The Deep Dive has compiled a company overview for that of Datametrex AI Limted (TSXV: DM), a Canadian based company that is focused on AI and Machine Learning through their wholly owned subsidiary Nexalogy, with a recent focus on COVID-19 testing kits.
Nexalogy unlocks valuable insights from social media data. Through its proprietary semantic clustering algorithms, it provides insights and analysis that aren’t available through traditional business intelligence technology. This technology makes data more relevant and is the missing link in providing actionable social media intelligence to governments and organizations all over the world. Recently the company obtained the rights to import and sell COVID test kits from multiple South Korean vendors to Canada, Saudi Arabia, the European Union, Turkey and the United Kingdom.
The overall thesis for DataMetrex in our view can be broken down into the following main points:
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- DataMetrex has a growing AI Business focused on Social Media Analytics; however the valuation proposition changed when the company recently announced their strategy to distribute South Korean COVID-19 test kits.
- Chairman Andrew Ryu has extensive connections and ties to South Korea; the country which is known for the strongest handling of COVID-19.
- The company has inked deals with 4 different South Korean COVID test kit manufacturers for global distribution rights.
- DataMetrex has already announced various orders and indicated strong demand for their test kits.
- They have created infrastructure for testing; partnering with TransPharma Canada. And will also sell PCR machines which can do up to approximately 96 samples every 1.5 hours.
- At the time of publishing, DataMetrex has three sales contracts, where they sold kits for approximately $50 each.
- The company believes in the near term they can source (obtain supply of) between 1 to 2 million South Korean test kits per quarter.
Overall, we feel DataMetrex is a company in transition; with a solid and growing legacy business in social media analytics. The main shareholder value proposition is the opportunity to be the leading global distributor for South Korean COVID test kits.
FULL DISCLOSURE: DataMetrex AI Limited is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover DataMetrex AI Limited on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
