traded over 1 million shares for the day. That’s how IMGG cut off the loss series from the previous days and grabbed the up move at once.As Imaging3 hasn’t released any spectacular news since end-January, the most reasonable explanation for the impressive gain turns out to be yesterday’s announcement from the company. According to it, IMGG’s Board of Directors has approved the repurchase of an aggregate of up to 5% of its outstanding common stock by the company’s management, effective immediately. By stating that the repurchase program was in the best interests of their shareholders, Mr. Dean Janes, Chairman and CEO of Imaging3, immediately attracted investors and the massive trade was on. Though, the company is still in an FDA approval process, not clear when and if it is going to be completed.
Imaging3, Inc. is a provider of medical imaging devices for hospitals, surgery centers, research labs, physician offices and veterinarians. Last November, the company used to trade 50% higher than at present, however, since then the stock price has moved down.[BANNER]
According to the company’s annual report, during the past year its revenues have decreased, while the net loss has increased notably. On December 31, 2010 IMGG had a balance due to its CEO amounting to approximately $520 thousand for the amount borrowed by the company. Though, the current liabilities jumped over $5 million and Imaging3 has no sufficient cash to cover them. Moreover, the team of only 12 employees expects the trend of operating losses to continue at the current or greater rate as the company constantly spends money on product development and marketing.
Considering the fact that the management cannot assure it can achieve profitability, up to date IMGG depends mainly on its new repurchase program to continue operations.
