Month: March 2022

Will the Chinese Yuan Disrupt US Dollar Investments and Cause Inflation

Posted on by Admin 


Image Credit: Image: Frankieleon (Flickr)


A Changing Dollar Value Impacts Investment Returns and US Inflation

 

In his upcoming book, “Bonfire of the Sanities,” author and investment advisor David Wright warns that “actions have consequences” and that the move toward electric vehicles and the progression to eliminate reliance on fossil fuels could weaken the US dollar. In recent weeks his warnings are heightened by reports that China has been in discussions with Saudi Arabia to price barrels of oil in something other than dollars, in this case, the Chinese Yuan. If successful, how would US dollar-denominated investments fare?

Background

When the US took its currency off the gold
standard in the 1970s, it negotiated to tie greenbacks to energy in that most oil around the globe is bought and sold in US dollars. This, in effect, made dollars backed by oil, (petrodollars) and added constant demand for greenbacks which helped its strength relative to other currencies.

When the US imposed sanctions on Russian foreign currency holdings, the power and risks of relying on the US currency did not go unnoticed by other nations. China as reported recently took steps to have oil denominated in its own currency, the Yuan, which would likely add to higher demand for the Yuan while reducing demand for dollars. If China’s Yuan is “upgraded” in the world, it could in effect be seen as a downgrade to the US dollar.  It could also cause a devaluation that translates into more inflationary
pressures and a reduced desire to own US assets, including stocks. Imports, especially from China could cost more.

Further impacting the dollar’s dominance, in recent weeks, Russia and India entered talks to enact a Ruble/Rupee exchange ledger for transactions. Moscow has also said Europe would have to use Rubles to pay for its natural gas and that it may consider Bitcoin as well.  Fewer global transactions are taking place in dollars.

 

Potential Impact

Baizhu Chen a professor in the Clinical Finance and Business Economics department at the University of Southern California is quoted in Business Insider as saying, “The use of Chinese currency will inevitably expand and play a much bigger role in the world.” Chen explained, “Some countries feel their economies could be held hostage to US policies because the dollar is dominant, and countries want to diversify their risk.” So, while reduced demand for oil could play a role in valuation, current policies that use dollar-denominated finances have caused eyes to open to the risks of not diversifying currency use in financial dealings.

The Yuan has been gaining popularity. Approximately 70 central banks hold some yuan as a reserve currency, while many African and Middle Eastern nations have adopted it for transactions. Central banks, according to the International Monetary Fund (IMF), have been diversifying their holdings, and reducing the dollar’s share of global reserves.

“Were the dollar to lose its status as the world’s reserve currency, it would raise interest rates for our historically large debt relative to the economy,” warned Tomas Philipson, former Acting Chairman for the White House Council of Economic Advisers. This of course causes concern as it would mean US consumers and businesses would face higher borrowing costs along with higher import prices.  

 

Current Status

For now, greenbacks comprise 60% of global reserves versus the yuan’s 2.5%. In global payments, the dollar accounts for 40% while the yuan has about 3%, even though China is the second-largest economy, trailing closely behind the US, Philipson said. That could change, but it would take massive reforms.

 

A More Competitive Yuan

China would have to open up its market and relax controls, according to Baizhu Chen. He noted that historically, no currency that has had heavy-handed control has become one of the dominant global reserve currencies.  China would also need to refrain from currency manipulation. This takes place now in the form of devaluing the yuan to boost exports, according to Chen. This could be facilitated by allowing for an independent central bank with transparent decision-making.

In addition, the yuan must become as stable, reliable, and trustworthy as the dollar. “Countries generally trust that the US isn’t going to screw up. But whether the yuan could be perceived as a store of value — a safe haven during uncertainty or war — that is a much more difficult thing,” Chen said.

The current trend in China has been more control, not less. There have been signs that the government will ease up on its recent tech sector crackdown – the market (Chinese stocks) reacted positively. It’s uncertain whether this will lead toward more easing of control.

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

https://www.imf.org/en/Publications/WEO/Issues/2022/01/25/world-economic-outlook-update-january-2022

https://www.imf.org/en/publications/weo

https://wrightfinancialgroup.com/resources/newsletter

https://markets.businessinsider.com/news/currencies/dollar-vs-yuan-china-currency-global-reserves-central-banks-russia-2022-3?utm_medium=ingest&utm_source=markets

 

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Precious Metals Seem to be Ignoring the Feds Message

Posted on by Admin 



Image credit: Michael Steinberg (Pexels)


Wake Up, Gold Market! Otherwise Inflation Will Step on You

 

The Fed’s hawkish alerts seem like a voice in the wilderness to gold investors. However, a carefree attitude can backfire on them – in just a few months.

An epic battle is unfolding across the financial markets as the Fed warns investors about its looming rate hike cycle and the latter ignores the ramifications. However, with perpetually higher asset prices only exacerbating the Fed’s inflationary conundrum, a profound shift in sentiment will likely occur over the next few months.

The Fed has turned the hawkish dial up to 100. Yet, it’s remarkable how much the precious metal’s domestic fundamental outlooks have deteriorated in recent weeks. Yet, prices remain elevated, investors remain sanguine, and the bullish bands continue to play.

However, with inflation still rising and the Fed done playing games, the next few months should elicit plenty of fireworks. For example, with another deputy sounding the hawkish alarm, San Francisco Fed President Mary Daly said on Mar. 22: “Inflation has persisted for long enough that people are starting to wonder how long it will persist. I’m already focused on making sure this doesn’t get embedded and we see those longer-term inflation expectations drift up.”

As a result, Daly wants to ensure that the “main risk” to the U.S. economy doesn’t end up causing a recession.

 

“Even though we have these uncertainties around Ukraine, and we have uncertainties around the pandemic, it’ still time to tighten policy in the United States,” Daly said at a Brookings Institute event. “marching” rates up to the neutral level and perhaps even higher to a level that would restrict the economy to ensure inflation comes down.

            Reuters

 

Likewise, St. Louis Fed President James Bullard reiterated his position on Mar. 22, telling Bloomberg that “faster is better,” and that “the 1994 tightening cycle or removal of accommodation cycle is probably the best analogy here.”

 

“The Fed needs to move aggressively to keep inflation under control.” Bullard said in an interview Tuesday on Bloomberg Television with Michael McKee. “We need to get to neutral at least so we’re not putting upward pressure on inflation during this period when we have much higher inflation than we’re used to in the U.S.”

            Bloomberg


Falling on Deaf Ears

To that point, while investors seem to think that the Fed can vastly restrict monetary policy without disrupting a healthy U.S. economy, a major surprise could be on the horizon. For example, the futures market has now priced in nearly 10 rate hikes by the Fed in 2022. As a result, should we expect the hawkish developments to unfold without a hitch?

 

 

To explain, the light blue, dark blue, and pink lines above track the number of rate hikes expected by the Fed, BoE, and ECB. If you analyze the right side of the chart, you can see that the light blue line has risen sharply over the last several days and months. For your reference, if you focus your attention on the material underperformance of the pink line, you can see why I’ve been so bearish on the EUR/USD for so long.

Also noteworthy, have a look at the U.S. 2-Year Treasury yield minus the German 2-Year Bond yield spread. If you analyze the rapid rise on the right side of the chart below, you can see how much short-term U.S. yields have outperformed their European counterparts in 2021/2022.

 


Source: Bloomberg

More importantly, though, with Fed officials’ recent rhetoric encouraging more hawkish re-pricing instead of talking down expectations (like the ECB), they want investors to slow their roll. However, investors are now fighting the Fed, and the epic battle will likely lead to profound disappointment over the medium term.

Case in point: when Fed officials dial up the hawkish rhetoric, their “messaging” is supposed to shift investors’ expectations. As such, the threat of raising interest rates is often as impactful as actually doing it. However, when investors don’t listen, the Fed has to turn the hawkish dial up even more. If history is any indication, a calamity will eventually unfold.

 

 

To explain, the blue line above tracks the U.S. federal funds rate, while the various circles and notations above track the global crises that erupted during the Fed’s rate hike cycles. As a result, standard tightening periods often result in immense volatility.

However, with investors refusing to let asset prices fall, they’re forcing the Fed to accelerate its rate hikes to achieve its desired outcome (calm inflation). As such, the next several months could be a rate hike cycle on steroids.

To that point, with Fed Chairman Jerome Powell dropping the hawkish hammer on Mar. 21, I noted his response to a question about inflation calming in the second half of 2022. I wrote on Mar. 22:

“That story has already fallen apart. To the extent it continues to fall apart, my colleagues and I may well reach the conclusion we’ll need to move more quickly and, if so, we’ll do so.”

To that point, Powell said that “there’s excess demand” and that “the economy is very strong and is well-positioned to handle tighter monetary policy.” As a result, while investors seem to think that Powell’s bluffing, enlightenment will likely materialize over the next few months.

 

“The labor market is very strong, and inflation is much too high,” Powell told a National Association for Business Economics Conference. “There is an obvious need to move expeditiously to return the stance of monetary policy to a more neutral level, and then to move to more restrictive levels if that is what is required to restore price stability.”

In particular he added, “if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting, we will do so.”

           

Reuters

Furthermore, with Goldman Sachs economists noting the shift in tone from “steadily” in January to “expeditiously” on Mar. 21, they also upped their hawkish expectations. They wrote:

“We are now forecasting 50bp hikes at both the May and June meetings (vs. 25bp at each meeting previously). The level of the funds rate would still be low at 0.75-1% after a 50bp hike in May, and if the FOMC is open to moving in larger steps, then we think it would see a second 50bp hike in June as appropriate under our forecasted inflation path.”

“After the two 50bp moves, we expect the FOMC to move back to 25bp rate hikes at the four remaining meetings in the back half of 2022, and to then further slow the pace next year by delivering three quarterly hikes in 2023Q1-Q3. We have left our forecast of the terminal rate unchanged at 3-3.25%, as shown in Exhibit 1.”

 

 

In addition, this doesn’t account for the Fed’s willingness to sell assets on its balance sheet. For context, Powell said on Mar. 16 that quantitative tightening (QT) should occur sometime in the summer and that shrinking the balance sheet “might be the equivalent of another rate increase.” As a result, investors’ lack of preparedness for what should unfold over the next few months has been something to behold. However, the reality check will likely elicit a major shift in sentiment.

 

In contrast, the bond market heard Powell’s message loud and clear, and with the U.S. 10-Year Treasury yield hitting another 2022 high of ~2.38% on Mar. 22, the entire U.S. yield curve is paying attention.

 

 Investing.com

Finally, the Richmond Fed released its Fifth District Survey of Manufacturing Activity on Mar. 22. With the headline index increasing from 1 in February to 13 in March, the report cited “increases in all three of the component indexes – shipments, volume of new orders, and number of employees.” 

Moreover, the prices received index increased month-over-month (MoM) in March (the red box below), while future six-month expectations for prices paid and received also increased (the blue box below). As a result, inflation trends are not moving in the Fed’s desired direction.

 

 Richmond Fed

Likewise, the Richmond Fed also released its Fifth District Survey of Service Sector Activity on Mar. 22, and while the headline index decreased from 13 in February to -3 in March, current and future six-month inflationary pressures/expectations rose MoM.

 

Richmond Fed

The bottom line? While the Fed is screaming at the financial markets to tone it down to help calm inflation, investors aren’t listening. With higher prices resulting in more hawkish rhetoric and policy, the Fed should keep amplifying its message until investors finally take note. If not, inflation will continue its ascent until demand destruction unfolds and the U.S. slips into a recession. As such, if investors assume that several rate hikes will commence over the next several months with little or no volatility in between, they’re likely in for a major surprise.

Summation

Precious metals declined on Mar. 22, as the sentiment seesaw continued. However, as noted, it’s remarkable how much the metals domestic fundamental outlooks have deteriorated in recent weeks. Thus, while the Russia-Ukraine conflict keeps them uplifted, for now, the Fed’s inflation problem is nowhere near an acceptable level. As a result, when investors finally realize that a much tougher macroeconomic environment confronts them over the next few months, the shift in sentiment will likely culminate in sharp drawdowns.

 

About the Author:  Przemyslaw
Radomski, CFA  (PR) writes for and publishes articles that underscore his disposition of being passionately curious about markets behavior. He uses his statistical and financial background to question the common views and profit on the misconceptions.


Suggested Reading



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What is the Yield Curve?

What is Fed Tightening?

 

Stay up to date. Follow us:

 

Precious Metals Seem to be Ignoring the Fed’s Message

Posted on by Admin 



Image credit: Michael Steinberg (Pexels)


Wake Up, Gold Market! Otherwise Inflation Will Step on You

 

The Fed’s hawkish alerts seem like a voice in the wilderness to gold investors. However, a carefree attitude can backfire on them – in just a few months.

An epic battle is unfolding across the financial markets as the Fed warns investors about its looming rate hike cycle and the latter ignores the ramifications. However, with perpetually higher asset prices only exacerbating the Fed’s inflationary conundrum, a profound shift in sentiment will likely occur over the next few months.

The Fed has turned the hawkish dial up to 100. Yet, it’s remarkable how much the precious metal’s domestic fundamental outlooks have deteriorated in recent weeks. Yet, prices remain elevated, investors remain sanguine, and the bullish bands continue to play.

However, with inflation still rising and the Fed done playing games, the next few months should elicit plenty of fireworks. For example, with another deputy sounding the hawkish alarm, San Francisco Fed President Mary Daly said on Mar. 22: “Inflation has persisted for long enough that people are starting to wonder how long it will persist. I’m already focused on making sure this doesn’t get embedded and we see those longer-term inflation expectations drift up.”

As a result, Daly wants to ensure that the “main risk” to the U.S. economy doesn’t end up causing a recession.

 

“Even though we have these uncertainties around Ukraine, and we have uncertainties around the pandemic, it’ still time to tighten policy in the United States,” Daly said at a Brookings Institute event. “marching” rates up to the neutral level and perhaps even higher to a level that would restrict the economy to ensure inflation comes down.

            Reuters

 

Likewise, St. Louis Fed President James Bullard reiterated his position on Mar. 22, telling Bloomberg that “faster is better,” and that “the 1994 tightening cycle or removal of accommodation cycle is probably the best analogy here.”

 

“The Fed needs to move aggressively to keep inflation under control.” Bullard said in an interview Tuesday on Bloomberg Television with Michael McKee. “We need to get to neutral at least so we’re not putting upward pressure on inflation during this period when we have much higher inflation than we’re used to in the U.S.”

            Bloomberg


Falling on Deaf Ears

To that point, while investors seem to think that the Fed can vastly restrict monetary policy without disrupting a healthy U.S. economy, a major surprise could be on the horizon. For example, the futures market has now priced in nearly 10 rate hikes by the Fed in 2022. As a result, should we expect the hawkish developments to unfold without a hitch?

 

 

To explain, the light blue, dark blue, and pink lines above track the number of rate hikes expected by the Fed, BoE, and ECB. If you analyze the right side of the chart, you can see that the light blue line has risen sharply over the last several days and months. For your reference, if you focus your attention on the material underperformance of the pink line, you can see why I’ve been so bearish on the EUR/USD for so long.

Also noteworthy, have a look at the U.S. 2-Year Treasury yield minus the German 2-Year Bond yield spread. If you analyze the rapid rise on the right side of the chart below, you can see how much short-term U.S. yields have outperformed their European counterparts in 2021/2022.

 


Source: Bloomberg

More importantly, though, with Fed officials’ recent rhetoric encouraging more hawkish re-pricing instead of talking down expectations (like the ECB), they want investors to slow their roll. However, investors are now fighting the Fed, and the epic battle will likely lead to profound disappointment over the medium term.

Case in point: when Fed officials dial up the hawkish rhetoric, their “messaging” is supposed to shift investors’ expectations. As such, the threat of raising interest rates is often as impactful as actually doing it. However, when investors don’t listen, the Fed has to turn the hawkish dial up even more. If history is any indication, a calamity will eventually unfold.

 

 

To explain, the blue line above tracks the U.S. federal funds rate, while the various circles and notations above track the global crises that erupted during the Fed’s rate hike cycles. As a result, standard tightening periods often result in immense volatility.

However, with investors refusing to let asset prices fall, they’re forcing the Fed to accelerate its rate hikes to achieve its desired outcome (calm inflation). As such, the next several months could be a rate hike cycle on steroids.

To that point, with Fed Chairman Jerome Powell dropping the hawkish hammer on Mar. 21, I noted his response to a question about inflation calming in the second half of 2022. I wrote on Mar. 22:

“That story has already fallen apart. To the extent it continues to fall apart, my colleagues and I may well reach the conclusion we’ll need to move more quickly and, if so, we’ll do so.”

To that point, Powell said that “there’s excess demand” and that “the economy is very strong and is well-positioned to handle tighter monetary policy.” As a result, while investors seem to think that Powell’s bluffing, enlightenment will likely materialize over the next few months.

 

“The labor market is very strong, and inflation is much too high,” Powell told a National Association for Business Economics Conference. “There is an obvious need to move expeditiously to return the stance of monetary policy to a more neutral level, and then to move to more restrictive levels if that is what is required to restore price stability.”

In particular he added, “if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting, we will do so.”

           

Reuters

Furthermore, with Goldman Sachs economists noting the shift in tone from “steadily” in January to “expeditiously” on Mar. 21, they also upped their hawkish expectations. They wrote:

“We are now forecasting 50bp hikes at both the May and June meetings (vs. 25bp at each meeting previously). The level of the funds rate would still be low at 0.75-1% after a 50bp hike in May, and if the FOMC is open to moving in larger steps, then we think it would see a second 50bp hike in June as appropriate under our forecasted inflation path.”

“After the two 50bp moves, we expect the FOMC to move back to 25bp rate hikes at the four remaining meetings in the back half of 2022, and to then further slow the pace next year by delivering three quarterly hikes in 2023Q1-Q3. We have left our forecast of the terminal rate unchanged at 3-3.25%, as shown in Exhibit 1.”

 

 

In addition, this doesn’t account for the Fed’s willingness to sell assets on its balance sheet. For context, Powell said on Mar. 16 that quantitative tightening (QT) should occur sometime in the summer and that shrinking the balance sheet “might be the equivalent of another rate increase.” As a result, investors’ lack of preparedness for what should unfold over the next few months has been something to behold. However, the reality check will likely elicit a major shift in sentiment.

 

In contrast, the bond market heard Powell’s message loud and clear, and with the U.S. 10-Year Treasury yield hitting another 2022 high of ~2.38% on Mar. 22, the entire U.S. yield curve is paying attention.

 

 Investing.com

Finally, the Richmond Fed released its Fifth District Survey of Manufacturing Activity on Mar. 22. With the headline index increasing from 1 in February to 13 in March, the report cited “increases in all three of the component indexes – shipments, volume of new orders, and number of employees.” 

Moreover, the prices received index increased month-over-month (MoM) in March (the red box below), while future six-month expectations for prices paid and received also increased (the blue box below). As a result, inflation trends are not moving in the Fed’s desired direction.

 

 Richmond Fed

Likewise, the Richmond Fed also released its Fifth District Survey of Service Sector Activity on Mar. 22, and while the headline index decreased from 13 in February to -3 in March, current and future six-month inflationary pressures/expectations rose MoM.

 

Richmond Fed

The bottom line? While the Fed is screaming at the financial markets to tone it down to help calm inflation, investors aren’t listening. With higher prices resulting in more hawkish rhetoric and policy, the Fed should keep amplifying its message until investors finally take note. If not, inflation will continue its ascent until demand destruction unfolds and the U.S. slips into a recession. As such, if investors assume that several rate hikes will commence over the next several months with little or no volatility in between, they’re likely in for a major surprise.

Summation

Precious metals declined on Mar. 22, as the sentiment seesaw continued. However, as noted, it’s remarkable how much the metals domestic fundamental outlooks have deteriorated in recent weeks. Thus, while the Russia-Ukraine conflict keeps them uplifted, for now, the Fed’s inflation problem is nowhere near an acceptable level. As a result, when investors finally realize that a much tougher macroeconomic environment confronts them over the next few months, the shift in sentiment will likely culminate in sharp drawdowns.

 

About the Author:  Przemyslaw
Radomski, CFA  (PR) writes for and publishes articles that underscore his disposition of being passionately curious about markets behavior. He uses his statistical and financial background to question the common views and profit on the misconceptions.


Suggested Reading



Inflation Seems Persistent, What Now?

The Feds Fight Against Raging Inflation is a Process





What is the Yield Curve?

What is Fed Tightening?

 

Stay up to date. Follow us:

 

Release – Filament Health Announces Second Patent Issuance

Posted on by Admin



Filament Health Announces Second Patent Issuance

Research, News, and Market Data on Filament Health

 

The patent describes the extraction and standardization of stable doses of psychedelic compounds

VANCOUVER, BC, March 23, 2022 /CNW/ – Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS) (“Filament” or the “Company”), a clinical-stage natural psychedelic drug development company, today announced that it has been issued a second patent by the Canadian Intellectual Property Office (CIPO) for the extraction and standardization of natural psilocybin and associated psychedelic compounds. The patent describes essential technology for transforming variable psychedelic raw materials into pharmaceutical-grade, standardized drug candidates.

“The issuance of Filament’s second patent is a testament to the strength of our drug development platform and our grasp of crucial technologies,” said Benjamin Lightburn, Chief Executive Officer. “Valuable medicines can be found in nature and we have built a powerful platform with the ability to transform variable natural substances into a standardized pharmaceutical-grade product.”

Filament has developed innovative technology to extract and standardize stable doses of natural compounds from magic mushrooms. Previous methods of natural extraction have experienced challenges relating to poor yields, stability, and repeatability.

“Two years ago, conventional wisdom was that producing shelf stable psilocin was impossible,” said Taran Grey, Director of Intellectual Property. “Not only has Filament proved the contrary, we have had our innovations yet again validated by the patent office. According to the Yale Journal of Law and Technology, the success rate for pending applications to issued patents in the pharmaceutical industry is 42.8%. Our success rate is 100%”.

On August 3, 2021, Filament was awarded the first-ever patent for the extraction and standardization of natural psilocybin. This latest successful issuance validates Filament’s intellectual property strategy and sets the Company in good stead for allowances of several pending patent applications covering additional elements of its proprietary technologies and compositions.

ABOUT FILAMENT HEALTH (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS)
Filament Health is a clinical-stage natural psychedelic drug development company. We believe that safe, standardized, naturally-derived psychedelic medicines can improve the lives of many, and our mission is to see them in the hands of everyone who needs them as soon as possible. Filament’s platform of proprietary intellectual property enables the discovery, development, and delivery of natural psychedelic medicines for clinical development. We are paving the way with the first-ever natural psychedelic drug candidates.

Learn more at www.filament.health and on Twitter, Instagram and LinkedIn.

FORWARD LOOKING INFORMATION
Certain statements and information contained herein may constitute “forward-looking statements” and “forward-looking information,” respectively, under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “intends”, “forecast”, “plans”, “guidance” and similar expressions are intended to identify forward-looking statements or information. The forward-looking statements are not historical facts, but reflect the current expectations of management of Filament regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this press release may include, but are not limited to, information concerning the impact of the patent on the Company’s business and the ability of the Company to secure future patents. Forward-looking statements regarding the Company are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of Filament to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including status of patent applications and the ability to secure patents. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Filament will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

SOURCE Filament Health Corp.

For further information: MEDIA RELATIONS: Anna Cordon, Director of Communications, 778.245.9067, anna@filament.health; INVESTOR RELATIONS: KCSA Strategic Communications, Tim Regan/Adam Holdsworth, 347.487.6788, KCSA-investor-relations@filament.health

Detailed Data Sharing Plans for Medical Research are Soon Due

Posted on by Admin 


Image Credit: Nat’l Institute of Health


New Data-Sharing Requirements from the NIH are a Big Step Toward More Open Science – and Potentially Higher-Quality Research

 

Starting on Jan. 25, 2023, many of the 2,500 institutions and 300,000 researchers that the U.S. National Institutes of Health supports will need to provide a formal, detailed plan for
publicly sharing the data generated by their research. For many in the scientific community, this new NIH Data Management and Sharing Policy sounds like a no-brainer.

The incredibly quick development of rapid tests and vaccines for COVID-19 demonstrate the success that can follow the open sharing of data within the research community. The importance and impact of that data even drove a White House Executive Order mandating that “the heads of all executive departments and agencies” share “COVID-19-related data” publicly last year.

 

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Stephen Jacobs, Professor of Interactive Games and Media, Rochester Institute of Technology.

 

I am the Director of the Rochester Institute of Technology’s Open Programs Office. At Open@RIT, my colleagues and I work with faculty and researchers to help them openly share their research and data in a manner that provides others the rights to access, reuse and redistribute that work with as few barriers or restrictions as possible. In the sciences, these practices are often referred to as open data and open science.

The journal Nature has called the impact of the NIH’s new data management policy “seismic,” saying that it could potentially create a “global standard” for data sharing. This type of data sharing is likely to produce many benefits to science, but there also are some concerns over how researchers will meet the new requirements.

 


The National Institutes of Health has had data-sharing guidelines in place for years, but the new rules are by far the most comprehensive. NIH

 

What to Share and How to Share It

The NIH’s new policy around data sharing replaces a mandate from 2003. Even so, for some scientists, the new policy will be a big change. Dr. Francis S. Collins, then Director of the NIH, said in the 2020 statement announcing the coming policy changes that the goal is to “shift the culture of research” so that data sharing is the norm, rather than the exception.

Specifically, the policy requires two things. First, that researchers share all the scientific data that other teams would need in order to “validate and replicate” the original research findings. And second, that researchers include a two-page data management plan as part of their application for any NIH funding.

So what exactly is a data management plan? Take an imaginary study on heat waves and heatstroke, for example. All good researchers would collect measurements of temperature, humidity, time of year, weather maps, the health attributes of the participants and a lot of other data.

Starting next year, research teams will need to have determined what reliable data they will use, how the data will be stored, when others would be able to get access to it, whether or not special software would be needed to read the data, where to find that software and many other details – all before the research even begins so that these things can be included in the proposal’s data management plan.

Additionally, researchers applying for NIH funding will need to ensure that their data is available and stored in a way that persists long after the initial project is over.

The NIH has stated that it will support – with additional funding – the costs related to the collection, sharing and storing of data.

 

Sharing Data Promotes Open Science

The NIH’s case for the new policy is that it will be “good for science” because it maximizes availability of data for other researchers, addresses problems of reproducibility, will lead to better protection and use of data and increase transparency to ensure public trust and accountability.

The first big change in the new policy – to specifically share the data needed to validate and replicate – seems aimed at the proliferation of research that can’t be reproduced. Arguably, by ensuring that all of the relevant data from a given experiment is available, the scientific world would be better able to evaluate and validate through replication the quality of research much more easily.

I strongly believe that requiring data-sharing and management plans addresses a big challenge of open science: being able to quickly find the right data, as well as access, and apply it. The NIH says, and I agree, that the requirement for data management plans will help make the use of open data faster and more efficient. From the Human Genome Project in the 1990s to the recent, rapid development of tests and vaccines for COVID-19, the benefits of greater openness in science have been borne out.

 

Will the New Requirements be a Burden?

At its core, the goal of the new policy is to make science more open and to fight bad science. But as beneficial as the new policy is likely to be, it’s not without costs and shortfalls.

First, replicating a study – even one where the data is already available – still consumes expensive human, computing and material resources. The system of science doesn’t reward the researchers who reproduce an experiment’s results as highly as the ones who originate it. I believe the new policy will improve some aspects of replication, but will only address a few links in the overall chain.

Second are concerns about the increased workload and financial challenges involved in meeting the requirements. Many scientists aren’t used to preparing a detailed plan of what they will collect and how they will share it as a part of asking for funding. This means they may need training for themselves or the support of trained staff to do so.

Part of a Global Trend Toward Open Science

The NIH isn’t the only federal agency pursuing more open data and science. In 2013, the Obama administration mandated that all agencies with a budget of $100 million or more must provide open access to their publications and data. The National Science Foundation published their first open data policy two years earlier. Many European Union members are crafting national policies on open science – most notably France, which has already published its second.

The cultural shift in science that NIH Director Collins mentioned in 2020 has been happening – but for many, like me, who support these efforts, the progress has been painfully slow. I hope that the new NIH open data policy will help this movement gain momentum.

 

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Release – Motorsport Games Partners With Romain Grosjean To Assist In The Development Of rFactor 2 And Esports Events

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Motorsport Games Partners With Romain Grosjean To Assist In The Development Of rFactor 2 And Esports Events

Research, News, and Market Data on Motorsport Games

 

JOINING AS A TECHNICAL ADVISOR, GROSJEAN WILL HELP ITERATE RFACTOR 2 AND THE COMPANY’S ROBUST LIVE ESPORTS EVENTS

MIAMI, March 25, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today that current INDYCAR star and former Formula One driver Romain Grosjean has joined the company as an advisor on its games and esports events, with particular focus on the rFactor 2 simulation platform.

In his role as a technical esports advisor for Motorsport Games, Grosjean will bring all of his racing experience together – both real-life and sim – to help develop the company’s industry-leading rFactor 2 racing simulation. Throughout the year, Grosjean will participate in four technical test sessions for rFactor 2, allowing him to provide feedback and recommendations to implement to further enhance the platform. In addition to his help of iterating rFactor 2, Grosjean will also be available to advise on Motorsport Games’ catalogue of esports events, such as the hugely successful Le Mans Virtual Series and the brand new INDYCAR-Motorsport Games Pro Challenge. His deep knowledge of both will prove key in further expanding each offering, as Grosjean has participated in both real-life competitions during his career.

“The link between real-life racing and sim racing continues to get closer and it has become an increasingly important tool for companies, teams and championships throughout motorsport,” said Romain Grosjean. “I’m very happy to be taking on the role of technical advisor for Motorsport Games and can’t wait to help provide feedback on rFactor 2, a simulation that I frequently use. The company has shown through its esports events such as the Le Mans Virtual Series and the recent INDYCAR-Motorsport Games Pro Challenge that it is perfectly placed to provide top esports through its products and events.”

“While Romain’s experience and skill in real-world motorsport is very well known across the world, he has also shown in recent years that he has an in-depth knowledge and experience of esports and sim racing,” said Gérard Neveu, Motorsport Advisor for Motorsport Games. “Therefore, he is a perfect fit for this new role as technical advisor to Motorsport Games and his vast experience will help us immensely as we develop rFactor 2 and further expand our esports events. As he was recently voted the most popular driver on the entire INDYCAR grid through a Global INDYCAR Fan Survey conducted by Motorsport Games’ parent company, Motorsport Network, in conjunction with Nielsen and INDYCAR, we know our players will be thrilled to see Romain more closely involved with the development of both our simulation platform and events. With Romain, we will be able to take our Le Mans and INDYCAR esports events to the next level.”

To keep up with the latest Motorsport Game news visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:

Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans, rFactor 2, KartKraft and the British Touring Car Championship (“BTCC”). Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.

Forward-Looking Statements:

Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: (i) the expected benefits of Motorsport Games’ association with Romain Grosjean including, without limitation, that his vast experience will help Motorsports Games immensely as it develops rFactor 2 and further expand its esports events and that Motorsport Games will be able to take its Le Mans and INDYCAR esports events to the next level. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to the Company experiencing difficulties and/or delays in developing rFactor 2 and expanding its esports events, such as due to higher than anticipated costs incurred in developing, launching and continuing to enhance and improve such products and/or less than anticipated consumer acceptance of the Company’s products and/or difficulties, delays in or unanticipated events that may impact the timing and scope of developing such products, such as due to difficulties or delays in using its product development personnel in Russia due to Russia’s invasion of Ukraine and the related sanctions, delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic and related economic lockdowns and government mandates; unanticipated operating costs, transaction costs and actual or contingent liabilities; adverse effects of increased competition; and unanticipated changes in consumer behavior, including as a result of general economic factors, such as increased inflation. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, Current Reports on Form 8-K filed during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:

Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

Websites Social Media
motorsportgames.com Twitter: @msportgames & @traxiongg
traxion.gg Instagram: msportgames & traxiongg
motorsport.com Facebook: Motorsport Games & traxiongg
  LinkedIn: Motorsport Games
  Twitch: traxiongg
  Reddit: traxiongg

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors: Ashley DeSimone Ashley.Desimone@icrinc.com

Press: ASTRSK PR motorsportgames@astrskpr.com

Townsquare Media (TSQ) – A Cherry Of A Deal

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Friday, March 25, 2022

Townsquare Media (TSQ)
A Cherry Of A Deal

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

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

    Expands its radio footprint. The company plans to acquire Cherry Creek Broadcasting’s 35 stations in nine markets for $18.75 million. Given overlap in certain markets, the company plans to divest six radio stations. The transaction is expected to close in Q3 2022. The company will now serve a platform of 356 local stations in 74 markets, up from 67. We estimate that the company paid an attractive multiple, less than 7 times cash flow.

    Plans to introduce Digital solutions.  Management indicated that the stations offer the ability to employ its Digital First strategy, with Townsquare Ignite, its programmatic advertising business, and Townsquare Interactive, its subscription based, digital agency business. As such, we anticipate enhanced Digital revenue and adj. EBITDA growth from the acquired stations …

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. 

 

Filament Health Announces Second Patent Issuance

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Filament Health Announces Second Patent Issuance

Research, News, and Market Data on Filament Health

 

The patent describes the extraction and standardization of stable doses of psychedelic compounds

VANCOUVER, BC, March 23, 2022 /CNW/ – Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS) (“Filament” or the “Company”), a clinical-stage natural psychedelic drug development company, today announced that it has been issued a second patent by the Canadian Intellectual Property Office (CIPO) for the extraction and standardization of natural psilocybin and associated psychedelic compounds. The patent describes essential technology for transforming variable psychedelic raw materials into pharmaceutical-grade, standardized drug candidates.

“The issuance of Filament’s second patent is a testament to the strength of our drug development platform and our grasp of crucial technologies,” said Benjamin Lightburn, Chief Executive Officer. “Valuable medicines can be found in nature and we have built a powerful platform with the ability to transform variable natural substances into a standardized pharmaceutical-grade product.”

Filament has developed innovative technology to extract and standardize stable doses of natural compounds from magic mushrooms. Previous methods of natural extraction have experienced challenges relating to poor yields, stability, and repeatability.

“Two years ago, conventional wisdom was that producing shelf stable psilocin was impossible,” said Taran Grey, Director of Intellectual Property. “Not only has Filament proved the contrary, we have had our innovations yet again validated by the patent office. According to the Yale Journal of Law and Technology, the success rate for pending applications to issued patents in the pharmaceutical industry is 42.8%. Our success rate is 100%”.

On August 3, 2021, Filament was awarded the first-ever patent for the extraction and standardization of natural psilocybin. This latest successful issuance validates Filament’s intellectual property strategy and sets the Company in good stead for allowances of several pending patent applications covering additional elements of its proprietary technologies and compositions.

ABOUT FILAMENT HEALTH (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS)
Filament Health is a clinical-stage natural psychedelic drug development company. We believe that safe, standardized, naturally-derived psychedelic medicines can improve the lives of many, and our mission is to see them in the hands of everyone who needs them as soon as possible. Filament’s platform of proprietary intellectual property enables the discovery, development, and delivery of natural psychedelic medicines for clinical development. We are paving the way with the first-ever natural psychedelic drug candidates.

Learn more at www.filament.health and on Twitter, Instagram and LinkedIn.

FORWARD LOOKING INFORMATION
Certain statements and information contained herein may constitute “forward-looking statements” and “forward-looking information,” respectively, under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “intends”, “forecast”, “plans”, “guidance” and similar expressions are intended to identify forward-looking statements or information. The forward-looking statements are not historical facts, but reflect the current expectations of management of Filament regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this press release may include, but are not limited to, information concerning the impact of the patent on the Company’s business and the ability of the Company to secure future patents. Forward-looking statements regarding the Company are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of Filament to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including status of patent applications and the ability to secure patents. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Filament will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

SOURCE Filament Health Corp.

For further information: MEDIA RELATIONS: Anna Cordon, Director of Communications, 778.245.9067, anna@filament.health; INVESTOR RELATIONS: KCSA Strategic Communications, Tim Regan/Adam Holdsworth, 347.487.6788, KCSA-investor-relations@filament.health

This SPAC Took a Different Track Which May Open Doors for Others

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  Image Credit: Michael McKibben


SPACs and Potential Sellers are Successfully Thinking Outside the Box

 

A new Special Purpose Acquisition Company arrangement may open the door to more successful SPAC mergers. The deal, once completed, involves a pharmaceutical company spinning off a division, which will then be acquired by the SPAC. There are several positive aspects for the shareholders of the original company, including tax breaks, as the SPAC, which went
public in August of 2021, successfully merges with an attractive target.

The Deal

Ligand Pharmaceuticals (LGND) announced Wednesday (March 23) the spinoff of its antibody discovery technology division, OmniAb. It also announced the business would immediately merge with the Avista Public Acquisition Corp. II (AHPA). The deal values OmniAb at about $1.1 billion and would provide up to $266 million in cash to the new company. The stock of both companies responded to the announcement positively and outperformed the related market indices. Avista/AHPA will provide at least $115 million of gross cash to the combined company through a $15 million PIPE investment and a $100 million facility to backstop potential redemptions. Ligand’s $15 million contribution to OmniAb will be made irrespective of the number of redemptions or the Avista contributions.

Ligand intends to distribute 100% of the equity in OmniAb to Ligand shareholders immediately prior to the business combination with APAC. The transaction will be effected through a “Reverse Morris Trust” transaction pursuant to which OmniAb will be spun-off to Ligand’s shareholders and simultaneously merged as a subsidiary of AHPA. The transaction is expected to be tax-free to Ligand and its shareholders for U.S. federal income tax purposes, except for cash received in lieu of fractional shares. Once the transaction has closed, Ligand shareholders are expected to own approximately 75% to 84% of the combined company, depending on redemptions. It will then be Nasdaq listed under the ticker symbol “OABI”.

 

What
is Reverse Morris Trust?

The Reverse Morris Trust is a form of tax-avoidance employed by companies. This tactic enables the company to sell off unwanted assets without incurring tax obligations on gains arising from the sale of these assets.

The Reverse Morris Trust technique works in the following manner: a parent company spins off a subsidiary to which it transfers the unwanted assets; a new, unrelated company is formed by a merger of the subsidiary with a third party company; the new company issues at least 50.1% of its voting stock (and thus, control) to the shareholders of the original parent company.

                       Source: Corporate
Finance Institute

 

Why it May Open More SPAC M&A Doors

SPAC IPOs ran at a historically high pace at the end of 2020, and the beginning of 2021. The pace seemed to have run ahead of the availability of well-suited merger targets – there just have not been enough viable companies with the desire to be acquired. Most SPACs force a merger deal to be in place within 24 months or the SPAC fails, and the remaining funds are returned to the investors. The largest risk to the investors is usually seen as opportunity cost of their cash. The risk to the SPAC’s management is that finding a suitable deal is challenging.

The nature of this pharmaceutical company deal, spin-off, Reverse Morris Trust, then merger, may inspire both potential targets and potential acquirers to think differently and shop with a newly expanded list.

 

Tax Benefits

The spin-off and acquisition is being done through a Reverse Morris Trust. Ligand benefits by saving taxes compared to selling Instead of selling an asset outright and generating a gain on sale, the asset is spun off, and then merged with a company interested in owning the asset. The shareholders of the spinoff, for tax reasons, have to end up with the majority of the merger partner’s stock. This means the spun-off asset is, essentially, the larger party, which is why the structure exists.

More Targets?

SPACs widening their sites merging with spun-off divisions provides more opportunities for them to find the ideal and willing merger candidate. Companies looking to sell productive departments may also find that negotiating with potential acquirers that include Special Purpose Acquisition Companies, could benefit all involved.

 

Paul Hoffman

Managing Editor, Channelchek

 

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Sources

https://investor.ligand.com/press-releases/detail/460/ligand-to-spin-off-its-omniab-business-through-merger-with

https://www.businesswire.com/news/home/20220323005896/en/

 

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Motorsport Games Partners With Romain Grosjean To Assist In The Development Of rFactor 2 And Esports Events

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Motorsport Games Partners With Romain Grosjean To Assist In The Development Of rFactor 2 And Esports Events

Research, News, and Market Data on Motorsport Games

 

JOINING AS A TECHNICAL ADVISOR, GROSJEAN WILL HELP ITERATE RFACTOR 2 AND THE COMPANY’S ROBUST LIVE ESPORTS EVENTS

MIAMI, March 25, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today that current INDYCAR star and former Formula One driver Romain Grosjean has joined the company as an advisor on its games and esports events, with particular focus on the rFactor 2 simulation platform.

In his role as a technical esports advisor for Motorsport Games, Grosjean will bring all of his racing experience together – both real-life and sim – to help develop the company’s industry-leading rFactor 2 racing simulation. Throughout the year, Grosjean will participate in four technical test sessions for rFactor 2, allowing him to provide feedback and recommendations to implement to further enhance the platform. In addition to his help of iterating rFactor 2, Grosjean will also be available to advise on Motorsport Games’ catalogue of esports events, such as the hugely successful Le Mans Virtual Series and the brand new INDYCAR-Motorsport Games Pro Challenge. His deep knowledge of both will prove key in further expanding each offering, as Grosjean has participated in both real-life competitions during his career.

“The link between real-life racing and sim racing continues to get closer and it has become an increasingly important tool for companies, teams and championships throughout motorsport,” said Romain Grosjean. “I’m very happy to be taking on the role of technical advisor for Motorsport Games and can’t wait to help provide feedback on rFactor 2, a simulation that I frequently use. The company has shown through its esports events such as the Le Mans Virtual Series and the recent INDYCAR-Motorsport Games Pro Challenge that it is perfectly placed to provide top esports through its products and events.”

“While Romain’s experience and skill in real-world motorsport is very well known across the world, he has also shown in recent years that he has an in-depth knowledge and experience of esports and sim racing,” said Gérard Neveu, Motorsport Advisor for Motorsport Games. “Therefore, he is a perfect fit for this new role as technical advisor to Motorsport Games and his vast experience will help us immensely as we develop rFactor 2 and further expand our esports events. As he was recently voted the most popular driver on the entire INDYCAR grid through a Global INDYCAR Fan Survey conducted by Motorsport Games’ parent company, Motorsport Network, in conjunction with Nielsen and INDYCAR, we know our players will be thrilled to see Romain more closely involved with the development of both our simulation platform and events. With Romain, we will be able to take our Le Mans and INDYCAR esports events to the next level.”

To keep up with the latest Motorsport Game news visit www.motorsportgames.com and follow on Twitter, Instagram, Facebook and LinkedIn.

About Motorsport Games:

Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans, rFactor 2, KartKraft and the British Touring Car Championship (“BTCC”). Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.

Forward-Looking Statements:

Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: (i) the expected benefits of Motorsport Games’ association with Romain Grosjean including, without limitation, that his vast experience will help Motorsports Games immensely as it develops rFactor 2 and further expand its esports events and that Motorsport Games will be able to take its Le Mans and INDYCAR esports events to the next level. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to the Company experiencing difficulties and/or delays in developing rFactor 2 and expanding its esports events, such as due to higher than anticipated costs incurred in developing, launching and continuing to enhance and improve such products and/or less than anticipated consumer acceptance of the Company’s products and/or difficulties, delays in or unanticipated events that may impact the timing and scope of developing such products, such as due to difficulties or delays in using its product development personnel in Russia due to Russia’s invasion of Ukraine and the related sanctions, delays and higher than anticipated expenses related to the ongoing and prolonged COVID-19 pandemic and related economic lockdowns and government mandates; unanticipated operating costs, transaction costs and actual or contingent liabilities; adverse effects of increased competition; and unanticipated changes in consumer behavior, including as a result of general economic factors, such as increased inflation. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, which may be found at www.sec.gov and at ir.motorsportgames.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, Current Reports on Form 8-K filed during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.

Website and Social Media Disclosure:

Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):

Websites Social Media
motorsportgames.com Twitter: @msportgames & @traxiongg
traxion.gg Instagram: msportgames & traxiongg
motorsport.com Facebook: Motorsport Games & traxiongg
  LinkedIn: Motorsport Games
  Twitch: traxiongg
  Reddit: traxiongg

The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.

Investors: Ashley DeSimone Ashley.Desimone@icrinc.com

Press: ASTRSK PR motorsportgames@astrskpr.com

Marijuana Hits the House This Spring

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Image: Elsa Oloffson (cbdoracle.com)


House Approval Expected for Marijuana Opportunity Reinvestment and Expungement Act (MORE Act)

 

The first week of Spring may be exciting for marijuana businesses, both publicly traded and private. On Thursday (March 24), The House branch of Congress scheduled a vote to legalize cannabis federally, (MORE Act).

As soon as Monday, The U.S. House of Representatives will vote on the Marijuana Opportunity, Reinvestment, and Disposal Act. This bill would remove marijuana from the list of federally controlled substances. The MORE Act is expected to pass, at that point, it would make its way to the Senate for a vote and is expected to eventually wind up on the desk of the President to be signed into law.

Investors viewed this move to put it on the calendar the last week in March as a huge positive which then pushed cannabis-related stocks higher. Medicine Man Technologies – Schwazze (SHWZ) saw its shares leap 10.48% on Thursday.  SHWZ is involved in production, consulting, and retailing. Stem Holdings (STMH), is involved in properties used in cannabis agriculture, it saw its shares jump 9.37%. Both SHWZ and STMH are small, growth companies with equity research coverage provided on Channelchek, by Noble Capital Markets. Other cannabis companies involved in various ends of the business, both large and small saw similar movement.

The federal legalization of marijuana has bipartisan support in Congress. While it is widely expected to pass in the House and Senate, it is not certain whether President Biden will sign. Senate Majority Leader Schumer has been lobbying President Biden on the positive implications of legal marijuana and has expressed hope Biden will support the law.

Cannabis is legal for recreational use in 18 states and for medical use in 38. Federal recreational drug legalization would dramatically increase the market for cannabis growers, refiners, and distributors while eliminating concerns over banking and securities laws related to involvement in federally illegal businesses.

 

 

Sources

https://www.congress.gov/bill/117th-congress/house-bill/3617/

https://norml.org/blog/2022/03/24/us-house-of-representatives-to-vote-on-more-act-next-week/

 

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One Stop Systems (OSS) – 4Q21: Revenue Beat, Miss On Earnings, But Bright Future

Posted on by Admin

Friday, March 25, 2022

One Stop Systems (OSS)
4Q21: Revenue Beat, Miss On Earnings, But Bright Future

One Stop Systems Inc is US-based company which is principally engaged in designing, manufacturing, marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.

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

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

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

    4Q21 Results. Fourth quarter revenue of $17.8 million, up 28% y-o-y and up 11% sequentially, and above management’s $17.1 million guide. We had forecast $17.1 million. GAAP net loss of $386,000, or $0.02 per share, versus net income of $244,000, or $0.01 per share, last year. Adjusted net income of $71,000, or breakeven, versus $636,000, or $0.04 per share in 4Q20. We had forecast $0.04 and $0.07 respectively.

    Too Much Business? During 4Q21 Disguise revenue rose 247% y-o-y and resulted in gross margin declining to 28.3% in the quarter from 34.5% in the same period last year.  Increased operating expenses, driven by Market and Selling costs, with the lower gross margin caused an operating loss for the quarter. We anticipate Disguise business to return to a normal percentage of overall revenue going forward …

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. 

 

Avivagen Inc. (VIVXF)(VIV:CA) – A Debt for a Debt

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Thursday, March 24, 2022

Avivagen Inc. (VIVXF)(VIV:CA)
A Debt for a Debt

Avivagen Inc is a Canadian based company operating in the healthcare sector. It develops science-based, natural health products for animals. It develops and commercializes products for livestock feeds to replace antibiotics for growth promotion and to help prevent disease by supporting the animal’s own health defenses. Its product range includes OxC-beta, Vivamune health chews, Oximunol chewable tablets, and Carotenoid Oxidation products.

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.

    The New Offering. Avivagen’s management announced yesterday the intention to complete a private placement financing of secured debentures. The gross proceeds of this financing will total up to CAD$6.5 million and will close on March 28, 2022. Bloom Burton Securities is acting as the agent in the offering.

    Details on the Offering.  The debentures will have an annual interest rate of 9%, payable semi annually, and the purchasers will be paid a maintenance fee of 3%. Purchasers of the debentures will also receive common shares equal to 20% of the principal amount of the debentures divided by the market price of the shares on the TSX Venture Exchange on the last trading day prior to closing. These are …

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.