Month: July 2022

Release – Voyager Digital Provides Update on Listing of its Shares

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Voyager Digital Provides Update on Listing of its Shares

Research, News, and Market Data on Voyager Digital

NEW YORK, July 15, 2022 /CNW/ – Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTC: VYGVQ) (FRA: UCD) today announced that common shares of the Company have resumed trading on the OTC Pink Sheets under the new ticker symbol “VYGVQ.” Due to the Company’s July 5, 2022, bankruptcy filing, Voyager no longer qualifies to trade on OTCQX International.  

Trading of the Company’s common shares on the OTC was initially halted on July 7, 2022, when Voyager notified the Toronto Stock Exchange (the “TSX”) that the Company would voluntarily delist its common shares from the TSX. The Company took this action in response to a notification from the TSX that the TSX would review the eligibility of the Company’s common shares for continued listing on TSX as a result of the Company and its main operating subsidiaries filing voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court of the Southern District of New York.

The resumption of trading on the OTC Pink Sheets and the voluntary delisting of the Company’s common shares on the TSX have no impact on the Company’s continued business operations.

Additional information regarding the ticker symbol change can be found at www.otcmarkets.com/stock/VYGVQ/security.

Parties with questions about the chapter 11 process may contact the Company’s Claims Agent, Stretto, at +1 (855) 473-8665 (toll-free in the U.S.) or +1 (949) 271-6507 (for parties outside the U.S.). They have also set up a website at 
http://cases.stretto.com/Voyager, which includes court documents and other information.

About Voyager Digital
Ltd.

Voyager Digital Ltd.’s (TSX: VOYG) (OTC Pink: VYGVQ) (FRA: UCD) 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 the restructuring process, the restructuring Plan, available remedies for recovery from 3AC, intended filings as part of the restructuring process, resumption of account access, return of value to customers, the ability of Voyager to continue as a going concern, exploration of strategic alternatives, discussions with third parties in respect of strategic alternatives and the results of those discussions, the temporary nature of the suspension of the platform, future growth and performance of the business, the exploration of strategic alternatives, future adoption of digital assets, anticipated trends and challenges in our business and industry, the regulation of digital assets offerings, the impact of the 3AC default on the Company, the Company’s liquidity and ability to satisfy customer orders and withdrawals 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. It is uncertain as to the timing or results of the restructuring process or the terms of the final restructuring plan, when account access will resume, the value to be returned to customers, 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, the results of the restructuring process and the terms of the restructuring plan, if such a plan is ultimately agreed to, the results from the exploration of strategic alternatives, the inability to resume trading, deposits, withdrawals and rewards on the platform in a timely manner, an inability to drawdown under the credit facility or access other sources of financing, an increase in customer demands for withdrawals from the platform, any insolvency or similar proceedings with respect to 3AC, our ability to find a strategic alternative, 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. 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 assets.

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

Press
Contacts

Voyager
Digital, Ltd.

Voyager Public Relations Team
pr@investvoyager.com

SOURCE Voyager Digital Ltd.


Biotech Stocks Outperformance Factors – Will they Continue?

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Image Credit: CDC (Pexels)


Is Biotech’s Outperformance Reaching a New Stage of Development?

The biotech investment sector has always been its own market, very distinct from other sectors. So it was no surprise that when most sectors turned slowly upward after the pandemic-inspired crash, Biotech (XBI) rose 164%, exceeding the overall market (SPY) performance by triple digits. Then, about 11 months from biotech’s launch to the stratosphere, it took its own path downward even though the overall market continued upward for another 11 months. In recent weeks the overall market has been trading sideways after hitting a YTD low on June 16th. Over the same short period, the biotech sector has gained double-digits.

This past June 13th, the SPDR biotech ETF formed a technical double bottom (May 11/Jun 13) and has since risen near 30% in one month’s time. It was obvious what drove these stocks higher during the pandemic. The enthusiasm for modern medicine was at a peak with the news on most people’s minds each day. But what is driving this sector’s heights now, and will it continue? 

What’s Happening

Since the start of the current upturn on June 13, the XBI is up 28.4%, after biotech’s period of being among the most beaten down sectors most of the year. The XBI would still have to rise by another 25% to reach breakeven on the year. Some investors think that its slide was overdone and are now allocating more to the biotech sector.


Source: Koyfin

In a note on Thursday (July 14), Piper Sandler analyst Christopher Rayment said $1.1 billion in net new money, the second-highest total this year, flowed into funds focused on healthcare and biotech for the week ended July 6. One catalyst for the increase could be reports from The Wall Street Journal that Merck (MRK) may be involved in a $40 billion purchase of the biotech Seagen (SGEN), a cancer-focused drugmaker. Also, the FDA approval scientists are less bogged down with pandemic-related entries and can begin to move forward, business as usual, with their approval studies.

The Seagen deal could further increase investor interest in the sector as the Merck name will likely keep it in the headlines. And perhaps it is time that biotechs regain attention, they are far cheaper than they have been in years.

Recent biotech deals receiving less attention are:

  • La Jolla Pharmaceuticals (LJPC) on July 11, acquired by Innoviva at an 84% premium
  • Epizyme (EPZM) on June 27, acquired by Ipsen at a 53% premium
  • F Star Therapeutics (FSTX) on June 23, acquired by invoXPharma at a 122% premium
  • TherapeuticsMD (TXMD)on May 31, acquired by EW Healthcare Partners at a 367% premium

The pace of acquisitions, just past the halfway point of the year, is running above the previous four years. The category impacted most often in each of the five periods is oncology.


* The data is limited to deals valued at a minimum of $50 million upfront. Total consideration can reflect both cash and equity offered upfront in exchange for the acquired company’s shares, but deals in which the upfront payment was not specified, or was less than $50 million, are not included.

Since the June 13 turn upward, other companies in this space that generated double-digit returns for shareholders, near or above XBI are:

  • Imugene (IUGNF) up 53.7%
  • PDS Biotechnology (PDSB) up 33.4%
  • Ocugen (OCGN) up 27.5%
  • Lineage Cell Therapeutics (LCTX)up 19.2%


Source: Koyfin

Take Away

The biotech sector is not highly correlated with the overall market. During periods of market weakness, it is a good idea to look at less-correlated sectors to determine if there is relative strength and opportunity.

Biotech investors often look to a company’s pipeline to determine where it may be in developmental stages to determine if a valuation-changing breakthrough could be near. Astute investors also try to find gains by investing in companies with the potential of being acquired. The current scenario where huge pharmaceutical companies are sitting with cash at very high valuations, and biotech firms have been beaten down, creates a recipe for increased mergers and acquisitions. Also, many biotechs that rely on capital raises to get them through the long R&D or approval stage find it more difficult to raise capital when their stock trades very low. These companies with a worthwhile pipeline are now very attractive to large better-capitalized companies. For the small biotech companies, they may be more willing than ever to be acquired to keep their treatment development on track.

In the business of drug development, deals are as important as medical breakthroughs. Many of today’s most influential medicines might not have made it to the finish line without a timely partnership or acquisition.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://app.koyfin.com/share/dd2a65e582

https://www.thestreet.com/investing/cathie-wood-ark-buys-biotech

https://www.wsj.com/articles/merck-is-in-advanced-talks-to-buy-seagen-11657160827

https://www.wsj.com/articles/merck-eyes-purchase-of-biotech-seagen-11655476223?mod=article_inlin

https://www.pipersandler.com/2col.aspx?id=7&analystid=2284

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Release – Noble Capital Markets Initiates Equity Research Coverage on Direct Digital Holdings

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Noble Capital Markets Initiates Equity Research Coverage on Direct Digital Holdings

Research, News, and Market Data on Direct Digital Holdings

HOUSTON, July 15, 2022 /PRNewswire/ — Direct Digital Holdings (Nasdaq: DRCT) (“Direct Digital”), a leading advertising and marketing technology platform, is pleased to announce that Noble Capital Markets has initiated company-sponsored equity research coverage on the Company. The full report by Noble Capital Markets Senior Research Analyst Michael Kupinski, as well as news and advanced market data on Direct Digital Holdings, is available on Channelchek.

About Direct Digital
Holdings

Direct Digital Holdings (Nasdaq: DRCT) brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. The holding group’s sell-side platform Colossus SSP offers advertisers of all sizes extensive reach within general market and multicultural media properties. Its operating companies Huddled Masses and Orange142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare and travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions manage approximately 70,000 clients monthly, generating over 90 billion impressions per month across display, CTV, in-app and other media channels. The company has been named a top minority-owned business by The Houston Business Journal (“HBJ”).

About Noble Capital
Markets

Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 37 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com

About Channelchek

Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. 
www.channelchek.com email: contact@channelchek.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/noble-capital-markets-initiates-equity-research-coverage-on-direct-digital-holdings-301587228.html

SOURCE Direct Digital Holdings

 


Release – ACCO Brands Corporation Announces Second Quarter 2022 Earnings Webcast

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ACCO Brands Corporation Announces Second Quarter 2022 Earnings Webcast

Research, News, and Market Data on ACCO Brands

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that it will release its second quarter 2022 earnings after the market close on August 8, 2022. The Company will host a conference call and webcast to discuss the results on August 9 at 8:30 a.m. EST. The webcast can be accessed through the Investor Relations section of www.accobrands.com and will be available for replay.

About ACCO Brands
Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Julie McEwan
Media Relations
(937) 974-8162

Source: ACCO Brands Corporation


Release – Cocrystal Pharma Reports CC-42344 Pharmacokinetic Data in Influenza A Once-Daily Dosing

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Cocrystal Pharma Reports CC-42344 Pharmacokinetic Data in Influenza A Once-Daily Dosing

Research, News, and Market Data on Cocrystal Pharma

Single Ascending Dose Portion
of Phase 1 Study Completed

BOTHELL, Wash., July
14, 2022 (GLOBE NEWSWIRE) — Cocrystal
Pharma, Inc. (Nasdaq: COCP) (“Cocrystal” or the “Company”) announces that pharmacokinetic (PK) data from the single ascending dose portion of a Phase 1 study with its novel, broad-spectrum, orally administered antiviral candidate 
CC-42344 for the treatment of pandemic and seasonal influenza A support the potential for once-daily dosing. The single ascending dose portion of the Phase 1 study has been completed and subjects are currently being enrolled in the multiple ascending dose portion of the Phase 1 study.

“The PK data from single ascending dose portion of the trial mark a major milestone in the development of CC-42344’s as our drug holds potential to be administered once a day, less frequently than the leading influenza treatment Tamiflu®,” said Sam Lee, Ph.D., Cocrystal’s President and co-interim CEO. “Unlike the mechanism of action of existing influenza A treatments, CC-42344 is a PB2 inhibitor that blocks an essential step of influenza viral replication and transcription. Completed in vitro testing demonstrated potent antiviral activity against prevalent influenza A strains resistant to the two approved influenza treatments Tamiflu® and Xofluza®.”

The randomized, double-controlled, dose-escalating Phase 1 study being conducted in Australia is intended to assess the safety, tolerability and pharmacokinetics of 
CC-42344 in healthy adults. In March 2022 Cocrystal announced the initiation of study enrollment and in April 2022 the Company announced preliminary Phase 1 data demonstrating a favorable safety and PK profile in the first two cohorts administered single ascending doses of 100 mg and 200 mg.

About Cocrystal
Pharma, Inc.
Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of influenza viruses, coronaviruses (including SARS-CoV-2), hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.

Cautionary Note
Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential for CC-42344 to be developed for once-daily use and possible advantages over competitive treatments of influenza. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events. Some or all of the events anticipated by these forward-looking statements may not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to, the availability of federal government funding and budgetary issues that may arise, the risks and uncertainties arising from any future impact of the COVID-19 pandemic including in Australia, the Russian invasion of Ukraine, and/or inflation and Federal Reserve interest rate increases in response thereto on the global economy and on our Company, including supply chain disruptions and our continued ability to proceed with our programs, the ability of the contract research organization to recruit patients into clinical trials, and the results of the multiple ascending dose portion of the Phase 1 study for CC-42344. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Contact:
LHA Investor Relations
Jody Cain
310-691-7100

jcain@lhai.com

Media Contact:
JQA Partners
Jules Abraham
917-885-7378


Jabraham@jqapartners.com


Release – Gevo to Report Second Quarter 2022 Financial Results on August 8, 2022

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Gevo to Report Second Quarter 2022 Financial Results on August 8, 2022

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., July 14, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on Monday, August 8, 2022, at 4:30 p.m. EDT (2:30 p.m. MDT) to report its financial results for the second quarter ended June 30, 2022 and provide an update on recent corporate highlights.

To participate in the live call, please register through the following event weblink: 
https://register.vevent.com/register/BI82c9f363e71c46baa4a8d5e9764fcdbd. After registering, participants will be provided with a dial-in number and pin.

To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/65vvqgmx.

A webcast replay will be available two hours after the conference call ends on August 8, 2022. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have the potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Media Contact
Heather Manuel
+1 720-418-0085
IR@gevo.com

 


CFAs at Odds with Each Other as the Institute’s Members Vote to Alter its Constitution

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Image Credit: Pixabay (Pexels)


Polls Closing for CFAs Voting to Alter the Institute’s Framework

Forbes Magazine once called CFAs (Chartered Financial Analysts) “The Rock Stars of Finance.” Each year the CFA Institute consisting of 195,000 financial analysts that have succeeded in acquiring one of the top designations in investment and finance, holds its annual meeting. This year’s meeting has created significant disunity among CFAs. The division in thought is with three of the 11 proxy votes. 

Along with the election of four governors and a Chair and Vice Chair, charter holders vote on proposals. This year three of those proposals could serve to change the Institute’s Constitution. One of them would provide for new degrees or classes of membership. This doesn’t sit right with many of the current members that are casting their ballots.

Annual CFA meetings are rarely controversial. However, this year, some of the organization’s 160 regional societies have recommended that their members vote against some of these proposals. 

Battle of the CFAs

The CFA exam is a three-part test, usually taken over as many years. The pass rate for each of the three test levels is quite low. Since 2010 Level 1 ranges from 22%-49%, with an 11-year average of 39%; Level 2 ranges from 29%-55%, with an 11-year average of 44%; Level 3 ranges from 39%-56%, with an 11-year average of 50%. Some financial analysts, who have spent years working to earn the difficult and extremely coveted CFA credential, are pushing back against the CFA Institute’s attempt to become more inclusive and broaden its influence.

Members have until today (July 14) to vote on 11 proposals. This year the Institute’s board is asking for the flexibility to “change quickly and make a lot of changes” without input from its vast membership. This would have the effect of changing the organization’s bylaws.  

Voting Against

A significant number of members of the Chartered Financial Analyst community are voting against the institute’s current governing body by planning to vote against some of the proposals, which they argue would open the door to adding new classes of membership to people who haven’t taken the CFA exam, making the credential less valuable and diminishing the reputation of the Institute.

The overall mindset of those voting against is partly the lack of clarity or definition in the proposals. The concern is it would increase the organization’s flexibility, allowing it to make decisions rapidly without consulting members.

One member and former president’s council representative, Richard Mundinger, told Institutional Investor he is not surprised by the attention CFA members are paying to the proposal.    

“Everybody is an analyst,” Mundinger said, adding that analysts have spent time combing through the 108-page prospectus to determine how to vote and how the proposals will affect the value of their CFA credential. 

Supporter of the Change

The CFA governing board says the changes are mostly semantic changes that won’t affect how it operates. There are no new classes of CFA designations or membership yet.

“CFA Institute has many constituents, including the hundreds of thousands of candidates who take our exams every year but who do not qualify for membership either because they have not yet passed all three levels or because they do not have the required work experience,” Matthew Hickerson, CFA Institute’s head of global media relations and executive communications said to Institutional Investor. “This proposal simply acknowledges the reality of who we serve today, which represents a footprint that is considerably larger than our core charter holder base,” he added. “Full members will remain the only group that can vote.”

The CFA Institute said the passage of the proposal wouldn’t change how the organization operates. 

“It does not remove or diminish the rights of any stakeholder group,” Hickerson said. “The proposed changes preserve the important roles of members and societies, who continue to be featured in detail by the provisions of the CFA Institute Bylaws.” 

Take Away

The CFA Institute Board of Governors, in an attempt to gain more flexibility in directing the organization, is running up against voters who are “Rock Stars” when it comes to analyzing the value of proposals. Many have developed strong opinions and are not afraid to place their thoughts above that of the governing board. 

The board strongly disagrees that the CFA Institute brand is altered in a way by these proposals that would de-emphasize the Chartered Financial Analyst members.  

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://www.cfainstitute.org/en/about/governance

https://www.forbes.com/advisor/investing/cfa-chartered-financial-analyst/

https://www.institutionalinvestor.com/article/b1ywdnfxh9hz34/A-Clash-Between-the-CFA-Institute-and-Its-Members-Illuminates-the-Professional-Power-of-the-Credential

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Why Oil Prices Dropped to Pre-Ukraine War Levels

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Image Credit: Maureen (Flickr)


The Expected Slower Economy is Bringing Oil Prices Down

Oil is now below the level it was trading at on February 24 when Russia announced it would launch a “special military operation” within Ukraine. The price of oil dropped below $100 Bbl this week as an economic slowdown is built into the price models of commodity traders. Global growth forecasts were cut again on Wednesday (July 13) by the International Monetary Fund (IMF). This is the second growth forecast cut since April as the world’s economies face a myriad of risk factors. 


Source: Koyfin

One factor impacting IMF forecasts is the extreme pace of inflation in the US. A report of a Year-over-year pace of consumer inflation released this week shows prices have risen by 9.1% from June of last year. The actual pace of inflation has steepened in the past several months. Lower fuel prices, should they hold, may serve to temper the headline CPI number over the coming months.

However, the  Federal Reserve has indicated its resolve to stave off inflation by not taking half measures that prolong the problem. The acceleration of consumer prices has some economists and the futures market indicating some expect a full 100bp increase in overnight rates after the next meeting.

One of the advocates of a more aggressive Fed is Mohamed El-Erian, the Chief Economic Advisor at Allianz. El-Erian forecasted Wednesday that the Fed could raise interest rates by 100 basis points to stem historically high prices.

“The Fed now has no choice but to respond aggressively,” El-Erian wrote in a column for the Financial Times. “It is sure to increase interest rates by 0.75 percentage points later this month and could well consider a 1 percentage point rise.”

Meanwhile, those who wish to reduce Russian cash flow from petroleum sanctions may find the expected reduced demand due to a global recession a cause to rejoice. In 2021 Russia accounted for 13% of the world’s production of petroleum, the US produced 17%.

Drivers should find the price at the pumps level off some under the current conditions. If, however, the economic pace accelerates, the demand for oil may outstrip any spare production capacity they may have. This would push oil upward and could lead other prices even higher.

Take Away

Some self-correcting mechanisms in the world’s markets are creating an environment where slowing economies and forecasts for further slowing have caused commodities traders to reduce the prices they are willing to pay for oil. The lower prices and reduced demand could put a crimp on cash flow into the Russian economy.

Prices have dropped below the level they had been trading at before the war started. This could help slow the pace of inflation.

Paul Hoffman

Managing Editor, Channelchek

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Suggested Reading

https://www.reuters.com/markets/commodities/recession-would-make-tough-oil-sanctions-russia-more-likely-kemp-2022-07-14/

https://www.ft.com/content/f8185c63-72c0-479d-80e9-e9c0bf8eb8c5

https://markets.businessinsider.com/news/commodities/oil-price-today-crude-preinvasion-levels-100-recession-fears-economy-2022-7

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Release – Seanergy Announces Delivery & Employment of Recent Capesize Acquisition and New Financings of $44 million

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Seanergy Announces Delivery & Employment of Recent Capesize Acquisition and New Financings of $44 million

Research, News, and Market Data on Seanergy Maritime

July 7, 2022 – Glyfada, Greece – Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) reported today the delivery of the recently-announced Capesize vessel acquisition, M/V Honorship, and the simultaneous commencement of its period employment. Moreover, Seanergy successfully concluded a new sustainability-linked loan for the M/V Honorship and a new loan facility for the 2010-built M/V Dukeship.

Delivery & Time-charter (“T/C”) of the M/V
Honorship

As recently announced, the 180,000 deadweight-ton, Japanese-built M/V Honorship has been delivered to the Company and immediately commenced its T/C with NYK Line. The T/C has a duration of about 20 to 24 months and the daily hire is based at a premium over the Baltic Capesize Index (“BCI”). The Company has the option to convert the daily hire from index-linked to fixed for a period of 2 to 12 months based on the prevailing Capesize freight futures (“FFA”) and by applying the same premium. The acquisition of the vessel was financed with cash on hand and proceeds from new loan facilities discussed below.

Sustainability-linked facility for the M/V Honorship

The Company has concluded a second sustainability-linked senior credit facility with a major European bank by upsizing and refinancing the existing loan secured by the M/V Worldship at improved terms. The new sustainability-linked loan facility of $38 million is secured by the M/V Worldship and the newly acquired vessel M/V Honorship.

The $38 million principal will amortize over a five-year term through quarterly instalments averaging $1.08 million and a $16.5 million final balloon payment at maturity. The interest rate is 3.00% plus LIBOR per annum and can be further reduced based on certain emission reduction thresholds.

Financing facility of the M/V Dukeship

In addition, Seanergy concluded a senior loan facility with a major European bank and one of its existing lenders secured by the M/V Dukeship. The $21.0 million loan bears interest rate of 2.95% plus SOFR per annum, has a four-year term and will be repaid through 16 quarterly instalments averaging $0.625 million and a $11 million final balloon payment at maturity.

Stamatis Tsantanis, the Company’s Chairman & Chief
Executive Officer, stated:

“We are very pleased with the prompt delivery of our 18 th Capesize vessel, which improves the average age and the operating premium of our fleet. The M/V Honorship already commenced its period employment with one of our close partners. “Our fleet remains 100% under period employment, with the vast majority on index-linked T/Cs and most of them accompanied by the option to convert to fixed rates. “Moreover, the ability to conclude two new facilities with the Company’s existing creditors at more favorable terms attests to their confidence in Seanergy and its prospects. “Finally, we have expanded our sustainability-linked loan portfolio, reiterating our commitment to our ESG agenda.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of approximately 12 years and aggregate cargo carrying capacity of approximately 3,020,012 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”.

Please visit our company website at: www.seanergymaritime.com.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including statements regarding the anticipated spin-off of United. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the impact of regulatory requirements or other factors on the Company’s ability to consummate the proposed spin-off; the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from war (or threatened war) or international hostilities, such as between Russia and Ukraine; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations

Tel: +30 213 0181 522

E-mail: ir@seanergy.gr

Capital Link, Inc.

Paul Lampoutis

230 Park Avenue Suite 1540

New York, NY 10169

Tel: (212) 661-7566

E-mail: seanergy@capitallink.com


Release – Engine Gaming & Media, Inc. Reports Fiscal Third Quarter 2022 Financial Results

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Engine Gaming & Media, Inc. Reports Fiscal Third Quarter 2022 Financial Results

Research, News, and Market Data on Engine Gaming & Media

Fiscal Q3 2022 Revenues Increased 16% YoY to $9.2 million

For the Nine-Month Period, Revenues Increased 36% to $30.5 million

Continued Growth in SaaS Businesses of 22% YoY to $2.0 million

Significant Improvement in Net Income of $1.6 million to $8.8
million YoY

NEW YORK, NY / ACCESSWIRE / July 14, 2022 / Engine Gaming and Media, Inc. (“Engine” or the “Company”) (NASDAQ:GAME) (TSX-V:GAME), a data-driven, gaming, media and influencer marketing platform company, today announced results for its fiscal third quarter 2022 ended May 31, 2022. All amounts are stated in U.S. dollars unless otherwise indicated.

FY Q3 2022 Financial Highlights:

  • Total revenue increased 16% to $9.2 million in the fiscal third quarter of 2022, compared to $8.0 million in the same year-ago quarter. For the nine-month period, revenue increased 36% to $30.5 million
  • Growth of 22% year-over-year to $2.0 million in the Company’s SaaS businesses and 30% for the nine-month period ended May 31, 2022, compared to the same period in 2021.
  • Net Income improved significantly to $8.8 million in the fiscal third quarter of 2022, compared to net income of $1.6 million in the same year-ago quarter. For the nine-month period net income of $735,610 compared to a net loss of $25.8 million in the year ago comparable period.
  • Fortified balance sheet on April 7, 2022, by completing the strategic sale of its subsidiary, Eden Games, for net proceeds of $15.3 million
  • Subsequent to quarter end, Company completed the divesture of its UMG Gaming subsidiary, along with a series of actions being taken expected to eliminate approximately $16.0 million of annualized cash operating expenses by the end of the calendar year

Management Commentary

“The third quarter was highlighted by continued top-line growth in our SaaS businesses generating $2.0 million of revenue, compared to $1.6 million in the same period a year ago as we continue to capture growth across our influencer marketing and data platforms, and as we continue to attract new clients and partnerships. These platforms are high growth opportunities that generate strong margins and increased visibility for the Company,” commented Lou Schwartz, Chief Executive Officer of Engine. “We continue to aggressively sharpen the focus of the business, evident in the strategic sale of Eden Games, which provided net proceeds of $15.3 million. In addition, subsequent to quarter end, we divested our B2C peer sports gaming business, UMG. Our efforts remain focused on execution as we make significant strides towards our goal of achieving run rate breakeven in 2023.”

Tom Rogers, Executive Chairman of the Company, added, “The work we have done to position ourselves to achieve cash flow breakeven will serve us well within the difficult macroeconomic environment that most likely lies ahead. Importantly, it is becoming incredibly clear that our core businesses are situated to benefit from numerous macro sector growth trends – bridging gaps within the digital advertising and marketing landscapes, particularly within the rapidly growing social influencer space. Ultimately, as we execute our strategy all constituencies of Engine, we believe will be rewarded with significant value creation.”

FY Q3 2022 and Year-To-Date Financial Results

Total revenue in the fiscal third quarter of 2022 increased 16% to $9.2 million, compared to $8.0 million in the same year-ago quarter. The increase was driven by a 22% increase in Software-as-a-Service (“Saas”) revenue to $2.0 million from $1.6 million in the year ago comparable quarter and Advertising revenue of $7.2 million, compared to $6.4 million in the comparable year ago period. For the nine months ended May 31, 2022, total revenue increased 36% to $30.5 million from $22.5 million in the same year-ago period.

Expenses in the fiscal third quarter of 2022 were $14.9 million, an improvement of approximately $0.9 million, when compared to $15.8 million on a sequential basis. The Company’s run rate expense reduction at the end of the current calendar year going forward is expected to be substantially improved by virtue of approximately $16.0 million of cash expenses being eliminated relative to a year ago on a go forward basis. As the reductions are still in process, subsequent quarters will see the result of these planned cost reductions.

Net Income in the fiscal third quarter improved significantly to $8.8 million, compared to a net income of $1.6 million, in the same year-ago quarter. For the nine months ended May 31, 2022, net income improved significantly to $0.7 million, compared to a net loss of $25.8 million, in the same year-ago period, an improvement of $26.6 million. These improvements in net income above were largely driven by the gain on the disposal of Eden Games recognized in the fiscal third quarter of 2022 of $15.1 million.

Adjusted EBITDA improved on a sequential bases to $(5.2) million in the fiscal third quarter of 2022, compared to $(6.1) million in fiscal second quarter of 2022, an improvement of approximately $1.0 million. Due to the continued elimination of cash operating expenses related to B2C businesses and other cost measures, Adjusted EBITDA is expected to continue to substantially improve.

At May 31, 2022, the Company had cash of $13.7 million.

Recent Operational Highlights:

  • Engine subsequent to quarter end, divested its UMG Gaming subsidiary. This transaction, along with other actions being taken, is expected to further reduce cash expenditure by approximately $16 million on a year over year basis.
  • Stream Hatchet signed new commercial agreements with AAA game publishers including Epic Games, Activision, Electronic Arts, and Take-Two; esports teams such as Faze Clan; and major endemic and non-endemic gaming brands Nestle, NVIDIA, and Benefit Cosmetics. The most recent Brands in Gaming and Esports Report
    is     accessible here.
  • Sideqik released major updates to its creator relationship management and influencer marketing platform. Sideqik also signed commercial extensions and added Nike, Universal Music Group, Turtle Beach, Cartoon Network, and subsequent to quarter end, Fanatics, to its vast and growing list of blue-chip companies leveraging their suite of influencer marketing and social commerce technology.
  • Frankly Media continues to optimize its advertising solutions technology, now working with over 50 demand partners to monetize video (Live, VOD, and CTV), display, and mobile in-app including theTradeDesk, Amazon, and Criteo. Frankly increased both CPMs and RPMs by 27% and 13% respectively during the third fiscal quarter compared to the same period a year ago.

FY Q3 2022 Earnings Conference Call

Management will host an investor conference call at 4:30 p.m. EDT (1:30 p.m. PDT) today, Thursday, July 14, 2022, to discuss Engine Gaming and Media, Inc.’s fiscal third quarter 2022 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Date:

Thursday, July 14, 2022

Time:

4:30 p.m. Eastern time

Dial-in:

1-877-407-0784

International Dial-in:

1-201-689-8560

Conference Code:

13730453

Webcast:

GAME Conference Call

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

Non-IFRS Measures

The Company reports earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA, which are not financial measures calculated and presented in accordance with International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presented by other issuers. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute to net income (loss) or any other financial measures of performance or liquidity calculated and presented in accordance with IFRS. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude certain non-cash charges and other items that we do not believe are reflective of our ongoing operating results. The Company utilizes Adjusted EBITDA internally for purposes of forecasting, determining compensation, and assessing the performance of our business, therefore, we believe this measure provides useful supplemental information that may assist investors in assessing an investment in the Company.

The following unaudited table presents the reconciliation of net loss to Adjusted EBITDA for the three and nine months ended May 31, 2022 and 2021, respectively.

For
the three months ended

For
the nine months ended

Note

May 31, 2022

May 31, 2021

May 31, 2022

May 31, 2021

Net loss attributable to
owners of the Company

8,821,299

1,572,052

735,610

(25,774,646)

Interest expense

228,348

209,755

641,785

1,113,749

Amortization and depreciation

(a)

798,286

743,942

2,394,653

2,230,424

Restructuring Costs

–

–

35,747

–

Share-based payments

(a)

1,001,449

680,153

3,577,861

2,459,841

Loss on foreign exchange

4,317

717,063

97,167

993,536

Loss on extinguishment of debt

(a)

–

–

–

2,428,900

Gain on retained interest in former associate

(a)

–

–

–

(99,961)

Transaction costs

948,613

–

1,305,136

–

Non-operational professional fees

12,278

–

1,612,669

–

Arbitration settlement reserve

(a)

(1,620,153)

–

(5,568,761)

–

Change in fair value of warrant liability

(a)

(727,280)

(7,236,531)

(4,667,583)

(7,071,518)

Change in fair value of convertible debt

(a)

(170,200)

(691,116)

(2,147,134)

7,172,533

Share of net loss of associate

(a)

–

–

–

103,930

Gain (loss) on disposal of subsidiary

(a)

(15,128,417)

–

(15,128,417)

678,931

Gain (loss) from discontinued operations

670,182

425,799

1,045,934

5,034,317

Adjusted EBITDA

(5,161,278)

(3,578,883)

(16,065,333)

(10,729,964)
  1. Non-cash expense (income)

This earnings release should be read in conjunction with the Company’s Interim Condensed Consolidated Financial Statements and accompanying notes that will be made available on Engine’s investor relations site on July 14, 2022 which can be found at https://ir.enginemediainc.com/.

About Engine Gaming and Media, Inc.

Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com.

Cautionary Statement on Forward-Looking Information

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.

The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Investor Relations Contact:

Shannon Devine
MZ North America
Main: 203-741-8811
GAME@mzgroup.us

SOURCE: Engine Gaming & Media Inc.

View source version on accesswire.com:
https://www.accesswire.com/708634/Engine-Gaming-Media-Inc-Reports-Fiscal-Third-Quarter-2022-Financial-Results


Will NIO and Other Listed Chinese Companies be Exiting U.S. Exchanges?

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Image Credit: Robert Rouse (Flickr)


SEC Fails to Reach Agreement with Chinese on Accounting Audits

Mass delisting of nearly 150 Chinese companies trading on U.S. stock exchanges may not be avoidable. This, according to The Securities and Exchange Commission Chairman (SEC) Gary Gensler said he does not expect that negotiations in Washington and Beijing on the U.S. Holding Foreign Companies Accountable Act (HFCAA) will reach an agreement. The Act came about as a response to the Public Company Accounting Oversight Board (PCAOB).

The PCASOB says that is pertinent to Gensler’s comments today (July 13): “If you want to issue public securities in the U.S., the firms that audit your books have to be subject to inspection by the Public Company Accounting Oversight Board.” Over 50 jurisdictions have worked with the PCAOB to allow the required inspections; China and Hong Kong have not.

The HFCAA requires audits that the SEC made necessary to prevent Chinese companies from being delisted from U.S. stock exchanges. The HFCAA took effect in 2021 and bans U.S. trading of securities of companies whose auditors can’t be inspected by the American audit watchdog for three consecutive years. This gives Beijing until spring 2024 to comply, though Congress is considering legislation that would shorten the deadline by a year.


Image: Yum Chinese Holdings is among the 150 companies trading on U.S. markets that may be impacted if an agreement is not reached.

In recent months, racing the clock against a looming deadline for American regulators to oversee Chinese companies, the required audit requirements have been the focus of intense negotiations between Chinese regulators and their U.S. counterparts. Chinese authorities had recently indicated that they wanted to avoid these companies being delisted for having missed the deadline.

“It’s quite possible that there’s no deal here,” Mr. Gensler told reporters after an SEC rule-making meeting.

The SEC has identified about 150 companies as noncompliant. Many have become popular stocks for U.S. investors including Nio, Inc. (NIO), Dada Nexus, Ltd (DADA), iClick Interactive (ICLK), and JD.com (JD).    

“If anything has changed, it’s just time,” Mr. Gensler said. “This is the middle of the second year.”

The SEC Chairman, although he didn’t express there was any movement toward agreement, indicated that there was still time. The U.S. and Beijing have not reached the point of no return on finding terms that work to protect U.S. investors and, at the same time, retain the required secrecy expected of these companies back home.

Paul Hoffman

Managing Editor, Channelchek

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The Fed the Consumer and the Investor Reactions to Inflation

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Image Credit: Navy Sea News


US Inflation is a Big Ship to Steer

Inflation has proven itself to be persistent, not transitory. This means the Fed is off-course with its 2% inflation target and will have to steer sharply into rough seas to regain its bearings. The CPI report for June confirms that the forces taking the economy in the wrong direction are still overpowering the largest economy in the world. Federal Reserve Chairman Powell continues to assure us he is at the helm and promises to get on course before we lose more ground. But the U.S. economy is a big ship to steer. Big ships don’t react immediately and take a while to turn. This delayed reaction has in the past caused the Fed to wait and see the response before taking further steps or risk oversteering. Powell’s statements suggest he believes the Fed began the adjustments to course very late, and therefore the greater risk is not doing enough to come-about quickly.

Consumer Prices (CPI) and the Fed

Compared to last year, at this time, the inflation experienced by consumers, as measured by the June update to the Consumer Price Index (CPI), rose to a new four-decade high with an annual rate of 9.1%. This release indicates that for a year and a half, the U.S. has been experiencing worsening prices each time it takes a new read. The rate of inflation year-over-year in May was 8.6%, the expectations were for the 12-month period to uptick to 8.8% – over 9% indicates a worsening, the Fed and the U.S. economy are still being overwhelmed by inflationary forces.

Core prices, which exclude volatile food and energy did decline somewhat. In June the increase for the year measured 5.9%, the May report indicated 5.9%. n, the Labor Department said.

When the FOMC met in May to set monetary policy, all earlier talk from them indicated a 50bp (0.50%) increase in overnight rates. Then, strong economic numbers just before the meeting caused the Fed to take a more aggressive stance and move 75bp.

This new look at inflation is likely to keep the Fed aggressive in its moving the economy toward the Fed’s preferred direction. This would mean the odds of a 75bp increase after the FOMC meeting on July 27 have increased. The odds are even further enhanced as Bureau of Labor Statistics (BLS) reports show the economy is still supplying plenty of jobs.

The markets are like passengers on an off-course ship, and the voyage is far from over. Based on market action before and following the number, the markets are uncertain if they should rejoice and have faith in the “captain” that is finally taking strong action, be concerned that corrective action wasn’t taken sooner, or look at how far off course their portfolios are now and vomit (not to mention the thought of their expected cost of heating fuel next winter).

CPI and the Markets

 Stock futures were trading higher before the CPI report. This may be in part a response to Joe Biden who earlier in the week assured those he serves as the 46th President that the headline number would look bad, but this is because these numbers look back at data that has already improved. This gives hope that next month’s inflation numbers may come off a bit. After the economic release, interest rates on bonds rose (+0.08% on US Treasury 10-Year) and Stocks traded higher (+.05% on S&P 500). They then reversed with bond yields dropping below the open and stock indexes rising.

The market volatility indicates that players in both markets don’t know if they should be comforted by the “bad” number and the Fed’s resolve to react, or concerned about the Fed’s potential to overreact and cause an extended decline in economic growth (recession).

CPI and Consumers

The Fed and seemingly the White House is trying to prevent consumer expectations of higher inflation becoming entrenched. Expectations can be self-fulfilling. Fed Chairman Jerome Powell has said the central bank wants to see clear evidence that price pressures are diminishing before slowing or suspending rate increases. This gives the consumer confidence that the Fed has the tools and is resolved to bring down prices. If this sets expectations it will go a long way in becoming self-fulfilling.

Take Away

The U.S. economy is the largest in the world. In order to impact its components, such as inflation, big steps need to be taken. If they are not taken early, and with enough force, very little happens. The Fed did not attack inflation early for various reasons. After being reaffirmed for a second term, Fed Chair Powell told the markets inflation is more persistent than expected and that he would move to bring it down.

The CPI numbers have been getting worse, this tells the markets the Fed will react with more force. There are fears that this force will cause a recession, the recessionary fears are keeping rates below where they would ordinarily trade with such high inflation and a hawkish Fed. It may be that the fixed income markets are looking too far out into the future, or they just don’t expect a very hawkish response from the Fed.

There is a saying among investors, “don’t fight the Fed.” Based on interest rate moves the bond market does not believe the Fed is resolved, or perhaps they are prematurely pricing in oversteering. The stock market has been moving up since mid-June. This could indicate participants believe the markets were priced for a worse scenario than is currently unfolding for corporate America.

Paul Hoffman

Managing Editor, Channelchek

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Release – TAAL Completes Agreement To Bring 100 PH-S Of Computing Power Online

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TAAL Completes Agreement To Bring 100 PH-S Of Computing Power Online

Research, News, and Market Data on TAAL

FIRST IMMERSION COOLING DEPLOYMENT

TORONTO, July 13, 2022 /CNW/ – TAAL Distributed Information Technologies Inc. (CSE:TAAL) (FWB:9SQ1) (OTC:TAALF) (“TAAL” or the “Company“), a vertically integrated blockchain infrastructure and service provider for enterprise, announces its wholly owned operating subsidiary has entered into an agreement to acquire 968 Bitmain S19J Pro machines and host them with a subsidiary of LUXXFOLIO Holdings Inc. at a facility in New Mexico, representing an immediate increase of 100 petahash/s (“PH/s”) of additional computing power. The machines will be immersion cooled and represent a first full immersion deployment and acts as a test bed ahead of final design plans for TAAL’s flagship 50MW site in Grand Falls, New Brunswick which will come online during 2023. Details of the agreement include:

  • 968 Bitmain S19J Pro machines immediately hashing upon agreement inception
  • Miners will use immersion cooling to optimize performance
  • The machines come with a one-year warranty and will be hosted in a facility located in New Mexico powered by majority non-carbon emitting solar energy
  • Total of 100 Petahash/second
  • TAAL can mine across all three SHA-256 based blockchain networks – Bitcoin Core (”
    BTC“), BitcoinSV (“BSV“), Bitcoin Cash (”
    BCH“) – switching chains economically and dynamically to optimize yield.

“With this additional capacity we continue to execute on our network rebalancing program and diversification strategy and build robustness across our mining fleet,” said Richard Baker, CEO of TAAL. “With this deployment our mining hash centre operations are in three diversified locations in North America and underpin our long-term objective of building out the transaction infrastructure of the future. We remain focussed on our goal of reaching 2 EH/s of hash power at full deployment.”

About LUXXFOLIO

LUXXFOLIO Holdings Inc. is a publicly traded, vertically integrated digital asset company based in Canada. It operates an industrial scale cryptocurrency mining facility in the United States powered predominately by renewable energy with a focus on the blockchain ecosystem and generation of digital assets. LUXXFOLIO provides a liquid alternative for exposure to digital assets for the broader capital markets.

About TAAL Distributed
Information Technologies Inc.

TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications on the BSV platform, and developing, operating, and managing distributed computing systems for enterprise users. BitcoinSV Blockchain is the world’s largest public blockchain by all major utility metrics, data storage, daily transaction volume, scaling ability, and average block size.

For more information please visit – www.taal.com/investors

The
CSE, nor its Regulation Services Provider, accepts no responsibility for the
adequacy or accuracy of this release.

CAUTIONARY STATEMENT
REGARDING FORWARD-LOOKING INFORMATION

Certain statements included in this news release constitute “forward-looking information” as defined under applicable Canadian securities legislation. The words “will”, “intends”, “expects” and similar expressions are intended to identify forward-looking information, although not all forward-looking information will contain these identifying words. Specific forward-looking information contained in this news release includes but is not limited to statements regarding: the type, number and performance of machines that have been acquired, TAAL’s future computing power and capacity; development plans and redeployment of activities in North America, geopolitical risks to operations and TAAL’s business and strategic plans. These statements are based on factors and assumptions related to historical trends, current conditions and expected future developments. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. TAAL cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from expectations. Material risk factors include the future acceptance of Bitcoin SV and other digital assets and risks related to information processing using those platforms, the ability for TAAL to leverage intellectual property into viable income streams and other risks set out in TAAL’s Annual Information Form dated March 31, 2022, under the heading “Risk Factors” and elsewhere in TAAL’s continuous disclosure filings available on SEDAR at www.sedar.com. Given these risks, undue reliance should not be placed on the forward-looking information contained herein. Other than as required by law, TAAL undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.

SOURCE Taal Distributed Information Technologies Inc.

For further information: Media and Investor Contact, TAAL, Richard Baker, Chief Executive Officer, Office: (437) 826-8889, Richard.Baker@taal.com; Sophic Capital, Sean Peasgood, Investor Relations, Office: (437) 826-8889, Sean@SophicCapital.com