Traders rushed to acquire more stock of Medipattern Corp. (CVE:MKI) (PINK:MKIFF) after the company issued an update on the availability of Visualise:Vascular product.
MKI gained 48.2% on Monday under a trading volume of 5 million, which was significantly above the average of 347 thousand. The stock price also went above its 50-day average which could now provide some support in case of retracement.
The company said on February 13 their Visualise:Vascular imaging software is now used in four states throughout the US. Those are New Hampshire, New York, New Jersey and Pennsylvania.
This is part of Medipattern’s plan to gradually roll out their product, targeting vascular surgeons, interventional cardiologists and vascular radiologists. The full blown national launch is yet in planning phases as the company is still refining their sales model and strategy.
The current strategy relies on initial product purchases and license renewals. The financial effects seen to date are not great. The company’s negative book value increased eight times over the past year. No increase in sales has been recorded on the official income statement yet.
This suggests that the recent price increase will not last. It was mostly an emotional reaction which isn’t backed by direct financial improvement and moreover the press release also revealed uncertainties about the general product distribution strategy.
