Month: July 2024

Luxury Retail Mergers and Acquisitions Reshape the Fashion Landscape

Posted on by cpatches

In a strategic move set to redefine the luxury retail sector, HBC, the parent company of Saks Fifth Avenue, announced plans to acquire Neiman Marcus Group for $2.65 billion. This landmark deal will pave the way for the formation of Saks Global, a powerhouse conglomerate encompassing Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman.

The acquisition comes amidst a turbulent period for brick-and-mortar retail, where consumer preferences have shifted towards experiential shopping over traditional goods. Luxury brands are increasingly bypassing department stores to establish direct connections with consumers through their own retail channels.

Marc Metrick, current CEO of Saks.com, will assume the role of CEO for the newly formed Saks Global, while Ian Putnam, President and CEO of HBC Properties and Investments, will lead the property and investments division.

This merger, long speculated upon, is expected to bolster the combined entity’s negotiating power with luxury brands, potentially driving down costs. It also marks a strategic alliance with tech giants Amazon and Salesforce, both of which will hold minority stakes in the new company. Amazon’s involvement underscores its ambition to penetrate the luxury retail market, leveraging its technological prowess and logistical infrastructure.

In a separate development reported by the Wall Street Journal, Arkhouse and Brigade Capital have increased their buyout offer for Macy’s to $6.9 billion. This revised bid represents a significant premium of nearly 43% over Macy’s closing price in December 2023, when the talks began. The proposal aims to acquire all outstanding Macy’s shares at $24.80 per share, indicating confidence in Macy’s potential despite its recent challenges.

Macy’s, facing declining sales and market share, has responded with store closures and strategic overhauls. Another option, taking the company private, could provide the flexibility needed to execute its turnaround plan away from the pressures of public markets.

Recent activity, and proposed activity, in the space highlights luxury brands trying to reposition themselves to survive in an ever-evolving consumer landscape that sees more and more consumers turning to online purchases and direct-to-consumer interaction. At the same time, it shows that many experts see the potential for a turnaround.

Gain more insight on the current, and future, state of the consumer, media, and tech sectors straight from the executives. Watch the replays from Noble’s recent virtual equity conference.

UK Election Results: Labour’s Victory and Market Implications

Posted on by cpatches

In a widely anticipated outcome, Conservative Party leader Rishi Sunak conceded defeat early Friday morning, marking the end of his tenure as Prime Minister after a 14-year Conservative majority. The Labour Party secured a commanding victory, claiming over 410 seats in the 650-member House of Commons.

Image Credit: Number 10 (flickr)

The UK economy faces ongoing challenges amidst elevated inflation rates and maintained high interest rates, part of the central bank’s efforts to navigate the post-COVID-19 recovery.

Market Impact and Sectoral Considerations:

Labour’s decisive win is expected to have significant implications across UK markets and sectors. While stock markets and the housing sector are likely to experience shifts, bond and currency markets may see more subdued responses, according to analysts.

Historically, UK election outcomes influence short-term market sentiment, with longer-term impacts contingent on policy decisions and economic stability. The UK has experienced a decade of political flux, impacting investor confidence and economic planning.

Policy Initiatives and Sectoral Reactions:

During their campaign, the Labour Party proposed policy changes likely to affect various sectors:

  • Plans to increase taxes on private equity fund managers and raise fines for water companies may influence investor sentiment in these areas.
  • Increased defense spending pledges could benefit technology, aerospace, and defense stocks.
  • Promises to prioritize housing availability and restore mandatory housebuilding targets may stimulate activity in the housing market and related sectors like home goods.

Currency and Interest Rate Outlook:

Forecasts for the stability of the British Pound vary among experts. While some anticipate minimal currency fluctuations, others suggest potential weakening due to proposed tax increases. Interest rates, currently elevated, could see adjustments under new economic policies, potentially affecting mortgage rates and housing market dynamics.

Historical Context:

This election result, while expected, underscores the influence of political outcomes on market sentiment and economic policy. Investor reactions are typically short-term, with sustained impacts reliant on policy implementation and economic fundamentals.

Conclusion:

As UK markets adjust to the new political landscape, investors will closely monitor policy developments and economic indicators for signs of stability and growth. The election outcome positions Labour to shape sectoral dynamics and investor strategies in the months ahead, highlighting the intersection of political events and financial markets.

Nano Dimension to Acquire Desktop Metal: A Game-Changer in Additive Manufacturing

Posted on by slightbourne@noblecapitalmarkets.com

The additive manufacturing landscape is set for a seismic shift as Nano Dimension Ltd. (Nasdaq: NNDM) announces its plans to acquire Desktop Metal, Inc. (NYSE: DM) in an all-cash transaction. This merger, expected to close in Q4 2024, promises to create a powerhouse in the 3D printing industry, offering investors a unique opportunity to capitalize on the burgeoning trend of digital manufacturing.

Under the terms of the agreement, Nano Dimension will purchase all outstanding shares of Desktop Metal for $5.50 per share, valuing the company at approximately $183 million. This represents a 27.3% premium to Desktop Metal’s closing price on July 2, 2024. However, investors should be aware that the final price could potentially decrease to $4.07 per share, reducing the total consideration to $135 million, depending on transaction expenses and other factors outlined in the agreement.

The strategic rationale behind this merger is compelling. By combining two complementary product portfolios, the new entity aims to create a comprehensive offering across metal, electronics, casting, polymer, micro-polymer, and ceramics applications. This broader product range is expected to accelerate the industry’s transition from prototyping to mass production, a key growth driver in the additive manufacturing sector.

The merger will also deepen the companies’ penetration in key end markets such as automotive, aerospace/defense, industrial, and medical. The combined entity will serve an impressive roster of blue-chip customers, including Amazon, Tesla, NASA, and the US Army, positioning it at the forefront of industry innovation and adoption.

From a financial perspective, the merged company is projected to have 2023 combined revenue of $246 million, with a notable 28% generated from recurring revenue streams. This recurring revenue component is particularly attractive to investors, as it provides more stable and predictable cash flows. Moreover, the deal is expected to generate over $30 million in run-rate synergies over the next few years, in addition to previously announced cost savings from each organization.

Post-merger, the combined entity is expected to boast a strong cash position of approximately $665 million (or $680 million at the reduced price scenario), providing ample resources for future growth initiatives and R&D investments. This financial strength, coupled with an installed base of over 8,000 systems, positions the new company to capitalize on significant opportunities in services and consumables, further enhancing its recurring revenue potential.

The merger positions the new company as a leader in the rapidly evolving additive manufacturing industry, particularly in the transition from prototyping to high-volume production. Investors should take note of the company’s focus on high-tech, premium margin solutions, which could lead to improved profitability in the long term. The diverse product portfolio and expanded customer base also provide some insulation against industry-specific risks.

However, potential investors should be aware of the challenges that come with such a significant merger. Integration risks, including the consolidation of operations across multiple geographies, could impact short-term performance. Additionally, the transaction is subject to approval by Desktop Metal’s stockholders and regulatory authorities, which introduces some uncertainty. The additive manufacturing industry is also highly competitive and rapidly evolving, which may require continuous innovation and investment to maintain market position.

For investors interested in the additive manufacturing sector and M&A activity, this deal offers an attractive entry point into a potentially transformative merger. The combined company’s strong financial position, diverse product offering, and focus on high-growth areas of digital manufacturing make it a compelling investment proposition. However, as with any merger, investors should closely monitor the integration process and the company’s ability to realize projected synergies. The potential for price adjustments also warrants attention, as it could impact the overall value of the deal.

In conclusion, the Nano Dimension-Desktop Metal merger represents a significant consolidation in the additive manufacturing industry, creating a well-capitalized leader with a comprehensive product portfolio. For investors willing to navigate the inherent risks of M&A transactions, this deal could offer substantial long-term value as the additive manufacturing industry continues its growth trajectory, potentially reshaping the future of manufacturing across multiple sectors.

Release – NN, Inc. Strengthens Balance Sheet Through Sale of Non-Core Plastic Plant

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on NNBR

Executing on Key Elements of Transformation Plan

CHARLOTTE, N.C., July 02, 2024 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced it has entered into a definitive agreement to sell its lone plastics products plant known as Industrial Molding Corporation (IMC), to Davalor Mold Company, a wholly owned portfolio company of Blackford Capital. Total net cash proceeds will be approximately $16 million.

“NN is underway with a strategic transformation that includes leveraging our core competencies and implementing a supportive balance sheet” said Harold Bevis, President and CEO of NN, Inc. “IMC is a good, stand-alone plastics injection-molding plant and is not core to our strategic direction. Our core competencies are centered upon delivering globally competitive, mission critical manufacturing solutions to discriminating buyers of high-value, high-precision components and sub-assemblies. This plant is not consistent with this direction and is more general-purpose in nature. Furthermore, the products and customers in this plant are unique to it and there will be no impact to NN’s remaining business. The plant’s business is centered in generic vehicle parts and ball bearing components.”

“A key element of NN’s transformation and leadership plan is to progressively correct our balance sheet back to market norms. We will pay down debt with the net proceeds from this transaction and continue to advance our balance sheet initiatives. We have a tremendous amount of opportunities in front of us and are excited to implement them. We will continue to focus and refine our business plans in our chosen markets of auto, electrical, industrial and medical,” said Bevis.

Updated 2024 Outlook

As a result of this portfolio divestiture and debt reduction and deleveraging transaction, NN is revising its full-year 2024 outlook modestly as follows:

  • Revenue will be in the range of $465 million to $485 million.
  • Adjusted EBITDA will be in the range of $47 million to $51 million.
  • Free cash flow will be in the range of $8 million to $12 million.
  • New business wins will be in the range of $55 million to $70 million.

NN is committed to creating a sustainable and profitable growth business model by participating in large growing markets; partnering with innovative customers on innovative programs; and providing unique value through a global footprint of plants delivering high quality and on-time performance. NN is also strengthening its core values around climate leadership, diversity, and inclusion.

Blaige & Company served as the exclusive financial advisor on the transaction.

About NN, Inc.

NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions, and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.

Investor & Media Contacts:
Joe Caminiti or Stephen Poe, Investors
Tim Peters or Emma Brandeis, Media
NNBR@alpha-ir.com
312-445-2870

NN, Inc. (NNBR) – Strengthening the Balance Sheet

Posted on by cpereira@noblefcm.com


Wednesday, July 03, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

Facility Sale. Last night after the market closed, NN disclosed the sale of its lone plastics products plant, known as Industrial Molding Corporation (IMC), to Davalor Mold Company, a wholly owned portfolio company of Blackford Capital. Total net cash proceeds will be approximately $16 million. The business was non-core to NN.

Use of Proceeds. NN will use the net proceeds from the sale to pay down debt. At the end of the first quarter, NN had $151.5 million of long-term debt outstanding. All else equal, we would anticipate the Company to pay down its term loan, which had an all in interest rate of 14.3% at the end of 1Q, compared to the ABL rate of 7.42%. A $16 million payment would result in over $2 million of interest cost savings.


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. 

Fed’s Powell Signals Extended High-Rate Environment

Posted on by slightbourne@noblecapitalmarkets.com

Federal Reserve Chair Jerome Powell’s recent comments at a central banking forum in Sintra, Portugal, have given investors fresh insights into the Fed’s thinking on interest rates and inflation. While acknowledging progress in the battle against inflation, Powell’s cautious tone suggests that investors should prepare for a more measured approach to monetary policy easing than many had initially anticipated.

Powell’s remarks highlight the delicate balance the Fed is trying to strike. On one hand, inflation has shown signs of cooling, with the Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation gauge – declining to a 2.6% annual rate in May. This represents significant progress from the 4% rate seen a year ago. However, it’s still above the Fed’s 2% target, which Powell doesn’t expect to reach until 2026.

For investors, this timeline is crucial. It suggests that while the Fed sees positive trends, it’s not ready to declare victory over inflation just yet. This cautious stance is reflected in Powell’s statement that the Fed wants to be “more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy.”

This careful approach has implications for various asset classes. Bond investors, who had initially priced in up to six quarter-point rate cuts for 2024, may need to recalibrate their expectations. Current market pricing now anticipates only two cuts, one in September and another before year-end. However, even this may be optimistic given that Fed officials have indicated just one cut in their latest projections.

Equity investors should also take note. The Fed’s commitment to bringing inflation down to its 2% target, even if it means maintaining higher rates for longer, could impact corporate earnings and valuations. Sectors that are particularly sensitive to interest rates, such as real estate and utilities, may face continued pressure if rates remain elevated.

Powell’s comments also touched on the risks of moving too quickly versus too slowly in adjusting monetary policy. He noted that cutting rates too soon could undo the progress made on inflation, while moving too late could unnecessarily undermine economic recovery. This balanced view suggests that the Fed is likely to err on the side of caution, potentially keeping rates higher for longer than some investors might prefer.

For global investors, it’s worth noting that Powell’s stance aligns with other major central banks. European Central Bank President Christine Lagarde, who was also present at the forum, has similarly emphasized the need for continued vigilance on inflation.

The Fed’s approach also has implications for currency markets. A more hawkish Fed stance relative to other central banks could support the U.S. dollar, potentially impacting multinational corporations and emerging market investments.

Looking ahead, investors should pay close attention to upcoming economic data, particularly inflation readings and labor market indicators. These will likely play a crucial role in shaping the Fed’s decisions in the coming months.

It’s also worth noting that Powell downplayed concerns about potential political influence on Fed policy, stating that the central bank remains focused on its mandate regardless of the political climate.

In conclusion, while the Fed sees progress on inflation, investors should prepare for a potentially slower path to monetary policy easing than initially expected. This underscores the importance of maintaining a diversified portfolio and staying attuned to economic indicators that could influence the Fed’s decision-making. As always, adaptability will be key in navigating the evolving economic landscape.

The Economic Impact of Hurricanes: Beryl’s Ongoing Caribbean Journey

Posted on by slightbourne@noblecapitalmarkets.com

As Hurricane Beryl continues its path through the Caribbean islands, leaving a trail of destruction in its wake, the economic implications of this powerful storm are unfolding in real-time. The hurricane’s landfall north of Grenada yesterday was just the beginning, with several other islands now bracing for impact. This developing situation serves as a stark reminder of the far-reaching economic consequences that hurricanes can have, not just on individual islands, but on entire regions.

The immediate economic effects of Beryl are already visible in some of , but as the storm progresses, we’re likely to see a domino effect across the Caribbean. Each island in Beryl’s path faces potential disruptions to key economic sectors such as tourism, agriculture, and offshore financial services. For investors, this means watching a rapidly changing situation that could affect multiple markets simultaneously.

In the short term, we’re seeing the typical pattern of economic contraction in affected areas. Businesses are closing, power outages are widespread, and transportation links are severed. This leads to immediate losses in productivity and revenue. However, the ongoing nature of Beryl’s journey means that these effects are not isolated to a single location but are spreading across the region, potentially amplifying the overall economic impact.

The insurance industry, always at the forefront of hurricane economics, is now facing a complex scenario. With multiple islands potentially affected, insurers are bracing for a wave of claims that could stretch across several jurisdictions. This could put significant pressure on the industry, possibly leading to reassessments of risk in the entire Caribbean region.

Energy markets are also on high alert. While the Caribbean isn’t a major oil and gas producer, the region is home to several refineries and is a key shipping route. Any disruptions to these facilities or shipping lanes could have ripple effects on global energy prices, adding another layer of complexity for investors to consider.

The tourism sector, a cornerstone of many Caribbean economies, is particularly vulnerable. As Beryl continues its path, we’re likely to see widespread cancellations and a potential long-term impact on visitor numbers across multiple islands. This could have a significant effect on the GDP of several nations, not just those directly hit by the hurricane.

For investors, the ongoing nature of Hurricane Beryl presents both challenges and opportunities. The construction and infrastructure sectors may see increased activity as multiple islands engage in reconstruction efforts simultaneously. However, this could also lead to resource competition and potential inflationary pressures in the region.

The long-term economic consequences of Beryl will likely be shaped by how the entire Caribbean region responds to this shared challenge. We may see increased cooperation in disaster preparedness and recovery efforts, potentially leading to new regional economic initiatives. This could create interesting investment opportunities in areas such as resilient infrastructure, regional insurance schemes, and climate adaptation technologies.

As we continue to monitor Beryl’s progress, it’s crucial for investors to think beyond individual islands and consider the interconnected nature of the Caribbean economy. The storm’s impact on regional supply chains, inter-island trade, and collective tourism branding could have lasting effects that extend far beyond the immediate damage.

Hurricane Beryl’s ongoing journey through the Caribbean underscores the complex and far-reaching economic impact of these storms. For investors, this evolving situation highlights the need for a dynamic, region-wide perspective when assessing risks and opportunities in hurricane-prone areas. As climate change continues to intensify the frequency and severity of such storms, understanding these broader, interconnected impacts will be essential for making informed investment decisions in an increasingly volatile world.

Release – Conduent Transportation Launches EMV Contactless Open Payment System on Venice Public Transportation Network

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

JULY 02, 2024

In time for summer, Venice public transportation network users can now pay for fares using contactless credit and debit cards

MILAN & FLORHAM PARK, N.J. — Conduent Transportation, a global provider of smart mobility technology solutions and business unit of Conduent Incorporated (Nasdaq: CNDT), today announced the launch of a contactless open payment system on the Venice transportation network managed by Azienda Veneziana della Mobilità (AVM).

The new EMV (Europay, Mastercard and Visa) open payment system allows passengers to pay with contactless credit and debit cards, offering easier access to AVM’s local public transport service in the metropolitan area of Venice, as well as the integrated mobility services in the urban area. The Conduent system also enables travelers to use NFC-enabled devices such as smartphones and smartwatches with digital wallets.

To support AVM’s transportation modernization initiative, Conduent supplied over 2,200 validators, which enable fare payment on Venice’s fleet of 149 vessels (water buses, speedboats, motorboats and ferries), more than 150 wharfs, 540 buses, 20 trams and two people movers. The validators offer a single point of validation not only for credit and debit cards but for all other media, such as Venezia Unica cards and electronic tickets. Approximately 180 million passengers travel on the Venice public transport network every year.

In addition, the system enables AVM to offer best fare pricing for the first time. Best fare pricing ensures that customers are automatically charged the lowest available price for the journeys taken each day.

“It’s been a few busy months of work that has made EMV technology a reality on the whole transport network managed by AVM,” said Giovanni Seno, General Manager of Gruppo AVM. “I thank all the company teams who have worked hard to achieve this important result, putting professionalism, competence and the desire to improve into their daily work. We have progressively improved the customer experience of the new validators – also listening to feedback received from passengers – and we are looking forward to the summer season with an innovation that has enormous potential, both in terms of market penetration and in terms of impact on our organization.”

“Conduent is honored to be part of AVM’s modernization program to enhance and elevate the network and experience for their passengers,” said Jean-Charles Zaia, President, Transit Solutions at Conduent. “Conduent contactless open payment systems, deployed around the world, are enhancing the services that transportation networks provide to benefit the passengers who use them.”

With Venice, Conduent has further expanded its deployment of EMV contactless open payment systems in the Veneto region, after implementing similar systems in Belluno and Verona . Conduent has also deployed contactless open payment systems in many cities in the Lombardy and Liguria regions.

Conduent Transportation and Elavon, as well as Visa, were selected by AVM in December 2022 to provide a convenient EMV payment system across its public transportation network.

Conduent Transportation is a leading provider of streamlined, high-volume mobility services and solutions, spanning road usage charging and advanced transit systems, that enhance the services provided by transportation agencies to benefit the citizens who use them. For over 50 years, the company has helped clients advance transportation solutions in more than 20 countries.

About Conduent

Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com .

Note: To receive RSS news feeds, visit www.news.conduent.com . For open commentary, industry perspectives and views, visit http://twitter.com/Conduent , http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent .

Trademarks

Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

ROBERT CORBISHLEY

Conduent

Robert.Corbishley@conduent.com

+44 (0) 7703 516569

GILES GOODBURN

Conduent

Release – Schwazze Announces Transition to OTC Expert Market and Provides Update on Delayed Filing

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on SHWZ

DENVER, July 01, 2024 (GLOBE NEWSWIRE) — Medicine Man Technologies, Inc., operating as Schwazze, (OTCQX: SHWZ) (Cboe CA: SHWZ) (“Schwazze” or the “Company”), today announced that its common stock will soon transition to the OTC Expert Market, under the ticker symbol “SHWZ” due to the Company’s delayed filing of its Form 10-Q for the period ended March 31, 2024, with the Securities and Exchange Commission (“SEC”). The delay was a result of an SEC Order regarding the Company’s previous auditor, BF Borgers CPA PC (“BF Borgers”), who was dismissed as Schwazze’s auditor prior to the SEC’s Order.

As previously announced on April 8, 2024, Schwazze dismissed BF Borgers as its independent registered public accountant and engaged Baker Tilly US, LLP (“Baker Tilly”) as its new independent accountant. Subsequent to the transition, on May 3, 2024, the SEC issued an Order to BF Borgers and its owner citing the deliberate and systemic failures to comply with Public Company Accounting Oversight Board (“PCAOB”) standards in its audits and reviews, which were incorporated in more than 1,500 SEC filings from January 2021 through June 2023 and affected at least 75 percent of BF Borgers’ 369 clients.

As a result of the SEC Order, the Company’s new auditor needs additional time to complete its prior period review before the Company files its Quarterly Report for the three months ended March 31, 2024. In addition, Baker Tilly is re-auditing its fiscal year 2023 financial statements and re-review the closing of its 2022 balance sheet prior to filing its 2024 Annual Report. Baker Tilly is actively working to re-audit the Company’s financial statements for the associated periods.

The Company intends to complete the necessary work to be current in its reporting obligations with the SEC in the coming months.

“Our decision to dismiss BF Borgers as our auditor was a strategic move to bolster our accounting rigor and it proved to be the right decision given the SEC’s subsequent charges on BF Borgers,” said Forrest Hoffmaster, Interim CEO of Schwazze. “Although our OTC listing was affected by BF Borgers’ actions, we are diligently working with our new auditor to complete the re-audit process in an efficient and timely manner. We are also pursuing recoveries for all fees related to BF Borgers.”

As a result of the delayed filing, Schwazze has sought from, and is in communication with, the Ontario Securities Commission (“OSC”) concerning the availability of a management cease trade order (“MCTO”) in respect of the missed deadline for the Quarterly Report ended March 31, 2024. If an MCTO is granted, it is expected that the general investing public will continue to be able to trade in the Company’s listed common shares, however, the Company’s Named Executive Officers will not be able to trade in the Company’s common shares. The Company confirms it will comply with the provisions of the alternative information guidelines under National Policy 12-203 – Management Cease Trade Orders for so long as an MCTO remains in effect.

About Schwazze

Schwazze (OTCQX: SHWZ) (Cboe CA: SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to explore taking its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale.

Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth. To learn more about Schwazze, visit https://schwazze.com/.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include financial outlooks; any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of our management team for future operations; expectations in connection with the Company’s previously announced business plans; any statements regarding future economic conditions or performance; and statements regarding the intent, belief or current expectations of our management team. Such statements may be preceded by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intends,” “plans,” “strategy,” “prospects,” “anticipate,” “believe,” “approximately,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other words of similar meaning in connection with a discussion of future events or future operating or financial performance, although the absence of these words does not necessarily mean that a statement is not forward-looking. We have based our forward-looking statements on management’s current expectations and assumptions about future events and trends affecting our business and industry. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Therefore, forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) regulatory limitations on our products and services and the uncertainty in the application of federal, state, and local laws to our business, and any changes in such laws; (ii) our ability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (iii) our ability to identify, consummate, and integrate anticipated acquisitions; (iv) general industry and economic conditions; (v) our ability to access adequate capital upon terms and conditions that are acceptable to us; (vi) our ability to pay interest and principal on outstanding debt when due; (vii) volatility in credit and market conditions; (viii) the loss of one or more key executives or other key employees; and (ix) other risks and uncertainties related to the cannabis market and our business strategy. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
ir@schwazze.com

Release – Lifeway Foods® Announces Inclusion in Russell 2000® Index

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on LWAY

Leading kefir company added as part of 2024 Russell Reconstitution

MORTON GROVE, Ill., July 1, 2024 /PRNewswire/ — Lifeway Foods, Inc. (Nasdaq: LWAY) (“Lifeway” or “the Company”), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, today announced that the Company has been included in the Russell 2000® and Russell 3000® Indexes, as part of the annual reconstitution of the Russell stock indexes, effective at the open of U.S. equity markets on July 1, 2024.

“We are pleased that Lifeway has earned inclusion in the Russell indexes,” said Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. “With our recent earnings report marking an incredible string of 18 consecutive quarters of revenue growth and 4 consecutive quarters of record net sales, we welcome the elevated visibility within the investment community. Being part of the Russell indexes enhances our visibility to the many institutions and funds that consider them a key market reference point. We are excited about the opportunity to increase our exposure and continue creating shareholder value.”

The Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. For more information on the Russell Indexes and the Reconstitution, visit the “Russell Reconstitution”  section on the FTSE Russell website.

About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes’ Best Small Companies, is America’s leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway’s tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland and France. Learn how Lifeway is good for more than just you at lifewayfoods.com.

Media:
Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net

General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net

Resources Connection (RGP) – Noble Consumer Virtual Conference

Posted on by cpereira@noblefcm.com


Tuesday, July 02, 2024

Resources Connection, Inc. provides agile consulting services in North America, Europe, and the Asia Pacific. The company offers finance and accounting services, including process transformation and optimization, financial reporting and analysis, technical and operational accounting, merger and acquisition due diligence and integration, audit readiness, preparation and response, implementation of new accounting standards, and remediation support. It also provides information management services, such as program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic communications, and restructuring services; and corporate governance, risk, and compliance management services, such as contract and regulatory compliance, enterprise risk management, internal controls management, and operation and information technology (IT) audits. Further, it provides supply chain management services comprising strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and human capital services, including change management, organization development and effectiveness, compensation and incentive plan strategies, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategies and analytics. It also provides policyIQ, a proprietary cloud-based governance, risk, and compliance software application. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

Conference. We hosted Resources Connection CEO Kate Duchene and CFO Jennifer Ryu at the Noble Capital Emerging Growth Conference on June 26th. Management’s presentation as well as a Q&A session can be found at https://www.channelchek.com/videos/resources-connection-inc-rgp-noble-capital-markets-virtual-consumer-tmt-conference-replay. The following are key highlights of the presentation.

Poised to Capitalize on the Upcycle. With client decision timetables extending during 2023, management mitigated costs but retained key consultants in anticipation of a return to normal business trends. North America, which carries a higher margin profile than its International segment, appears poised to break out, with RGP in discussions with clients about budgets and looking at assessments.


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. 

Information Services Group (III) – Noble Consumer Virtual Conference

Posted on by cpereira@noblefcm.com


Tuesday, July 02, 2024

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

Conference. We hosted Information Services Group CEO Michael Connors and CFO Michael Sherrick at the Noble Capital Emerging Growth Conference on June 26th. The entire presentation and Q&A session can be found at https://www.channelchek.com/videos/isg-iii-noble-capital-markets-virtual-consumer-tmt-conference-replay. The following are key highlights of the presentation.

Recurring Revenue. ISG highlighted its goal of reaching $150 million in recurring revenue. The Company had recurring revenue of $125 million in 2023, a 16% uplift from 2022. ISG is already off to a good start in 2024 as approximately half of the Company’s $64.3 million of first quarter revenue was recurring. We believe that the Company can achieve its goal.


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. 

Comtech Telecommunications (CMTL) – Noble Consumer Virtual Conference

Posted on by cpereira@noblefcm.com


Tuesday, July 02, 2024

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

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

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

Conference. We hosted Comtech Communications CFO Michael Bondi at the Noble Capital Emerging Growth Conference on June 26th. Mr. Bondi’s presentation and a Q&A session can be accessed at https://www.channelchek.com/videos/comtech-telecommunications-cmtl-noble-capital-markets-virtual-consumer-tmt-conference-replay. The following are key highlights of the presentation.

Company Wins. Management highlighted key contract wins of the past twelve months including the $544 million GFSR contract, nearly $50 million of Army SATCOM solutions, and numerous NG911 awards, including Massachusetts, Washington, and North Central Texas. These awards will not only drive future operating results but are a testament to Comtech’s position in the marketplace, even during its turbulent refi 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.