Skyline Medical Inc (NASDAQ:SKLN) Scores Again, Bull Thesis Strengthens

Skyline Medical Inc (NASDAQ:SKLN) just scored another win, and the company is running up on the back of its announcement. It relates to Skyline's Canadian operations, and could be a game changer from a revenues collection perspective going forward.Here's what's happened, why it matters, and what we're looking for next.We covered Skyline in this article at the start of November, and in that coverage we concluded with the suggestion that the company is probably going to have to dilute near term in order to fund its sales and marketing efforts, but with the upside on offer if and when these efforts come to fruition, this dilution is well worth shouldering on a long term position.The recent run vindicates this conclusion, with the company up more than 41% on its early November capitalization. The latest announcement detailed a Canadian license for the Streamway system, Skyline's lead asset.For those not yet familiar with Streamway, it's a system that allows for the collection of surgical waste fluids direct from the patient. Basically, it hooks up to the wall and a tube runs from the system to the patient. As the surgeon operates, the system collects any fluids for disposal, runs them up the pipe and disposes of them direct to the facilities waste management system. Current systems require staff to handle waste in collection tins, and then require the transfer of this waste a disposal system in big canisters. It's inefficient, costly and – to a certain degree – dangerous.Streamway does away with all the inefficiency. Bottom line, it's a great product, and this is what we've been focusing on in our to-date coverage. Of course, a great product isn’t all that's required to return value to shareholders. That product needs a solid strategy behind it, and it's this strategy that Skyline management is currently in the process of executing. One of the key elements of said strategy was to open up the Canadian market, and in order to achieve this, Skyline needed to pick up a Medical Device Establishment License to sell its system and related disposables north of the border.It just did, and that's why it's gaining strength. The company essentially doubled in value on the announcement, representative of how much difference the now-open Canadian market could make for the company's top line going forward.As of September 30, 2016, Skyline Medical customers have installed 96 Streamway systems in 50 facilities across 19 states. With some Canadian distribution agreements in place, a number of which the company is currently working on as was announced alongside the license announcement, the company will have access to more than 1500 fresh hospital targets in all 13 provinces of Canada.Essentially, the news has doubled the potential market for Skyline.So what are we looking for next?Now, it's all about getting these distribution deals signed and sealed, and the entities responsible for doing the selling in various regions doing just that – selling, and collecting revenue.The risks on this one remain the same as they have been for the past twelve months, although with each new market opened, they diminish a little more. As mentioned above dilution is pretty much a sure thing, but we're expecting some significant top line improvements over the next twelve to twenty-four months, and as these improvements roll in in the form of quarterly reports, any per share value lost by way of dilution should quickly be swallowed up by gains in market capitalization. Very much one to keep an eye on. Not without it's potential downside, but plenty of reward on offer if the sales teams get to work.We will be updating our subscribers as soon as we know more. For the latest updates on SKLN, sign up below!Disclosure: We have no position in SKLN and have not been compensated for this article.