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  5. PRN: Hello. [Profound Medical Corp.]
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Investment Q&A

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Q: Hello....would you be able to explain the reasonably big drop in the last couple of weeks of this stock. Do you see it as a reasonable investment...thanks

Asked by Norm on March 09, 2022
5i Research Answer:

PRN in the past couple of weeks has reported earnings, with a disappointment on sales. It has received a couple of broker downgrades. But the biggest factor in the decline was likely the filing of a $100M shelf offering, which worried investors thinking there may be a financing ahead for the company. These filings do not obligate the company to raise money, and are only the 'paperwork', but can pressure a stock. PRN does have $63M cash right now. We still like it overall for the sector. It is certainly not risk free, but its decline is more or less inline with a lot of growth stocks this year. We would see it as a reasonable, but high risk, investment.