Month: June 2021

Bond Market Understanding is Again Critical for Stock Investors

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Stocktwits Daily Rip is a Favorite of Mine, but Last Friday’s Left me Tearing my Hair Out

 

I have a gripe with a number of newsletters, blogs, daily market reports, and others that report on events that impact the stock market. This might seem picky, but at the most basic level, it’s best if we all speak the same language – our readers’ money is on the line.

 

Inflation and Interest Rates

One increasingly intent focus this year has been inflation. More specifically, bond yields which are driven by inflation and inflation expectations. Many of the stock market pundits and purveyors of news find themselves weighing in on this “other market.” A frightening percentage of the news that hits my inbox has been confusing basic concepts.  To those unfamiliar with interest rate securities and trying to understand by studying their own chosen and trusted thought provider’s words, this must cause some difficulty. One common contradiction I’ve noticed is when rates have risen, I’ve seen it described as a “rally,” or “bonds strengthening.” Last week a friend that trades 10-year Treasuries sent me an article from a prominent source that read “bonds had a good day” after rates had spiked upward in May. Rates moving higher is a bond market sell-off. If they continue to move higher, bonds are considered in a bear market. They haven’t been in a prolonged bear market for over 40 years, so when this happens it will mean quite an adjustment.

 

Not a Word Snob

Despite being the Content Manager/Managing Editor here at Channelchek, I’m not a word snob. I enjoy seeing creativity and new ways to avoid repeating old market jargon.  Especially when it comes to bonds, they can be boring enough. However, there are certain phrases and descriptions when used, need to mean the same thing, whether it’s in a newsletter from a broker, heard on CNBC, an influencer you follow on YouTube, or anyplace else you’re seeing and reacting as part of trading decisions.

One source I read daily to keep my finger on the pulse of the market, and because it informs in an amusing style, disappointed me on Friday.

 

StockTwits Daily Rip?

Let me first say I look forward to the email I get from Stocktwits each day, just after dinner. The Daily Rip is a recap of the trading day. It’s thorough, lighthearted, and there’s always some fun along the way. At times it makes me aware of something I missed in sectors or markets that weren’t on my radar. My hats off to the people at Stocktwits that keep this 7-day a week email fun and informative.  

On Friday, while getting ready to do nothing the rest of the night, I opened my Daily
Rip, that’s when my head almost exploded. This is what I saw:

 

Source: Stocktwits Daily Rip 6/11/2021

 

How many things can you count that are not right with this sentence? “Not right,” in that they don’t follow the accepted convention for discussing bonds. Perhaps you don’t see any. If that’s the case, then the rest of this will be helpful. After all, stock market investors are going to be hearing more about bonds and interest rate’s impact on stocks than we have since January 2020. Equity investors don’t need a Frank Fabozzi understanding on the subject, but I’m sure some Channelchek readers will be helped by being reminded of bond basics. Let’s break down the above two sentences from Friday.

“Bonds rose today after yesterday’s red hot inflation numbers.”

The term “bonds rose” or “bonds fell” in fixed income parlance refers to price. I checked to verify that yields actually rose on Friday in response to above-expected inflation. They did. When yields rise, bonds get cheaper in price, they “fall.” Bondholders looking at their accounts are less happy than they were before.  

The second sentence is loaded with problems, but only two are critical to be understood.

“The US 3-year bond yield jumped 5.38% and the 5-year bond yield hiked 4.05% – investors are betting
yields could be raised to fight inflation.”

Subscribers to the Daily Rip know the writing style is fun snippets of info, so I don’t think anyone would be confused by having to translate “US 3-year bond” to “US Treasury Note maturing in three years.” It is the next part that could cause a great deal of puzzlement and, written in this way, is largely meaningless. The yield on the 3-year USTN went from .293% to .308% based on one source of pricing (remember, there is no central bond market exchange). This is indeed an increase in the magnitude of the yield in excess of 5%. However, to say the yield jumped 5.38% might cause one to think the additional yield on this note has added more than 5%. In reality, the yield increased by around .015%. The occurrence worded as “up .015%” is much more useful. The same with the 5-year note which we’re told was hiked 4.05%; it rose from close to a 0.74% yield on Thursday to 0.75% on Friday. This additional 0.01% equated to a price loss of $0.046 per $100 worth of 5-year bonds. These two are not the big moves that they appeared to be the way they were presented. In contrast, hard-core bond market outlets reported that bonds shrugged off inflation news. Bloomberg even quoted Mischler Financial Group’s Tony Farren as referring to the Treasury market as appearing “Bullet-Proof.”

 

Bond-Speak Vocabulary 

When I travel anyplace that I am not fluent in the language, I make sure I know a couple of common phrases. First, I learn to admit I don’t speak the language. Then I learn to ask where the bathroom is. And, of course, what’s a vacation without being able to ask for a beer. It’s the same when you visit a market that you don’t plan on living in; you need to provide yourself a basic ability to get around.

The points to take away from this rant (educational piece) is if we are being told “bonds rose,” most people in and around the industry would assume rates went down. And, one doesn’t report a change in yield as the percentage difference between the old yield and the new one. This is even more misguided and magnified when rates are below 1%. Price changes, just like stocks, are what investors in bond and stock markets care about. A very small inconsequential change in price can move yields ever so slightly, but if reported on a percent growth in yield basis, it tells a story that could unintentionally mislead. The percentage change in price is more useful to those looking at the total return in the bond market; the dollar change is more useful for those keeping track of their portfolio valuation. Also, Remember that closing prices can be different on bonds depending on your source as they are not traded on an exchange.

As I was working to dig up data to write this without my office Bloomberg terminal for prices, I found that historic bond prices are hard to come by on the internet, (yields can be found on ustreas.gov). I visited my go-to places for stock quotes and found US Treasury notes and bonds would show yield and call it price. I was further shocked to see that many very useful stock market charting sites confuse yield history with the yield curve. This is like asking for a beer and being directed to the bathroom. Hopefully, we all get some agreement as to how to communicate interest rate information.

 

 

Take-Away

It’s your most well-behaved child that has the potential of disappointing you most. I used the Stocktwits Daily Rip as my example, although I have others, because I am a fan – I find myself on their message board several times a day. In fact, investors that haven’t registered free for access to research reports, video interviews and daily articles on Channelchek first find us on Stocktwits. If you aren’t registered with Channelchek now is a good time to get that done. If you aren’t following us on Stocktwits or a YouTube subscriber, I’d strongly encourage making sure you follow us so you don’t miss anything.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

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Crypto Mining Gives Mothballed Fossil Fuel Plants New Life



Is Inflation Going to Hurt Stock?

Seeking Alpha Paywall Causes Frustration

 

Sources:

https://dailyripblog.com/2021/06/11/whats-going-on-amazon/

https://finance.yahoo.com/news/bullet-proof-treasury-market-eyes-200000195.html

 

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Ely Gold Royalties (ELYGF)(ELY:CA) – Existing Portfolio Underpins Visible Growth Outlook

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Friday, June 11, 2021

Ely Gold Royalties (ELYGF)(ELY:CA)
Existing Portfolio Underpins Visible Growth Outlook

As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

    Existing portfolio provides foundation for growth. In the last year, the company significantly enlarged its asset portfolio via acquisition and option agreements. Ely’s current portfolio includes 12 key assets including 4 producing royalties, 26 development assets, and 43 exploration assets. Ely also owns 20 additional mineral properties which are being marketed for sale. In March, Ely agreed to acquire an additional 25% interest in its Hog Ranch property that will increase its net smelter return royalty to 2.25% from 1.5% and its interest in the leased mining claims to 75.1%.

    Growing revenue stream.  First quarter revenues increased to C$1,009,921 compared to C$224,993 during the prior year period due to increasing royalty streams. Royalty revenue increased to C$733,821 from C$117,383, while option proceeds increased to C$276,100 from C$107,610. Ely Gold Royalties reported a first quarter loss of C$(0.00) per share compared to C$(0.02) during the prior year period and …



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. 

Esports Entertainment Group Makes Strategic Push into Ohio; Testifies in Front of Senate Select Committee on Gaming

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Esports Entertainment Group Makes Strategic Push into Ohio; Testifies in Front of Senate Select Committee on Gaming

 

Newark, New Jersey–(Newsfile Corp. – June 11, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”) is proud to announce that over the past week two executives, CFO Dan Marks and VP of Strategy Jeff Cohen, have been invited to testify in front of the Ohio State Senate Select Committee on Gaming as advocates for the esports industry. As a result of their testimony, as well as testimony from Jonah Blake of Game Fund Partners, and the Committee’s recognition of esports as a major area of interest for the state of Ohio, the current proposed Senate Sports Wagering Sub Bill 176 includes esports as an eligible sport to be wagered upon.

“Ohio’s recognition of esports and its inclusion in Sub Bill 176 is a major step forward for both EEG as well as the entire esports industry,” commented Grant Johnson, CEO of Esports Entertainment Group. “This, in addition to the recent announcement of our partnership with the Cleveland Cavaliers, solidifies Ohio as a strategic gaming jurisdiction for EEG,” continued Johnson. “We intend to build several Helix Centers as well as bring our Vie esports betting platform and look to form additional partnerships with major sports organizations in the state. We look forward to working with the Ohio legislature and our strategic partners to create a robust gaming ecosystem in the state. We believe Ohio can form a model for innovation and investment in esports that other states will follow.”

See below for links to the testimonies:

www.ohiochannel.org/video/ohio-senate-select-committee-on-gaming-6-2-2021

www.ohiochannel.org/video/ohio-senate-select-committee-on-gaming-6-10-2021

*EEG testimony starts 8 mins in*

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

 

Disclosure:
RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RedChip Companies, Inc., our specialists, advisors, and partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of the information provided, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or incompleteness of this information).

Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.

We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission (“SEC”) at www.sec.gov.

Esports Entertainment Group, Inc. (GMBL) is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a $4,000 monthly cash fee, beginning in June 2018, and 225,000 shares of Rule 144 stock for RedChip investor awareness services.

Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services.

Capstone Green Energy Reports Fourth Quarter & Full-Year Fiscal 2021 Financial Results – Outlines Goals For New Fiscal Year

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Capstone Green Energy (Nasdaq:CGRN) Reports Fourth Quarter & Full-Year Fiscal 2021 Financial Results – Outlines Goals For New Fiscal Year

 

Annual Cash Provided by Operating Activities of $1.7M – Highest in Company History

Cash and Cash Equivalents Expands to $49.5M

VAN NUYS, CA / ACCESSWIRE / June 10, 2021 / Capstone Green Energy Corporation (NASDAQ:CGRN), formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy solutions, today announced its fourth-quarter and full-year fiscal 2021 financial results and outlined new goals for the upcoming year. 

“I’m pleased to announce that we substantially achieved our goal of improving Adjusted EBITDA by $10 million year-over-year, and this was accomplished despite the global COVID-19 pandemic extending beyond what we originally forecasted in our fiscal 2021 planning sessions,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “The global pandemic combined with our goal to build a stronger balance sheet, including as a selling point to our customers, put driving stronger liquidity at the top of our list of strategic goals. I’m proud to report that not only did we end the fiscal year with the best cash from operations performance in the company’s history, but we also achieved the highest ending cash balance since fiscal 2012,” concluded Mr. Jamison.

Financial Highlights of Fourth Quarter Fiscal 2021 vs. Fiscal 2020:

  • Total revenue of $17.9 million for the quarter, up from $11.6 million year-over-year
  • Negative gross margin of $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% of revenue, in the same period last year
  • Non-GAAP gross margin of $2.7 million, or 15% of revenue, compared to 6% in the same period last year
  • Net loss of $4.8 million for the quarter, improved from a net loss of $6.9 million in the fourth quarter of fiscal 2020
  • Negative Adjusted EBITDA, excluding executive bonus, of $1.9 million, compared to negative Adjusted EBITDA of $5.0 million in the fourth quarter of fiscal 2020
  • Generated positive cash from operations of $5.1 million, including a one-time $5.0 million legal settlement, compared to negative $4.0 million in the fourth quarter of fiscal 2020
  • Cash and cash equivalents increased to $49.5 million, compared to $15.1 million as of March 31, 2020

Financial Highlights of Fiscal 2021 vs. Fiscal 2020:

  • Total revenue of $67.6 million, compared to $68.9 million year-over-year, despite the global pandemic
  • Gross margin of $6.9 million, or 10% of revenue, compared to $9.0 million, or 13% of revenue, in fiscal 2020
  • Non-GAAP gross margin of $12.8 million, or 19% of revenue, compared to $10.2 million, or 15% or revenue, in the same period last year
  • Net loss of $18.4 million for the fiscal year compared to $21.9 million last year
  • Negative Adjusted EBITDA, excluding executive bonus, of $4.0 million, compared to Negative Adjusted EBITDA of $13.2 million in fiscal 2020
  • Cash provided by operating activities of $1.7 million compared to cash used in operating activities of $19.7 million in fiscal 2020

Fiscal 2021 – The Year in Review

Despite COVID-19’s challenging business environment, the Company took swift, proactive steps to deliver the forecasted positive Adjusted EBITDA in the first quarter that ended on June 30, 2020. Those results represented a $5.1 million improvement compared to the prior quarter, March 31, 2020, and a $3.5 million improvement compared to the prior year quarter ended June 30, 2019. This was the culmination of our strategic plans to invest capital dollars to expend our long-term microturbine rental fleet and substantially lower operating costs in the following ways:

  • Reduce direct material costs by $3.0 million annually
  • Cut R&D spending by approximately 25%
  • Closely manage operating expenses
  • Increase aftermarket spare parts margins in part from our newly upgraded United Kingdom Integrated Remanufacturing Facility

In the second quarter of the Company’s fiscal year, we announced $1.9 million positive cash provided by operating activities and continued in our improvements in total revenue and gross new product bookings.

In the third quarter, we reported revenue of $20.7 million, which was a 39% percent increase from the prior quarter. We also proactively upsized our Goldman Sachs three-year term note from $30.0 million to $50.0 million, bringing $20.0 million of new cash into the business, with a reduction in the interest rate. Part of these new funds are to be used to grow our rental fleet from 10.6 to 21.1 megawatts (MW).

In the fourth quarter we saw continued growth in our gross product bookings, which drives future top-line revenue growth.

 

In addition, our total cash and cash equivalents increased $34.4 million to $49.5 million, compared to $15.1 million as of March 31, 2020, the start of the pandemic. This increase was primarily due to the upsize of our Goldman Sachs term note, equity sales of $15.9 million, net, from our at-the-market offering, and a beneficial $5.0 million settlement from the lawsuit we initiated with a former supplier for a faulty generator part, which were offset by operating costs and the building of rental assets.

New Fiscal 2022 Strategic Goals
Capstone Green Energy remains sharply focused on sustaining and achieving our strategic business goals to build competitive advantages and expand the total addressable markets (TAM) in the regions we service. These efforts are designed to position us as a green energy leader in fiscal 2022 and beyond. Our goals include:

  • Broadening our already diverse energy products and service offerings
  • Expanding our direct solutions sales team focused on growing top line
  • Expanding our high-margin, long-term rental fleet to 21 MW and beyond
  • Increasing aftermarket margins across the board
  • Continuing to focus on managing working capital
  • Continuing to grow the Distributor Support System (DSS) subscription program

New Hydrogen Products
During the year, Capstone continued to expand and develop our new hydrogen products. The Company released our first commercially available hydrogen-based Combined Heat and Power (CHP) product, which can safely run on a 10% hydrogen-90% natural gas mix, and we are targeting a commercial release of 30% hydrogen-70% natural gas mix product by March 31, 2022.

In addition, in May, we announced a demonstration project with Blue Economy CRC, a cooperative research center in partnership with national and international universities and industry that was established to bring together sustainable seafood production and renewable energy in order to further develop Australia’s aquaculture industry. This microturbine system is intended to run on 100% hydrogen.

ESG and a Sustainable Future
As part of our overall strategy, we are focusing on the significance of environmental, social, and governance (ESG) principles in everything we do. As a leading green energy solutions provider, we take pride in offering a diverse product offering that emphasizes protecting the environment by leaving it better than before. Capstone estimates that, over the last three years, it has helped save companies approximately $700 million on energy costs and over approximately one million tons of carbon. We are committed to offering our innovative and green, sustainable, and affordable energy solutions and to providing long-term, resilient, clean power to end users the world over.

Financial Results for the Fiscal 2021 Fourth Quarter and Full-Year
Total revenue for the fourth quarter of fiscal 2021 increased 54%, or $6.3 million, to $17.9 million, compared with $11.6 million in the fourth quarter of fiscal 2020. Despite the significant impacts of the global pandemic, total revenue for fiscal 2021 decreased only 2%, or $1.3 million, to $67.6 million, compared with total revenue of $68.9 million in fiscal 2020.

Gross margin was negative $2.6 million, or negative 14% as a percentage of revenue, compared to $0.5 million, or 4% as a percentage of revenue, in the fourth quarter of fiscal 2020. On a full-year basis, gross margin decreased to $6.9 million in fiscal 2021, compared to $9.0 million for fiscal 2020. The negative gross margin in the fourth quarter of fiscal 2021, was primarily due to a $4.9 million reliability repair accrual established to replace remaining fielded units affected by a supplier defect.

Non-GAAP gross margin, which is gross margin less depreciation and amortization, stock-based compensation expense, and the expense related to the reliability repair accrual, was $2.7 million, or 15% of revenue, compared to $0.7 million, or 6% of revenue, in the fourth quarter of fiscal 2020. The increase as a percentage of revenue was primarily due to improved Factory Protection Plan (FPP) margins year-over-year. On a full-year basis, non-GAAP gross margin increased to $12.8 million, or 19% of revenue, in fiscal 2021, compared to $10.2 million, or 15% of revenue, for fiscal 2020. The increase as a percentage of revenue was primarily due to lower overhead costs from the COVID-19 Business Continuity Plan on similar revenue levels.

Operating expenses in the quarter decreased $0.1 million, to $5.9 million, compared with $6.0 million in the fourth quarter of fiscal 2020 despite a $0.6 million executive bonus expense recognized in the fourth quarter of fiscal 2021 (with none in the prior year quarter). Operating expenses for fiscal 2021 were $20.8 million compared with $25.9 million for fiscal 2020. The decrease was primarily due to cost savings from the COVID-19 Business Continuity Plan.

Net loss was $4.8 million in the fourth quarter of fiscal 2021, compared to $6.9 million in the fourth quarter of fiscal 2020. Net loss was $18.4 million in fiscal 2021, compared to $21.9 million in fiscal 2020.

Adjusted EBITDA, excluding executive bonus, was negative $1.9 million in the fourth quarter of fiscal 2021, compared to Adjusted EBITDA of negative $5.0 million in the fourth quarter of fiscal 2020. Adjusted EBITDA, excluding executive bonus, for fiscal 2021 was negative $4.0 million compared to Adjusted EBITDA of negative $13.2 million in fiscal 2020.

Cash and cash equivalents were $49.5 million as of March 31, 2021, compared to $15.1 million as of March 31, 2020.

About Capstone Green Energy
Capstone Green Energy (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated to be $698 million in energy savings and 1,115,100 tons of carbon savings.

For more information about the Company, please visit www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under the caption “New Fiscal 2022 Strategic Goals” and other statements, statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason.

Financial Tables to Follow:

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

 March 31, March 31,
2021 2020
Assets
Current Assets:
Cash and cash equivalents
 $ 49,533 $ 15,068
Accounts receivable, net of allowances of $314 at March 31, 2021 and $703 at March 31, 2020
 20,593 16,240
Inventories, net
 11,829 21,460
Prepaid expenses and other current assets
 4,953 3,987
Total current assets
 86,908 56,755
Property, plant, equipment and rental assets, net
 9,630 7,749
Non-current portion of inventories
 1,845 1,221
Other assets
 7,639 8,230
Total assets
 $ 106,022 $ 73,955
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses
 $ 19,767 $ 15,000
Accrued salaries and wages
 1,889 1,644
Accrued warranty reserve
 5,850 1,934
Deferred revenue
 6,374 7,898
Current portion of notes payable and lease obligations
 576 477
Total current liabilities
 34,456 26,953
Deferred revenue – non-current
 765 944
Term note payable, net
 52,865 27,963
Long-term portion of notes payable and lease obligations
 4,762 5,074
Total liabilities
 92,848 60,934
Commitments and contingencies (Note 12)
Stockholders’ Equity:
Preferred stock, $.001 par value; 1,000,000 shares authorized; none issued
 – –
Common stock, $.001 par value; 51,500,000 shares authorized, 12,898,144 shares issued and 12,824,190 shares outstanding at March 31, 2021; 10,286,366 shares issued and 10,228,789 shares outstanding at March 31, 2020
 13 10
Additional paid-in capital
 934,381 915,755
Accumulated deficit
 (919,271 ) (900,869 )
Treasury stock, at cost; 73,954 shares at March 31, 2021 and 57,577 shares at March 31, 2020
 (1,949 ) (1,875 )
Total stockholders’ equity
 13,174 13,021
Total liabilities and stockholders’ equity
 $ 106,022 $ 73,955

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

 Three Months Ended Year Ended
March 31, March 31,
2021 2020 2021 2020
Revenue:
Product and accessories
 $ 9,946 $ 4,053 $ 36,517 $ 35,338
Parts and service
 7,916 7,507 31,119 33,588
Total revenue
 17,862 11,560 67,636 68,926
Cost of goods sold:
Product and accessories
 15,554 4,494 42,025 42,273
Parts and service
 4,859 6,608 18,756 17,622
Total cost of goods sold
 20,413 11,102 60,781 59,895
Gross margin
 (2,551 ) 458 6,855 9,031
Operating expenses:
Research and development
 714 838 2,417 3,649
Selling, general and administrative
 5,158 5,196 18,391 22,211
Total operating expenses
 5,872 6,034 20,808 25,860
Loss from operations
 (8,423 ) (5,576 ) (13,953 ) (16,829 )
Other income (expense)
 4,989 (32 ) 4,993 133
Interest income
 7 8 30 8
Interest expense
 (1,321 ) (1,345 ) (5,156 ) (5,198 )
Loss on debt extinguishment
 – – (4,282 ) –
Loss before provision for income taxes
 (4,748 ) (6,945 ) (18,368 ) (21,886 )
Provision for income taxes
 9 4 19 12
Net loss
 (4,757 ) (6,949 ) (18,387 ) (21,898 )
Less: Deemed dividend on purchase warrant for common shares
 15 12 15 87
Net loss attributable to common stockholders
 $ (4,772 ) $ (6,961 ) $ (18,402 ) $ (21,985 )
Net loss per common share attributable to common stockholders-basic and diluted
 $ (0.39 ) $ (0.73 ) $ (1.63 ) $ (2.70 )
Weighted average shares used to calculate basic and diluted net loss per common share attributable to common stockholders
 12,335 9,477 11,280 8,150

CAPSTONE GREEN ENERGY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)

 Three months ended Year ended
Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA
 March 31, March 31,
2021 2020 2021 2020
Net loss, as reported
 $ (4,757 ) $ (6,949 ) $ (18,387 ) $ (21,898 )
Interest expense
 1,321 1,345 5,156 5,198
Provision for income taxes
 9 4 19 12
Depreciation and amortization
 380 392 1,452 1,616
EBITDA
 $ (3,047 ) $ (5,208 ) $ (11,760 ) $ (15,072 )
Loss on debt extinguishment
 – – 4,282 –
Stock-based compensation and other expense
 259 244 1,599 913
Restructuring charges
 – – – 927
Non-recurring legal settlement
 (5,000 ) – (5,000 ) –
Reliability repair accrual
 4,945 – 4,945 –
Non-recurring legal costs related to settlement
 300 – 720 –
Adjusted EBITDA
 (2,543 ) (4,964 ) (5,214 ) (13,232 )
Executive bonus
 611 – 1,230 –
Adjusted EBITDA excluding executive bonus
 $ (1,932 ) $ (4,964 ) $ (3,984 ) $ (13,232 )

Three months ended March 31,

Year ended March 31,
Reconciliation of Reported Gross Margin to

As % of

As % of

As % of

As % of

Non-GAAP Gross Margin

2021

revenue

2020

revenue

2021

revenue

2020

revenue
Gross Margin, as reported

$

(2,551)

(14)%

$

458

4%

$

6,855

10%

$

9,031

13%

Depreciation and amortization

265

1%

259

2%

964

2%

1,079

2%

Stock-based compensation expense

24

–

17

–

83

–

69

–

Reliability repair accrual

4,945

28%

–

–

4,945

7%

–

–
Non-GAAP Gross Margin

$

2,683

15%

$

734

6%

$

12,847

19%

$

10,179

15%

To supplement the Company’s unaudited financial data presented on a generally accepted accounting principles (GAAP) basis, management has presented Adjusted EBITDA and Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin, which are non-GAAP measures. These non-GAAP measures are among the indicators management uses as a basis for evaluating the Company’s financial performance, as well as for forecasting future periods. Management establishes incentive compensation performance targets and annual budgets and makes operating decisions based in part upon these metrics. Accordingly, disclosure of these non-GAAP measures provides investors with some of the same information that management uses to understand the Company’s economic performance year-over-year.

EBITDA is defined as net income (loss) before interest, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA before loss on debt extinguishment, stock-based compensation and other expense, restructuring charges, non-recurring legal settlement, reliability repair accrual, and non-recurring legal costs related to settlement. Loss on debt extinguishment includes expenses associated with the accounting for the October 2020 Goldman Sachs note transaction. Stock-based compensation and other expense includes expense related to stock issued to employees, directors, and vendors. Restructuring charges include facility consolidation costs and costs related to the Company’s cost reduction initiatives. Non-recurring legal settlement is a one-time payment from a lawsuit we initiated with a former supplier for a part defect. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect. Non-recurring legal costs related to settlement are legal costs associated with above settlement. Adjusted EBITDA excluding Executive Bonus is defined as EBITDA before expense related to Executive Bonus accruals.

Non-GAAP Gross Margin is defined as Gross Margin before depreciation and amortization expense, stock-based compensation expense, and a reliability repair accrual. Stock-based compensation expense includes expense related to stock issued to employees. The reliability repair accrual accounts for the replacement of remaining high risk failure parts in some of our fielded units due to the former supplier part defect.

EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding Executive Bonus, and Non-GAAP Gross Margin are not measures of the Company’s liquidity or financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure presented in accordance with GAAP, or as an alternative to cash flows from operating activities or any other measure of liquidity presented in accordance with GAAP.

While management believes that the non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

C-Suite Interview with Sierra Metals (SMTS) CEO Luis Marchese

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Noble Capital Markets Senior Research Analyst Mark Reichman sits down with Sierra Metals CEO Luis Marchese for this exclusive interview.

Research, News, and Advanced Market Data on SMTS


View all C-Suite Interviews

About Sierra Metals

Sierra Metals is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential. The Company’s common shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”. For further information regarding Sierra Metals, please visit www.sierrametals.com.

A Discussion with Regenerative Medicine Foundation Executive Director Bernard Siegel

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An Interview with the Founder and Executive Director of the Regenerative Medicine Foundation

 

Next week the Regenerative Medicine Foundation (RMF) will be holding its annual World Stem Cell Summit. As it has each year for the past decade and a half, this year’s 16th World Stem Cell Summit (WSCS) will bring us all a step closer to solutions to health problems that had once seemed insurmountable. At the heart of this great event is Bernard Siegel (Bernie), Founder of the WSCS and Executive Director of the Regenerative Medicine Foundation. This year’s summit will be held virtually from June 14-18. Noble Capital Markets, along with Channelchek, are Platinum sponsors of the 2021 WSCS. This allowed me the opportunity and good fortune to be able to sit with Bernie and ask a few questions to help enhance the understanding of regenerative medicine, the World Stem Cell Summit, and Bernie Siegel himself.

 

Channelchek (PH):

Bernie, you were an attorney; how did you did move from a non-medical background to one where you’re at the forefront and even the spokesperson for stem cell research.

 

Bernie Siegal:

I did come into the field entirely outside of the realm of science, policy, and regulation. I was a practicing lawyer, but through my entire life have been interested in a lot of topics. I’ve always been a reader, and one of the topics I read a lot on is science, including the life sciences industry policy and politics.  I came to realize this field is so different, so helpful, and so innovative – it can possibly create treatments for chronic diseases with no available cures, this resonated with me.

The actual turning point was when I survived cancer and decided I should do what I want including only taking cases I wanted to and allow myself to pursue other ventures that I might find interesting.

I got involved in this field and wound up taking a well-known case involving a religious sect claiming to have delivered a cloned baby. The case had national attention, and I wound up testifying before Congress and the National Academy of Science.  Then excessively interviewed on news shows aired across the country. So much attention and noise surrounded the case that George W. Bush was President and brought up and denounced human cloning in his 2003 State of the Union address. He did this the day before my case went for arraignment.

I quickly became viewed by the science world as the only person standing up for legitimate science, and they were helping me.  It became an extremely serious matter, I was doing it to establish a legal principle. By the time the case was done my life was turned upside down.

 

Channelchek (PH):

Some of the pushback on this science has been the use of embryonic cells. Is this still a hurdle?

 

Bernie Siegel:

Suppose the surplus in the embryos from IVF is being tossed as medical waste where they could be used for research and something good can come from it. In that case, it is a philosophical question and a political issue for those opposed to embryonic research.

The thing is, today, regenerative medicine has ways of creating very potent stem cells that can turn into any type of tissue in the body without destroying an embryo.  Adult pluripotent cells can be used to create cells that will differentiate into other human tissue.  This was discovered by a Japanese doctor by the name of Shinya Yamanaka who won the Nobel Prize in 2012 for his work.

Yamanaka was able to take a human skin cell and apply viral vectors and transform it into a pluripotent cell that could be used to create any kind of tissue of the donor. This was a breakthrough in that duplicate cells could be made without the moral quandary of using embryonic tissue.

 

 

Channelchek (PH):

Your foundation supports study in a field that barely existed at the turn of the millennium. Aside from your well-publicized case, as an outsider, how have you been able to build it into such a deep network and strong force?

 

Bernie Siegel:

During the 30 days, I was held up to intense media scrutiny and held under a microscope with the cloning case showed me what I was capable of and caused me to think I could do even more with my life than I was. I’m still a member of the Florida Bar, but I gave up the actual practice of law to do this full time, it became a calling if you will.

When I built the organization, I built it first by recruiting some of the top scientists. Their names and their reputations allowed me to kick the doors more open to the biotechnology industry, major players in Washington, and the medical philanthropy world.

There is a method to building a movement.

 

Channelchek (PH):

Who Benefits Most from Going to the Stem Cell Summit?

 

Bernie Siegel: Who doesn’t? This is the key; a patient with a family member suffering from ALS never encounters a scientist that may be working in a lab with human cells. With the Summit, a patient can interact with the scientist. The scientist feels motivated, the patient becomes more of an advocate, the patient goes to the government and says “we need more funding for this.” The patient or family member meets with groups specific to a condition important to them that can benefit from this research.  Clinicians can go and see the emerging promise in the field to understand what medical solutions are coming down the road that will change their medical practice. An insurance company will understand they will be reimbursing a new medical treatment. An investor or philanthropist is going to find out how these great medical institutions are translating their research into business opportunities that will become the future of medicine and how they all work together.

Understand, a tissue engineer might not be aware of everything in microscopy; someone who is working in microscopy may not have gathered what is going on in machine learning or AI. All of the enabling technologies in the field are at the Summit this creates energy in the field and interest from government leaders. The FDA and representatives from the NIH are there. We also have the international side with a whole segment of the Japanese Society for Regenerative Medicine the largest society in the world.  This isn’t just a scientific meeting; investors and media are also there to see what clinical implications are why the public should be excited. This is of interest to everyone, I know this because I see it every day.

 

More Information

The World Stem Cell Summit is a project of the nonprofit Regenerative Medicine Foundation (RMF). They’ve built the strongest, most comprehensive global network for regenerative medicine in the U.S. This annual event unites the world’s leading researchers, medical centers, universities, labs, businesses, investors, funders, policymakers, experts in law, regulation and ethics, medical philanthropies, and patient organizations all meet next week.

Information on presenting companies can be found here.

The World Stem Cell Summit website can be found at this link.

For a copy of the Noble Capital Markets press release, go here.

 

 

QuickChek – June 11, 2021

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Capstone Green Energy Reports Fourth Quarter & Full-Year Fiscal 2021 Financial Results

Capstone Green Energy announced its fourth-quarter and full-year fiscal 2021 financial results and outlined new goals for the upcoming year

See today’s research report on Capstone from Michael Heim, Senior Research Analyst at Noble Capital Markets

Research, News & Market Data on Capstone Green Energy

Watch recent presentation from Capstone



Sierra Metals Announces Results Of Annual General Meeting Of Shareholders

Sierra Metals announced the voting results from the Company’s Annual General Meeting of Shareholders held on Thursday, June 10, 2021

New – Watch last week’s conversation with Sierra Metals CEO Luis Marchese and Noble Capital Markets Senior Research Analyst Mark Reichman

Research, News & Market Data on Sierra Metals



Garibaldi Consolidates Otter Creek Lode Gold Discovery

Garibaldi Resources announced the addition of key claims expanding the Company’s Otter Creek lode gold prospect to 8,704 total hectares within the Atlin Gold fields

Research, News & Market Data on Garibaldi Resources

Watch recent presentation from NobleCon17



Esports Entertainment Group Makes Strategic Push into Ohio; Testifies in Front of Senate Select Committee on Gaming

Esports Entertainment Group announced that over the past week two executives, CFO Dan Marks and VP of Strategy Jeff Cohen, have been invited to testify in front of the Ohio State Senate Select Committee on Gaming as advocates for the esports industry

Research, News & Market Data on Esports Entertainment Group

Watch recent presentation from EEG

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Release – Esports Entertainment Group Makes Strategic Push into Ohio

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Esports Entertainment Group Makes Strategic Push into Ohio; Testifies in Front of Senate Select Committee on Gaming

 

Newark, New Jersey–(Newsfile Corp. – June 11, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”) is proud to announce that over the past week two executives, CFO Dan Marks and VP of Strategy Jeff Cohen, have been invited to testify in front of the Ohio State Senate Select Committee on Gaming as advocates for the esports industry. As a result of their testimony, as well as testimony from Jonah Blake of Game Fund Partners, and the Committee’s recognition of esports as a major area of interest for the state of Ohio, the current proposed Senate Sports Wagering Sub Bill 176 includes esports as an eligible sport to be wagered upon.

“Ohio’s recognition of esports and its inclusion in Sub Bill 176 is a major step forward for both EEG as well as the entire esports industry,” commented Grant Johnson, CEO of Esports Entertainment Group. “This, in addition to the recent announcement of our partnership with the Cleveland Cavaliers, solidifies Ohio as a strategic gaming jurisdiction for EEG,” continued Johnson. “We intend to build several Helix Centers as well as bring our Vie esports betting platform and look to form additional partnerships with major sports organizations in the state. We look forward to working with the Ohio legislature and our strategic partners to create a robust gaming ecosystem in the state. We believe Ohio can form a model for innovation and investment in esports that other states will follow.”

See below for links to the testimonies:

www.ohiochannel.org/video/ohio-senate-select-committee-on-gaming-6-2-2021

www.ohiochannel.org/video/ohio-senate-select-committee-on-gaming-6-10-2021

*EEG testimony starts 8 mins in*

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

 

Disclosure:
RedChip Companies, Inc. research reports, company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RedChip reports, company profiles, or other investor relations materials and presentations are subject to change. RedChip Companies and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RedChip Companies, Inc., our specialists, advisors, and partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of the information provided, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or incompleteness of this information).

Stock market investing is inherently risky. RedChip Companies is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.

We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission (“SEC”) at www.sec.gov.

Esports Entertainment Group, Inc. (GMBL) is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a $4,000 monthly cash fee, beginning in June 2018, and 225,000 shares of Rule 144 stock for RedChip investor awareness services.

Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. RedChip investor awareness services include the preparation of a research profile(s), multimedia marketing, and other awareness services.

Release – Garibaldi Consolidates Otter Creek Lode Gold Discovery

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Garibaldi Consolidates Otter Creek Lode Gold Discovery

 

Vancouver, British Columbia, June 11, 2021 – Garibaldi Resources (TSXV: GGIFF) (the “Company” or “Garibaldi”) is pleased to announce the addition of key claims expanding the Company’s Otter Creek lode gold prospect to 8,704 total hectares within the Atlin Gold fields. The Otter Creek claims are located 12 kms east of Atlin in northwest British Columbia. Atlin has been a rich placer gold mining district since the Klondike gold rush from the mid 1800’s to the present day, rivalling Barkerville during the Cariboo gold rush. Until recently, the source of Atlin’s coarse gold placers had remained elusive.

The first announcement of a new lode gold discovery on Otter Creek was made by British Columbia Geological Survey (BCGS) geologists in a 2017 published paper titled “A new lode gold discovery at Otter Creek: another source for the Atlin placers.” Garibaldi had previously acquired 100% ownership of the hard rock mineral rights on the discovery section of Otter Creek. Placer operations enabled geologists to sample and map the bedrock in excavated pits before backfilling, allowing access to the BCGS geologists who published the lode gold discovery.

The Otter Creek lode gold discovery provides strong evidence that Atlin’s rich coarse crystalline gold placers are sourced from proximal high-grade gold veins rather than previously assumed eroded distal listwanite deposits. Garibaldi’s new acquisition in the Atlin Gold fields consolidates a core land package that occupies nearly the entire 10 km length of Otter Creek. Significantly, Garibaldi’s geology team considers the expanded claims package covering the Otter Creek placers as an important exploration priority. With excellent road access and infrastructure, the discovery of bonafide in-situ bedrock-hosted gold, is a remarkable find with enormous potential.


Figure 1 – Sample of in-situ bonanza bedrock gold – quartz vein in phyllite.

Otter Creek Project Highlights

  • In 2017, the British Columbia Geological Survey published a paper titled “A new lode gold discovery at  Otter Creek: another source for the Atlin placers.” (BCGS paper 2017-1pg.179-193) by Mihalynuk, M.G. Zagorevski, A., Devine F.A.M., and Humphrey, E. 
  • Placer mining uncovered significant mineralization in bedrock, resulting in multiple samples of in-situ bedrock gold along Otter Creek. Bonanza grade gold is hosted in quartz veins emplaced along structures in phyllite bedrock. The coarse gold in bedrock supports a new placer source for the Atlin gold Fields.
  • A large north-south trending fault, with a series of secondary faults extends along Otter Creek providing a key structural setting for lode gold deposits.  Rich placer deposits have been mined along these creeks and faults since the mid 1800’s.
  • Otter Creek and neighboring creeks including Spruce, Birch, Pine, Ruby and Wright creeks have produced some of the largest gold nuggets discovered in British Columbia, weighing from 24 to 83 oz of gold.
  • Garibaldi’s Otter Creek database includes 2282 MMI samples, a compilation of 1,884 historic soil samples, 15 IP lines, 143 km of walking mag, 263 line km airborne magnetic and electromagnetic (DIGHEM) surveys.
  • Drill target development will utilize the historical database, bedrock exposure of gold-bearing quartz veins, geophysical data, and analysis of a 728 sample SGH survey, used successfully in Red Lake Ontario.  

Steve Regoci, Garibaldi CEO, stated: Similar to the Eskay Camp, Atlin has a long history of gold mining back to the 1860’s Cariboo and klondike gold rushes. Our strategy to acquire claim groups centered in the heart of mineral rich districts in B.C. during the last downturn has been very successful. The Eskay claim group is exceeding our highest expectations, while our other projects as well as the new expanded Otter Creek have exceptional potential.”

Jeremy Hanson, Garibaldi VP Ex, stated “Otter Creek emerges as another high priority gold project in Atlin, joining the Grizzly in NW BC, Red Lion in the Quesnel Trough and ToraTora within the Spences Bridge Gold Belt (SBGB). Each of these projects are in well-endowed mineral districts with strong potential for discoveries. The company’s focus remains E&L and the Eskay claim group, however the expansion of the Atlin discovery is exciting news, reminding shareholders about our other great projects, which we’ll be updating as they’re advanced.”

Qualified Person

Jeremy Hanson, P.Geo., VP Exploration Canada for the Company and a qualified person as defined by NI- 43-101, has supervised the preparation of and reviewed and approved of the disclosure of information in this news release.

About Garibaldi

Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in British Columbia and Mexico.

We seek safe harbor.

GARIBALDI RESOURCES CORP.

Per: “Steve Regoci”
Steve Regoci, President

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.

Debate Concerning Biogens Alzheimers Drug Approval

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Image Credit: Rik Williams (Flickr)


Biogen’s Alzheimer’s Drug Approval from a Pharmacists Perspective

 

The Food and Drug Administration set off a firestorm of debate when it approved a new drug, aducanumab, for Alzheimer’s disease via an accelerated approval pathway. This decision ignored the recommendation of the FDA’s external advisory panel to reject the drug.

The FDA grants accelerated approvals for drugs to treat serious illnesses for which there are no known, or at least very few, treatments. The type of data used to support accelerated approvals is very different from the typical benchmark safety and efficacy data required for approval. As a pharmacist and researcher, I have documented several reasons drug research conducted in a laboratory environment differs substantially from what is ultimately seen in people. The challenge lies in striking a balance between taking the time to ensure a treatment works and meeting urgent patient need.

 

Using a Different Standard

The FDA created an accelerated approval pathway for drugs treating serious diseases for which many patients feel a desperate need for more options. This has included treatment for advanced-stage cancer, multiple sclerosis and HIV, among others.

When considering accelerated approval, the agency examines a drug’s efficacy using what’s called a “surrogate endpoint.” While most drug trials measure success based on clinical endpoints that determine whether a drug helps people feel better or live longer, like reducing heart attacks or strokes, surrogate endpoints measure biomarkers that suggest potential clinical benefit. These surrogate endpoints are viable substitutes for hard clinical endpoints because they’re proven to be directly linked to the desired clinical outcomes. For example, the clinical endpoints of reducing heart attacks and strokes could use reduced blood pressure and low-density lipoprotein (LDL) cholesterol as surrogate endpoints.

While many hypotheses on the correct surrogate endpoints to treat certain diseases have panned out, several others have been shown to be off-base or only partially correct. A great example is homocysteine, an amino acid once thought to be a driver of cardiovascular diseases which since has been shown to be a marker of disease only. People with elevated levels of homocysteine are more likely to have cardiovascular disease, but lowering levels doesn’t make heart attacks and strokes less likely to occur. All those who rushed the science and purchased dietary supplements to lower their homocysteine were flushing their money down the drain.

 

Testing the Amyloid Beta Hypothesis

Though the effect of aducanumab, the Alzheimer’s drug developed by biotechnology company Biogen, on hard clinical endpoints are lackluster, it has been shown to reduce the formation of amyloid beta plaques in patients with early-stage Alzheimer’s. Amyloid beta denotes proteins that clump together to form plaques commonly seen in patients with Alzheimer’s. It’s been hypothesized that these plaques drive the signs and symptoms of Alzheimer’s. Animal models have shown that interfering with amyloid beta plaque formation could lead to improvements in functioning.

Amyloid beta plaques are hypothesized to trigger the neurodegenerative processes of Alzheimer’s disease. The Alzheimer’s Disease Education and Referral (ADEAR) Center, NIH/Wikimedia Commons

The data linking amyloid beta plaques to hard clinical endpoints is not a slam-dunk. Unlike hypertension and elevated LDL cholesterol, which has been proved to be linked to cardiovascular events, amyloid beta has not seen such definitive results.

Two large clinical trials assessing aducanumab have been conducted, one that started with a higher dose and one that started with a lower dose that was later increased. Both trials were stopped early, and the lower-dose trial found no benefits. The higher-dose trial found modest benefits in maintaining mental functioning, but the trial did not have enough patients to show that these benefits were due to the drug and not to chance. After the fact, the researchers combined data from patients who received high-dose aducanumab in both trials and found an improvement in mental functioning. However, many experts running clinical trials bristle at combining trial outcomes like this: These after-the-fact analyses have been shown in some circumstances to not pan out in the future.

Other initially promising experimental drugs targeting amyloid beta for Alzheimer’s also fell short in reducing hard clinical endpoints in their clinical trials. After one of these drugs, solanezumab, failed to achieve study aims, additional data analysis post-trial suggested it might be effective in a select population with mild Alzheimer’s. Researchers conducted an additional large clinical trial focusing on that subpopulation, but again failed to demonstrate significant benefits. No one knows if aducanumab will find significant benefits when the new clinical trial completes or if it will fail as solanezumab did.

If amyloid beta turns out to be simply a marker and not a cause of Alzheimer’s, it will be a costly mistake: Aducanumab is estimated to cost over US$56,000 a year.

 

Was the FDA’s Ruling a Mistake?

Over 6 million Americans now have Alzheimer’s disease, and deaths from Alzheimer’s have risen over 145% over the past 20 years. Alzheimer’s disease not only robs individuals of their autonomy but also places a huge burden on family members and the U.S. economy: $355 billion is spent annually on caring for people with Alzheimer’s. Current FDA-approved treatments are only modestly effective at controlling disease symptoms, and none target a possible underlying cause.

The accelerated approval pathway allows patients with early-stage Alzheimer’s to access aducanumab while a larger and more definitive clinical trial is conducted. Biogen says it hopes to have the clinical trial completed by 2030. If the study does not find reductions in the hard clinical endpoints, the drug will be withdrawn.

If aducanumab is ultimately found to be effective, many patients with early-stage Alzheimer’s will reap the benefits in reductions in hospitalizations, doctor visits, nursing home costs and societal burden.

If aducanumab is found to be ineffective, however, Medicare, insurers and patients will have spent tens of millions of dollars on a drug that not only did not work but also exposed patients to adverse events, including the risk of bleeding in the brain.

 

Should Physicians Prescribe Aducanumab, and Should Insurers Pay for It?

For patients in the earlier stages of Alzheimer’s disease, there is reason to try aducanumab based on the current clinical trial data and the lack of alternatives. But in advanced disease, it is unlikely that aducanumab or any drug targeting amyloid beta will provide benefits.

In a cost-effectiveness assessment of aducanumab, the Institute for Clinical and Economic Review, an independent organization assessing the value of medical treatments, suggested an annual price range from $8,300 to $23,000. This is a far cry from the $56,000 a year the company is expecting to charge, and that doesn’t account for the thousands of dollars in additional testing required to reduce the risk of brain swelling and bleeding.

The annual cost of the drug will likely greatly exceed the cost savings in other areas like reduced doctor visits and hospitalizations. Until further results are released, such high costs could lead private insurers to not cover or charge higher copays for the drug. Given the average age of those with Alzheimer’s disease, however, most people receiving aducanumab will be eligible for Medicare and will most likely be covered. Whether the drug will actually treat the disease – the biggest issue in question – remains uncertain.

 

Let us all hope that the FDA’s gamble pays off.

This article
was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts.  Written by:
C. Michael White Distinguished Professor and Head of the Department of Pharmacy Practice, University of Connecticut

 

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Release – Sierra Metals Announces Results Of Annual General Meeting Of Shareholders

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Sierra Metals Announces Results Of Annual General Meeting Of Shareholders

 

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or the “Company”) hereby announces the voting results from the Company’s Annual General Meeting of Shareholders held on Thursday, June 10, 2021 (the “Meeting”).

A total of 133,132,611 common shares were voted at the Meeting, being 81.46% of the Company’s issued and outstanding common shares. Shareholders voted in favour of all matters brought before the Meeting, including the re-appointment of PricewaterhouseCoopers LLP as the Company’s auditors for the ensuing year, and the election of management’s nominees to the Company’s board of directors (the “Board”).

Detailed results of the votes on the election of directors are as follows:

Director

Votes For

Votes Withheld

Outcome of
Vote

Jose Vizquerra

78,891,458 (62.64%)

47,048,136 (37.36%)

Approved

J. Alberto Arias

58,459,843 (46.42%)

67,479,751 (53.58%)

Approved

Ricardo Arrarte

72,338,338 (57.44%)

53,601,256 (42.56%)

Approved

Douglas Cater

79,034,768 (62.76%)

46,904,826 (37.24%)

Approved

Steven Dean

77,094,708 (61.22%)

48,844,886 (38.78%)

Approved

Luis Marchese

72,978,835 (57.95%)

52,960,759 (42.05%)

Approved

Dionisio Romero

70,474,604 (55.96%)

55,464,990 (44.04%)

Approved

Koko Yamamoto

71,905,376 (57.10%)

54,034,218 (42.90%)

Approved

One of the eight directors elected at the Meeting, J. Alberto Arias, received a greater number of votes “withheld” from his election as a director than votes “for” his election. The results of this outcome have been defined within the Majority Voting Policy (as disclosed on the Company website – https://www.sierrametals.com/about-sierra/corporate-governance/default.aspx). The Board’s decision will be disclosed by press release.

About Sierra Metals

Sierra Metals is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s common shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com.

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Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws related to the Company (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the Company’s operations, including anticipated developments in the Company’s operations in future periods, the Company’s planned exploration activities, the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future. Statements concerning mineral reserve and resource estimates may also be considered to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if and when the properties are developed or further developed. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in our Annual Information Form dated March 30, 2021 in respect of the year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above is not exhaustive of the factors that may affect any of the Company’s forward-looking information. Forward looking information includes statements about the future and are inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Mike McAllister
V.P., Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
Email: info@sierrametals.com

Ed Guimaraes
CFO
Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO
Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

Comtech (CMTL) – Positives Outweigh the Negatives

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Friday, June 11, 2021

Comtech (CMTL)
Positives Outweigh the Negatives

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

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

    3Q21 Results. Comtech reported revenue of $139.4 million, up 3.2% from the $135.1 million reported last year. Adjusted EBITDA came in at $17.7 million compared to $12.5 million last year. EPS was $0.03 and adjusted EPS was $0.26 compared to a loss of $0.16 and EPS of $0.05, respectively, last year. We had forecast revenue of $141 million, adjusted EBITDA of $10.6 million, EPS of $0.03, and adjusted EPS of $0.14.

    Multiple Potential Business Drivers.  Comtech has a number of large opportunities ahead, including a multi-year agreement for next gen satellite earth station equipment that could be worth hundreds of millions, an updated version of BFT, also potentially worth in the hundreds of millions, multiple NG911 statewide contracts, and additional troposcatter opportunities. And, at the most basic, just a …



This 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. 

Capstone Green Energy (CGRN) – Results In Line – Shift In Company Focus Is Exciting

Posted on by Admin

Friday, June 11, 2021

Capstone Green Energy (CGRN)
Results In Line – Shift In Company Focus Is Exciting

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

    Results were generally in line with expectations. Capstone reported revenues of $17.9 million for the quarter (up 16% sequentially and 54% yoy) versus our $18.0 million estimate. Adjusted EBITDA was $(1.9) million versus our estimate of $(1.1) million. The company’s cash position rose to $49.5 million from $15.1 million at the end of last year. Bookings rose to $12.7 million topping off a steady quarter-by-quarter climb over the last four quarters.

    Capstone is repositioning to be a broader company.  The change started with a change in the company’s name on Earth Day to Capstone Green Energy Corporation from Capstone Turbine. Management took a further step today by announcing an expansion in the number of its operating divisions. New operating divisions are Energy As A Service, Energy Conversion, Energy Storage Solutions, and Hydrogen & …



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.