Why the EMvision (ASX:EMV) share price is going nowhere

The EMvision (ASX:EMV) share price is unchanged today after the company announced a trading halt on Friday. We take a look at why.

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asx share price in trading halt represented by business man stopping falling row of dominoes

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EMvision Medical Devices Ltd (ASX: EMV) shares are unchanged today after the company announced a trading halt before market open on Friday. At the close of market on Thursday, the EMVision share price was trading at $2.42. 

Let’s take a look at why the small cap medical imaging company requested the pause in trading.

Why are EMVision shares paused?

The EMvision share price was brought to a standstill on Friday morning pending a further announcement by the company. EMvision has advised it is awaiting the outcome of a grant funding application and has requested its shares remain in the halt until the announcement is made or the commencement of normal trading tomorrow.

How has EMvision been performing?

Last Thursday, the EMvision share price was being pushed higher after the release of the company’s half-yearly report for the period ending 30 December 2020.

EMvision reported strong revenue performance, delivering revenue of $1.67 million which was up 48% on the prior corresponding period (pcp). Nonetheless, this did not stop the company from posting a widening loss as it reported outflows of $3.21 million, up 78% on the pcp.

During the half, the company had grant income of $0.36 million, while it also received government support of $50,000. Operating expenses were principally made up of research and development costs associated with its technology.

Operating cash outflows for the half year were $1,059,119. However, thanks to the issuing of new shares financing, cash inflows came in at $8.7 million. As such, the company had a net asset position of $12.9 million as of 31 December 2020.

Commenting on the company’s progress, management stated that:

As an early stage company, the company’s business model is highly dependent on the achievement of continued technical development success as well as future funding, customer engagement and general financial and economic factors.

About the EMvision share price

It has been an average six months for the EMvision share price which has seen a rise of 7.56%. In comparison, the All Ordinaries Index (ASX: XAO) has returned 12.2% over the same period.

EMvision is an Australian company focused on the development and commercialisation of medical imaging technology. Primarily, it is focused on developing a cost-effective, portable, medical imaging device using electromagnetic microwave imaging for diagnosis and monitoring of stroke and other medical applications.

Based on the current EMvision share price, the company has a market capitalisation of around $171 million.

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Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of EMvision Medical Devices Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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