We are discontinuing our coverage of SciBase as the company has terminated the research service agreement. Consequently, we will no longer give the stock a target price (prev. 0.45 SEK) or recommendation (prev. Reduce).

SciBase kept building its commercial momentum in the US, where it achieved strong revenue growth in Q3. Yet, the major news of the day was the large capital raise, which would carry the company to cash flow positivity.

SciBase kept building its commercial momentum in the US where it achieved strong revenue growth in Q3 from low levels. Yet, the major news of the day was the large capital raise, which according to our current assumptions would carry the company to cash flow positivity. After adjusting for the capital raise, the risk/reward is starting to improve but is not yet looking attractive enough as we also expect the rights issue to put downward pressure on the share.