Month: January 2024

Release – McLeod Lake Indian Band and Defense Metals Corp. Announce Groundbreaking Partnership for Wicheeda Project

Posted on by aweinsoff@channelchek.com

Research News and Market Data on DFMTF

NEWS PROVIDED BY

Defense Metals Corp. 

18 Jan, 2024, 08:00 ET

Equity Partnership and Co-Design Agreement Set New Standards in Collaborative Project Development in the Critical Minerals Transition

VANCOUVER, BC, Jan. 18, 2024  /PRNewswire/ – The McLeod Lake Indian Band (MLIB) and Defense Metals Corp. (Defense Metals), announced today a strategic Equity Partnership and Co-Design Agreement, solidifying their joint commitment to the successful advancement of the Wicheeda Project, a rare earth elements (REE) project in central British Columbia.

Minister of Energy, Mines and Low Carbon Innovation, Josie Osborne speaks at the announcement today. (CNW Group/Defense Metals Corp.)

McLeod Lake Indian Band, recognizing the significant potential of the Wicheeda Project, has purchased a meaningful equity stake in Defense Metals. This strategic investment will showcase MLIB’s long-term commitment to the project’s success and expects to further cement their position as a key participant in its development. MLIB now holds approximately 2.6 million common shares of Defense Metals.

Simultaneously, MLIB and Defense Metals have entered into a Co-Design Agreement (the Agreement), setting a new standard for collaborative project development. The Agreement emphasizes a joint planning approach, empowering MLIB to play an integral part in the design and decision-making process in the technical, social, engineering and environmental aspects of the Wicheeda Project.

This unique agreement between McLeod Lake Indian Band and Defense Metals signals a transformative moment in the collaborative development of mining projects – particularly in the global push for Critical Minerals Projects. Central to this collaboration is the Wicheeda’s contribution to the clean energy transition in British Columbia. With a targeted annual production equivalent to approximately 10% of current global production, the project has the potential to become a significant supplier of rare earth elements.

McLeod Lake Indian Band

“McLeod Lake Indian Band values its partnership with Defense Metals, and together, we are pioneering a new standard in collaborative project development, which is a true form of reconciliation. We’re proud to be a part of a project that will be a key contributor to global energy transition goals, and one that will deliver long-term economic benefits to our community for generations to come.” – McLeod Lake Indian Band Chief Harley Chingee.

Defense Metals Corp.

“We’re proud to partner with MLIB and these strategic agreements exemplify a shared vision and commitment to realizing the full potential of the Wicheeda Project and the positive impact it will have on the global Critical Minerals Transition. Through both agreements, McLeod Lake Indian Band stands to reap mutual benefits from our combined efforts around the Wicheeda Project.” – CEO of Defense Metals, Craig Taylor.

Minister of Energy, Mines and Low Carbon Innovation

“The collaboration between Defense Metals and McLeod Lake Indian Band demonstrates how early-stage consultation with First Nations can bring important projects to life in a way that benefits everyone.  Partnerships like this play a pivotal role in shaping BC’s natural resources future, as we lay a concrete path toward achieving our net-zero goals through collaboration and advancing reconciliation.” – Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation.

About Defense Metals Corp. and its Wicheeda Project

Defense Metals Corp. is a mineral exploration and development company focused on the development of its 100% owned, 8,301-hectare (~20,534-acre) rare earth element Wicheeda Project that is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada.

The Wicheeda Project, approximately 80 kilometres northeast of the city of Prince George, is readily accessible by all-weather gravel roads and has nearby infrastructure, including rail and hydro power. The nearby Canadian National Railway and major highways allow easy access to the port facilities at Prince Rupert, the closest major North American port to Asia. 

Defense Metals Corp. trades on the TSX Venture Exchange under the symbol “DEFN”, in the United States, trading symbol “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

Defense Metals is a proud member of Discovery Group. For more information please visit:
http://www.discoverygroup.ca/

Media Contact:

Sarah Norman
Director of Strategic Communications
One-Eighty Consulting Group
snorman@one-eighty.ca

Qualified Person

Kristopher J. Raffle, P.Geo. (B.C.), Principal and Consultant of APEX Geoscience Ltd. of Edmonton, Alberta, and a “Qualified Person” as defined in NI 43-101 has reviewed and approved the scientific and technical information and verified the data contained in this news release as it relates to the Wicheeda REE Project.

Cautionary Statement Regarding “Forward-Looking” Information

This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, any statements (expressed or implied) relating to: advancing the Wicheeda REE Project, MLIB’s expected investment in the Company,  the potential production of rare earth elements,  the benefits from combined efforts with MLIB, and the technical, financial and business prospects of the Company, its project and other matters. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. All statements in this news release, other than statements of historical facts, that address events, contribution or developments that the Company expects to occur, are forward-looking statements.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such forward-looking statements are not guarantees of future performance and actual results may differ materially due to the risks and uncertainties associated with and inherent to the Company’s business and the Wicheeda REE Project. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, accuracy of assay results, performance of available laboratory and other related services, future operating costs, interpretation of geological, engineering and metallurgical data, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration, engineering and metallurgical results, risks related to the inherent uncertainty of exploration, metallurgy and development and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company’s profile on SEDAR+ at www.sedarplus.ca.

While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of personnel, materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological, metallurgical and engineering assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, loss of key employees, consultants, or directors, increase in costs, delayed results, litigation, and failure of counterparties to perform their contractual obligations. The forward-looking statements contained in this press release are made as at the date hereof and the Company does not undertake to update publicly or to revise any of the included forward-looking statements or forward-looking information, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws.

McLeod Lake Indian Band Chief Harley Chingee and Defense Metals CEO Craig Taylor sign Equity and Co-Design Agreement with the Minister of Energy, Mines and Low Carbon Innovation, Josie Osborne. (CNW Group/Defense Metals Corp.)

SOURCE Defense Metals Corp.

ZyVersa Therapeutics, Inc. (ZVSA) – Research Study Details Role Of Inflammasomes In TNBC Brain Metastases

Posted on by cpereira@noblefcm.com


Thursday, January 18, 2024

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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

Publication Shows Inflammasome Activity In Triple Negative Breast Cancer. A new study has been published in a peer-reviewed journal, Acta Neuropathologica Communications, showing the role of inflammasomes in the growth of brain metastases in triple-negative breast cancer (TNBC). The study found the components that form inflammasomes were upregulated and activated, starting the pathway for metastatic TNBC tumor cells to proliferate. We see this as an important potential indication for ZyVersa IC 100, a drug that blocks inflammasomes.

ZyVersa Is Developing IC 100 As An Inflammasome Inhibitor. Inflammasomes are protein complexes that assemble from three component proteins. Upon activation by pathogens or cell damage, inflammasomes form and provide signals for inflammation. Inflammasomes also form aggregates that stimulate cytokine release and maintain the inflammation process.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Defense Metals Corp. (DFMTF) – A Unique Cooperative Agreement Between Defense Metals and the McLeod Lake Indian Band

Posted on by cpereira@noblefcm.com


Thursday, January 18, 2024

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Co-Design agreement with the McLeod Lake Indian Band (MLIB). Defense Metals entered into a Co-Design agreement with the McLeod Lake Indian Band to collaborate on the design of the Wicheeda Rare Earth Element Project and consider the band’s interests and priorities in future feasibility studies and environmental assessments. Budgets and work plans will be developed cooperatively. The MLIB is a First Nations community and part of the Tse’khene group of Aboriginal people in British Columbia, Canada.

MLIB strategic investment. The McLeod Lake Indian Band will make a strategic investment in Defense Metals through a private placement of 2,557,795 common shares of the company at a price of C$0.26 per share for aggregate proceeds of C$665,026.70. The transaction will be completed following approval by the TSX Venture Exchange, and the common shares issued will be subject to a two-year voluntary hold period from the date of issuance. The net proceeds will be used to advance the Wicheeda Project. As of September 30, 2023, Defense Metals had 255,779,571 shares outstanding. We will adjust our financial model once the transaction closes. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Homebuyers Get a Break as Mortgage Rates Hit 7-Month Low

Posted on by slightbourne@noblecapitalmarkets.com

Mortgage rates fell to their lowest level in seven months this past week, providing a glimmer of hope for homebuyers who have been sidelined by high borrowing costs.

The average rate on a 30-year fixed mortgage dropped to 6.60% according to Freddie Mac, down from a recent peak of nearly 8% in October 2023. While still high historically, the retreat back below 7% could draw more prospective homebuyers back into the market.

The dip in rates comes as the housing market is showing early signs of a potential turnaround after a dismal 2023. Home sales plunged nearly 18% last year as surging mortgage rates and stubbornly high prices made purchases unaffordable for many.

But January has seen some positive signals emerge. More homes are coming up for sale as sellers who waited out 2023 finally list their properties. Real estate brokerage Redfin reported a 9% annual increase in inventory in January, the first year-over-year gain since 2019.

At the same time, buyer demand is also perking back up with the improvement in affordability. Mortgage applications jumped 10% last week compared to the prior week according to the Mortgage Bankers Association. While purchase apps remain below year-ago levels, the turnaround suggests buyers are returning.

“If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months,” said Joel Kan, MBA’s Vice President of economic and industry forecasting.

The increase in supply and demand has some experts predicting the market may be primed for a rebound in the spring home shopping season. But whether the inventory can satisfy purchaser interest remains uncertain.

“As purchase demand continues to thaw, it will put more pressure on already depleted inventory for sale,” noted Freddie Mac Chief Economist Sam Khater.

Homebuilders have pulled back sharply on new construction as sales slowed over the past year. And many current owners are still hesitant to sell with mortgage rates on their existing homes likely much lower than what they could get today. That leaves the total number of homes available for sale still historically lean.

Nonetheless, agents are reporting more bidding wars again for the limited inventory available in some markets. While not at the frenzied pace of 2022, competition for the right homes is heating up. Experts say interested buyers may want to start making offers now before the selection gets picked over.

“I’m advising house hunters to start making offers now because the market feels pretty balanced,” said Heather Mahmood-Corley, a Redfin agent. “With activity picking up, I think prices will rise and bidding wars will become more common.”

The driver of the downturn in rates since late last year has been an overall cooling of inflation pressures. The Federal Reserve pushed the 30-year fixed mortgage above 7% for the first time in over 20 years with its aggressive interest rate hikes aimed at taming inflation.

But evidence is mounting that the Fed’s policy actions are having the desired effect. Consumer price increases have steadily moderated from 40-year highs last summer. The slower inflation has allowed the central bank to reduce the size of its rate hikes.

Markets now expect the Fed to lift its benchmark rate 0.25 percentage points at its next meeting, a smaller move compared to the 0.50 and 0.75 point hikes seen last year. The slower pace of increases has taken pressure off mortgage rates.

However, the Fed reiterated it plans to keep rates elevated for some time to ensure inflation continues easing. Most experts do not foresee the central bank cutting interest rates until 2024 at the earliest. That means mortgage rates likely won’t fall back to the ultra-low levels seen during the pandemic for years.

But for homebuyers who can manage the higher rates, the recent pullback provides some savings on monthly payments. On a $300,000 loan, the current average 30-year rate would mean about $140 less in the monthly mortgage bill versus the fall peak above 8%.

While housing affordability remains strained by historical standards, some buyers are jumping in now before rates potentially move higher again. People relocating or needing more space are finding ways to cope with the increased costs.

With some forecasts calling for home prices to edge lower in 2024, this year could provide an opportunity for buyers to get in after sitting out 2023’s rate surge. It may be a narrow window however. If demand accelerates faster than supply, the competition and price gains could return quickly.

Jobless Claims Hit Lowest Level Since September 2022 as Labor Market Defies Fed

Posted on by slightbourne@noblecapitalmarkets.com

The U.S. job market continues to show resilience despite the Federal Reserve’s efforts to cool economic growth, according to new data released Thursday. Initial jobless claims for the week ending January 13 fell to 187,000, the lowest level since September of last year.

The decline in claims offers the latest evidence that employers remain reluctant to lay off workers even as the Fed raises interest rates to curb demand. The total marked a 16,000 drop from the previous week and came in well below economist forecasts of 208,000.

“Employers may be adding fewer workers monthly, but they are holding onto the ones they have and paying higher wages given the competitive labor market,” said Robert Frick, corporate economist at Navy Federal Credit Union.

The surprising strength comes even as the Fed has lifted its benchmark interest rate seven times in 2023 from near zero to a range of 4.25% to 4.50%. The goal is to dampen demand across the economy, particularly the red-hot job market, in order to bring down uncomfortably high inflation.

In addition to the drop in claims, continuing jobless claims for the week ending January 6 also declined by 26,000 to 1.806 million. That figure runs a week behind the headline number and likewise came in below economist estimates.

The resilience in the labor market comes even as broader economic activity shows signs of cooling. In its latest Beige Book report, the Fed noted that the economy has seen “little or no change” since late November.

Housing markets are a key area feeling the pinch from higher borrowing costs. The Fed summary showed residential real estate activity constrained by rising mortgage rates. Still, there were some green shoots in Thursday’s housing starts data.

Building permits, a leading indicator of future home construction, rose 1.9% in December to 1.495 million. That exceeded economist forecasts of 1.48 million permits. Actual housing starts declined 4.3% to 1.46 million, but still topped estimates calling for 1.43 million.

“The prospects of future easing from the Fed were raising hopes that the pace could accelerate,” the original article noted about housing.

Outside of housing, manufacturing activity in the Philadelphia region contracted again in January, though at a slightly slower pace. The Philly Fed’s index rose to -10.6 this month from -12.8 in December. Readings below zero indicate shrinking activity.

The survey’s gauge of employment at factories in the region also remained negative, though it improved to -1.8 from -7.4 in December. Overall, the Philly Fed report showed declining orders, longer delivery times, and falling inventories.

On inflation, the prices paid index within the survey fell to 43.4 from 51.8 last month. That indicates some easing of cost pressures for manufacturers in the region. The prices received or charged index also ticked lower.

The inflation figures align with the Fed’s latest nationwide look at the economy. The central bank’s Beige Book noted signs of slowing wage growth and easing price pressures. That could give the Fed cover to dial back the pace of interest rate hikes at upcoming meetings this year.

But policymakers also reiterated they plan to keep rates elevated for some time to ensure inflation continues cooling toward the 2% target. Markets still expect the Fed to lift rates again at both its February and March gatherings, albeit by smaller increments of 25 basis points.

With inflation showing increasing signs of moderating from four-decade highs, the focus turns to how much the Fed’s actions will slow economic growth. Thursday’s report on jobless claims hints the labor market remains on solid ground for now.

Employers added over 200,000 jobs per month on average in 2023, well above the pace needed to keep up with population growth. And the unemployment rate ended the year at 3.5%, matching a 50-year low first hit in September.

While job gains are expected to downshift in 2024, the claims report suggests employers are not rushing to cut staff yet. How long the resilience lasts as interest rates remain elevated and growth slows remains to be seen.

For the Fed, it will be a delicate balance between cooling the economy just enough to rein in inflation, without causing substantial job losses or triggering a recession. How well they thread that needle will be closely watched in 2024.

Treasury Yields Spike on Solid Retail Figures, Stocks Pull Back

Posted on by slightbourne@noblecapitalmarkets.com

U.S. stocks slumped on Wednesday as Treasury yields climbed following better-than-expected December retail sales. The data signals ongoing economic strength, prompting investors to temper hopes for an imminent Fed rate cut.

The S&P 500 dropped 0.47% to an over one-week low of 4,743, while the Dow shed 0.01% to hit a near one-month low of 37,357. The tech-heavy Nasdaq fared worst, sinking 0.79% to 14,826, its lowest level in a week.

Driving the declines was a surge in the 10-year Treasury yield, which topped 4.1% today – its highest point so far in 2024. The benchmark yield has been rising steadily this year as the Fed maintains its hawkish tone. Higher yields particularly pressured rate-sensitive sectors like real estate, which fell 1.8% for its worst day in a month.

The catalyst behind rising yields was stronger-than-forecast December retail sales. Despite lingering inflation, sales rose 1.4% versus estimates of just 0.1%, buoyed by holiday discounts and robust auto demand. The robust spending highlights the continued resilience of the U.S. economy amidst Fed tightening.

This data substantially dampened investor hopes of the Fed cutting rates as soon as March. Before the report, markets were pricing in a 55% chance of a 25 basis point cut next month. But expectations sank to just 40% after the upbeat sales print.

Traders have been betting aggressively on rate cuts starting in Q2 2024, while the Fed has consistently pushed back on an imminent policy pivot. Chair Jerome Powell stated bluntly last week that “the time for moderating rate hikes may come as soon as the next meeting or meetings.”

“The market is recalibrating its expectations for rate cuts, but I don’t think that adjustment is completely over,” said Annex Wealth Management’s Brian Jacobsen. “A tug-of-war is playing out between what the Fed intends and what markets want.”

Further weighing on sentiment, the CBOE Volatility Index spiked to its highest level in over two months, reflecting anxiety around the Fed’s path. More Fedspeak is due this week from several officials and the release of the Beige Book economic snapshot. These could reinforce the Fed’s resolute inflation fight and keep downward pressure on stocks.

In company news, Tesla shares dropped 2.8% after the electric vehicle leader slashed Model Y prices in Germany by roughly 15%. This follows discounts in China last week as signs of softening demand grow. The price cuts hit Tesla’s stock as profit margins may come under pressure.

Major banks also dragged on markets after Morgan Stanley plunged 2% following earnings. The investment bank flagged weak trading activity and deal-making. Peer banks like Citi, Bank of America and Wells Fargo slid as a result.

On the upside, Boeing notched a 1.4% gain as it cleared a key milestone regarding 737 MAX inspections. This allows the aircraft to reenter service soon, providing a boost to the embattled plane maker.

But market breadth overall skewed firmly negative, with decliners swamping advancers by a 3-to-1 ratio on the NYSE. All 11 S&P 500 sectors finished in the red, underscoring the broad risk-off sentiment.

With the Fed hitting the brakes on easy money, 2024 is shaping up to be a far cry from the bull market of 2021-2022. Bouts of volatility are likely as policy settles into a restrictive posture. For investors, focusing on quality companies with pricing power and adjusting rate hike expectations continue to be prudent moves this year.

Release – Bitcoin Depot to Deploy 940 Bitcoin ATMs at a National Convenience Store Retailer

Posted on by aweinsoff@channelchek.com

Research News and Market Data on BTM

January 17, 2024 11:51 AM

Bitcoin Depot Plans to Install Kiosks in Roughly 940 Stores Across 24 US States to Provide Greater Access for Users to Fund Their Bitcoin Wallet with Cash

ATLANTA, Jan. 17, 2024 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM operator and leading fintech company, today announced the launch of its retail partnership with a leading national convenience retailer with an extensive international network of locations across a portfolio of many brands.

Beginning in Q1 of 2024, the Company will install roughly 940 Bitcoin Depot kiosks in convenience store locations across 24 states. The initial rollout is part of a larger initiative with the opportunity to grow into additional stores beyond the initial 940.

“We are happy to be embarking on a long-term strategic partnership with one of our largest retail partners to-date. Together, we look forward to broadening our reach in tandem with a brand that values our commitment to providing access to Bitcoin,” said Bitcoin Depot Founder and CEO Brandon Mintz.

Bitcoin Depot’s products and services provide an intuitive, quick, and convenient process for converting cash into Bitcoin, giving users the ability to access the broader digital financial system by conveniently purchasing Bitcoin at Bitcoin ATMs in 48 states. In addition to Bitcoin ATMs, Bitcoin Depot also has BDCheckout enabled for customers to fund their wallets with cash at participating retail locations in 28 states across the nation.

About Bitcoin Depot 
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 28 states through its BDCheckout product. The Company has the largest market share in North America with approximately 6,400 kiosk locations as of September 30, 2023. Learn more at www.bitcoindepot.com 

Cautionary Note Regarding Forward-Looking Statements

This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, the anticipated effects of the Amendment, and the closing of the Preferred Sale. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.

We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

Contacts: 

Investors  
Cody Slach, Alex Kovtun  
Gateway Group, Inc.  
949-574-3860  
btm@gateway-grp.com

Media  
Christina Lockwood, Brenlyn Motlagh, Ryan Deloney  
Gateway Group, Inc. 
949-574-3860  
btm@gateway-grp.com

Source: Bitcoin Depot Inc.

Released January 17, 2024

Spirit Airlines Stock Slides After Regulators Block JetBlue Merger

Posted on by slightbourne@noblecapitalmarkets.com

Shares of low-cost carrier Spirit Airlines plunged a staggering 47% on Tuesday after a federal judge ruled to block the proposed $3.8 billion acquisition by JetBlue Airways. The decision reignited antitrust concerns surrounding consolidation in the airline industry and delivered a major setback to the merger partners.

Judge Leo Sorokin of the U.S. District Court in Massachusetts sided with the Justice Department, which sued earlier this year to halt the deal between the two discount airlines. Regulators argued the merger would lead to higher fares, fewer choices, and reduced competition – particularly impacting budget-conscious leisure travelers.

In his ruling, Sorokin agreed the combination of JetBlue and Spirit would substantially reduce competition in major metropolitan areas and lead to dominant market power on hundreds of routes. Evidence also suggested the merger was likely to raise base fares above pre-merger levels, contradicting the airlines’ claims that the deal would actually lower costs for consumers.

The Justice Department applauded the decision, stating it protected the interests of millions of air travelers against the threat of increased prices and reduced options. The Biden administration has taken a tougher stance on antitrust issues across industries like tech and healthcare. Blocking this airline deal marked the first time in over 20 years regulators successfully halted a major U.S. carrier merger.

JetBlue and Spirit responded with disappointment, saying they disagree with the judge’s rationale and are evaluating their legal options. Previously, the carriers contended combining forces would fuel competition with larger legacy airlines and drive down airfares. But regulators argued JetBlue’s Northeast Alliance with American Airlines already gave the company substantial market power.

For Spirit, the failed acquisition is a crushing blow after months in limbo. The ultra-low cost airline initially agreed to merge with fellow discounter Frontier Airlines before JetBlue stepped in with a higher bid. Now, Spirit finds itself alone again after the about-face regulators delivered.

The collapsed deal and renewed antitrust scrutiny sent Spirit’s stock price into a nosedive. Shares cratered from Friday’s close of $19.66 to around $10.40 on Tuesday after the ruling. The 47% single-day wipeout vaporized over $1.4 billion in market value. Investors are surely questioning what’s next for the budget carrier without an imminent buyer or partner.

The blocked merger also casts uncertainty over ongoing consolidation in the travel and tourism sector. Many investors had bet on further airline combinations to drive efficiency and shareholder returns. With regulators now throwing up roadblocks, the appetite for large-scale airline deals could diminish. That may leave some carriers struggling to gain scale and keep pace with leading players like Delta and American.

Broader travel stocks also felt the tremor of the scuttled Spirit-JetBlue tie-up. Shares of Hawaiian Holdings, involved in a proposed merger with Alaska Air, fell nearly 2% Tuesday afternoon amid the uncertain regulatory environment. Cruise operators like Norwegian and Royal Caribbean slid as much as 5%, potentially signaling dampened outlooks for leisure sector combinations.

Potentially compounding Spirit’s challenges, competitor Frontier Airlines could come back to the table with a renewed merger proposal now that JetBlue is sidelined. Spirit already expended time and resources negotiating with Frontier last year. More uncertainty around consolidation could further destabilize the airline at a precarious moment.

Looking ahead, Spirit and JetBlue still have avenues to continue the legal fight. They could appeal the decision or take their arguments directly to regulators for another look. But after the Justice Department’s strong stance earlier in the case, the odds of overturning the ruling remain long.

For now, the blocked acquisition marks a setback in the wave of consolidation that has swept the U.S. airline industry over the past two decades. Major carriers will be wary of attempting large mergers and risking similar antitrust opposition. While the Biden administration succeeded in halting this particular deal, ongoing fragmentation may not solve the lack of competition in air travel markets across America.

Take a look at Travelzoo (TZOO), an exclusive travel membership that provides travel, entertainment, and lifestyle experiences.

Release – MAIA Biotechnology Provides Positive Phase 2 Clinical Updates for Lead Anticancer Agent And Outlines Targeted Milestones for 2024

Posted on by aweinsoff@channelchek.com

Research News and Market Data on MAIA

January 17, 2024 9:00am EST

  • Lead candidate THIO maintains unprecedented disease control rates in Phase 2 non-small cell lung cancer (NSCLC) clinical trial
  • Multiple clinical milestones ahead for THIO-101 Phase 2 trial
  • Company enters 2024 with robust clinical pipeline in multiple hard-to-treat cancer indications

CHICAGO–(BUSINESS WIRE)– MAIA Biotechnology, Inc., (NYSE American: MAIA) (“MAIA”, the “Company”), a clinical-stage biopharmaceutical company developing targeted immunotherapies for cancer, announced new interim data for its ongoing THIO-101 Phase 2 trial in non-small cell lung cancer (NSCLC) and outlined key clinical milestones for 2024.

In the latest available data from THIO-101 (November 13, 2023), 60 patients had been dosed with THIO in sequential combination with Libtayo®. The patients received either 60mg, 180mg, or 360mg of THIO per dose, and 42 had at least one post baseline assessment completed. The observed disease control was well sustained compared to previous scans.

“We are entering 2024 with strong momentum and great excitement about our programs and pipeline,” said Vlad Vitoc, M.D., MAIA’s Chairman and Chief Executive Officer. “To date, preliminary Phase 2 data on THIO in NSCLC has demonstrated unprecedented rates of disease control and response — measures that vastly outperform the standard of care.”

“In addition to NSCLC, our pipeline of immuno-oncology therapies includes THIO orphan drug designations for multiple hard-to-treat cancers, and our research includes THIO-like second-generation telomere-targeting agents. The main objective for the second-generation program is to discover new compounds with potentially improved specificity towards cancer cells relative to normal cells and with potentially increased anticancer activity,” Dr. Vitoc continued.

“Multiple milestones are on target for 2024 as enrollment continues in THIO-101, including long-term efficacy as a major clinical inflection point.”

Key 2023 Achievements

Positive Preliminary Efficacy Data: Key findings from THIO-101 included:

  • 100% preliminary disease control rate (DCR) in second-line and 88% in third-line, in highly difficult-to-treat patients who already progressed through previous lines of treatment.
  • DCR across all dose levels met pre-determined statistical requirements earlier than expected to proceed to next stage of the trial.

Third orphan drug designation (ODD) granted to THIO: MAIA’s portfolio of immuno-oncology therapies with ODDs now includes a third hard-to-treat cancer, glioblastoma, the most aggressive and most common type of brain cancer with only limited treatment options.

U.S. FDA Investigational New Drug (IND) Clearance: The FDA cleared U.S.-based evaluation for THIO as part of THIO-101. The trial drew a strong pace of enrollment in 2023 compared with previous NSCLC trials by other drug developers.

Dose Selection: A 180mg/cycle dose of THIO was selected for THIO-101 based on stronger efficacy compared to other doses. The selected dose showed unprecedented disease control and overall response rates for a NSCLC clinical trial.

Next Generation Telomere Targeting Agents: MAIA’s second-generation telomere-targeting program is engaged in research and development for new prodrugs derived from lipid-modified THIO molecules. Capable of acting through similar mechanisms of activity as THIO, the higher potency of these compounds at lower dose levels will be investigated further in 2024.

THIO is the only direct telomere targeting agent currently undergoing clinical development in the field of cancer drug discovery and treatment.

About THIO

THIO (6-thio-dG or 6-thio-2’-deoxyguanosine) is a first-in-class investigational telomere-targeting agent currently in clinical development to evaluate its activity in Non-Small Cell Lung Cancer (NSCLC). Telomeres, along with the enzyme telomerase, play a fundamental role in the survival of cancer cells and their resistance to current therapies. The modified nucleotide 6-thio-2’-deoxyguanosine (THIO) induces telomerase-dependent telomeric DNA modification, DNA damage responses, and selective cancer cell death. THIO-damaged telomeric fragments accumulate in cytosolic micronuclei and activates both innate (cGAS/STING) and adaptive (T-cell) immune responses. The sequential treatment with THIO followed by PD-(L)1 inhibitors resulted in profound and persistent tumor regression in advanced, in vivo cancer models by induction of cancer type–specific immune memory. THIO is presently developed as a second or later line of treatment for NSCLC for patients that have progressed beyond the standard-of-care regimen of existing checkpoint inhibitors.

About THIO-101, a Phase 2 Clinical Trial

THIO-101 is a multicenter, open-label, dose finding Phase 2 clinical trial. It is the first trial designed to evaluate THIO’s anti-tumor activity when followed by PD-(L)1 inhibition. The trial is testing the hypothesis that low doses of THIO administered prior to cemiplimab (Libtayo®) will enhance and prolong immune response in patients with advanced NSCLC who previously did not respond or developed resistance and progressed after first-line treatment regimen containing another checkpoint inhibitor. The trial design has two primary objectives: (1) to evaluate the safety and tolerability of THIO administered as an anticancer compound and a priming immune activator (2) to assess the clinical efficacy of THIO using Overall Response Rate (ORR) as the primary clinical endpoint. Treatment with cemiplimab (Libtayo®) followed by THIO has been generally well-tolerated to date in a heavily pre-treated population. For more information on this Phase II trial, please visit ClinicalTrials.gov using the identifier NCT05208944.

About MAIA Biotechnology, Inc.

MAIA is a targeted therapy, immuno-oncology company focused on the development and commercialization of potential first-in-class drugs with novel mechanisms of action that are intended to meaningfully improve and extend the lives of people with cancer. Our lead program is THIO, a potential first-in-class cancer telomere targeting agent in clinical development for the treatment of NSCLC patients with telomerase-positive cancer cells. For more information, please visit www.maiabiotech.com.

Forward Looking Statements

MAIA cautions that all statements, other than statements of historical facts contained in this press release, are forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels or activity, performance or achievements to be materially different from those anticipated by such statements. The use of words such as “may,” “might,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” and other similar expressions are intended to identify forward looking statements. However, the absence of these words does not mean that statements are not forward-looking. For example, all statements we make regarding (i) the initiation, timing, cost, progress and results of our preclinical and clinical studies and our research and development programs, (ii) our ability to advance product candidates into, and successfully complete, clinical studies, (iii) the timing or likelihood of regulatory filings and approvals, (iv) our ability to develop, manufacture and commercialize our product candidates and to improve the manufacturing process, (v) the rate and degree of market acceptance of our product candidates, (vi) the size and growth potential of the markets for our product candidates and our ability to serve those markets, and (vii) our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates, are forward looking. All forward-looking statements are based on current estimates, assumptions and expectations by our management that, although we believe to be reasonable, are inherently uncertain. Any forward-looking statement expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and are subject to risks and uncertainties and other factors beyond our control that may cause actual results to differ materially from those expressed in any forward-looking statement. Any forward-looking statement speaks only as of the date on which it was made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In this release, unless the context requires otherwise, “MAIA,” “Company,” “we,” “our,” and “us” refers to MAIA Biotechnology, Inc. and its subsidiaries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117475294/en/

Investor Relations Contact
+1 (872) 270-3518
ir@maiabiotech.com

Source: MAIA Biotechnology, Inc.

Released January 17, 2024

Release – ZyVersa Therapeutics Highlights Peer-Reviewed Article Linking Inflammasome Activation to Triple-Negative Breast Cancer Brain Metastasis

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ZVSA

Jan 17, 2024

  • Up to 40% of women with triple negative breast cancer (TNBC) experience metastasis to their brain, which affects physical function, independence, personality, quality of life, and significantly increases mortality rates.
  • Published data demonstrate that inflammasome activation increases proliferation of TNBC cells in the brain, which was prevented by inhibition of NLRP3 inflammasomes in both mouse and human models.
  • ZyVersa is developing Inflammasome ASC Inhibitor IC 100, which can inhibit up to 12 different inflammasomes (including NLRP3 inflammasomes) and their associated ASC specks which perpetuate damaging inflammation.

WESTON, Fla., Jan. 17, 2024 (GLOBE NEWSWIRE) — ZyVersa Therapeutics, Inc. (Nasdaq: ZVSA, or “ZyVersa”), a clinical stage specialty biopharmaceutical company developing first-in-class drugs for treatment of inflammatory and renal diseases, announces publication of an article in the peer-reviewed journal, Acta Neuropathologica Communications, demonstrating that inflammasome activation enhances cancer metastasis to the brain in women with TNBC.

In the paper titled, “Inflammasome activation in peritumoral astrocytes is a key player in breast cancer brain metastasis development,” the authors evaluated in vivo and in vitro brain metastasis models, as well as human cultures of astrocytes and TNBC cells. Key findings are as follows:

  • Activation of the NLRP3 inflammasome results in excretion of IL-1β in the tumor environment, enhancing proliferation of metastatic cells in the brain.
  • Expression of IL-1β correlates with the size of metastatic lesions, being absent in tumor-free brain areas and more intense in the vicinity of large tumors in comparison to smaller ones.
  • Inhibition of NLRP3 activation prevented proliferation of TNBC cells in both mouse and human models.

The authors stated, “We are the first to show that peritumoral reactive astrocytes promote the proliferation of TNBC cells in the brain through NLRP3 inflammasome-dependent secretion of IL-1β. Brain metastases are among the most aggressive and the least curable malignant tumors; therefore, we need novel therapies targeting mechanisms that contribute to the proliferation of metastatic cells in the brain.” They concluded, “We suggest that inflammasome inhibition might become a therapeutic option in this currently incurable disease.”

To read the article, click here.

“The research published in Acta Neuropathologica Communications linking inflammasome activation in patients with triple-negative breast cancer to brain metastasis supports a growing body of evidence about the role of dysregulated inflammasome pathways in a broad range of devastating diseases,” commented Stephen C. Glover, ZyVersa’s Co-founder, Chairman, CEO, and President. “We are excited about the potential to transform the treatment of a multitude of inflammatory diseases with drugs like Inflammasome ASC Inhibitor IC 100. IC 100 uniquely inhibits inflammasome ASC and ASC specks to block initiation and perpetuation of damaging inflammation.” To review a white paper summarizing the mechanism of action and preclinical data for IC 100, Click Here.

About Inflammasome ASC Inhibitor IC 100

IC 100 is a novel humanized IgG4 monoclonal antibody that inhibits the inflammasome adaptor protein ASC. IC 100 was designed to attenuate both initiation and perpetuation of the inflammatory response. It does so by binding to a specific region of the ASC component of multiple types of inflammasomes, including NLRP1, NLRP2, NLRP3, NLRC4, AIM2, Pyrin. Intracellularly, IC 100 binds to ASC monomers, inhibiting inflammasome formation, thereby blocking activation of IL-1β early in the inflammatory cascade. IC 100 also binds to ASC in ASC Specks, both intracellularly and extracellularly, further blocking activation of IL-1β and the perpetuation of the inflammatory response that is pathogenic in inflammatory diseases. Because active cytokines amplify adaptive immunity through various mechanisms, IC 100, by attenuating cytokine activation, also attenuates the adaptive immune response.

About ZyVersa Therapeutics, Inc.

ZyVersa (Nasdaq: ZVSA) is a clinical stage specialty biopharmaceutical company leveraging advanced, proprietary technologies to develop first-in-class drugs for patients with renal and inflammatory diseases who have significant unmet medical needs. The Company is currently advancing a therapeutic development pipeline with multiple programs built around its two proprietary technologies – Cholesterol Efflux Mediator™ VAR 200 for treatment of kidney diseases, and Inflammasome ASC Inhibitor IC 100, targeting damaging inflammation associated with numerous CNS and other inflammatory diseases. For more information, please visit www.zyversa.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. ZyVersa Therapeutics, Inc (“ZyVersa”) uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions. Such forward-looking statements are based on ZyVersa’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors, including ZyVersa’s plans to develop and commercialize its product candidates, the timing of initiation of ZyVersa’s planned preclinical and clinical trials; the timing of the availability of data from ZyVersa’s preclinical and clinical trials; the timing of any planned investigational new drug application or new drug application; ZyVersa’s plans to research, develop, and commercialize its current and future product candidates; the clinical utility, potential benefits and market acceptance of ZyVersa’s product candidates; ZyVersa’s commercialization, marketing and manufacturing capabilities and strategy; ZyVersa’s ability to protect its intellectual property position; and ZyVersa’s estimates regarding future revenue, expenses, capital requirements and need for additional financing.

New factors emerge from time-to-time, and it is not possible for ZyVersa to predict all such factors, nor can ZyVersa assess the impact of each such factor on the 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. Forward-looking statements included in this press release are based on information available to ZyVersa as of the date of this press release. ZyVersa disclaims any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except as required by applicable law.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities.

Corporate and IR Contact:
Karen Cashmere
Chief Commercial Officer
kcashmere@zyversa.com
786-251-9641        

Media Contacts
Tiberend Strategic Advisors, Inc.
Casey McDonald
cmcdonald@tiberend.com
646-577-8520

Dave Schemelia
dschemelia@tiberend.com
609-468-9325

Bitcoin Depot (BTM) – Quarterly Preview

Posted on by cpereira@noblefcm.com


Wednesday, January 17, 2024

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

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

Tweaking Q4. We are tweaking our Q4 revenue estimate lower from $173.5 million to $157.0 million, reflecting an expectation for lower revenue per kiosk. Our Q4 adj. EBITDA margin expectation is largely unchanged at 5.7% or $8.9 million.

Headwinds in California. California enacted a law effective January 1, 2024 that caps Bitcoin ATM transactions at $1,000. While this limit is well above the company’s median transaction size of roughly $200, it could affect its larger transactions. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Alliance Resource Partners (ARLP) – The Strategy Supporting ARLP’s Strategic Investments Becomes More Apparent

Posted on by cpereira@noblefcm.com


Wednesday, January 17, 2024

ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Collaboration with Infinitum. Infinitum, a leader in sustainable air-core motors, and Matrix Design Group, a wholly owned subsidiary of Alliance Resource Partners, L.P., announced an agreement to jointly develop and distribute high-efficiency motors and advanced motor controllers designed for the mining industry. Matrix will integrate Infinitum’s smaller and lighter motor technology into ARLP’s mining subsidiary equipment to validate performance in various production environments. In addition to supporting installations at ARLP operations, Matrix plans to offer the products globally to third-party mining customers.

Updating estimates. We have trimmed our fourth quarter and full year 2023 EPS estimates to $1.02 and $4.95 from $1.03 and $4.96, respectively. Our full year 2023 EBITDA estimate is $969.9 million compared to our previous estimate of $975.2 million. We have also trimmed our 2024 EBITDA and EPS estimates to $972.8 million and $4.95, respectively, from $998.1 million and $5.05. The revisions reflect lower oil and gas price assumptions relative to our previous estimates. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Synopsys Bets Big on Simulation Software with $35 Billion Ansys Acquisition

Posted on by slightbourne@noblecapitalmarkets.com

In one of the largest tech industry mergers of recent years, Synopsys has announced it will acquire engineering simulation software maker Ansys in an all-cash deal valued at approximately $35 billion. The deal combines two leading players in software tools for semiconductor and electronic product design, expanding Synopsys’ total addressable market as it aims to create an integrated platform for chip design and beyond.

The merger agreement will see Synopsys pay around $390 per share for Ansys – $197 per share in cash plus about one-third of a Synopsys share for each Ansys share. This represents a premium of roughly 20% over Ansys’ recent share price. Ansys shareholders will own 16.5% of the combined company once the acquisition is finalized, expected in the first half of 2025 pending regulatory approvals.

Synopsys plans to fund the cash component of the deal through a combination of $16 billion in new debt financing and $3 billion cash on hand. The company had $1.4 billion in cash reserves as of October 2022. Synopsys CEO Sassine Ghazi has acknowledged the deal will not be accretive to earnings for at least 12 months post-closing due to financing and integration costs.

Expanding Synopsys’ Platform from Silicon to System

For Synopsys, a leading vendor of electronic design automation (EDA) software used by semiconductor companies, the deal strategically expands its platform. Ansys provides physics-based simulation software that helps engineers virtually test product design, performance and safety across industries like automotive, aerospace, consumer electronics and medical devices.

Synopsys aims to combine its strengths in chip design with Ansys’ expertise in simulating mechanical, thermal and electromagnetic effects at the full system level. This can help Synopsys address the entire electronic system lifecycle – from silicon to software to system integration.

The merger can also unlock new integrated workflows between the companies’ complementary technologies. For instance, connecting Ansys’ simulation tools to Synopsys’ ARC processor IP and DSO.ai AI-driven debugging solution. Such integration can speed up testing and validation for customers building advanced chips, electronics and embedded software.

Leveraging Ansys’ Footprint Across Industries

Another driver for Synopsys is leveraging Ansys’ customer footprint across major industries developing smart, connected products. As a leader in physics simulation, Ansys serves over 11,000 organizations globally. Its customer base includes manufacturers in automotive, aerospace, 5G telecom and medical technology.

The merger can open cross-selling opportunities for Synopsys to provide its EDA tools – from IP libraries to verification software – to Ansys’ customers working on chip-centric system designs. It also gives Synopsys greater exposure to growing demand for simulations, modelling and digital twins driven by trends like metaverse platforms, autonomous vehicles and the Internet of Things.

According to Synopsys, the combined company will have a total addressable market exceeding $50 billion by 2025 – significantly broadening its market beyond EDA software. In addition, Ansys’ recurring revenue base can provide Synopsys more stability to weather downturns in the historically cyclical semiconductor market.

Executing a Complex Tech Industry Merger

Despite the strategic benefits, executing a merger of this scale will be complex. Ansys has over 3,700 employees worldwide. Integrating its engineering teams and R&D roadmap with Synopsys’ will take time and care. Synopsys also has work ahead to achieve the full vision of a integrated “silicon-to-software” platform based on the combined portfolios.

Most importantly, the companies need to preserve Ansys’ neutrality and multi-vendor interoperability as it moves under Synopsys’ ownership. Any perception that Ansys will favor Synopsys’ own tools following the merger could drive customers to exploring alternatives. Maintaining Ansys as an “open platform” will be key.

Nonetheless, the deal provides Synopsys – already on a strong growth trajectory – a significant opportunity to expand its enterprise software footprint. If successful, it could cement Synopsys as the premier player in next-generation chip design workflows and empower even smarter, connected, electronics-driven experiences. But realizing Ansys’ full value will require skillful integration by Synopsys at a scale it has never attempted before.