Zomedica Corp. (NYSE American:ZOM), a pharmaceutical company focused on veterinary health, has entered into a new lease agreement, signaling an expansion of its headquarters. The lease, commencing on February 1, 2025, was signed with 1101 Technology Drive, L.L.C. for a property located in Ann Arbor, Michigan.
The new facility at 1101 Technology Drive, Suite 100, spans 15,371 rentable square feet and is set to replace Zomedica's current headquarters once the existing lease with Wickfield Properties LLC expires on January 31, 2025. The agreement includes a term that extends through January 31, 2030, with options to renew for two additional five-year periods under similar terms.
Under the terms of the lease, Zomedica will be responsible for utilities and a proportionate share of operating expenses and taxes, which are capped at a 5% annual increase over the previous year's expenses and taxes. The financial details of the base rent were not disclosed in the press release statement.
This move by Zomedica is indicative of the company's growth and the need for larger operational facilities. The lease agreement was formalized on November 15, 2024, and was publicly filed with the Securities and Exchange Commission (SEC) on Tuesday, reflecting the company's compliance with regulatory requirements and transparency with its stakeholders.
The information provided in this article is based on the SEC filing and does not contain any speculative or promotional content. The lease agreement is documented as Exhibit 10.1 in the SEC filing.
In other recent news, Zomedica, a veterinary health company, reported a record Q3 revenue of $7 million, marking a 10.2% year-over-year growth. This is the 14th consecutive quarter of revenue growth, primarily driven by an 80% increase in TRUFORMA platform sales. However, the company also reported a net loss of $6.7 million for the quarter. Despite this, Zomedica maintains a robust cash position with $77.8 million on hand and has set a target for reaching profitability with a revenue goal of $100 million.
The company anticipates achieving cash flow positivity by 2026. Zomedica also plans to expand its international presence, with international sales currently representing 15-20% of total revenue. The company has also announced new product launches and enhancements to existing lines, including plans for equine product versions in 2025.
Lastly, Zomedica is currently in the process of searching for a new CFO, with future growth guidance expected in the New Year. These are the recent developments in Zomedica's business operations and financial performance.
InvestingPro Insights
Zomedica's recent lease agreement for expanded headquarters aligns with its current financial position and market performance. According to InvestingPro data, the company has a market capitalization of $126.51 million USD, reflecting its size in the veterinary health sector. Despite the expansion plans, Zomedica faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern given the new lease obligations.
On a positive note, another InvestingPro Tip reveals that Zomedica "holds more cash than debt on its balance sheet," suggesting a level of financial stability that could support its expansion. This is further reinforced by the tip that "liquid assets exceed short term obligations," which may provide some reassurance to investors regarding the company's ability to meet its new lease commitments.
The company's revenue for the last twelve months as of Q3 2024 stands at $26.73 million USD, with a revenue growth of 11.33% over the same period. This growth trend could potentially justify the need for larger operational facilities.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Zomedica, providing a deeper understanding of the company's financial health and market position.
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