BREAKING NEWS: Lexagene Holdings (TSXV: LXG) (OTCQB: LXXGF)
I has everybody doing today this is richer behalf of rich to be live with our very special guest it is darrell rebec of lexa jean holdings inc how you doing today darrell good thank you thank you for joining us today i’m very excited to be learning a little bit more about lexan so why don’t we get started with you telling us a little bit of a lexie gene and how it
Got started we started early 2016 jack and i are the founder and co-founders and basically it was it was two patents that jack had two livermore labs so this is probably well it is 15 to 20 years in the making started at livermore classes which is department of homeland security and defenses research term so there it was developed for bio threats actually like
Weaponized smallpox and anthrax just great prevalent after the 9/11 attack so jack was lead and mentor on those products which had about 20 million put in from portland defense had another two million put in from nationalist to the health for flu pandemic and then was shelved for quite some time after that when those threats became not so relevant anymore and in
2016 jack and i met with the idea of building this company and an automated sample to answer very easy to use very cheap very accurate analyzer for the other markets that are that or other underserved so we met in 2016 raised money privately and then went public october 2016 so today that’s you know 15 to 20 years in the making we raised 27 million canadian for it
Since the 22 million u.s. was put into it before in the predecessor technologies 12 million of that is in the last 50 months alone so we put sort of i’d say i guess if i do the conversion right you know over 40 million u.s. into this product in almost 20 years so it’s been a long time being working on when people sometimes see it and and see that from a singular
Point of view it’s actually a very long process and a very long in development period that’s being years and years decades of the making a lot of money so it’s we’re almost there it’s it’s perfect timing very good now you’re coming to a market with new testing system that has many applications cova 19 being one of them what is this technology and how does it meet
The needs we are seeing during this pandemic yes it’s really interesting and relevant as actually it’s it’s it’s a bit of a it’s very my entropy for lack of a better word but when we started this company we started it as a pandemic prevention tool jack did his doctorate on influenza which obviously includes pandemics and spanish flu and such and and what another
Thing that we did with his instrument is develop this open access capability so it is pcr based which is the gold standard if you look at some of the interviews with bill gates and and others some even folksy pcr is the gold standard it’s very accurate it’s very specific this specificity and sensitivity is where everybody wants it to be one of the limitations on
Machines was easy use which is something where most of our credits of our sorry our competitors need a licensed technician you need some pipe fitting you need some sample prep you need a lot of different steps before you get to the actual pcr part so the first step that we had was let’s make something where you collect the sample you input in the machine you hit a
Button then you get an hour later you get the results it’s just something that you know if you’re gonna penetrate some markets that don’t have a lab technician and you want to replace that person potentially you need to be very easy to use such as that the other thing which was something we’d be talking about for years which was very hard to illustrate to people
Was this open access capability and it was hard to give people examples of why do some open access and what that means is you can load your own assay onto the machine and start testing right away where that’s really relevant which has become something that has garnered a lot of attention lately is we now in this pandemic have proven that if you have a new gene
That sequence which we got we took those cdc assays in two days we had the results and it was running on our machine you can run it all the time if you look at a lot of our competitors gene with sequence in january they were getting hugh a clearance in march and april and may they have 10,000 employees so they were fully on this whole process of getting to that
Point but because their cartridges are a little bit more complicated because there’s different steps to because a lot of them have asses that you have to embed in the cartridges they can’t get it ready till that much time so in the next pandemic or if this involves into a whole different pandemic or pathogen we are the most well suited to start testing right away
And even right now which is very important is we have a policeman in a hospital right now which is a huge athlete for us the reason that’s so interesting is the hospital has all our competitive our competitors machines wow that’s impressive now everybody says they have the cure everybody says they’ve got the vaccine why should investors pay attention to lexa gene
In a market where so many company to have the answer what sets lexa gene apart that’s a good question and you know in general in diagnostics i think one of the big things is there’s a lot of people who say they can do what they do and it’s better in the small cap side and if we’re going to compare two small caps it’s a very easy one for us to do very transparent we
See how the instrument works online we have a video on that so it’s not something where it’s like i wonder how that thing’s doing what it’s doing we actually are transparent about that which was a hard decision to make at some point you don’t to get way all the secrets but there’s enough in there that we’re not showing that this would be hard to replicate but and
We talk about our data and testimonials or whatever it may be so on the small cap side you have a law we do it all but when you go to their website so you try to get some info you really can’t find the data points you can’t find the testimony you can’t find the placements acceptor so that’s on the small campsite on the mid nap and large camp depending on different
Technologies they are working and we’ve been seeing this for some time as if many others but if you look at some of the tests that are you know 15 minutes people are saying you know that’s gonna put you out of business but those tests aren’t accurate that they aren’t working there’s too many false positives a problem with false positives or false negatives more false
Negatives actually sorry is you’re sending people away saying i don’t see it right now you’re probably ok but just be careful but when a doctor tells you that you have this false sense that ok i don’t have it right now and doctors don’t want that pcr-based as well is also gonna find it very early so if you look at immunoassays i’m or antibody tests you don’t develop
An antibody or antigen so they twelve or thirteen so if you’re looking at someone that’s four days into an infection you’re not gonna find that pcr based our machine you’re gonna find that in four days and say okay you have it it’s very early we need you to be careful if you drink lots of fluid you need the rest eccentric cetera so when it comes to where technology
Works is that it does work really well it works in an hour it’s not fifty minutes but those don’t work we could probably do it in 45 minutes if we remove sample prep you won’t get as robust of the system or as robust of an answer but you have the system now really that to envision it from day one is it’s such a small easy-to-use system that you and i can operate
It so it does open up the possibilities of anywhere so you could see it in and we’ve talked about this for years border control cruise ships obviously airports eccentric cetera so you know anywhere that anyone can use it opens up this box to believe where the industries are so there’s a lot of other contest competition sorry but not a lot of people who can adapt
So much to so many different industries so coby it is one part of the the target market for us and we wanted to be clear about that when we started the company we were really actively pursuing veterinary diagnostics and food safety is there’s literally no competition there because you can’t like their their cost down enough so the whole kovan issue right now which
Is very relevant to everyone in the world obviously is something that is a bonus if you want to call it that based on the fact that the whole human clinical market is very crowded it’s very competitive you have most of the multi multi-billion dollar companies and cost and ease of use as much of a benefit because you do have labs with you have practitioners and lab
Technicians all over the place and you do have a payback system that actually affords you to charge more for your tests that diagnostics not so much food safety absolutely not it’s very cost-conscious so to come in in these industries food safety in event diagnostics and water quality for example alone are almost twenty billion human clinicals twenty two so one of
The things we’ve always said is we’re not pursuing them all because people say you have to focus but we have the applicable nature to the mall which is very rare for diagnostics company wow now where is technology currently being used and what plans of expansion can you talk to us about we’re using it in a hospital ms which is a huge step for us in the sense that
We are now showing people who have questioned for a while and you know can you test for coover that’s all people really care about these days and i totally understand that you know kenny difficult kenny self record why are you testing for kovac so that hospital placement was it was a huge deal for us this is something that you know we decided again it’s not our
Main industry we’re going after but because you can get you a clearance and because you can get your machine cleared by the fda because they’re fast tracking everything you’d be foolish not to go that way and that industry and that division or that aspect scheming clinical side if that does take off obviously that can make your company but still click otherwise
Where we again have the added benefit is human clinical if it subsides a little bit or testing suicides whatever maybe these other industries are still you know in huge demand of our technology so it has been placed in a veterinarian clinic they had four operating rooms it was right in the middle of them again they’ll take a sample they walked over to the machine
They hit a button they come back an hour later and like go to the dog and they’re exactly what’s wrong with that pet so that is online we have a testimonial video which is very positive in terms of what that did to their business but we really rounded out the whole product nature of listen we can apply to all these very very well and it really opens up the possibility
So when we’re commercial in october we will have two salespeople in bed without to be salespeople include well two people in clinical but it was always the plan that said which is very interesting and exciting right now our plan to human clinical was much later but that’s now been fast-tracked which for investors is a huge bonus wow now one of the things that in
Our community we really look into is share structure can you break down the company share structure and maybe how much is being held by insiders i think this four points weren’t are gonna expire shortly and a lot of those warrants are much much higher so they’re definitely not affecting the ceo structure so we’ve always tried to you know my previous companies if
You look online we sold one and we still part of the other one but we’re always very cognizant to share structure something that we’ve done you know very very diligently over the year the first company we had you know four years in we had sixty million out we sold it for 379 this year and we understand if you have two hundred million out that’s a dollar sales so
Same alexa t and we do a lot of different raises at different times and smaller raises even though we can do larger ones because we’re always try to protect that share structure for people so we’d like to keep it under a hundred i think once you get you know glue and share structure it just really changes the mass and it changes the advantages for shareholders to
Capitalize some of that value so we run it really tight in the sense that you know we run it almost low all the time that we raise money except eccentric based on the fact that we try to keep that in a level that investors may okay if i do the math this is actually a very successful venture for us so the share structure again is around 100 fully diluted this is four
Years in which is being you know very very positive in terms of development on that part insiders own i believe around 13 or 14 percent right now jack and i are the largest holders we were ten percent holders i think we’re down to six or whatever it may be now but you know so good sharyl their ownership i’m in that ownership it’s being really when jack came to me
In october 2016 my career previously was a senior bpa canaccord for 15 years and then i left and sold one company and then built a company up to 350 million dollar market cap and when i see company so we had a really good following and a good group of people have worked with probably for at that time seventeen or so years so those people came over to lexington and
They’ve been really strong supporters so a lot of that share structure the same people that be there since day one so to see how we trade it trades really well it trades in a great fashion it trades decent volume but not a huge amount based on the fact that we’ve core group of shareholders so we always kind of say in that hundred million you could probably put you
Know seventy five percent of it in a room right now if you wanted to so it’s well hell it’s well followed and it’s something where it’s not going to be one of these companies where their shares are all over the place every time you get some movement you just get all this interference with whatever made very good what can you tell us about the coming year what’s on
The horizon for lexi jean in 2020 yeah so the coming year is really exciting and and this is something where you know every small cap investor and every person running a start-up the biggest momentum are the biggest accolade you’re looking for or event is your commercialization when you’re going into sales when you start selling so we’re four years in the making
A lexington alone again the products fifteen plus in the making and it’s at the point now where we’ll be commercial in q3 we’re really transitioning from that pure r&d company into a company that’s gonna sell into these markets and if you look at what everybody wants obviously that’s what you want let’s get into sales let’s start getting going let’s get into
Cashflow positive as then also open up things like a nasdaq listing which we’d be talking about to get full penetration for all investors because again that the list is sometimes a hindrance i think as an investor you’re looking at you know a du listed diagnostics company that has a very small market cap compared to its peers because of a more unknown position it’s
Not on the nasdaq it’s something that’s being you know really quiet rd to date and now going into sales so i think as an investor you know what do you want to look for you always want to look for something before everybody else find out about it and i think you’re you’re looking at something that in the next couple months more or people are starting to hear about
It when you get into sales you’re gonna have an influx of people who are talking about it investing in it etc again a nasdaq listing potentially in the future that is the next step if you do it properly i mean all that sort of thing so we just got listed in forbes for the second time actually a couple weeks ago we had an article written on it so it’s starting to
Get to that point the vest you okay if that checks on the box its thought did share structure it’s got very strong management i urge you to look at management there’s hundreds of billions of market cap experience and hundreds of years experience and multiple multiple products launc i’d say probably in the realm of about 50 so we have the experience with a small cap
Site on the startup side but also on the major side as well which is very important so if you look at all these factors and then you go okay and it’s relatively unknown but that should change so that to me is a vest or something you look at i go that’s all my box is where if everyone knew about it and we’re treating at a market cap which is more reflective of what
We’re doing then it you you have to dig a lot deeper you’d still find that there’s a lot of ality here but i think there’s a mentality right now the fact that you know we are gonna be a real competitor in this landscape but no one really knows about us we have a very very low cost per test for talking around ten dollars we can make money and all these industries
And a lot of it because our cost per test is so low and as far as we know it’s the lowest in the industry so we will be cashflow positive way faster than all these other companies that would in short order so if you look at a comparison of revenues but more importantly cash flow positive diagnostics company growing etc and you’re looking at a market cap now of so
You do a hundred i mean you’re looking at market cap of around you know forty five million u.s. that starts to get really appealing now let’s say you’re an investor or your shareholder or your company that wants to do a joint venture how does somebody get in contact with lexa gene the websites very informative there’s a how it works there’s testimonials videos are
All the articles are on there so there’s a lot on there that you know third party as well forbes obviously you can’t pay for it’s not one of these paid for marketing programs if they write you up you know the writing up because they like what you’re doing and they agree with what you’re doing and they vetted what you’re doing well you know what we’re really excited
To learn more about the story i know that our entire community is gonna be watching very very carefully and very very closely continue all the hard work and effort in the game fantastic work you’re doing especially in this pandemic congratulations on all your success so far and we’re gonna be watching very closely to see the story unfold and see this company get
To revenue and operable so very excited to see that we love to find undervalued underappreciated underexpose companies before they explode so thank you for sharing your story and we wish you all the best of luck in your future oh thank you so much and same to you guys and any time just three gentlemen okay guys thank you so much this narrow rebec from lexa jean
Holdings inc put on your watches put on your radar we think it has a chance to do very very well thank you for watching everybody every cell it’s a great
Transcribed from video
BREAKING NEWS: Lexagene Holdings (TSXV: LXG) (OTCQB: LXXGF) By RICH TV LIVE
