AUVI - Applied UV: Micro Cap May Have Secured A Coup With Airocide Acquisition
- Applied UV's shares recently traded as high as $19 on news the company had acquired Akida, owner of Airocide technology, before settling at $9.5.
- Airocide - which reportedly made sales of $4.9m in FY20 - is highly complementary to the SteriLumen ultra-violet LED disinfectant technology that Applied UV is ready to bring to market.
- Applied UV IPOd last year, raising just $5m. Besides SteriLumen & Airocide another subsidiary, Munn Works sells mirrors and other vanity products to blue-chip hotel chains.
- SteriLumen will target the healthcare setting initially, while Airocide - a 20-year-old product - is already sold across multiple markets including healthcare, commercial real estate, and hospitality.
- Applied UV's market opportunity is large. With good stewardship and use of funds raised via the markets, shares may be undervalued relative to future performance in my view, although the level of risk is high.
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Applied UV: Micro Cap May Have Secured A Coup With Airocide Acquisition