Recent Buy – NXNN

nxnn

I know, I just went way out in left field with this month’s purchase.  It pays no dividend, is running at a loss and will probably end up being a home run or belly up.  But I decided to gamble a little since my 2017 dividends will surpass last years’ next week.

As many of you are aware, I suffered a series of strokes a few years ago which probably fanned my interest in Nexeon MedSystems, Inc. (NXNN), which began trading on the OTCQB market on September 27th.  They are challenging – and improving – conventional therapy through a neurostimulation system that can be utilized to treat a variety of neurological diseases such as inflammatory bowel disease, arthritis, hypertension, and Parkinson’s and diabetes.  Research is underway for additional therapies including epilepsy, asthma, cognition, strokes and obesity.

Basically their products consist of an implantable device providing electrical stimulation to the nerves and brain recording the result and adjustment based on results transmitted via wi-fi using rechargeable batteries.  This is accomplished through a proprietary closed-loop system protected by a series of patents, CE marks (EU) and undergoing the FDA approval process.  Competitors in this space include Medtronic (MDT), St. Jude Medical (ABT) and Boston Scientific (BSX) with none possessing the ability to record neural activity.  They are in the second year of a manufacturing agreement with GlaxoSmithKline (GSK). 

They also have sold or spun several divisions similar (though on a smaller scale) to how Safeguard Scientifics (SFE) operates.

The listing process is a little unusual in that their S-1 was declared effective in June and trading beginning in September.  They expect to uplist to a major exchange which (my guess here – the company provides no estimate) will occur once FDA/CE approval is obtained to provide a catalyst.  They currently have a manufacturing plant in Belgium and a small R&D operation in Puerto Rico (which has moved to the mainland due to the hurricane).  Also, issues I have are ownership concentration in one family, two directors having been associated with a company the SEC has deemed delinquent in its’ filings, limited cash on hand and volatile price action as a pre-IPO issue.  We’ll see if the positives ultimately outweigh the negatives.  I initially purchased a less than 1% position at $1.49 giving me the ability to average down in a couple of more tranches if the opportunity presents itself.

Update 9 Nov 2017:  A similar technology was featured in the NCIS New Orleans episode The Accident on 7 Nov 2017 (S04 E07).  Note to self: review hack threat.

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2 thoughts on “Recent Buy – NXNN

  1. You’re welcome. I believe it has potential but it does carry risk. I think it all depends on the approval process going into 2018. I will say the PT by SeeThrough ($2.40) appears to be a paid gig. But NXNN did get a National Heart, Lung and Blood Institute grant on Thursday for asthma research. So it’s way outside my norm but I would still be unaware of this line of research had I not had my strokes.

    Thanks for reading!

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