electroCore Provides Business Update and Select Second Quarter 2021 Financial Guidance

Posted on July 13, 2021 by Admin

electroCore Provides Business Update and Select Second Quarter 2021 Financial Guidance

July 13, 2021 at 8:00 AM EDT

Second-Quarter 2021 revenue expected to be approximately $1.3 million
Net cash used to fund operations in the second quarter 2021 of approximately $3.2 million
Follow on offering subsequent to June 30, 2021 added $18.8 million to cash balance

ROCKAWAY, NJ, July 13, 2021 (GLOBE NEWSWIRE) —
electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today provided an operating and business update as well as select unaudited preliminary financial guidance for the second quarter of 2021.

“We are pleased to announce preliminary second quarter results, which were in line with our expectations,” stated Dan Goldberger, Chief Executive Officer of electroCore. “Revenue for the quarter ended
June 30, 2021 is expected to be approximately
$1.3 million. Our headache markets in the US and
UK continue to emerge from the pandemic and we look forward to accelerating revenue in the future.”

Operational:
Government Channels: During the second quarter of 2021, the company expects to recognized revenue of approximately
$779,000 pursuant to the
Department of Veterans Affairs (“VA”) and
Department of Defense (“DoD”) originating prescriptions, compared to
$679,000 during the first quarter of 2021 and
$415,000 second quarter of 2020. 85
VA and
DoD military treatment facilities have purchased gammaCore products through
June 30, 2021 as compared to 79 through the first quarter 2021 and 67 through the second quarter of 2020.

Outside of the U.S.: During the second quarter of 2021, electroCore expects to recognize revenue of approximately
$369,000 outside of
the United States through direct channels, as compared to
$335,000 during the first quarter of 2021 and
$247,000 during the second quarter of 2020. These figures do not include new global stocking distributors which contributed revenues from
Canada and
Western Europe during the second quarter of 2021.

The company continues to expand its distributor relationships internationally. In
April 2021, the company announced that
East Agency will serve as the exclusive distributor of the gammaCore Sapphire™ non-invasive vagus nerve stimulator (“nVNS”) in
Qatar. In June, the Company announced a distribution agreement with
Kromax International Corporation to serve as the exclusive distributor of gammaCore Sapphire™ (nVNS) in
Taiwan and
China.

Commercial: The company continues to make targeted investments in its Commercial channel. In
January 2021, CMS published its Level II Healthcare Common Procedure Coding System, commonly known as HCPCS, including a unique code “K1020” for “Non-invasive vagus nerve stimulator,” which went into effect on
April 1, 2021. During the second quarter, the company received a favorable coverage determination from a regional payor and continues to work on obtaining additional positive medical benefit coverage decisions.

Research and Development: There were several important research and development advancements related to gammaCore during the second quarter of 2021.

In
April 2021, the company announced the publication of a paper, entitled, “Cluster headache pathophysiology — insights from current and emerging treatments,” by Drs. Diana Wei and Peter Goadsby in Nature Reviews: Neurology. The paper reviews data on existing and emerging treatments for the acute and preventive treatment of cluster headache. Among the emerging treatments, electroCore’s gammaCore is identified as the only therapy that has been shown to be effective in clinical trials for both the acute treatment of episodic cluster headache as well as the preventive treatment of cluster headache.

In
May 2021, the
U.S. Department of Veterans Affairs announced an investigator-initiated study of the use of gammaCore Sapphire^TM (nVNS) for the treatment of post-traumatic headache (“PTH”). PTH accounts for approximately 4% of all symptomatic headache disorders and is one of the most common consequences of mild traumatic brain injury (mTBI), also known as concussion.

In
June 2021, the company announced publication of a peer-reviewed paper, entitled “Non-Invasive Vagus Nerve Stimulation Improves Clinical and Molecular Biomarkers of Parkinson’s Disease in Patients with Freezing of Gait” in the journal NPJ Parkinson’s Disease. The paper reports the results of a randomized, double-blind, sham-controlled crossover trial conducted at the
Institute of Neurosciences in
Kolkata, India in collaboration with the Faculty of Medical Sciences at
Newcastle University in
England using gammaCore Sapphire^TM. The study provides preliminary evidence supporting the safety and efficacy of nVNS in treating motor and non-motor symptoms of Parkinson’s Disease. Patients were reportedly satisfied with the treatment and the majority were able to self-administer nVNS.

On
June 10, 2021 the company announced the publication of a peer-reviewed paper entitled “Effects of Transcutaneous Vagal Nerve Stimulation (tVNS/nVNS) on Cognitive Performance under Sleep Deprivation Stress,” in the journal Communications Biology, a Nature publication. The paper reports the ability of gammaCore to reduce fatigue and increase performance in a randomized, double-blind, sham-controlled trial conducted at
Wright-Patterson Air Force Base using gammaCore and sponsored by the
United States Air Force Research Laboratories (USAFRL).

Financial Guidance: electroCore today announced the following preliminary unaudited financial guidance for the second quarter of 2021:

Second Quarter Revenue: electroCore anticipates that second quarter 2021 revenue will be approximately
$1.3 million. This represents a 5% increase over first quarter 2021 revenue of
$1.2 million and 69% growth over second quarter 2020 revenue of
$753,000.

June 30, 2021 Cash: The company ended the second quarter of 2021 with approximately
$23.7 million of cash, cash equivalents and marketable securities, compared to
$25.5 million as of the end of the first quarter 2021. During the second quarter of 2021, the company received approximately
$1.4 million in non-dilutive cash from the sale of
New Jersey net operating loss tax benefits. The
$1.4 million of cash proceeds were offset by net cash used of approximately
$3.2 million to fund operations during the second quarter of 2021. The cash balance at
June 30, 2021 excludes approximately
$18.8 million raised in the recent public offering (after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company) which closed subsequent to the end of the quarter.

The company intends to provide a detailed operational and financial update during its second quarter 2021 earnings call in
August 2021.

Mr. Goldberger commented further, “We continue to be enthusiastic about the prospects of the business. We have a strong balance sheet which will support our continued efforts to educate and improve physician and patient awareness, which we believe will ultimately lead to the successful adoption of gammaCore globally.”

About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment of multiple conditions in neurology. The company’s current indications are the preventive treatment of cluster headache and migraine and the acute treatment of migraine and episodic cluster headache.
For more information, visit www.electrocore.com.

About gammaCore^TM
gammaCore^TM (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore can be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients.

gammaCore (nVNS) is FDA cleared in
the United States for adjunctive use for the preventive treatment of cluster headache in adult patients, the acute treatment of pain associated with episodic cluster headache in adult patients, and the acute and preventive treatment of migraine in adolescent (ages 12 and older) and adult patients. gammaCore is CE-marked in the
European Union for the acute and/or prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal Autonomic Cephalalgias and Hemicrania Continua) and Medication Overuse Headache in adults.

gammaCore is contraindicated for patients if they:

Have an active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device
Have a metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck
Are using another device at the same time (e.g., TENS Unit, muscle stimulator) or any portable electronic device (e.g., mobile phone)

Safety and efficacy of gammaCore have not been evaluated in the following patients:

Patients diagnosed with narrowing of the arteries (carotid atherosclerosis)
Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy)
Pediatric patients (less than 12 years)
Pregnant women
Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia

Please refer to the gammaCore Instructions for Use for all of the important warnings and precautions before using or prescribing this product.

The
U.S. FDA has cleared the gammaCore Sapphire CV (nVNS) device under an emergency use authorization for acute use at home or in a healthcare setting to treat adult patients with known or suspected COVID-19 who are experiencing an exacerbation of asthma-related dyspnea and reduced airflow, and for whom approved pharmacologic therapies are not tolerated or provide insufficient symptom relief as assessed by their healthcare provider, using noninvasive vagus nerve stimulation (nVNS) on either side of the patient’s neck.
gammaCore Sapphire CV has been authorized only for the duration of the statement that circumstances exist that warrant authorization of the emergency use of medical devices under section 564(b)(1) of the Act, 21 U.S.C. § 360bbbb-3(b)(1), until the authorization is terminated or revoked.

More information can be found at:
Letter of authorization: https://www.fda.gov/media/139967/download
Fact sheet for healthcare workers: https://www.fda.gov/media/139968/download
Patient information sheet: https://www.fda.gov/media/139969/download
Instructions for use of gammaCore: https://www.fda.gov/media/139970/download

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore’s expectations for revenue and cash used in operations during the second quarter of 2021, its expectations for future performance, as well as electroCore’s business prospects and clinical and product development plans for 2021 and beyond, its pipeline or potential markets for its technologies, additional indications for gammaCore, the timing, outcome and impact of regulatory, clinical and commercial developments (including human trials for the study of headache, PTH, mTBI, Parkinson’s diseases and sleep deprivation stress and the business, operating or financial impact of such studies), further international expansion, and statements about anticipated distribution arrangements, government and payor funding arrangements (including those relating to
Canada,
Western Europe,
Qatar,
Taiwan, and
China) and other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “believes,” “intends,” other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the
SEC available at www.sec.gov.

Investors:
Rich CockrellCG Capital
404-736-3838
ecor@cg.capital

or

Media Contact:
Jackie Dorsky
electroCore
908-313-6331
jackie.dorsky@electrocore.com

Christies Art and Tech Summit Will Bring Added Attention to NFTs

Posted on July 13, 2021 by Admin



	Image Credit: ARS Electronica (Flickr)

The Artworld is Embracing Blockchain Technology

While valuations of cryptocurrencies have cooled a bit in recent weeks, NFT art, another blockchain stored intangible, may gain heightened interest and momentum this Thursday, July 15. On Thursday, Christie’s auction house will hold their Art+Tech Summit. If you recall, it was in March 11 of this year that an NFT by Beeple (Mike Winkelmann) sold for $69 million. This drew attention to NFTs in both art and sports memorabilia as the artist had never before sold a print for more than $100. Yet, in the new NFT format, the piece became the third highest-priced artwork ever sold by a living artist. The Christie’s Art and Tech summit will cover and perhaps even help define non-fungible tokens, which are a hot commodity for both the business and art world this year, and an example of how blockchain adds value.

What’s NFT Art?

NFT, an acronym for or ‘non-fungible token, is an electronic digital certificate stored using blockchain technology. It provides ownership rights as a digital asset, typically something collectible determined to retain rarity. The NFT format and certificate establish and demonstrate ownership rights of a digital asset, not unlike cryptocurrency. It is often hard to demonstrate ownership rights on digital works as given how easily digital replication can be made.

NFTs are described as non-fungible since each is unique. The opposite of non-fungible is fungible; here, the item is replaceable; examples of fungible include, a bar of gold, dollar bill, gallon of water, or even a Dogecoin.

An NFT is minted (generated) using computer code and stored on a blockchain system, the process is called a “smart contract.” This NFT smart contract includes information fields including its unique identifier (TokenID); the blockchain wallet address of the owner; and an identifier informing where the digital collectible associated with the NFT can be found. Since blockchain transactions are fully transparent, anyone can view this information, including the blockchain address of the current owner and the blockchain address of each owner since the minting of the NFT.

An NFT can be bought and sold like other property. The transfer of ownership occurs by transferring the NFT through a blockchain transaction to the new owner. When a buyer purchases an NFT, they must have a digital wallet to receive and access the NFT.

Taal (TAALF) Virtual Road Show Series – Thursday, July 15 @ 1pm EDT

Join Taal Distributed Information Technologies President Chris Naprawa for this exclusive corporate presentation, followed by a Q & A session moderated by Joe Gomes, Noble’s senior research analyst, featuring questions taken from the audience. Registration is free and open to all investors, at any level.

About the Summit

The Christies Art+Tech Summit takes place both virtually, and on location at Christie’s Rockefeller Center galleries in New York. Coverage of the event is expected to bring heightened awareness of the relatively recent collection methodologies and technologies, and could even attract a younger audience than found at other Christie’s conferences and summits. It will feature a mix of lectures, debates, and panel discussions from curators, collectors, art directors, and even a bitcoin billionaire.

Take-Away

Blockchain stored NFT art, which may include music, videos, and drawings, is becoming increasingly mainstream. This week could bring much greater attention since this is the first Christie’s NFT related summit since they successfully auctioned the record-breaking Beeple work. Blockchain technology as an investment (company stock) need not trade in tandem with cryptocurrency values as there are many other uses beyond crypto, both fungible and non-fungible.

Conversation

Paul Hoffman

Suggested Reading:

Decentralized Apps (DAPPS) Using Blockchain

Repurposing Powerplants for Cryptomining

Making Sense of Non-Fungible Tokens

Small-Cap Names in a Big Crypto Market

Sources:

https://www.christies.com/features/NFT-101-Collection-Guide-to-NFT-11654-7.aspx?PID=mslp_related_features1

https://www.artsy.net/article/artsy-editorial-attract-young-collectors-auction-houses-tap-rock-stars-sneakerheads-spice-girl

https://www.christies.com/features/Monumental-collage-by-Beeple-is-first-purely-digital-artwork-NFT-to-come-to-auction-11510-7.aspx

https://www.barrons.com/articles/beeples-nft-fetches-record-69-million-at-christies-01615502920?mod=article_inline

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CPI Could be Cause for Investors to Worry

Posted on July 13, 2021 by Admin



	Image Credit: Thomas Altfather Good (Flickr)

Inflation Confirms it is Running Well Ahead of Interest Rates

Inflation, as reported today (July 13), is running well ahead of interest rates available in the Treasury bond market. The Bureau of Labor Statistics shows that in June, the Consumer Price Index for All Urban Consumers rose 0.9 percent on a seasonally adjusted basis. This adds up to a 5.4 percent increase over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.9 percent in June (SA); up 4.5 percent over the year (NSA). The ten-year U.S. Treasury Note traded to yield 1.38% end-of-day yesterday.

June’s consumer-price index growth at 5.4% is the fastest pace of annual inflation in nearly 13 years. The growth is 0.9% on a month-over-month basis, the largest jump since 2008 and higher than expected.

If price increases don’t slow, the Federal Reserve may have no choice but to back off of its promise to hold rates down. An increase in interest rates could halt the stock market’s bullish sentiment, throw cold water on real estate price growth, and cause the proposed multi-trillion-dollar infrastructure plan to cost taxpayers substantially more. It is also worth recognizing that the historically easy money and low interest rates have been a driver of dealmaking in private equity and venture capital, this could slow.

The official position taken by the Fed, which has been enough to keep the bond market stable is, the inflation numbers are transitory, primarily the result of shortages that will not last in the post-Covid economy.

The July 13 report (June’s numbers) demonstrates what could be temporary. Used car prices and transportation services made up 76% of the increase in core CPI (ex-food and energy). Buying a car and traveling, it can be argued, are sudden shocks that will not last.

July CPI will be released on August 11. Register at no cost for Channelchek’s insights into markets, industries, companies, and the economy to stay on top of the no-nonsense information we provide.

Suggested Reading:

Inflations Impact on Stocks

Add this to the List of Inflation Drivers

Sources:

https://www.bls.gov/news.release/cpi.nr0.htm

https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

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Suborbital Flight Explained

Posted on July 13, 2021 by Admin



	Image Credit: Thierry Baccon

What’s a Suborbital Flight? An Aerospace Engineer Explains

“Suborbital” is a term you’ll be hearing a lot after Sir Richard Branson made his trip aboard Virgin Galactic’s VSS Unity winged spaceship and Jeff Bezos flies aboard Blue Origin’s New Shepard vehicle to touch the boundary of space and experience a few minutes of weightlessness.

But what exactly is “suborbital”? Simply put, it means that while these vehicles will cross the ill-defined boundary of space, they will not be going fast enough to stay in space once they get there.

If a spacecraft – or anything else, for that matter – reaches a speed of 17,500 mph (28,000 km/h) or more, instead of falling back to the ground, it will continuously fall around the Earth. That continuous falling is what it means to be in orbit and is how satellites and the Moon stay above Earth.

Anything that launches to space but does not have sufficient horizontal velocity to stay in space – like these rockets – comes back to Earth and therefore flies a suborbital trajectory.

Why These Suborbital Flights
Matter

Although the two spacecraft launched in July 2021 will not reach orbit, the accomplishment of reaching space in private spacecraft is a major milestone in the history of humanity. Those aboard these and all future private-sector, suborbital flights will for a few minutes be in space, experience a few minutes of exhilarating weightlessness and absolutely earn their astronaut wings.

Suborbital flights (paths A and B) reach space, but because they aren’t moving fast enough over the Earth, gravity will pull the object back to the surface. Brian
Brondel, CC BY-SA

A Well-Thrown Baseball

Conceptually, the Branson trip and Bezos July 20 flight are not terribly different from a baseball thrown into the air.

The faster you can throw the baseball upward, the higher it will go and the longer it will stay in the air. If you throw the ball with a bit of sideways velocity as well, it will go farther down-range.

Imagine throwing your baseball in an open field. As the ball rises, it slows down, as the kinetic energy inherent in its velocity is exchanged for potential energy in the form of increased altitude. Eventually, the ball will reach its maximum height and then fall back to the ground.

Now imagine that you could throw the baseball fast enough to reach a height of perhaps 60 miles (97 km). Presto! The baseball has reached space. But when the ball reaches its maximum height, it will have zero vertical velocity and start to fall back to Earth.

The flight may take several minutes, and during most of that time the ball would experience near weightlessness – as will the newly minted astronauts aboard these spacecraft. Just like the hypothetical baseball, the astronauts will reach space but won’t enter orbit, so their flights will be suborbital.

This article
was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic
experts. It represents the research-based findings of John M. Horack Neil Armstrong Chair and Professor of
Mechanical and Aerospace Engineering, The Ohio State University

Suggested Reading:

Capitalizing on the New Space Race

Space as a Lucrative Investment Space

What Companies are Involved in Spaceflight?

CPI Could be Cause for Investors to Worry

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Ad Tech – Back in the Saddle and Riding High – Noble Capital Markets Media Sector Review – July 2021

Posted on July 13, 2021 by Admin

Ad Tech – Back in the Saddle and Riding High

Noble Capital Markets Media Sector Review – July 2021

Last quarter we noted that advertising technology (Ad Tech) stocks were the strongest performing sector over the previous 12-month period. The average stock in the Ad Tech sector at the end of the first quarter of 2021 was up 339% over the prior year.

Part of this reflected the starting point: at the end of March 2020, concerns about Covid-19 and its impact on advertising had caused the average stock in the sector to decline by 27%. The other part of the story is how well Ad Tech stocks recovered from the initial advertising downturn: while 2Q 2020 revenues declined, they rebounded strongly in 3Q and 4Q of 2020, and that strength has continued into the first half of 2021.

The strong recovery in operating results combined with the strong stock price recovery has led to a rebound in the Ad Tech IPO market. The first half of 2021 saw Pubmatic (PUBM), Viant (DSP), AppLovin (APP), DoubleVerify (DV) and Integral Ad Science (IAS) go public, while Outbrain and Teads filed to go public. Meanwhile, IronSource, Taboola and Innovid all agreed to go public via a reverse merger with a SPAC (Special Purpose Acquisition Company).

It hasn’t always been this way. In fact, the first group of Ad Tech companies to go public in the 2010-2016 time-frame did not perform well on average. As shown in the chart on the next page, these Ad Tech “1.0” companies saw an average decline of 4% one-year after their IPO. One reason some of these companies didn’t do well is that they missed expectations or guidance often within 2-3 quarters after going public. Another reason the group didn’t perform well is that 6 of the 9 Ad Tech 1.0 companies that went public were not profitable on an EBITDA basis, and many struggled to demonstrate a path to profitability.

OUTLOOK – INTERNET AND DIGITAL MEDIA

INTERNET AND DIGITAL MEDIA COMMENTARY

It is interesting to note that the only three Ad Tech companies that remain public today from the 2010-2016 IPO group (The Trade Desk, Criteo, and Magnite, formerly The Rubicon Project) are the three companies that were EBITDA positive at the time they launched their IPO.

Two years ago, we noted that most Ad Tech companies were trading at 1.0x revenue or less, well below the 7.0x average IPO revenue multiple or 4.8x median IPO revenue multiple as shown above. As shown in the chart below, the Ad Tech “2.0” IPOs (those that went public earlier this year) have performed quite well, with the average stock price return up 51% since their offering date. More importantly, Ad Tech valuations are at their highest levels ever. The 2021 Ad Tech IPO group has seen companies go public at 12.6x trailing twelve-month revenue. With these types of valuations, we expect to see more Ad Tech companies file to go public in the second half of 2021.

What accounts for the disparity between the Ad Tech “1.0” returns vs. the “2.0” returns? First of all the 2021 vintage of Ad Tech IPOs reflects a more mature set of companies than the Ad Tech 1.0 companies, with average LTM revenue 4.0x greater and median LTM revenue 2x greater than their Ad Tech 1.0 counterparts. Secondly, the 2021 vintage of Ad Tech companies is profitable. The average EBITDA margin of this year’s IPO group is 19%, versus an average EBITDA margin of 2% for the Ad Tech 1.0 group.

Besides the sector having more mature companies, another factor is how market has evolved from a desktop display advertising market to a mobile or video-centric/connected TV market. With viewership of video content moving from linear TV to on- demand viewing, Ad Tech companies are well positioned to benefit from the migration to IP-delivered content and ads. In March 2021, there were 54.4 million non-pay TV households in the U.S., up from 37.3 million three years ago. eMarketer estimates that by 2024, the number of non-pay TV households will eclipse the number of pay TV households. This should result in a massive advertising opportunity for Ad Tech companies that are well positioned to take advantage of the continued shift to streaming video.

SPACs Get in the Game

The Ad Tech sector has also caught the attention of SPACs. The multiples that SPACs are paying are even higher than the ones that Ad Tech companies have received through traditional IPOs. Of the three announced Ad Tech deals with SPACs, the average LTM revenue multiple is 16.6x and the median revenue multiple is 13.4x. The higher multiple typically reflects the higher revenue growth opportunities for the acquired company. For example, ironSource posted 83% revenue growth in 2020 and is projecting 37% growth in 2021.

After a couple of rough years in the market, during which Ad Tech stocks were shunned by Wall Street and the public companies traded at 1.0x revenues on average, finally it is good to be an Ad Tech company again.

Esports: An Eye On The Next Level

The Noble Esports Index underperformed the general market in the latest quarter, down 13% versus an 8% gain for the general market. While this is certainly a disappointing performance, the Noble Esports Index is still up an impressive 45% for the last 12 months, outperforming the general market’s 39% advance. We believe that the weak Q2 performance reflects a victim of the success in Q1 and previous quarters. Only 3 of 16 stocks in the sector were up in the second quarter, but 9 are up for the year. We would note that there continues to be M&A interest in the space with a large number of transactions: of the 21 gaming deals, there were 4 esports transactions in the latest quarter.

Esports gained attention during the Covid crisis as gaming increased during stay-at-home mandates during the pandemic and as starved networks sought Esports programming in lieu of cancelled traditional sporting events. In many cases the industry struggled given the lack of in-person tournament play. As the economy has now reopened, large in-person events are now being scheduled. We believe that this will gain interest among consumers and advertisers, raising the visibility of this industry. It is important to note that in- person play is still novel and developing. Esports Entertainment’s Helix venues are just now getting back to normal, increasing capacity from as low as 25% during the pandemic. Furthermore, the industry is looking forward toward developing events at traditional movie cinemas. Why would cinemas consider esports tournament play? Large numbers of affluent consumers! While there are logistic issues regarding the technological aspect of this prospect, it is an example of the forward thinking for venue growth in the industry. We believe that expansion in platforms and infrastructure will be a key driver for growth in consumers and advertising support.

Notably, on May 25th, Esports Entertainment Group (GMBL) received the long-awaited approval from New Jersey Division of Gaming Enforcement of its gaming license. While the approval does not distinguish between sports and esports betting, the company entered its application with one of the largest states for gambling in order to become the preeminent platform for esports betting. The company’s Vie gambling software platform will go through regulatory testing labs to determine if the software is compliant and meets regulatory standards. We believe that the company could be up and running as soon as August. We estimate that the impact from the New Jersey license on fiscal 2022 revenues will be somewhat small, possibly $1 million in fiscal 2022, but grow meaningfully from there. Importantly, we believe that the company will pursue additional license opportunities in other States.

Internet & Digital Media M&A Picks Up Considerably in 2Q 2021 vs. 2Q 2020

Not surprisingly, there was a dramatic increase in M&A activity in 2Q 2021 compared to 2Q 2020. Noble tracked 146 deals worth $30.0 billion in the Internet & Digital Media sector in 2Q 201 vs. 100 deals worth $12.9 billion in 2Q 2020. For the second quarter in a row, the most active sector was Digital Content, with 54 transactions, followed by Marketing Technology transactions (38), and Information transactions (17).

From a deal value perspective, Digital Content deals led with $17.8 billion in transaction value, followed by the MarTech with $3.7 billion in deal value, followed by Agency & Analytics with $2.6 in deal value. Within the digital media sector, there were several subsectors that were active. Noble tracked 10 digital content deals worth $9.7 billion during the quarter, the largest of which are shown below, including Appollo Global’s $5.5 billion acquisition of Verizon Media (and its heritage properties Yahoo! and AOL).

While the digital content sector had the largest transaction value for the quarter, the mobile gaming and game developer sector had the largest number of transactions (21) and accounted for $7.8 billion in M&A during the quarter. Notable transactions include two reverse mergers into SPACs, including Super Group via Sports Entertainment Acquisition Corp (SEAH) for $4.6 billion and Jam City reverse merging with DPCM Capital in a $1.3 billion transaction. Take-Two Interactive was acquisitive with the $1.4 billion acquisition of Playdemic and the $380 million acquisition of soccer game developer Nordeus.

Finally, the podcast sector remained active, with 7 transactions announced in the second quarter, with large media companies such as Spotify, Amazon, iHeart and Sony continuing to stake their claim in the sector.

OUTLOOK – TRADITIONAL MEDIA

TRADITIONAL MEDIA COMMENTARY

The following is an excerpt from a recent note by Noble’s Media Equity Research Analyst Michael Kupinski

Overview

Consumer cyclical stocks typically do well in an early stage economic and advertising recovery. As such, it is no surprise that most Media stocks outperformed the general market in the latest quarter. While the general market, as measured by the S&P 500 Index, was up a solid 8%, the Radio stocks outperformed with hefty gains of 34%, while Television stocks underperformed, up 3%. Investors appear optimistic regarding the economy. In the first quarter, GDP grew at an annualized rate of 6.4%, which is above the target growth rate between 2% and 3%. Such a strong GDP growth rate would imply a pick-up in inflation and cause investor concern. Inflation is increasing but investors appear to have shrugged off the rise in inflation, which may be as much as 5.7% on an annualized basis in the second quarter.

The jump in inflation is expected to be a function of an economy in recovery from a steep recession. A recovering economy on steroids from stimulus, however, that is driving consumer demand, putting pressure on commodity prices. In addition, there appears to be supply restraints driven by labor shortages, in turn fueling higher wages. For now, many investors and analysts believe that inflation will moderate for the balance of the year. This theory assumes that the rebounding economy will moderate on tougher year earlier comparisons and the prospect of slower consumer demand, easing pressure on supply and labor shortages. The Fed has indicated that the rising prices are “transitory” and that it is willing to tolerate a higher level of inflation for some time. Such an environment is favorable for consumer cyclical stocks. However, we would look for some trouble with the Media stocks, if, and when, the Fed changes course on interest rates. Cyclical stocks tend not to perform as well during periods of rising interest rates. As such, there will be an intense investor focus on the pace of the economy and inflation in the second half of this year and early 2022 as investors chart the prospect of a Fed interest rate hike. For now, investors appear willing to look beyond the current higher inflationary trends and the outlook for the Media stocks appear favorable, but likely will be choppy.

The strongest performance in the last quarter was in the Radio sector, up 34% in the latest quarter, continuing a streak that now extends a full year. The Radio stocks are up 66% over the past 12 months. Radio was one of the worst performing sectors during in the midst of the pandemic as the industry struggled with high debt loads at a time when advertising significantly fell. Investors appear more optimistic now, especially as many companies are aggressively paring down debt. Of the best performing stocks in the Noble Radio Index, most had favorable announcements regarding debt prepayments, including IHeartMedia (up 40% in the latest quarter) and Cumulus Media (up 61% in the latest quarter). Both companies announced debt prepayments of $250 million and $175 million, respectively, in the latest quarter.

Television Broadcasting

The FCC’s Finger On The Scale

The Noble Television Index underperformed the general market in the latest quarter, up a modest 3% versus the general market, as measured by the S&P 500 Index, up 8%. We view the performance as a breather from the strong gains achieved over the past year, up a solid 69% versus the general market, as measured by the S&P 500 Index, up 39% in the comparable time frame. The early 2021 stock performance was fueled by the strong gains with ViacomCBS, which collapsed in March, falling over 50%, following an announced equity raise, Wall Street downgrades, and Archegos Capital Management liquidating its entire position. With the Noble Television Index market cap weighted, the ViacomCBS performance adversely affected the performance of the Index.

Investors seem deal hungry. One of the strongest performers in the sector in the last quarter was Gray Television. In the latest quarter, Gray Television made back-to-back M&A announcements to acquire Quincy Media (February 1st) and then Meredith’s broadcast television stations (May 3rd). The company revised upward the price for the Meredith transaction on June 3rd. Combined, these proposed acquisitions total $3.08 billion in transaction value. Gray Television shares performed well in the quarter, outperforming the general market and many of its industry peers, up 27%.

While Gray plans to sell stations that it overlaps in order to avoid regulatory issues in closing the transactions, the company was recently dealt a warning from the FCC. The FCC proposed to fine Gray $518,000 for evading local TV limits. The FCC stated that its ownership of KTUU, an NBC affiliate, and KYES-TV in Anchorage, Alaska was in violation of local ownership rules. The FCC alleges that Gray owned KYES ran programming that previously appeared on the CBS station, KTVA, which was owned by Denali Media, effectively running the number 1 and 2 network affiliated stations in a market. Gray notified the FCC that it has subsequently moved the CBS programming from KYES to a low power translator station and will air that programming on KTUU’s sub channel. The FCC issued a stern warning that future violations will be subject to divestiture or enforcement action. We believe that this “dust up” is a publicity nightmare for Gray while it is seeking approval for its recent acquisitions. Importantly, we do not believe that it will hinder regulatory approval for the acquisitions.

Given that the fine is the statutory maximum for a single violation that the FCC can impose, we believe that the move illustrates the regulatory scrutiny that the industry faces, even after the FCC relaxed some local media ownership rules. We are concerned that the FCC’s unwillingness and lack of leadership to further lift local and national ownership restrictions and caps on the broadcast television industry may constrain its ability to compete with the likes of Big Tech companies, which largely are unchecked. The FCC’s recent relaxation of media ownership rules, particularly the cross-ownership restrictions, appear to us to be too little and too late. In our view, the FCC is largely to blame for the decimation of the newspaper industry. So, far, the Broadcast Television industry has attractive avenues for growth, but the inability to gain national scale and compete locally against far larger companies could be problematic in the future.

For now, the fundamental environment for the broadcast television industry appears favorable, with advertising rebounding. In addition, we anticipate that investors will begin to focus on the biennial elections and the influx of political advertising. Typically, the broadcast stocks perform best the year prior to an election year, up an average of nearly 20%. This year, the stocks appear to be on track to exceed the average performance, a combination of a steep advertising recovery, compelling stock valuations, and heightened M&A activity. Notably, the M&A activity has also diversified many of the broadcasters. The recent acquisitions by E.W. Scripps positioned that company in the growing OTT market. Most recently, Entravision transformed its company in a series of Digital Media acquisitions that now account for 75% of its revenues. As ownership caps are reached, we believe that more companies will seek growthier opportunities outside of the traditional Television space.

Radio Broadcasting

Debt Reduction Heightens Interest

The Noble Radio Index had strong performance in the latest quarter, driven by “event” news. The Radio Index increased a strong 34% versus the general market, as measured by the S&P 500 Index, up 8%, in the latest quarter. The quarterly performance boosted the annual gains to an impressive 66% gain. A handful of stocks contributed to the latest quarter gains; IHeart shares increased 40%; Cumulus Media was up 61%; and Urban One was up 187%. Aside from Urban One, which is discussed later, the thread for the industry’s outperformance was debt reduction. On June 22, IHeart announced that it made a prepayment of $250 million on its debt. Cumulus Media made a $175 million prepayment on June 25. A portion of the $175 million, ($140 million), came from the sale of its remaining towers and land in Bethesda, Maryland. Debt levels are relatively high for the industry. Average debt to cash flow is an uncomfortable 9.1 times for the industry. With the stocks trading on average 10.7 times EV to EBITDA on 2021 estimates, debt reduction should have a meaningful impact on improving equity values. In addition, we believe that heightened interest in Radio stocks were related to the likelihood of strong revenue and cash flow gains in the quarter.

The pandemic hit the Radio industry hard in the second quarter 2020. Stay at home mandates significantly reduced Radio advertising, especially in important drive times. Radio second quarter 2020 advertising dropped a whopping 55% on average. Given a rebounding economy, Radio advertising is expected to have a comeback in the second quarter 2021, estimated to be up an average of 45% year over year. EBITDA is estimated to be up an average of 357% in the second quarter, obviously from a very low base last year. The improving fundamentals should allow for solid debt reduction throughout the balance of the year.

In addition to the debt reduction theme, many companies are diversifying from its traditional Radio roots into other businesses. Urban One’s exceptional quarterly stock performance was driven by a city council approval in May of the company’s proposed $600 million casino project in Richmond, Virginia. The city council will need to vote on the terms of the agreement at a meeting to be held November 2 and voters will need to approve the November referendum.

As we look forward toward the second half, revenue comparisons will become more difficult given the improving revenue trends last year, especially given the lift from political advertising in Q3 and Q4 2020. As such, there will likely be a deceleration in the rate of revenue growth in the second half from the second quarter revenue growth rate. Since cyclical stocks tend to follow revenue trends, we would not rule out the prospect of some profit taking in Radio stocks on the good news of the second quarter. We expect that revenue trends will improve in 2022, especially given the influence of political advertising next year. In addition, we continue to expect that managements will focus on aggressive debt reduction, which should help equity values.

DOWNLOAD THE FULL REPORT (PDF)

Noble Capital Markets Media Newsletter Q2 2021

This newsletter was prepared and provided by Noble Capital Markets, Inc. For any questions and/or requests regarding this news letter, please contact >Chris Ensley

DISCLAIMER

All statements or opinions contained herein that include the words “ we”,“ or “ are solely the responsibility of NOBLE Capital Markets, Inc and do not necessarily reflect statements or opinions expressed by any person or party affiliated with companies mentioned in this report Any opinions expressed herein are subject to change without notice All information provided herein is based on public and non public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on their own appraisal of the implications and risks of such decision This publication is intended for information purposes only and shall not constitute an offer to buy/ sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice Past performance is not indicative of future results.

Please refer to the above PDF for a complete list of disclaimers pertaining to this newsletter

Release – electroCore Provides Business Update and Select Second Quarter 2021 Financial Guidance

Posted on July 13, 2021 by Admin

electroCore Provides Business Update and Select Second Quarter 2021 Financial Guidance

July 13, 2021 at 8:00 AM EDT

Second-Quarter 2021 revenue expected to be approximately $1.3 million
Net cash used to fund operations in the second quarter 2021 of approximately $3.2 million
Follow on offering subsequent to June 30, 2021 added $18.8 million to cash balance

Research and Development: There were several important research and development advancements related to gammaCore during the second quarter of 2021.

Financial Guidance: electroCore today announced the following preliminary unaudited financial guidance for the second quarter of 2021:

The company intends to provide a detailed operational and financial update during its second quarter 2021 earnings call in
August 2021.

gammaCore is contraindicated for patients if they:

Have an active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device
Have a metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck
Are using another device at the same time (e.g., TENS Unit, muscle stimulator) or any portable electronic device (e.g., mobile phone)

Safety and efficacy of gammaCore have not been evaluated in the following patients:

Patients diagnosed with narrowing of the arteries (carotid atherosclerosis)
Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy)
Pediatric patients (less than 12 years)
Pregnant women
Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia

Please refer to the gammaCore Instructions for Use for all of the important warnings and precautions before using or prescribing this product.

Investors:
Rich CockrellCG Capital
404-736-3838
ecor@cg.capital

or

Media Contact:
Jackie Dorsky
electroCore
908-313-6331
jackie.dorsky@electrocore.com

Release – OpRegen Data Update to Be Featured at 54th Annual Retina Society Meeting in Podium Presentation by Christopher D. Riemann M.D.

Posted on July 13, 2021 by Admin

OpRegen® Data Update to Be Featured at 54th Annual Retina Society Meeting in Podium Presentation by Christopher D. Riemann, M.D.

CARLSBAD, Calif.–(BUSINESS WIRE)–Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing allogeneic cell therapies for unmet medical needs, announced today that updated interim results from a Phase 1/2a study of its lead product candidate, OpRegen, a retinal pigment epithelium cell transplant therapy currently in development for the treatment of dry age-related macular degeneration (AMD), will be featured in a podium presentation at the 54^th Annual Scientific Meeting of the Retina Society, to be held at the Ritz-Carlton Hotel in Chicago, IL (September 29 – October 2, 2021). The presentation, “Phase 1/2a Clinical Trial of Transplanted Allogeneic Retinal Pigmented Epithelium (RPE, OpRegen) Cells in Advanced Dry Age-Related Macular Degeneration (AMD): Interim Results,” will be presented on September 30, 2021 at 9:52 am EDT by Christopher D. Riemann, M.D., Vitreoretinal Surgeon and Fellowship Director, Cincinnati Eye Institute (CEI) and University of Cincinnati School of Medicine.

The Retina Society was founded in 1968 exclusively for educational and scientific purposes concerning the diagnosis, care and treatment of diseases and injuries to the retina. For more information on the Retina Society or its annual scientific meeting, please visit https://www.retinasociety.org/ or follow the association on Twitter @RetinaSociety.

About OpRegen

OpRegen is currently being evaluated in a Phase 1/2a open-label, dose escalation safety and efficacy study of a single injection of human retinal pigment epithelium cells derived from an established pluripotent cell line and transplanted subretinally in patients with advanced dry AMD with geographic atrophy (GA). The study enrolled 24 patients into 4 cohorts. The first 3 cohorts enrolled only legally blind patients with Best Corrected Visual Acuity (BCVA) of 20/200 or worse. The fourth cohort enrolled 12 better vision patients (BCVA from 20/65 to 20/250 with smaller mean areas of GA). Cohort 4 also included patients treated with a new “thaw-and-inject” formulation of OpRegen, which can be shipped directly to sites and used immediately upon thawing, removing the complications and logistics of having to use a dose preparation facility. The primary objective of the study is to evaluate the safety and tolerability of OpRegen as assessed by the incidence and frequency of treatment emergent adverse events. Secondary objectives are to evaluate the preliminary efficacy of OpRegen treatment by assessing the changes in ophthalmological parameters measured by various methods of primary clinical relevance. OpRegen is a registered trademark of Cell Cure Neurosciences Ltd., a majority-owned subsidiary of Lineage Cell Therapeutics, Inc.

About Age-Related Macular Degeneration

Age-related macular degeneration (AMD) is an eye disease that can blur the sharp, central vision in patients and is the leading cause of vision loss in people over the age of 60. There are two forms of AMD: dry (atrophic) AMD and wet (neovascular) AMD. Dry (atrophic) AMD is the more common of the two forms, accounting for approximately 85-90% of all cases. In atrophic AMD, parts of the macula get thinner with age and accumulations of extracellular material between Bruch’s membrane and the retinal pigmented epithelium (RPE), known as drusen, increase in number and volume, leading to a progressive loss of central vision, typically in both eyes. Global sales of the two leading wet AMD therapies were in excess of $10 billion in 2019. Nearly all cases of wet AMD eventually will develop the underlying atrophic AMD if the newly formed blood vessels are treated correctly. There are currently no U.S. Food and Drug Administration, or European Medicines Agency, approved treatment options available for patients with atrophic AMD.

About Lineage Cell Therapeutics, Inc.

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen^®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of subacute spinal cord injuries; and (iii) VAC2, an allogeneic dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer. For more information, please visit www.lineagecell.com or follow the Company on Twitter @LineageCell.

Contacts

Lineage Cell Therapeutics, Inc. IR
Ioana C. Hone
(ir@lineagecell.com)
(442) 287-8963

Solebury Trout IR
Gitanjali Jain Ogawa
(Gogawa@soleburytrout.com)
(646) 378-2949

Russo Partners – Media Relations
Nic Johnson or David Schull
Nic.johnson@russopartnersllc.com
David.schull@russopartnersllc.com
(212) 845-4242

Release – Sierra Metals To Release Q2-2021 Consolidated Financial Results On Monday August 9th 2021

Posted on July 13, 2021 by Admin

Sierra Metals To Release Q2-2021 Consolidated Financial Results On Monday August 9th, 2021

Shareholder Conference Call and Webcast will also be held on Tuesday August 10^th, 2021

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (NYSE American: SMTS) (BVL: SMT) (“Sierra Metals” or the “Company”) will release Q2-2021 financial results on Monday August 9^th, 2021 after Market Close. Senior Management will also host a webcast and conference call on Tuesday August 10^th, 2021 at 10:30am EDT. Details of the Conference Call and Webcast are as follows:

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website:

https://event.on24.com/wcc/r/3193745/DC7EA7F3C83E666235B780E1DAD14D0A

The webcast along with presentation slides will be archived for 180 days on www.sierrametals.com.

Via phone:

To register for this conference call, please use the link provided below. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. As well, reminders will be sent to registered participants in advance of the call. If you experience difficulty registering, please dial: (888) 869-1189 or (706) 643-5902 for extra assistance.

Registration is open throughout the live call, however, to ensure you are connected for the full call we suggest registering a day in advance or at minimum 10 minutes before the start of the call.

Conference Call Registration Link:

http://www.directeventreg.com/registration/event/7308198

About Sierra Metals

Sierra Metals Inc. 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 Bolsa de Valores de Lima and on the Toronto Stock Exchange 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 or contact:

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

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

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information“). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. 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 the Company’s annual information form dated March 18, 2021 for its fiscal year ended December 31, 2020 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is 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 such 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
Vice President, Investor Relations
Sierra Metals Inc.
Tel: +1 (416) 366-7777
Email: info@sierrametals.com

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

Source: Sierra Metals Inc.

Release – Neovasc Announces New Appointments in Regulatory and Clinical Leadership

Posted on July 13, 2021 by Admin

Neovasc Announces New Appointments in Regulatory and Clinical Leadership

Neovasc Team Grows with Addition of Industry Veterans Lisa Becker as VP, Regulatory Affairs, Global Angina Therapies and Sarah Gallagher as VP of Clinical Affairs

VANCOUVER and MINNEAPOLIS – (NewMediaWire) – July 13, 2021 – Neovasc Inc. (Neovasc or the Company) (Nasdaq, TSX: NVCN) announced today that it has appointed Lisa Becker as Vice President, Regulatory Affairs, Global Angina Therapies and Sarah Gallagher as Vice President, Clinical Affairs.

“Neovasc’s Regulatory and Clinical teams will be well strengthened with the additions of Lisa and Sarah, who bring tremendous experience in regulatory and clinical affairs to the overall Neovasc team,” said Fred Colen, President and Chief Executive Officer of Neovasc. “We look forward to leveraging their industry expertise as we pursue our own development goals in North America and Europe.”

Ms. Becker has more than 20 years of experience in medical device regulatory affairs. Her product and therapy experience has spanned medical devices from cardiac rhythm management, to vascular support, pulmonary artery pressure monitoring, cardiac occluders, heart valves and most recently, structural heart products, previously working at Abbott, St. Jude Medical, Boston Scientific and Guidant. She possesses regulatory experience on a global scale, with responsibility for multiple geographies, including US and EU Class III approvals. Ms. Becker earned a Bachelor of Science in Organizational Behavior with a General Engineering minor from the United States Air Force Academy and a Masters of Science from Chapman University. She served nearly ten years on active duty as an officer in the US Air Force. A highlight of Ms. Beckers career includes the approval of the world’s smallest mechanical heart valve and a duct occluder for premature infants, which was approved in four major geographies within a six-month period.

I view my regulatory work as a continuation of my service toward improving lives. As a member of the Neovasc team, I will bring my professional passion for driving medical device development through creative and collaborative regulatory approval strategies to the Company’s efforts to expand approval and acceptance of the Reducer device, said Ms. Becker.

Ms. Gallagher brings 20 years of medical device clinical research experience to the Neovasc team.Prior to joining Neovasc, she held leadership roles at Medtronic in Interventional Pain, Neuromodulation, and Cardiac Rhythm Management, as well as St. Jude Medical in Structural Heart.During her tenure she held roles with increasing responsibility in clinical research and clinical operations, and she has developed and executed both pre- and post-market clinical trials and supported regulatory approvals globally. Ms. Gallagher holds a Bachelor of Applied Arts in Exercise Science and a Bachelor of Arts in Psychology from the University of Minnesota, and Master of Science in Technology Management from the University of St. Thomas.

I am excited to be joining the Neovasc Clinical Affairs team at this critical point in the Company’s corporate and clinical journey, said Ms. Gallagher. I am eager to engage in the ongoing and new studies and data supporting the Reducer and Tiara programs, as we seek to bring these important treatment options to more patients.

Neovasc also announces the departure of Vicki Bebeau, former Vice President of Clinical and Regulatory affairs who is assisting with transitioning activities to Sarah and Lisa until August 30, 2021.

About Neovasc Inc.

Neovasc is a specialty medical device company that develops, manufactures and markets products for the rapidly growing cardiovascular marketplace. Its products include Reducer, for the treatment of refractory angina, which is not currently commercially available in the United States and has been commercially available in Europe since 2015, and Tiara, for the transcatheter treatment of mitral valve disease, which is currently under clinical investigation in the United States, Canada, Israel and Europe. For more information, visit: www.neovasc.com.

Forward-Looking Statement Disclaimer

Certain statements in this news release contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws that may not be based on historical fact.When used herein, the words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “intend,” “believe”, and similar expressions, are intended to identify forward-looking statements. Forward-looking statements may involve, but are not limited to, the Company’s regulatory and clinical team being strengthened with the additions of Ms. Becker and Ms. Gallagher, leveraging the industry experience of Ms. Becker and Ms. Gallagher to pursue the Company’s development goals in North America and Europe, Ms. Beckers plans of bringing collaborative regulatory approval strategies to the Company’s efforts to expand approval and acceptance of the Reducer device, Ms. Gallaghers plans to engage in ongoing and new studies and data supporting the Reducer and Tiara programs and seeking to bring these treatment options to more patients and the growing cardiovascular marketplace. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, market and other conditions as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including those described in the “Risk Factors” section of the Company’s Annual Information Form and in the Management’s Discussion and Analysis for the three months ended March 30, 2021 (copies of which may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investors

Mike Cavanaugh
Westwicke/ICR
Phone: +1.646.877.9641
Mike.Cavanaugh@westwicke.com

Media

Sean Leous
Westwicke/ICR
Phone: +1.646.866.4012
Sean.Leous@westwicke.com

Coeur Mining (CDE) – Updating Estimates Ahead of Second Quarter Earnings Report

Posted on July 13, 2021 by Admin

Tuesday, July 13, 2021

Coeur Mining (CDE)
Updating Estimates Ahead of Second Quarter Earnings Report

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

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.

Big year for exploration. Coeur recently provided an update on its 2021 exploration programs at Silvertip in British Columbia and the Crown exploration property in Nevada. A new mineralized zone with bulk mining potential was discovered at Silvertip which enhances the high-grade resource potential near the mine. Management expects to release an updated mine plan and economic analysis by year-end. Drill results at Crown continue to affirm significant resource growth potential at the Daisy, Secret Pass, SNA, and C-Horst zones. Coeur expects to complete an optimized resource and financial model for Crown by year-end which will form the basis of an initial economic assessment expected to be released in mid-2022.

Updating estimates. We have lowered our full year 2021 EPS and EBITDA estimates to $0.35 and $280.9 million from $0.45 and $293.4 million, respectively. Our revised estimates reflect additional shares issued during the second quarter associated with Coeur’s investment in Victoria Gold Corp. (TSX, VGCX), modestly higher amortization expense and lower realized gold price assumptions. Our production …

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.

The New Space Race

Posted on July 12, 2021 by Admin

Capitalizing on the New Space Race

The first piloted space flight was in May 1961. The first human footprint on the moon took place July of 1969. The initial space shuttle launch that allowed regular trips outside of Earth’s atmosphere was in April 1981. What all of these milestones have in common is they were taxpayer-funded with the equipment, design and ingenuity largely from private industry. Another attribute they all shared is they required extreme audacity, desire, and faith in human engineering, and understanding of what is possible. Spurred by these government lead projects, we have all benefitted from the resulting technology and infrastructure is benefitting us every day with our cars, phones, homes, and businesses.

New Space Age

We now are at the edge of being able to benefit more directly, as a passenger, or as an investor, even as a recipient of services from numerous public companies set to accomplish much more. The advancements within our reach now include the possibility of fusion-powered flight expected before the end of this decade, 3-D printer-assisted repairs in space, asteroid mining, and citizen passengers – each of which seemed impossible just a decade ago. How these fledgling companies will finance the leaps forward could require just as much ingenuity as the unearthly goals and initial vision.

Although SpaceX, Virgin Galactic, and the U.S. military’s Space Force steal the headlines, hundreds of off-the-radar start-ups have formed to find and fulfill their own mission in the changing field of travel, shipping, exploration, mining, and infrastructure. The expanding list of opportunities for investors include satellite manufacturing, edge computing, broadcast media, rocket design, fusion technologies, launch (and retrieval) infrastructure, special mining equipment, fuel technology, etc. – they will require a great deal of capital, and investor interest for every dollar needed to design-build, test and succeed in creating ongoing profitable enterprises.

From Ground Up Business Ecosystem

The infant space industry won’t have the luxury of being able to explore science for science’s sake. It will need to be focused on profitability and in many cases attracting and retaining patient investors. There are a number of companies now involved in space launch and landing capabilities. Without this fundamental infrastructure, the rest of the industry can not get off the ground. They will need to be able to compete with traditional government providers. But there is a growing need for the service of companies that launch smaller, uncomplicated satellites into orbit. There is such steady and increasing demand for smallsats; some of the launch companies placing them in orbit are already profitable. As with other forms of shipping or transport, competing for business has these companies striving to lower their cost of launch.

As launch becomes more common, affordable, and available, it will open up the rest of the space marketplace for growth. Not unlike the early stage of any industry, thriving depends on many co-dependencies. The launch companies are depending on the small and medium satellite producers, these producers rely on services companies, who, among other areas, are focused on satellite broadband, low-earth-orbit imaging, and weather monitoring. Some of these services then make launch easier, and the circular dependency matures and gets stronger.

One natural benefit this industry possesses is that NASA, NOAA, and the U.S. Department of Defense are still well-funded customers. This helps in what might otherwise have the same chicken and egg dilemma that the electric vehicles are experiencing with infrastructure needs. The category of space is extensive, and the needs are many and expanding. The U.S. and other countries as clients will help provide early revenue that should help launch and propel the industry to higher heights.

Take-Away

The interest in outer space among investors is more multi-faceted than any industry. In addition to profit, which is the foundation of any prudent investment, there is the passionate dream of commercial space travel, there is the human desire to be part of gaining more knowledge about our world or universe, younger Millennials and Generation Z may be more focused on the measuring climate change and perhaps relocation.

Information on many smaller companies that may benefit by making contributions within this sector is available on Channelchek. A quick search uncovered Astro Aerospace (ASDN) a designer, manufacturer, and coordinator of space deployable products. Kratos Defense and Security Systems, Inc. (KTOS) Kratos Defense & Security Solutions, Inc. provides engineering, information technology (IT) services, and warfighter solutions primarily in the United States. One-Stop Systems, Inc. (OSS) is engaged in designing, manufacturing, marketing high-end systems for high-performance computing (HPC) applications in harsh environments. Sky and Space Global (BENGF) is a nano-satellite manufacturer. They construct and operate a communications infrastructure based on nano-satellite technology and develop software systems that will deploy, maintain orbit control, and handle the communication network in space. Visit the Company Data section of Channelchek to explore and discover on your own.

Suggested Reading:

Space as a Lucrative Investment Space

What Companies are Involved in Spaceflight?

Can You Invest in Uranium Directly?

Investors Will Need to Adjust to Super-Sized Small-Caps

Sources:

https://www.space.com/fusion-powered-spacecraft-could-launch-2028.html

https://www.morganstanley.com/ideas/space-earth-sustainability

https://www.morganstanley.com/ideas/future-space-economy

https://www.morganstanley.com/ideas/investing-in-space

https://youtu.be/VPnD42649_E?t=6

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Digital, Media & Entertainment Industry – What A Tolerant Fed Implies For Media Stocks

Posted on July 12, 2021 by Admin

Monday, July 12, 2021

Digital, Media & Entertainment Industry
What A Tolerant Fed Implies For Media Stocks

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to end of report for Analyst Certification & Disclosures

Overview. Historically, consumer cyclical stocks have had trouble during periods of rising inflation and the likelihood of rising interest rates. But, the Fed is telecasting its view that the recent increase in inflation is “transitory” and likely will abate in the second half. Furthermore, the Fed appears “tolerant” of rising inflation for some time. This has favorable implications for media stocks. This report highlights the past quarter performance and our current favorites.

Digital Media: Back in the Saddle and Riding High. Ad Tech stocks recovered from the initial advertising downturn: while 2Q 2020 revenues declined, they rebounded strongly in 3Q and 4Q of 2020, and that strength has continued into the first half of 2021. There was a dramatic increase in M&A activity in 2Q 2021 compared to 2Q 2020. For the second quarter in a row, the most active sector was Digital Content.

Esports: An Eye on the Next Level. The Esports stocks took a breather in the second quarter following a strong first quarter performance. Notably, the stocks have still performed well over the last year beating the general market. The industry is gearing up for a return to “normalcy” with in person tournaments being planned and there is much thought outside the box in terms of venues. We remain constructive on this dynamic growth industry.

Broadcast Radio: Debt Reduction Heightens Interest. While the Noble Radio Index was up significantly in the latest quarter, an increase of 33.7%, there was a mixed performance for individual companies. It was a news driven quarter, with the shares of IHeart, Cumulus Media, and Urban One, having the best performance in the sector. In the absence of “event” news, will the upcoming quarterly results be the catalyst for higher stock valuations or will there be profit taking?

Broadcast Television: Does The FCC Have A Finger On The Scale? Broadcast stocks under performed the general market the last quarter, in part due to the disappointing performance of ViacomCBS, influencing this market cap weighted index. Individual stocks that made acquisitions, like Gray Television and Entravision, performed much better. We ponder whether broadcasters will diversify away from TV as the FCC seems to be tipping the scale in favor of Big Tech.

Overview

Consumer cyclical stocks typically do well in an early stage economic and advertising recovery. As such, it is no surprise that most Media stocks outperformed the general market in the latest quarter. While the general market, as measured by the S&P 500 Index, was up a solid 8.2%, the Traditional Media stocks outperformed with hefty gains in Radio, up 35.6% and Television, up 16.7%. There was a mixed performance in Digital Media, discussed later in this report. Investors appear optimistic regarding the economy. In the first quarter, GDP grew at an annualized rate of 6.4%, which is above the target growth rate between 2% and 3%. Such a strong GDP growth rate would imply a pick up in inflation and cause investor concern. Inflation is increasing. But, investors appear to have shrugged off the rise in inflation, which may be as much as 5.7% on an annualized basis in the second quarter. Why?

The jump in inflation is expected to be a function of an economy in recovery from a steep recession. A recovering economy on steroids from stimulus, however, that is driving consumer demand, putting pressure on commodity prices. In addition, there appears to be supply restraints driven by labor shortages, in turn fueling higher wages. For now, many investors and analysts believe that inflation will moderate for the balance of the year. This theory assumes that the rebounding economy will moderate on tougher year earlier comparisons and the prospect of slower consumer demand, easing pressure on supply and labor shortages. The Fed has indicated that the rising prices are “transitory” and that it is willing to tolerate a higher level of inflation for some time. Such an environment is favorable for consumer cyclical stocks. But, we would look for some trouble with the Media stocks, if, and when, the Fed changes course on interest rates. Cyclical stocks tend not to perform as well during periods of rising interest rates. As such, there will be an intense investor focus on the pace of the economy and inflation in the second half of this year and early 2022 as investors chart the prospect of a Fed interest rate hike. For now, investors appear willing to look beyond the current higher inflationary trends and the outlook for the Media stocks appear favorable, but likely will be choppy.

The strongest performance in the last quarter was in the Radio sector, up 33.7% in the latest quarter, continuing a streak that now extends a full year. The Radio stocks are up 66.4% over the past 12 months. Radio was one of the worst performing sectors during in the midst of the pandemic as the industry struggled with high debt loads at a time when advertising significantly fell. Investors appear more optimistic now, especially as many companies are aggressively paring down debt. Of the best performing stocks in the Noble Radio Index, most had favorable announcements regarding debt prepayments, including IHeartMedia (up 39.8% in the latest quarter) and, one of our favorites, Cumulus Media (up 60.8% in the latest quarter). Both companies announced debt prepayments of $250 million and $175 million, respectively in the latest quarter.

Overall, we remain constructive on the Media and Digital Media sectors given the favorable environment of improving economy, advertising recovery, and in the absence of a Fed raising interest rates. In addition, investors can look forward toward 2022, another Political advertising year which should boost revenue and cash flow. Such an environment has been favorable for media companies in the past. We encourage investors to be selective, however, given the prospect that the Fed may raise interest rates at some point next year. As such, focus on companies that have a clear path toward debt reduction, those that have diversified businesses or businesses with a strong growth element, and/or compelling stock valuations that do not fully account for the “hidden” value of its businesses. Our favorites include Townsquare Media, Entravision, and eSports Entertainment.

Digital Media

Ad Tech: Back in the Saddle and Riding High

Last quarter, we noted that advertising technology (Ad Tech) stocks were the strongest performing sector over the previous 12-month period. The average stock in the Ad Tech sector at the end of the first quarter of 2021 was up 339% over the prior year. Part of this reflected the starting point: at the end of March 2020, concerns about Covid-19 and its impact on advertising had caused the average stock in the sector to decline by 27%. The other part of the story is how well Ad Tech stocks recovered from the initial advertising downturn: while 2Q 2020 revenues declined, they rebounded strongly in 3Q and 4Q of 2020, and that strength has continued into the first half of 2021. Figure #1 illustrates the stock performance in the Digital sectors in the latest quarter.

Figure #1

Digital Media Q2 Stock Performance

It hasn’t always been this way. In fact, the first group of Ad Tech companies to go public in the 2010-2016 time frame did not perform well on average. Ad Tech “1.0” companies saw an average decline of 4% one-year after their IPO. One reason some of these companies didn’t do well is that they missed expectations or guidance often within 2-3 quarters after going public. Another reason the group didn’t perform well is that 6 of the 9 Ad Tech 1.0 companies that went public were not profitable on an EBITDA basis, and many struggled to demonstrate a path to profitability.

Two years ago, we noted that most Ad Tech companies were trading at 1.0x revenue or less, well below the 7.0x average IPO revenue multiple or 4.8x median IPO revenue multiple. The Ad Tech “2.0” IPOs (those that went public earlier this year) have performed quite well, with the average stock price return up 51% since their offering date. More importantly, Ad Tech valuations are at their highest levels ever. The 2021 Ad Tech IPO group has seen companies go public at 12.6x trailing twelve-month revenue. With these types of valuations, we expect to see more Ad Tech companies file to go public in the second half of 2021.

Besides the sector having more mature companies, another factor is how market has evolved from a desktop display advertising market to a mobile or video-centric/connected TV market. With viewership of video content moving from linear TV to on-demand viewing, Ad Tech companies are well positioned to benefit from the migration to IP-delivered content and ads. In March 2021, there were 54.4 million non-pay TV households in the U.S., up from 37.3 million three years ago. eMarketer estimates that by 2024, the number of non-pay TV households will eclipse the number of pay TV households. This should result in a massive advertising opportunity for Ad Tech companies that are well positioned to take advantage of the continued shift to streaming video.

SPACs Get in the Game

While the digital content sector had the largest transaction value for the quarter, the mobile gaming and game developer sector had the largest number of transactions (21), and accounted for $7.8 billion in M&A during the quarter. Notable transactions include two reverse mergers into SPACs, including Super Group via Sports Entertainment Acquisition Corp (SEAH) for $4.6 billion and Jam City reverse merging with DPCM Capital in a $1.3 billion transaction. Take-Two Interactive was acquisitive with the $1.4 billion acquisition of Playdemic and the $380 million acquisition of soccer game developer Nordeus.

M&A Picks Up Considerably in 2Q 2021 vs. 2Q 2020

Not surprisingly, there was a dramatic increase in M&A activity in 2Q 2021 compared to 2Q 2020. Noble tracked 146 deals worth $30.0 billion in the Internet & Digital Media sector in 2Q 2021 vs. 100 deals worth $12.9 billion in 2Q 2020. For the second quarter in a row, the most active sector was Digital Content, with 54 transactions, followed by Marketing Technology transactions (38), and Information transactions (17).

From a deal value perspective, Digital Content deals led with $17.8 billion in transaction value, followed by the MarTech with $3.7 billion in deal value, followed by Agency & Analytics with $2.6 in deal value. Within the digital media sector, there were several subsectors that were active. Noble tracked 10 digital content deals worth $9.7 billion during the quarter, the largest of which are shown below, and includes Appollo Global’s $5.5 billion acquisition of Verizon Media (and its heritage properties Yahoo! and AOL).

While we are under represented in the Digital Technology and Marketing Technology space, we encourage investors to look at our closely followed company in the space, Harte Hanks. The HRTH shares trade at a steep discount to its peers on the basis of EV to Revenue and EV to EBITDA, 0.4 times versus the industry at 6.6 times. We believe that the company is on the road toward recovery, which is not fully reflected in its share price.

Esports: An Eye On The Next Level

As the previous Figure #1 illustrates, the Noble Esports Index under performed the general market in the latest quarter, down 12.7% versus an 8.2% gain for the general market. While this is certainly a disappointing performance, the Noble Esports Index is still up an impressive 45.2% for the last 12 months, outperforming the general market’s 38.6% advance. We believe that the weak Q2 performance was a victim of the success in Q1 and previous quarters. Only 3 of 16 stocks in the sector were up in the second quarter, but 9 are up for the year. We would note that there continues to be “hot” interest in the space with a large number of transactions. Of the 21 gaming deals, there were 4 esports transactions in the latest quarter.

Esports gained attention during the Covid crisis as gaming increased during stay at home mandates during the pandemic and as starved networks sought Esports programming in lieu of cancelled traditional sporting events. But, in many cases the industry struggled given the lack of in-person tournament play. As the economy has now reopened, large in-person events are now being scheduled. We believe that this will gain interest among consumers and advertisers, raising the visibility of this industry. It is important to note that in-person play is still novel and developing. Esports Entertainment’s Helix venues are just now getting back to normal, increasing capacity from as low as 25% during the pandemic. Furthermore, the industry is looking forward toward developing events at traditional movie cinemas. Why would cinemas consider esports tournament play? Large number of affluent consumers! While there are logistic issues regarding the technological aspect of this prospect, it is an example of the forward thinking for venue growth in the industry. We believe that expansion in platforms and infrastructure will be a key driver for growth in consumers and advertising support.

There are a large number of companies vying for investor attention in the esports/igaming space as Figure #2 illustrates. We anticipate that the number of public companies will diminish as size and financial capability to invest in this fast growing industry will be important. As such, investors may consider buying a basket of stocks in the industry, rather than placing a bet on just one or two. We encourage investors to view Esports Entertainment Group, one of our closely followed companies in the sector, among those in the basket. Esports Entertainment is becoming a vertically integrated company in the space, which includes sports betting and igaming.

Notably, on May 25th, Esports received the long-awaited approval from New Jersey Division of Gaming Enforcement of its gaming license. While the approval does not distinguish between sports and esports betting, the company entered its application with one of the largest states for gambling in an effort to become the preeminent platform for esports betting. The company’s Vie gambling software platform will go through regulatory testing labs to determine if the software is compliant and meets regulatory standards. We believe that the company could be up and running as soon as August. We estimate that the impact from the New Jersey license on fiscal 2022 revenues will be somewhat small, possibly $1 million in fiscal 2022, but grow meaningfully from there. Importantly, we believe that the company will pursue additional license opportunities in other States.

As Figure #2 highlights, Esports Entertainment trades among the cheapest in the industry on the basis of Enterprise Value to Revenues, the best comparable to its industry peers. The estimates do not incorporate the recently announced transactions. Management anticipates that fiscal 2022 revenue will be in the range of $100 million to $105 million. Our estimates will be reviewed upon closing of the announced transactions. Overall, we encourage investors to keep an eye on this developing space.

Figure #2

Broadcast Radio: Debt Reduction Heightens Interest

The Noble Radio Index had strong performance in the latest quarter, driven by “event” news. The Radio Index increased a strong 33.9% versus the general market, as measured by the S&P 500 Index, up 8.2%, in the latest quarter, as the following Figure #3 illustrates. The quarterly performance boosted the annual gains to an impressive 66.4% gain. A handful of stocks contributed to the latest quarter gains; IHeart, increased 39.8%; Cumulus Media was up 60.8%; and, Urban One, was up 186.9%. Aside from Urban One, which is discussed later, the thread for the industry’s outperformance was debt reduction. On June 22, IHeart announced that it made a prepayment of $250 million on its debt. Cumulus Media made a $175 million prepayment on June 25. A portion of the $175 million, ($140 million), came from the sale of its remaining towers and land in Bethesda, Maryland. Debt levels are relatively high for the industry. As Figure #4 illustrates, average debt to cash flow is an uncomfortable 9.1 times for the industry. With the stocks trading on average 10.7 times EV to EBITDA on 2021 estimates, debt reduction should have a meaningful impact on improving equity values. In addition, we believe that heightened interest in Radio stocks were related to the likelihood of strong revenue and cash flow gains in the quarter.

Figure #3

Traditional Media Q2 Stock Performance

The pandemic hit the Radio industry hard in the second quarter 2020. Stay at home mandates significantly reduced Radio advertising, especially in important drive times. Radio second quarter 2020 advertising dropped a whopping 55% on average. Given a rebounding economy, Radio advertising is expected to have a comeback in the second quarter 2021, estimated to be up an average of 44.8% year over year. EBITDA is estimated to be up an average of 356.8% in the second quarter, obviously from a very low base last year. The improving fundamentals should allow for solid debt reduction throughout the balance of the year.

As we look forward toward the second half, revenue comparisons will become more difficult given the improving revenue trends last year, especially given the lift from Political advertising in Q3 and Q4 2020. As such, there will likely be a deceleration in the rate of revenue growth in the second half from the second quarter revenue growth rate. Since cyclical stocks tend to follow revenue trends, we would not rule out the prospect of some profit taking in Radio stocks on the good news of the second quarter. Such a prospect would be viewed as an attractive opportunity to build positions. We expect that revenue trends will improve in 2022, especially given the influence of Political advertising in that year. In addition, we continue to expect that managements will continue to focus on aggressive debt reduction, which should help equity values. As such, we remain constructive on the industry and our favorites, which include Townsquare Media, Cumulus Media, and Salem Media.

Figure #4

Broadcast Television: Does The FCC Have A Finger On The Scale?

The Noble Television Index under performed the general market in the latest quarter, up a modest 3.1% versus the general market, as measured by the S&P 500 Index, up 8.2%. We view the performance as a breather from the strong gains achieved over the past year, up a solid 68.9% versus the general market, as measured by the S&P 500 Index, up 38.6% in the comparable time frame. As Figure #5 illustrates, the early 2021 stock performance was fueled by the strong gains from ViacomCBS, which collapsed in March, falling over 50%, following an announced equity raise, Wall Street downgrades, and Archegos Capital Management liquidating its entire position. With the Noble Television Index market cap weighted, the ViacomCBS performance adversely affected the performance of the Index. Given the sideways performance of ViacomCBS, the Noble Television Index has been lackluster in the quarter. This has masked the individual stock performance in the sector.

Figure #5

Trailing 12 Month Performance

Investors seem deal hungry. One of the strongest performers in the sector in the last quarter was Gray Television. In the latest quarter, Gray Television made back to back M&A announcements to acquire Quincy Media (Feb. 1st) and then Meredith’s broadcast television stations (May 3rd). The company revised upward the price for the Meredith transaction on June 3rd. Combined, after divestitures, these proposed acquisitions total $3.3 billion in transaction value. The Gray Television shares performed well in the quarter, outperforming the general market and many of its industry peers, up 27.2%.

While Gray plans to sell stations that it overlaps in order to avoid regulatory issues in closing the transactions, the company was recently dealt a warning from the FCC. The FCC proposed to fine Gray $518,000 for evading local TV limits. The FCC stated that its ownership of KTUU, an NBC affiliate, and KYES-TV in Anchorage, Alaska was in violation of local ownership rules. The FCC alleges that Gray-owned KYES ran programming that previously appeared on the CBS station, KTVA, which was owned by Denali Media, effectively running the number 1 and 2 network affiliated stations in a market. Gray notified the FCC that it has subsequently moved the CBS programming from KYES to a low power translator station and will air that programming on KTUU’s sub channel. The FCC issued a stern warning that future violations will be subject to divestiture or enforcement action. We believe that this “dust up” is a publicity nightmare for Gray while it is seeking approval for its recent acquisitions. Importantly, we do not believe that it will hinder regulatory approval for the acquisitions.

Given that the fine is the statutory maximum for a single violation that the FCC can impose, we believe that the move illustrates the regulatory scrutiny that the industry faces, even after the FCC relaxed some local media ownership rules. We are concerned that the FCC’s unwillingness and lack of leadership to further lift local and national ownership restrictions and caps on the broadcast television industry may constrain its ability to compete with the likes of Big Tech companies, which largely are unchecked. The FCC’s recent relaxation of media ownership rules, particularly the cross ownership restrictions, appear to us to be too little and too late. In my view, the FCC is largely to blame for the decimation of the newspaper industry. So, far, the Broadcast Television industry has attractive avenues for growth, but the inability to gain national scale and compete locally against far larger companies could be problematic in the future.

Another company in the sector, Entravision, diversified away from its Broadcast TV roots. In the latest quarter, the company announced the planned purchase of MediaDonuts, an Asian based digital marketing services company. With the planned acquisition, Entravision will have shifted its revenue composition from one leaning on its TV business just a few years ago toward its Digital Media businesses accounting, for 75% of total company revenues. In the TV group, Entravision had the strongest performance, up a solid 65.3%, leading all television stocks in the latest quarter.

For now, the fundamental environment for the broadcast television industry appear favorable, with advertising rebounding. In addition, we anticipate that investors will begin to focus on the biennial elections and the influx of Political advertising. Typically, the broadcast stocks perform best the year prior to an election year, up an average of nearly 20%. This year, the stocks appear to be on track to exceed the average performance, a combination of a steep advertising recovery, compelling stock valuations, and heightened M&A activity. Notably, the M&A activity has also diversified many of the broadcasters. The recent acquisitions by E.W. Scripps positioned that company in the growing OTT market. Most recently, Entravision transformed its company in a series of Digital Media acquisitions that now account for 75% of its revenues. As ownership caps are reached, we believe that more companies will seek growthier opportunities outside of the traditional Television space. We remain constructive on the television stocks, given compelling valuations and a favorable fundamental outlook, as indicated in Figure #6. Our current favorites include E.W. Scripps, Gray Television and Entravision, which are among the cheapest in its peer set. In our view, these stocks are deserving of higher stock valuations given the above average revenue and cash flow growth opportunities.

Figure #6

Companies mentioned in this report:

Cumulus Media

E.W. Scripps

Entravision

Esports Entertainment

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.

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IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.

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Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.

Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Director of Research. Senior Equity Analyst specializing in Media & Entertainment. 34 years of experience as an analyst. Member of the National Cable Television Society Foundation and the National Association of Broadcasters. BS in Management Science, Computer Science Certificate and MBA specializing in Finance from St. Louis University.

Named WSJ ‘Best on the Street’ Analyst six times.

FINRA licenses 7, 24, 66, 86, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc.. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public
appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	83%	31%
Market Perform: potential return is -15% to 15% of the current price	3%	1%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same.

Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
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Report ID: 23816

Lithium-Ion Power vs Hydrogen Fuel Cell

Posted on July 12, 2021 by Admin



	Image Credit: TruckPR (Flickr)

Lithium Battery vs. Hydrogen Fuel Cell Vehicles

When it comes to comparing battery-powered Electric Vehicles (EVs) and hydrogen fuel cell batteries to determine which technology will win the future, there is no reason to select one and expect the complete demise of the other. Just as diesel vehicles operate alongside gasoline powered cars and trucks, lithium-ion batteries and hydrogen fuel cell powered vehicles can co-exist. And like gasoline and diesel, they each have advantages and disadvantages that would make one better in some applications than the other. It is important for investors evaluating expected changes in transportation to understand the differences and pros and cons of one over the other.

The Future

Electric power would certainly seem to be the future of personal transportation. There are two competing means to source or store electricity. Battery-powered electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) are in tighter competition than they may appear. While BEVs have attained a great deal of traction, FCEVs may be the come-from-behind favorite when sustainability and utility are measured. We’ll discuss how each works and the known differences.

Current Technology

FCEVs are not hydrogen combustion engine propelled. Their motor is electric and shouldn’t be confused with those that burn hydrogen in much the same way as a car is propelled by gasoline. With both, an FCEV and a BEV, electric power stored or created onboard is delivered to one or more electric motors.

The FCEV produces electricity via a chemical reaction in a fuel cell between expendable hydrogen and oxygen. The hydrogen is then replenished via a filling station, not unlike gas or diesel.

In a BEV, electricity is stored in a lithium-ion battery, à la current day smartphones. That charge retained by the li-ion battery is distributed to the motor(s) on board.

Pros, Cons and Electrons

Hydrogen-powered EVs have a weight-to-power ratio many times greater than lithium stored energy. The lighter, more powerful fuel cell gives the FCEV vehicle a much greater driving distance at a reduced weight. BEVs using 2021 technology would have to be made considerably heavier (additional battery storage) to even compare to the average gasoline powered car on the road. When electric output of any method is discussed, the terminology most often used is power density. Li-ion batteries are not as power dense as a similar weight tank full of hydrogen. Significant range can be added to a hydrogen vehicle without adding a great deal more heft. As far as vehicles using li-ion storage, adding additional output often works against the ability to go farther as it has to now propel much greater weight.

The next generation of batteries for BEVs are expected to be solid-state. The difference is lithium-ion batteries are composed of a cathode, anode, separator, and electrolyte. At present they use a liquid electrolyte solution. Solid-state batteries use solid electrolytes, not liquid. This change in the battery construction is expected to add, on average, 600 miles to the range. This would tend to place the two vehicle types in the same range category – with no similar breakthroughs expected for FCEVs. An important added bonus will be that they will take about half the time to charge versus current liquid electrolyte lithium batteries.

The added range does make the technology competitive, considering most don’t drive more than 10 hours a day. With this in mind, the general consensus is that FCEVs are the preferred choice for long-distance travel. BEVs are more practical for shorter trips. In their present configurations, on average, an FCEV can outdistance a BEV by about 100 miles.

Usability

Refueling time gives FCEVs a large edge. Filling up a tank with hydrogen takes as much time as filling it up with gas or diesel. A drive from New York to Florida would require three five-minute stops with the average FCEV, a BEV may require four stops of approximately five hours on the same trip. The travel time could then be twice as long. While lithium-ion batteries have a limited number of charging cycles, hydrogen fuel cells’ overall life expectancy is much greater.

Its power density and fast refueling times are two reasons hydrogen is revolutionizing the commercial vehicle industry. Long-haul transport trucks would have to reduce their cargo weight if they had heavy batteries; a smaller battery would cut down on the range, which adds to the time and cost to deliver its haul.

Longevity

BEVs are at a disadvantage in lifespan. While most BEV manufacturers offer up to 8 years or 100,000 miles warranty on their lithium-ion batteries, the batteries themselves can only take a limited amount of charging cycles before they start to lose their ability to retain a charge. The batteries have thermal buffers which prevent overcharging or over depletion to extend their lifespan, but owners will not experience the longevity of a fuel cell. In fact, the range, not unlike charging time in a cell phone, becomes increasingly less as it ages. Replacing a battery is a big expense. Fuel cell replacements are not as expensive. The downside of a fuel cell is short-distance driving puts severe stress on its membrane and reduces the lifespan. Continuous use where the cell remains wetted would allow it to extend its life by almost 800%. This is another reason for it to be preferred in long-distance applications rather than constant short trips.

Safety

Hydrogen cars like the Toyota Mirai, the Honda FCX Clarity and the Hyundai Nexo have all been cleared as safe to drive and have no record of major incidents. The same cannot be said for BEVs which have had issues that have been addressed over the years. However, the storage and transportation of hydrogen, along with the refueling process does pose risks. Separating hydrogen atoms at refueling stations, rather than transporting in tank trucks can combat much of this risk.

The perceived and even expected dangers of hydrogen-powered cars has not been demonstrated with statistics. Hydrogen has been transported for industrial use for years, without incident, and there have been no notable incidents with the manufactured FCEVs in actual use.

Sustainability

Hydrogen powered cars actually filter air as they drive, leaving a trail of clearer air. With large-scale production of green hydrogen (clean electrons, produced using renewable energy sources) FCEVs are by far the more sustainable EVs. Especially since they don’t even leave battery waste.

Availability

There is very little in the US or elsewhere which allows hydrogen vehicle refilling. Unless a network is built, all the benefits of hydrogen over alternatives are moot points.

According to a research journal “Compendium of Hydrogen Energy”, published by J. Wind, “About 200 hydrogen refueling stations have been installed worldwide; around 85 of these are located in Europe and approximately 80 in the US (mainly California).”

Suggested Reading:

https://www.scribd.com/book/282668156/Compendium-of-Hydrogen-Energy-Hydrogen-Storage-Distribution-and-Infrastructure

https://www.fueleconomy.gov/feg/fcv_sbs.shtml

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