Opportunity to Invest in a Nano Tech Company Operating in a Fast-growing Industry
Polymer Factory is a top-performing deep-tech company and leader within the field of research and commercialization of dendritic nanotechnology. Vaccines and anticancer drugs are prime examples of how the implementation of dendritic nanotechnology can result in more potent pharmaceuticals. The application of dendritic nanotechnology in pharmaceuticals is known to enhance the efficacy of the active ingredient. Founded in 2006 by a group of professors at KTH Royal Institute of Technology in Stockholm, Sweden, Polymer Factory specializes in providing products that can be tailored to meet the unique needs of its customers. Dendritic materials which the Company develops can be seen as a sort of tree, the unique architecture forming dendritic materials and providing them with their own structure, enables the material to function with an encapsulating or targeting effect in a broad range of scenarios to perform a specific task.
Polymer Factory is currently strengthening its balance sheet through a rights issue, which will contribute with a maximum of SEK 8.8m before issuing costs. The strengthened cash position will enable Polymer Factory to invest more capital in its sales organization and accelerate the research of dendritic nanotechnology, which will be the driving force behind developing the Company’s current products. Given that the rights issue is fully subscribed, and the Company’s investment plan within research and sales, Polymer Factory is financed until Q2 2024.
Analyst Group Comments on the Rights Issue
Polymer Factory is well-positioned in a promising market with a strong tailwind due to the high growth rate of the Company's target industries. Recently, the Company achieved the prestigious ISO 13485 certification, which is an internationally recognized quality assurance standard. As a result, Analyst Group is optimistic that Polymer Factory will continue to enhance its market position and make significant strides towards achieving even greater success. The ISO 13485 quality assurance has significant potential to act as a trigger for the Company, as the healthcare industry heavily relies on assurances before implementing new products.
Additionally, high market growth is expected to enable Polymer Factory to capitalize on its attractive business model. Through several sales channels, Polymer Factory has established cooperation’s with a diverse selection of customers, such as pharmaceutical manufacturers, medical- and biotechnology companies, research universities, and chemical companies. The diversified customer portfolio enables the Company to focus on penetrating the sector where the current market outlook indicates the most substantial demand for Polymer Factory's products. Historically, the biggest challenge for Polymer Factory has been to get their products out on the market and increase brand awareness among customers who crave better solutions. With a stronger balance sheet, enabled via the rights issue, the Company will be geared up for an accelerated sales and marketing campaign during the coming year. With a pre-money valuation of SEK 11m, a favorable market trend, and several identified near-time triggers, which are expected to improve the Company's market position and, therefore, its revenue, is something that Analyst Group believes indicates that an investment in Polymer Factory invites to an attractive risk-reward if subscribing to the ongoing rights issue.
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