEDICA CORP. (Name of Registrant as Specified in Its Charter) _________________________________________________________ (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant) Payment of Filing Fee (Check all boxes that apply): No fee required. Fee paid previously with preliminary materials. Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11 Dear shareholders, Today, I am reaching out to you directly to share some of my remarks from our conference call held January 17, 2024, about our upcoming Special Meeting and vote. The full replay of the call and the call transcript are available on our website at Events & Presentations | Zomedica Inc. and a complete copy of our proxy can be found at: https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&ref=317988284&type=PDF&symbol=ZOM&cdn=1ca2e7acd3f23d4c25b1429962f85fcd&companyName=Zomedica+Corp.&formType=DEF+14A&formDescription=Other+definitive+proxy+statements&dateFiled=2024-01-17 We are a fast growing, well capitalized company with strong future prospects. We have $100 million in cash and equivalents on the balance sheet and have announced that we expect full year revenue in the range of $31 to $35 million, an increase of approximately 40% at the high end of the range, over full year 2023 revenue of over $25 million. We believe our strong operational profile characterized by rapid growth, solid capitalization and strong future prospects differentiates us from other companies undergoing reverse splits. We are in a position of strength and believe the proposed reverse split will be beneficial to the Company and its shareholders. At the highest level, we believe a reverse split can remove barriers that are potentially excluding certain groups of both individual and institutional investors from considering the purchase of Zomedica shares. By adjusting our capital structure, through a reverse split, there are a number of potential positive downstream impacts that we can take advantage of. Many institutional investors, investment funds, and brokerage firms are prohibited by policy from investing or trading stocks below certain price thresholds, such as $5.00 or $1.00 per share. We believe that a lower outstanding share count and a higher share price will increase the appeal of our shares for these individual and institutional investors, which in turn could increase ownership among investors with longer term investment horizons. An increased share price could allow Zomedica to be included in stock indices, many of which have minimum price per share requirements to qualify for inclusion. Inclusion in popular indices, such as the various Russell indices, increases demand for shares and facilitates investment by institutional and individual investors who track these indices. 2 A higher per share price could increase interest from the equity research analyst community, potentially expanding the coverage of Zomedica, which would also expand the pool of individual and institutional investors who are being exposed to the Zomedica story. Another factor which influenced the timing of our decision to pursue a reverse split is ensuring compliance with the NYSE American exchange, which addresses the potential of being delisted. If we fail to comply with the listing requirements, the company would be delisted and will no longer be able to utilize the exchange to sell its shares. Instead, investors would only be able to buy and sell shares in the Over-The-Counter market, where typically there is reduced trading volume, fewer buyers and sellers, and fewer regulations and requirements, meaning buying or selling shares can involve higher risk. In fact, if we are forced on to the OTC market, we are further limiting the number of investors that can actually trade our stock, and worse yet, many current institutions that hold shares in Zomedica may be forced to sell those shares. As it relates to regaining compliance with the NYSE exchange – we have received a number of questions from investors about what our plans for the reverse split would be if we regained compliance organically. Given that our share price has been trading considerably lower than $0.20 recently and the number of trading days remaining before our Special Meeting date of February 28th to bring it into compliance, we believe it's unlikely that we regain compliance organically. We believe that a reverse split is ultimately

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View this DEFA14A filing on SEC EDGAR