Month: June 2022

Release – Voyager Digital Provides Market Update

Posted on by Admin

 


Voyager Digital Provides Market Update

Research, News, and Market Data on Voyager Digital

NEW YORK, June 22, 2022 /CNW/ – Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) today announced its subsidiary, Voyager Digital Holdings, Inc. (“VDH”), has entered into a definitive agreement with Alameda Ventures Ltd. (“Alameda”) related to the previously disclosed credit facility, which is intended to help Voyager meet customer liquidity needs during this dynamic period.

VDH entered into a definitive agreement with Alameda for a US$200 million cash and USDC revolver and a 15,000 BTC revolver (the “Loan”). As previously disclosed, the proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed. In addition to this facility, as of June 20, 2022, Voyager has approximately US$152 million cash and owned crypto assets on hand, as well as approximately US$20 million of cash that is restricted for the purchase of USDC.

Alameda’s obligation to provide funding is subject to certain conditions, which include: no more than US$75 million may be drawn down over any rolling 30-day period; the Company’s corporate debt must be limited to approximately 25 percent of customer assets on the platform, less US$500 million; and additional sources of funding must be secured within 12 months. This is a summary of the Loan terms; a copy of the Loan agreement will be filed at http://www.sedar.com.

Voyager concurrently announced that its operating subsidiary, Voyager Digital, LLC, may issue a notice of default to Three Arrows Capital (“3AC”) for failure to repay its loan. Voyager’s exposure to 3AC consists of 15,250 BTC and $350 million USDC. The Company made an initial request for a repayment of $25 million USDC by June 24, 2022, and subsequently requested repayment of the entire balance of USDC and BTC by June 27, 2022. Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default. Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available. The Company is unable to assess at this point the amount it will be able to recover from 3AC.

Alameda currently indirectly holds 22,681,260 common shares of Voyager (“Common Shares”), representing approximately 11.56% of the outstanding Common and Variable Voting Shares. The Loan is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Voyager is relying on the exemption available under Section 5.7(1)(f) of MI 61-101 minority shareholder approval requirement. Additionally, the Loan is exempt from the formal valuation requirement of MI 61-101 pursuant to Section 5.4(1) of MI 61-101. The Loan Agreement was approved by the Board of Directors of Voyager. 

About Voyager Digital
Ltd.

Voyager Digital Ltd.’s (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) US subsidiary, Voyager Digital, LLC, is a cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost-efficiency to the marketplace. Voyager offers a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

Forward
Looking Statements

Certain information in this press release, including, but not limited to, statements regarding future growth and performance of the business, momentum in the businesses, future adoption of digital assets, the terms of the term sheet and any definitive loan documentation and the Company’s anticipated results may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” (or the negatives) or other similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Voyager’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. There is no assurance that the funds available under the Loan agreement will be available in a timely manner or, even if available will, together with any other assets of Voyager be sufficient to safeguard customer assets. It is uncertain what amount Voyager will be able to recover from 3AC for non-payment or the legal remedies available to Voyager in connection with such non-payment or the impact on the future business, cash flows, liquidity and prospects of Voyager as a result of 3AC’s non-payment. Forward looking statements are subject to the risk that the global economy, industry, or the Company’s businesses and investments do not perform as anticipated, that revenue or expenses estimates may not be met or may be materially less or more than those anticipated, that parties to whom the Company lends assets are able to repay such loans in full and in a timely manner, that trading momentum does not continue or the demand for trading solutions declines, customer acquisition does not increase as planned, product and international expansion do not occur as planned, risks of compliance with laws and regulations that currently apply or become applicable to the business and those other risks contained in the Company’s public filings, including in its Management Discussion and Analysis and its Annual Information Form (AIF). Factors that could cause actual results of the Company and its businesses to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; changes in laws or approaches to regulation, the failure or delay in the adoption of digital assets and the blockchain ecosystem by institutions; changes in the volatility of crypto currency, changes in demand for Bitcoin and Ethereum, changes in the status or classification of cryptocurrency assets, cybersecurity breaches, a delay or failure in developing infrastructure for the trading businesses or achieving mandates and gaining traction; failure to grow assets under management, an adverse development with respect to an issuer or party to the transaction or failure to obtain a required regulatory approval. Readers are cautioned that Assets on Platform and trading volumes fluctuate and may increase and decrease from time to time and that such fluctuations are beyond the Company’s control. Forward-looking statements, past and present performance and trends are not guarantees of future performance, accordingly, you should not put undue reliance on forward-looking statements, current or past performance, or current or past trends. Information identifying assumptions, risks, and uncertainties relating to the Company are contained in its filings with the Canadian securities regulators available at 
www.sedar.com. The forward-looking statements in this press release are applicable only as of the date of this release or as of the date specified in the relevant forward-looking statement and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events, except as required by law. The Company assumes no obligation to provide operational updates, except as required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and readers should not put undue reliance on past performance and current trends. There is no assurance that the transactions contemplated by the non-binding term sheet will be completed or if completed they will be on the terms agreed. There is no assurance that the funds available under the loan agreement will be available or, even if available will, together with any other assets of Voyager be sufficient to safeguard customer assets.

The TSX
has not approved or disapproved of the information contained herein.

SOURCE Voyager Digital Ltd.

For further information: Voyager Digital, Ltd., Voyager Public Relations Team, pr@investvoyager.com


Revlon Caught WallStreetBets Attention and is Soaring

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Image Credit: Diverse Stock Photos (Flickr)


Will Bankrupt Revlon Get a Makeover from a Self-Directed Investor Frenzy?

The 80% increase in Revlon’s (REV) price Tuesday (June 21) shows that strong influence remains in the hands of retail investors. The company, which declared bankruptcy last week, is now up 461% since that announcement. At play is the same social media communication network that helped drive up GameStop (GME) in early 2021, provided capital to AMC Theaters (AMC), and elevated values of cruise lines that sat mostly idle during the pandemic. This time, it’s again with a household name that was getting a large amount of short-seller attention.

Revlon hit a low last week of $1.08 and has since rocketed up to $6.06 which it hit yesterday (June 21). The impetus seems to have begun with a Reddit post.  A member of r/wallstreetbets compared the current setup in Revlon to Hertz (HTZ) in 2020, noting that the company has an iconic 90-year-old brand and also has a high short interest of 37%. Today, Revlon’s short interest as a percentage of the total float increased to more than 50%, and Fintel identified the company as a top short-squeeze candidate.

The Reddit post asked, “Is there a chance [Revlon] becomes a meme stock?”


Source: Koyfin

The strong buying by self-directed individual investors is reflected as it’s one of Fidelity’s top ten-traded tickers. The broker showed Revlon as the ninth most popular stock traded by their customers on Tuesday, with buying pressure outweighing selling pressure.


Image: upikatruuu (r/wallstreetbets)

Hertz was able to quickly resolve its bankruptcy as its market value and access to capital increased and protection from lenders allowed it to shed over $5 billion in debt.

This is a possible attempt to replicate the magic of Hertz, which soared nearly ten-fold in June 2020 after the company filed for bankruptcy, this activity could provide Revlon with more options.

For now, the stock is acting in a similar fashion to Hertz and other meme stocks. The rally has been intense and supported by volume. The company is using the bankruptcy process to reorganize its capital structure as it has high debt and struggles with declining sales due to people staying inside during the pandemic, the continued work-from-home environment, and competition from Kim Kardashian West and Kylie Jenner’s makeup brands, among others.

One unanswered question equity investors in Revlon may wish to resolve, is if Revlon’s equity holders will be left with anything after the bankruptcy proceedings or if the courts and company prioritize paying back notes and other loans. For now, retail investors are betting there might just be some equity value remaining, and that momentum carries the stock price even higher.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://investors.revlon.com/news-releases/news-release-details/revlon-takes-step-towards-reorganizing-capital-structure-company

https://www.bloomberg.com/news/articles/2022-06-16/revlon-files-for-bankruptcy-facing-high-debt-supply-chain-pain

https://www.reddit.com/r/wallstreetbets/comments/vdx78t/what_do_we_think_of_revlon/

https://www.vandatrack.com/

https://eresearch.fidelity.com/eresearch/gotoBL/fidelityTopO

https://investorplace.com/2022/06/revlon-is-bankrupt-what-comes-next-for-rev-stock/

https://markets.businessinsider.com/news/stocks/revlon-stock-price-chapter-11-bankruptcy-meme-stock-retail-investors-2022-6

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Release – Tonix Pharmaceuticals Announces Pricing of $30 Million Private Placement of Convertible Redeemable Preferred Stock

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Tonix Pharmaceuticals Announces Pricing of $30 Million Private Placement of Convertible Redeemable Preferred Stock

CHATHAM, N.J., June 22, 2022 (GLOBE NEWSWIRE) — Tonix Pharmaceuticals Holding Corp. (Nasdaq: TNXP), a clinical-stage biopharmaceutical company, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 2,500,000 shares of Series A convertible redeemable preferred stock and 500,000 shares of Series B convertible redeemable preferred stock. Each share of Series A and Series B preferred stock has a purchase price of $9.50, representing an original issue discount of 5% of the $10.00 stated value of each share. Each share of Series A and Series B preferred stock is convertible into shares of the Company’s common stock at an initial conversion price of $4.00 per share. Shares of the Series A and Series B preferred stock are convertible at the option of the holder at any time following the Company’s receipt of shareholder approval for an increase to the authorized shares of common stock of the Company from 50 million to 150 million. The Company will be permitted to redeem the Series A preferred stock at its option upon the fulfillment of certain conditions and subject to certain limitations. The Company and the holders of the Series A and Series B preferred stock also entered into a registration rights agreement to register the resale of the shares of common stock issuable upon conversion of the Series A and Series B preferred stock. Total gross proceeds from the offerings, before deducting discounts, placement agent’s fees and other estimated offering expenses, is $30 million.

The Series A and Series B preferred stock permits the holders thereof to vote together with the holders of the Company’s common stock on a proposal to effectuate an increase to the authorized shares of common stock of the Company at a special meeting of Company shareholders. The Series B preferred stock permits the holder to cast 2,500 votes per share of Series B preferred stock on such proposal, provided, that such votes must be cast in the same proportions as the shares of common stock and Series A preferred stock are voted on that proposal. Except as required by law or expressly provided by the certificate of designation, holders of the Series A and Series B preferred stock will not be permitted to vote on any other matters. The holders of the Series A and Series B preferred stock agreed not to transfer, offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of their shares of preferred stock until after the special meeting. The holders of the Series A and Series B preferred stock have the right to require the Company to redeem their shares of preferred stock for cash at 105% of the stated value of such shares commencing after the earlier of (i) the date on which the Company’s receives shareholder approval to increase the Company’s authorized shares of common stock or (ii) 60 days after the closing of the issuances of the Series A and Series B preferred stock and ending 90 days after such closing. The Company has the option to redeem the Series A preferred stock for cash at 105% of the stated value commencing after the Company’s shareholders’ approval of the increase to the authorized shares of common stock of the Company, subject to the holders’ rights to convert the shares prior to a redemption at the option of the Company.

The closing of the offering is expected to occur on or about June 24, 2022, subject to the satisfaction of customary closing conditions. Additional information regarding the securities described above and the terms of the offering are included in a Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission (“SEC”).

A.G.P./Alliance Global Partners is acting as the sole placement agent in connection with the offering.

The Series A and Series B preferred stock and shares of common stock into which these preferred shares are convertible are being issued in reliance upon the exemption from the securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and/or Rule 506 of Regulation D as promulgated by SEC under the 1933 Act.

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

About Tonix Pharmaceuticals
Holding Corp.*

Tonix is a clinical-stage biopharmaceutical company focused on discovering, licensing, acquiring and developing therapeutics to treat and prevent human disease and alleviate suffering. Tonix’s portfolio is composed of central nervous system (CNS), rare disease, immunology and infectious disease product candidates. Tonix’s CNS portfolio includes both small molecules and biologics to treat pain, neurologic, psychiatric and addiction conditions. Tonix’s lead CNS candidate, TNX-102 SL (cyclobenzaprine HCl sublingual tablet), is in mid-Phase 3 development for the management of fibromyalgia with a new Phase 3 study launched in the second quarter of 2022 and interim data expected in the first quarter of 2023. TNX-102 SL is also being developed to treat Long COVID, a chronic post-acute COVID-19 condition. Tonix expects to initiate a Phase 2 study in Long COVID in the third quarter of 2022. TNX-1300 (cocaine esterase) is a biologic designed to treat cocaine intoxication that is Phase 2 ready and has been granted Breakthrough Therapy Designation by the FDA. TNX-1900 (intranasal potentiated oxytocin), a small molecule in development for chronic migraine, is expected to enter the clinic with a Phase 2 study in the second half of 2022. Tonix’s rare disease portfolio includes TNX-2900 (intranasal potentiated oxytocin) for the treatment of Prader-Willi syndrome. TNX-2900 has been granted Orphan-Drug Designation by the FDA. Tonix’s immunology portfolio includes biologics to address organ transplant rejection, autoimmunity and cancer, including TNX-1500 which is a humanized monoclonal antibody targeting CD40-ligand being developed for the prevention of allograft and xenograft rejection and for the treatment of autoimmune diseases. A Phase 1 study of TNX-1500 is expected to be initiated in the second half of 2022. Tonix’s infectious disease pipeline consists of a vaccine in development to prevent monkeypox and smallpox called TNX-801, next-generation vaccines to prevent COVID-19, and a platform to make fully human monoclonal antibodies to treat COVID-19. Tonix’s lead vaccine candidates for COVID-19 are TNX-1840 and TNX-1850, which are live virus vaccines based on Tonix’s recombinant pox vector (RPV) live virus vaccine platform.

*All of Tonix’s product
candidates are investigational new drugs or biologics and none have been
approved for any indication

This press release and further information about Tonix can be found at www.tonixpharma.com.

Forward Looking
Statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on Tonix’s current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks related to the failure to obtain FDA clearances or approvals and noncompliance with FDA regulations; delays and uncertainties caused by the global COVID-19 pandemic; risks related to the timing and progress of clinical development of our product candidates; our need for additional financing; uncertainties of patent protection and litigation; uncertainties of government or third party payor reimbursement; limited research and development efforts and dependence upon third parties; and substantial competition. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. Tonix does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2022, and periodic reports filed with the SEC on or after the date thereof. All of Tonix’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The information set forth herein speaks only as of the date thereof.

Contacts

Jessica Morris
(corporate)
Tonix Pharmaceuticals
investor.relations@tonixpharma.com 
(862) 799-8599

Olipriya Das, Ph.D.
(media)
Russo Partners
Olipriya.Das@russopartnersllc.com 
(646) 942-5588

Peter Vozzo (investors)
ICR Westwicke
peter.vozzo@westwicke.com 
(443) 213-0505


Primary Logo

Source: Tonix Pharmaceuticals Holding Corp.

Released
June 22, 2022

Digerati Technologies (DTGI) – Trying To Move To The Next Level

Posted on by Admin

Wednesday, June 22, 2022

Digerati Technologies (DTGI)
Trying To Move To The Next Level

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries, T3 Communications (T3com.com), Nexogy (Nexogy.com), SkyNet Telecom (Skynettelecom.net) and NextLevel Internet (nextlevelinternet.com), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network.

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

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

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

Q3 above expectations. Revenues of $8.2 million were above our $7 million estimate, largely reflecting one month earlier closing of the NextLevel acquisition. Gross margins improved in the quarter to 61.3%, better than our 60.7% estimate.  Adj. EBITDA of $557 million was slightly less than our $617,000 estimate, related to a timing issue for NextLevel’s cost synergies. 

Favorable same store revenue growth. The fiscal Q3 revenue reflected favorable 1.8% sequential quarterly revenue growth from the fiscal second quarter and year over year same store revenue growth of 1.6%. This is compelling given that resources are allocated toward integration and acquisitions and not focused on growing its markets, at this time. As the company gains scale, we believe that the company will ramp up marketing efforts for enhanced in-market growth….

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. 

Cypress Development (CYDVF) – Hitting Major Milestones

Posted on by Admin

Wednesday, June 22, 2022

Cypress Development (CYDVF)
Hitting Major Milestones

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

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

Direct lithium extraction working well. Cypress announced favorable results from the direct lithium extraction (DLE) portion of its pilot plant in Nevada. Lithium extraction begins in the pilot plant with acid leaching a slurry of lithium-bearing claystone. Recoveries in the pilot plant are meeting expectations with lithium extraction from claystone in the 80% to 85% range. The lithium solution from leaching undergoes several steps before entering the DLE process. Within the DLE portion of the pilot plant, assays received from samples collected during continuous operating cycles in March, April, and May 2022 revealed an average lithium recovery of 99.5%, along with over 99% rejection of major impurities. In our view, these results affirm the commercial viability of extracting lithium from Nevada claystone.

Technology license acquired. The direct lithium extraction process is one function of the pilot plant using a proprietary process and equipment acquired from Chemionex, Inc. With the release of one million Cypress shares held in escrow to Chemionex, Cypress has now acquired full ownership of the equipment and a royalty-free license in perpetuity to use the technology at its pilot plant and at the company’s Clayton Valley lithium project….

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. 

Allegiant Gold (AUXXF) – Core Drilling Begins in the High-Grade Zone

Posted on by Admin

Wednesday, June 22, 2022

Allegiant Gold (AUXXF)
Core Drilling Begins in the High-Grade Zone

Allegiant owns 100% of 10 highly-prospective gold projects in the United States, seven of which are located in the mining-friendly jurisdiction of Nevada. Three of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

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

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

Core diamond drill program begins. Allegiant Gold commenced a diamond core drilling program at Eastside and expects to drill 7 to 9 diamond core holes with an average depth of 600 meters. The hole locations and design were jointly selected by Allegiant and the exploration team at Kinross. The core holes will be in the high-grade zone discovered during the 2021 drill program within the original pit zone.

Assessing Eastside’s high-grade potential. Recall that in May 2021, results from Allegiant’s nine-hole drill program returned strong gold intercepts for Holes 239, 243, 244, and 245. With the recent investment by Kinross Gold Corporation (NYSE: KGC, TSX: K), along with its technical advisory support, deeper core drilling will help to better assess Eastside’s high-grade potential….

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. 

Improving Drug Formulations for Maximum Efficacy

Posted on by Admin 


Image Credit: Pixabay (Pexels)


How Do Drugs Know Where To Go In The Body? Why Some Medications Are Swallowed While Others Are Injected

When you take aspirin for a headache, how does the aspirin know to travel to your head and alleviate the pain?

The short answer is, it doesn’t: Molecules can’t transport themselves through the body, and they don’t have control over where they eventually end up. But researchers can chemically modify drug molecules to make sure that they bind strongly to the places we want them and weakly to the places we don’t.

Pharmaceutical products contain more than just the active drug that directly affects the body. Medications also include “inactive ingredients,” or molecules that enhance the stability, absorption, flavor and other qualities that are critical to allowing the drug to do its job. For example, the aspirin you swallow also has ingredients that both prevent the tablet from fracturing during shipping and help it break apart in your body.

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It was written by and represents the research-based opinions of Tom Anchordoquy, Professor of Pharmaceutical Sciences, University of Colorado Anschutz Medical Campus.

As a pharmaceutical scientist, I’ve been studying drug delivery for the past 30 years. That is, developing methods and designing nondrug components that help get a medication where it needs to go in the body. To better understand the thought process behind how different drugs are designed, let’s follow a drug from when it first enters the body to where it eventually ends up.

 

How Drugs
are Absorbed in the Body

When you swallow a tablet, it will initially dissolve in your stomach and intestines before the drug molecules are absorbed into your bloodstream. Once in the blood, it can circulate throughout the body to access different organs and tissues.

Drug molecules affect the body by binding to different receptors on cells that can trigger a particular response. Even though drugs are designed to target specific receptors to produce a desired effect, it is impossible to keep them from continuing to circulate in the blood and binding to nontarget sites that potentially cause unwanted side effects.


Image Credit: Jorgen Schyberg (Flickr)

Drug molecules circulating in the blood also degrade over time and eventually leave the body in your urine. A classic example is the strong smell your urine might have after you eat asparagus because of how quickly your kidney clears asparagusic acid. Similarly, multivitamins typically contain riboflavin, or vitamin B2, which causes your urine to turn bright yellow when it is cleared. Because how efficiently drug molecules can cross the intestinal lining can vary depending on the drug’s chemical properties, some of the drugs you swallow never get absorbed and are removed in your feces.

Because not all of the drug is absorbed, this is why some medications, like those used to treat high blood pressure and allergies, are taken repeatedly to replace eliminated drug molecules and maintain a high enough level of drug in the blood to sustain its effects on the body.

 

Getting Drugs
to the Right Place

Compared with pills and tablets, a more efficient way of getting drug into the blood is to inject it directly into a vein. This way, all the drug gets circulated throughout the body and avoids degradation in the stomach.

Many drugs that are given intravenously are “biologics” or “biotechnology drugs,” which include substances derived from other organisms. The most common of these are a type of cancer drug called monoclonal antibodies, proteins that bind to and kill tumor cells. These drugs are injected directly into a vein because your stomach can’t tell the difference between digesting a therapeutic protein and digesting the proteins in a cheeseburger.

In other cases, drugs that need very high concentrations to be effective, such as antibiotics for severe infections, can be delivered only through infusion. While increasing drug concentration can help make sure enough molecules are binding to the correct sites to have a therapeutic effect, it also increases binding to nontarget sites and the risk of side effects.

One way to get a high drug concentration in the right location is to apply the drug right where it’s needed, like rubbing an ointment onto a skin rash or using eyedrops for allergies. While some drug molecules will eventually get absorbed into the bloodstream, they will be diluted enough that the amount of drug that reaches other sites is very low and unlikely to cause side effects. Similarly, an inhaler delivers the drug directly to the lungs and avoids affecting the rest of the body.

 

Patient Compliance

Finally, a key aspect in all drug design is to simply get patients to take medications in the right amounts at the right time.

Because remembering to take a drug several times a day is difficult for many people, researchers try to design drug formulations so they need to be taken only once a day or less.

Similarly, pills, inhalers or nasal sprays are more convenient than an infusion that requires traveling to a clinic for a trained clinician to inject it into your arm. The less troublesome and expensive it is to administer a drug, the more likely it is that patients will take their medication when they need it. However, sometimes infusions or injections are the only effective way that certain drugs can be administered.

Even with all the science that goes into understanding a disease well enough to develop an effective drug, it is often up to the patient to make it all work as designed.


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Release – Bunker Hill Announces $15 Million Convertible Debt Financing

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Bunker Hill Announces Appointment Of General Manager And Secures Mining Contractor

News and Market Data on Bunker Hill Mining


Bunker Hill Announces $15 Million Convertible Debt Financing

Bunker Hill to Host Live Interactive 6ix Summit on Wednesday, June 22 @ 2:00pm ET / 11:00am PT

TORONTO, June 20, 2022 – Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR; OTCQB: BHLL) is pleased to announce the execution and closing of a new $15 million convertible debenture financing (the “Series 2 Convertible Debentures”) with Sprott Private Resources Streaming & Royalty Corp. (“SRSR” or “Sprott”).  All figures in this news release are in US dollars unless otherwise stated.

Sam Ash, CEO, stated “We are very pleased to announce this new $15 million financing, representing an increase in our project finance package with Sprott to $66 million.  Together with our recent equity raise, this materially improves our working capital position, enables us to meet our financial assurance obligations with the EPA, and funds several key workstreams over the coming months including completion of the underground decline, demobilization of the Pend Oreille mill, and further engineering optimization in preparation for the mine restart.”

Investors are invited to register for the live interactive 6ix Summit at: 

CONVERTIBLE DEBENTURE
FINANCING

The Series 2 Convertible Debentures bear interest at an annual rate of 10.5%, payable in cash or shares at the Company’s option, and mature on March 31, 2025.  Repayments of $2 million shall be made at the end of each calendar quarter, starting on 30 June 2024, with the remaining $9 million due on March 31, 2025.  The Series 2 Convertible Debentures are convertible into shares of the Company at a share price of CAD 0.29 per share until the maturity date.  The Company may elect to re-pay the Convertible Debenture early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.  The Series 2 Convertible Debentures will be secured by the same security package that has been put in place to secure the $8 million Royalty Convertible Debenture and the aggregate $6 million Convertible Debentures (the “Series 1 Convertible Debentures”) that closed in January 2022.

The parties have also agreed to a number of changes to the previously announced project finance package of up to $51 million (of which $14 million has been advanced to date), consisting of the Royalty Convertible Debenture, Series 1 Convertible Debentures, and the Stream.  Firstly, the maturity dates of the Royalty Convertible Debenture and Series 1 Convertible Debentures have been extended to March 31, 2025 (previously July 7, 2023).  As previously envisaged, the Royalty Convertible Debenture will convert to a 1.85% life of mine royalty or be repaid when the Stream is advanced.  However, in the event of conversion, the Company will enter into a Royalty Put Option entitling the royalty holder to resell the royalty to the Company for $8 million upon default under the Series 1 Convertible Debentures or Series 2 Convertible Debentures until such time that the Series 1 Convertible Debentures and Series 2 Convertible Debentures are paid in full.  The Series 1 Convertible Debentures will remain outstanding until March 31, 2025, regardless of whether the Stream is advanced, unless the Company elects to exercise its option of early repayment.  Lastly, the minimum quantity of metal delivered under the Stream, if advanced, will increase by 10% relative to amounts announced in the news release of December 20, 2021.

In light of the Series 2 Convertible Debenture financing, the previously permitted additional senior secured indebtedness of up to $15 million for project finance has been removed.  However, the Company and Sprott have agreed that the Company is permitted to sell an additional $5 million of the Series 2 Convertible Debentures to other investors until August 1, 2022.

The net proceeds of the financing will be primarily used to satisfy the Company’s financial assurance obligations with the US Environmental Protection Agency (“EPA”) and the advancement of mine restart activities, including the completion of the underground decline, demobilization of the Pend Oreille mill, and advancement of EPCM activities in anticipation of mill construction in the fourth quarter of 2022.

NEXT STEPS

Additional optimization opportunities have been identified as technical work on the Prefeasibility Study (“PFS”) has advanced.  In order to incorporate these into the PFS, technical work is continuing and the PFS is now expected to be completed later in the third quarter of 2022.  The advancement of the Stream is also expected to take place at approximately that time.  While this additional technical work is in progress, development drifting will continue with an expected breakthrough into the internal ramp between the 6 and 8 levels to occur in September 2022.  Relocation of the Pend Oreille Mill will continue throughout the summer with a key milestone being the disassembly and transport of the primary ball mills in August.

RELATED PARTY
TRANSACTIONS

The financing transactions described in this press release (the “Transactions”) constitute related party transactions pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special
Transactions (“MI 61-101”).  In consideration of the financial circumstances of the Company and a determination by the directors, all of whom are considered independent as determined pursuant to Part 7 of MI 61-101, the Company intends to rely upon the “financial hardship” exemptions from the requirements to obtain a formal valuation and minority shareholder approval in Sections 5.5(g) and 5.7(e) of MI 61-101 respectively.  The Company will also file a material change report on SEDAR (www.sedar.com).  The material change report will be filed less than 21 days prior to the closing of the Transactions due to the Company’s immediate need for financing.

ABOUT BUNKER HILL MINING
CORP.

Under new Idaho-based leadership the Bunker Hill Mining Corp, intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American precious-metal assets with a focus on silver.  Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.

For additional
information contact:

David Wiens, CFA
CFO & Corporate Secretary
+1 208 370 3665
ir@bunkerhillmining.com

CAUTIONARY STATEMENTS

Certain
statements in this news release are forward-looking and involve a number of
risks and uncertainties. Such forward-looking statements are within the
meaning of that term in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
as well as within the meaning of the phrase ‘forward-looking information’ in
the Canadian Securities Administrators’ National Instrument 51-102 –
Continuous Disclosure Obligations. Forward-looking statements are not
comprised of historical facts. Forward-looking statements include estimates
and statements that describe the Company’s future plans, objectives or goals,
including words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be identified by
such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”,
“could”, “would”, “will”, or “plan”. Since forward-looking statements are
based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although these
statements are based on information currently available to the Company, the
Company provides no assurance that actual results will meet management’s
expectations. Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results, performance,
prospects and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in
this news release includes, but is not limited to, the Company’s intentions
regarding: its objectives, goals or future plans and statements; closing the
Stream as described herein with SRSR; the financing package with SRSR being
sufficient for the purposes described herein; the Company’s ability to secure
additional financing, whether dilutive or non-dilutive; the Company’s ability
to progress detailed engineering of the Bunker Hill Mine; the Company’s
ability to complete the underground decline, the demobilization of the Pend
Oreille mill, and further engineering optimization in preparation for the
mine restart; the Company’s ability to restart production at the Bunker Hill
Mine; and the completion of a pre-feasibility study and the timing thereof.
Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to: the ability to
predict and counteract the effects of COVID-19 on the business of the
Company, including but not limited to the effects of COVID-19 on the price of
commodities, capital market conditions, restriction on labour and
international travel and supply chains; failure to identify mineral
resources; failure to convert estimated mineral resources to reserves; the
inability to complete a feasibility study which recommends a production
decision; the preliminary nature of metallurgical test results; the Company’s
ability to restart and develop the Bunker Hill Mine and the risks of not
basing a production decision on a feasibility study of mineral reserves
demonstrating economic and technical viability, resulting in increased
uncertainty due to multiple technical and economic risks of failure which are
associated with this production decision including, among others, areas that
are analyzed in more detail in a feasibility study, such as applying economic
analysis to resources and reserves, more detailed metallurgy and a number of
specialized studies in areas such as mining and recovery methods, market
analysis, and environmental and community impacts and, as a result, there may
be an increased uncertainty of achieving any particular level of recovery of
minerals or the cost of such recovery, including increased risks associated
with developing a commercially mineable deposit with no guarantee that
production will begin as anticipated or at all or that anticipated production
costs will be achieved; failure to commence production would have a material
adverse impact on the Company’s ability to generate revenue and cash flow to
fund operations; failure to achieve the anticipated production costs would
have a material adverse impact on the Company’s cash flow and future
profitability; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals; political risks;
changes in equity markets; uncertainties relating to the availability and
costs of financing needed in the future; the inability of the Company to
budget and manage its liquidity in light of the failure to obtain additional
financing, including the ability of the Company to complete the payments to
the U.S. EPA pursuant to the terms of the agreement to acquire the Bunker
Hill Mine; inflation; changes in exchange rates; fluctuations in commodity
prices; delays in the development of projects; capital, operating and
reclamation costs varying significantly from estimates and the other risks
involved in the mineral exploration and development industry; the cost,
timing and ability to implement ESG initiatives which may not be technically
successful or economically viable;  and those risks set out in the
Company’s public documents filed on SEDAR. Although the Company believes that
the assumptions and factors used in preparing the forward-looking information
in this news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news release, and
no assurance can be given that such events will occur in the disclosed time
frames or at all. The Company disclaims any intention or obligation to update
or revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by law. 
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.

 

Contact Info:

Bunker Hill Mining Corp.
82 Richmond St East
Toronto, Ontario
M5C 1P1
+1.519.871.3998



Vectrus (VEC) – Vertex Combination Approved by Shareholders

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Tuesday, June 21, 2022

Vectrus (VEC)
Vertex Combination Approved by Shareholders

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

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.

Shareholder Approval. Last week, Vectrus announced that Vectrus shareholders voted to approve the combination with Vertex. With shareholder approval, the combined company will be renamed V2X, Inc, and its common stock will trade on the NYSE under a new ticker symbol, “VVX”, following the close of the transaction, which is expected to occur early in the third quarter of 2022.

Overwhelming Approval. The shareholder vote was not close. Approximately 90% of the 11,826,663 share eligible to vote, voted. Question 1, to approve the issuance of Company Common Stock as merger consideration pursuant to the Agreement and Plan of Merger dated as of March 7, 2022, received the support of 89.7% of the shares that voted. Question 2, to approve an amendment and restatement of the Articles of Incorporation of the Company to change its name to “V2X, Inc.”, received 96.0% approval of shares that voted….

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. 

Maple Gold Mines (MGMLF) – Eagle Phase I Drill Results Speak for Themselves; Phase II Drilling Underway

Posted on by Admin

Tuesday, June 21, 2022

Maple Gold Mines (MGMLF)
Eagle Phase I Drill Results Speak for Themselves; Phase II Drilling Underway

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

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

Outstanding Eagle Phase I drill results. Maple Gold reported assay results from the company’s Phase I drill program at its 100%-controlled Eagle Mine Property in Quebec, Canada. The Phase I program consisted of eight diamond drill holes, representing 4,462 meters of drilling, that tested potential extensions of mineralization along the past-producing Eagle-Telbel Mine Trend. A majority of Phase I drill holes contained at least one interval with greater than 1 gram of gold per tonne, with Hole EM-22-005 intersecting 4.0 grams of gold per tonne over 7.5 meters, including 6.4 grams of gold per tonne over 3.0 meters.

Phase II drilling underway. Data collected from the Phase I drilling is guiding the ~4,000 meter Phase II drilling program which is testing the Eagle-Telbel Mine Trend at greater depths. In aggregate, management expects to reach its goal of twelve drill holes, representing 8,200 meters of drilling, by the end of the quarter….

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 – Cypress Development Announces Positive Direct Lithium Extraction Results

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Cypress Development Announces Positive Direct Lithium Extraction Results

Research, News, and Market Data on Cypress Development

June 21, 2022 –
Vancouver, Canada – Cypress Development Corp. (TSXV: CYP) (OTCQX: 
CYDVF) (Frankfurt: C1Z1) ( “Cypress” or “the Company”) is pleased to announce positive results from the Direct Lithium Extraction (“DLE”) portion of its Lithium Extraction Facility (“Pilot Plant”) in Amargosa Valley, Nevada. Assays received from samples collected during continuous operating cycles in March, April, and May, 2022, revealed an average lithium recovery of 99.5% within the DLE portion of the Pilot Plant. These high lithium recoveries were accompanied with high levels of impurity rejection.

“We are very pleased with the DLE results from the Pilot Plant” said Bill Willoughby, Cypress President, and CEO. “Thanks to Chemionex, vendors of the DLE process, and the work of our team, the results are consistent over time and sufficient to give Cypress confidence in this part of our overall process. The information gained from the testing along with the license to the technology are important steps for Cypress and the ongoing Feasibility Study.”

The DLE area is one part in the Pilot Plant and consists of a proprietary process and equipment acquired from Chemionex, Inc. Overall, lithium extraction begins in the Pilot Plant with acid leaching a slurry of lithium-bearing claystone. The lithium solution obtained from leaching then passes through several steps before entering the DLE process. In continuous 24-hour-per-day tests from the end of March through mid-May 2022, lithium recoveries in the DLE portion were consistently above 99%. These high lithium recoveries were observed in 76 sets of feed and discharge samples. The samples were collected at 6-hour intervals over the operating periods and were assayed at ALS Global for lithium and other elements. Rejection of major cations, calcium and magnesium, during the period was also above 99%.

Based on these results, Cypress’ Board of Directors has authorized the release of one million Cypress shares being held in escrow to Chemionex, thereby satisfying the terms of its July 5, 2021, Share Purchase and License Agreement. With the completion of the purchase agreement, Cypress acquires full ownership of the equipment and a royalty-free license in perpetuity to use the Chemionex technology at its Pilot Plant and at the Company’s Clayton Valley Lithium Project. The shares released are subject to the policies of the TSX Venture Exchange.

Qualified Person

Todd Fayram, MMSA-QP, is the qualified persons as defined by National Instrument 43-101 and have approved of the technical information in this release.

About Cypress Development
Corp

Cypress Development Corp. is a Canadian based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Cypress is in the pilot stage of testing on material from its lithium-bearing claystone deposit and progressing towards completing a feasibility study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.

ON BEHALF OF CYPRESS
DEVELOPMENT CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & Chief Executive Officer

For further information,
please contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 764 1851 | Toll Free: 1 800 567 8181 | Email scacos@cypressdevelopmentcorp.com
www.cypressdevelopmentcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary Note Regarding
Forward-Looking Statements

This release includes
certain statements that may be deemed to be “forward-looking
statements”. Forward-looking statements are subject to risks,
uncertainties and assumptions and are identified by words such as “expects,” “estimates,”
“projects,” “anticipates,” “believes,” “could,” “scheduled,” and other similar
words. All statements in this release, other than statements of historical
facts, that address events or developments that management of the Company
expects, are forward-looking statements. Although management believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially from
those in the forward-looking statements. The Company undertakes no obligation
to update these forward-looking statements if management’s beliefs, estimates
or opinions, or other factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking statements, include
market prices, exploration, and development successes, continued availability
of capital and financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.


Two Main Types of Cryptocurrency Scams

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Image Credit: Mikhail Nilov (Pexels)


Insulating Your Portfolio from Cryptocurrency Scams

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It was written by and represents the research-based opinions of Yaniv Hanoch, Associate Professor in Risk Management, University of Southampton and Stacey Wood, Professor of Psychology, Scripps College..

When one of our students told us they were going to drop out of college in August 2021, it wasn’t the first time we’d heard of someone ending their studies prematurely.

What was new, though, was the reason. The student had become a victim of a cryptocurrency scam and had lost all their money – including a bank loan – leaving them not just broke, but in debt. The experience was financially and psychologically traumatic, to say the least.

This student, unfortunately, is not alone. Currently there are hundreds of millions of cryptocurrency owners, with estimates predicting further rapid growth. As the number of people owning cryptocurrencies has increased, so has the number of scam victims.

We study behavioral economics and psychology – and recently published a book about the rising problem of fraud, scams and financial abuse. There are reasons why cryptocurrency scams are so prevalent. And there are steps you can take to reduce your chances of becoming a victim.

Crypto Takes Off

Scams are not a recent phenomenon, with stories about them dating back to biblical times. What has fundamentally changed is the ease by which scammers can reach millions, if not billions, of individuals with a press of a button. The internet and other technologies have simply changed the rules of the game, with cryptocurrencies coming to epitomize the leading edge of these new cybercrime opportunities.

Cryptocurrencies – which are decentralized, digital currencies that use cryptography to create anonymous transactions – were originally driven by “cypherpunks,” individuals concerned with privacy. But they have expanded to capture the minds and pockets of everyday people and criminals alike, especially during the COVID-19 pandemic, when the price of various cryptocurrencies shot up and cryptocurrencies became more mainstream. Scammers capitalized on their popularity. The pandemic also caused a disruption to mainstream business, leading to greater reliance on alternatives such as cryptocurrencies.

A January 2022 report by Chainanalysis, a blockchain data platform, suggests in 2021 close to US$14 billion was scammed from investors using cryptocurrencies.

For example, in 2021, two brothers from South Africa managed to defraud investors of $3.6 billion from a cryptocurrency investment platform. In February 2022, the FBI announced it had arrested a couple who used a fake cryptocurrency platform to defraud investors of another $3.6 billion

You might wonder how they did it.

Fake Investments

There are two main types of cryptocurrency scams that tend to target different populations.

One targets cryptocurrency investors, who tend to be active traders holding risky portfolios. They are mostly younger investors, under 35, who earn high incomes, are well educated and work in engineering, finance or IT. In these types of frauds, scammers create fake coins or fake exchanges.

A recent example is SQUID, a cryptocurrency coin named after the TV drama “Squid Game.” After the new coin skyrocketed in price, its creators simply disappeared with the money.

A variation on this scam involves enticing investors to be among the first to purchase a new cryptocurrency – a process called an initial coin offering – with promises of large and fast returns. But unlike the SQUID offering, no coins are ever issued, and would-be investors are left empty-handed. In fact, many initial coin offerings turn out to be fake, but because of the complex and evolving nature of these new coins and technologies, even educated, experienced investors can be fooled.

As with all risky financial ventures, anyone considering buying cryptocurrency should follow the age-old advice to thoroughly research the offer. Who is behind the offering? What is known about the company? Is a white paper, an informational document issued by a company outlining the features of its product, available?

In the SQUID case, one warning sign was that investors who had bought the coins were unable to sell them. The SQUID website was also riddled with grammatical errors, which is typical of many scams.

Shakedown Payments

The second basic type of cryptocurrency scam simply uses cryptocurrency as the payment method to transfer funds from victims to scammers. All ages and demographics can be targets. These include ransomware cases, romance scams, computer repair scams, sextortion cases, Ponzi schemes and the like. Scammers are simply capitalizing on the anonymous nature of cryptocurrencies to hide their identities and evade consequences.

In the recent past, scammers would request wire transfers or gift cards to receive money – as they are irreversible, anonymous and untraceable. However, such payment methods do require potential victims to leave their homes, where they might encounter a third party who can intervene and possibly stop them. Crypto, on the other hand, can be purchased from anywhere at any time.

Indeed, Bitcoin has become the most common currency requested in ransomware cases, being demanded in close to 98% of cases. According to the U.K. National Cyber Security Center, sextortion scams often request individuals to pay in Bitcoin and other cryptocurrencies. Romance scams targeting younger adults are increasingly using cryptocurrency as part of the scam.

If someone is asking you to transfer money to them via cryptocurrency, you should see a giant red flag.

The Wild West

In the field of financial exploitation, more work has been done to study and educate elderly scam victims, because of the high levels of vulnerability in this group. Research has identified common traits that make someone especially vulnerable to scam solicitations. They include differences in cognitive ability, education, risk-taking and self-control.

Of course, younger adults can also be vulnerable and indeed are becoming victims, too. There is a clear need to broaden education campaigns to include all age groups, including young, educated, well-off investors. We believe authorities need to step up and employ new methods of protection. For example, the regulations that currently apply to financial advice and products could be extended to the cryptocurrency environment. Data scientists also need to better track and trace fraudulent activities.

Cryptocurrency scams are especially painful because the probability of retrieving lost funds is close to zero. For now, cryptocurrencies have no oversight. They are simply the Wild West of the financial world.


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Powell’s Statements to Congress Emphasized the Fed’s Resolve to Win Against Inflation

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Image Credit: C-Span


Powell Caught Between Competing Political Agendas and Economic Reality

Twice a year, the head of the Federal Reserve goes before the Committee on Banking, Housing, and Urban Affairs, of the U.S. Senate. The Chair delivers prepared remarks and then answers questions from members of the attending committees. Over the years, the Fed has gone from tightly guarding monetary policy plans to being as transparent as possible. In either case, as the nation’s top economist, they know if they say one wrong word during questioning, there can be significant shifts in the markets, and changes in all-around confidence globally. It’s perilous, and the challenge is even greater as they are economists that understand their role at a very high level, but they are taking questions from politicians that may have other priorities.

Chair Powell spoke about the overall economy, monetary policy, inflation, recession, and the terminal rate, or the highest rate expected during this tightening cycle.  He was unequivocal in his resolve to bring down inflation. In his opening remarks he began with, “At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so. We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.”

The Federal Reserve Chair believes it is possible to effectively reel in inflaton without entering a recession, but it became clear through the question and answer session that he would allow a recession if that is the solution to the inflation battle.

Overall Economy

Inflation remains well above the Fed’s longer-run goal of a modest 2%. In the 12 months ending April 2022, Powell pointed out that inflation, as measured by the PCE deflator, rose 6.3 percent. He indicated he believes the pace has held and that consumer demand is strong. The supply problems he admitted have been larger and longer-lasting than expected. He also noted that price pressures have spread to a broad range of goods and services. The surge in crude oil prices and other commodities from Russia’s invasion of Ukraine is also boosting prices for fuel and is placing even greater upward pressure on inflation.

Additionally, new Covid-19-related lockdowns in China will add to global supply problems.  Powell pointed out that the U.S. is not alone in dealing with inflation,  prices also increased rapidly in many foreign economies.

He believes GDP measured growth which was negative over the first quarter has picked up during the second quarter. Consumption spending remains strong, and the job market is on firm ground. He said he sees signs of business fixed investment slowing, and activity in housing softening. These were not characterized as bad during his testimony as tempered demand can better match supply and lead to a sustainable balance.

The Fed takes particular comfort with strong labor markets, it gives them room to work. The unemployment rate is near a 50-year low, job vacancies are at historical highs, and hourly earnings are up. Labor demand is very strong, while labor supply remains subdued, with the labor force participation rate little changed since January.

Monetary Policy

The Fed’s monetary policy actions are guided by its mandate to promote maximum employment and stable prices in the U.S. economy. Fed Powell said in his prepared remarks, “My colleagues and I are acutely aware that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials like food, housing, and transportation. We are highly attentive to the risks high inflation poses to both sides of our mandate, and we are strongly committed to returning inflation to our 2 percent objective.”

In orchestrating lower inflation The Fed chair said he expects further rate increases will be appropriate, and the pace of the increases will depend on incoming data and outlook. During the last FOMC meeting, the Fed hiked the overnight lending rate by .75%, this was higher than earlier Fed guidance, it is presumed that increasing inflation conditions drove the higher than foretold increase. It sounds as though Powell is warning that they will continue to do what’s appropriate when they feel it’s appropriate —  situations change.

“Setting appropriate monetary policy in this uncertain environment requires a recognition that the economy often evolves in unexpected ways. Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We, therefore, will need to be nimble in responding to incoming data and the evolving outlook. And we will strive to avoid adding uncertainty in what is already an extraordinarily challenging and uncertain time. We are highly attentive to inflation risks and determined to take the measures necessary to restore price stability. The American economy is very strong and well-positioned to handle tighter monetary policy,” Powell said in opening remarks.

 Inflation

The Federal Reserve Chair believes it is possible to effectively reel in inflation without entering a recession, but it became clear through the question and answer session that the Fed places inflation concerns and the impact on the economy, ahead of recession risks.

As part of the discussion, members of Congress, especially those with more conservative leanings, hammered the inflation issue, pointing to stimulus spending sanctioned by the White House, and energy decisions that have reduced supply. Conservative members of the Senate also criticized the Fed for delaying drastic action on curbing inflation.

Other members of Congress dwelled more on outside issues that have impacted inflation and asked whether interest rates could have an impact on the increasing price of food, and energy. “A Fed increase won’t bring down these prices,” said Sen. Elizabeth Warren. “And why? Because rate hikes won’t make Vladimir Putin turn his tanks around and leave Ukraine. Rate hikes won’t break up monopolies, rate hikes won’t straighten out the supply chain or speed up ships or stop a virus that is still causing lockdowns in some parts of the world.”

Powell doesn’t believe the economy has “seen the full effect” of Covid-19 lockdowns.

 Recession

Some members of Congress see a political advantage in faster monetary-policy tightening. For some, a more hawkish Fed up front could put out the fire sooner and reduce damage from inflation. This would likely mean an upfront recession. For those that can’t resist viewing any activity as political, the November mid-term elections may be won or lost on the pace of the economy and the rate of inflation. The party in power in both Congress and the White House would not benefit from rising rates and a weakening economy.

For Powell’s part, what is most telling is that he did not seem overly concerned about the risk of slower or negative economic growth. He continued to emphasize inflation, fighting the price increases, and doing everything possible to avoid prolonged weakness while prioritizing bringing inflation down to a 2% target.  

 Terminal Rate

At Wednesday’s testimony, Powell estimated the longer-run neutral rate for Fed funds should be about 2.5%. He also continued to emphasize that in his estimate it would be appropriate to raise rates to a restrictive level to curb inflation. There was some talk about the Taylor Rule, which is a theoretical formula that suggests the Fed should adjust overnight rates by an amount equivalent to the spread between measured inflation and the desired inflation rate (presumed to be 2%). To this, the Fed’s Chair indicated that economics is more of an art than science. The current situation according to Powell is unique and has its own dynamics that include the war in Ukraine supply issues, Covid-19 lockdown effects, and stock and bond markets that benefitted from injections to stimulate during the pandemic.

Paul Hoffman

Managing Editor, Channelchek

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https://www.federalreserve.gov/newsevents/testimony/powell20220622a.htm

https://youtu.be/ULTY9NVtLxw

www.investopedia.com/terms/t/taylorsrule.asp

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