Month: May 2021

Do Canadian Companies Remain Private Because of Corporate Governance?

Posted on by Admin


Canadians Aren’t Taking their Companies Public – and it’s a Problem for the Country’s Economy

 

Stock markets in Canada and the United States are booming right now. So why do so few companies want to join them?

With the exception of a couple of bad years, the last two decades have been a great time to be a public company. Valuations are at record highs and executive compensation has more than doubled as a percentage of corporate profits. Nevertheless, fewer and fewer companies and their managers want to take advantage of these opportunities.

As we show in a recent research study, the number of companies choosing to go public in Canada has been declining sharply since the late 1990s. In fact, so few companies have been interested in listing publicly that the total number of Canada’s public operating companies has declined by more than 40 per cent on a per capita basis. American public markets are not much better. They’re about half the size they were back in the 1990s.

There is surprisingly little concern about this development among Canada’s regulators and politicians. This inattention is probably a mistake. Canada has four times the number of public companies per capita as the United States and the United Kingdom. It depends on its public markets to finance and grow new businesses in a way no other developed country does.

 

Tech, Pharma Need Public Companies

Even more important is the impact Canada’s public markets has on the ability to grow companies in high-value industries like technology or pharmaceuticals. Experts have pointed out that Canada actually performs well at generating new ideas and starting new businesses.

The country fails, however, on scaling these new businesses up to a size where they can compete in world markets. Aside from one or two companies like Shopify, we don’t create large technology, software, nanotechnology, biotechnology or pharmaceutical companies.

Canada starts with technology that’s the best in the world in these sectors, but something happens before our companies become big enough to kick-start a new industry here. What happens? These valuable businesses get sold to larger companies within their industries, most of which aren’t Canadian.

One study found that of 164 acquisitions of Canadian technology companies between 2004 and 2012, only a single company was purchased by a Canadian buyer. This turns into a vicious cycle — because we don’t have large, mature companies in many industries, the buyers of our promising startups are foreign, and because our startups are acquired early in their development, we don’t grow into large, mature companies.

 

This article was republished with permission
from The
Conversation, a news site dedicated to sharing ideas from academic
experts.  It was written by
and represents the research-based opinions of Bryce Tingle N. Murray Edwards Chair in Business Law, University of
Calgary, and J. Ari Pandes Associate Professor of Finance, University of Calgary

 

No Spin-off Benefits

This dynamic means we lose the spin-off benefits of mature companies: we don’t train our workers in things like enterprise software sales or commercial nanotechnology research, and we don’t get new business ideas from older companies. Silicon Valley wouldn’t have become what it is today without beginning with large, mature firms like Xerox and Hewlett-Packard. Most entrepreneurs get their world-class ideas from working with more established companies.

What does Canada’s failure to scale technology businesses have to do with our public market problem? When a startup raises capital from outsiders, it must eventually provide them with an exit strategy so they can sell their shares. There are basically two kinds of exit: selling the company, usually to a larger company in its line of business, or taking the company public.

A public listing allows a company to continue to grow while permitting its early investors to sell their shares in the stock market.

Over the past two decades, an increasing number of companies have decided they would rather sell themselves than go public. What happened?

 

Explanations Don’t Hold Up

In our research, we find that the usual explanations for the public market decline aren’t plausible. They either don’t explain why the decline is happening both in Canada and the United States, or they contradict the dominant fact of the last two decades: public companies have been getting more and more valuable.

Instead, we look at the ways public markets have changed to make corporate governance more painful, less effective and higher risk.

The biggest change over the past two decades or so has been a revolution in the ways public companies are run. Generally, this has involved the transfer of power from managers and boards of directors to less informed and incentivized third parties like proxy advisers and even money managers.

By and large, these initiatives haven’t improved corporate performance, but they have significantly increased the unpleasantness of going public. They take decisions about compensation, board composition, strategy and selling the company out of the hands of the people who know the business best and, as summarized in our research, give it to outsiders who are less effective.

This transfer of power also disadvantages workers, creditors and other constituencies important to the ultimate success of any business.

 

The Way Forward

In our recently published paper, we give a variety of concrete suggestions to reduce the penalties incurred by executives and boards if they take their companies public, and to make going public more attractive.

 

They Include:

  • Eliminating the majority voting requirements that were adopted by the TSX in 2014, which can make directors more vulnerable to shareholder action
  • Introducing effective staggered boards to give corporations the option to provide their managers greater independence from shareholder pressure
  • Eliminating an executive compensation disclosure regime that has produced precisely the opposite results from those intended
  • Abandoning any suggestion there are one-size-fits-all corporate governance best practices
  • Reining in the power of proxy advisers, who have become the de facto sources of corporate governance and executive compensation regulation in this country.

 

These steps would clearly remove major barriers to Canadian companies choosing to scale up in this country.

 

Suggested Reading:

 

Lifecycle of a SPAC

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How PPI impacts CPI

Inflation’s Impact on Stocks, 4 Scenarios

 

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Do Canadian Companies Remain Private Because of Corporate Governance

Posted on by Admin


Canadians Aren’t Taking their Companies Public – and it’s a Problem for the Country’s Economy

 

Stock markets in Canada and the United States are booming right now. So why do so few companies want to join them?

With the exception of a couple of bad years, the last two decades have been a great time to be a public company. Valuations are at record highs and executive compensation has more than doubled as a percentage of corporate profits. Nevertheless, fewer and fewer companies and their managers want to take advantage of these opportunities.

As we show in a recent research study, the number of companies choosing to go public in Canada has been declining sharply since the late 1990s. In fact, so few companies have been interested in listing publicly that the total number of Canada’s public operating companies has declined by more than 40 per cent on a per capita basis. American public markets are not much better. They’re about half the size they were back in the 1990s.

There is surprisingly little concern about this development among Canada’s regulators and politicians. This inattention is probably a mistake. Canada has four times the number of public companies per capita as the United States and the United Kingdom. It depends on its public markets to finance and grow new businesses in a way no other developed country does.

 

Tech, Pharma Need Public Companies

Even more important is the impact Canada’s public markets has on the ability to grow companies in high-value industries like technology or pharmaceuticals. Experts have pointed out that Canada actually performs well at generating new ideas and starting new businesses.

The country fails, however, on scaling these new businesses up to a size where they can compete in world markets. Aside from one or two companies like Shopify, we don’t create large technology, software, nanotechnology, biotechnology or pharmaceutical companies.

Canada starts with technology that’s the best in the world in these sectors, but something happens before our companies become big enough to kick-start a new industry here. What happens? These valuable businesses get sold to larger companies within their industries, most of which aren’t Canadian.

One study found that of 164 acquisitions of Canadian technology companies between 2004 and 2012, only a single company was purchased by a Canadian buyer. This turns into a vicious cycle — because we don’t have large, mature companies in many industries, the buyers of our promising startups are foreign, and because our startups are acquired early in their development, we don’t grow into large, mature companies.

 

This article was republished with permission
from The
Conversation, a news site dedicated to sharing ideas from academic
experts.  It was written by
and represents the research-based opinions of Bryce Tingle N. Murray Edwards Chair in Business Law, University of
Calgary, and J. Ari Pandes Associate Professor of Finance, University of Calgary

 

No Spin-off Benefits

This dynamic means we lose the spin-off benefits of mature companies: we don’t train our workers in things like enterprise software sales or commercial nanotechnology research, and we don’t get new business ideas from older companies. Silicon Valley wouldn’t have become what it is today without beginning with large, mature firms like Xerox and Hewlett-Packard. Most entrepreneurs get their world-class ideas from working with more established companies.

What does Canada’s failure to scale technology businesses have to do with our public market problem? When a startup raises capital from outsiders, it must eventually provide them with an exit strategy so they can sell their shares. There are basically two kinds of exit: selling the company, usually to a larger company in its line of business, or taking the company public.

A public listing allows a company to continue to grow while permitting its early investors to sell their shares in the stock market.

Over the past two decades, an increasing number of companies have decided they would rather sell themselves than go public. What happened?

 

Explanations Don’t Hold Up

In our research, we find that the usual explanations for the public market decline aren’t plausible. They either don’t explain why the decline is happening both in Canada and the United States, or they contradict the dominant fact of the last two decades: public companies have been getting more and more valuable.

Instead, we look at the ways public markets have changed to make corporate governance more painful, less effective and higher risk.

The biggest change over the past two decades or so has been a revolution in the ways public companies are run. Generally, this has involved the transfer of power from managers and boards of directors to less informed and incentivized third parties like proxy advisers and even money managers.

By and large, these initiatives haven’t improved corporate performance, but they have significantly increased the unpleasantness of going public. They take decisions about compensation, board composition, strategy and selling the company out of the hands of the people who know the business best and, as summarized in our research, give it to outsiders who are less effective.

This transfer of power also disadvantages workers, creditors and other constituencies important to the ultimate success of any business.

 

The Way Forward

In our recently published paper, we give a variety of concrete suggestions to reduce the penalties incurred by executives and boards if they take their companies public, and to make going public more attractive.

 

They Include:

  • Eliminating the majority voting requirements that were adopted by the TSX in 2014, which can make directors more vulnerable to shareholder action
  • Introducing effective staggered boards to give corporations the option to provide their managers greater independence from shareholder pressure
  • Eliminating an executive compensation disclosure regime that has produced precisely the opposite results from those intended
  • Abandoning any suggestion there are one-size-fits-all corporate governance best practices
  • Reining in the power of proxy advisers, who have become the de facto sources of corporate governance and executive compensation regulation in this country.

 

These steps would clearly remove major barriers to Canadian companies choosing to scale up in this country.

 

Suggested Reading:

 

Lifecycle of a SPAC

Copper Facing an Onslaught of Demand



How PPI impacts CPI

Inflation’s Impact on Stocks, 4 Scenarios

 

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Trimmed PCE Inflation vs the PCE Deflator

Posted on by Admin


The PCE Deflator and the Trimmed PCE Inflation Rate Tell Different Stories

 

Covering April prices, the Bureau of Economic Analysis (BEA) released another widely followed core inflation measure on Friday. Many found it extra concerning. The reason the PCE Deflator received increased attention is that it’s generally the more stable measure and known as the one the Fed prefers (over CPI). It indicated price growth well above the Fed targeted 2% pace. A third inflation measure was also released Friday. Each month the Dallas Fed adjusts the PCE numbers to report this other inflation measure. This additional report rarely receives any investor attention. But, it is worth visiting in that it allows assumptions about what is happening below the economic surface, including consumers’ reaction to prices.

Background

The Fed has said it views a 2% annual increase in inflation as consistent with its mandates of stable prices and maximum employment.  The report on April CPI earlier this month indicated a pace, (for the month) well in excess of the target. One month is not a trend, and April certainly has its share of “one-off” issues, including basing growth from April 2020, which printed negative 0.8% with the lockdowns.  On Friday, the market couldn’t take much comfort in the PCE Deflator which also could indicate the Fed may have overshot in stimulating the economy. This one April number is not as easy to explain away in that it’s a broader gauge that is less volatile, and generally runs below the CPI average.

 

PCE Price Deflator

The PCEPI is the Federal Reserve Bank’s favored inflation gauge to help them direct policy. This is according to their own guidance. The reason given is that it is a broader gauge of prices than the basket of goods found in CPI.

 

 

The graph above shows the PCEPI charted against CPI-U for the past 20 years. It’s clear that CPI (red) is much more volatile, and in any given month may change dramatically which is not always the beginning of a change in price growth. By comparison, the numbers based on PCE include a broader base of goods. It also will report net of food and energy, because these often experience large shifts for reasons unrelated to economic price pressures (weather, war, politics, etc.).

 

The FOMC carefully considered both indexes when evaluating which metric to target and concluded that PCE inflation is the better measure. – Federal Reserve Bank, St. Louis

 

On Friday (May 28), PCEPI showed an annualized rate of inflation of 7.5%, and 8.3% ex-food and energy. This is a spike of the less volatile inflation measure and offers little consolation to those concerned with the higher interest rates that inflation promotes.

 

The Trimmed Mean PCE Inflation Rate

From the BEA data, the Dallas Federal Reserve Bank is responsible for calculating a monthly set of numbers. Their analysis, The Trimmed Mean PCE Inflation Rate, is an alternative measure of core inflation using PCE.

The Dallas Fed segments off the different goods and services based on price rise and looks at how much they have risen or fallen, then it calculates the actual consumption of those products. So the Fed weights the data based on consumption. One reason for this is it shows that substitutions limit the level of higher prices actually paid by households. If, for example, the price of oranges rise by 6%, while apple prices remain the same, if half the consumers substitute apples for oranges, the experienced household inflation would be overstated if not accounting for the reduced purchases of oranges and increased purchase of zero inflation apples. 

 

 

The above Trimmed Mean PCE chart covers the same 20 year period as the top chart. We can see by this alternative measure that inflation is not impacting households in a way that should concern policymakers. In fact, the April numbers shown below indicate a six-month annualized inflation of 1.8%, compared with the PCE Deflator at 4.3%.  These are seemingly two different stories.

 

 Source: Federal Reserve Bank, Dallas

 

Which is Correct?

Giving more weight to one or the other inflation measures would have led to rather different assessments of appropriate policy. The Fed prefers PCEPI over CPI-U for the same reason the S&P 500 is preferred by investors over the Dow 30 as a gauge of stock market movement. An index limited to 30 industrial stocks is not as inclusive as the index that includes 500 of the highest capitalized public companies. When comparing the PCEPI and its derivative Trimmed PCE Inflation, they both need to be viewed knowing what they demonstrate. The actual experienced cost of living change is best reflected in the Dallas Fed number (Trimmed), while economic price pressure is best reflected in the BEA number (PCEPI).

Take-Away

Perception, and expectations of future perception, drive stock prices more than the accuracy and precision of any measure of economic health. One thing for equity investors to keep an eye on, is if the bond market begins to lose faith in tame inflation or the Fed’s ability to keep an even keel, the expectations of equity investors will lean toward lightening up positions. If the bond market doesn’t react by selling off (higher rates), then higher prices of some products should do no more than cause sector rotation within the markets to companies benefiting – not unlike buying apples when you think oranges are priced too high.

 

Suggested Reading:

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Most Watched Channelchek C-Suite Interviews of 2020

 

Sources:

https://www.dallasfed.org/research/pce

https://www.stlouisfed.org/publications/regional-economist/july-2013/cpi-vs-pce-inflation–choosing-a-standard-measure

https://www.dallasfed.org/research/pce

https://www.dallasfed.org/research/economics/2019/0528.aspx

 

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Improving Mortality Rates Through Genetic Research

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FWC Fish and Wildlife Research (Flickr)


Studying Many Genes in Many Animals is Key to Understanding How Humans Can Live Longer

 

Much of longevity and aging research focuses on studying extremely long-lived species, including bats, naked mole-rats and bowhead whales, to find genetic changes that contribute to long life.

However, such work has yielded highly species-specific genetic changes that are not generalizable to other species, including humans. As a graduate student, I have studied growing evidence, including recent work from my advisers’ labs, that supports the hypothesis that lifespan is a complex and highly context-dependent trait that calls for a shift in how biologists think about aging.

 

Old Age: The Human Problem

Aging is the process by which the likelihood of death increases the longer an organism is alive. In mammals, aging is hallmarked by several molecular changes, including the breakdown of DNA, a shortage of stem cells and malfunctioning proteins.

Numerous theories that exist to explain why aging happens fall into two categories. “Wear-and-tear” theories postulate that essential processes simply wear out over time. On the other hand, “programmed death” theories assert that specific genes or processes are designed to drive aging.

Traditional definitions and aging theories are human-centric, and when we examine aging from a cross-species perspective, it becomes clear that human aging is unique. In fact, among animals there is no typical way to age.

Humans show low mortality rates until a sharp spike in mortality at very old age, around 80 years. Most mammals have relatively less increase in mortality with age and more consistent mortality through their lifespans. Some mammals, such as the tundra vole and the yellow-bellied marmot, show virtually no increase in mortality with age. In other words, older individuals are equally as likely to die as younger individuals, possibly because aging does not impact survival.

Current aging theories fail to explain the full complexity of aging across all mammals, let alone the tree of life. Such diversity not only highlights the complexity of aging and longevity but also makes it difficult to apply knowledge gained about one species to increase lifespan in another.

 

 

 

 

An Overabundance of ‘Longevity Genes’

Studies of exceptionally long-lived species have produced a plethora of so-called longevity genes. One such gene, called the insulin-like growth factor 1, or IGF1, receptor gene, promotes cell growth. IGF1 was originally associated with long life in bats and also increases lifespan in worms and mice. However, IGF1 may have the opposite effect in humans, because too much IGF1 may increase age-related illnesses like diabetes and cancer.

Another potential longevity gene called the ERCC1 gene produces a protein that helps repair DNA. The bowhead whale, the longest-lived mammal at 211 years, has a mutation in the ERCC1 gene that may contribute to the species’ exceptionally long lifespan, but the mutation is not shared by other long-lived species. Elephants have 19 copies of the TP53 gene, an essential cancer prevention gene, but adding even one extra TP53 gene to mice accelerates aging because stem cells are slower to regenerate.

Longevity genes can be inconsistent even within a single species. Studies that hunt for genetic changes common in long-lived humans, and absent from humans who lived shorter lives, have not delivered a master longevity gene. The genes detected are largely inconsistent across studies and rely heavily on the subpopulation of humans sampled and the precise definition of “exceptionally long-lived.”

 

How do we
Find Longevity Genes?

My recent work underscores the argument that aging-researchers should not be looking for individual longevity genes. Instead, biologists should be seeking many genes with similar functions working together to control longevity. Further, an effective search should not just focus on a single species, but many, to avoid species-specific elements.

As part of a research study, I used genomes from 61 mammals to detect genes that evolved in tandem with the evolution of extreme lifespan, thereby uncovering longevity-related changes universal across all mammals. At the gene level, I found few longevity genes, which makes sense in light of previous work. There is probably no single gene in all mammals that regulates lifespan.

 

 

When I looked at the big picture, however, and considered groups of genes working together to perform a similar function, I found a strong association between longevity and pathways related to controlling cancer. Examples of such groups of genes are those involved in regulating the cell cycle and programmed cell death, and pathways for immune function and DNA repair. All of these functions have been previously implicated in lifespan regulation in a wide variety of studies.

 

A New Perspective on Aging and Longevity

Species-specific and human genome-wide association studies have limitations that may be enriched by a broader analyses, both in terms of the genomic elements studied and the species considered. Rather than searching for a single gene in a single species that drives increased lifespan, broadening the search to many genes across many species can bring new insights.

One modified genome-wide approach using information about functional relationships among genes found an association between the human IGF1 pathway and longevity scattered over nine genes, a key example of broadening the search for the genetics of lifespan beyond single genes.

Similarly, comparative studies like mine that interrogate genetic similarities and differences among long-lived species have repeatedly demonstrated the power to detect longevity-related genetic changes spread over many genes and shared across many species.

While there may not be a proverbial genetic “Fountain of Youth” – one single genetic change that magically allows us all to live longer – scientists like me are continually improving our strategies to study longevity so we can someday all have longer, healthier lives.

 

This article was republished with permission from The Conversation, a news site
dedicated to sharing ideas from academic experts.  Written by: Amanda Kowalczyk Ph.D.
Candidate in Computational and Systems Biology, University of Pittsburgh

 

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Release – TAAL Distributed Information Technologies becomes Hut 8’s Newest Hosting Services Partner

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Enterprise Blockchain Processor, TAAL, becomes Hut 8’s Newest Hosting Services Partner

 

TORONTO, May 28, 2021 /CNW/ – Hut 8 Mining Corp. (TSX: HUT) (“Hut 8” or the “Company”), one of North America’s oldest and largest innovation-focused digital asset mining pioneers, is thrilled to announce its latest hosting partnership with Enterprise Blockchain transaction processor, TAAL Distributed Information Technologies Inc. (CSE: TAAL).

Hut 8 will provide physical hosting and optimization services and access to competitive electrical power for 960 newly-purchased digital hashing computers owned by TAAL. Hut 8 will also work with TAAL to make their existing fleet more efficient. Under the terms of this deal, TAAL will have 960 hashing computers, using 3.2 MW of Hut 8 power.

Hut 8’s hosting and optimization services include equipment sourcing and logistics management, white-glove installation, a dedicated Client Success Manager (CSM), and 24/7 physical security and technical operation teams dedicated around-the-clock at each site.

“At Hut 8, we are focused on diversifying our revenue-generating business model and creating catalysts for growth.” said CEO of Hut 8, Jaime Leverton. “Strengthening our existing hosting services line of business with strategic partners is a  growth focus for the Company as we continue to see more institutional players expand their investments in digital asset mining. We strive to offer our partners a best-in-class North American-based option for their hosting needs.”

TAAL operates exclusively on the BitcoinSV blockchain to support its blockchain transaction processing business. With this new hosting partnership, TAAL expects its hash rate to be at least 450 PH/s, well ahead of its stated goals of anticipating winning at least 30 BitcoinSV blocks per day attributed to TAAL. 

“We are very pleased to be working with Hut 8, as we both share a dedication to excellence and having aligned core values of limiting our impact on the environment,” comments Stefan Matthews, TAAL Executive Chairman, and Chief Executive Officer. 

About TAAL:

TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Visit TAAL online at www.taal.com

About Hut 8:

Hut 8 is one of North America’s oldest, largest and innovation-focused bitcoin miners. Hut 8 has one of the highest installed capacity rates in the industry and is #1 globally in held, self-mined Bitcoin of any crypto miner or publicly traded company. Recently ranked 11th (of 10,000) on the 2021 OTCQX® Best 50, and the first publicly traded miner on the TSX, the Hut 8 leadership team is continually looking for ways to accelerate innovation in high performance computing, and the blockchain ecosystem. We are stewards of powerful, industry-leading solutions, and drivers of innovation in digital asset mining and high performance computing. – Hut 8 applies a growth mindset to our revenue diversification, ESG and carbon footprint reduction strategy. We are a company committed to growing shareholder value regardless of #BTC market direction. #HodltheHut.

SOURCE Hut 8 Mining Corp

For further information: Media Contact: Hut 8, Dea Masotti Payne, T. 204-583-1695, E. dea.masottipayne@northstrategic.com

Release – TAAL Announces 2021 First-Quarter Financial Results

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TAAL Announces 2021 First-Quarter Financial Results

 

Vancouver, British Columbia; May 27, 2021 – TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ1 | OTC:TAALF) (“TAAL” or the “Company”), a vertically integrated blockchain infrastructure and service provider for enterprise, announced today its financial results for the three months ended March 31, 2021. These filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.taal.com. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.

BSV Holdings

  • As of May 25, 2021, TAAL had approximately 84,000 BitcoinSV in treasury.
    First Quarter Highlights
  • Hashing operations recommenced in January 2021 resulting in gross revenues of $0.9 million for the quarter, representing approximately 89% of gross revenues.
  • Income before operating expenses was $5.3 million for the quarter, which included a realized gain of $1.9 million on the Company’s sale of digital assets and unrealized gains of $2.9 million.
  • Operating costs totaled $5.1 million for the quarter, resulting in net positive income from operations.
  • On March 18, 2021, the Company closed a public equity offering for aggregate gross proceeds of approximately $40.0 million.
    Down payments for hashing equipment and hosting provider services of $6.3 million were made during the quarter.

Subsequent to the Quarter

The Company continues to make progress on its plans to deploy additional digital asset hashing equipment in Canada, and, as announced on May 21, 2021, recently purchased an additional 3,000 machines, which are expected to be fully operational by the first quarter of 2022.

TAAL has expanded its in-house research and development team, which will result in new TAAL products and services launches anticipated in Q3 2021. The Company will continue to bring additional team members on board to meet development and client needs.

“We have made significant progress this quarter towards our strategy to be the leading blockchain infrastructure and service provider for enterprise, and we are just getting started. BitcoinSV Blockchain transaction volume continues to accelerate, as of May 19, 2021 volumes now exceed BTC by up to 30% according to CoinDance. Our team is incredibly excited about these developments and our capacity to deliver transformative benefit for enterprise,” comments Stefan Matthews, TAAL Executive Chairman and Chief Executive Officer.

About TAAL Distributed Information Technologies Inc.

TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Visit TAAL online at www.taal.com

The CSE, nor its Regulation Services Provider, accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the expected deployment of additional computing power and capacity; and BSV transaction volumes. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in TAAL’s Annual Information Form dated April 30, 2021 under the heading “Risk Factors” and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.

For further information contact:
Matt Whitcomb, Investor Relations, matthew@taal.com 604-260-6142
Stefan Matthews, CEO & Executive Chairman, info@taal.com
Chris Naprawa, President, chris@taal.com

Esports Entertainment Group Announces Private Placement of $35 Million Convertible Notes with $17.50 Conversion Price

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Esports Entertainment Group Announces Private Placement of $35 Million Convertible Notes with $17.50 Conversion Price

 

Newark, New Jersey–(Newsfile Corp. – May 28, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (the “Company”) today announced that it has entered into a definitive agreement with an institutional investor for the sale of $35 million in principal amount of 8.0% senior convertible notes with a maturity date of two years following the date of issuance (“Notes”) in a private placement. The Notes are convertible into shares of common stock of the Company at a conversion price of $17.50 per share.

In connection with the private placement, the Company is issuing to the investor Series A warrants to purchase up to 2,000,000 shares of common stock and Series B warrants to purchase up to 2,000,000 shares of common stock. The Series A and Series B warrants have an exercise price of $17.50 and the Series A warrants are exercisable for four years following the date of issuance and the Series B warrants are exercisable for two years following the date of issuance. The Series B warrants are not exercisable until vesting under certain conditions. The Company has the right to call the Series A and Series B warrants, subject to the satisfaction of certain conditions for 30 consecutive trading days.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The gross proceeds of the offering are expected to be approximately $35 million before deducting placement agent fees and other offering expenses. The Company plans to use the net proceeds of the offering primarily for working capital and acquisition related expenses. The offering is expected to close on or about June 1, 2021, subject to customary closing conditions.

The Notes and warrants (and shares of common stock underlying the Notes and warrants) are being offering in a private placement and have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. Pursuant to a registration rights agreement, the Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock underlying the Notes and warrants issued in the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.


About Esports Entertainment Group

Esports Entertainment Group, Inc. is an esports and iGaming company. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.


FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

C-Suite Interview with Avivagen (VIVXF) CEO Kym Anthony

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Noble Capital Markets Senior Research Analyst Joe Gomes sits down with Avivagen CEO Kym Anthony for this exclusive interview.

Research, News, and Advanced Market Data on VIVXF


View all C-Suite Interviews

About Avivagen

Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com.

Cocrystal Pharma Announces the Passing of Chairman, CEO and Co-founder Dr. Gary Wilcox

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Cocrystal Pharma Announces the Passing of Chairman, CEO and Co-founder Dr. Gary Wilcox

 

BOTHELL, Wash., May 28, 2021 (GLOBE NEWSWIRE) — With great sadness, Cocrystal Pharma, Inc. (Nasdaq: COCP), (“Cocrystal” or the “Company”) announces that Gary Wilcox, Ph.D., Chairman, CEO and co-founder, suddenly passed away Wednesday, May 26 at the age of 74. The Board of Directors and staff of Cocrystal extend their deepest condolences to the Wilcox family and express their gratitude for Gary’s contributions to Cocrystal and to human health.

The Cocrystal Board of Directors has designated Sam Lee, Ph.D., President, and James Martin, CFO, to share the CEO responsibilities while seeking a successor for the position. Roger Kornberg, Ph.D., Cocrystal co-founder, Chief Scientist, Director and Chairman of the Scientific Advisory Board, has been named Chairman of the Board, and Steve Rubin, Director of Cocrystal and its predecessor company since 2008, has been named Vice Chairman. Cocrystal also announces the appointment of Richard C. Pfenniger, Jr. to the Board of Directors, maintaining membership at five. Mr. Pfenniger brings significant industry knowledge and corporate governance expertise, having served as chief executive officer, chief operating officer, general counsel, director and chairman at multiple healthcare companies.

“We are fortunate to have two highly qualified and dedicated executives in Sam and Jim to assume the CEO duties on an interim basis. Our Board has full confidence in a smooth transition and in their ability to advance our antiviral programs into clinical development,” said Dr. Kornberg. “We also welcome Richard to our Board. We will call upon his insights regarding many aspects of our business and to provide valuable operational, leadership and management advice to the Board in critical areas.

“The Cocrystal team is committed to carrying on Gary’s quest to address the growing global need for new antiviral treatments,” added Dr. Kornberg. “We will deeply miss Gary. He possessed a rare combination of scientific brilliance, business acumen and personal humility. He was an accomplished leader and earned respect throughout the biotechnology community, having achieved more in his 35 years in the industry than I can list. He brought an entrepreneurial spirit to Cocrystal that has been instrumental in deploying our novel replication technology to advance the discovery and development of antiviral candidates, and he sustained that spirit each and every day.”

Richard Pfenniger, Jr.

Mr. Pfenniger is a private investor who served as Interim CEO of Vein Clinics of America, Inc., a privately held company that specializes in the treatment of vein disease, from May 2014 to February 2015 and as Interim CEO of IntegraMed America, Inc., a privately held company that manages outpatient fertility medical centers, from January 2013 to June 2013. He served as Chief Executive Officer and President of Continucare Corporation, a provider of primary care physician and practice management services, from 2003 until 2011, and as Chairman of the Board of Directors of Continucare Corporation from 2002 until 2011. Previously, Mr. Pfenniger served as the Chief Executive Officer and Vice Chairman of Whitman Education Group, Inc. from 1997 through June 2003. Prior to joining Whitman, he served as the Chief Operating Officer of IVAX from 1994 to 1997, and, from 1989 to 1994, he served as the Senior Vice President-Legal Affairs and General Counsel of IVAX Corporation. Prior thereto he was engaged in the private practice of law.

Mr. Pfenniger currently serves as a director of OPKO Health (Nasdaq: OPK), a multinational biopharmaceutical and diagnostics company, GP Strategies Corporation (NYSE: GPX), a corporate education and training company, and Asensus Surgical, Inc. (NYSE American: ASXC), a medical device company. He also serves as the Vice Chairman of the Board of Trustees and as a member of the Executive Committee of the Phillip and Patricia Frost Museum of Science in Miami.

About Cocrystal Pharma, Inc.
Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of coronaviruses (including SARS-CoV-2), influenza viruses, hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.

Investor Contact:
LHA Investor Relations
Jody Cain
310-691-7100
jcain@lhai.com

Source: Cocrystal Pharma, Inc.

TAAL Announces 2021 First-Quarter Financial Results

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TAAL Announces 2021 First-Quarter Financial Results

 

Vancouver, British Columbia; May 27, 2021 – TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ1 | OTC:TAALF) (“TAAL” or the “Company”), a vertically integrated blockchain infrastructure and service provider for enterprise, announced today its financial results for the three months ended March 31, 2021. These filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.taal.com. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.

BSV Holdings

  • As of May 25, 2021, TAAL had approximately 84,000 BitcoinSV in treasury.
    First Quarter Highlights
  • Hashing operations recommenced in January 2021 resulting in gross revenues of $0.9 million for the quarter, representing approximately 89% of gross revenues.
  • Income before operating expenses was $5.3 million for the quarter, which included a realized gain of $1.9 million on the Company’s sale of digital assets and unrealized gains of $2.9 million.
  • Operating costs totaled $5.1 million for the quarter, resulting in net positive income from operations.
  • On March 18, 2021, the Company closed a public equity offering for aggregate gross proceeds of approximately $40.0 million.
    Down payments for hashing equipment and hosting provider services of $6.3 million were made during the quarter.

Subsequent to the Quarter

The Company continues to make progress on its plans to deploy additional digital asset hashing equipment in Canada, and, as announced on May 21, 2021, recently purchased an additional 3,000 machines, which are expected to be fully operational by the first quarter of 2022.

TAAL has expanded its in-house research and development team, which will result in new TAAL products and services launches anticipated in Q3 2021. The Company will continue to bring additional team members on board to meet development and client needs.

“We have made significant progress this quarter towards our strategy to be the leading blockchain infrastructure and service provider for enterprise, and we are just getting started. BitcoinSV Blockchain transaction volume continues to accelerate, as of May 19, 2021 volumes now exceed BTC by up to 30% according to CoinDance. Our team is incredibly excited about these developments and our capacity to deliver transformative benefit for enterprise,” comments Stefan Matthews, TAAL Executive Chairman and Chief Executive Officer.

About TAAL Distributed Information Technologies Inc.

TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Visit TAAL online at www.taal.com

The CSE, nor its Regulation Services Provider, accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the expected deployment of additional computing power and capacity; and BSV transaction volumes. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in TAAL’s Annual Information Form dated April 30, 2021 under the heading “Risk Factors” and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.

For further information contact:
Matt Whitcomb, Investor Relations, matthew@taal.com 604-260-6142
Stefan Matthews, CEO & Executive Chairman, info@taal.com
Chris Naprawa, President, chris@taal.com

Release – Esports Entertainment Group Announces Private Placement of 35 Million Convertible Notes with 17.50 Conversion Price

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Esports Entertainment Group Announces Private Placement of $35 Million Convertible Notes with $17.50 Conversion Price

 

Newark, New Jersey–(Newsfile Corp. – May 28, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (the “Company”) today announced that it has entered into a definitive agreement with an institutional investor for the sale of $35 million in principal amount of 8.0% senior convertible notes with a maturity date of two years following the date of issuance (“Notes”) in a private placement. The Notes are convertible into shares of common stock of the Company at a conversion price of $17.50 per share.

In connection with the private placement, the Company is issuing to the investor Series A warrants to purchase up to 2,000,000 shares of common stock and Series B warrants to purchase up to 2,000,000 shares of common stock. The Series A and Series B warrants have an exercise price of $17.50 and the Series A warrants are exercisable for four years following the date of issuance and the Series B warrants are exercisable for two years following the date of issuance. The Series B warrants are not exercisable until vesting under certain conditions. The Company has the right to call the Series A and Series B warrants, subject to the satisfaction of certain conditions for 30 consecutive trading days.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The gross proceeds of the offering are expected to be approximately $35 million before deducting placement agent fees and other offering expenses. The Company plans to use the net proceeds of the offering primarily for working capital and acquisition related expenses. The offering is expected to close on or about June 1, 2021, subject to customary closing conditions.

The Notes and warrants (and shares of common stock underlying the Notes and warrants) are being offering in a private placement and have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. Pursuant to a registration rights agreement, the Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock underlying the Notes and warrants issued in the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.


About Esports Entertainment Group

Esports Entertainment Group, Inc. is an esports and iGaming company. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.


FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

Energy Fuels Announces Election of Directors

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Energy Fuels Announces Election of Directors

 

LAKEWOOD, Colo., May 27, 2021 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”), the leading uranium producer in the United States, announces the results of the election of directors at its annual and special meeting of shareholders (the “Meeting“) held virtually on May 26, 2021.

The eight (8) nominees proposed by management for election as directors were elected by the shareholders of the Company, through a combination of votes by proxy and electronic poll, as follows:

Nominee

Votes For

% For

Votes Withheld

% Withheld

J. Birks Bovaird

16,494,553

85.70%

2,753,377

14.30%

Mark S. Chalmers

18,494,309

96.08%

753,621

3.92%

Benjamin Eshleman III

14,978,861

77.82%

4,269,069

22.18%

Barbara A. Filas

18,358,186

95.38%

889,744

4.62%

Bruce D. Hansen

16,600,408

86.25%

2,647,522

13.75%

Dennis L. Higgs

18,275,526

94.95%

972,404

5.05%

Robert W. Kirkwood

15,876,006

82.48%

3,371,924

17.52%

Alexander Morrison

16,631,280

86.41%

2,616,650

13.59%

About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and expects to commence commercial production of REE carbonate in 2021. Its corporate offices are in Lakewood, Colorado near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

SOURCE Energy Fuels Inc.

For further information: Energy Fuels Inc., Curtis Moore – VP – Marketing & Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com, www.energyfuels.com

What Companies are Involved in Spaceflight

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Space SPACs in the SPAC Space

 

Less than a week ago, Virgin Galactic successfully completed its third spaceflight and the first-ever space travel from Spaceport America, NM. The developing business of space flight is literally rocketing forward. The industry includes shipping, retrieving, military, human transportation and recreational travel. But, other than Virgin Galactic, (SpaceX is privately held) how do investors get exposure to the exciting field?

Recently there has been a spate of SPAC acquisitions with companies involved in the space industry. The stocks don’t have a long track record, in fact, many are still on the merger launchpad,  but they are all literally shooting for the stars.

SPACs Merging With Space Related Companies

Here are a few examples of companies about to be merge with a SPAC that are capturing people’s attention along with investor’s capital. Rocket maker Astra Space announced on February 2nd their intent to merge with SPAC Holicity (HOL). Astra is the fastest privately-funded company to demonstrate orbital launch capability. In a press release, Holicity announced they expect the merger to close during the second quarter of 2021. Another company, Momentus, builds in-space infrastructure services. Momentus has plans to merge with Stable Road Capital (SRAC). The company has a team of aerospace, propulsion, and robotics engineers. One of its properties is a cost-effective and energy-efficient in-space transport system based on water plasma propulsion. Rocket Lab (RKLB), entered into a definitive agreement to merge with Vector Acquisition (VACQ) in a deal valued at $4.1b. Rocket Lab is based in Long Beach, CA. The company designs and manufactures the electron and neutron launch vehicles and Photon spacecraft platform. Redwire Space is merging with Genesis Park (GNPK) to bring itself public. The deal is expected to close before the end of the second quarter.

 

Take-Away

 A slew of start-up companies have been created with disruptive technologies that could lead the next generation of space travel. New “space stocks” are being brought to market by Special Purpose Acquisition Companies (SPACs). The SPAC method of taking the companies public allows them to avoid the IPO process yet enjoy access to capital and other benefits of being a publicly traded enterprise.      

 

Suggested Reading:

Lifecycle of a SPAC

Analysis of a SPAC



Regulation of a SPAC

Merger of a SPAC

 

Sources

https://www.space.com/astra-rocket-maker-goes-public

https://www.holicity.inc/

 

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