How Risky Is It To Invest In Genedrive (GDR.L) Shares ?

Genedrive declines 1.96% in today’s trading session. The price is standing at 50 GBP which is 1 GBP less since the previous close. The company was moving in a downgrading shift since 2016 when it finally increased its share prices in May of 2020. The value tripled and peaked at 170 GBP. Nevertheless, it seems like the shares are going down once again. The company is not profitable with an EPS rate of -34.4. Genedrive has no debt and £3.8 million in cash on its financial sheet when it was last reported in December 2020. It spent £6.3 million in cash last year. As a result, it has about 7 months of financial runway starting in December 2020. That is a very limited financial runway, implying that the firm either has to lower its yearly cash burn or replenish its cash.

Genedrive’s cash burn accounts for roughly 14% of its market value, with a market capitalization of UK£45 million. Given that circumstance, it is safe to assume the firm would not have a hard time acquiring further funds for expansion.

Paul Meyer

Part-Time Reporter. Paul could do better in his engineering profession where he became a real pro. However, he chose the finance field to find a tranquil environment in his career. Today he creates a good number of great content for our team.

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