STOCKS TELEGRAPH

Author: ST Staff

  • Recon Technology, Ltd. (RCON) Stock Plummets Following Announcement of USD$55 Million Registered Direct Offering

    Recon Technology, Ltd. (RCON) stock prices plummeted by a significant 19.31% shortly after market trading commenced on June 14th 2021, bringing the price per share down to USD$5.03 early on in the trading day.

    Registered Direct Offering

    June 14th, 2021 saw the company announce having entered into a securities purchase agreement with various accredited investors. The agreement will see the purchasing of USD$55 million worth of the company’s class A ordinary shares in a registered direct offering. Pre-funded warrants to purchase Class A ordinary shares may be issued in lieu of the shares themselves, with the class A ordinary shares warrants being issues in a concurrent private placement.

    Size of Offering

    As per the agreement, the company has agreed to sell a total of 8,814,102 Class A ordinary shares, or pre-funded warrants in lieu thereof. Concurrently, warrants for the purchase of 8,814,102 class A ordinary shares will be offered in a private placement transaction. The pre-funded warrants will have a set exercise price of USD$0.01 per share, with the option of immediate exercising upon the date of issuance until they are exercised in full.

    Pre-Funded Warrants

    The pre-funded warrants will be issued to certain investors who will have elected to purchase them instead of the Class A ordinary shares up for sale in the offering. This is because the investors would otherwise have surpassed 9.99% beneficial ownership of the company’s Class A ordinary shares immediately after the offering.

    Pricing of Offering

    Ordinary share warrants will be exercisable instantly as of the date of issuance, with a set exercise price of USD$6.24. The warrants for ordinary shares will expire in five and a half years from the date of issuance. The purchase price for one unit comprised of one ordinary share and one corresponding ordinary share warrant will also be USD$6.24. Gross proceeds generated from the offering are expected to be USD$55 million before the deduction of expenses related to the offering. Subject to customary closing conditions, the registered direct offering is expected to close around June 15th, 2021.

    Future Outlook for RCON

    Armed with a solid liquidity position from their private placement, RCON is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher inorganic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • ATXI Stock Is Down Today Before Market Open. Why?

    Avenue Therapeutics Inc. (ATXI) shares fell -45.84% to $2.28 in premarket trade today. Last trading session, Avenue stock has fallen -3.44% to $4.21. ATXI stock retreated even more -8.17% in the last five days but gained 2.93% over the past month. Before market open this morning, ATXI stock fell after the US Food and Drug Administration (“FDA”) rejected its new drug application (NDA).

    The NDA was for which drug?

    The mission of Avenue Therapeutics is to develop IV tramadol. US patients suffering from acute pain may be able to decrease their reliance on conventional opioids with IV tramadol. Avenue was formed by the Fortress Biotech Corporation in New York City.

    Today, Avenue announced that the FDA has sent a second Complete Response Letter (“CRL”) in connection with its application for approval of IV tramadol.

    • The CRL concluded that IV tramadol’s delayed and unpredictable onset of analgesia does not support its use as a monotherapy to treat acute pain.
    • Furthermore, the CRL stated that there is not enough information to support the combination of ATXI’s painkiller with other analgesics being safe and effective for the intended population.
    • In this CRL, the FDA highlighted no Chemistry, Manufacturing, and Controls (“CMC”) issues in ATXI’s candidate.
    • An October decision by the health regulator had rejected approval for the ATXI’s painkiller due to its unsuitability for the intended users.

    ATXI’s stance:

    The FDA’s interpretation of the data in the NDA is not consistent with Avenue (ATXI)’s position, said the company in its statement. ATXI once again committed to continue seeking regulatory approval for IV tramadol.

  • Novavax, Inc. (NVAX) Stock on the Rise Following Massive Success of PREVENT-19 Study

    Novavax, Inc. (NVAX) Stock on the Rise Following Massive Success of PREVENT-19 Study

    Novavax, Inc. (NVAX) stock prices were up by a marginal 2.31% as of the market closing on June 11th, 2021, bringing the price per share up to USD$209.68 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock surge by 6.57%, bringing it up to USD$223.45.

    Success of PREVENT-19

    The company announced a massively positive outcome for NVX-CoV2373, demonstrating 100% protection against moderate and severe forms of the disease. The treatment also reported an overall efficacy of 90.4% and met its primary endpoint in the PREVENT-19 pivotal Phase 3 trial. The study consisted of a total of 29,960 participants, spanning 119 sites across Mexico and the U.S. The study was designed to evaluate the efficacy, safety, and immunogenicity of the treatment, with an emphasis on representation in the recruitment of communities and demographic groups most impacted by the disease.

    Treatment Poised to Proliferate

    With the world hurtling towards global immunizations as the global coronavirus pandemic continues to take its toll on economies, Novavax is closer to addressing the critical and persistent global public health need. The company continues to work at full capacity to facilitate the completion of regulatory submissions and deliver the vaccine. NVAX has secured a well understood platform with an established track record, through which they will facilitate the provision of the much needed vaccines.

    Next Steps for NVAX

    NVAX anticipates filing for regulatory authorizations in the third quarter of 2021, following the completion of the final phases of process qualification and assay validation needed to meet chemistry, manufacturing, and controls (CMC) requirements. Following the approval, the company will see growth to a manufacturing capacity of 100 million doses per month by the end of the third quarter of 2021. The end of the fourth quarter is expected to mark the ramping up of manufacturing capacity to 150 million doses a month.

    Government Support

    PREVENT-19 has consolidated the tolerability and safety profile of NVX-CoV2373, with data having shown consistent, high levels of efficacy and reaffirm the treatment’s capability to prevent Covid-19 as increasing variants of the virus proliferate international communities. To this end, the treatment has received support from the U.S government, including the DoD, BARDA, parts of the HHS, the NIAID, and more. As per a DoD agreement, BARDA will provide NVAX with USD$1.75 billion.

    Future Outlook for NVAX

    Armed with the fortuitous surge in the value of their equity, NVAX is poise to push for the commercialization and proliferation of its proprietary treatment. The company is keen to continue its trajectory of success and usher in more organic growth over the long-term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Why Is iTeos (ITOS) Stock Rising In Premarket Today?

    The shares of iTeos Therapeutics Inc. (ITOS) were up 51.37% in premarket trading at $30.32. iTeos stock closed at $20.03 last session, up 0.86% or $0.17. ITOS stock fluctuated throughout the day between $19.50 and $20.19 on Friday. ITOS stock has been rising due to a collaboration deal with Glaxo.

    What is the collaboration about?

    iTeos is a biopharmaceutical firm that pioneers the discovery and development of novel immunooncology therapies for patients. ITOS’s pipeline includes two clinical-stage programs focusing on novel, validated immuno-oncology therapies: EOS-448, an antibody product candidate, and inupadenant, an insurmountable antagonist of the adenosine A2A receptor.

    iTeos and GlaxoSmithKline (GSK) today announced an agreement to co-develop and co-commercialize EOS-448, a monoclonal anti-TIGIT antibody that is currently in phase I development for cancer therapy.

    A phase II randomised clinical trial and compelling preclinical data argue that TIGIT is a promising target for the next generation of immuno-oncology therapies. This collaboration between GSK and ITOS will put GSK in a unique position since it has access to antibodies that target all three known CD226 checkpoints: TIGIT, CD96, and PVRIG.

    As part of the collaboration agreement:

    • iTeos (ITOS) will receive an upfront payment of $625 million as part of the collaboration agreement.
    • In the event that the EOS-448 program achieves certain development and commercial milestones, ITOS may receive an additional $1.45 billion in milestone payments.
    • GSK and ITOS will jointly develop EOS-448 and will equally split profits in the US.
    • The collaboration will mean GSK and ITOS share the responsibility and costs for the global development of the drug.
    • A commercialization license will be provided exclusively to GSK outside the US, whereas ITOS will receive tiered royalties.

  • How Did The Metrospaces (MSPC) Stock Rise 36%?

    In Friday’s trading session, Metrospaces Inc (OTC: MSPC) surged 36.36% to $0.0015. Metrospaces’ stock volume was 1.98B, compared with its Average Weekly Volume of 765.16M. With MSPC’s stock rising despite no current news, we can consider recent developments to gain a deeper insight into the company.

    Has MSPC been doing well lately?

    A Prop-tech company, Metrospaces combines cutting-edge technology and real estate to increase efficiency in the industry. Previously, MSPC designed, built, developed, managed, and sold condominiums. Latin America is one of MSPC’s target markets.

    Metrospaces just recently announced that it has invested in Good Hemp Inc., a company focused on bringing consumers healthier and more vibrant products.

    • Over the course of quite some time, MSPC has been in communication with Good Hemp management, exploring different strategies for collaborating with them.
    • Good Hemp stands out because of its business strategy, partnerships and recent acquisitions.
    • Since 2013, Good Hemp has been providing hemp energy drinks, CannaHemp, to people all over the world.
    • In recent years, they have acquired Diamond Creek Water, a brand that ranks in the top 20 high alkaline water brands.
    • It will also streamline production and supply chain efforts, as they will be able to build strong retail relationships.
    • In addition, Good Hemp has teamed up with Dr. Jason Minsky for the launch of Good Hemp Wellness.

    How well does the investment match MSPC’s strategy?

    In terms of complementary activities, Metrospaces (MSPC) is exploring very innovative technology for agriculture using drone and artificial intelligence yield monitoring, as well as cross-vertical applications that cross the newly announced PropTech vertical. This ties in very well with MSPC’s goal of investing in real estate assets which use technology to enhance production performance.

  • Why Did Ethema (GRST) Stock Go Nearly 6% Higher?

    The market cap of Ethema Health Corp (OTCPk: GRST) reached $9.66M after the stock gained 5.56% last session to conclude $0.0038. Ethema stock traded 25.94M shares recently, more than 24.81M shares on average. GRST stock has 2.54B shares outstanding vs 46.76M float. A new round of financing boosted the price of GRST stock.

    What was the purpose of that GRST financing?

    Ethema specializes in treating substance use disorders within the behavioral healthcare sector. In the past decade, GRST developed a unique type of treatment for adults and it has experienced great success with it. GRST will keep developing world-class programs and techniques for North America.

    Ethema has announced that it has secured a new fixed rate convertible note facility from Labrys Fund, LP.

    • As part of its closing, GRST entered into a one-year convertible note with a face amount of $230,000.00, including an OID of 10% and a fixed conversion rate of $0.004 per share.
    • It plans to use the loan proceeds for working capital purposes and to pay some outstanding liabilities.
    • GRST plans to increase its working capital in order to continue to pay its debts as they become due as well as to expand its treatment facility in West Palm Beach, Florida.
    • Recent weeks have seen the treatment center reach capacity multiple times.
    • Several drawings had to be revised prior to the start of construction on the expansion project, but now the process has resumed and the project should be completed in the next 60 days.
    • With this expansion, the treatment center will have 52 beds instead of 40.

    GRST’s next steps:

    Ethema (GRST) has provided all requested documentation for its ownership change for the ARIA treatment center to the Florida Department of Children and Families and is anticipating an approval to be issued shortly. GRST intends to make improvements to its website as well as to implement a better communication system with its most valuable shareholders with some of the new working capital.

  • Is This Why The DarkPulse (DPLS) Stock Rose 28% In Last Trading?

    As of the latest trading session, DarkPulse Inc (OTCPink: DPLS) stock grew 27.70 percent to $0.0355. Price of DarkPulse stock ranged from $0.0278 to $0.0360 during the session, with 165.19M shares changing hands. DPLS stock jumped following the signing of two letters of intent (LOIs) for controlling stakes in two firms.

    How did DPLS come to make those acquisitions?

    With DarkPulse, high-resolution temperature, strain and stress monitoring can be performed with high accuracy. A major advantage of DPLS technology is its ability to perform live, dynamic monitoring of critical infrastructure and structural components, such as pipelines, perimeters, airplanes, and mines.

    Last week, DarkPulse announced that it had signed two LOIs to acquire control of Remote Intelligence and Wildlife Specialists, LLC.

    • Together, these two companies offer fully integrated, drone-based, geo-rectified, 3D modeled mapping solutions for industrial applications specializing in oil & gas, energy, and environmental surveys.
    • DarkPulse will acquire 60% of Remote Intelligence and 60% of its sister company Wildlife Specialists by the terms of both LOIs.
    • The acquisitions are expected to cost $1,300,000, of which $1,000,000.00 will be paid in cash and $300,000.00 in DPLS common shares.
    • DPLS is scheduled to pay out the amount in two equal installments to its majority shareholders.
    • DPLS will pay $300,000 in restricted common shares upon closing, with the remaining $1,000,000 payable in cash within 12 weeks.
    • Remote Intelligent will receive an additional investment from DPLS, which will be used for working capital and to expand the company.

    Does DPLS benefit from these acquisitions?

    As part of the strategy to expand the capabilities of its system and open new service lines for growth, DarkPulse (DPLS) has acquired major positions in both entities. As DPLS positions itself to be the foundational infrastructure technology, these acquisitions will strengthen the company’s relationship and enable DPLS to meet new challenges and opportunities.

  • What Motivated Alkame (ALKM) Stock To Climb 18%?

    What Motivated Alkame (ALKM) Stock To Climb 18%?

    Stock in Alkame Holdings Inc. [OTCPINK: ALKM] soared 18.18% to $0.0026 at the previous session.. Volume on Alkame stock was 94.12M compared to the 30-day Average Volume of 99.56M. In the last 52 weeks, ALKM stock value ranged from $0.0003 to $0.0096. ALKM stock rose as its subsidiary is expected to generate significant revenues.

    Where will the revenues come from for ALKM?

    With a focus on patentable, innovative, and environmentally-friendly consumer products, Alkame is a publicly traded health and wellness technology holding company. ALKM’s wholly owned subsidiaries create products with multiple unique characteristics using a proprietary technology. By launching and acquiring appropriate business assets, and by participating in a variety of emerging market segments, ALKM is diligently building a strong foundation.

    In the coming weeks, Alkame’s wholly owned subsidiary, Bell Food and Beverage, Inc. will continue its Production Commitment to Pacific Flavors International Inc., a leading international food supplier and exporter of Oregon Blueberries. The ALKM is expected to generate substantial revenue from the sale of 270,000 units.

    In addition to its versatility, Pacific Flavors uses the ALKM to handle 50,000 pounds of blueberries daily and packs at speeds of up to 108 jars per minute, which equates to 60 pallets per shift.  As a result of supply line issues caused by an international pandemic, ALKM has worked to improve its facility for this year’s Blueberry harvest.

    What else is there from ALKM?

    In a recent announcement, Puration, Inc. said it would increase its investment in Alkame (ALKM). Puration acquired a five percent interest in ALKM earlier this year by way of capital investment.

  • Riot Blockchain, Inc. (RIOT) Stock Undergoes Minor Volatility Following May 2021 Production and Operations Updates

    Riot Blockchain, Inc. (RIOT) Stock Undergoes Minor Volatility Following May 2021 Production and Operations Updates

    Riot Blockchain, Inc. (RIOT) stock prices were down by a marginal 1.93% as of the market closing on June 11th, 2021, bringing the price per share down to USD$31.03. Subsequent pre-market fluctuations have seen the stock rise by 6.99%, bringing it up to USD$33.20.

    May 2021 BTC Production Report

    RIOT reported having produced a total of 227 BTC in May 2021, representing a 220% increase over the 71 BTC reported having been produced in May of the prior fiscal year. Year-to-date production numbers through to May of 2021 were reported at 924 BTC, up almost 101% over the company’s pre-halving BTC production during the same period over the course of fiscal 2020, which reported 460 BTC being produced. As of May 31st, 2021, the company reported having a total of almost 2,000 BTC, the entirety of which was produced by the company’s own mining operations.

    Acquisition of Whinstone

    May 26th, 2021 saw the company announce the completion of its acquisition of Whinstone U.S., including their Rockdale facility, which is the largest Bitcoin mining facility in North America. The facility comes in at 300 MW in developed capacity. RIOT announced its intent to facilitate the immediate development of additional capacity at the Whinstone facility, in order to raise the cap to 750 MW. An industry-leading development team of more than 10 employees will spearhead the expansion.

    Bitmain Purchase Order

    May 2021 saw the shipment of 1000 S19 Pro Antminers (110 TH) as part of a purchase order with Bitmain in December 2020. The installation of the miners is expected to be completed in Q2 2021, with RIOT reporting a total of 23,946 Antminer’s in operation. This array of miners uses roughly 76 megawatts of energy, with an estimated hash rate capacity of 2.4 exahash per second.

    Agreement with Mogo Inc

    The company recently announced the completion of purchase transactions with Mogo Inc, which saw Mogo acquire a cumulative entirety of the 3.4 million common shares of CoinSquare Ltd stock held by RIOT. In return, RIOT was granted a total consideration of 3.2 million shares of Mogo’s common stock, in addition to roughly USD$1.8 million in cash. As of this agreement, RIOT no longer owns any equity investment in Coinsquare.

    Future Outlook for RIOT

    Armed with the stellar reports and developments over the month of May 2021, RIOT is poised to continue its trajectory of success over the upcoming few months. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) stock prices were up by 3.65% as of the market closing on June 11th, 2021, bringing the price per share up to USD$3.12 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 7.37%, bringing it up to USD$3.35.

    Meme Stock Craze

    Several of the recent trading days having been dominated by the meme stock phenomenon, wherein members of the online social media community, Reddit, collaborate on pumping “meme” stocks that have no apparent rational basis for being invested in. These underdog companies, sometimes on the brink of collapse, are resuscitated (often only temporarily) by the fortuitous whims of the Reddit-driven retail investors. With no recent news or fundamental developments that justify significant upswings in stock prices, TRCH, too, seems to be the latest target of the meme stock craze.

    Promising Track Record

    Interestingly, however, this seems to be a long-term trend for the company, rather than a short-term surge in price. The past year has seen the stock price skyrocket by 576%, with the last 3 years representing a 90% increase in the value of the company’s equity. The most recent month had seen a 13% increase, with the price rising through both the latest trading day and the subsequent pre-market hours.

    Shaky Foundation

    In their recently disclosed financial statements, TRCH reported a meagre USD$111,230 in revenue over a 12-month period. This fails to signal confidence in the management and the execution of their business plan. Nevertheless, the stock has enjoyed consistent growth in stock price. It seems much more likely that investors are banking on the company’s untapped potential rather than its accomplishments. This is atypical because of the risks involved. Investors might be hoping for the company to stumble upon fossil fuels with an exploration program before it finds itself to have run out of money.

    Sustaining Growth

    Pinning hopes on potential future developments entails a very probably need for infusions of capital to sustain the company until it can support itself. This puts them at the mercy of capital markets, where share price itself impact the value of the shares themselves, as determiners of costs of capital. From here, companies can go on to execute their intended strategies and provide returns on investments made; or companies can suffer heavy losses and eventual de-listing. TRCH has consistently rewarded its investors who took the high risk.

    Future Outlook for TRCH

    Armed with a solid liquidity position from their private placement, as well as the fortuitous surge in the value of their equity, TRCH is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.