Powersafe Powers Up Amplification Technologies
Powersafe Technology Corporation [[PSFT.OB]] completed its merger with Amplification Technologies in late February and now has plans to transform the field of low-level signal detection. The company’s patented platform semiconductor technology has the potential to offer unparalleled and far-reaching benefits to industries like medical diagnostics, drug development, scientific instrumentation and homeland security. So, is now the time for investors to jump on this new technology?
Amplification Technologies has invented an extremely sensitive photo detector technology that has significant performance and cost advantages over traditional technology and is positioned as a next generation solid state technology for low level light detection. The technology was broadly patented with the title “High sensitivity, high resolution detection of signals” in April 2005. Since then, the company has filed one additional patent and plans to file others.
Amplification Technologies’ team of 10 PhDs and 34 full and part time employees have developed the technology with $9 million in funding and $750,000 in government grants. The company is currently introducing its first products to the market and expects them to be available for commercial sale in 2009. Moreover, the company believes that the ultimate market addressed by its products is in the multi-billion dollar range over the long-run.
Despite the promise of its products, Amplification Technologies still faces several challenges ahead. First, the company will need to raise approximately $3.25 million in additional funds, according to an 8-K filing with the SEC. This capital could come in the form of debt or equity, both of which could harm the shareholders via dilution or large interest expenses. Meanwhile, the company’s products remain unproven commercially and could face challenges.
In the end, Powersafe Technology’s acquisition of Amplification Technologies appears to have been a smart move. The wholly-owned subsidiary is preparing to launch commercial products this year, which have widespread use across many different industries. Meanwhile, many different trade publications have hailed the technology as being top of its class. However, the commercial success of this technology remains to be seen. As a result, prudent investors may want to let speculators play this stock until the commercialization is proven in the company’s 2009 quarterly reports.
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