Stonegate Securities Initiates Coverage on OxySure Systems - Video Research Alert on InvestmentPitch.com

April 23, 2014 12:26 PM EDT | Source: InvestmentPitch Media

Vancouver, British Columbia--(Newsfile Corp. - April 23, 2014) - Dallas-based Stonegate Securities has initiated coverage on OxySure Systems (OTCQB: OXYS). OxySure has pioneered a safe and easy to use solution to produce medically pure oxygen from inert powders, eliminating the need for a pressurized gas tank.

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The company's Model 615 has FDA 510k clearance for over the counter sale, giving the company a clear advantage over oxygen systems reliant on pressurized oxygen tanks, which require a prescription. Users simply plug in the mask, turn the knob, and place the mask over the nose and mouth.

The Model 615 has quickly gained adoption amongst various school districts, military units, and institutional buyers, where early administration of medical oxygen in respiratory emergencies can often save a trip to the hospital.

Earlier this month, the Model 615 received CE Mark approval, a critical step toward launching this unique product into the 30 countries belonging to the European Economic Area.

The Stonegate report points out several advantages of the Model 615 over tank based solutions in terms of safety and applicability. For example, tanks can create harmful explosions when submersed in fires. Furthermore, oxygen tanks lose their pressure over time due to leaks in the casing.

Analyst Dan Tang stated, "The future bodes well for the Company as more distributors push Model 615 in their respective channels and the Company makes progress in penetrating new vertical markets."

On April 16th, OxySure reported fourth quarter and full year financial results for the period ending December 31, 2013. Revenues for the year were $1.8 million, up 566%, led by a 787% increase in revenues in the United States. Net loss per share for the year was cut in half from $0.06 to $0.03.

Unit cartridge reorder rates continued to increase as the installed base of Model 615 increased, giving the company recurring sales.

Julian T. Ross, Chairman and CEO stated, "We finished the year strong, and our fundamentals continue to improve. We are pleased to have delivered on a number of our sales and business goals for the year, including growing our international distribution footprint, building our brand, diversifying our revenue streams and strengthening our balance sheet. I'm also very excited about the way our products are continuing to save or improve people's lives."

Although not giving a target price at this time, analyst Dan Tang stated, "On multiple base comparison among publicly listed peers, comparable companies trade at 7.9x on EV/Sales basis for 2014E whereas OXYS is trading at 4.7x."

The company currently trades at $0.71, and with 24.2 million shares outstanding, the company is capitalized at $17.2 million.

For more information about OxySure, please visit the company's website www.oxysure.com.

Investor relations is handled by Stonegate Securities, which can be reached at 214-987-4121 or by email at investors@oxysure.com.

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