Sigma Labs, Inc. (OTCMKTS:SGLB) Surges in Volume

08SGLB_chart.pngAfter a week of slower trading and gradual decline in share price, on Tuesday Sigma Labs, Inc. (OTCMKTS:SGLB) surged dramatically in both volume and price. The company closed over 13% up and stopped at $0.127 per share by the bell. Share volume increased significantly to over 10 million – the largest for the past three months.

The reason for yesterday’s surge is difficult to pinpoint. The company published no new filings and made no press announcements that could have triggered such a move. The previous spike of SGLB that took place on June 19 was obviously connected to a press release of the same date. In it the company announced that Sigma acquired a latest-generation 3D printer from Electro Optical Systems GmbH (EOS) and was preparing to install its proprietary QA systems to work with it.

The quality assurance tools are the reason Sigma is in the additive manufacturing business. SGLB attracted investors’ attention with their PrintRite 3D system and its DEFORM and INSPECT modules. The system seeks to offer reliable in-place quality assurance and inspect the manufacturing process as it goes along, preventing and correcting any mistakes before they happen. This is a dramatically different approach compared to the usual inspection of a part that has already been manufactured and is being scanned for imperfections.

The company’s last published financial report covers Q1 of 2014 and contains the following figures:

  • $4 million in cash
  • $97 thousand in total liabilities
  • $114 thousand in Q1 revenue
  • $466 thousand in Q1 net loss

13SGLB_logo.jpgThe company grew its cash position significantly through a private offering of 43.7 million shares sold in early January 2014, for proceeds of $3.3 million. The shares were issued at a slight discount even from the price levels SGLB was trading at in January. Revenues are still derived from services only as Sigma still hasn’t commercialized its PrintRite. CEO Mr. Cola explained that having an in-house printer as advanced as the one obtained from EOS will help Sigma push and commercialize its two PrintRite components within 6 and 9 months.

Hopefully the company does not extend those deadlines any further. After postponing the expected commercialization dates several times since the autumn of 2013, Sigma may finally need to stand and deliver by the end of 2014.

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