Month: August 2020

Aurania Resources (AUIAF)(ARU:CA) – Near-Term Focus Turns to Copper

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Monday, August 24, 2020

Aurania Resources (AUIAF)(ARU:CA)

Near-Term Focus Turns to Copper

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Scout drilling ready to commence at Tsenken copper target. Drilling is likely to begin the last week of August or the first week of September. Scout drilling will start at the Tsenken N2 target, followed by the Tsenken N3 and N1 targets. Following field mapping and soil sampling, scout drilling could also commence at Tsenken A, a fault-related breccia with high-grade copper and silver, and Tsenken B which contains sediment hosted copper and silver. We note that copper and silver have been confirmed over an area that extends 6 kilometers north from Tsenken A.

    The search for gold continues.  While we expect the company to focus on copper and silver targets during the third quarter, the epithermal gold and silver targets are located nearer to where COVID cases are more prevalent. Scout drilling at epithermal gold and silver targets could follow additional …



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Onconova therapeutics ontx inspire fails what is next for onconova

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Monday, August 24, 2020

Onconova Therapeutics Inc. (ONTX)

INSPIRE Fails, What is Next for Onconova?

Onconova Therapeutics Inc is a clinical-stage biopharmaceutical company operating in the US. It focuses on discovering and developing novel small molecule product candidates primarily to treat cancer. The company has created a library of targeted agents designed to work against cellular pathways important to cancer cells. Its product candidates are Single-agent IV rigosertib, Oral rigosertib + azacitidine, IV Briciclib, Recilisib, and ON 123300. The key product candidate Rigosertib is a small molecule which blocks cellular signaling by targeting RAS effector pathways.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Rigosertib fails to provide survival benefit for MDS patients. Onconova announced data from its pivotal INSPIRE study, assessing rigosertib in the 2nd-line high-risk myelodysplastic syndrome (HR-MDS) patients. The primary endpoint of overall survival was not met in this trial. The results showed that IV rigosertib plus best supportive care to physician’s choice (PC) did not provide any survival benefits in patients compared to PC alone (6.4 months versus 6.3 months (p=0.33), respectively).

    What is next for Onvonova? The results were disappointing. However, the company has the capital ($27.2 million as of June 30th, 2020) to advance other agents in…



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Gevo, Inc. (GEVO) – ATM Offering of $50 million Removes Funding Overhang

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Monday, August 24, 2020

Gevo, Inc. (GEVO)

ATM Offering of $50 million Removes Funding Overhang.

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Equity offering adds $50 million and tempers near-term funding overhang. After the strong stock price move on Thursday, the existing ATM program was tapped to issue 38.5 million shares at $1.30/share, or a 29% discount. While the total share count increases to 89.8 million, pro forma cash increases to ~$69 million.

    Likely warrant exercises could add ~$18 million and further temper near-term funding overhang. As we highlighted last week, the strong stock price move likely pushed many warrants holders to exercise early. If true, the warrant overhang would decline and pro forma cash would …



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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Onconova Therapeutics (ONTX) – INSPIRE Fails, What is Next for Onconova?

Posted on by Admin

Monday, August 24, 2020

Onconova Therapeutics Inc. (ONTX)

INSPIRE Fails, What is Next for Onconova?

Onconova Therapeutics Inc is a clinical-stage biopharmaceutical company operating in the US. It focuses on discovering and developing novel small molecule product candidates primarily to treat cancer. The company has created a library of targeted agents designed to work against cellular pathways important to cancer cells. Its product candidates are Single-agent IV rigosertib, Oral rigosertib + azacitidine, IV Briciclib, Recilisib, and ON 123300. The key product candidate Rigosertib is a small molecule which blocks cellular signaling by targeting RAS effector pathways.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Rigosertib fails to provide survival benefit for MDS patients. Onconova announced data from its pivotal INSPIRE study, assessing rigosertib in the 2nd-line high-risk myelodysplastic syndrome (HR-MDS) patients. The primary endpoint of overall survival was not met in this trial. The results showed that IV rigosertib plus best supportive care to physician’s choice (PC) did not provide any survival benefits in patients compared to PC alone (6.4 months versus 6.3 months (p=0.33), respectively).

    What is next for Onvonova? The results were disappointing. However, the company has the capital ($27.2 million as of June 30th, 2020) to advance other agents in…



    Click to get the full report

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Orion Group Holdings (ORN) – Corpus Christi Accident Late Last Week

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Monday, August 24, 2020

Orion Group Holdings (ORN)

Corpus Christi Accident Late Last Week

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Tragic accident in Corpus Christi. On Friday morning, Orion’s dredging vessel Waymon L. Boyd caught fire, broke apart and sank in the Port of Corpus Christi. According to a US Coast Guard bulletin, two crew members were rescued by a MH-65 Dolphin helicopter on Friday, the bodies of two crew members were recovered on Saturday morning, and the search for other two crew members was suspended late Saturday. We hope that the injured crew members will fully recover, and we offer our condolences to families of the crew members who perished in the accident. ORN’s management team mobilized to Corpus Christi on Friday and has offered condolences and support for the employees and families impacted by this accident.

    Investigation under way. It appears that the cause of the accident has not been determined, and several state/federal agencies, including the Port of Corpus Christi, will investigate the cause of the accident. Several news sources have reported that a natural gas/propane pipeline operated by …


    Click to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Are Mining Companies Facing a Shrinking Opportunity Set?

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Resource Nationalism Risk When Evaluating Mining Companies

 

Country risk is generally a key consideration for multinational corporations as they evaluate asset portfolios and where to invest. To most, country risk connotes the stability of political regimes and policies such as taxation. The problem for mining companies is that some of the mining locations with the highest resource potential are in countries that are perceived as high-risk.  While various firms provide rankings, the Fraser Institute has conducted an annual survey since 1997 of mining and exploration companies to assess how mineral potential and public policy factors such as regulation affect exploration investment.

 

Investment Attractiveness Index

In 2019, the survey was based on 263 responses that provided enough data to evaluate 76 jurisdictions. In 2018, enough responses were generated to evaluate 91 mining jurisdictions. The investment attractiveness index reflects a jurisdiction’s mineral potential and geologic attractiveness and public policy considerations such as taxation and regulation. The table below summarizes the top ten and bottom ten rankings in the 2019 survey.

 

 

In 2019, Western Australia ranked first based on investment attractiveness, moving up from second place in 2018. Finland moved into second place after ranking 17th in 2018, while Nevada fell from first place in 2018 to third place in 2019. However, investors should keep in mind that investment attractiveness and the extent of the jurisdiction’s resource potential are not always perfectly aligned.

 

Mr. Warren Pearce, CEO of the Association of Mining and Exploration Companies noted that rankings have moved around substantially, reflecting a need for greater stability from government in the setting of policy and the treatment of the industry.

 

Take-Away

While the rankings do not tell the whole story, they are an important and informative aid not just for investors and mining company managements, but policymakers as well who are interested in making their jurisdictions more conducive to investment. Importantly, increasing environmental regulation is having an impact on the company’s investment decisions, which has partly contributed to Canada’s slip in the rankings despite stronger showings in past surveys.

 

Additionally, it is helpful to know which jurisdictions are moving up or down in the rankings and why. There are examples of countries, such as Ecuador, with significant mineral endowments but whose past policies discouraged investment and exploration. However, with a shift to more supportive policies, Ecuador’s ranking has improved in recent years, and those paying attention have been rewarded by gaining early entry to significant opportunities.

 

Suggested Reading:

U.S. Capitalism and Public Funds to Reduce Reliance on China Rare Earth Production

Metals & Mining: 2020-2Q Review and Outlook

Investors
Should Pay More Attention to ATM Offerings

 

Enjoy Premium Channelchek Content at No Cost

Each event in our popular Virtual Road Shows Series has a maximum capacity of 100 investors online. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.

 

Sources:

Fraser
Institute Annual Survey of Mining Companies 2019, Fraser Institute, Ashley Stedman, Jairo Yunis, and Elmira Aliakbari, February 25, 2020.

The Best Places to Mine Are Still in the Developed World, and that’s a Problem, Reuters, Clyde Russell, March 5, 2020.

WA
Leads the World as Fraser Institute Survey Sees Australia’s Fortunes Rise, Association of Mining and Exploration Companies, Press Release, February 26, 2020.

Picture: Abandoned Russian mining colony in Pyramiden.

The Federal Reserve and MIT are Experimenting with Digital Money

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Backed by the Full Faith and Credit of Blockchain
Is the U.S. Ready for a Federal Reserve Digital Currency?

 

Cash may carry viruses, but computer code doesn’t.  Oh, wait a minute…

Last week The Federal Reserve discussed the research they’re undertaking to better understand the risks and benefits of central bank cryptocurrencies. I suspect risk of infection, both digital and microbic, are also being reviewed. The main considerations include speed, security, privacy, and resiliency. The task they’re undertaking in conjunction with MIT over the next several years will involve intense experimentation, modeling, and creative exploration.

 

Background:

According to a news release from the Federal Reserve Board of Governors, The Federal Reserve Board’s Technology Lab (TechLab) has been experimenting with crypto-currency technologies. TechLab conducts research that now includes the exchange or use of existing cryptocurrencies. Their activities are designed to further the Fed’s understanding of payment technologies so they may better develop views and policies. TechLab is composed of people with varied experience in the field of exchange mediums,  economics, law, information technology, and computer science.

It is the position of the Fed’s Board of Governors that it is essential, “given the (U.S.) dollars important role” that the Federal Reserve remains on the forefront of research and policy development regarding central bank digital currencies(CBDC). “Like other central banks, we are continuing to assess the opportunities and challenges of, as well as the use for, a digital currency, as a complement to cash and other payment options,” said Federal Reserve Board Governor Lael Brainard.

In addition, the Federal Reserve Bank of Boston is collaborating with researchers at the Massachusetts Institute of Technology (MIT) on a multiyear effort to build a hypothetical digital currency for central bank use. This project is intended to support the Fed Board’s broader efforts in assessing safety and efficiency of digital currency systems overseen by central banks. The project with MIT is said to focus on developing an understanding of the capacities and limitations of the technologies. It is not supposed to
serve as a prototype for a Fed issued digital currency.

 

Federal Reserve Boston:

The Federal Reserve Bank of Boston’s multiyear collaboration with the Digital Currency Initiative at MIT will explore the use of existing and new technologies to build and test a hypothetical digital currency platform.

“We are thrilled to be working with the Digital Currency Initiative at MIT and our colleagues in the Federal Reserve System to learn the intricacies of building a CBDC platform,” said Boston Fed President and CEO Eric Rosengren. “Jim Cunha is leading our team here in Boston, and I know they are committed to researching and testing the leading technologies available to determine if they can meet the design requirements of a U.S. based central bank digital currency.”

The Boston Fed and MIT have mapped out their collaboration into work phases that extend over two to three years. The first phase involves jointly building and testing a hypothetical central bank digital currency (CBDC). The first phase objective is to determine how to develop the architecture for a scalable, accessible cryptographic platform able to meet the needs of a U.S. dollar CBDC.  Design considerations include stringent requirements for speed, security, privacy, and flexibility.

In later phases, researchers will assess technology trade-offs by coding and testing various architectures, to see how they impact the CBDC’s design goals. The research results will be published jointly with MIT, and the code would be licensed as open-source software, so anyone can use or continue experimenting.

Separately the Boston Fed will evaluate other systems to better comprehend the pros and cons in supporting a CBDC.

 

MIT Digital Currency Initiative:

The MIT Digital Currency Initiative’s (DCI) collaboration with the Federal Reserve Bank of Boston to build a hypothetical digital currency brings additional expertise and a “laboratory” to the project.

The DCI has a lab which, according to their website, includes as their goals:

  1. Conduct research on blockchain and digital currency, broadly defined within two categories:
      1. Core software and infrastructure development that addresses questions about security, stability, scalability, privacy, and the internal economics of these systems
      2. Pilot projects and other research initiatives aimed at exploring and testing applications and use cases for the technology within business, government and society at large.
  2. Be a neutral convener for governments, nonprofits, and the private sector to research and test concepts with high social impact.
  3. Foster diversity and inclusion in the development and adoption of this technology by promoting access to educational resources among a wider body of students inside and outside MIT.
  4. Equip students with skills to drive innovation in blockchain technology

 

They are at the forefront offering classes and labs in blockchain, cryptocurrencies, and markets. A short (six week) class is available online.

 

Take-Away

Technological innovations inspire new ways to think about money. Consistent with its role in promoting a safe, accessible, and efficient U.S. payment system, the Federal Reserve is engaging in research and experimentation with the latest payment technologies. As with most things in a rapidly changing world, methods of exchange are also in flux.  Payment systems overseen by the U.S. Federal Reserve system need to be attuned to what tomorrow may bring. Researching the strengths and weaknesses in a potential digital currency in advance can help avoid any ill-informed decisions down the road.

The Federal Reserve also continues its collaboration with other central banks and international organizations as it advances their understanding of CBDCs. The acceptance of cryptocurrencies is now so widespread that top schools like MIT offer educational programs in the technology, economics, and law associated with the non-cash currency.

 After reviewing the brochure for the six-week online DCI class at MIT, I learned that the online course is $2,600. It lists various payment methods. You can pay via credit card, debit card, bank deposit, or EFT. At the moment, cryptocurrency payers need not apply.

Paul Hoffman

Managing Editor

 

Suggested Reading:

How Well Do You Know
Fintech?

Investment Barriers
Once Thought Insurmountable are Falling Fast

Cryptocurrency and the Howey Test: Are They Securities?

 

Enjoy the Benefits of Premium Channelchek
Content at No Cost

 

The Federal Reserve Bank of Boston announces collaboration with MIT to research digital currency

MIT Media Lab CRYPTOCURRENCY

MIT Lab Online Short Course Cryptocurrency

Does Money Carry Germs

https://dci.mit.edu/

Great Lakes Dredge & Dock (GLDD) – New and upcoming awards support 2H2020 backlog rebound

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Friday, August 21, 2020

Great Lakes Dredge & Dock (GLDD)

New and upcoming awards support 2H2020 backlog rebound

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    New awards of $118 million are positive. After the market closed, several additional large awards were announced. The awards on six projects include four Maintenance for $78.6 million and two Coastal Protection for $39.2 million. While ~$48 million of the awards were discussed on the 2Q2020 earnings call, there were several new awards, including the Mississippi River work, that support our constructive view. In addition, there are other low bids pending award outstanding, including a low bid of $15.5 million on work at Freeport (TX) Harbor that was opened on August 10th.

    News expected shortly on several large opportunities and Jacksonville C in 3Q/4Q2020. 2H2020 rebound backlog appears likely. While backlog dropped for the third consecutive quarter in 2Q2020, a rebound is expected in 2H2020 due to the announced awards and several upcoming opportunities. Two larger opportunities in Louisiana remain on the immediate horizon, and Jacksonville C is still on track for …



    Click to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Gevo, Inc. (GEVO) – Supply Portfolio Doubles and Industry Player Added

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Friday, August 21, 2020

Gevo, Inc. (GEVO)

Supply Portfolio Doubles and Industry Player Added

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Largest contract signed to date. Addition of major industry player adds credibility to renewable fuel concept. Yesterday morning, Gevo announced that a supply agreement for 25 million gallons/year (MPGY) was signed with a subsidiaryof Trafigura Group. The contract is the largest in Gevo’s history to date. Not only does the supply portfolio more than double to 42 MPGY, it moves the revenue potential above $1.5 billion. Trafigura’s leading position as a global commodity trader validates the technology and business strategy.

    Licensing strategy also moving forward.  Earlier, a license agreement with Praj Industries Ltd. was signed to develop renewable transportation fuels in India. The collaboration is driven by carbon emission targets and national strategic goals, including …



    Click to get the full report

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

SPAC Activity Accelerating in 2020

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SPAC Candidates, Blank Checks, and Leaving More to Investors

Former House Speaker Paul Ryan knows a lot about being a candidate. The former Speaker of The House was Mitt Romney’s vice-presidential running mate. He won elections for The House of Representatives eight times by defeating challenger Jeffrey C. Thomas in 2000, 2002, 2004, and 2006 elections. In the 2008 election, Ryan defeated Democrat Marge Krupp. He just announced he’s creating a special purpose acquisition company (SPAC). The IPO shell will be among the latest in the torrent of SPACS popping up this year. Paul Ryan will soon be aggressively looking for an acquisition candidate as part of his newly formed business.

 

Organization of the SPAC

Ryan is expected to serve as chairman of the soon to be formed Executive Network Partnering Corp. (ENPC).  ENPC will look to attract roughly $300 million in an initial public offering (based on demand).

 

The new vehicle’s ticker symbol will be ENPC. Relative to traditional shell IPO vehicles, ENPC will provide longer-term incentives for its stakeholders and scaled-down fees for underwriters. Founders of ENPC won’t be permitted to sell any of their shares for three years after any merger. Similar vehicles allow for sale when shares trade above a certain level or after a year from closing.

 

SEC Filing

ENPC is expected to file documents with the Securities and Exchange Commission in the coming days. This filing will outline the structure specifics. They’ve chosen the acronym CAPS to refer to the vehicle whose terms are supposed to be more investor-focused. The underlying reason for choosing “CAPS” is it is a palindrome for SPAC and can mean “capital which aligns and partners with a sponsor.”

 

 

More Competitive

Management competence and what their experience brings to getting a worthwhile deal completed is the main component investors look for when investing in this form of IPO. Terms are also high on the list of what should be analyzed before any monetary commitment.

 

Typically, SPAC founders are awarded shares equivalent to roughly 25% of what is raised when the initial IPO closes. As you might imagine, that becomes an above-average payday for their efforts. Under the expected ENPC terms, Ryan and the other creators will have the right to buy roughly 5% of the shares and then reap another 20% of the stock appreciation if share price increases by more than 10%.

 

They also plan to slash fees to Wall Street banking organizations. Evercore Inc. is the sole underwriter of the blank-check fund. They agreed to be paid 1% of the size of the vehicle; this is half of the usual 2% upfront of other SPACs. When a merger deal is struck, the same underwriters typically receive another 3.5%. With Paul Ryan’s SPAC, Evercore will get a separate, smaller advisory payment. ENPC is free to work with other advisers on any subsequent merger deal.

 

 

The Year of the SPAC

So far, in 2020, 75 new SPACs have been listed, with a total raised adding to $29.9 billion.  This is more than twice what was raised during all of last year. There is no telling when or why this pace may begin to slow, but over the past eight months, SPACs have already attained the highest volume ever in one year.  They have accounted for approximately 43% of IPO volume in 2020.

 

Earlier this Summer hedge fund billionaire William Ackman raised $4 billion for the largest SPAC ever created.  Last month, health-care-services provider MultiPlan, Inc. announced it was merging with a blank-check company run by Michael Klein in the largest transaction ever at $11 billion.  

 

Take-Away

The appetite for investors eligible to participate in a SPAC is still very high. The sheer number of “blank check” companies being formed is starting to push their founders to provide more to investors and negotiate better deals with banks and other service providers and consultants. “Big names,” including Paul Ryan, who sits on the board of FOX Corp., which owns The Wall Street Journal and other large media outlets, help bring attention to their intended deals.

 

Suggested Reading:

Special Purpose Acquisition Corporations (SPAC) Attracting Investors

Can AI Skyborg Technology Create Unpredictable Yet Consistent Military Aircraft?

Are Dual Class Stocks a Mistake for Investors?

 

Each event in our popular Virtual Road Shows Series has maximum capacity of 100 investors online. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.

 

Sources:

Will 2020 Go Down as the Year of the SPAC?

https://en.wikipedia.org/wiki/Paul_Ryan

Paul Ryan Becomes Board Member of FOX News Corp.

Former
House Speaker Ryan to Chair Blank Check Company

Wall Street Banks Are Cashing in on the Boom in Blank-Check Companies

 

Natural Gas Storage Imbalances and Higher prices

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Natural Gas Fell Hard Through Spring – Are We Seeing the Turnaround?

 

Natural gas in storage ended the winter heating season near historical averages.  Then COVID-19 hit, and the demand for gas went away.  The result is that natural gas in storage for the lower 48 states is now higher than it has been for five years at this time of year.  The chart below shows that gas storage levels relative to trailing five-year averages, minimums, and maximums.

 

 

People tend to think of natural gas as a fuel used primarily for space heating.  With more people staying at home, it would reason that natural gas demand would be near historical levels if not higher.  In recent years, however, natural gas consumption has changed.  While gas demand among residential and commercial customers (the primary users of natural gas for space heating) has been steady, demand for natural gas to fuel electricity generations has grown.  Electricity generation now represents the largest use of natural gas.

 

 

In fact, the residential and commercial sectors, which tend to be associated with space heating, accounted for only 36% of U.S. natural gas demand, according to the Natural Gas Supply Association.  Twenty years ago, residential and commercial users consumed roughly half of natural gas consumption.  The implications are clear.  Natural gas demand has become more economically sensitive over time and is being hurt by the economic slowdown caused by COVID-19.

 

 

As one might expect, there is a direct correlation between natural gas in storage and natural gas prices.  As storage levels have risen in recent months, natural gas prices have fallen.  Natural gas prices began the winter around $2.75 per mcf and fell steadily to a level under $1.50 per mcf by June.

 

 

There is good news for natural gas prices.  The drop in natural gas prices has led to a response from drillers.  The number of rigs drilling for natural gas has dropped dramatically this spring.  As of August 24, 2020, there were only 69 natural gas rigs drilling.  That represents a 59% decline from a year ago.

 

 

The response has been a surge in natural gas prices in the last two weeks.  Once below $1.50 per mcf, the upcoming September futures contract is now above $2.40 per mcf.  The contract has risen $0.65 in the month of August alone.  Clearly, investors anticipate that the natural gas storage numbers are about to correct to more normal levels.

 Suggested  Content:

GEVO Chairman Interview

OPEC Forecast Lower Demand as Output Cuts Taper

Energy Sector in Rapidly Growing Indonesia

Expect Today’s Nuclear Technologies to Provide an Important Role in the Future of Energy

 

Each event in our popular Virtual Road Shows Series has maximum capacity of 100 investors online. To take part, listen to and perhaps get your questions answered, see which virtual investor meeting intrigues you here.

 

Sources:

https://crudeoilfacilitators.blogspot.com/2019/08/us-natural-gas-demand-is-at-record-and.html, Scott DiSavino and Stephanie Kelly, Reuters, August 8, 2019

https://www.bicmagazine.com/industry/natgas-lng/u-s-henry-hub-natural-gas-spot-prices-reached-record-lows-in/, BIC Magazine, July 13, 2020

https://www.eia.gov/naturalgas/weekly/#tabs-rigs-2, EIA, August 12, 2020

Release – Gevo Exceeds $1.5B in Long-Term Revenue Contracts with Signing of Trafigura

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Gevo Exceeds $1.5B in Long-Term Revenue Contracts with Signing of Trafigura

 

ENGLEWOOD, Colo., Aug. 20, 2020 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it has entered into a binding Renewable Hydrocarbons Purchase and Sale Agreement, dated August 17, 2020 (the “Agreement”) with Trafigura Trading LLC, a wholly-owned subsidiary of Trafigura Group Pte Ltd (“Trafigura”). The Agreement is a long term, take or pay contract and is the largest contract in Gevo’s history. Trafigura is one of the world’s leading independent commodity trading companies with over $171B and over $54B in revenue and assets, respectively. Under this contract Trafigura is expected to take delivery of 25MPGY of renewable hydrocarbons, the majority of which is expected to be low-carbon premium gasoline with a smaller portion of the volume for sustainable aviation fuel (“SAF”), starting in 2023.

This commitment will support Trafigura’s efforts to develop the market for low-carbon fuels including low-carbon premium gasoline. The Agreement will also enable Trafigura to supply SAF to both US and international customers whose interest is growing in low-carbon jet fuel.

“This is our largest single contract to date, and with it, brings Gevo to over $1.5B of revenue in long term contracts when added to the other contracts we have in place. As drop-in fuels, Gevo’s renewable, very high-octane gasoline and SAF are a perfect fit with Trafigura’s existing fuels business and will allow them to integrate these low-carbon options seamlessly into their supply chains. We expect that our low-carbon fuels will enable certain of Trafigura’s customers to substantially lower their carbon footprint,” said Patrick Gruber, Chief Executive Officer of Gevo.

“Today’s agreement is a natural fit between our companies that will help drive the expansion of our renewable fuels product offering. We look forward to continuing to make a positive impact on the transition towards a low carbon economy,” said Robert Kreider, Head of the Strategic Management and Development Group, North America for Trafigura.

Having produced SAF and other hydrocarbons for nearly a decade, Gevo has a unique business system as it integrates sustainable agriculture and biorefining to produce SAF and low-carbon premium gasoline. For every gallon of low-carbon premium gasoline or SAF produced, Gevo produces about ten pounds of protein for the food chain, delivering substantially all of the nutritional value of corn to the food chain. The farmers who supply Gevo on average are capturing carbon, building up their soil with regenerative agriculture techniques. Utilizing a low-carbon ecosystem is vital to Gevo. Gevo began to use ISCC+ and Roundtable on Sustainable Biomaterials (RSB) certified corn for its Luverne, Minnesota facility while displacing fossil-derived power and heat with wind turbines and the upcoming implementation of biogas from dairy manure generated nearby. The execution of this circularity is unique and Gevos’ SAF is expected to have greenhouse gas profile reduction of 70% compared to the fossil-based jet fuel alternative. Eventually, it may be possible through soil carbon sequestration to completely decarbonize jet fuel through the use of Gevo’s SAF.

The Agreement is subject to certain conditions precedent, including Gevo acquiring a production facility to produce the renewable hydrocarbon products contemplated by the Agreement and closing a financing transaction for sufficient funds to acquire and retrofit the production facility contemplated by the Agreement. A copy of the Agreement between Trafigura and Gevo has been filed with the U.S. Securities and Exchange Commission on Form 8-K.

About Gevo

Gevo is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business. Learn more at www.gevo.com.

Trafigura

Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura’s Mining Group; and Galena Asset Management. The Company is owned by around 700 of its 8,000 employees who work in 80 offices in 41 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD171.5 billion in 2019. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the Agreement with Trafigura, Gevo’s ability to produce the products required by the Agreement, Gevo’s ability to raise the capital necessary to acquire and retrofit the production facility contemplated by the Agreement, Gevo’s ability to realize the full amount of the revenues under its agreements and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2019 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Gevo Investor and Media Contact
720-647-9605

IR@gevo.com

Trafigura Media Contact
+41 (0) 22 592 4528
media@trafigura.com

 

Release – Ceapro Inc. Reports 2020 Second Quarter and Six-Month Financial Results and Operational Highlights

Posted on by Admin

 

Ceapro Inc. Reports 2020 Second Quarter and Six-Month Financial Results and Operational Highlights

– Record second quarter sales of $4,666,000 compared to $3,054,000 for second quarter 2019, representing a 53% increase and highest quarterly sales in Company’s history –
– R&D activities focused on the development of innovative delivery systems –
– Net profit of $1,077,000 for Q2 2020 vs. net loss of $559,000 for Q2 2019 –
– Cash generated from operations of $2,727,000 in 2020 vs $853,000 in 2019 –
– Maintained production operations during COVID-19 pandemic, providing our customers with essential products while ensuring the health and safety of our employees –
EDMONTON, ALBERTA – August 20, 2020 – Ceapro Inc. (TSX-V: CZO; OTCQX: CRPOF) (“Ceapro” or the “Company”), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced financial results and operational highlights for the second quarter and the first six months ended June 30, 2020.
“We are extremely proud of our employees who worked tirelessly since the beginning of the year to deliver these excellent results despite the COVID-19 pandemic. Progress was made on all fronts from production operations with the largest volumes produced in Ceapro’s history to Research Engineering where the PGX group has successfully developed and optimized new products like yeast beta glucan as a potential inhalable therapeutic for COVID-19. As we continue to move forward and navigate operations during these unprecedented times, our focus remains on the health and safety of our associates, followed by business continuity,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.
Corporate and Operational Highlights
Pipeline Development:
• Announced expansion of collaborative research program with McMaster University to develop inhalable therapeutic for COVID-19; • Announced publication of positive results for a PGX-processed drug delivery system for accelerated burn wound healing;
• Pursued the development of new PGX-dried chemical complexes for potential applications under various forms like pills, capsules, fast dissolving strips and face masks; and
• Continued the monitoring of stability studies for liquid beta glucan and avenanthramides produced at the new manufacturing site as well as for the pharmaceutical grade dry powder formulation of avenanthramides.
Technology:
• Made significant technical upgrades of PGX demo plant;
• Completed technical assessment of available pieces of equipment world-wide for final decision on the type and location of future commercial scale PGX unit; and
• Executed on research collaboration projects with University of Alberta and McMaster University for the impregnation of various bio actives using PGX-processed dry beta glucan and alginate as potential delivery systems for multiple applications in healthcare.
Production Operations:
• Delivered the largest quantity of final product in Ceapro’s history; and
• Initiated decommissioning of Leduc manufacturing site.
Corporate:
• Advanced conversations with interested potential partners to utilize Ceapro’s innovative technologies; and
• Pursued out-licensing discussions for PGX-processed new chemical complexes.

Subsequent to Quarter:
• Announced publication of positive results from study evaluating avenanthramides in exercise-induced inflammation; and
• Announced successful development of yeast beta glucan as a potential inhalable therapeutic for COVID-19 and other fibrotic end-point diseases of the lung.
Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2020
• Total sales of $4,666,000 for the second quarter of 2020 and $8,939,000 for the first six months of 2020 compared to $3,054,000 and $6,251,000 for the comparative periods in 2019. The 43% increase in sales for the first six months is mainly due to a significant increase in sales of avenanthramides as well as an increase in sales of beta glucan to China, compared to the same period in 2019.
• Net profit of $1,077,000 for the second quarter of 2020 and $2,203,000 for the first six months of 2020 compared to a net loss of $559,000 and $1,195,000 for the comparative periods in 2019.
• Excluding non-cash items, mainly amortization, adjusted net profit for the first six months in 2020 is $ 3,323,000 versus adjusted net loss of $24,600 for the first six months of 2019.
• Cash flows generated from operations of $2,727,000 in 2020 vs $853,000 in 2019.
• Positive working capital balance of $7,732,000 as of June 30, 2020.
• Subsequent to quarter, made final payment clearing loan with Alberta Financial Service Corporation.
“Over the course of the second quarter, our operations executed and adapted well, delivering significantly improved results on both a sequential and year-over-year basis. This strong performance resulted in a record quarter for the Company, highlighting the resiliency of our business model focused on providing customers with essential, sustainable high-quality products. The ability of our business to successfully navigate through the challenging second quarter business environment is a testament to the commitment and hard work of our dedicated employees, and a measurable indication of the operational improvements and cost reduction initiatives being generated by our strategic investments of the past few years,” continued Mr. Gagnon.
“Looking ahead, while taking into account the ongoing potential economic impact related to COVID-19 and evolving consumption trends, we believe Ceapro is well-positioned to once again deliver a solid double-digit growth in sales over 2019. With a strong balance sheet, a group of dedicated people, and a solid base business coupled with the innovative technologies and products that we have developed to enable us to expand, Ceapro is poised to emerge as a successful Life Science company,” concluded Mr. Gagnon.

 

 

The complete financial statements are available for review on SEDAR at https://sedar.com/Ceapro and on the Company’s website at www.ceapro.com.
About Ceapro Inc.
Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and “active ingredients” from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company’s website at www.ceapro.com.
For more information contact:
Jenene Thomas
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release