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Release – Ayala Pharmaceuticals Announces $25 Million Strategic Financing

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Ayala Pharmaceuticals Announces $25 Million Strategic Financing

 

Funding Extends Cash Runway through Multiple Expected Value Drivers Into 2023

Funds Expected to Support the Recently Announced Accelerated Development of AL102 for the Treatment of Desmoid Tumors into Pivotal Phase 2/3 Study

REHOVOT, Israel and WILMINGTON, Del., Feb. 19, 2021 (GLOBE NEWSWIRE) — Ayala Pharmaceuticals, Inc. (NASDAQ: AYLA), a clinical-stage oncology company focused on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers, today announced that it has entered into a definitive agreement for the sale of its equity securities in a private placement to institutional investors, including Redmile Group and SIO Capital Management.

“We are very excited to have obtained additional funding enabling us to execute on our strategic priorities and support business growth from high quality US healthcare dedicated funds, which we also expect will extend our cash runway into 2023,” said Roni Mamluk, Ph.D., Chief Executive Officer of Ayala. “Ayala is well capitalized as we approach several key milestones planned for the remainder of 2021. We look forward to initiating our pivotal Phase 2/3 study of AL102 for the treatment of desmoid tumors in the first half of this year and presenting data from our Phase 2 study of AL101 for the treatment of recurrent/metastatic adenoid cystic carcinoma and triple negative breast cancer later this year.”

The agreement provides for the sale of an aggregate of 1,666,666 units at a price of $15 per unit. Each unit consists of one share of Ayala’s common stock and a warrant to purchase 0.35 of a share of common stock at an exercise price of $18.10 (the “Warrant”). One institutional investor has elected to receive pre-funded warrants to purchase common stock in lieu of its common stock. The Warrants are exercisable at any time during the period beginning on the closing date of the private placement and ending on the third anniversary of the closing. The gross proceeds from the sales of common stock are expected to be approximately $25 million, before deducting placement agent fees and offering expenses. The private placement is expected to close on or about February 23, 2021, subject to the satisfaction of customary closing conditions.

Jefferies LLC is acting as the exclusive placement agent for the private placement.

Based on Ayala’s current plans, it believes that its existing cash and cash equivalents and short-term restricted bank deposits, with the expected net proceeds from the private placement, will be sufficient to fund its operating expenses and capital expenditure requirements through multiple expected catalysts into 2023.

The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (Securities Act), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Ayala Pharmaceuticals

Ayala Pharmaceuticals, Inc. is a clinical-stage oncology company focused on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers. Ayala’s approach is focused on predicating, identifying and addressing tumorigenic drivers of cancer through a combination of its bioinformatics platform and next-generation sequencing to deliver targeted therapies to underserved patient populations. The company has two product candidates under development, AL101 and AL102, targeting the aberrant activation of the Notch pathway with gamma secretase inhibitors to treat a variety of tumors including Adenoid Cystic Carcinoma, Triple Negative Breast Cancer (TNBC), T-cell Acute Lymphoblastic Leukemia (T-ALL), Desmoid Tumors and Multiple Myeloma (MM) (in collaboration with Novartis). AL101 has received Fast Track Designation and Orphan Drug Designation from the U.S. FDA and is currently in a Phase 2 clinical trial for patients with ACC (ACCURACY) bearing Notch activating mutations and in a Phase 2 clinical trial for patients with TNBC (TENACITY) bearing Notch activating mutations and other gene rearrangements. AL102 is currently being advanced to a Phase 2/3 clinical trials for patients with desmoid tumors (RINGSIDE). For more information, visit www.ayalapharma.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements relating to the sufficiency of our cash, cash equivalents, restricted banks deposits and the net proceeds from the private placement to fund our operating expenses and capital expenditure requirements, the timing of clinical trials, the gross proceeds from the private placement, the closing of the private placement, and the use of proceeds from the private placement. These forward-looking statements are based on management’s current expectations. The words “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “estimate,” “believe,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the impact of the COVID-19 pandemic on our operations, including our preclinical studies and clinical trials, and the continuity of our business; we have incurred significant losses, are not currently profitable and may never become profitable; our need for additional funding; our expectations regarding our cash runway; our limited operating history and the prospects for our future viability; the lengthy, expensive, and uncertain process of clinical drug development, including potential delays in regulatory approval; our requirement to pay significant payments under product candidate licenses; the approach we are taking to discover and develop product candidates and whether it will lead to marketable products; the expense, time-consuming nature and uncertainty of clinical trials; enrollment and retention of patients; potential side effects of our product candidates; our ability to develop or to collaborate with others to develop appropriate diagnostic tests; protection of our proprietary technology and the confidentiality of our trade secrets; potential lawsuits for, or claims of, infringement of third-party intellectual property or challenges to the ownership of our intellectual property; risks associated with international operations; our ability to retain key personnel and to manage our growth; the potential volatility of our common stock; costs and resources of operating as a public company; unfavorable or no analyst research or reports; and securities class action litigation against us. These and other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended September 30, 2020 filed with the U.S. Securities and Exchange Commission (SEC) on November 16, 2020 and our other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. New risk factors and uncertainties may emerge from time to time, and it is not possible to predict all risk factors and uncertainties. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Although we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Contacts:
Investors:
Julie Seidel
Stern Investor Relations, Inc.
+1-212-362-1200
[email protected]

Ayala Pharmaceuticals:
+1-857-444-0553
[email protected]

Source: Ayala Pharmaceuticals

QuickChek – February 19, 2021

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Ayala Pharmaceuticals Announces $25 Million Strategic Financing

Ayala Pharmaceuticals, Inc. announced that it has entered into a definitive agreement for the sale of its equity securities in a private placement to institutional investors, including Redmile Group and SIO Capital Management.

Research, News & Market Data on Ayala Pharmaceuticals


Watch recent presentation from NobleCon17



EuroDry up 15% in early trading

EuroDry recently reported a better than expected adjusted 4Q2020 EBITDA. Noble Capital Markets Senior Analyst Poe Fratt increased his price target on EDRY on February 18.

Research, News & Market Data on EuroDry

Watch recent presentation from NobleCon17



Kratos Receives $55 Million C5ISR System Product Award

Kratos Defense & Security Solutions, a leading National Security Solutions provider, announced today that it has recently received an approximate $55 million, Single Award Indefinite Delivery, Indefinite Quantity (IDIQ) C5ISR product related contract from a National Security Customer.

Research, News & Market Data on Kratos Defense & Security Solutions



Citius Pharmaceuticals up 20% in early trading

Citius Pharmaceuticals (CTXR) recently announced a $76.5 million registered direct offering priced at-the-market. Closing is expected today.

News & Market Data on Citius Pharmaceuticals

Watch recent presentation from NobleCon17



Noble Capital Markets Initiates Research Coverge on Capstone Turbine

Noble Capital Markets Senior Research Analyst Michael Heim initiated research coverage on Capstone Turbine Corporation, a leading provider of on-site generation and thermal solutions today. Access the full report, with rating and price target here

Research, News & Market Data on Capstone Turbine

Watch recent presentation from NobleCon17

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Release – Kratos Defense & Security Solutions (KTOS) – Receives $55 Million C5ISR System Product Award

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Kratos Receives $55 Million C5ISR System Product Award from National Security Customer

 

SAN DIEGO, Feb. 19, 2021 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has recently received an approximate $55 million, Single Award Indefinite Delivery, Indefinite Quantity (IDIQ) C5ISR product related contract from a National Security Customer. The contract has a period of performance of approximately five years. Kratos’ C5ISR Business is a leading provider of Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR) related hardware, products, systems and solutions in support of unmanned drone, space and satellite communications, radar, missile defense, high power energy, strategic deterrence and other systems. Production and work under this new contract award will be performed primarily at a secure Kratos manufacturing facility. Due to customer related, competitive and other considerations, no additional information will be provided related to this contract award.

Tom Mills, President of Kratos C5ISR Division, said, “Our entire organization is focused on supporting our National Security Customer’s mission critical requirements, including in the unmanned aerial drone, strategic system and warfighter support areas, and we are proud to have received this recent contract award.”

Eric DeMarco, President and CEO of Kratos, said, “The entire Kratos Team continues to execute well, including as represented by this recent contract win. Over the past few years, we have been extremely focused on making the necessary investments to pursue and execute on large, new program opportunities and increasing our market share, and we believe that our recent strong book to bill ratio, total backlog and opportunity pipeline positions Kratos well for sustained organic growth.”

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information, go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements

Certain statements in this press release may constitute “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 the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 29, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687

[email protected]

Source: Kratos Defense & Security Solutions, Inc.

Cannabis Fundamentals Not Hype Important to Investors

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What Marijuana Investors Can Learn from the GameStop Trading Frenzy

 

Late January’s meteoric rise of GameStop’s shares made headlines, but what should be made of it? And what can we learn from it for marijuana?

What happened with GameStop is a short squeeze. The same thing happened to Tilray in 2018, Volkswagen in 2008 and supermarket operator Piggly Wiggly in the 1920s.

While it is possible to profitably invest by selling whatever is rising at ever-higher prices for nonfundamental reasons, it is a tough zero-sum game where, by definition, someone must eventually lose.

Even the winner eventually loses as well when its trading counterparts run out of money or, as happened at Piggly Wiggly, when someone more powerful changes the rules of the game for their own benefit.

 

This article was originally published by MJBizDaily authored by Mike Regan who is the founder of MJResearchCo.com. Mike and fellow analyst Colin Ferrian are known for investment analysis and valuation of the cannabis industry. Reach them at [email protected].

 

Over the long term, MJResearchCo believes the highest and most reliable source of returns comes from the core function of capital markets – matching those who have more ideas than capital with those who have excess capital for a mutually beneficial deployment of capital at higher returns.

The focus should be on the fundamentals because that is what will drive true value creation over time in what we think is the most interesting secular growth theme of the next decade: legal cannabis.

But this does not mean we ignore price moves. You always need situational awareness to know when the game changes.

If you’re playing basketball with your friends, and 11 strangers in helmets and shoulder pads line up at half court, you need to realize you’re not playing basketball anymore and adjust your strategy.

If you continue to shoot three-pointers, you’re going to get tackled.

 

 

Fundamentals versus market mechanics: weighing versus voting

In Berkshire Hathaway’s 
1993 investor letter, Warren Buffett quoted his mentor, Ben Graham:

“In the short run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long run, the market is a weighing machine.”

This is why opportunities to buy good companies at cheap prices exist. The “voting” of the market sells down something to below the value supported by fundamentals.

Over the short term, the value of a company is driven by whatever the last person wanted to pay for one share – and that can be for many reasons that have nothing to do with the fundamentals.

Unlike Buffett, we don’t bother judging the “intelligence” or “emotional stability” of the other side’s reasons.

For our purposes, we just want to understand why they’re offering those prices, even if we don’t agree with them.

Over the long term, the most solid support of a stock price is the fundamental profitability of the underlying business – the “weighing.”

If you can’t sell the stock (for example, because the public markets shut down or the company was private), the only return comes from the cash distributed to the equity owners in the form of dividends or share repurchases.

The best investors keep an eye on both the long-term fundamental “weighing” perspective and the near-term price moves from the “voting” perspective, and they buy good companies at low prices when the two diverge.

Companies weigh in with new capital issuance

Smart companies should have an idea of their own intrinsic worth and potential returns on existing and potential projects.

If the market bids up their stock, companies will issue new stock at high prices to fund those high-return projects.

In an ideal world, GameStop would sell as much new stock as it can after a tenfold increase in its market capitalization – which, ironically, would let them better fight their secular headwinds. But market dynamics probably prevent this.

Though not currently in a squeeze, cannabis stocks have traded up double digits (an average of 19% for U.S. operators and 55% on average for Canadian operators) after the Jan. 5 “blue wave” of Democrats’ wins in Georgia and Aphria’s better-than-expected earnings report.

With that investor enthusiasm, 18 companies have announced or issued $1.6 billion in new capital.

 

 

While some of this capital will be allocated into high-return new projects, some will be invested in disappointing projects – or even wasted on poor decisions and bad business models.

The key to determining that is the incremental return on invested capital (ROIC).

If the ROIC is high, the capital is used to expand high-return projects to the benefit of shareholders and the industry. Smart investors are happy about this.

Some projects could generate lower returns than expected, such as when excessive capital raises led to 
excessive cultivation capacity in Canada.

Ultimately, total supply was 2.5 times demand, which led to declines in cannabis prices that pressured margins and eventually reduced the returns on capital until new managers began to reduce excess capacity.

Or the capital might simply be spent on low-return luxuries for self-interested management at shareholders’ expense.

Determining which company is doing what kind of investments requires understanding the fundamentals of the business, the strategy, the uses of the new capital and the incentives and past behavior of management.

Over time, the only true value will be created by businesses providing desired services to paying repeat customers at good margins – not hoping to sell a never-profitable, low-ROIC business to a greater fool.

This article was originally published by MJBizDaily authored by Mike Regan who is the founder of MJResearchCo.com. Mike and fellow analyst Colin Ferrian are known for investment analysis and valuation of the cannabis industry. Reach them at [email protected].

 

 

Special Thanks to MJBizDaily
and MJResearchCo.com for allowing us to share this article with our readers.

 

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Capstone Turbine (CPST) – Coverage Initiated on Capstone Turbine

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Friday, February 19, 2021

Capstone Turbine (CPST)
Coverage Initiated on Capstone Turbine

Capstone Turbine 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 Turbine is a leading provider of on-site generation and thermal solutions. We believe that microturbines serve an important service for clients seeking to supplement or replace electric utility service. Growth has accelerated in recent quarters following a salesforce realignment. The long-term prospects for the company are also good. Increased environmental consciousness will push customers towards companies like Capstone that offer individualized client solutions that reduce emissions.

    Cost cutting should mean top-line growth goes right to the bottom line.  Capstone spent last year working to reduce costs with a goal of moving the company to positive cash flow generation. The company turned cash flow positive in the June quarter before reporting narrow losses in the September and December quarters, as it shifted its focus towards growing revenues. With a better-aligned cost …



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. 

Great Lakes Dredge & Dock (GLDD) – A Softer End to Year But Positive Outlook Intact

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Friday, February 19, 2021

Great Lakes Dredge & Dock (GLDD)
 A Softer End to Year, But Positive Outlook Intact

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

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

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

    4Q2020 results softer than expected due to higher costs and downtime/delays. Adjusted EBITDA of $29.4 million was below expectations of $33.5 million and EBITDA margin of 17.1% was below expectations of 17.7% due to higher S,G&A expenses, including severance and relocation costs, and higher maintenance expense caused by unexpected downtime. Good execution on most projects was offset by some weather delays in Florida.

    Fine tuning 2021 EBITDA estimate of $150.0 million which is down slightly from 2020 due to a 90 basis point drop in EBITDA margin to 19.7% mainly due to strong outperformance on several projects this year, especially in 1Q2020.  S,G&A expenses are expected to remain elevated in the 8.5% of revenue range due to costs to move to Texas. Admittedly, we are setting the bar at a reasonable level given …



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. 

Coeur Mining (CDE) 2020 Earnings Lower Than Expected Updating Estimates

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Friday, February 19, 2021

Coeur Mining (CDE)
2020 Earnings Lower Than Expected: Updating Estimates

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

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 2020 financial results. Coeur reported adjusted fourth quarter and full year 2020 EPS of $0.08 and $0.24, respectively, compared to our estimates of $0.13 and $0.30. Variance to our estimates were largely due to lower revenue and higher income and mining taxes. We were looking for higher silver production and a modestly higher average realized price for gold. Coeur reported full year adjusted EBITDA of $263.4 million and generated free cash flow of $49.4 million. On a GAAP basis, fourth quarter and full year 2020 EPS were $0.05 and $0.11, respectively. Pre-adjusted 2020 EBITDA were $214.8 million.

    Guidance for 2021.  Coeur expects to produce between 322,500 and 367,500 ounces of gold and between 9.7 million and 12.2 million pounds of silver. This compares to 355,678 ounces of gold and 9.7 million pounds of silver produced in 2020. We have trimmed our 2021 EPS estimate to $0.55 from $0.57 and initiated a 2022 EPS estimate of $0.60. We forecast 2021 and 2022 EBITDA of $320.1 million and $340.0 …



This 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. 

Tribune Publishing Company (TPCO) – Rating Changed To Underperform Dropping Coverage

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Thursday, February 18, 2021

Tribune Publishing Company (TPCO)
Rating Changed To Underperform; Dropping Coverage

Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

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

    Rating changed. The rating on the TPCO shares has been changed from Market Perform to Underperform due to the modest discount of 1.4% to the takeout price of $17.25 per share by the Alden Group. The rating change reflects the expectation that there will be no sweetened offer or competing bid for the company and investors should consider other investment options that have more upside potential. Furthermore, there is a risk, albeit slight, that the acquiring company may not be able to complete the acquisition. In that case, there would be significant downside risk.

    Dropping coverage.  Tribune will become a privately owned company. As such, we will be dropping coverage and will not maintain estimates going forward …



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. 

EuroDry Ltd. (EDRY) – Firmer Dry Bulk Market Drives Up Price Target

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Thursday, February 18, 2021

EuroDry Ltd. (EDRY)
Firmer Dry Bulk Market Drives Up Price Target

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

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

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

    Adjusted 4Q2020 EBITDA better than expected due to higher TCE rates. 4Q2020 EBITDA of $2.3 million (adjusted for dry dock expenses) was slightly higher than expected due to indexed TCE rates. Relative to our estimates, TCE revenue was $1.0 million higher, TCE rates were ~$1,551/day higher, and shipping days of 623 were 8 higher. Higher TCE revenue and lower opex more than offset higher G&A expenses and management fees.

    Moving 2021 EBITDA estimate to $16.5 million from $8.8 million to reflect indexed rate exposure and recent dry bulk market developments.  The prospects look good for the dry bulk market, and we are increasing our 2021 EBITDA estimate to $16.5 million based on TCE rates of $14.4k/day, which is well above our previous EBITDA estimate of $8.8 million based on TCE rates of $10.1k/day. Most of the fleet …



This 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. 

Energy Services of America (ESOA) – Increasing Price Target to Reflect Multiple Expansion

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Thursday, February 18, 2021

Energy Services of America (ESOA)
Increasing Price Target to Reflect Multiple Expansion

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.

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

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

    First fiscal 2021 quarter softer than expected due to seasonality and higher labor costs. 1Q2021 (Dec) was positive from a top line perspective, but profitability compressed due to actions taken to increase work force productivity. Total revenue of $32.0 million increased $6.2 million (~24%), and gross profit of $2.8 million increased $0.45 million (~21%). Adjusted EBITDA of $0.3 million dropped from $0.9 million and EBITDA margin of 1.0% was 230 basis points lower. S,G& A expenses, including added incentive comp, increased $1.0 to $3.6 million and dampened profitability.

    Moving FY2021 EBITDA to $9.1 million from $10.8 million to reflect quarterly results and a one-time 401(k) retirement fund adjustment this quarter.  The adjustment is driven by an issue triggered by a change in the third-party administrator of the 401(k) program. In order to remedy the error, the Board decided to make the participants whole using the February 9th closing price of $1.92/share and …



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. 

enCore Energy Corp. (ENCUF)(EU:CA) – Price Objective Raised With Plans Progressing. Are Uranium Prices Strengthening?

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Thursday, February 18, 2021

enCore Energy Corp. (ENCUF)(EU:CA)
Price Objective Raised With Plans Progressing. Are Uranium Prices Strengthening?

enCore Energy Corp together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming. The firm also owns or has access to North American and global uranium data including the Union Carbide, US Smelting and Refining, UV Industries, and Rancher’s Exploration databases in addition to a collection of geophysical data for the high-grade Northern Arizona Breccia Pipe District.

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

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

    We are raising our price objective to $1.00 from $0.85. The increase comes after the announcement of a $15 million (upsized) common stock/warrant private placement offering of the EU.v shares on February 16th. New ENCUF shares are not being offered. Shares include a half share warrant to purchase EU.v shares at $1.30 for 36 months. Proceeds will be used to start refurbishment of the Rosita Plant, execute a drilling program to update reserves, complete minor reformation work at Rosita and Vasquez, and support M&A activity. The announcement is a clear indication that the plans laid out by management last year are moving forward.

    There are initial signs that future uranium prices are starting to rise even as spot prices stagnate.  FactSet reported that September contract uranium prices rose 9.4% to a level of $32.65 per pound on Monday. The strength follows electric generation issues plaguing Texas and the Midwest due to cold weather. Many electric utilities have been holding off on uranium purchases for 2022 and 2023 due to …



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. 

E.W. Scripps Company (SSP) – A Triton Haul

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Thursday, February 18, 2021

E.W. Scripps Company (SSP)
A Triton Haul

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation’s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

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

    Sells Triton.  E.W. Scripps agreed to sell Triton, its digital audio and podcast measurement business, to iHeartMedia for $230 million, above the top end of our $195 million estimate. The company purchased Triton in 2018 for $150 million, plus a small tuck in acquisition of Omny Media. The transaction is expected to close.

    Transaction viewed favorably.  Triton was an orphan business in the audio space following E.W. Scripps’ sale of Stitcher, its podcast business, to SiriusXM for $265 million. The transaction price is estimated to be 5 times 2021 revenues and 13 times estimated 2021 cash flow, substantially higher than the 3.7 times revenues and 9 times EBITDA the company paid for it in 2018 …



This 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) – Initial Vicus Project Concessions Awarded in Peru

Posted on by Admin

Thursday, February 18, 2021

Aurania Resources (AUIAF)(ARU:CA)
Initial Vicus Project Concessions Awarded in Peru

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.

    Initial concessions awarded in Peru. Aurania Resources Ltd. announced that the first six mineral concessions have been granted for the 393 applications covering approximately 384,000 hectares in northern Peru which constitute the company’s Vicus project. It is thought that the Vicus project area may encompass portions of the mineral belt that extends from Ecuador into Peru. Management believes that the area has copper porphyry potential with a similar geological setting to its project in Ecuador.

    Drilling has started at the Tsenken N1 target.  Scout drilling commenced last week at the Tsenken N1 target which includes a copper-silver mineralized zone exposed at surface, and an underlying area of interest that was identified in the MobileMT geophysical survey. The mineralized zone is expected to be intersected at 75 meters to 100 meters below surface, while the MobileMT target is at a depth of …



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.