Release – 1-800-FLOWERS.COM Inc. Reports 7.5 Percent Revenue Growth for Its Fiscal 2022 Second Quarter

Posted on January 27, 2022 by Admin

1-800-FLOWERS.COM, Inc. Reports 7.5 Percent Revenue Growth for Its Fiscal 2022 Second Quarter

Research, News, and Market Data on 1-800-FLOWERS.COM

Jan 27, 2022

Total net revenues increased 7.5 percent, or $65.8 million, to $943.0 million, compared with $877.3 million in the prior year period. This revenue growth was on top of the 44.8 percent revenue growth reported in the Company’s 2021 fiscal second quarter.
Net income for the quarter was $88.5 million, or $1.34 per diluted share compared with net income of $113.7 million, or $1.71 per diluted share, in the prior year period, primarily reflecting significant year-over-year cost increases for inbound and outbound shipping, labor, and digital marketing. Adjusted net income¹ for the quarter was $88.6 million, or $1.34 per diluted share, compared with adjusted net income¹ of $114.2 million, or $1.72 per diluted share, in the prior year period.
Adjusted EBITDA¹ for the quarter was $133.1 million, down 19.0 percent compared with adjusted EBITDA¹ of $164.3 million in the prior year period.
Company provides revised full-year guidance including revenue growth of 7.0 percent-to-9.0 percent, adjusted EBITDA in a range of $140.0 million-to-$150.0 million and EPS in a range of $0.90 -to- $1.00 per diluted share.

(¹ Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results.)

JERICHO, N.Y.–(BUSINESS WIRE)– 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading e-commerce provider of products and services designed to inspire more human expression, connection, and celebration, today reported results for its fiscal 2022 second quarter ended December 26, 2021.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “Our revenue growth of 7.5 percent in the quarter – on top of the 45 percent growth in last year’s fiscal second quarter – reflected continued growth across our three business segments, highlighted by growth of approximately ten percent in our Gourmet Foods and Gift Baskets segment, led by our Harry & David^® brand.” McCann noted that, in addition to representing a very challenging year-over-year comparison, the holiday period was characterized by several significant headwinds including limited availability and increased costs for seasonal labor, ongoing supply-chain disruptions that caused shortages of key components for some holiday products and the resurgence of COVID pandemic cases across the country. “The widely reported cost increases associated with these macro headwinds significantly exceeded our expectations during the quarter, impacting our margins and bottom-line results,” he said.

McCann said the Company will continue to invest in its operating platform, including initiatives to bring imported inventory in early and optimize outbound shipping methods as well as automating of its warehouse and distribution facilities to help mitigate the continuing cost headwinds. “Over the longer term, we anticipate these initiatives will enable us to improve our gross margins and drive enhanced bottom-line performance.”

McCann noted that during the second quarter the Company saw continued strong, year-over-year growth in its customer file and in its Celebrations Passport^® loyalty program, which helps drive increased purchase frequency, retention, and cross-category/cross-brand purchases. “We also saw double-digit growth in our best performing customer cohort – customers that buy from multiple product categories and multiple brands within a given year. We believe these positive trends will provide increased marketing leverage over the longer term, particularly as we continue to see a larger percentage of our total revenues coming from existing customers.”

Second Quarter 2022 Financial Results
Total consolidated revenues increased 7.5 percent, or
$65.8 million, to
$943.0 million, compared with
$877.3 million in the prior year period. This revenue growth was on top of the 44.8 percent revenue growth reported in the Company’s 2021 fiscal second quarter. The Company achieved revenue growth across its three business segments, including growth of 9.8 percent in its Gourmet Foods and Gift Baskets segment, led by growth of more than 10.0 percent in its Harry & David brand.

Gross profit margin for the quarter was 40.1 percent, a decline of 530 basis points compared with 45.4 percent in the prior year period, primarily reflecting increased costs for inbound and outbound shipping and labor. Operating expenses as a percent of total revenues, improved 70 basis points to 27.9 percent of total sales, compared with 28.6 percent of total sales in the prior year period.

The combination of these factors resulted in net income for the quarter of
$88.5 million, or
$1.34 per diluted share compared with net income of
$113.7 million, or
$1.71 per diluted share, in the prior year period, primarily reflecting significant year-over-year cost increases in labor, inbound and outbound shipping, and digital marketing. Adjusted net income¹ for the quarter was
$88.6 million, or
$1.34 per share, compared with adjusted net income of
$114.2 million, or
$1.72 per share, in the prior year period. Adjusted EBITDA¹ for the quarter was
$133.1 million, down 19.0 percent compared with adjusted EBITDA¹ of
$164.3 million in the prior year period.

Segment Results:
The Company provides selected financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet^® segments in the tables attached to this release and as follows:

Gourmet Foods and Gift Baskets: Revenues for the quarter increased 9.8 percent to
$590.9 million, compared with
$538.3 million in the prior year period. The strong growth was primarily driven by growth of more than 10.0 percent in the Company’s Harry & David business. Gross profit margin was 39.3 percent, a decline of 660 basis points compared with 45.9 percent in the prior year period, primarily reflecting increased costs for inbound and outbound shipping as well as limited availability and higher costs for labor. Segment contribution margin was
$110.5 million, down 18.5 percent compared with
$135.6 million in the prior year period, reflecting the reduced gross margin as well as higher year-over-year digital marketing costs.
Consumer Floral and Gifts: Total revenues in this segment increased 3.2 percent to
$315.1 million, compared with
$305.5 million in the prior year period. Gross profit margin was 41.3 percent, down 270 basis points compared with 44.0 percent in the prior year period, primarily reflecting increased costs for inbound and outbound shipping and labor. Segment contribution margin was
$38.2 million, down 16.4 percent compared with
$45.7 million in the prior year period, primarily reflecting the reduced gross margin as well as higher year-over-year digital marketing costs.
BloomNet: Revenues for the quarter increased 11.4 percent to
$37.9 million, compared with
$34.1 million in the prior year period. Gross profit margin was 42.2 percent, down 720 basis points, compared with 49.4 percent in the prior year period, primarily reflecting higher inbound shipping costs and product mix. Segment contribution margin was
$11.9 million, down 2.1 percent compared with
$12.1 million in the prior year period primarily reflecting increased in-bound and outbound shipping costs which reduced gross margin.

Company Guidance
The Company is updating its guidance for the fiscal 2022 year reflecting reported results for the first half of the year as well as its outlook for the remainder of the year. The updated guidance includes:

Total revenue growth of 7.0 percent-to-9.0 percent compared with the prior year;
Adjusted EBITDA in a range of
$140.0 million-to-
$150.0 million;
EPS in a range of
$0.90 -to-
$1.00 per diluted share, and;
The Company anticipates that Free Cash Flow for the year will be down significantly compared with the prior year based on its updated guidance and its plans to use its strong balance sheet to continue to invest in inventory to support its growth plans and address the headwinds it sees in the macro economy.

The Company’s guidance for the year is based on several factors, including:

the continuing headwinds associated with the ongoing pandemic, increased costs for labor, inbound and outbound shipping, and marketing as well as consumer concerns regarding rising price inflation somewhat offset by;
the Company’s ability to continue to attract new customers and add new members to its Celebrations Passport® loyalty program, which is helping drive increased frequency, retention, and cross-category/cross-brand purchases.

Definitions of non-GAAP Financial Measures:
We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with
U.S. generally accepted accounting principles(“GAAP”). Certain of these are considered “non-GAAP financial measures” under the
U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “non-GAAP” or designated as such with a “¹”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

EBITDA and Adjusted EBITDA:
We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Plan Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of the limitations are: (a) EBITDA and adjusted EBITDA do not reflect changes in, or cash requirements for, the Company’s working capital needs; (b) EBITDA and adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company’s performance.

Segment Contribution Margin and Adjusted Segment Contribution Margin:
We define segment contribution margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted contribution margin is defined as contribution margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how segment contribution margin and adjusted segment contribution margin was calculated for each period presented. When viewed together with our GAAP results, we believe segment contribution margin and adjusted segment contribution margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment contribution margin and adjusted segment contribution margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of the segment contribution margin and adjusted segment contribution margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as operating income and net income.

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:
We define adjusted net income (loss) and adjusted or comparable net income (loss) per common share as net income (loss) and net income (loss) per common share adjusted for certain items affecting period to period comparability. See Selected Financial Information below for details on how adjusted net income (loss) and adjusted or comparable net income (loss) per common share were calculated for each period presented. We believe that adjusted net income (loss) and adjusted or comparable EPS are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP net income (loss) and net income (loss) per common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

Free Cash Flow:
We define free cash flow as net cash provided by operating activities less capital expenditures. The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free cash flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since free cash flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period.

About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect and celebrate. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Stock Yards® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad range of products and services designed to help members grow their businesses profitably Napco?, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; and Alice’s Table®, a lifestyle business offering fully digital livestreaming floral, culinary and other experiences to guests across the country. 1-800-FLOWERS.COM, Inc. was recognized among the top 5 on the National Retail Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s fastest-growing retail companies. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.

FLWS-COMP
FLWS-FN

Special Note Regarding Forward Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company’s ability to achieve its guidance for fiscal-year 2022; the impact of the Covid-19 pandemic on the Company; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; its ability to cost-effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. Reconciliations for forward looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including for example those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The lack of such reconciling information should be considered when assessing the impact of such disclosures. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

Conference Call:
The Company will conduct a conference call to discuss the above details and attached financial results today, Thursday, January 27, 2022, at 8:00 a.m. (ET). The conference call will be webcast live from the Investor Relations section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investor Relations section of the Company’s web site within two hours of the call’s completion. A replay of the call can be accessed beginning at 2:00 p.m. ET on the day of the call through February 3, 2022, at: (US) 1-877-344-7529; (
Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #:5113256.

Note: The attached tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.

1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)

	December 26, 2021		June 27, 2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	271,068	$	173,573
Trade receivables, net		77,797		20,831
Inventories, net		191,050		153,863
Prepaid and other		32,956		51,792
Total current assets		572,871		400,059

Property, plant and equipment, net		226,660		215,287
Operating lease right-of-use assets		134,932		86,230
Goodwill		212,533		208,150
Other intangibles, net		147,178		139,048
Other assets		27,164		27,905
Total assets	$	1,321,338	$	1,076,679

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	109,257	$	57,434
Accrued expenses		279,345		178,512
Current maturities of long-term debt		20,000		20,000
Current portion of long-term operating lease liabilities		12,344		9,992
Total current liabilities		420,946		265,938

Long-term debt, net		151,844		161,512
Long-term operating lease liabilities		128,620		79,375
Deferred tax liabilities		32,856		34,162
Other liabilities		22,112		26,622
Total liabilities		756,378		567,609
Total stockholders’ equity		564,960		509,070
Total liabilities and stockholders’ equity	$	1,321,338	$	1,076,679

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited)

	Three Months Ended						Six Months Ended
	December 26, 2021			December 27, 2020			December 26, 2021			December 27, 2020
Net revenues:
E-Commerce	$	827,522		$	777,810		$	1,090,893		$	1,016,673
Other		115,522			99,446			161,524			144,355
Total net revenues		943,044			877,256			1,252,417			1,161,028
Cost of revenues		564,594			479,010			748,453			647,302
Gross profit		378,450			398,246			503,964			513,726
Operating expenses:
Marketing and sales		207,771			194,696			302,150			274,981
Technology and development		13,490			14,053			26,913			25,656
General and administrative		28,872			30,835			55,938			59,048
Depreciation and amortization		12,588			11,060			23,558			19,900
Total operating expenses		262,721			250,644			408,559			379,585
Operating income		115,729			147,602			95,405			134,141
Interest expense, net		1,723			1,927			3,251			2,967
Other income, net		(2,457	)		(2,257	)		(3,053	)		(3,256	)
Income before income taxes		116,463			147,932			95,207			134,430
Income tax expense		27,995			34,255			19,938			30,515
Net income	$	88,468		$	113,677		$	75,269		$	103,915

Basic net income per common share	$	1.36		$	1.76		$	1.16		$	1.61

Diluted net income per common share	$	1.34		$	1.71		$	1.14		$	1.56

Weighted average shares used in the calculation of net income per common share:
Basic		65,261			64,728			65,161			64,524
Diluted		65,969			66,543			65,954			66,593

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited)

	Six months ended
	December 26, 2021			December 27, 2020

Operating activities:
Net income	$	75,269		$	103,915
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23,558			19,900
Amortization of deferred financing costs		616			545
Deferred income taxes		(1,306	)		(1,388	)
Bad debt expense		(1,285	)		341
Stock-based compensation		5,296			5,358
Other non-cash items		(448	)		(321	)
Changes in operating items:
Trade receivables		(55,074	)		(56,372	)
Inventories		(28,534	)		25,369
Prepaid and other		8,172			(1,937	)
Accounts payable and accrued expenses		160,459			212,340
Other assets and liabilities		(875	)		8,897
Net cash provided by operating activities		185,848			316,647

Investing activities:
Acquisitions, net of cash acquired		(20,786	)		(250,943	)
Capital expenditures, net of non-cash expenditures		(32,608	)		(15,708	)
Purchase of equity investments		–			(1,285	)
Net cash used in investing activities		(53,394	)		(267,936	)

Financing activities:
Acquisition of treasury stock		(25,521	)		(12,470	)
Proceeds from exercise of employee stock options		846			1,032
Proceeds from bank borrowings		125,000			265,000
Repayment of bank borrowings		(135,000	)		(170,000	)
Debt issuance cost		(284	)		(2,193	)
Net cash used in (provided by) financing activities		(34,959	)		81,369

Net change in cash and cash equivalents		97,495			130,080
Cash and cash equivalents:
Beginning of period		173,573			240,506
End of period	$	271,068		$	370,586

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)

	Three Months Ended
	December 26, 2021			Vital Choice and Alices’s Table Transaction Costs		As Adjusted (non-GAAP) December 26, 2021			December 27, 2020			PersonalizationMall Litigation & Transaction Costs		Harry & David Store Closure Costs			As Adjusted (non-GAAP) December 27, 2020			% Change
Net revenues:
Consumer Floral & Gifts	$	315,083		$	–	$	315,083		$	305,357		$	–	$	–		$	305,357		3.2	%
BloomNet		37,930					37,930			34,051								34,051		11.4	%
Gourmet Foods & Gift Baskets		590,946					590,946			538,265								538,265		9.8	%
Corporate		69					69			135								135		-48.9	%
Intercompany eliminations		(984	)				(984	)		(552	)							(552	)	-78.3	%
Total net revenues	$	943,044		$	–	$	943,044		$	877,256		$	–	$	–		$	877,256		7.5	%

Gross profit:
Consumer Floral & Gifts	$	130,025				$	130,025		$	134,474							$	134,474		-3.3	%
		41.3	%				41.3	%		44.0	%							44.0	%

BloomNet		16,021					16,021			16,820								16,820		-4.8	%
		42.2	%				42.2	%		49.4	%							49.4	%

Gourmet Foods & Gift Baskets		232,239					232,239			246,890								246,890		-5.9	%
		39.3	%				39.3	%		45.9	%							45.9	%

Corporate		165					165			62								62		166.1	%
		239.1	%				239.1	%		45.9	%							45.9	%

Total gross profit	$	378,450		$	–	$	378,450		$	398,246		$	–	$	–		$	398,246		-5.0	%
		40.1	%		–		40.1	%		45.4	%		–		–			45.4	%

EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts	$	38,156		$	–	$	38,156		$	45,657		$	–	$	–		$	45,657		-16.4	%
BloomNet		11,887					11,887			12,141								12,141		-2.1	%
Gourmet Foods & Gift Baskets		110,502					110,502			135,621					(78	)		135,543		-18.5	%
Segment Contribution Margin Subtotal		160,545			–		160,545			193,419			–		(78	)		193,341		-17.0	%
Corporate (b)		(32,228	)		59		(32,169	)		(34,757	)		513					(34,244	)	6.1	%
EBITDA (non-GAAP)		128,317			59		128,376			158,662			513		(78	)		159,097		-19.3	%
Add: Stock-based compensation		2,291					2,291			2,965								2,965		-22.7	%
Add: Compensation charge related to NQ Plan Investment Appreciation		2,425					2,425			2,227								2,227		8.9	%
Adjusted EBITDA (non-GAAP)	$	133,033		$	59	$	133,092		$	163,854		$	513	$	(78	)	$	164,289		-19.0	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)

	Six Months Ended
	December 26, 2021			Vital Choice and Alice’s Table Transaction Costs		As Adjusted (non-GAAP) December 26, 2021			December 27, 2020			PersonalizationMall Litigation & Transaction Costs		Harry & David Store Closure Costs			As Adjusted (non-GAAP) December 27, 2020			% Change
Net revenues:
Consumer Floral & Gifts	$	496,312		$	–	$	496,312		$	466,903		$	–	$	–		$	466,903		6.3	%
BloomNet		68,764					68,764			66,789								66,789		3.0	%
Gourmet Foods & Gift Baskets		688,428					688,428			628,194								628,194		9.6	%
Corporate		114					114			241								241		-52.7	%
Intercompany eliminations		(1,201	)				(1,201	)		(1,099	)							(1,099	)	-9.3	%
Total net revenues	$	1,252,417		$	–	$	1,252,417		$	1,161,028		$	–	$	–		$	1,161,028		7.9	%

Gross profit:
Consumer Floral & Gifts	$	206,028		$	–	$	206,028		$	200,060		$	–	$	–		$	200,060		3.0	%
		41.5	%				41.5	%		42.8	%							42.8	%

BloomNet		31,430					31,430			31,658								31,658		-0.7	%
		45.7	%				45.7	%		47.4	%							47.4	%

Gourmet Foods & Gift Baskets		266,402					266,402			281,897								281,897		-5.5	%
		38.7	%				38.7	%		44.9	%							44.9	%

Corporate		104					104			111								111		-6.3	%
		91.2	%				91.2	%		46.1	%							46.1	%

Total gross profit	$	503,964		$	–	$	503,964		$	513,726		$	–	$	–		$	513,726		-1.9	%
		40.2	%		–		40.2	%		44.2	%		–		–			44.2	%

EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts	$	57,346		$	–	$	57,346		$	64,893		$	–	$	–		$	64,893		-11.6	%
BloomNet		22,747					22,747			22,562								22,562		0.8	%
Gourmet Foods & Gift Baskets		102,829					102,829			133,040					(483	)		132,557		22.4	%
Segment Contribution Margin Subtotal		182,922			–		182,922			220,495			–		(483	)		220,012		-16.9	%
Corporate (b)		(63,959	)		515		(63,444	)		(66,454	)		5,403					(61,051	)	-3.9	%
EBITDA (non-GAAP)		118,963			515		119,478			154,041			5,403		(483	)		158,961		-24.8	%
Add: Stock-based compensation		5,296					5,296			5,358								5,358		-1.2	%
Add: Compensation charge related to NQ Plan Investment Appreciation		2,992					2,992			3,207								3,207		-6.7	%
Adjusted EBITDA (non-GAAP)	$	127,251		$	515	$	127,766		$	162,605		$	5,403	$	(483	)	$	167,526		-23.7	%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)

Reconciliation of net income to adjusted net income (non-GAAP):	Three Months Ended					Six Months Ended
	December 26, 2021		December 27, 2020			December 26, 2021			December 27, 2020

Net income	$	88,468	$	113,677		$	75,269		$	103,915
Adjustments to reconcile net income to adjusted net income (non-GAAP)
Add: Transaction costs		59		513			515			5,403
Deduct: Harry & David store closure cost adjustment		–		(78	)		–			(483	)
Deduct: Income tax effect on adjustments		65		125			(108	)		(1,117	)
Adjusted net income (non-GAAP)	$	88,592	$	114,237		$	75,676		$	107,718

Basic and diluted net income per common share
Basic	$	1.36	$	1.76		$	1.16		$	1.61
Diluted	$	1.34	$	1.71		$	1.14		$	1.56


Basic and diluted adjusted net income per common share (non-GAAP)
Basic	$	1.36	$	1.76		$	1.16		$	1.67
Diluted	$	1.34	$	1.72		$	1.15		$	1.62

Weighted average shares used in the calculation of net income and adjusted net income per common share
Basic		65,261		64,728			65,161			64,524
Diluted		65,969		66,543			65,954			66,593

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)

Reconciliation of net income to adjusted EBITDA (non-GAAP):	Three Months Ended						Six Months Ended
	December 26, 2021			December 27, 2020			December 26, 2021		December 27, 2020

Net income	$	88,468		$	113,677		$	75,269	$	103,915
Add: Interest (income) expense, net		(734	)		(330	)		198		(289	)
Add: Depreciation and amortization		12,588			11,060			23,558		19,900
Add: Income tax expense		27,995			34,255			19,938		30,515
EBITDA		128,317			158,662			118,963		154,041
Add: Stock-based compensation		2,291			2,965			5,296		5,358
Add: Compensation charge related to NQ plan investment appreciation		2,425			2,227			2,992		3,207
Add: Transaction costs		59			513			515		5,403
Deduct: Harry & David store closure cost adjustment		–			(78	)		–		(483	)
Adjusted EBITDA	$	133,092		$	164,289		$	127,766	$	167,526

(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance.

(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

Investor Contact:

Joseph D. Pititto

(516) 237-6131

invest@1800flowers.com

Media Contact:

Kathleen Waugh

(516) 237-6028

kwaugh@1800flowers.com

Source: 1-800-FLOWERS.COM, Inc.

Comtech (CMTL) – Rejects Acacia Offer

Posted on January 27, 2022 by Admin

Thursday, January 27, 2022

Comtech (CMTL)
Rejects Acacia Offer

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, Senior Research Analyst, Noble Capital Markets, Inc.

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

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

Rejects Acacia. Comtech’s Board has unanimously rejected Acacia Research Corporation’s October 29th offer to purchase Comtech for $30 per share. Comtech’s new Board, including a representative from Outerbridge, concluded Acacia’s offer “grossly undervalues the Company and is not in the best interest of Comtech’s shareholders.”

Not A Surprise. We are not surprised by the rejection as, at the time of the offer announcement, we had noted that Outerbridge had originally valued Comtech in the $32-$41 range and subsequently had valued Comtech’s NG911 business alone as worth more than its previously stated range …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.

Avivagen Inc. (VIVXF)(VIV:CA) – Names A President, Reports Fiscal 2021 Results

Posted on January 27, 2022 by Admin

Thursday, January 27, 2022

Avivagen Inc. (VIVXF)(VIV:CA)
Names A President, Reports Fiscal 2021 Results

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

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

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

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

4Q21 Results. Avivagen’s management reported revenue of $368,504 (all figures in Canadian $) in the quarter, up from $287,897 last year, but down from our estimated revenue of $1.4 million. The miss is mostly due to a Philippines order that will be recognized in the first quarter of fiscal 2022. Net loss for the quarter was $1.4 million, or $0.03 per share versus a net loss of $1.2 million, or $0.03 per share, in 4Q20. We had forecasted a net loss of $993,00, or $0.02 per share.

FY21 Results. Revenue for the 2021 fiscal year was reported at $1.3 million, a $0.1 million increase over the prior year’s $1.2 million. Operating loss for the year totaled $4.1 million compared to a loss of $3.4 million in fiscal 2020, due to an increase in finance cost and increasing operational expenses. Net loss was reported at $6.4 million or $0.12 per share, versus a $4.8 million loss, or …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Aurania Resources (AUIAF)(ARU:CA) – Temporary Suspension of Activities in Ecuador; Key Executive Departs

Posted on January 27, 2022 by Admin

Thursday, January 27, 2022

Aurania Resources (AUIAF)(ARU:CA)
Temporary Suspension of Activities in Ecuador; Key Executive Departs

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

Temporary suspension of activities. Aurania has suspended a majority of activities temporarily in Ecuador where the government recently issued a “Red Alert” for 193 of 195 Cantons due to increasing coronavirus cases. Due to the area where it operates, Aurania has greater exposure to indigenous communities that are vulnerable to infection. Moreover, there are currently nine active COVID cases among Aurania’s personnel. The suspension of activities is expected to last roughly one month although field work may continue with reduced personnel in areas where there is no interaction with local communities.

Tsenken Hole 9 Results. Results were received from Hole TSN1-009 at Tsenken which tested for copper-silver mineralization in evaporite mineral beds within sedimentary layers and sampled the contact of a salt wall lying along a prominent fault structure. The hole was intended to intersect a target at a depth of 400 to 500 meters but stopped at a depth of 369 meters due to a collapse in the salt …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Would the Crypto Market Trend Up With Bidens Clear Set of Rules

Posted on January 27, 2022 by Admin

Cryptocurrency Executive Order from White House Could Come Before President’s Day

The White House, according to Bloomberg, is said to be drafting an executive order for cryptocurrencies. It is more focused on being restrictive than creating a level playing field for all currencies. The expectation is the chief executive could execute the order during the month of February.

President Biden is looking to get ahead of crypto issues and give regulation a priority. The plan tasks multiple federal agencies to evaluate risks and opportunities within the digital currency environment. Bloomberg cited unnamed sources when they suggested that the reports were expected to be presented to the White House quickly.

Senior Biden administration officials have already had several talks related to the plan. Their recommendations are due to be submitted to the chief executive in the coming weeks, according to the report.

As technology rapidly changes, under current statutes and regs, there is no definitive legal framework for cryptocurrency or the regulation of crypto exchanges. The Securities and Exchange Commission (SEC), for its part, has been calling for a greater level of oversight over the crypto market.

Blockchain and digital assets are a challenge for most to understand, this is why so many outright dismiss the asset. Other skeptics point to the lack of clarity in crypto-related policy as a reason not to get involved. Executives within the industry like Sam Bankman-Fried the CEO at FTX have called for more regulation, saying it would remove barriers to entry for many retail and institutional investors.

The push by the Biden White House puts the executive branch at the center of efforts to set policies and regulate the new market. The related potential oversight agencies have been waiting for legislative guidance. This development follows a sell-off in crypto markets which follows other asset weaknesses in the face of higher costs to participate in the economy. Bitcoin which traded above $68,000 in November broke below $36,000 and ether fell below $2,500, wiping out $350 billion in value from the total crypto market over the weekend.

Federal agencies, including the Financial Stability Oversight Council, are tasked with publishing reports on the systemic impacts and illicit uses of cryptocurrencies. A similar report from the Federal Reserve had detailed the pros and cons of a central bank digital currency, or fully digitizing the U.S. dollar with a “legal tender” status.

According to the report, the executive order is expected to ensure the U.S. is not left behind, but is a competitive player in the evolving field of digital assets.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading

Is Biden Tightening the Reins on Large Companies?

Federal Marijuana Laws are Half-In/Half-Out Says Justice Clarence Thomas

Will the SEC Allow ETFs to Own Cryptocurrency?

How Close is the U.S. to Having a Digital Currency?

Sources

https://www.bloomberg.com/news/articles/2022-01-21/white-house-is-set-to-put-itself-at-center-of-u-s-crypto-policy?sref=3REHEaVI

https://time.com/nextadvisor/investing/cryptocurrency/bitcoin-record-high-price

https://www.barrons.com/articles/cryptocurrency-exchanges-regulation-sec-coinbase-51620335275

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Release – Ocugen Inc. Signs Letter of Intent to Acquire Vaccine Manufacturing R D Hub in Ontario Canada

Posted on January 27, 2022 by Admin

Ocugen, Inc. Signs Letter of Intent to Acquire Vaccine Manufacturing, R&D Hub in Ontario, Canada

Research, News, and Market Data on Ocugen

Dormant Vaccine Manufacturing site currently owned by an affiliate of Liminal BioSciences intended to bring new capabilities to Ocugen’s medicine portfolio of Canadian and U.S. companies
COVAXIN™ (BBV152), if approved, to be the first product manufactured in new upgraded facility
New facility includes potential for manufacturing for breakthrough gene therapies and serve as R&D hub
Site development, refurbishment and manufacturing intended to bring significant new regional economic opportunities

MALVERN, Pa., Jan. 27, 2022 (GLOBE NEWSWIRE) — Ocugen, Inc. (NASDAQ: OCGN), a biopharmaceutical company focused on discovering, developing, and commercializing breakthrough gene therapies and vaccines, announced that it has signed a non-binding letter of intent (LOI) with Liminal BioSciences, Inc. a Canadian public company with shares listed on NASDAQ for the acquisition of their manufacturing site in Belleville, Ontario, for an undisclosed amount.

This site would enable Ocugen to expand its manufacturing and research and development capabilities to support its pipeline. This includes the manufacture of COVAXIN™ (BBV152), the company’s COVID-19 vaccine candidate, which was submitted to Health Canada for regulatory review by Ocugen’s Canadian affiliate, Vaccigen Ltd. This vaccine manufacturing facility has the potential to help Canada in its efforts to control the current and future pandemics for all Canadians.

“We believe establishing a manufacturing and R&D hub for our biotechnology platform is the right investment and next evolution of our business. This site, after transformation into a state-of-the-art hub, with the support of the regional talent pool can help bring our innovative products – from vaccines to our modifier gene therapy assets – to the patients we will serve globally,” said Dr. Shankar Musunuri, Chairman, CEO and Co-Founder, Ocugen, Inc.

“We’re here to deliver to Canadians medical innovation that is going to make a difference in their lives. It’s also our intent to bring new opportunities for employment to the Belleville community that over time may bring significant economic growth to Ontario,” commented Dr. Ajay Potluri, Chief Executive Officer, Vaccigen Ltd.

“We are excited to see Ocugen’s plans to repurpose our dormant vaccine manufacturing facility and create vaccine manufacturing capacity in Canada. We thank Minister Champagne and his team at Innovation Science Economic Development (ISED) Canada who facilitated the introduction to Ocugen and Vaccigen.,” said Alek Krstajic, Chairman of the Board, Liminal BioSciences.

“We believe this could be an exciting opportunity for everyone involved, Liminal BioSciences, Ocugen, the province of Ontario, and most of all, the people of Canada, and we’re pleased to help facilitate this event by potentially selling a dormant vaccine manufacturing facility which is non-core to Liminal Biosciences and could be strategic to Ocugen,” said Peter Thomson, whose company, Thomvest, is a majority shareholder of Liminal BioSciences.

Completion of the proposed transaction is subject to finalization of due diligence investigations by the parties, the negotiation and execution of definitive transaction agreements and other customary closing conditions including certain funding requirements. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.

About COVAXIN™ (BBV152)
COVAXIN™ (BBV152) is an investigational vaccine candidate product in the U.S, currently under review by the U.S. Food and Drug Administration for emergency use authorization (EUA) for children 2-18 years of age. Additionally, an Investigational New Drug application (IND) is being discussed with the agency to support an immunobridging study among U.S. participants. It was developed by Bharat Biotech in collaboration with the Indian Council of Medical Research (ICMR) – National Institute of Virology (NIV). COVAXIN™ (BBV152) is a highly purified and inactivated vaccine that is manufactured using a vero cell manufacturing platform.

With more than 200 million doses having been administered to adults and children outside the U.S., COVAXIN™ (BBV152) is currently authorized under emergency use in more than 20 countries, and emergency use authorization is in process in more than 60 other countries. The World Health Organization (WHO) recently added COVAXIN™ (BBV152) to its list of vaccines authorized for emergency use. And, as many as 110 countries have agreed to mutual recognition.

About Ocugen, Inc.
Ocugen, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with one drug – “one to many” and our novel biologic product candidate aims to offer better therapy to patients with underserved diseases such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy. We are co-developing Bharat Biotech’s COVAXIN™ vaccine candidate for COVID-19 in the U.S. and Canadian markets. For more information, please visit www.ocugen.com.

About Vaccigen Ltd.
Vaccigen Ltd. is the Canadian affiliate of Ocugen, Inc. We are working every day to make a difference in the lives of Canadians, starting with the commercialization of a COVID-19 vaccine. In the future, we will work to bring innovation against blindness derived from the assets within Ocugen’s gene therapy platform. Our goal is to be here for the health of all Canadians during this public health crisis and for the future. Learn more at www.vaccigen.ca.

About Liminal BioSciences Inc.
Liminal BioSciences is a biopharmaceutical company focused on the discovery and development of novel, small molecule drug candidates for the treatment of patients suffering from fibrotic or inflammatory diseases that have a high unmet medical need.

Liminal BioSciences has active business operations in Canada and the United Kingdom.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such forward-looking statements include information about our non-binding letter of intent with Liminal BioSciences (Liminal) to acquire Liminal’s manufacturing site in Belleville, Ontario, including the anticipated terms of the potential acquisition, which are non-binding and subject to change, the potential manufacturing capability of such site, the potential regional economic opportunities that could result from our plans to further develop and refurbish the site following its acquisition, and the value of such site to our product pipeline, stockholders and the Canadian population, and are subject to risks and uncertainties that could cause actual results to differ materially from those express or implied by such statements, including, among other things, the risk that we may not be able to successfully negotiate and execute a definitive purchase agreement for the acquisition on acceptable terms, if at all, and the ultimate terms and timing for closing of the transactions contemplated thereby; the risk that we will not be able to successfully close the acquisition; risks associated with the planned development and refurbishing of the manufacturing site, including that the expected costs for such development will be greater than currently contemplated or that the planned development will take longer than expected or fail to be completed on a timely basis, if at all; and the risk that we will not be able to scale production for such site to adequately support manufacturing of our product candidates or the other products that are currently or may in the future be manufactured at such site. In addition, our business is subject to numerous other risks and uncertainties, including, among other things, the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates; the risk that Health Canada does not accept our new drug submission (NDS) for COVAXIN™ or that we may not be able to adequately respond to or resolve the deficiencies noted by Health Canada with respect to our NDS, for which we are preparing responses; the risk that we may not resolve the current clinical hold on COVAXIN™ in the near term or at all, or that the U.S. Food and Drug Administration (FDA) could make other decisions that adversely impact our ability to advance the development of COVAXIN™ in the United States, and the implications that this clinical hold may have for our request for Emergency Use Authorization (EUA) of COVAXIN for pediatric use, including the timing and scope of any such authorization; risks associated with preliminary and interim data, including the possibility of unfavorable new clinical trial data and further analyses of existing clinical trial data; the risk that the results of in-vitro studies will not be duplicated in human clinical trials; the risk that clinical trial data are subject to differing interpretations and assessments, including during the peer review/publication process, in the scientific community generally, and by regulatory authorities; whether and when data from Bharat Biotech’s clinical trials will be published in scientific journal publications and, if so, when and with what modifications; whether the data and results from the preclinical and clinical studies of COVAXIN™, which have been conducted by Bharat Biotech in India, will be accepted by the FDA or otherwise sufficient to support our EUA submission or planned BLA submission, assuming the clinical hold is lifted; the size, scope, timing and outcome of any additional trials or studies that we may be required to conduct to support an EUA or BLA; any additional chemistry, manufacturing, and controls information that we may be required to submit to the FDA; whether and when a BLA for COVAXIN™ will be submitted to or approved by the FDA; whether developments with respect to the COVID-19 pandemic will affect the regulatory pathway available for vaccines in the United States, Canada or other jurisdictions; market demand for COVAXIN™ in the United States or Canada; decisions by the FDA or Health Canada impacting labeling, manufacturing processes, safety and/or other matters that could affect the availability or commercial potential of COVAXIN™ in the United States or Canada, including development of products or therapies by other companies. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, after the date of this press release.

Ocugen Contact:
Ken Inchausti
Head, Investor Relations & Communications
IR@Ocugen.com

Release – Capstone Green Energy Continues to Expand Its EaaS Business

Posted on January 27, 2022 by Admin

Capstone Green Energy Continues to Expand Its EaaS Business With New 10-Year 1.2 MW Parts & Labor Service Contract in Eastern Europe

Research, News, and Market Data on Capstone Green Energy

VAN NUYS, Calif.–(BUSINESS WIRE)– Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) (“Capstone,” the “Company,” “we” or “us”), a global leader in carbon reduction and on-site resilient green energy as a service (EaaS) solutions, announced today that Servelect (www.servelect.ro/en/), Capstone’s exclusive distributor for Romania, entered into a new 10-year Parts and Labor Factory Protection Plan (FPP) service contract for two Capstone Signature Series C600S natural gas-fueled systems installed in Eastern Europe.

“Capstone continues to focus on expanding our EaaS business, including our innovative FPP service program, as extended service agreements generate higher margin rates than traditional product sales,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “Our FPP service business in conjunction with our long-term rental fleet are the cornerstones of our EaaS business, which we believe to be key to achieving our profitability goals,” added Mr. Jamison.

The two Capstone Signature Series C600S units, generating 1.2 megawatts (MWs) of power, are owned and operated by Cemacon, Romania’s largest ceramic block producer, which was founded in 1969 in Zalau, Romania, and has since expanded to lead that market in Transylvania. Cemacon has a proud history of innovation and a belief in environmentally sound processes, having developed an eco-friendly ceramic production line in which the Capstone C600S units play a key role in the drying process. With a capacity of 2.25 MW thermal, the high-efficiency cogeneration plant commissioned in August 2021 operates the two C600S units on natural gas with an optimized total net efficiency of 95%. Cemacon’s Reccea plant is located five hours from Bucharest and operates in grid connect mode supporting the plant’s power requirements and exporting approximately 400 kilowatts (kW) of excess power to the local grid.

“For this industry, the installation signals a progressive approach with the significantly reduced emissions, improved environmental footprint, and high net efficiency,” stated Tracy Chidbachian, Capstone’s Director of Customer Service. “We are meeting the customer’s operational needs for a secure and stable drying process and doing so in an environmentally responsible manner while providing the customer significant financial savings,” concluded Ms. Chidbachian.

The Capstone Green Energy parts and labor FPP is designed to provide ten years of comprehensive maintenance, giving the end-use customer financial peace of mind and protecting the installation from potentially costly unscheduled maintenance.

About Capstone Green Energy

Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ: CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three fiscal years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on Twitter, LinkedIn, Instagram, Facebook, and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains, and the Company’s presentation and responses to questions at the Water Tower Research Virtual Fireside Chat Series will contain, forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding achievement of profitability goals, expectations for green initiatives, execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

Capstone Green Energy
Investor and investment media inquiries:
818-407-3628
ir@CGRNenergy.com

Source: Capstone Green Energy Corporation

Release – Avivagen Announces CEO Update to Shareholders

Posted on January 26, 2022 by Admin

Avivagen Announces CEO Update to Shareholders

Research, News, and Market Data on Avivagen

Ottawa, ON /Business Wire/ January 26, 2022 /– Avivagen Inc. (TSXV:VIV, OTCQB:VIVXF) (“Avivagen” or the “Company”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhances feed intake and supports immune function, thereby supporting general health and performance, announces a CEO update to shareholders.

To our shareholders,

2021 was a year of challenge for all industries, with the global feed production industry no exception. With higher input costs that could not be passed along to consumers, ongoing COVID-19 pandemic concerns and worldwide supply chain challenges, many producers experienced financial difficulties and retrenchment, impacting every supplier they do business with – including Avivagen[i].

However, it appears that the environment is now becoming more favourable. After a period of delays numerous important Avivagen customers tell us they expect to ramp up activities in 2022. In turn, purchases of OxC-beta^TMLivestock are anticipated to scale up, reaching volumes more in line with previous expectations. We’re seeing continued progress with trials and regulatory processes, and discussions with prospective customers, potential distribution partners and stakeholders worldwide are advancing.

We feel we are in the early days of resuming our growth plans and we are excited for what is on the horizon. Given developments in the broader market and within our Company, we feel now is a suitable time to provide and update on the recent progress that has been made and our outlook on the months and year ahead.

New leadership for a new stage of growth
As a part of our ongoing commitment to building the best possible team for the future of our business, we recently announced the appointment of Jamie Nickerson to the role of President, effective January 25, 2022. Jamie has been a core member of the Avivagen team for 15 years, most recently becoming the main contact with many of our most important and lucrative relationships and developing new applications for our OxC-beta^TM product as Vice President of Business Development and Innovation. Few understand the Avivagen science, value proposition, market and business opportunity as completely as Jamie, making him the perfect individual to lead the next phase of growth for the Company.

This year we established important new relationships through our Mexico-based partner, Meyenberg International Group that will help spearhead expansion efforts in Central and South America. We also added Mr. Lesley Nernberg as a technical sales and marketing consultant with the goal of accelerating the adoption of OxC-beta^TM Livestock in multiple Asian markets.

Strategic partnerships and regulatory milestones
This fall we announced a transformative supply agreement with AB Vista to expand marketing and sale of OxC-beta^TM Livestock in high value markets such the United States, Brazil and Thailand. Trials with several AB Vista customers are already underway and we expect sales from this partnership to start and grow steadily throughout 2022. We also continue to seek similar strategic partnerships in additional major global feed markets.

We have continued our efforts to expand regulatory approval for use of our products and are expecting approvals for livestock use in both Vietnam and China over the coming months. In anticipation of these approvals, we have initiated discussions with both prospective customers and distributors in both markets. Our previously announced distribution partner for Philippines, Inphilco, has successfully registered their own branded OxC-beta-based product and are beginning trials with several of its local customers. We are actively working towards new regulatory approvals in five key regions in South America and expect other regulatory developments for both companion animals (Vivamune) and humans.

Growing recognition from the scientific community
A recent analysis published in the Lancet, an international medical journal, reports that antibiotic resistance kills more than one million people each year– proving the critical need for safe and suitable alternatives to antibiotics[ii]. Concurrently, there has a marked increase in both the recognition and acceptance of our technology, due in part to a number of papers appearing in top-tier scientific publications – including several reaffirming the safety and utility of using OxC-beta^TM Livestock as an alternative to antibiotics in broilers, sows and cows. These include:

Kang, M., Oh, J.Y., Cha, S.Y., Kim, W.I., Cho, H.S., Jang, H.K., 2018. Efficacy of polymers from spontaneous carotenoid oxidation in reducing necrotic enteritis in broilers. Poultry Sci. 97, 3058-3062 doi: 10.3382/ps/pey180.
Chen, J., Chen, J., Zhang, Y., Lv, Y., Qiao, H., Tian, M., Cheng, L., Chen, F., Zhang, S., Guan, W., 2020. Effects of maternal supplementation with fully oxidised ?-carotene on the reproductive performance and immune response of sows, as well as the growth performance of nursing piglets. Brit. J. Nutr., 1-9 doi: 10.1017/S0007114520002652.
Riley, W.W., Nickerson, J.G., Burton, G.W., 2021. Effect of Oxidized ?-Carotene on the Growth and Feed Efficiency of Broilers. Poultry Sci., 101088 doi: https://doi.org/10.1016/j.psj.2021.101088.
Burton, G.W., Mogg, T.J., Riley, W.W., Nickerson, J.G., 2021. Beta-Carotene oxidation products – Function and safety. Food Chem. Toxicol. 152, 112207 doi: 10.1016/j.fct.2021.112207.
Mogg, T.J., Burton, G.W., 2021. The ?-carotene–oxygen copolymer: its relationship to apocarotenoids and ?-carotene function. Can. J. Chem. 99, 751-762 doi: 10.1139/cjc-2021-0006.
McDougall, S., 2021. Evaluation of fully oxidised ?-carotene as a feed ingredient to reduce bacterial infection and somatic cell counts in pasture-fed cows with subclinical mastitis. N.Z. Vet. J., 1-9 doi: 10.1080/00480169.2021.1924091.

Positive customer developments signal opportunity in 2022 and beyond
A tough economic environment led many feed producers in markets worldwide to scale back in 2021, a reality that directly impacted our key relationships in Mexico in particular. However, customers such as Industrias Melder and Tranformadora appear to be entering 2022 on much stronger footing, meaning significant commercial agreements previously secured could resume shortly. Additionally, successful trials have been completed with large and well-known dairy and poultry producers in Mexico which we expect should result in new orders placed within the coming weeks. We have also secured a number of smaller but important agreements in Asia that will diversify our customer base and product applications over the coming years. In the companion animal space, our Vivamune dog chews have been successfully introduced in Taiwan and our OxC-beta product is being used as a cornerstone ingredient in a premium dog food brand.

A new look for Avivagen
Our recently relaunched website could be seen as a marker for the next phase of Avivagen as a company, as we build off of the foundational success achieved to date and enter a period of new leadership and growth over the coming months and years. We have seen early success in numerous key markets, and with growing recognition from the scientific community and regulatory authorities we believe Avivagen is poised to grow that number. We have established important and lucrative relationships in many of the largest feed-producing markets in the world and secured expert support to help us develop new relationships that will enable growth in our livestock, companion animal and human nutrition businesses.

After two years of global uncertainty there are brighter and healthier days on the horizon.

None of this would be possible without the partnership and support of our shareholders. I thank you for your continued confidence in Avivagen, its leadership and its vision as we move into the next phase of growth.

Sincerely,

Kym Anthony
Chief Executive Officer

About Avivagen
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about ?-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Philippines, Mexico, Taiwan, New Zealand, Thailand, Brazil, Australia, and Malaysia.

Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven thatproduct performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions.

Statements set out in this news release relating to Avivagen’s expectation that customers will ramp up activities in 2022, expected growth in demand and orders for Avivagen’s products, the timing, outcomes and potential benefits of trials and regulatory processes underway, the potential for regulatory approval in additional jurisdictions, the expectations that current partner and customer discussions will result in agreements and orders that are beneficial to Avivagen, the expected resumption of orders and shipments to customers in Mexico, Avivagen’s ability to diversify its customer base in the future and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as growth promoters are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, the industry and Avivagen’s customers may not rebound as quickly as expected, COVID or another event outside their control could impact customer and partner buying decisions, demand may not increase or stay at the same levels for Avivagen products, trials may not be completed or the results of trials may not result in benefits to Avivagen, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics as growth promoters in livestock feeds due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information:
Avivagen Inc.
Drew Basek
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6 Phone: 416-540-0733
E-mail: d.basek@avivagen.com

Kym Anthony
Chief Executive Officer
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6 Head Office Phone: 613-949-8164
Website: www.avivagen.com
Copyright © 2022 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.

[i]The National Provisioner https://www.provisioneronline.com/articles/111370-2021-feed-ingredient-prices-among-the-highest-in-the-last-decade

[ii] The Financial Times, January, 2022 Antibiotic resistance kills over 1m people a year says study _ Financial Times.pdf

Indonesia Energy Corp (INDO) – Indo closes on a $5 million private placement to support drilling

Posted on January 26, 2022 by Admin

Wednesday, January 26, 2022

Indonesia Energy Corp (INDO)
Indo closes on a $5 million private placement to support drilling

Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

Indonesia Energy announced the closing of the initial $5.0 million tranche of a total anticipated $7.0 million private placement. The sale of a senior convertible note with a 6.0% discount and an 18-month maturity includes a five year warrant to purchase shares at an exercise price of $6.00 per share. Proceeds to the company were $4.7 million after expenses.

Indo’s cash position has slipped due to expenditures and production delays. Indo’s cash position, which was as high as $16 million after its initial public offering, had fallen to $6 million at the end of June (latest reported financial numbers) due to normal operating costs and the drilling of two wells in the Kruh Block. The company had hoped to use cash flow from new wells to fund additional …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Eagle Bulk Shipping (EGLE) – Well Positioned For 2022

Posted on January 26, 2022 by Admin

Wednesday, January 26, 2022

Eagle Bulk Shipping (EGLE)
Well Positioned For 2022

Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

Favorable Dry Bulk Market Outlook Intact, Albeit with Volatility. While overall TCE rates have dropped recently due to weather disruptions and seasonality and the forward cover is low, the outlook remains favorable. Volatility is likely to continue, and seasonality should be expected. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply.

Well Positioned Entering 2022. Several milestones were achieved over the past five years and the moves enhanced the competitive position moving into this year. The fleet renewal program improved the fleet profile, the commercial strategy has consistently outperformed the market, the capital structure has been simplified with a global refinancing in 4Q2021, access to equity capital markets has …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Sierra Metals (SMTS)(SMT:CA) – Darkest Before The Dawn

Posted on January 26, 2022 by Admin

Wednesday, January 26, 2022

Sierra Metals (SMTS)(SMT:CA)
Darkest Before The Dawn

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

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

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

Fourth quarter and full year 2021 production. During the fourth quarter, Sierra Metals produced 6.1 million pounds of copper, 6.0 million pounds of lead, 14.9 million pounds of zinc, 1.9 thousand ounces of gold, and 805 thousand ounces of silver. Compared with the prior year period, fourth quarter production of copper, lead, zinc, gold, and silver declined 42.9%, 21.2%, 31.0%, 44.6%, and 12.7%, respectively, and declined 26.5%, 23.3%, 22.0%, 17.6%, and 0.2% sequentially. The quarter reflected operational challenges, and while Cusi and Yauricocha are approaching normalized operations, infill drilling and mine development is needed at Bolivar to normalize operations by the end of the second quarter. Compared to 2020, full year silver production increased 1.8%, while copper, lead, zinc, and gold production declined 28.3%, 6.5%, 3.2%, and 30.5%, respectively.

Updating estimates. We are lowering our 2021 EPS and EBITDA estimates to $0.06 and $89.7 million from $0.13 and $105.7 million, respectively, to reflect lower production. We also lowered our 2022 EPS and EBITDA estimates to $0.22 and $121.8 million from $0.36 and $163.2 million, respectively, which reflects a steady improvement in operating performance that is back-end loaded. Our preliminary 2023 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Capstone Green Energy (CGRN) – New contract keeps Capstone on track to meet rental goal Example of more to come

Posted on January 26, 2022 by Admin

Wednesday, January 26, 2022

Capstone Green Energy (CGRN)
New contract keeps Capstone on track to meet rental goal. Example of more to come?

Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

Capstone signed a 4 MW two-year, EAAS contract with a new customer in the cryptocurrency space. Recall that Capstone is moving toward increased Energy As A Service (EAAS) sales and is seeking to increase equipment rentals to 21 megawatts by this spring from a September level of 13.1 MW. Today’s announcement places the company on track to meet its goal.

The new customer is in a fast growing space that plays off of Capstone’s experience with exploration and production companies. The customer is located on an oil and gas well and will use waste gas emissions to perform large volume, blockchain and cryptocurrency mining. Capstone has a history of serving exploration and production customers. We believe the use of small generators using gas waste to …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

Release – Aurania Provides Update On Operations

Posted on January 26, 2022 by Admin

Aurania Provides Update On Operations

Research, News, and Market Data on Aurania Resources

Toronto, Ontario, January 26, 2022 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) provides an update on its operations and announces a temporary suspension of most activities at its Lost Cities-Cutucu project in southeastern Ecuador as a result of recent COVID-19 guidelines.

There are currently 9 active COVID cases among our personnel and our General Manager is in quarantine because a family member is infected. Ecuador is beginning to experience an increase in the number of cases nationwide, and on January 16^th a “Red Alert” was issued by the Ecuador Government for 193 of 195 Cantons. We are required under Ecuadorian law to follow the guidelines imposed by the Ministry of Health and the Ministry of Labour and the protocols that we were required to submit to the Government last year. Because the Omicron Variant appears to be much more transmissible than any other COVID variant to date, we are taking the decision to suspend the majority of our field activities more or less over the next month in order to protect our employees and the local communities in which we operate. Where possible we may continue field work with a reduced contingent in those remote areas where there is no interaction with local communities.

Laboratory analyses have been received from hole TSN1-009 at Tsenken, designed to sample the contact of a “salt wall” lying along a prominent fault structure. Such sites have historically yielded abundant copper from projects in Peru and so the drill hole was meant to test an analogous geological setting. The hole collapsed due to caving in salt at a downhole depth of 369 metres. It was projected to intersect the target area at 400-500 metres. Low anomalous copper and silver were returned from a 9-metre interval downhole at 321 to 331 metres. Within this intersection breccia clasts containing chalcocite, a copper sulphide, were noted.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken. The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure: Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS. For the over-limit samples, those that had a grade of greater than 1% copper, zinc and lead, and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits. In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The geological information contained in this news release has been reviewed and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir

VP Investor Relations

Aurania Resources Ltd.

(416) 367-3200

carolyn.muir@aurania.com

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

Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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Capstone Green Energy Continues to Expand Its EaaS Business With New 10-Year 1.2 MW Parts & Labor Service Contract in Eastern Europe

Avivagen Announces CEO Update to Shareholders

Indonesia Energy Corp (INDO) Indo closes on a $5 million private placement to support drilling

Eagle Bulk Shipping (EGLE)Well Positioned For 2022

Sierra Metals (SMTS)(SMT:CA)Darkest Before The Dawn

Capstone Green Energy (CGRN)New contract keeps Capstone on track to meet rental goal. Example of more to come?

Aurania Provides Update On Operations

Comtech (CMTL)
Rejects Acacia Offer

Avivagen Inc. (VIVXF)(VIV:CA)
Names A President, Reports Fiscal 2021 Results

Aurania Resources (AUIAF)(ARU:CA)
Temporary Suspension of Activities in Ecuador; Key Executive Departs

Indonesia Energy Corp (INDO)
Indo closes on a $5 million private placement to support drilling

Eagle Bulk Shipping (EGLE)
Well Positioned For 2022

Sierra Metals (SMTS)(SMT:CA)
Darkest Before The Dawn

Capstone Green Energy (CGRN)
New contract keeps Capstone on track to meet rental goal. Example of more to come?