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How PPI Impacts CPI Numbers

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Consumer Inflation and the Impact of Producer Prices

 

Inflation, its impact on interest rates, the cost of employees, corporate profits, and global competitiveness, is creating more anxiety than it has in decades. Since 2008, economists were more likely to be concerned and debate how to stave off deflation. That fear seems like a distant memory since $6 trillion has been added to the economy over the past year. March’s change in consumer inflation is released this week. The release will give the market a renewed glimpse of how much price appreciation consumers have sustained from shortages and trillions of more dollars chasing the same or fewer goods and services.

One factor that may have already had a big impact on March consumer inflation are the quickly rising producer prices. The Bureau of Labor Statistics reports Producer Price Index (PPI) monthly on the previous month’s data for a few days before the Consumer Price Index (CPI) is released for the same month (PPI was released 4/9. CPI will be reported on 4/13).

PPI’s Warning

Producer prices, as reported Friday, April 9, increased 1%. This is a significant jump. In fact, it is double the rate economists expected and up from 0.5% in February. This sharp rise of costs to produce and the reported success in passing the higher wholesale costs on to consumers and small business owners indicates it will work its way into final CPI numbers in short order.

Comparing the increase to March of last year, the PPI jumped by 4.2%, this was the sharpest year-over-year increase since 2011, according to the BLS.

Producer Price Index, Month Over Month Change

 

Next month’s release of both PPI and CPI are more than likely to show dramatic YOY increases. Much of this can be discounted as inflation during April last year plunged by 1.1% in response to new lockdown orders. This low inflation month is the basis for one-year measurement. The name for this distortion is the “base effect,” and investors should be aware of it before they are startled by what looks to be rampant inflation without the context of what happened last April distorting the YOY measure.

We can see from the BLS chart below that PPI hit a high in January 2020 with an index value of 119.2. In February and March last year, it dropped 0.5% from the prior month, and in April, it plunged 1.1% to an index value of 116.7, partly driven by the collapse in fuel prices. It has been rising ever since.

 

Source: U.S. Bureau of Labor Statistics

 

Looking Forward

What might April prices look like? The most recent index value is 123.1, which is 5.5% higher than April 2020. If the PPI rises 0.5% this month (April) from 123.1, it adds up to a 6% year-over-year increase. This would be the highest since November 2009, when the U.S. economy was awakening from the financial crisis. After April’s data, the issue with base measurement will have already been taken into account, leaving May’s numbers (reported in June) as a fresh start without basis problems.

 

 

Take-Away

Inflation pressures are giving way to higher prices in the manufacturing and services pipeline. The producer price index is showing significant increases even when netting out the base effect. Companies are reporting they are successfully passing these costs on to the consumer.  This means higher CPI down the road, which will lead to greater challenges for the Fed to fulfill its commitment to low rates through next year.

 

Suggested Reading on Channelchek:

Winners and Losers in the American Job Plan

IRA Investments and Small-Cap Stocks



Are Inflation and Interest Rates Expected to Rise

$1.9 Trillion in Terms We Can Better Relate to

 

Sources:

 

https://www.bls.gov/news.release/pdf/cpi.pdf

https://www.bls.gov/ppi/

https://www.bls.gov/news.release/ppi.nr0.htm

https://www.markiteconomics.com/Public/Home/PressRelease/6123ab3169954de186a8b7c543eb6035

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Release – Aurania Resources Ltd. (AUIAF)(ARU:CA) – Reports High-Grade Silver-Zinc from Outcrop at Tiria-Shimpia

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Aurania Reports High-Grade Silver-Zinc from Outcrop at Tiria-Shimpia

 

Toronto, Ontario, April 12, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports on its first channel rock-chip sampling from the Tiria-Shimpia silver-zinc zone – a target that is over 15 kilometres (“km”) in length, in the central part of the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.    

Seven mineralized layers have been identified, one of which is 50 metres (“m”) thick.  So far, the layers have been traced laterally, through intermittent exposures in thick jungle, for between 500m and 1,100m.  As can be appreciated, with mineralization of this magnitude it will be some time before the full surface extent is truly known and sampled, however the Company is already making plans to diamond drill several key exposures in the near term.   

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “Shareholders will be aware that we have been working on Tiria-Shimpia for some time now.  Earliest indications were that we could be dealing with a simple vein system of limited mineral volume.  We are now very much aware that we are dealing with a different beast: we have traced it along trend for over 15 kilometres, and we’re starting to demonstrate continuity between one exposure and the next, Tiria-Shimpia is shaping up to be Aurania’s first discovery.  While this target is evolving, we are running our concurrent drill programs at Tsenken N1 and Kuri-Yawi, both of which give us exposure to making additional discoveries.  The Tiria-Shimpia target now extends across almost the entire width of our concession block as illustrated in Figure 1.  Our regional exploration teams are finding further extensions to the mineralized system, and our expectation is that it will grow further.”  

Additional soil sampling has expanded the area in which silver and zinc have been found in the Tiria-Shimpia target area by approximately 120% since soil results were last reported in the press release dated February 8, 2021.  

 

Figure 1. Plan view of Tiria-Shimpia target area showing its central location in the Lost Cities – Cutucu concession area.  Footprint of silver in soil shown.

 

Concurrent rock-chip sampling has confirmed that the target contains high-grade mineralization, and the next logical step is to demonstrate continuity of the mineralization by channel sampling outcrops where the bedrock is exposed at surface on the jungle floor.  Channel sampling, in which a chisel is used to extract chips of rock from a 10 centimetre (4 inch) wide track over the mineralized rock, provides a representative sample of grade over the width of the observed mineralization.

Mineralization has so far been found in seven layers of limestone and dolomite that are interlayered with sandstone.  Highlights, shown in Figure 2, are:

•    Unit P: mineralization has been observed over a true thickness of approximately 50m and extends at least 1km along trend.  Intensely mineralized layers within the dolomite were channel sampled, returning grades of 2m at 12g/t silver and 3.9% zinc and 0.8m of 26g/t silver and 6.4% zinc.
•    Unit H: has been sampled in two channel samples spaced 500m apart along its length of 1km, that returned grades of 4m at 21g/t silver and 9.3% zinc, and 1m at 8g/t silver and 4.8% zinc. 
•    Unit J: has been traced 900m along trend with the one channel sample taken, returning a grade of 48g/t silver and 39.6% zinc.
•    Unit N: has been traced 1.1km along trend and a grab sample from outcrop had a grade of 199g/t silver with 22% zinc and 13% lead (see press release dated September 25, 2020).

 

Figure 2.  a. Plan view of silver distribution in soil at Tiria-Shimpia.  This shows where the mineralized layers or sheets come to surface along the edge of the mountains.  b. Provides detail of part of the system. The brown lines show where the mineralized layers come to surface.  These sheets extend westwards (to the left) under the mountain.  The tables show the silver and zinc grades of samples, the location of which is shown in b.  The samples for which a sample length is given are channel samples.  

 

Scout Drilling
•    Tiria-Shimpia: Some drill sites have already been selected and others will be based on the distribution of grade in the mineralized sheets as defined by the channel sampling, which will be done as systematically as the scattered outcrop allows.   While this detailed sampling is being done, other exploration teams are sampling soil to identify further areas of metal enrichment and others are exploring adjacent areas for possible further extensions to the Tiria-Shimpia mineralized system.  
•    Tsenken N1: The first drill hole at Tsenken N1 has been completed to a depth of 722 meters and assay results are awaited.
•    Kuri-Yawi: Drilling at Kuri-Yawi is underway with a second rig that can drill to approximately 1,200 metres.

Geological Details of the Area Sampled at Tiria-Shimpia
Mineralization is massive sphalerite and galena, occurring with strontian barite and pyrite/marcasite in dolomitic strata.  The exposures have been leached and weathered, which is identified by radiating masses of cerussite (lead carbonate) on the surface of outcrops.  Therefore, assay results from initial rock-chip sampling may understate underlying metal content.  Several MobileMT lines were run over the zones during the airborne geophysical survey and anomalies appear to be correlated with surface exposures of mineralized layers.

The channel sample results reported in this press release are in the north-central part of the Tiria-Shimpia target area (Figure 2a).  Units F and H, the uppermost mineralized layers, lie at the contact between sandstone and dolomite, and units J, K, L and N are mineralized dolomite layers within sandstone.  

 

Figure 3.  Field teams measuring the true width of mineralized layers exposed in the bank of a stream.

 

Figure 4.  Massive sphalerite (fine-grained, brown) and galena (gray metallic) from the core of one of the high-grade layers of mineralization at Tiria-Shimpia.

 

Figure 5.  Left:  Galena with radiating masses of cerussite.  Right:  Clots of galena within barite-celestite.

 

Sample Analysis & Quality Assurance / Quality Control (“QAQC”) 
Laboratories: The soil 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% 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 verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and 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.

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.

Release – Endeavor Silver (EXK) – Closes Sale of El Cubo Mine to VanGold Mining

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Endeavour Silver Closes Sale of El Cubo Mine to VanGold Mining

 

VANCOUVER, British Columbia, April 12, 2021 (GLOBE NEWSWIRE) —
Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) (“Endeavour”) announces that it has now closed the sale of the El Cubo Mine in Guanajuato, Mexico to VanGold Mining Corp. (“VanGold”) for $15 million in cash and share payments plus up to $3 million in future contingent payments (all dollar amounts in US dollars unless otherwise noted) (the “Transaction”).

VanGold paid $15,000,000 to Endeavour as follows:

  • $7.5 million cash on closing.
  • $5.0 million (C$6,399,317.40) in VanGold common shares (“VanGold Shares”) on closing, priced at $0.2344 (C$0.30) per VanGold Share for a total of 21,331,058 VanGold Shares (“Consideration
    Shares    ”) representing approximately 10.9% of the issued and outstanding VanGold Shares.
  • $2.5 million promissory note due 12 months from closing.

VanGold has also agreed to pay Endeavour up to an additional $3,000,000 in contingent payments based on the following:

  • $1.0 million upon VanGold producing 3,000,000 silver equivalent ounces from the El Cubo mill, derived from either the El Cubo or El Pinguico project, $500,000 of which may, in VanGold’s discretion, be paid in VanGold Shares.
  • $1.0 million if the price of gold closes at or above $2,000 per ounce for 20 consecutive trading days within two years after the closing date of the Transaction.
  • A further $1.0 million if the price of gold closes at or above $2,200 per ounce for 20 consecutive trading days within three years after the closing date of the Transaction.

Bradford Cooke, Endeavour CEO and Director, commented, “We are pleased to close this transaction and I congratulate VanGold for helping make it a win-win deal for both companies. They are in the best position to create more value out of the El Cubo assets given their emerging El Pinguico project located very close to El Cubo, and we now become the largest shareholder of VanGold. I look forward to supporting VanGold in their efforts to become the next junior silver-gold producer in Mexico!”

On the closing of the Transaction, Endeavour acquired 21,331,058 VanGold Shares. Based on 194,931,838 VanGold Shares outstanding as of the closing date of the Transaction, the Consideration Shares represent 10.9% of the outstanding VanGold Shares on an undiluted basis. Prior to the closing date of the Transaction, Endeavour did not own any VanGold Shares or other securities of VanGold.   Endeavour has agreed to abstain from voting its shares of VanGold, other than as recommended by VanGold’s management, for a period of 2 years, and to a 12-month restriction on the resale of any VanGold shares acquired in this Transaction.

Endeavour acquired its interest in the Consideration Shares for long term investment purposes and will continue to monitor the business, prospects, financial condition and potential capital requirements of VanGold. Endeavour may acquire additional securities of VanGold including on the open market or through private acquisitions or sell securities of VanGold including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

About Endeavour Silver – Endeavour Silver Corp. is a mid-tier precious metals mining company that owns and operates three high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision and exploring its portfolio of exploration and development projects in Mexico and Chile to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Endeavour will file an early warning report in connection with the Transaction on SEDAR at www.sedar.com. A copy of the report may be obtained by contacting Galina Meleger at:  

Contact Information
Galina Meleger, Director Investor Relations
Toll free: (877) 685-9775
Tel: (604) 640-4804
Email: [email protected]
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Cautionary Note Regarding Forward-Looking Statements

This
news release contains “forward-looking statements” within the meaning of the
United States private securities litigation reform act of 1995 and
“forward-looking information” within the meaning of applicable Canadian
securities legislation. Such forward-looking statements and information herein
include but are not limited to statements regarding future prospects of the El
Cubo and El Pinguico projects and future acquisitions or dispositions of
VanGold Shares. The Company does not intend to and does not assume any obligation
to update such forward-looking statements or information, other than as
required by applicable law. 

Forward-looking
statements or information involve known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity, production
levels, performance or achievements to be materially different from those
expressed or implied by such statements. Such factors include but are not
limited to the ultimate impact of the COVID 19 pandemic on operations and
results, changes in production and costs guidance, national and local
governments, legislation, taxation, controls, regulations and political or
economic developments in Canada and Mexico; financial risks due to precious
metals prices, operating or technical difficulties in mineral exploration,
development and mining activities; risks and hazards of mineral exploration, development
and mining; the speculative nature of mineral exploration and development and
risks in obtaining necessary licenses and permits,

Forward-looking
statements are based on assumptions management believes to be reasonable,
including but not limited to: the continued exploration and mining operations,
no material adverse change in the market price of commodities, mining
operations will operate and the mining products will be completed in accordance
with management’s expectations and achieve their stated production outcomes,
and such other assumptions and factors as set out herein. Although the Company
has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements or information,
there may be other factors that cause results to be materially different from
those anticipated, described, estimated, assessed or intended. There can be no
assurance that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially from those
anticipated in such statements or information. Accordingly, readers should not
place undue reliance on forward-looking statements or information.  

Source: Endeavour Silver Corporation

Release – Genprex (GNPX) – Collaborators Report Positive Preclinical Data for REQORSA Immunogene Therapy

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Genprex Collaborators Report Positive Preclinical Data for REQORSA™ Immunogene Therapy in Non-Small Cell Lung Cancer at the 2021 AACR Annual Meeting

 

REQORSA Enhances Efficacy of Chemo-Immune Combination Therapy in KRAS-LKB1 Mutant NSCLC in Humanized Mice  

REQORSA Overcomes Resistance to Targeted Therapy Osimertinib 

AUSTIN, Texas — (April 12, 2021) — Genprex, Inc. (“Genprex” or the “Company”) (NASDAQ: GNPX), a clinical-stage gene therapy company focused on developing life-changing therapies for patients with cancer and diabetes, today announced that its collaborators presented positive preclinical data for the combination of TUSC2 immunogene therapy (REQORSA™) in combination with chemotherapy and immunotherapies for the treatment of non-small cell lung cancer (NSCLC). Collaborators also presented positive preclinical data for the use of REQORSA in combination with targeted therapies for the treatment of NSCLC. These data were presented in two presentations at the 2021 American Association of Cancer Research (AACR) annual meeting. The TUSC2 gene is a tumor suppressor gene and is the active agent in REQORSA.

“We are pleased to have these positive data that provide further support for the therapeutic potential of REQORSA in combination with immunotherapies and targeted therapies in NSCLC presented before an audience of the world’s leading cancer researchers. These data are particularly encouraging as we look to initiate our upcoming combination Acclaim-1 and Acclaim-2 clinical trials of REQORSA in NSCLC,” said Rodney Varner, President and Chief Executive Officer of Genprex. “We know that many patients inevitably develop resistance to immune checkpoint blockade therapy or EGFR-TKI therapy. These data show that REQORSA in combination with immunotherapies and targeted therapies may provide enhanced efficacy in NSCLC that has become resistant to these regimens, offering hope to a large patient population who currently has limited treatment options.”

Featured Genprex-supported posters presented at AACR 21 include: 

Oral Presentation:

Session: MS.IM02.02 – Overcoming Resistance in the Tumor Microenvironment: Novel Immunomodulatory Agents

Title: “TUSC2 immunogene therapy enhances efficacy of chemo-immune combination therapy and induces robust antitumor immunity in KRAS-LKB1 mutant NSCLC in humanized mice”

Poster Number/Channel: #76/Channel 03

Presentation Date/Time: April 10, 2021 from 2:50-3:00 p.m. ET

Presenters: Ismail M. Meraz, Mourad Majidi, RuPing Shao, Feng Meng, Min Jin Ha, Elizabeth Shpall, Jack A. Roth. University of Texas MD Anderson Cancer Center, Houston, TX

Poster Presentation:

Session: PO.ET03.01 – Drug Resistance in Molecular Targeted Therapies

Title: “Overcoming resistance to osimertinib by TUSC2 gene therapy in EGFR mutant NSCLC”

Poster Number: #1105

Presentation Date/Time: April 10, 2021 from 8:30 a.m. – 11:59 p.m. ET

Presenters: Ismail M. Meraz, Mourad Majidi, RuPing Shao, Lihui Gao, Meng Feng, Huiqin Chen, Min Jin Ha, Jack A Roth

The first presentation, entitled “TUSC2 immunogene therapy enhances efficacy of chemo-immune combination therapy and induces robust antitumor immunity in KRAS-LKB1 mutant NSCLC in humanized mice,” showed that the triple combination of chemotherapy, immunotherapy (immune checkpoint blockade) and REQORSA demonstrated strong antitumor efficacy and induced robust antitumor immunity in KRAS-LKB1 (KL)-mutant NSCLC in clinically relevant humanized mice models.

In this study, researchers evaluated the antitumor immune response of a chemo-immunotherapy combination with REQORSA on highly metastatic KL-mutant human lung cancer in humanized mice. Humanized mice were first treated with REQORSA, immunotherapy nivolumab (Opdivo®), or the combination. The results showed synergistic antitumor activity with the combination. Next, humanized mice were treated with REQORSA, immunotherapy pembrolizumab (Keytruda®), or the combination. When REQORSA was added to the chemotherapy and immune checkpoint blockade combination, metastases regression was significantly greater than either REQORSA, REQORSA and pembrolizumab, or chemotherapy and pembrolizumab treatments.

“KRAS is a frequent genomic driver in lung adenocarcinoma,”, said Michael Redman, Executive Vice President and Chief Operating Officer of Genprex. “LKB1 (also known as STK11) is a distinct subgroup of KRAS-mutants and is the most prevalent genomic driver of resistance to PD-1 blockade in KRAS-mutant lung cancer.”   

The second poster, entitled “Overcoming resistance to osimertinib by TUSC2 gene therapy in EGFR-mutant NSCLC,” showed that REQORSA in combination with targeted therapy osimertinib (Tagrisso®) demonstrated synergistic antitumor efficacy in EGFR mutant osimertinib resistant NSCLC tumors in H1975-OsiR isogenic tumors. Researchers also found that the upregulation of PDK1 was associated with osimertinib resistance.

In this study, researchers developed an osimertinib resistant H1975-OsiR isogenic cell line through continuous exposure to osimertinib. Xenograft tumors from both H1975-parental and H1975-OsiR cells were developed in NSG mice and were treated with osimertinib. Synergistic antitumor activity of REQORSA and osimertinib was found in H1975-OsiR tumors. The combinations showed a robust antitumor effect compared with single agent treatment groups. Reverse phase protein array (RPPA) data showed that PDK1 was significantly upregulated in the REQORSA and osimertinib group when compared with either control, osimertinib alone or REQORSA alone treated H1975-OsiR tumors, indicating that PDK1 may be associated with osimertinib resistance. No PDK1 inhibitor effect was found in the REQORSA treated group, implicating the specific role of PDK1 in osimertinib resistance.

These AACR presentations and posters have been made available on Genprex’ website at www.genprex.com.

TUSC2 immunogene therapy enhances efficacy of chemo-immune combination therapy and induces robust antitumor immunity in KRAS-LKB1 mutant NSCLC in humanized mice Overcoming resistance to osimertinib by TUSC2 gene therapy in EGFR mutant NSCLC

About Genprex, Inc.

Genprex, Inc. is a clinical-stage gene therapy company focused on developing life-changing therapies for patients with cancer and diabetes. Genprex’s technologies are designed to administer disease-fighting genes to provide new therapies for large patient populations with cancer and diabetes who currently have limited treatment options. Genprex works with world-class institutions and collaborators to develop drug candidates to further its pipeline of gene therapies in order to provide novel treatment approaches. The Company’s lead product candidate, REQORSA™ (quaratusugene ozeplasmid), is being evaluated as a treatment for non-small cell lung cancer (NSCLC). REQORSA has a multimodal mechanism of action that has been shown to interrupt cell signaling pathways that cause replication and proliferation of cancer cells; re-establish pathways for apoptosis, or programmed cell death, in cancer cells; and modulate the immune response against cancer cells. REQORSA has also been shown to block mechanisms that create drug resistance. In January 2020, the U.S. Food and Drug Administration granted Fast Track Designation for REQORSA for NSCLC in combination therapy with osimertinib (AstraZeneca’s Tagrisso®) for patients with EGFR mutations whose tumors progressed after treatment with osimertinib alone.

The Company is preparing to initiate its Acclaim-1 and Acclaim-2 clinical trials for the treatment of NSCLC. Acclaim-1 is an open-label, multi-center Phase 1/2 clinical trial that combines REQORSA with AstraZeneca’s Tagrisso in patients with late-stage NSCLC with mutated epidermal growth factor receptors (EGFRs), whose disease progressed after treatment with Tagrisso. The Acclaim-2 clinical trial will combine REQORSA with Merck & Co’s Keytruda for NSCLC patients who are low expressors (1% to 49%) of the protein programmed death-ligand 1 (PD-L1).For more information, please visit the Company’s web site at www.genprex.com or follow Genprex on Twitter, Facebook and LinkedIn.

Cautionary Language Concerning Forward-Looking Statements 

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance and are subject to significant risks and uncertainty. These forward-looking statements should, therefore, be considered in light of various important factors, including those set forth in Genprex’s reports that it files from time to time with the Securities and Exchange Commission and which you should review, including those statements under “Item 1A – Risk Factors” in Genprex’s Annual Report on Form 10-K.

Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding: the timing and success of Genprex’s clinical trials and regulatory approvals; the effect of Genprex’s product candidates, alone and in combination with other therapies, on cancer and diabetes;  Genprex’s future growth and financial status; Genprex’s commercial and strategic partnerships including the scale up of the manufacture of its product candidates; and Genprex’s intellectual property and licenses. 

These forward-looking statements should not be relied upon as predictions of future events and Genprex cannot assure you that the events or circumstances discussed or reflected in these statements will be achieved or will occur. If such forward-looking statements prove to be inaccurate, the inaccuracy may be material. You should not regard these statements as a representation or warranty by Genprex or any other person that Genprex will achieve its objectives and plans in any specified timeframe, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Genprex disclaims any obligation to publicly update or release any revisions to these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Genprex, Inc.
(877) 774-GNPX (4679)

Investor Relations
GNPX Investor Relations
(877) 774-GNPX (4679) ext. #2
[email protected]

Media Contact
Genprex Media Relations
(877) 774-GNPX (4679) ext. #3
[email protected]

 

Release – Capstone Turbine (CPST) – Reports Certain Preliminary Unaudited 4th Quarter Results

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Capstone Turbine Reports Certain Preliminary Unaudited 4th Quarter Results

 

Revenue Up 53% Year-Over-Year 1.5:1 Product Book-to-Bill Ratio & Total Cash Grows to $49.5 Million

VAN NUYS, CA / ACCESSWIRE / April 12, 2021 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), the world’s leading manufacturer of clean technology microturbine energy systems, announced today that its unaudited preliminary financial results for the fourth quarter ended March 31, 2021, indicate preliminary revenues of $17.8 million, up 53% from $11.6 million in the year-ago quarter, which marked the beginning of the global COVID-19 pandemic.

On a preliminary basis, Capstone’s gross product book-to-bill ratio increased sequentially to 1.5:1, up from 0.9:1 in the prior quarter, primarily as a result of the general economic recovery as well as through the combined efforts of the Capstone Solutions Direct Sales organization. Preliminary new gross product bookings in the fourth quarter ended March 31, 2021 were $12.7 million, an increase of 21% from $10.5 million in the third quarter ended December 31, 2020, and an increase of 30% from $9.8 million in the second quarter ended September 30, 2020.

“We are seeing positive developments in our top-line revenue growth as we execute against our strategic Revenue Growth Strategy, which is a six-element initiative designed to drive increased top-line annual revenue,” said Darren Jamison, President and Chief Executive Officer of Capstone Turbine. “I expect the new Biden administration will create even more positive momentum toward green initiatives, generally and for companies like Capstone specifically. Biden’s pending infrastructure bill will most likely contain a green building and sustainability element. Along with expected government initiatives, sustainability is also a driving force behind today’s consumer and investor decision-making process, which in turn is a motivating factor for corporations to reevaluate their responsibility to reduce carbon footprints and push Environmental, Social and Governance (ESG) initiatives,” added Mr. Jamison.

Total cash on hand increased to $49.5 million at March 31, 2021, up from $32.0 million at December 31, 2020, and $15.1 million at March 31, 2020. Cash improved during the quarter primarily due to the issuance of approximately 1.2 million shares of the Company’s Common Stock under its at-the-market offering, generating net proceeds of approximately $14.5 million, along with the continued efforts of tightened working capital management. In addition, during the quarter ended March 31, 2021, the Company received a legal settlement in the amount of $5.0 million arising out of claims pursued in confidential arbitration with a former strategic parts supplier. Legal expenses incurred as a result of this matter totaled approximately $0.3 million for the three months ended March 31, 2021, and $0.7 million for the fiscal year ended March 31, 2021.

“The settlement proceeds will provide Capstone with additional resources to continue to improve customer system reliability and the performance of some of our fielded C200 and C1000 products affected by the sub-optimal parts from the former supplier,” said Eric Hencken, Capstone’s Chief Financial Officer. “With our improved liquidity this quarter, we have much greater flexibility to execute on our growth strategy, in addition to increasing customer confidence in our Company’s ability to become a long-term energy partner,” concluded Mr. Hencken.

Capstone further announced that it is establishing a reserve, expected to be in the amount of approximately $5.0 million, to replace high-risk parts in fielded units affected by sub-optimal parts initially provided by the former strategic parts supplier. The reserve will create a non-recurring impact on warranty expense during the fourth quarter ending March 31, 2021, and will be offset by the non-recurring impact of the $5.0 million settlement to be recorded as other income. Both items, as well as the related legal expenses, are considered non-recurring and will be excluded from Capstone’s non-GAAP presentation of adjusted EBITDA in connection with Capstone’s release of full operating results for the fourth quarter and full-year ended March 31, 2021.

Caution Regarding Preliminary Unaudited Results

The financial data as of, and for the quarter ended, March 31, 2021, presented in this release is preliminary and is based upon the most current information available to management. The Company’s actual results and financial condition may differ from this preliminary financial data due to the completion of year-end closing procedures, audit-related and other adjustments and other developments. Furthermore, the Company’s independent registered public accounting firm has not audited, reviewed or performed other procedures with respect to such preliminary financial data, and an audit, review or other procedures could result in changes to the preliminary data presented. This preliminary financial data should not be viewed as a substitute for full financial statements prepared in accordance with GAAP and is not necessarily indicative of the results to be achieved for any future period.

About Capstone Turbine Corporation

Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world’s leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today’s multi-technology distributed power generation projects.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: [email protected]. To date, Capstone has shipped nearly 10,000 units to 83 countries and in FY20, saved customers an estimated $219 million in annual energy costs and 368,000 tons of carbon.

For more information about the Company, please visit www.capstoneturbine.com. Follow Capstone Turbine on Twitter, LinkedIn, Instagram, Facebook and YouTube.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies of the Company. 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” and “Capstone Microturbine” are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.

CONTACT:
Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
[email protected]

SOURCE: Capstone Turbine Corporation

The GEO Group, Inc. (GEO) – Contract Aging: A Deeper Dive

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Monday, April 12, 2021

The GEO Group, Inc. (GEO)
Contract Aging: A Deeper Dive

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

    A Deeper Dive. We took a deeper dive into GEO’s ability to repay its debt. We believe the Company is positioned to handle its debt under nearly any circumstance. Although the executive orders have increased uncertainty around GEO’s business, we continue to believe, for a number of reasons, that the USMS issues will ultimately be resolved in a manner that the Company can live with. While the loss of the BoP business will hurt, it is not fatal, in our view.

    A Stable Business.  In spite of the year-in and year-out changes to its business, including the loss of customers in the past, GEO generates a remarkably stable level of cash flows. We believe the long-term nature of many of its contracts help isolate the Company from a massive run-off of business in a short period of time …



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. 

Orion Group Holdings (ORN) – Tampa Yard Sale Moving Ahead

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Monday, April 12, 2021

Orion Group Holdings (ORN)
Tampa Yard Sale Moving Ahead

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

    Tampa Yard Sale Moving Forward. The Tampa City Council approved the first reading of the zoning change from heavy industrial to mixed use on the West Tyson property in Tampa that is under contract to be sold. The buyer, a developer, had asked for a continuance at the February 11th meeting after one council member expressed concerns about the density of the proposed development plan. The original development plan was scaled back and now includes fewer units (495 versus 649), lower density (26.7 units/acre versus 34.9 units/acre), fewer multi-family buildings (three versus five), and more restaurant/retail space (14k square feet versus 5k square feet). While there were lingering safety concerns about the proximity of the development site to a chlorine plant, the City Council approved the modified plan, with four affirmative votes, two negative votes and one abstentation due to a potential conflict of interest.

    Sale Likely to Close in mid-2Q2021.  The next step to finalize the zoning change is a second reading and adoption, which should happen at the April 22nd City Council meeting. Once that step is completed, the sale should close. Combined with the pending sale of the Port Lavaca property, asset sales could generate more than $25 million and capital allocation should shift from deleveraging to growth …



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

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

CoreCivic, Inc. (CXW) – Contract Aging: A Deeper Dive

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Monday, April 12, 2021

CoreCivic, Inc. (CXW)
Contract Aging: A Deeper Dive

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

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

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

    A Deeper Dive. We took a deeper dive into CoreCivic’s ability to repay its debt. We believe the Company is well positioned to handle its debt under nearly any circumstance. Although the executive orders have increased uncertainty around CoreCivic’s business, we continue to believe, for a number of reasons, that the USMS issues will ultimately be resolved in a manner that the Company can live with.

    A Stable Business.  In spite of the year-in and year-out changes to its business, including the loss of major customers in the past, CoreCivic generates a remarkably stable level of cash flows. We believe the long-term nature of many of its contracts help isolate the Company from a massive run-off of business in a short period of time …



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. 

Aurania Resources (AUIAF)(ARU:CA) – Drilling Underway at Kuri-Yawi Target; Recent Financings Enhance Financial Flexibility

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Monday, April 12, 2021

Aurania Resources (AUIAF)(ARU:CA)
Drilling Underway at Kuri-Yawi Target; Recent Financings Enhance Financial Flexibility

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.

    Fully funded for remainder of 2021. Aurania Resources recently completed two financings, including a brokered equity issuance of 2,507,000 common shares for gross proceeds of C$7,771,700 and a private placement of 403,750 common shares for gross proceeds of C$1,250,000. Following the financings, the company had 46,843,388 shares outstanding by our estimate. Based on our forecasted expenditures, the company is fully funded for the remainder of the year.

    Drilling Underway at Kuri-Yawi epithermal target.  Diamond drilling is underway at the Kuri-Yawi target and is testing an epithermal target and a deeper porphyry target down to potentially 1,000 meters. Recall that Aurania’s Mobile MT geophysical survey clearly defined a feature thought to be the sulphide-bearing core of a porphyry at the Yawi target. Epithermal veins were encountered about 100 …



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. 

Understanding Family Offices

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Understanding More About Family Offices

 

The impact of institutional investors and other large money managers should be understood by all that are involved in the market. The reason, as with everything else, power and impact rotate among those involved. Investors need to understand their surroundings. We’ve recently seen this as a few hedge funds that were thought of as powerful may have been outplayed by the influence that social media has brought to self-directed investors. Every investor, it doesn’t matter their size, should be aware, in a broad sense, who the other players are, their goals, and the tools they are most inclined to use to reach those investment objectives.

Among investors, there are large semi-institutions that don’t often get much attention from the news as they manage private and unregulated assets for individuals who are often themselves quite private. Since there is an absence of dollars spent on advertising, mainstream magazines find no reason to write about them, and financial TV derives no benefit either. I’m referring to family offices that, although all different, fit this description. However, they could potentially be impactful on price movement as money managed by family offices is often quite a bit larger than the average Etrade or AllofUs account size. For instance, a $20 million family office may consist of just a couple of people, while the family office for the Rockefellers has a team of at least 17 full-time employees. Assets managed by FOs are typically more than just tradeable equities; they could include fine art, collectibles, real estate, trusts, and a portfolio of private businesses. The investment style can be anything from rolling U.S. Treasury maturities to complex hedge funds.

Recently the term “family office” made headlines as the firm Archegos Capital Management suffered losses large enough to impact markets and earnings of some of their large banking relationships.  Archegos is a family office that manages the wealth of investor Bill Hwang.  Their problems and market impact are an uncommon set of circumstances but obviously within the realm of possibilities.  After all, there are some very large pools of assets, even among the comparatively more modest-sized family offices. As the influence of the big FOs, 121 of the largest single-family offices represent an estimated net worth of $142.4bn, according to a report last year by UBS Securities. 

Both the well-off, the not-so-well-off, and everyone in between can and do have money issues. When the bigger players do, it can impact more than just themselves. Although occurrences like Archegos have rarely happened, it’s important for those unfamiliar with the various forms of family office money management to understand their existence and purpose just as much as they should have a grasp on hedge funds, meme traders, overseas buyers, and even retirement planners.

Roles and Types of Family Offices

With the need to recognize the roles of family offices in the investment “sandbox” with everyone else, I asked an experienced recruiter for family offices who knows all the roles and different levels and positions in greater depth than most, to explain the types of family offices. Amy Laiker, Tiger Recruitment took time out of her busy day to provide us with a very comprehensive answer.

According to Ms. Laiker:  “The role of a family office is to manage
the lifestyle, private wealth and assets of a high-net-worth family or
individual, providing expert, bespoke management of their personal lives and
financial affairs. This will include the family or individual’s private
investments, management of their personal acquisitions/ assets (property,
yachts, planes, cars, jewelry, art), and in some cases, it may also incorporate
some form of philanthropy – such as the management of a charitable trust.”

Amy further explained two distinctly different types of FOs:

“A single-family office looks after the life and
wealth of a single family, sometimes a multi-generational family. It is
typically run by a small team consisting of a chief of staff, a chief financial
officer, and a private PA. A larger family office may also employ several
accountants and specialists, such as in tax or charitable trusts, depending on
the family’s specific requirements.”

“A multi-family office manages the private wealth of a
number of families who pay to use the services of a team of professionals. This
allows them to tap into the expertise they need while benefiting from economies
of scale.”

 

 

Take-Away

For self-directed individual investors, the existence of family offices usually has little direct impact on your account or even market movements. Some of the offices have the where-with-all to enter large riskier-type positions. Not unlike the rest of us, these don’t always work out. A few weeks back, we heard there was an investor unloading positions. At the time, we didn’t know if it was a hedge fund, large corporation, small country, or family office. Most small investors didn’t think “family office.” We can all now make sure FO’s are on our list of possibilities. They are not regulated and very private, so when something doesn’t go as planned, no one usually knows about it, and when things go spectacularly well, family offices control the least braggadocio dollars in the market.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

IRA Investments and Small-Cap Stocks

The Ultimate Guide to Stock Market News



Do Robinhood Investors Make Money?

Five Reasons Investors Increasingly Use ESG Standards

 

Special Thanks to Amy Laiker, Tiger
Recruitment, for taking time to share her expertise

 

Sources:

https://www.wsj.com/articles/credit-suisse-ignored-warnings-before-archegos-and-greensill-imploded-11617875627?mod=hp_lead_pos1

https://www.fnlondon.com/articles/archegos-is-not-the-only-family-office-to-take-big-risks-like-hedge-funds-20210401

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Release – Driven By Stem (STMH) – Stem Provides Shareholder Update and Announces Preliminary Gross Revenue

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Stem Provides Shareholder Update and Announces Preliminary Gross Revenue of US$12.88 Million for the Second Quarter of 2021, an Increase of 456% Year-Over-Year and Quarterly Gross Margin of Approximately US$5.23 Million

 

BOCA RATON, Fla., April 8, 2021 /PRNewswire/ — Stem Holdings, Inc. (OTCQX: STMH CSE:STEM) (the “Company” or “Stem“), the first multi-state, integrated cultivation and omnichannel technology cannabis company, is providing a business update including select preliminary financial results for the quarter ending March 31, 2021, the first full quarter of combined operations since the acquisition of Driven Deliveries, Inc. (“Driven Deliveries“) in December 2020, as disclosed in the Company’s press release dated December 30, 2020.

Adam Berk, Chief Executive Officer of Stem, commented, “Stem is driving synergistic results as the Company successfully integrated its most recent acquisitions of Driven Deliveries and the Foothill Health and Wellness dispensary in Sacramento, with record sales, accretive margins, and reduced SG&A. Driven Deliveries services 92% of California’s population – the largest cannabis market in the world1 – and is expected to drive expansion of Stem’s brands and products in California as well as in targeted expansion markets, including Oregon. Our plan for expansion into new markets is supported by our strong, lean infrastructure and execution capability. Following the acquisition of Driven Deliveries, we have integrated our accounting and finance and legal teams, and engaged Fyllo™ Compliance Cloud technology enterprise-wide to support swift expansion.”

The Company plans to report its financial results for the quarter ended March 31, 2021 on or about May 15, 2021. The Company is projecting quarterly gross revenue of approximately US$12.88 million (an improvement of approximately 456% as compared to the quarter ending March 31, 2020) and quarterly gross margin of approximately US$5.23 million.2

For the quarter ended March 31, 2021, the Company realized an increase in total units sold, number of transactions, and average order size as compared to the quarter ended March 31, 2020:

Dispensaries

vs. 2020

E-Commerce (Budee™)

vs. 2020

Total Dispensaries – 185

+32.1%

Total Units Sold – 161,700

+81.5%

Total Units Sold – 257,100

+45.6%

Transactions – 75,700

+97.0%

Transactions – 59,500

+16.7%

Average Order Size – US$67.00

+17.5%

Average Order Size – US$58.28

+33.3%

The Company expects to increase its canopy in Oregon during April 2021 by 10,000 square feet and it anticipates incremental gross revenues of US$8.0 million and 50% gross margin over the next 12 months as a result of such expansion. The Company also expects to increase its productivity through greater automation and CAPEX investment for concentrates in the Company’s new butane hash oil laboratory, as well as through other margin-accretive measures.

Recent Highlights:

  • On December 15, 2020, the Company filed an amended and restated preliminary prospectus with the securities commissions in each of the provinces of Canada (the “Canadian Securities Commissions“), other than Quebec, and subsequently filed a corresponding registration statement on Form S-1 (the “Registration Statement“) with the U.S. Securities and Exchange Commission (the “SEC“) in connection with its previously announced marketed public offering of units of the Company (the “Offering“), as more fully described in the Company’s press release dated December 15, 2020. Upon SEC approval of the Registration Statement, the Company intends to file a final prospectus with the Canadian Securities Commissions and close the Offering as soon as practicable thereafter.
  • In 2021, Budee welcomed over a dozen best-in-class brands to its e-commerce platform providing services accessible to approximately 92% of California’s population including: Platinum Vape from Red, White and Bloom Brands; Caliva Flower, Deli Prerolls, Run Uncle Prerolls, Yummi Karma and Rehab by Yummi, and Chill Chocolates from The Parent Co.; Select Cartridges from Curaleaf; Tommy Chong’s Cannabis; Dosist Pens, Tablets and Edibles; Kushy Punch Gummies; Loudpack Farms; and new Yerba Buena™ Flower. The Company expects revenue from the launch of the new Yerba Buena™ Flower to be approximately US$2.5 million with US$1.4 million in gross margin over the next 12 months.
  • Budee™ DaaS is being introduced in Oregon this month through the Company’s core dispensaries and is expected to be accretive to gross revenues by US$4.4 million and to gross margin by US$1.76 million over the next twelve months with a dozen new delivery drivers being added for an optimal customer delivery experience. The Company has leveraged its technology, building a customized Application Programming Interface (API) to drive efficiency and performance.
  • Cannavore™ Crafted Confections brand expanded with three new THC-infused edibles including Irish Cream Caramels just in time for St. Patrick’s Day.  This brand is now in two states and will expand to all of the markets where the Company operates. Cannavore features TJ’s Gardens’ on-trend, single-strain solventless extract now produced on-site in our new extraction laboratory in Eugene.
  • Cannavore™ is now launching its first no-calorie, keto-friendly, gluten-free and vegan THC-infused gummy edibles in three flavors, meeting demand for sugar-alternative infused candy throughout the market, and exclusively features Rx Sugar®, a new natural, zero-calorie, low-glycemic index sweetener. 
  • TJ’s Gardens™ introduced its first co-branded product with Yerba Buena™ late last year and has expanded distribution throughout the state of Oregon including its unique RSO with the highest THC potency available in the Oregon market.
  • TJ’s Gardens™ is launching its first Dabbables – made with both on-trend single-strain solventless extract, as well as concentrates made from custom BHO-extraction equipment for the highest-quality crumble.
  • TJ’s Gardens’™ R&D team continues to develop exciting new cultivars, most recently Papaya Cake and Papaya Punch Kap, which continue to attract new consumers looking for exciting cannabis experiences.
  • As Stem prepares for the upcoming 420 industry celebration, the Company has an integrated media and event campaign across all markets and digital platforms as it strengthens its customer and partner relationships at every level, building loyalty with our portfolio of quality products, and service from Farm-to-Home™.

Stem’s Four Strategic Pillars

The four pillars of Company strategy are as follows: Financial Discipline, Productivity, Customer-Centricity, and Brand Innovation and Disruption. 

  • Financial Discipline: The Company continues to focus on key performance indicators including its cash conversion cycle, and continued EBITDA growth from operations.
  • Productivity: The Company continues to reduce SG&A while strengthening its integrated operating team for efficiency, and yield improvement in its cultivation and processing activities.  Stem’s value engineering continues to enable it to improve product quality and gross margin with higher service levels than previously achieved. 
  • Customer Centricity: Stem’s new marketing campaigns are attracting new customers including social & digital media and its new SEO and loyalty programs are building purchase frequency with an improved customer experience, even as the Company continues to navigate COVID with the highest standards for safety.
  • Brand Innovation and Disruption: The Company continues to introduce disruptive, margin-accretive new products, leveraging its R&D capability with a strong distribution apparatus covering wholesale, retail and e-commerce. 

About Stem Holdings, Inc.

Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. Stem’s family of award-winning brands includes TJ’s Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™, a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).

For further information, please contact:

Media Contact: 
Mauria Betts 
STEM HOLDINGS, INC. 
[email protected]
971.319.0303

Forward-Looking Statements        

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations.  When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to: (i) the implementation of the Company’s business plan; (ii) the Company’s expected performance in the second quarter of 2021, including gross revenue and gross margin; (iii) the expansion of Stem’s brands and products into other markets; (iv) the expansion of existing canopy in the State of Oregon and the revenue therefrom; (v) expected improvements to productivity; (vi) the expected launch of Budee™ DaaS in the State of Oregon and the revenue therefrom; (vii) the expected launch of new brands and products by Stem and the revenue therefrom.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, insurance, intellectual property and reliable supply chains; and risks related to the Company and its business generally. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Investors are cautioned against attributing undue certainty to forward-looking statements.

Financial Outlook

This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the three months ended March 31, 2021 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward Looking Statements” above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material.The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward Looking Statements” above, it should not be relied on as necessarily indicative of future results.

1 Source: https://www.forbes.com/sites/irisdorbian/2019/08/15/california-is-worlds-biggest-legal-pot-market-says-new-report/?sh=5d940d6b4cd7

2 These preliminary and unaudited financial results are subject to customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Forward-Looking Statements” and “Financial Outlook”.

SOURCE Stem Holdings, Inc.

Issues Driving ESG Investing

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Five Reasons Investors Increasingly Use ESG Standards

 

ESG investing (Environmental, Social, Governance) is a sector of the stock market experiencing growth and attention, this has made it an extremely hot sector for investors. There’s an estimated $38 trillion invested in companies under ESG standards. That amount is expected to grow to $50 trillion invested under ESG ratings within the next five years.  What’s the mindset of investors looking at ESG factors before investing?

A survey of investment professionals conducted by New York Life Investments offers some insight into their ESG activity. The advisors and money managers surveyed offer their own thoughts which are influenced by the individual clients they meet with regularly. The survey uncovered some of the top drivers. The top five of these offer surprises in both the order of importance and values and factors deemed most important.

Top Five Drivers

The top ESG driver, according to the survey, is Risk Management. The responding expect paying attention to ESG factors reduces the potential of exposure to negligence, thereby decreasing the chance that a company adhering to ESG standards will become embroiled in lawsuits, workplace hazards, or headline news that will have a negative effect on their business. The thought here is heightened awareness of business practices can help mitigate the potential for problems.

The second-biggest driver of ESG investment growth is Investor
Demand. The financial professionals find clients are asking for a greater portion of their assets to be placed in individual stocks of companies adhering to ESG standards or funds that use ESG factors as one of their screening processes of stocks held.

 

 

The third-largest driver uncovered by the survey is Fiduciary
Duty. A fiduciary duty requires that the advisor has to act in the best interest of the client. They are serving the person and entrusted to put that person’s interests above all else. The idea that investment professionals involving their clients in ESG facilitates their fiduciary responsibility suggests that they believe ESG investments provide a higher risk/return profile than alternatives. This does not suggest that the accounts aren’t mitigating risk in other traditional ways such as diversification; it does portend that there’s a belief that doing what is best for the client, at this point in time, means paying attention to investments with ESG rankings. Should ESG investments begin to underperform or increase risk, the same fiduciary standard would apply.

ESG investments are associated with more ethical or “good” companies.  The survey found financial professionals find this is positive for their reputations with clients. Reputation ranked as the fourth highest driver of growth in managed ESG assets. Since good public relations and community standing has been found to help attract and retain more business, it stands to reason that an increasing number of investment managers would hold themselves out as onboard with ESG values.

Financial Returns, surprisingly, was found to rank fifth-biggest driver by the survey of financial professionals. Although the investments are expected to provide a better risk/return, and are believed to meet fiduciary obligations, the return on investment is not the highest-ranked key driver. The less measurable and more nuanced reasons for including ESG investing at an increased level in client portfolios are the four above this. The trend in popularity and growth for all of these top five reasons makes it understandable why the performance of ESG stocks has followed.

Take-Away

Risk management, investor demand, fiduciary duty, reputation, and financial returns are what we’re told is driving the popularity of ESG investing among those advising and managing the assets of others. As with any other trend that is shaping the future or driving the direction of investor dollars, it is good to understand the trend and decide whether you should be involved.

ESG investing is gaining momentum from investors of all types and styles. It also has more support from a regulatory standpoint than before and there is structure being created to better eliminate subjectivity. Channelchek will continue to update our readers on important changes that could provide opportunities.

 

Paul Hoffman

Managing Editor, Channelchek

Suggested Content on Channelchek:

Are Small-Cap Stocks Smart Investments

ESG Indicators and How Investors Use Them



Can Mining be Green and Sustainable?

Should Stock Market Investors Worry About Inflation?

 

Sources:

https://www.nytimes.com/2021/03/15/business/dealbook/sec-esg-priority.html

https://www.moneylion.com/learn/what-is-esg-investing/

https://myperfectfinancialadvisor.com/2021/04/06/whats-driving-esg-growth/

 

 

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Release – Aurania Resources Ltd. (AUIAF)(ARU:CA) – Reports Progress in Drilling Kuri-Yawi Target in Ecuador

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Aurania Reports Progress in Drilling Kuri-Yawi Target in Ecuador

 

Toronto, Ontario, April 9, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) reports that diamond drilling of the Kuri-Yawi target is well underway and proceeding as planned in the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.  The drill hole, inclined at 60° is still a significant distance away from the MobileMT target, however epithermal-type veining has been encountered in brecciated lava in the upper part of the hole.

The target is about 1.1 kilometres from siliceous sinter outcrop and 200 metres from geochemical anomalies of pathfinder elements (arsenic, antimony, selenium, thallium, mercury and silver) at surface.  Epithermal veins are reportedly outcropping in a riverbank below the current drill hole, and an underlying area of geophysical interest has been identified in MobileMT data as reported on in the Company’s press release dated January 29, 2021.  The target at depth is a strong conductor, which may be a zone of sulphide, capped by a strong resistor, which itself may be a zone of silica-flooding.  The epithermal-type veining encountered in brecciated basalt contains significant amounts of black “pyrobitumen”, which is a pseudo-mineral composed of carbon and derived from hydrocarbon (crude petroleum or related substances).  The pyrobitumen lies as colloform layers within the veins with pyrite/marcasite, quartz, sphalerite and carbonate also in bands.    

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “I consider this discovery of pyrobitumen to be potentially of high significance.  It is rarely documented in epithermal scenarios but perhaps significantly it occurs at gold deposits and occurrences such as McLaughlin in California, Esquel in Argentina, Waiotapu in North Island New Zealand, several Carlin Trend gold mines and in the Witwatersrand of South Africa.  The genetic relationship between gold deposits and hydrocarbon as a transport mechanism in gold systems may be tenuous, but hydrocarbon in geothermal fluids may have scavenged gold much as a carbon-in-pulp system is used in commercial gold recovery in many operating mines to strip gold from pregnant solution.  It has been a mystery for us that we have very high levels of pathfinder elements such as arsenic, antimony, selenium and thallium on surface in the area and yet samples are entirely devoid of gold.  The implication is that a very efficient natural mechanism is stripping hydrothermal fluids of their gold before they get anywhere near the paleosurface.”

 

Image 1: Photo of core from hole YW-008 of a banded vein in lava.  The vein has pyrite at its margin, lined with a thin layer of dark pyrobitumen, then carbonate, a thick band of pyrobitumen, with the core of the vein being filled with carbonate.

 

Image 2: Photo of core from hole YW-008 of a banded epithermal vein in lava.  The vein has pyrite at its margin, lined with carbonate, followed by dark pyrobitumen, a second layer of carbonate, then a second layer of pyrobitumen, carbonate and silica at the centre with more pyrite.

 

Image 3: Photo of banded cavity-filling in lava in core from hole YW-008.  The margin of the cavity is pyrite-rich and is lined by carbonate, then pyrobitumen, a second layer of carbonate, sphalerite in the carbonate, a second layer of pyrobitumen, with chalcedonic silica in the centre.

The Company plans to report on progress at its other key drill targets and exploration programs in subsequent press releases. 

MobileMT Geophysical Survey
The heliborne MobileMT survey is now completed and is being interpreted.  The MobileMT survey was undertaken by MPX Geophysics Ltd. in association with Expert Geophysics Limited, both of Toronto, Canada.

Qualified Person
The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and 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

[email protected]

 Dr. Richard Spencer

President

Aurania Resources Ltd.

(416) 367-3200

[email protected]

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.