Medizone International Inc (OTCMKTS:MZEI)
Medizone International Inc (OTCMKTS:MZEI) today announced the retaining of EMA Partners as the company’s advisor relating to financing and investment banking matters. In 2016, Medizone International Inc (OTCMKTS:MZEI) received EPA approval to market their disinfection technology in the United States. Medizone developed and commercialized the AsepticSure technology using ozone and hydrogen peroxide to disinfect areas from bacteria and viral pathogens with particular attention paid to the medical sector. Up until 2016, the system had been marketed outside the USA. Given this announcement, it appears that Medizone is set to aggressively pursue a large chuck of the American market.
EMA Partners, LLC is a mid-market investment-banking firm that has health sciences listed as one of its core markets. EMA lists their capabilities as company sales and divestures, intellectual property monetization, capital raises, and buy-side acquisitions. Interested observers believe that this alignment with EMA Partners may signal an aggressive business plan that could include acquisitions designed to diversify and strengthen their revenue streams.
However, entry into the American market apparently did not come cheap. At the end of FY2016, Medizone International Inc (OTCMKTS:MZEI) had $398,000 in cash but in their Q1 2017 reporting, the company was down to just $22,000 in cash. Part of that cash was spent on inventory as those levels increased from $109,000 in Q4 2016 to $240,000 in Q1 2017. Medizone International Inc (OTCMKTS:MZEI) needs that inventory to start moving as the firm has not reported any revenues in two consecutive quarters. Actually, in Q4 2016 there was a loss in the net income applicable to shareholders of over $1.4 million. Happily, that number shrank to a loss of $982,000 in Q1 of 2017. That trend needs to continue and revenues have to get kicked into gear if EMA Partners wants the opportunity to help build Medizone International Inc (OTCMKTS:MZEI) into a major player in the life sciences sector.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.