Yesterday, IMDS closed the market at $0.043 with a 11.69% increase in the closing price. Within the session, IMDS jumped up to $0.045 and the total volume traded amounted 7.75 million shares. Although the stock has the impressive over 790 P/S ratio, the industry average being only 1.79, the news from last Wednesday shows that there is still potential for even more optimism on the market.
Since the company announced that it has received deposits for two of its CTLM systems from its distributor for India and Indonesia, the share price is going straight upwards. According to the announcement, the first system has already been installed and the next should be installed next month. Though, on the background of IMDS desperate financial condition and lack of any other sources of revenues, it is doubtful if investors see near-term profitability for the company’s operations, or just expect short-term trading gains on the next announcement.
Today, the reaction to the SEC filing from yesterday will also be interesting. Yesterday, Imaging Diagnostic filed a registration withdrawal for a previously filed registration statement according to which 35.49 million new shares of common stock were supposed to be issued pursuant to the company’s $15 million Private Equity Credit Agreement. The gross proceeds that the company would have received were $1.215 million.
