LexaGene Holdings Inc. (LXG.V) is a molecular diagnostics company that has commercialized the MiQLab System for fast and easy detection of biological contaminants, pathogens and other molecular markers. The System is designed for on-site usage and uses real-time PCR chemistry. Our customers include biopharmaceutical companies and veterinary hospitals. The MiQLab System delivers excellent sensitivity, specificity, and breadth of detection.
Coverage: December 2018, July 2019. April 2020, December 2020, September 2021, May 2022 and February 2022.
On February 21 2023, a halt was reported on the trading of LexaGene shares. This morning a news release was issued citing that LexaGene had filed for Chapter 7. The company reportedly was unable to secure further funding.
This came as a surprise to retail investors. LexaGene already had some institutional investors and had been making considerable progress in the Biopharmaceutical market for which it was expected to be highly "bankable".
LexaGene has what many considered to be "disruptive" technology with some intangible assets; intellectual propriety (patents), as well as, close to 50 MiQLabs which two were already sold to large Biopharmaceutical companies.
Shareholder letter (June 2022):
We have manufactured 48 MiQLab Systems to date, 16 of which will be in the field soon. Roughly 15 are used internally for continued R&D work to advance the technology, leaving roughly 17 available to support new sales. We have parts to build an additional 20 Systems.
The timing of this event is questionable. It's unclear why LexaGene was unable to secure funding.
Unfortunately these are the risks that venture investors have to contend with.
Some companies do unexpectedly file for bankruptcy.
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