Expectation of acceptance from the Transportation Security Laboratory (TSL) for the Quantum Sniffer QS-B220, the desktop explosives and narcotics trace detector, kept traders rushing to the counters of Implant Sciences (OTC: IMSC) as soon as the market opened, resulting in a 7% gain in the share price within the first two hours of the trading.
The Massachusetts-based manufacturer sells sensors and security systems under the trademark Quantum Sniffer. The Quantum Sniffer QS-H150 is a portable explosive detector used for the simultaneous detection of explosives particulates and vapors with or without physical contact. The Quantum Sniffer QS-B220 is used for the detection and identification of a range of military, commercial and improvised explosives, as well as narcotics. Implant Sciences is the only US company operating in this domain. Its competitors Safran SA (OTC: SAFRY) and Smiths Detection (OTC: SMGKF) are headquartered outside of the US.
The Quantum Sniffer QS-H150 is a product recognized and sold worldwide where as the QS-B220 is sold internationally and is in the testing stage in the US. Earlier in the month of May 2012, the company delivered QS-H150s to Indonesia and Singapore. Implant Sciences also signed a $6 million extension contract with the government of India. By mid-May, the company shipped the Quantum Sniffer QS-H150 to China. On May 17, 2012, the company received its 13th patent for “Real-Time Trace Detection by high field and low field ion mobility and mass spectrometry”. The end of May 2012 marked the sale of QS-H150 models to clients in Romania, Nigeria, Uganda and the Republic of Mali. On July 25, 2012, the company sold 11 more QS-H150s to various police departments and bomb squads in China. A follow-on sale of QS-H150 models for use in the aviation industry was made in China. The Middle East soon followed suit by placing orders for QS-H150s to be used for VIP protection.
With increasing recognition and sale of the product, the share price rose from $0.80 per share in the month of May 2012 to a peak of $1.72 per share in the month of July.
On August 21, 2012, Implant Sciences stated that its QS-B220 explosives and narcotics trace detector had successfully completed the certification readiness testing with the Transportation Security Laboratory (TSL), the testing body of the Transportation Security Administration (TSA).
Implant Sciences’ President and CEO, Glenn Bolduc, commented, “This is a major milestone for the company. Entering into this final phase of approval gives us great confidence that our desktop B220 explosives trace detection system will be well positioned for adoption in the U.S. and global markets.”
Regarding the next stage for QS-B220, Glenn Bolduc opined, “While the next few weeks will be a quiet period during the final stage of testing, we remain confident in our system’s performance and are hopeful that we will have good news to report to our shareholders by the end of our fiscal first quarter (ended September 30, 2012). This will put us in good position to capitalize on the December 3, 2012 date for the air cargo industry to comply with the mandates of air cargo screening regulations.”
On August 29, 2012, the company announced the sale of QS-B220 desktop explosives and drugs trace detectors to a major European airport. For better growth prospects, Implant Sciences became a member of The International Air Cargo Association (TIACA). As a part of its product promotion campaign, the company showcased both Qs-H150 and QS-B220 Quantum Sniffers models between September 11 and 13, 2012, at 7th GPEC General Police Equipment Exhibition and Conference conducted at the Leipzig Trade Fair Center in Leipzig, Germany.
On September 5, 2012, Implant Sciences successfully renegotiated its credit agreements with its senior secured lender, DMRJ Group LLC.
After a 100% appreciation in the share price between May and July, the share price moved in the $1.20-$1.60 per share range in the past two months. The implementation of the Bush-era legislation requires 100% screening of global air cargo entering the United States after December 3 of this year. In this regard, a report on security points to the immense opportunity that lies ahead for the company.
With the end of the fiscal first-quarter nearby, the market hopefully waits for the news regarding the test results of the QS-B220. Implant Sciences ended the day at $1.69 per share, up $0.07 or 4.3% on a volume of 459,554 shares.
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