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Jarrod Wesson
Published on
November 21, 2017
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"BREATHTEC BIOMEDIC (OTCMKTS:BTHCF) is Unaware of Any Material Change."This is what BTHCF said to the Investment Industry Regulatory Organization of Canada when asked about the recent market activity.From $0.06, the share price spiked up to $0.15 in only a few days.Have a look at the recent share price action: 1 year chart for BTHCFBut, that is not the only unusual market activity.The amount of shares exchanged recently has also been astonishing. More than 1.5 million shares have been exchanged, which is the highest volume in a year. Check the following two weeks stock chart and form your own opinion: Two months chart for BTHCFBusinessThe company was founded on April 10, 2015 in Canada and is headquartered in Vancouver. Its main activity is the research in the area of breath analysis as a medical diagnostic tool. The strategy of BTHCF is to develop innovations in the field of specialized mass spectrometry.The following video is the best way that we found to explain the devices being developed:[embed]https://player.vimeo.com/video/153304921[/embed]SourceWe believe that one of the most interesting assets hidden in this company are the intangibles. It has signed several licenses with universities and other institutions. The following is from the last quarterly report: IP assets BREATHTEC BIOMEDIC(OTCMKTS:BTHCF)According to the report for the period ended on May 31, 2017, the value of these licenses is CAD$103,464.But, that's not all. The company has also signed research and development agreements with the University of Florida, under which the company receives assistance from the UF. This means that academic professors are working for the company, which shows the high reputation BTHCF has in the field.Recent Developments2017 has been an interesting year. The company released that it has been undertaking several transformations, which may explain the recent share price volatility in the market.On March 17, 2017, the company gave a presentation at the 2017 Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy (PittCon), which was said to be a success. The FAIMS technology, the company is specialized in, was the subject of the presentation, which was entitled "Metabolomics: Breath as a Sample for Clinical Analysis." Readers can find it here.The most significant highlights from the company were that the team is making a lot of progress and the the design and the device's capabilities are advancing. The following were the most significant words of Dr. Costanzo:

"The continued development and foreseeable clinical benefit of a portable screening device has garnered overwhelmingly positive feedback from our peers and practitioners in the health care community." Source

We appreciate not only the progress made with the new device, but also that the company is working on public awareness. Nearly 13,000 conferees and exhibitors in the field of analytical chemistry attended PittCon. Thus, the company had the opportunity to expose the work done and meet potential clients. This type of marketing efforts pay off in the long term.On May 18, 2017, BTHCF released a new strategic alliance and research agreement with ZeptoMetrix™ Corporation, an industry leader and innovator for Infectious Disease Diagnostics and Development. The market did not react to it when the news was released, which we believe was a mistake.The company noted that it was planning to conduct a study to identify biomarkers associated with the Zika virus, which was, at that time, a very significant concern by many governments in the world.Furthermore, the company also noted that it continued to progress its flagship FAIMS technology with advanced performance testing of its V2 prototype nearing completion. Additionally, it was said that the new developments were going to be subjects "of new and important intellectual property scheduled for patent applications." In our opinion, the market failed to recognize the progress made at that time and may be reacting right now.On top of it, more executives are joining the company. Mr. Alfred Wong was elected as the new Vice President, Corporate Development and Communications. We appreciate his profile, because he has expertise in the capital markets and will be able to enhance shareholder value.The company also noted that Mr. Kal Malhi decided to pursue other opportunities and was stepping off as President and Director. The CEO, Mr. Guy LaTorre, had been elected to serve as the new President. He held this role until September 20, 2017 when he decided to leave the company as well.As we said earlier, large transformation and restructuring are going on inside the company. From our point of view, changes are always welcomed by the market, as opportunities tend to arise in these periods.What's happening in November?The share price spiked up in November without a clear justification.Have a look at it: 1 month chart for BTHCFBreathtec Biomedical, Inc. noted that the management was "unaware of any material change in the operations of the Company that would account for the recent market activity."What's our take?Since the company highlighted that nothing inside BTHCF is happening, there should be something or somebody outside the company creating the share price volatility. If a new shareholder is buying shares, he/she will have to communicate it to the OTC Markets soon. It will be shown here. Be alert and check the site from time to time, as a new announcement could make the share price spike up. If you don't have the time to do so, please subscribe to our email distribution list.ConclusionCurrently trading with a market cap of $6.6 million, BTHCF is an exciting story among small caps. With $1.2 million in cash and only $22,000 in total liabilities, the financial situation of the company is another thing to like. To sum up, this is another interesting name to follow closely!We will be updating our subscribers as soon as we know more. For the latest updates on BTHCF, sign up below!Image courtesy of Kellymarie Stamper via FlickrDisclosure: We have no position in BTHCF and have not been compensated for this article.

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