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On the heels of an announcement last week that Implant Sciences (IMSC) had shipped the largest order in company history to India's Ministry of Defense for a total value of six million dollars worth of product, Implant again made noise this week by announcing that it had secured contracts to provide its Quantum Sniffer (QS) explosives trace detector units to various agencies of the US Government.  The full order entails a total of twelve units, a combination consisting of both the handheld H-150 and the desktop B-220 units.  The significance of this order should not be ignored as many skeptical investors had questioned the company's ability to infiltrate the US homeland defense market, even as sales continued to grow overseas. 

Maybe of even more significant is the inclusion of the B-220 in this order.  That unit in particular has been under review for quite some time by the US Transportation Security Administration (TSA) for testing and validation and Implant officials have noted in recent conference calls that the process is nearly complete.  The fact that US government agencies are already jumping on board could boost the already confident opinion of many long-sided investors that the validation will soon turn into an all-out approval. 

Regardless, Monday's announcement is a sign that Implant's strategy of building an experienced sales and management force with numerous government connections - some of whom bailed from competing companies - could be starting to pay off in a big way. 

With government agencies starting to jump on board, another catalyst to look out for is the much-discussed infiltration into the air cargo screening market.  Those that have followed Implant are well aware that the TSA has set December 3rd - today - as the target date for all air cargo inbound to the US on passenger airliners to be screened for explosive traces.  Should that plan go into full effect, it could open another large market for Implant's technology.

Another positive stemming from these two recent announcement is that investors can rest easier that Implant will be able to meet its debt obligations to the company's primary creditor, DMRJ Group, LLC.  As noted a few months ago, the two sides agreed to push back until the end of next March some of the debt that was set to come due sooner.  While there are never any guarantees in the world of business and especially in the stock market, the road is being paved for this company to meet its obligations and alleviate any future debt concerns.

The notable boost in sales - and the potential for a further push into the US Government and homeland defense markets - may have Implant positioned to take its business to the next level.  Investors have long-waited for some of these catalysts to start playing out as they are, and with the pace of news developments picking up steam, Implant could close out the year with a splash.

Shares were trading higher by over seven percent on Monday morning following an eight percent drop last Friday.  Volume is up a bit, but still not to the point where investors may believe that the stock is attracting widespread interest.  That means the potential for even more significant moves higher could be in store once this story starts gaining more attention.

Worth keeping an eye on.  It's all starting to come together for this company.

Disclosure:  Long IMSC.

Contact VFC's Stock House: vfc@vfcsstockhouse.com

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