Hi there,
Much like many of these early stage R&D companies, KNR has a long way to go to prove its business model related to the BIO Cloud COVID-19 analyzer. It has been bid up quite a bit during the pandemic and in fact, it was mired in obscurity until now. The good news is that it does have other products and has generated revenue from these products. It saw pretty impressive growth YOY in 2018 and 2019 but in 2020, revenue took a step back as a result of the pandemic.
The investment by the Canadian Government is a good thing, but not the be all and end all. The Government has investing millions in MANY companies over the past year and there is no guarantee of success or demand for its product. This being said, the company's BIO Cloud platform certainly has potential and it has had success with deploying its other building solutions.
Today, it is not astronomically valued like some of the competition. Mainly because it has other products generating revenue - a key distinguisher from its competitors. It is currently trading at around 10 times sales, not bad for a high-growth company. This assumes of course, it can return to higher growth.
Much like many others, it plans to list on the US markets which would be a nice catalyst, but it still trades on the CSE - the most lax exchange in Canada. That means it can be more easily manipulated and investors must expect volatility. Even some brokerages won't allow investors to trade stocks on the CSE. Overall I like what I see out of the company, but still has much to prove and carries considerable risk at these prices. This company was valued at below $1.00 per share based on its previous revenue streams. So that mean the markets are assigning $2-3 for its BioCloud platform which has not yet entered commercialization.
Mat