Month: March 2022

Release – Element79 Gold to Provide Further Insight and Analysis on High-Grade Peruvian Gold Portfolio

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Element79 Gold to Provide Further Insight and Analysis on High-Grade Peruvian Gold Portfolio

News and Market Data on Element79 Gold

 

VANCOUVER, BC / ACCESSWIRE / March 17, 2022 / Element79 Gold Corp. (CSE:ELEM)(OTC PINK:ELMGF)(FSE:7YS) (“Element79 Gold“, the “Company“) is pleased to present further insight and analysis on its recently acquired high-grade Peruvian gold portfolios. In a news release dated March 10th, 2022 (or the “Prior Release“), The Company announced it signed a Letter of Intent (“LOI“) to acquire all of the issued and outstanding securities of Calipuy Resources Inc. (“Calipuy”) and all of its assets and undertakings. Calipuy holds 100% interest in two past-producing high-grade gold-silver mines: The past-producing Lucero Mine (“Lucero”), one of the highest-grade underground mines in Peru’s history(1) at grades averaging 19.0g/t Au Equivalent (“Au Eq”) (14.0 g/t gold and 373 g/t silver)(2), as well as the past-producing Machacala Mine (“Machacala”) which averaged production grades of 10.5 g/t Au Eq (6.0 g/t gold and 340 g/t silver)(5). Operations were suspended in 2005 at Lucero and 1991 at Machacala due to the persistence of low gold and silver prices at the time.

The purpose of this corporate update is to provide a comprehensive discussion and analysis on the strategic reasoning behind the acquisition of the Lucero and Machacala projects, and why Element79 Gold believes that the integration of this new portfolio will help elevate the Company amongst its junior resource exploration peers. Details of the LOI and NSR can be found in the Prior Release. The Prior Release additionally highlights material and technical details of the Lucero and Machacala properties, including a recent 43-101 report on Lucero compiled by Mining Plus.

Diversification of Element79 Gold

Having a portfolio of previously-producing assets that have the near-term potential to be brought back into production provides the Company with a pathway to revenue, which would fund day-to-day administration and offset future exploration and development plans. In completing this acquisition Element79 Gold would now have a well-diversified portfolio of assets including greenfield, advanced 43-101 resource stage, and historic high-grade past- producing mines that have the potential to become producers again in the near term. The cycle of self-reliance and cash flow generation will continue to elevate Element79 Gold to a premiere resource exploration company.

Unique Features of the Lucero and Machacala Past-Producing Mines

Formerly operated as the Shila mine from 1989 to 2005, Lucero consists of 10,805 hectares located in the Shila range of southern Peru, which contains several historic high grade gold-silver mines(1). Lucero consistently delivered high grades during 16 years of operations, and between 1998 and 2004 reported production averaging approximately 18,800 ounces of gold and 435,000 ounces of silver per year at grades of 19.0 g/t Au Eq (14.0 g/t gold and 373 g/t silver),(2) with recoveries at the ore processing facility averaging 94.5% for gold and 85.5% for silver(1).

Infrastructure highlights for the past-producing Lucero Mine include three-phase electrical energy from the national grid that’s available in the town of Chachas 40km from the property. Subject to permitting, surface water is available in streams and small lakes throughout the year. Structures endowed with precious metals have been exploited at Lucero and surrounding areas by artisanal and formal miners over many years. Mining activity targeting high-grade veins is thought to date back to the Inca period(2).

“Lucero offers a rare opportunity to explore for not only an underground high-grade low sulphidation system but potentially an open pit-able high sulphidation system as well,” commented Neil Pettigrew, M.Sc., P.Geo, Director of Element79 Gold. “This past-producing mine has never experienced modern exploration techniques and I am very confident that significant gold-silver resources are to be found.”

The past-producing Machacala mine was first commercially mined in the 1950s before being acquired and operated by Minera Santa Isabel, S.A. from 1979 to 1991 which mined 230,000 metric tonnes averaging 10.5 g/t Au Eq (6.0 g/t Au and 340 g/t Ag) representing 78,000 Au Eq ounces.(6) Operations were suspended in 1991 due to the persistence of a low gold ($360/oz) and silver ($3.81/oz) price.. Machacala hosts multiple low-sulphidation epithermal Au-Ag veins, of which only four have been only modestly exploited.(4)

In addition, Machacala includes 200,000 tonnes of historic, non-43-101 compliant tailings, which were estimated in 1997 by Gold Hawk to contain grades of 1.26 g/t gold and 74 g/t silver.(8) Previous metallurgical studies by Gold Hawk show 87% recoveries of gold and 50%+ recovery of silver in 24 hours of leaching of un-milled tailings, with re-milling able to increase recoveries to 90% of gold and 73% of silver in 24 hours of leaching.(9)

ESG Initiatives

Element79 Gold is committed to the highest levels of corporate governance, and continues to make improvements towards social responsibilities. The Company believes it’s their duty as a global company to be a pioneer in relation to their ESG policies. Over the past few decades, the resource exploration sector has been met with some well-warranted environmental and social criticisms. Our goal is to stop the stigmatization that all resource exploration companies are the same, and that the Company can actually do some “net good”.

Examples of new initiatives is the onboarding of a community ambassador. This person will act as a liaison between the neighbouring communities that the Company will be operating in, and Element79 Gold. This individual will ensure that all local concerns are addressed, and that they will always feel like they have a voice at the table.

Another example will be the hiring of local geologists and operating companies. The purpose of this will be to not only stimulate the local economy and provide jobs for the communities, but to also consider their professional insights as these groups have a lifetime of knowledge to offer Element79 Gold areas that they’re well-familiarized in.

Lastly the Company will look towards commencing philanthropic initiatives such as donating to clean drinking water and other giveback programs in late 2022. These programs will be designed to ensure that Element79 Gold is well integrated to the communities they’ll be working beside.

All gold Equivalent calculations were performed using $1,650/oz gold, and $22/oz silver in line with the Company’s Maverick Springs 43-101 resource estimate, (see news release January 31st, 2022).

Qualified Person

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Director of Element79 Gold and a “qualified person” as defined by National Instrument 43-101.

About Element79 Gold

Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent grading 0.92 Au Eq (0.34 g/t Au and 43.5 g/t Ag) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. For more information about the Company, please visit www.element79.gold or www.element79gold.com

Contact Information

For corporate matters, please contact:

James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com

For investor relations inquiries, please contact:

Investor Relations Department
Phone: +1 (604) 200-3608
E-mail: investors@element79gold.com

Cautionary Note Regarding Forward Looking Statements

This press contains “forward?looking information” and “forward-looking statements” under applicable securities laws (collectively, “forward?looking statements”). These statements relate to future events or the Company’s future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management’s experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to the Company’s business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward?looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward?looking statements”.

Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company’s other public disclosure documents, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward?looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward?looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

Sources

  1. https://web.archive.org/web/20220308020414/https://condorresources.com/portfolio/lucero/
  2. https://web.archive.org/web/20220308020532/https://www.sandstormgold.com/our-royalties/lucero/
  3. https://web.archive.org/web/20220308020649/https://www.sec.gov/Archives/edgar/data/1397970/000118374013000409/f8k08162013ex99-2.htm
  4. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
  5. https://www.bnamericas.com/en/news/Gold_Hawk_Buys_Machala_Project
  6. Gold Hawk Resources Inc News Release, 2004-04-26
  7. https://web.archive.org/web/20220308020657/https://www.affinitygold.com/machacala-highlights
  8. Gold Hawk Resources Inc News Release, 2004-06-28
  9. Affinity Gold Corp. Corporate Presentation March 2013.

SOURCE: Element79 Gold Corp.

Release – Sierra Metals Reports 2021 Consolidated Financial Results And Announces 2022 Guidance

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Sierra Metals Reports 2021 Consolidated Financial Results And Announces 2022 Guidance

Research, News, and Market Data on Sierra Metals

 

CONFERENCE CALL MARCH 17, 2022 – NEW TIME – NOW AT 11:00 AM (EDT)

(All $ figures reported in USD)

  • Revenue from metals payable of $272.0 million in 2021, an increase of 10% from 2020 annual revenue of $246.9 million, largely a result of the increase in realized prices for all metals as compared to 2020;
  • Adjusted EBITDA(1) of $104.7 million for 2021, which is a 2% increase from the adjusted EBITDA of $102.8 million for 2020. The increase in adjusted EBITDA is due to the increase in gross margins at the Yauricocha and Cusi mines;
  • Net loss attributable to shareholders for 2021 was $27.4 million or of $(0.17) per share compared to a net income of $23.4 million or $0.14 per share in 2020. Net losses for the year ended 2021 include a non-cash impairment charge of $35 million related to the Cusi mine;
  • Adjusted net income attributable to shareholders of $21.6 million or $0.13 per share for 2021;
  • Operating cash flows before movements in working capital of $93.4 million for 2021, a 4% decrease from $97.8 million in 2020, due to higher G&A costs in 2021;
  • 2021 consolidated annual ore throughput of 2,902,220 tonnes, an increase of 3% over 2020, mainly driven by the higher throughputs from the Yauricocha and Cusi mines, offset by a decline in the Bolivar annual throughput due to a reduced workforce;
  • Consolidated copper equivalent production of 90 million pounds, a decrease of 24% as compared to 2020, due to a combination of production issues at Bolivar and lower grades at Yauricocha, where a 12% increase in annual throughput at Yauricocha, did not compensate for the lower grades:
  • Consolidated All-In sustaining costs (“AISC”) (1) per copper equivalent pound (2) sold of $3.40 in 2021, or 60% higher than AISC in 2020, driven by higher sustaining capital and the 27% decrease in copper equivalent payable pounds in 2021 compared to 2020;
  • $34.9 million of cash and cash equivalents as at December 31, 2021;
  • Net Debt of $45.9 million as at December 31, 2021.
  • A shareholder conference call to be held Thursday, March 17, 2022, at 11:00 AM (EDT)
    (1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A. (2) Copper equivalent pounds and silver equivalent ounces for Q4 2021 were calculated using the following realized prices: $23.41/oz Ag, $4.40/lb Cu, $1.55/lb Zn, $1.06/lb Pb, $1,795/oz Au. Copper equivalent pounds and silver equivalent ounces for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2021 were calculated using the following realized prices: $25.21/oz Ag, $4.23/lb Cu, $1.37/lb Zn, $1.00/lb Pb, $1,796/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au.

TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX:SMT)(BVL:SMT)(NYSE American:SMTS) (“Sierra Metals” or the “Company”) today reported revenue of $272.0 million and an adjusted EBITDA of $104.7 million on the throughput of 2.9 million tonnes and metal production of 89.9 million copper equivalent pounds for the year ended December 31, 2021.

The following table displays selected financial and operational information for the three months and year ended December 31, 2021:

Three Months Ended Year Ended
(In thousands of dollars, except per share and cash cost amounts, consolidated figures unless noted otherwise) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020
Operating
Ore Processed / Tonnes Milled

 

590,057

 

 

778,236

 

2,902,220

 

 

2,828,877
Silver Ounces Produced (000’s)

 

805

 

 

922

 

3,527

 

 

3,465
Copper Pounds Produced (000’s)

 

6,071

 

 

10,626

 

31,757

 

 

44,262
Lead Pounds Produced (000’s)

 

6,011

 

 

7,630

 

30,816

 

 

32,972
Zinc Pounds Produced (000’s)

 

14,913

 

 

21,612

 

79,281

 

 

81,868
Gold Ounces Produced

 

1,863

 

 

3,363

 

9,572

 

 

13,771
Copper Equivalent Pounds Produced (000’s)1

 

17,841

 

 

29,267

 

89,926

 

 

118,214
 
Cash Cost per Tonne Processed

$

58.21

 

$

44.42

$

48.69

 

$

40.81
Cash Cost per CuEqLb2

$

2.29

 

$

1.31

$

1.81

 

$

1.13
AISC per CuEqLb2

$

4.13

 

$

2.56

$

3.40

 

$

2.12
 
Cash Cost per CuEqLb (Yauricocha)2

$

1.61

 

$

1.16

$

1.46

 

$

1.01
AISC per CuEqLb (Yauricocha)2

$

3.09

 

$

2.47

$

2.77

 

$

2.11
Cash Cost per CuEqLb (Bolivar)2

$

5.29

 

$

1.35

$

2.18

 

$

1.13
AISC per CuEqLb (Bolivar)2

$

8.58

 

$

2.34

$

4.22

 

$

1.88
Cash Cost per AgEqOz (Cusi)2

$

11.80

 

$

15.70

$

16.71

 

$

16.62
AISC per AgEqOz (Cusi)2

$

21.09

 

$

28.18

$

28.15

 

$

25.26
Financial
Revenues

$

62,240

 

$

76,218

$

272,014

 

$

246,888
Adjusted EBITDA2

$

18,843

 

$

33,725

$

104,732

 

$

102,833
Operating cash flows before movements in working capital

$

15,419

 

$

32,259

$

93,405

 

$

97,757
Adjusted net income attributable to shareholders2

$

5,443

 

$

8,670

$

21,571

 

$

30,817
Net income (loss) attributable to shareholders3

$

(34,716

)

$

7,603

$

(27,363

)

$

23,419
Cash and cash equivalents

$

34,929

 

$

71,473

$

34,929

 

$

71,473
Working capital

$

17,321

 

$

70,885

$

17,321

 

$

70,885
 
(1) Copper equivalent pounds and silver equivalent ounces for Q4 2021 were calculated using the following realized prices: $23.41/oz Ag, $4.40/lb Cu, $1.55/lb Zn, $1.06/lb Pb, $1,795/oz Au. Copper equivalent pounds and silver equivalent ounces for Q4 2020 were calculated using the following realized prices: $24.30/oz Ag, $3.32/lb Cu, $1.22/lb Zn, $0.89/lb Pb, $1,859/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2021 were calculated using the following realized prices: $25.21/oz Ag, $4.23/lb Cu, $1.37/lb Zn, $1.00/lb Pb, $1,796/oz Au. Copper equivalent pounds and silver equivalent ounces for full year 2020 were calculated using the following realized prices: $20.59/oz Ag, $2.80/lb Cu, $1.03/lb Zn, $0.83/lb Pb, $1,771/oz Au.
(2) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.
(3) Net loss attributable to shareholders for Q4 and year 2021 includes an impairment charge of $35.0 million on the Cusi mine.

Luis Marchese, CEO of Sierra Metals, stated:“Despite the unprecedented difficulties of 2021, the Company reported a slight increase to Adjusted EBTIDA of $104.7 million. While consolidated annual ore throughput increased, Yauricocha and Cusi metal production did not fully compensate for the lower throughput and grades at Bolivar, resulting in a marked decline in consolidated copper equivalent production of 24% year over year. We are taking significant steps to improve operations at our Bolivar Mine, including a substantial allocation of 2022 budgeted capital expenditures toward reducing backlog of infill drilling and mine development, improved availability of equipment and controls, detailed review of processes and a thorough review of the current organization. We are focused on Bolivar’s operational turnaround so that it can deliver on its potential, by H2 2022.“

He continued, “In addition to an emphasis on operational improvements at Bolivar, the Company is committed to delivering on the goals outlined in its new strategy in Q4 of 2021. A strategic review of Cusi is underway, changes have been made to the organizational structure to better align all operations and achieve goals, and with a heightened focus on ESG, the Company’s inaugural sustainability report is planned for completion in 2022.”

He concluded,“We entered 2022 with a renewed motivation to address major challenges and deliver meaningful returns to our shareholders. COVID-19 safety protocols remain in place and with operations returning to normal, the Company expects to be able to fully catch up and meet its operational and growth initiatives in 2022. Major growth projects at the Yauricocha Mine include the expansion of the tailings dam and sinking of the Yauricocha shaft. At the Bolivar mine, growth will be focused around the expansion of plant capacity and the integration tunnel which will link the mine to the mill, creating efficiencies and cost reduction by eliminating truck haulage of ore to the mill. Both projects are planned for completion by the end of Q4 2022. Additionally, we are committed to continuing to grow our reserve and resource base. An intense infill drilling program is planned for the year and we expect to complete MRMR updates and include the Technical Reports for the Yauricocha and Bolivar Mines in 2022. We are optimistic that these updated reports will provide for expanded reserves and resources at the mines.”

12M 2021 Operating Highlights

Consolidated annual ore throughput of 2,902,220 tonnes, an increase of 3% over 2020, mainly driven by the higher throughputs from the Yauricocha and Cusi mines, offset by a decline in the Bolivar annual throughput.

The Yauricocha mine received its Informe Tecnico Minero (“ITM”) permit in June 2021, allowing for an operating capacity of 3,600 tpd. Achieving the maximum annual permitted capacity, throughput at Yauricocha was 1,256,847 tonnes, or an increase of 12% from the 2020 annual production.

Annual throughput of 295,771 tonnes at Cusi was 28% higher as the mine operated throughout the year, as compared to the year 2020, when almost four months of production was lost during the care and maintenance period resulting from the government mandated shutdown.

The Bolivar mine achieved annual throughput of 1,349,602 tonnes, which was 9% lower than the 2020 throughput, as the mine continued to face manpower issues such as reduced workforce due to COVID and high turnover in middle and senior management.

Consolidated copper equivalent production dropped 24% as compared to 2020 due to the aforementioned production issues at Bolivar and as higher throughput at Yauricocha could not compensate from lower grades during the year. Metal production was higher at Cusi, driven by higher throughput and grades.

Yauricocha’s cash cost per copper equivalent payable pound was $1.46 (2020 – $1.01), and AISC per copper equivalent payable pound of $2.77 (2020 – $2.11).

Bolivar’s cash cost per copper equivalent payable pound was $2.18 (2020 – $1.13), and AISC per copper equivalent payable pound was $4.22 (2020 – $1.88).

Cusi’s cash cost per silver equivalent payable ounce was $16.71 (2020 – $16.62), and AISC per silver equivalent payable ounce was $28.59 (2020 – $25.26).

Click here to review the full details of the Q4 2021 production highlights.

Q4 and 12M 2021 Financial Highlights

Revenue from metals payable of $272.0 million in 2021, an increase of 10% from 2020 annual revenue of $246.9 million. Higher revenue was largely a result of the increase in realized prices for all metals as compared to 2020;

Adjusted EBITDA(1) of $104.7 million for 2021, which is a 2% increase from the adjusted EBITDA of $102.8 million for 2020;

Net loss attributable to shareholders for 2021 was $27.4 million (2020: $23.4 million) or $(0.17) per share (basic and diluted) (2020: $0.14) Net losses for Q4 and the year ended 2021 included an impairment charge of $35.0 million related to the Cusi mine;

Adjusted net income attributable to shareholders (1) of $21.6 million, or $0.13 per share, for 2021 was lower than the adjusted net income of $30.8 million, or $0.19 per share for 2020;

Cash flow generated from operations before movements in working capital of $93.4 million for 2021 was lower than the $97.8 million in 2020, mainly due to higher G&A costs in 2021; and

Cash and cash equivalents of $34.9 million and working capital of $17.3 million as at December 31, 2021 compared to $71.5 million and $70.9 million, respectively, at the end of 2020. Cash and cash equivalents decreased during 2021 as the $70.9 million used in investing activities and $36.9 million used in financing activities exceeded cash generated from operating activities of $71.4 million.

(1) This is a non-IFRS performance measure, see Non-IFRS Performance Measures section of the MD&A.

Project Development

On August 16, 2021, the Company reported the inclusion of iron ore production in the 10,000 tonnes per day (“tpd”) Preliminary Economic Assessment (“PEA”) for its Bolivar Mine. The updated PEA indicated an incremental benefit of after-tax NPV (@8%) of $78.2 million and IRR of 69.0% versus the NPV of $57.4 million and IRR of 27.9% reported in the original PEA. A National Instrument 43-101 (“NI 43-101”) technical report was filed on SEDAR and with the U.S. Securities and Exchange Commission on September 29, 2021. Click here to review the press release containing highlights of the Bolivar PEA.

After the close of the year, the Company announced positive results of the updated PEA on expansion of its Yauricocha Mine. This updated PEA included the last reported resource dated March 31, 2021 and revised Prefeasibility Study (“PFS”) level operating and capital expenditure. The Technical Report was filed on March 3, 2022. Click here to review the press release containing highlights of the updated Yauricocha PEA.

Exploration Highlights

Peru:

  • During the year, 9,719 meters of surface exploration using diamond drills were carried out in the Kilkasca, El Estacion, Yauricocha Medio, Fortuna and Exito zones. Further, 18,509 meters of underground exploration was completed with the aim of replacing and increasing the mineral resources exploited during the year.

Mexico:

   Bolivar

  • During the year, 19,804 meters of infill drilling program was carried out at Bolivar including 13,072 meters in the El Gallo zone and 4,422 meters in the Bolivar West zone; and
  • 25,260 meters of brownfield exploration was completed in the Bolivar West and La Montura zones.

   Cusi

  • The Infill Drilling program was carried out in the NorthEast and the North-NorthWest system, with the objective to define the continuity and the grades of both systems. 21,059 meters of drilling was completed, including 4,702 meters of definition drilling into these systems with the termite rig; and
  • Brownfield exploration drilling program started at San Juan, San Antonio and Gallo Back veins and 4,703 meters of drilling was completed during the year.

IMPAIRMENT CHARGE

In Q4 2021, the Company announced its increased focus on copper and other steel-making products, including the strategic review process for the silver-producing Cusi Mine in Mexico. As part of this process, the carrying value of Cusi was reviewed. As a result, a non-cash impairment charge of $35 million was recognized for the year ended December 31, 2021.

2022 Guidance

Production Guidance

The year 2021 was a challenging year for the mining operations of the Company due to the decrease in grades at Yauricocha and Bolivar, and availability of ore, as lack of equipment and decrease in manpower impacted development mainly at the Bolivar mine. Despite the COVID related issues, operations at Yauricocha and Cusi are gradually returning to normalcy. However, the Company anticipates that the backlog of ongoing operational challenges at Bolivar will be overcome during the year, leading to much improved production starting Q3 2022. During this period, the Company’s focus will be on increasing the infill drilling and development and the expansion of the plant facility with the objective to gradually achieve an average Q4 2022 throughput rate at Bolivar of 5,600 tpd, as compared to the 3,000 tpd in Q1 2022. With addressing of these development issues in the mine and plant infrastructure expansion, a much-improved performance is anticipated in the second half of the year. In view of this, full year guidance for the year has been split into H1 and H2 2022.

A table summarizing 2022 production guidance has been provided below:

H1 2022 H2 2022 2022 Guidance
Low High Low High Low High
 
Silver (oz)

1,490,500

1,591,500

1,712,000

1,769,000

3,202,500

3,360,500
Gold (oz)

5,000

6,000

10,500

11,500

15,500

17,500
Zinc (000 lbs)

23,500

27,500

25,500

27,000

49,000

54,500
Lead (000 lbs)

8,500

9,500

8,000

8,000

16,500

17,500
Copper (000 lbs)

13,500

16,500

21,000

24,500

34,500

41,000
 
 
Copper equivalent pounds (000’s)(1)

34,000

39,500

45,500

50,100

79,500

89,700
 

(1) Copper equivalent guidance is calculated using the March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

2022 Cost Guidance

A mine by mine breakdown of 2022 production guidance, cash costs and all-in sustaining costs (“AISC”) are included in the table below. All costs are in USD. Cash costs and AISC guidance is shown per copper equivalent payable pound at Yauricocha and Bolivar, and silver equivalent payable ounce at Cusi.

Equivalent Production

Cash cost range per

AISC(2) range per

Range (1)

CuEqLb or AgEqOz

CuEqLb or AgEqOz
 
Yauricocha

Cu Eq Lbs (000s)

 45,000 – 49,000 $2.00 – $2.15 $2.90 – $3.10
Bolivar

Cu Eq Lbs (000s)

 23,800 – 29,900 $2.15 – $2.30 $3.50 – $3.85
Cusi

Ag Eq Oz (000s)

 1,750 – 1,850 $16.45 – $16.50 $22.00 – $23.00
 
 

(1) Copper equivalent guidance is calculated using the March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

(2) AISC includes treatment and refining charges, selling costs, G&A costs and sustaining capital expenditure.

2022 EBITDA Guidance

Consolidated EBITDA Guidance including corporate expenses, at consensus prices(1), is expected to be between $90.0 million and $105.0 million, which is broken down as follows:

EBITDA Range H1 2022 EBITDA Range H2 2022 Full Year EBITDA Range
(Amounts in $M) Low High Low High Low High
 
Yauricocha

22.1

 

26.2

 

30.9

 

33.8

 

53.0

 

60.0

 
Bolivar

3.3

 

5.8

 

31.7

 

36.2

 

35.0

 

42.0

 
Cusi

3.0

 

3.4

 

4.0

 

4.6

 

7.0

 

8.0

 
Corporate

(2.4

)

(2.4

)

(2.6

)

(2.6

)

(5.0

)

(5.0

)
Total

26.0

 

33.0

 

64.0

 

72.0

 

90.0

 

105.0

 
 

(1) March 2022 CIBC analyst consensus commodity price forecast: $23.68/oz Ag, $4.22/lb Cu, $1.42/lb Zn, $0.99/lb Pb, $1,789/oz Au.

2022 Capital Expenditures

A breakdown by mine of the throughput and planned capital investments is shown in the following table:

CAPEX Range (Amounts in $M)
Sustaining Growth Total
 
Yauricocha

12

17

29
Bolivar

23

10

33
Cusi

6

–

6
Greenfield Exploration

–

1

1
 
Total

41

28

69

Total sustaining capital for 2022 is expected to be $41.0 million, mainly comprising of mine development ($5.3 million), ventilation infrastructure ($2.5 million) and mine camp ($1.3 million) in Yauricocha, and infill drilling ($5.5 million), mine development ($7.2 million) and tailings dam ($6.9 million) at the Bolivar mine. The intensive infill drilling program of approximately 80,000 meters is planned for the year with the objective of increasing the reserves. Sustaining capital at Cusi is expected to be $6.0 million, including $3.0 million for mine development and the remainder for equipment replacement and tailings dam.

Growth capital for 2022 is projected at $28.0 million. Major growth projects at the Yauricocha mine include tailings dam expansion ($7.7 million), Yauricocha shaft and related integration access ($5.8 million) and exploration ($3.0 million). At the Bolivar mine, growth capital is mainly focused around the afore-mentioned expansion of plant capacity ($6.2 million) and the integration tunnel ($3.5 million), with planned completion of both projects by the end of Q3 2022.

Management will continue to review metal prices and its EBITDA performance throughout the year, while continuing to explore value enhancing opportunities. The management also retains the option to adjust the 2022 capital expenditure plan should business conditions experience any dramatic changes within the year.

Annual SEC Filing completed by Sierra Metals

Sierra Metals has completed its annual SEC filing. Copies of these documents can be found at www.sierrametals.com on the Investors Page under Financial Information. Shareholders may request a hard copy of the complete audited financial statements free of charge upon request.

Conference Call Webcast

Sierra Metals’ senior management will host a conference call on Thursday, March 17, 2022, at 11:00 AM (EDT) to discuss the Company’s financial and operating results for the three months and year ended December 31, 2021.

Via Webcast:

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

https://event.on24.com/wcc/r/3574382/FCCE4F2A0F9D10DD9ADA273BDF220BF7

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

Via phone:

For those who prefer to listen by phone, dial-in instructions are below. To ensure your participation, please call approximately five minutes prior to the scheduled start time of the call.

US/CAN dial-in number (Toll Free): 1 844 200 6205
US dial-in number (Local): 1 646 904 5544
Canada dial-in number (Local): 1 226 828 7575
All other locations: +1 929 526 1599
Participant access code: 017137

Press *1 to ask a question, *2 to withdraw your question, or *0 for operator assistance.

Quality Control

Américo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning, is a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its 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:

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 16, 2022 for its fiscal year ended December 31, 2021 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.

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.

Schwazze (SHWZ) – A New Year, A New Acquisition

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Thursday, March 17, 2022

Schwazze (SHWZ)
A New Year, A New Acquisition

Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

    Further Expansion into Colorado. Schwazze’s management announced the acquisition of Urban Health & Wellness, Inc. which includes an adult use dispensary named Urban Dispensary in the Highlands area of Denver, and a 7,200 square foot cultivation facility. This expands Schwazze further into Colorado with the total number of dispensaries now at 23 and cultivation facilities at 4. Overall, Schwazze now has 33 dispensaries and 7 cultivation facilities in Colorado and New Mexico.

    Acquisition Details.  The acquisition is for $3.2 million, $1.3 million in cash and $1.9 million in stock, and is expected to close in the second quarter of 2022. The Highlands area of Denver is a high-income neighborhood, with the average income at $105,980 vs the average income of Denver County at $88,779, according to Denver Metro Data. Near the dispensary location Schwazze has purchased, is …

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

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

 

Pangaea Logistics (PANL) – Another Strong Quarter Caps Stellar 2021

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Thursday, March 17, 2022

Pangaea Logistics (PANL)
Another Strong Quarter Caps Stellar 2021

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

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

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

    4Q2021 Results Ahead of Expectations Due to TCE Rate Out Performance. 4Q2021 EBITDA of $38.0 million was ahead of expectations mainly due to higher TCE rates of $32.6k/day and higher shipping days of 5,199. Positive variance was driven by higher TCE revenue and lower opex that more than offset higher voyage and charter hire expenses.

    Call with management today at 8am EST.  Number is 866-518-6930 and code is PANLQ421. We expect management to highlight the fleet expansion, TCE rate out performance and attractive dry bulk market fundamentals …

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

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

 

InPlay Oil (IPOOF)(IPO:CA) – Doubling Our Price Target On Higher Production And Energy Prices

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Thursday, March 17, 2022

InPlay Oil (IPOOF)(IPO:CA)
Doubling Our Price Target On Higher Production And Energy Prices

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

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

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

    Fourth-quarter and 2021 results were generally in line with expectations and previous management guidance. Adjusted funds flow rose 532% in response to higher energy prices, a 45% increase in production volumes, reduced operating costs per unit produced and lower financing costs. Management raised its guidance for AFF in 2022 to $141-$150 million from $111-117 million as it raised its assumed energy prices towards current levels. A previously-announced boost in drilling following a tuck-in acquisition last fall is coming to fruition and will help grow production in 2022.

    Higher energy prices are good but InPlay is really a story of improved operating results.  The company drilled two wells this quarter in lands acquired in the Prairie Storm acquisition and both are producing above expectations. It also drilled three wells in existing Pembina territories that are also producing above expectations. The company enters the second quarter with the drilling program six …

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

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

 

Baudax Bio (BXRX) – Fourth Quarter 2021 Reported Major Expense Reductions Announced

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Thursday, March 17, 2022

Baudax Bio (BXRX)
Fourth Quarter 2021 Reported; Major Expense Reductions Announced

Baudax Bio is a biopharmaceutical company focused on developing therapies for post-operative pain, peri-operative pain, and anesthesia. The company currently has one approved therapy in ANJESO for post-operative pain. Proprietary ANJESO (meloxicam) injection is the first and only once-daily IV analgesic. The company also has a pipeline of early-stage candidates with two novel neuromuscular blocking agents (NMBAs), a proprietary related reversal agent to their NMBAs, and Dex-IN, an intranasal formulation of dexmedetomidine (Dex) that has sedative, analgesic, and anti-anxiety properties.

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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

    4Q 2021 revenues reported. Yesterday, Baudax Bio released 4Q and FY 2021 results. Despite better-than-expected formulary wins, Covid related elective procedures remained muted in regions of the U.S. While solid, 4Q revenues of $.4 million, up 426%, missed our $0.55 million estimate. FY 2021 reported revenues of $1.08 million, up 119%, missed our $1.23 million estimate.

    Company is reducing headcount and expenses.  The company is implementing a workplace reduction plan to curtail expenses and reduce need for capital. The plan is expected to reduce headcount 80%. The company expects approximately $4.0 million in severance and related costs to be taken by end of 2Q 2022. Cash burn will be substantially reduced in 2H 2022 and beyond …

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

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

 

Energy Fuels (UUUU)(EFR:CA) – Ramp Up Is Coming Slowly But Higher Prices Could Spur Activity

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Thursday, March 17, 2022

Energy Fuels (UUUU)(EFR:CA)
Ramp Up Is Coming Slowly But Higher Prices Could Spur Activity

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.

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

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

    Energy Fuels reported 2021 results generally in line with expectations. Given limited sales, results are largely a function of costs and fairly easy to predict. UUUU reported an operating loss for the year of $35.3 million, slightly larger than our $32.4 million estimate. Net income was $1.5 million versus our estimate of $(36.4) million but if one removes a $35.7 million gain on the sale of assets, results were in line. The company’s cash and inventory positions remain strong and there is growing optimism that rising prices could lead to sales.

    Not much for developments in the last quarter, mainly a rehash of 2021’s top press releases.  Management announced that has begun separating Lanthanum and Cerium in its rare earth elements (REE) processing operations. It also announced the execution of a memorandum of understanding to develop a new technology to produce REE metals at a lower costs. Outside those announcements, the only other thing …

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

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

 

Baudax Bio (BXRX) – Fourth Quarter 2021 Reported; Major Expense Reductions Announced

Posted on by Admin

Thursday, March 17, 2022

Baudax Bio (BXRX)
Fourth Quarter 2021 Reported; Major Expense Reductions Announced

Baudax Bio is a biopharmaceutical company focused on developing therapies for post-operative pain, peri-operative pain, and anesthesia. The company currently has one approved therapy in ANJESO for post-operative pain. Proprietary ANJESO (meloxicam) injection is the first and only once-daily IV analgesic. The company also has a pipeline of early-stage candidates with two novel neuromuscular blocking agents (NMBAs), a proprietary related reversal agent to their NMBAs, and Dex-IN, an intranasal formulation of dexmedetomidine (Dex) that has sedative, analgesic, and anti-anxiety properties.

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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

    4Q 2021 revenues reported. Yesterday, Baudax Bio released 4Q and FY 2021 results. Despite better-than-expected formulary wins, Covid related elective procedures remained muted in regions of the U.S. While solid, 4Q revenues of $.4 million, up 426%, missed our $0.55 million estimate. FY 2021 reported revenues of $1.08 million, up 119%, missed our $1.23 million estimate.

    Company is reducing headcount and expenses.  The company is implementing a workplace reduction plan to curtail expenses and reduce need for capital. The plan is expected to reduce headcount 80%. The company expects approximately $4.0 million in severance and related costs to be taken by end of 2Q 2022. Cash burn will be substantially reduced in 2H 2022 and beyond …

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

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

 

Release – ProMIS Neurosciences Announces Fiscal Year 2021 Results

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ProMIS Neurosciences Announces Fiscal Year 2021 Results

News and Market Data on ProMIS Neurosciences

 

TORONTO, Ontario and CAMBRIDGE, Massachusetts , March 17, 2022 (GLOBE NEWSWIRE) — ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF) (“ProMIS” or the “Company”), a biotechnology company focused on the discovery and development of antibody therapeutics targeting misfolded proteins such as toxic oligomers, implicated in the development of neurodegenerative diseases, today announced its operational and financial results for the fiscal year ended December 31, 2021.

“2021 was an excellent year for ProMIS including strong capital formation which enabled us to advance and expand our portfolio of differentiated therapeutic product candidates such as Alzheimer’s disease (AD), ALS, and Schizophrenia,” said Gene Williams, ProMIS’ Chairman and CEO.   “We feel privileged that leading global experts continue to join our Scientific Advisory Board (SAB), accomplished executives are joining our Board of Directors, and that we have been able to supplement our strong management team, and we expect to continue those trends. We were grateful for the strong shareholder support for the resolution necessary to qualify for a potential listing on a major North American stock exchange presuming we meet the required listing standards. While biotechnology markets and specific disease sectors within biotechnology have cyclical ups and downs, we are well positioned to continue making substantive progress in our programs that could allow us to capitalize when markets rebound, as we believe they will.”

PMN310, an antibody selective for toxic oligomers in AD, is ProMIS’ lead product candidate. In the fourth quarter of 2021, the Company made significant progress on the program elements.

Producer cell line development is advancing. The genetic sequence of PMN310 has been transfected into Chinese hamster ovary (CHO) cells, the standard production cells for antibody manufacturing. We have contractually secured manufacturing slots for material to be used in Good Laboratory Practice (GLP) toxicology studies and for current Good Manufacturing Practice (cGMP) material for use in the initial clinical trials of PMN310, if allowed to proceed. In addition, we have contractually secured slots for GLP toxicology studies of various durations in nonhuman primates to support our single ascending dose/multiple ascending dose (SAD/MAD) trials. We have initiated pilot toxicology and pharmacokinetics (PK) studies to provide important information to support our GLP toxicology studies. We expect those PK studies to be completed in the second quarter of 2022. We also have secured slots for pilot and GLP tissue cross reactivity (TCR) studies, which are required for an investigational new drug (IND) application, in addition to GLP toxicology. The pilot TCR study was initiated fourth quarter of 2021 with an expected completion in second quarter 2022. Development of assays to measure drug levels in both nonhuman primate and human studies have been initiated and are expected to complete development in second quarter of 2022. Vendors have been contracted to perform these assays for our GLP studies.

In addition, in March 2022, we announced the results from a study assessing chronic systemic administration of PMN310 in a transgenic mouse model of Alzheimer’s disease, where the cognitive deficit is driven by toxic amyloid-beta oligomers. The results were positive, showing that PMN310 prevented a cognitive deficit as measured by performance in the water maze task.   

Cash expenditures for PMN310 in the six months ended December 31, 2021 were approximately $3.8 million. The largest component of this was a $2.7 million up-front and additional payments to our manufacturing vendor to secure manufacturing slots necessary for the filing of an IND and dosing of patients in our initial clinical trials. In addition, $834,000 of other external expenses and $326,000 was incurred for consulting fees of the program team, not including allocations of senior management time.

ALS Portfolio, including TAR-DNA binding protein 43 (TDP-43)

The top priority for our scientific validation efforts, largely centered in Dr. Neil Cashman’s laboratory at the University of British Columbia (UBC), is the Company’s ALS portfolio. This portfolio includes antibodies targeting misfolded forms of TDP-43, RACK1, and superoxide dismustase 1 (SOD1). TDP-43 is the focus of the PMN267 program. We are conducting both in vitro assays (assessing the impact of the drug on patient-derived motor neuron cell lines) and in vivo assays (mouse model) and expect initial data in the first half of 2022. In addition, we are exploring different therapeutic modalities in our ALS portfolio. We have disclosed data from our proof of concept work exploring “intrabody” versions of TDP-43 antibodies, a research proxy for a vectorized antibody in a gene therapy vector. We believe this therapeutic approach could enhance therapeutic benefit inside the motor neurons where misfolded TDP-43 aggregates are a root cause of disease pathology, leading to toxic misfolding of other proteins including RACK1 and SOD1. ProMIS’ capability to create highly selective antibodies is most critical in this application, since physiologically important TDP-43 is active inside the neuron and should be avoided by the intrabodies in order to reduce the possibility of harmful side effects. Based on the characterization of selected antibodies/intrabodies to date, we have declared PMN267 as our lead product candidate for the treatment of ALS. In addition, with world expert RNA scientist Dr. Michelle Hastings, ProMIS is exploring antisense oligonucleotide (ASO) therapeutic approaches, and with Dr. Justin Yerbury, is exploring protein degradation (PROTACS) approaches in ALS.

While targeting individual misfolded proteins is expected to provide a benefit, we believe an optimal disease modifying therapeutic approach to ALS may require addressing multiple misfolded protein targets (TDP-43, RACK1, and SOD1), with different modalities (antibody, gene therapy vectorized antibody, ASO, PROTAC). We are exploring the scientific interaction between therapies addressing these various targets, and our goal is to identify and develop a portfolio of complementary therapies that alone and/or together may play a significant role in effectively treating disease.

In the six months ended December 31, 2021, our total expenditures for the ALS portfolio were $299,000, not including allocations of senior management time.

Other key projects

In the six months ended December 31, 2021 we made significant progress on other key projects, in addition to our top priorities PMN310 for AD and PMN267 for ALS. We have engaged with a leading global expert in alpha synuclein to collaborate on further in vitro and in vivo validation of our potential therapies targeting alpha synuclein, both as extracellular antibodies and as intrabodies. Based on the characterization of selected antibodies to date, we have declared PMN442 as our lead alpha synuclein product candidate. Data from in vivo testing in mouse disease models are expected in the second half of 2022.

In our amyloid vaccine program, based on successful pilot work, University of Saskatchewan vaccine and infectious disease organization (VIDO) is conducting mouse studies in collaboration with ProMIS for the development of an optimized vaccine against Alzheimer’s disease, conjugating our peptide antigens to a carrier protein in formulation with an adjuvant. David Wishart, our Chief Physics Officer, and his team, are pursuing multiple novel targets including DISC1 involved in the pathogenesis of schizophrenia.

Recent Corporate Highlights

On May 12, 2021, Rudolph Tanzi, Ph.D., was appointed as the Chair of the Company’s Scientific Advisory Board (SAB). Dr. Tanzi is the Joseph P. and Rose F. Kennedy Professor of Neurology at Harvard University and Vice-Chair of Neurology, Director of the Genetics and Aging Research Unit, and Co-Director of the Henry and Allison McCance Center for Brain Health at Massachusetts General Hospital.

On May 21, 2021, the Company re-initiated the path to an IND application for PMN310 in Alzheimer’s with the start of producer cell line development. This key first step in the manufacturing of antibody therapeutics is being conducted by Selexis, SA, using its proprietary SUREtechnology Platform™.

On May 27, 2021, Dr. David Wishart, Distinguished University Professor in the Departments of Biological Sciences and Computing Science at the University of Alberta, was appointed as Chief Physics Officer.

On June 3, 2021, the Company announced that it had filed a preliminary Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec. The Prospectus, when made final, will allow the Company to make offerings of common shares, warrants, units, debt securities, subscription receipts, convertible securities or any combination thereof for up to an aggregate total of US$50 million during the 25-month period that the Prospectus is effective.

On July 2, 2021, the Company announced the voting results of its annual meeting of shareholders held on June 30, 2021, in Vancouver, British Columbia, Canada. All resolutions described in the Management Proxy Circular and placed before the meeting were approved by the shareholders.

On July 8, 2021, the Company announced that it had filed and obtained a receipt for the Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec.

On August 25, 2021, the Company announced the closing of a public offering for gross proceeds of US$20,125,000 (CDN$25,522,525).

On October 7, 2021, ProMIS announced that it would hold a special general meeting of shareholders (the “Special Meeting”) on December 1, 2021. The Company set October 18, 2021, as the record date for the Special Meeting. The purpose of the Special Meeting was to ask shareholders to grant the Board the authority, exercisable in the Board’s discretion, to consolidate (or reverse split) the Company’s issued and outstanding common shares in furtherance of a potential listing of the Company’s shares on a stock exchange in the United States, subject to meeting applicable quantitative and qualitative listing standards of such stock exchange. There can be no assurance that the Company will complete a listing on a stock exchange in the United States.

On December 2, 2021, the shareholders of the Company passed the share consolidation resolution at its special general meeting of shareholders.

On January 18, 2022, ProMIS appointed Dr. Carsten Korth to its SAB.

On January 27, 2022, ProMIS appointed Dr. Cheryl Wellington to its SAB.

On February 3, 2022, ProMIS appointed Dr. Guy Rouleau and Dr. Alain Dagher to its Scientific Advisory Board.

Financial highlights as of and for the year ended December 31, 2021, include:

  • In March 2021, the Company completed a US$7.0 million (CDN$8.7 million) private placement of unsecured convertible debentures (Debentures).

  • In August 2021, the Company raised gross proceeds of $25,522,525 ($23,426,746 net of share issuance costs).

  • On December 31, 2021, the Company had funds available for operating activities (cash, cash equivalents and short-term investments) of $21,486,042, as compared to $1,071,004 at December 31, 2020. Our cash is sufficient to finance the Company’s operations through the end of 2023.

Additions to Board of Directors

  • On May 19, 2021, the Company appointed Neil Warma, to the Company’s Board of Directors. Mr. Warma has been a healthcare entrepreneur for more than 25 years having managed and advised numerous biotechnology and pharmaceutical companies.
  • On September 1, 2021, the Company appointed Josh Mandel-Brehm to the Board of Directors. Mr. Mandel-Brehm has held various key business development and operations leadership roles at leading biotechnology companies.
  • On September 23, 2021, the Company appointed Maggie Shafmaster, JD, Ph.D., to the Board of Directors. Dr. Shafmaster has approximately 30 years of experience providing intellectual property advice to biotechnology and pharmaceutical industries.

Senior Management Team

On October 22, 2021, the Company announced the expansion of its senior management team. The following changes were announced:

  • Eugene Williams, formerly Executive Chairman, takes on the role of Chairman and Chief Executive Officer (“CEO”), with immediate effect.
  • Dr. Elliot Goldstein resigned from his current role as CEO with immediate effect and continues to support us as President and special consultant to the CEO.
  • Gavin Malenfant joined our senior management team as Chief Operating Officer. Mr. Malenfant brings more than 30 years of biopharmaceutical experience to our team, with special focus on providing expert management and oversight of drug development programs. The top priority in the near term will be to support the timely development of the PMN310 program to completion of IND enabling activities, anticipated in the second half of 2022. 

Financial Results

Results of Operations – For the years ended December 31, 2021 and 2020

The following table summarizes our results of operations for the years ended December 31, 2021 and 2020:

    Years Ended          
    December 31,          
    2021     2020     Change  
       
Revenues   $ 16,410     $ 1,787     $ 14,623  
Operating expenses                        
Research and development     6,310,299       3,183,149       3,127,150  
General and administrative     4,224,609       2,481,030       1,743,579  
Total operating expenses     10,534,908       5,664,179       4,870,729  
Loss from operations     10,518,498       5,662,392       4,856,106  
Other expense     1,265,917       –       1,265,917  
Net loss   $ 11,784,415     $ 5,662,392     $ 6,122,023  

Revenues

The increase in revenues in the year ended December 31, 2021 represent royalties received on the Company’s assays.

Research and Development

Research and development expenses consist of the following:

    Years Ended          
    December 31,          
    2021     2020     Change  
       
Direct research and development expenses by program:   $ 4,293,649     $ 976,700     $ 3,316,949    
Indirect research and development expenses:                        
Personnel related (including stock-based compensation)     812,278       1,672,145       (859,867 )  
Consulting expense     588,164       173,712       414,452    
Patent expense     557,957       344,864       213,093    
Other operating costs     58,251       15,728       42,523    
Total research and development expenses   $ 6,310,299     $ 3,183,149     $ 3,127,150    

The increase in research and development expense for the year ended December 31, 2021, compared to the year ended December 31, 2020, reflects increased costs associated with external contract research organizations for internal programs of $3,316,949 as the Company ramps up key internal programs and contract research organization costs, increased patent expense of $213,093 due to increased maintenance and filing fees, increased consulting expense of $414,452 and increase in amortization of property and equipment and intangible asset of $42,523 offset by decreased contract salaries and associated costs of $859,867 due to reduction in compensation to management and attrition of contracted staff and decreased share-based compensation of $154,015 due to forfeiture of unvested/vested share options due to termination of consulting arrangement.

General and Administrative

General and administrative expenses consist of the following:

    Years Ended December 31,          
    2021     2020     Change  
    (in thousands)  
Personnel related (including stock-based compensation)   $ 1,279,197     $ 1,191,967     $ 87,230  
Professional and consulting fees     2,801,237       1,311,427       1,489,810  
Facility-related and other     144,175       (22,364 )     166,539  
Total general and administrative expenses   $ 4,224,609     $ 2,481,030     $ 1,743,579  

The increase for the year ended December 31, 2021, compared to the same period in 2020, is primarily attributable to an increase in legal expenses of $159,113, increased other professional, legal and consulting fees of 423,378, additional one-time fees of $459,051 related to a potential listing on a stock exchange in the United States, (subject to meeting applicable quantitative and qualitative listing standards of such stock exchange), increased share-based compensation of $306,695 related to the grant of share options, expensing of share issuance costs associated with the issuance of warrants in the August 2021 financing and base shelf costs of $717,806 and foreign exchange of expense of $166,539 on U.S. denominated assets and liabilities offset by a reduction in contracted corporate salaries and associated facility costs of $219,465 due to reduction in compensation to management and attrition of contracted staff and a decreased investor relations of $332,558 due to a reduction of investor relation activities and consultants.   Note that there can be no assurance that the Company will complete a listing on a stock exchange in the United States.  

Other Expense

The increase in other expense is primarily the valuation of the derivative liability associated with the convertible debenture financing and associated interest expense of $2,990,375 offset by the decrease in fair value of the warrant liability of $1,411,467 and the gain on the sale of lab equipment of $75,198.

About ProMIS Neurosciences, Inc.

ProMIS Neurosciences, Inc. is a development stage biotechnology company focused on discovering and developing antibody therapeutics selectively targeting toxic oligomers implicated in the development and progression of neurodegenerative diseases, in particular Alzheimer’s disease (AD), amyotrophic lateral sclerosis (ALS) and Parkinson’s disease (PD). The Company’s proprietary target discovery engine is based on the use of two complementary techniques. The Company applies its thermodynamic, computational discovery platform -ProMIS™ and Collective Coordinates – to predict novel targets known as Disease Specific Epitopes on the molecular surface of misfolded proteins. Using this unique approach, the Company is developing novel antibody therapeutics for AD, ALS and PD. ProMIS is headquartered in Toronto, Ontario, with offices in Cambridge, Massachusetts. ProMIS is listed on the Toronto Stock Exchange under the symbol PMN, and on the OTCQB Venture Market under the symbol ARFXF.

Visit us at www.promisneurosciences.com, follow us on Twitter and LinkedIn

For Investor Relations please contact:
Alpine Equity Advisors
Nicholas Rigopulos, President
nick@alpineequityadv.com
Tel. 617 901-0785

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain information in this news release constitutes forward-looking statements and forward-looking information (collectively, ??”forward-looking information”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward–looking information can be identified by the ?use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, ??”is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and ?phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be ?achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or ?circumstances contain forward-looking information. ?Specifically, this news release contains forward-looking information relating to future management and Board composition of the Company; the potential listing of the Company’s shares on a stock exchange in the United States; the expectation that markets will rebound; the expected completion date of various studies and timelines for the development of assays; the potential benefits of targeting misfolded proteins; and the timing of PMN 442 in vivo testing data in mouse disease models. Statements containing forward-looking information are not historical facts but instead represent management’s current ?expectations, estimates and projections regarding the future of our business, future plans, strategies, projections, anticipated events ?and trends, the economy and other future conditions. Forward-looking information is necessarily based on a number of opinions, ?assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to ?known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, ?performance or achievements to be materially different from those expressed or implied by such forward-looking information. Important factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the factors discussed throughout the “Risk Factors” section of the Company’s most recently filed annual information form available on www.SEDAR.com. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Source: ProMIS Neurosciences Inc.

ProMIS Neurosciences Announces Fiscal Year 2021 Results

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ProMIS Neurosciences Announces Fiscal Year 2021 Results

News and Market Data on ProMIS Neurosciences

 

TORONTO, Ontario and CAMBRIDGE, Massachusetts , March 17, 2022 (GLOBE NEWSWIRE) — ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF) (“ProMIS” or the “Company”), a biotechnology company focused on the discovery and development of antibody therapeutics targeting misfolded proteins such as toxic oligomers, implicated in the development of neurodegenerative diseases, today announced its operational and financial results for the fiscal year ended December 31, 2021.

“2021 was an excellent year for ProMIS including strong capital formation which enabled us to advance and expand our portfolio of differentiated therapeutic product candidates such as Alzheimer’s disease (AD), ALS, and Schizophrenia,” said Gene Williams, ProMIS’ Chairman and CEO.   “We feel privileged that leading global experts continue to join our Scientific Advisory Board (SAB), accomplished executives are joining our Board of Directors, and that we have been able to supplement our strong management team, and we expect to continue those trends. We were grateful for the strong shareholder support for the resolution necessary to qualify for a potential listing on a major North American stock exchange presuming we meet the required listing standards. While biotechnology markets and specific disease sectors within biotechnology have cyclical ups and downs, we are well positioned to continue making substantive progress in our programs that could allow us to capitalize when markets rebound, as we believe they will.”

PMN310, an antibody selective for toxic oligomers in AD, is ProMIS’ lead product candidate. In the fourth quarter of 2021, the Company made significant progress on the program elements.

Producer cell line development is advancing. The genetic sequence of PMN310 has been transfected into Chinese hamster ovary (CHO) cells, the standard production cells for antibody manufacturing. We have contractually secured manufacturing slots for material to be used in Good Laboratory Practice (GLP) toxicology studies and for current Good Manufacturing Practice (cGMP) material for use in the initial clinical trials of PMN310, if allowed to proceed. In addition, we have contractually secured slots for GLP toxicology studies of various durations in nonhuman primates to support our single ascending dose/multiple ascending dose (SAD/MAD) trials. We have initiated pilot toxicology and pharmacokinetics (PK) studies to provide important information to support our GLP toxicology studies. We expect those PK studies to be completed in the second quarter of 2022. We also have secured slots for pilot and GLP tissue cross reactivity (TCR) studies, which are required for an investigational new drug (IND) application, in addition to GLP toxicology. The pilot TCR study was initiated fourth quarter of 2021 with an expected completion in second quarter 2022. Development of assays to measure drug levels in both nonhuman primate and human studies have been initiated and are expected to complete development in second quarter of 2022. Vendors have been contracted to perform these assays for our GLP studies.

In addition, in March 2022, we announced the results from a study assessing chronic systemic administration of PMN310 in a transgenic mouse model of Alzheimer’s disease, where the cognitive deficit is driven by toxic amyloid-beta oligomers. The results were positive, showing that PMN310 prevented a cognitive deficit as measured by performance in the water maze task.   

Cash expenditures for PMN310 in the six months ended December 31, 2021 were approximately $3.8 million. The largest component of this was a $2.7 million up-front and additional payments to our manufacturing vendor to secure manufacturing slots necessary for the filing of an IND and dosing of patients in our initial clinical trials. In addition, $834,000 of other external expenses and $326,000 was incurred for consulting fees of the program team, not including allocations of senior management time.

ALS Portfolio, including TAR-DNA binding protein 43 (TDP-43)

The top priority for our scientific validation efforts, largely centered in Dr. Neil Cashman’s laboratory at the University of British Columbia (UBC), is the Company’s ALS portfolio. This portfolio includes antibodies targeting misfolded forms of TDP-43, RACK1, and superoxide dismustase 1 (SOD1). TDP-43 is the focus of the PMN267 program. We are conducting both in vitro assays (assessing the impact of the drug on patient-derived motor neuron cell lines) and in vivo assays (mouse model) and expect initial data in the first half of 2022. In addition, we are exploring different therapeutic modalities in our ALS portfolio. We have disclosed data from our proof of concept work exploring “intrabody” versions of TDP-43 antibodies, a research proxy for a vectorized antibody in a gene therapy vector. We believe this therapeutic approach could enhance therapeutic benefit inside the motor neurons where misfolded TDP-43 aggregates are a root cause of disease pathology, leading to toxic misfolding of other proteins including RACK1 and SOD1. ProMIS’ capability to create highly selective antibodies is most critical in this application, since physiologically important TDP-43 is active inside the neuron and should be avoided by the intrabodies in order to reduce the possibility of harmful side effects. Based on the characterization of selected antibodies/intrabodies to date, we have declared PMN267 as our lead product candidate for the treatment of ALS. In addition, with world expert RNA scientist Dr. Michelle Hastings, ProMIS is exploring antisense oligonucleotide (ASO) therapeutic approaches, and with Dr. Justin Yerbury, is exploring protein degradation (PROTACS) approaches in ALS.

While targeting individual misfolded proteins is expected to provide a benefit, we believe an optimal disease modifying therapeutic approach to ALS may require addressing multiple misfolded protein targets (TDP-43, RACK1, and SOD1), with different modalities (antibody, gene therapy vectorized antibody, ASO, PROTAC). We are exploring the scientific interaction between therapies addressing these various targets, and our goal is to identify and develop a portfolio of complementary therapies that alone and/or together may play a significant role in effectively treating disease.

In the six months ended December 31, 2021, our total expenditures for the ALS portfolio were $299,000, not including allocations of senior management time.

Other key projects

In the six months ended December 31, 2021 we made significant progress on other key projects, in addition to our top priorities PMN310 for AD and PMN267 for ALS. We have engaged with a leading global expert in alpha synuclein to collaborate on further in vitro and in vivo validation of our potential therapies targeting alpha synuclein, both as extracellular antibodies and as intrabodies. Based on the characterization of selected antibodies to date, we have declared PMN442 as our lead alpha synuclein product candidate. Data from in vivo testing in mouse disease models are expected in the second half of 2022.

In our amyloid vaccine program, based on successful pilot work, University of Saskatchewan vaccine and infectious disease organization (VIDO) is conducting mouse studies in collaboration with ProMIS for the development of an optimized vaccine against Alzheimer’s disease, conjugating our peptide antigens to a carrier protein in formulation with an adjuvant. David Wishart, our Chief Physics Officer, and his team, are pursuing multiple novel targets including DISC1 involved in the pathogenesis of schizophrenia.

Recent Corporate Highlights

On May 12, 2021, Rudolph Tanzi, Ph.D., was appointed as the Chair of the Company’s Scientific Advisory Board (SAB). Dr. Tanzi is the Joseph P. and Rose F. Kennedy Professor of Neurology at Harvard University and Vice-Chair of Neurology, Director of the Genetics and Aging Research Unit, and Co-Director of the Henry and Allison McCance Center for Brain Health at Massachusetts General Hospital.

On May 21, 2021, the Company re-initiated the path to an IND application for PMN310 in Alzheimer’s with the start of producer cell line development. This key first step in the manufacturing of antibody therapeutics is being conducted by Selexis, SA, using its proprietary SUREtechnology Platform™.

On May 27, 2021, Dr. David Wishart, Distinguished University Professor in the Departments of Biological Sciences and Computing Science at the University of Alberta, was appointed as Chief Physics Officer.

On June 3, 2021, the Company announced that it had filed a preliminary Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec. The Prospectus, when made final, will allow the Company to make offerings of common shares, warrants, units, debt securities, subscription receipts, convertible securities or any combination thereof for up to an aggregate total of US$50 million during the 25-month period that the Prospectus is effective.

On July 2, 2021, the Company announced the voting results of its annual meeting of shareholders held on June 30, 2021, in Vancouver, British Columbia, Canada. All resolutions described in the Management Proxy Circular and placed before the meeting were approved by the shareholders.

On July 8, 2021, the Company announced that it had filed and obtained a receipt for the Prospectus with the securities regulators in each of the provinces and territories of Canada, except Quebec.

On August 25, 2021, the Company announced the closing of a public offering for gross proceeds of US$20,125,000 (CDN$25,522,525).

On October 7, 2021, ProMIS announced that it would hold a special general meeting of shareholders (the “Special Meeting”) on December 1, 2021. The Company set October 18, 2021, as the record date for the Special Meeting. The purpose of the Special Meeting was to ask shareholders to grant the Board the authority, exercisable in the Board’s discretion, to consolidate (or reverse split) the Company’s issued and outstanding common shares in furtherance of a potential listing of the Company’s shares on a stock exchange in the United States, subject to meeting applicable quantitative and qualitative listing standards of such stock exchange. There can be no assurance that the Company will complete a listing on a stock exchange in the United States.

On December 2, 2021, the shareholders of the Company passed the share consolidation resolution at its special general meeting of shareholders.

On January 18, 2022, ProMIS appointed Dr. Carsten Korth to its SAB.

On January 27, 2022, ProMIS appointed Dr. Cheryl Wellington to its SAB.

On February 3, 2022, ProMIS appointed Dr. Guy Rouleau and Dr. Alain Dagher to its Scientific Advisory Board.

Financial highlights as of and for the year ended December 31, 2021, include:

  • In March 2021, the Company completed a US$7.0 million (CDN$8.7 million) private placement of unsecured convertible debentures (Debentures).

  • In August 2021, the Company raised gross proceeds of $25,522,525 ($23,426,746 net of share issuance costs).

  • On December 31, 2021, the Company had funds available for operating activities (cash, cash equivalents and short-term investments) of $21,486,042, as compared to $1,071,004 at December 31, 2020. Our cash is sufficient to finance the Company’s operations through the end of 2023.

Additions to Board of Directors

  • On May 19, 2021, the Company appointed Neil Warma, to the Company’s Board of Directors. Mr. Warma has been a healthcare entrepreneur for more than 25 years having managed and advised numerous biotechnology and pharmaceutical companies.
  • On September 1, 2021, the Company appointed Josh Mandel-Brehm to the Board of Directors. Mr. Mandel-Brehm has held various key business development and operations leadership roles at leading biotechnology companies.
  • On September 23, 2021, the Company appointed Maggie Shafmaster, JD, Ph.D., to the Board of Directors. Dr. Shafmaster has approximately 30 years of experience providing intellectual property advice to biotechnology and pharmaceutical industries.

Senior Management Team

On October 22, 2021, the Company announced the expansion of its senior management team. The following changes were announced:

  • Eugene Williams, formerly Executive Chairman, takes on the role of Chairman and Chief Executive Officer (“CEO”), with immediate effect.
  • Dr. Elliot Goldstein resigned from his current role as CEO with immediate effect and continues to support us as President and special consultant to the CEO.
  • Gavin Malenfant joined our senior management team as Chief Operating Officer. Mr. Malenfant brings more than 30 years of biopharmaceutical experience to our team, with special focus on providing expert management and oversight of drug development programs. The top priority in the near term will be to support the timely development of the PMN310 program to completion of IND enabling activities, anticipated in the second half of 2022. 

Financial Results

Results of Operations – For the years ended December 31, 2021 and 2020

The following table summarizes our results of operations for the years ended December 31, 2021 and 2020:

    Years Ended          
    December 31,          
    2021     2020     Change  
       
Revenues   $ 16,410     $ 1,787     $ 14,623  
Operating expenses                        
Research and development     6,310,299       3,183,149       3,127,150  
General and administrative     4,224,609       2,481,030       1,743,579  
Total operating expenses     10,534,908       5,664,179       4,870,729  
Loss from operations     10,518,498       5,662,392       4,856,106  
Other expense     1,265,917       –       1,265,917  
Net loss   $ 11,784,415     $ 5,662,392     $ 6,122,023  

Revenues

The increase in revenues in the year ended December 31, 2021 represent royalties received on the Company’s assays.

Research and Development

Research and development expenses consist of the following:

    Years Ended          
    December 31,          
    2021     2020     Change  
       
Direct research and development expenses by program:   $ 4,293,649     $ 976,700     $ 3,316,949    
Indirect research and development expenses:                        
Personnel related (including stock-based compensation)     812,278       1,672,145       (859,867 )  
Consulting expense     588,164       173,712       414,452    
Patent expense     557,957       344,864       213,093    
Other operating costs     58,251       15,728       42,523    
Total research and development expenses   $ 6,310,299     $ 3,183,149     $ 3,127,150    

The increase in research and development expense for the year ended December 31, 2021, compared to the year ended December 31, 2020, reflects increased costs associated with external contract research organizations for internal programs of $3,316,949 as the Company ramps up key internal programs and contract research organization costs, increased patent expense of $213,093 due to increased maintenance and filing fees, increased consulting expense of $414,452 and increase in amortization of property and equipment and intangible asset of $42,523 offset by decreased contract salaries and associated costs of $859,867 due to reduction in compensation to management and attrition of contracted staff and decreased share-based compensation of $154,015 due to forfeiture of unvested/vested share options due to termination of consulting arrangement.

General and Administrative

General and administrative expenses consist of the following:

    Years Ended December 31,          
    2021     2020     Change  
    (in thousands)  
Personnel related (including stock-based compensation)   $ 1,279,197     $ 1,191,967     $ 87,230  
Professional and consulting fees     2,801,237       1,311,427       1,489,810  
Facility-related and other     144,175       (22,364 )     166,539  
Total general and administrative expenses   $ 4,224,609     $ 2,481,030     $ 1,743,579  

The increase for the year ended December 31, 2021, compared to the same period in 2020, is primarily attributable to an increase in legal expenses of $159,113, increased other professional, legal and consulting fees of 423,378, additional one-time fees of $459,051 related to a potential listing on a stock exchange in the United States, (subject to meeting applicable quantitative and qualitative listing standards of such stock exchange), increased share-based compensation of $306,695 related to the grant of share options, expensing of share issuance costs associated with the issuance of warrants in the August 2021 financing and base shelf costs of $717,806 and foreign exchange of expense of $166,539 on U.S. denominated assets and liabilities offset by a reduction in contracted corporate salaries and associated facility costs of $219,465 due to reduction in compensation to management and attrition of contracted staff and a decreased investor relations of $332,558 due to a reduction of investor relation activities and consultants.   Note that there can be no assurance that the Company will complete a listing on a stock exchange in the United States.  

Other Expense

The increase in other expense is primarily the valuation of the derivative liability associated with the convertible debenture financing and associated interest expense of $2,990,375 offset by the decrease in fair value of the warrant liability of $1,411,467 and the gain on the sale of lab equipment of $75,198.

About ProMIS Neurosciences, Inc.

ProMIS Neurosciences, Inc. is a development stage biotechnology company focused on discovering and developing antibody therapeutics selectively targeting toxic oligomers implicated in the development and progression of neurodegenerative diseases, in particular Alzheimer’s disease (AD), amyotrophic lateral sclerosis (ALS) and Parkinson’s disease (PD). The Company’s proprietary target discovery engine is based on the use of two complementary techniques. The Company applies its thermodynamic, computational discovery platform -ProMIS™ and Collective Coordinates – to predict novel targets known as Disease Specific Epitopes on the molecular surface of misfolded proteins. Using this unique approach, the Company is developing novel antibody therapeutics for AD, ALS and PD. ProMIS is headquartered in Toronto, Ontario, with offices in Cambridge, Massachusetts. ProMIS is listed on the Toronto Stock Exchange under the symbol PMN, and on the OTCQB Venture Market under the symbol ARFXF.

Visit us at www.promisneurosciences.com, follow us on Twitter and LinkedIn

For Investor Relations please contact:
Alpine Equity Advisors
Nicholas Rigopulos, President
nick@alpineequityadv.com
Tel. 617 901-0785

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain information in this news release constitutes forward-looking statements and forward-looking information (collectively, ??”forward-looking information”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward–looking information can be identified by the ?use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, ??”is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and ?phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be ?achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or ?circumstances contain forward-looking information. ?Specifically, this news release contains forward-looking information relating to future management and Board composition of the Company; the potential listing of the Company’s shares on a stock exchange in the United States; the expectation that markets will rebound; the expected completion date of various studies and timelines for the development of assays; the potential benefits of targeting misfolded proteins; and the timing of PMN 442 in vivo testing data in mouse disease models. Statements containing forward-looking information are not historical facts but instead represent management’s current ?expectations, estimates and projections regarding the future of our business, future plans, strategies, projections, anticipated events ?and trends, the economy and other future conditions. Forward-looking information is necessarily based on a number of opinions, ?assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to ?known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, ?performance or achievements to be materially different from those expressed or implied by such forward-looking information. Important factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking information include, among others, the factors discussed throughout the “Risk Factors” section of the Company’s most recently filed annual information form available on www.SEDAR.com. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Source: ProMIS Neurosciences Inc.

Release -Schwazze Signs Definitive Documents To Acquire Assets Of Urban Health Wellness Inc.

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Schwazze Signs Definitive Documents To Acquire Assets Of Urban Health & Wellness, Inc.

Research, News, and Market Data on Schwazze

 

DENVER, March 16, 2022 /CNW/ – Schwazze, (OTCQX: SHWZ) (“Schwazze” or the “Company”), announced that it has signed definitive documents to acquire all the assets of Urban Health & Wellness, Inc. (“Urban”). The proposed transaction includes the adult use Urban Dispensary, located at West 38th Avenue and Clay Street, in Denver’s vibrant Highlands neighborhood as well as a 7,200 square foot indoor cultivation facility (2,700 square feet of canopy) located in Denver, Colorado. This purchase continues Schwazze’s aggressive expansion in Colorado and upon close will bring the Company’s total number of Colorado dispensaries to 23 and grow facilities to four.

The consideration for the proposed acquisition is US$3.2 million and will be paid as $1.3M cash and $1.9M stock at closing. The acquisition is expected to close in the second quarter of 2022 after the Colorado Marijuana Enforcement Division and local licensing approval.

“We look forward to the addition of the Urban group, including the strategically located Urban Dispensary and its Denver grow facility to our expanding pipeline of assets in Colorado. Delivering our brands and our excellent customer service into new neighborhoods is a Schwazze hallmark as we continue to go deep in the state. We also look forward to welcoming the Urban team to our growing Schwazze family,” said Nirup Krishnamurthy, Schwazze’s COO.    

Since April 2020, Schwazze has acquired or announced the planned acquisition of 33 cannabis dispensaries as well as seven cultivation facilities and two manufacturing assets in Colorado and New Mexico. In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.

About Schwazze
Schwazze (OTCQX: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,” “continue,” “predicts,” or similar words. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses, including the acquisition described in this press release, and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, and (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

SOURCE Schwazze

Release – BioSig Technologies Inc. Appoints John Sieckhaus as Chief Operating Officer

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BioSig Technologies, Inc. Appoints John Sieckhaus as Chief Operating Officer

News and Market Data on BioSig Technologies

 

Seasoned electrophysiology commercial leader joins the Company to expand operating capabilities

Westport, CT, March 16, 2022 (GLOBE NEWSWIRE) — BioSig Technologies, Inc. (Nasdaq: BSGM) (“BioSig” or the “Company”), a medical technology company commercializing an innovative signal processing platform designed to improve signal fidelity and uncover the full range of ECG and intra-cardiac signals, today announced the appointment of John Sieckhaus as Chief Operating Officer.

Mr. Sieckhaus brings to the Company 30 years in the healthcare industry, including 21 years at St. Jude Medical and Abbott Laboratories [NYSE: ABT]. During his tenure with St. Jude Medical, Mr. Sieckhaus held commercial leadership positions of rising responsibility, including U.S. National Sales Leader, Senior Vice President & General Manager when he led sales and customer relationship management activities in the United States across all cardiovascular product lines.   Mr. Sieckhaus’s experience in building and leading high-performance teams, in addition to integrating multiple new and novel technologies and introducing them commercially, led to significant revenue growth for St. Jude Medical over his career. Most recently, Mr. Sieckhaus held the position of Vice President – Field Clinical Affairs for Abbott for the United States and CALA, where he created a world-class field clinical and monitoring team to support clinical trials across multiple business units within Abbott’s Cardiovascular portfolio. Mr. Sieckhaus holds a Bachelor of Science degree in Biomedical Engineering from Johns Hopkins University.

“I am very excited to join this team and look forward to building upon the foundation of the PURE EP™ system and its capabilities. Focusing in the area of electrophysiology by providing better solutions in identifying and treating complex arrhythmias for our clinical customers and patients will be extremely rewarding,” commented Mr. Sieckhaus

“We are pleased to welcome John to the team as we build toward a national rollout of our leading product, PURE EP ™. John’s leadership experience in the electrophysiology space and his impressive track record in capturing and growing market share in the U.S.  is well-aligned with our mission to bring our signal processing technology to as many hospitals as possible in the coming years. John will join Gray Fleming in helping run and grow our business while attracting additional talent to the Company,” commented Kenneth L. Londoner, Chairman and CEO of BioSig Technologies, Inc.

The PURE EP™ is an FDA 510(k) cleared non-invasive class II device that aims to drive procedural efficiency and efficacy in cardiac electrophysiology. To date, 75 physicians have completed more than 2150 patient cases with the PURE EP™ System.

Clinical data acquired by the PURE EP™ System in a multi-center study at Texas Cardiac Arrhythmia Institute at St. David’s Medical Center, Mayo Clinic Jacksonville, and Massachusetts General Hospital was recently published in the Journal of Cardiovascular Electrophysiology and is available electronically with open access via the Wiley Online Library. Study results showed 93% consensus across the blinded reviewers with a 75% overall improvement in intracardiac signal quality and confidence in interpreting PURE EP™  signals over conventional sources.

About BioSig Technologies
BioSig Technologies is a medical technology company commercializing a proprietary biomedical signal processing platform designed to improve signal fidelity and uncover the full range of ECG and intra-cardiac signals (www.biosig.com).

The Company’s first product, PURE EP™ System is a computerized system intended for acquiring, digitizing, amplifying, filtering, measuring and calculating, displaying, recording, and storing electrocardiographic and intracardiac signals for patients undergoing electrophysiology (EP) procedures in an EP laboratory.

Forward-looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward- looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the geographic, social and economic impact of COVID-19 on our ability to conduct our business and raise capital in the future when needed, (ii) our inability to manufacture our products and product candidates on a commercial scale on our own, or in collaboration with third parties; (iii) difficulties in obtaining financing on commercially reasonable terms; (iv) changes in the size and nature of our competition; (v) loss of one or more key executives or scientists; and (vi) difficulties in securing regulatory approval to market our products and product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.


Andrew Ballou
BioSig Technologies, Inc.
Vice President, Investor Relations
55 Greens Farms Road
Westport, CT 06880
aballou@biosigtech.com
203-409-5444, x133

Source: BioSig Technologies, Inc.

What is Fed Tightening

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What it Means When the Federal Reserve Bank Tightens Monetary Policy

 

When the US Federal Reserve expects that the economy is growing at a pace that may cause inflation above its target, it will try to slow the pace of growth, perhaps even cause a contraction of growth.

Tightening or tighter Fed monetary policy sometimes referred to as “taking the punch bowl away,” is implemented by the Fed by its own transactions in the bond market. The most common form of tightening involves the Fed selling bonds. These are secondary issues they purchased when “easing.”

Selling bonds takes money out of the hands of businesses and individuals and increases the float of bonds. This drives up rates as there is less money in the economy and more bonds competing for it – money is tighter across the economy.

Interest rates rise as a result of fewer dollars/more bonds money in the system, so the price of it (interest rates) increases. Increased rates, or more expensive money, causes fewer transactions. The decrease in transactions has a reverse snowball effect that shrinks growth.

The main interest rate that the Federal Reserve tries to impact has historically been the overnight rate that banks use to lend to each other to satisfy imbalances through the banking system at the end of the day. This overnight rate called the Fed Funds rate impacts rates (yields) in longer maturities. So While the Fed may tighten by 0.25% or 25 basis points, for overnight loans, this increase can impact longer maturities in the same direction, but not necessarily the same magnitude.

How this Works

The impact of fewer dollars chasing the same goods with a higher cost to borrow is lower economic activity. An example from just one segment of the market is housing: , if mortgage rates rise, fewer homes are sold, fewer homes cause fewer people decorating or renovating, fewer purchases equates to fewer needs for businesses to hire to manufacture, ship or sell goods. Lower employment needs create less stress on the wage component of inflation. There is also less stress on manufacturing inputs like materials. Shipping experiences reduced demand and may adopt more competitive pricing.

Overall the above chain reaction occurs in most industries as money becomes tighter and therefore more valuable. More valuable dollars is the opposite of inflation which reduces the dollars ability to purchase goods or services.

 

When Would a Central Bank Use Tight Monetary Policy?

The Fed has two primary goals when it comes to U.S. monetary policy: maximum employment and price stability.

When it comes to price stability, the long-run goal for average inflation is stated as 2%. When the outlook for average inflation is higher than 2%, the Federal Reserve will look to enact tight monetary policy. When inflation is persistently higher, the Fed will balance a tighter policy for the purpose of price stability with maximum employment.

 

 

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