Beyond Nasdaq…Monogram's stock has “significant potential catalysts” ahead

This is sponsored content.  Barchart is not endorsing the websites or products set forth below.

Monogram Orthopedics (MGRM) has been in a bullish pattern of late, seeing its stock up roughly 40% since its May low. Now there’s even more good news for the stock: a recent report from Zack’s projected MGRM shares could be worth $6.00 a share, a 100% increase from their current share price.

Why does Zacks project MGRM to reach $6 per share? When taking into account Monogram’s 2nd quarter financial results, its recent FDA submission to market and commercialize its tech, and more, Monogram shows tangible progress toward commercializing its potentially best-in-class orthopedic surgical robots.

Upon commercialization of its technology, Monogram possesses the potential to produce strong, consistent revenue growth in the press-fit implant space. But they bolstered their case even more when they announced a new strategic collaboration with Shalby Limited (NSE: SHALBY), the largest orthopedic hospital chain in the world, for multicenter clinical trials in India to demonstrate the safety and efficacy of their patented mBôs system technology. 

There’s also the added appeal of Monogram’s current 8% dividend-paying preferred share investment opportunity. This offering, which is scheduled to close on September 12, provides investors with shares in the company priced at just $2.25. The unlisted preferred shares are convertible 1:1 into the common stock. 

The Pressing Need in Front of Monogram

In today’s surgical landscape, just 12% of knee replacement procedures are robotic, but by the year 2027, that figure is projected to rise to 50%. Like in many industries, automation in orthopedic surgery appears to be inevitable. Monogram appears to have positioned itself to capture a portion of a substantial $19.4B market with its patented robotic surgical system.

In 2021, there were 223,900 knee replacement surgeries – a number expected to more than double by 2027. 83% of these surgeries are currently cement-based. These procedures operate using standardized processes and prosthetics, and the end results are overwhelmingly unsatisfactory. If Monogram’s technology receives FDA approval for commercialization, it will introduce press-fit knee procedures – or cementless – as the new industry standard.
The company has the distinct goal of creating a high-accuracy saw cutting robot to allow for personalized implants and better patient outcomes. This focus on efficiency and long-term results has the potential to improve the process for both practices and patients.

An All-Encompassing Product Focus

For surgeons, Monogram’s technology could allow for patient-specific, pinpoint-precise procedures at previously unseen efficiencies. Outside of the automation of such an intensive task, this tech could unlock previously unseen levels of productivity and volume for this industry. Monogram made painstaking efforts to develop a system that could help surgeons execute their surgical plans as accurately and efficiently as possible. Its technology’s goal is to be a system that safely and accurately cuts regardless of skill level or experience.

The patient, meanwhile, stands to benefit from a customized procedure that’s designed specifically for their needs. As it stands today, 20% of knee replacements produce unsatisfactory results. The volume of knee replacement surgeries – almost 1.1 million per year – means these unsatisfactory results place further stress on the healthcare system to fix. For patients, Monogram’s focus on accuracy and safety figures to resonate exceptionally.

This dual value proposition helps further Monogram’s growth potential. If they are successful in their application for FDA approval, they will be able to bring it to market and begin commercializing their advancements. In light of the Zack’s projection of $6 a share, the preferred share offering priced at $2.25 per share offers intriguing upside.

Monogram’s Preferred Share Offering
The preferred shares pay an 8% annual dividend, which is cumulative and can be paid in cash or common stock. In addition to the dividend, these Monogram shares offer…

Liquidation Preference: If the company is dissolved or sold, preferred shareholders are entitled to be paid $2.25 per share before common shareholders receive any money.


Conversion: Preferred shares can be converted into common stock at any time at the holder's option, at a 1:1 ratio, meaning one preferred share can be exchanged for one common share (e.g., 10 preferred shares convert into 10 common shares). 
Redemption: The company can choose to buy back the preferred shares. Initially, this can be done at $4.50 per share during the first 180 days of the offering, with the price decreasing after that period. 


Warrants: Each warrant allows the purchase of one share of common stock at $3.375 per share, exercisable after 180 days from the offering date through July 8, 2025. For example, if you purchased 1,000 units and the stock was $5 during the period when the warrant could be exercised and before expiration, you could exercise your warrant and receive 1,000 common shares in exchange for $3,375, but the shares would be worth $5,000, resulting in an unrealized profit of $1,625.

With several critical milestones on the horizon, Monogram is scheduling this opportunity to come to an end September 12 – giving a short window to invest in this vision. 

Disclosure:

* This is a paid advertisement for Monogram Technologies Series D Preferred Stock offering. A prospectus supplement and accompanying base prospectus have been filed with the SEC. Before making any investment, you are urged to read the prospectus supplement and accompanying base prospectus carefully for a more complete understanding of the issuer and the offering.

The securities offered by Monogram are highly speculative. Investing in these securities involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Investors must understand that such investment could be illiquid for an indefinite period of time. There is no existing public trading market for the Series D Preferred Stock. Monogram does not intend to apply for listing of the Series D Preferred Stock or the common stock purchase warrants on a national securities exchange or quoted on an over the counter market.

DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.

The above is sponsored content. Barchart was paid up to nine thousand five hundred dollars for placement and promotion of the content on this site and other forms of public distribution covering the period of August 29, 2024.  For more information please view the Barchart Disclosure Policy here.