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Are You an Accredited Investor? Here’s What You Need to Know

Posted on by phoffman@channelchek.com

Demystifying What it Means to be an Accredited Investor

Have you looked into determing if you qualify as an accredited investor? Individuals and entities that are deemed “accredited” may be permitted to participate in certain types of investment offerings that would not otherwise be available to those that don’t meet the criteria. It allows access to a broader range of offerings, many of which are considered to allow for greater potential returns in exchange for higher potential downside.

What is an Accredited Investor?

An accredited investor includes those that meet certain financial criteria set by the Securities and Exchange Commission (SEC) in order to participate in certain types of private securities offerings. Accredited investors are deemed to have the financial sophistication and ability to bear the risks associated with these investments.

The SEC defines an accredited investor as someone who has a net worth of at least $1 million (excluding the value of their primary residence) or who has earned at least $200,000 in annual income ($300,000 for married couples) for the last two years and has a reasonable expectation of earning the same income in the current year. Entities such as trusts, partnerships, corporations, and certain types of retirement accounts can also be accredited investors if they meet certain financial criteria.

Why Learn if You’re Accredited

So why is it worth knowing if you qualify as an accredited investor? For one, it opens up a wider range of investment opportunities to allocate your capital to. This can include private securities offerings, private equity funds, venture capital funds, and direct investment in hedge funds. These types of investments are considered riskier than publicly offered registered securities but may offer higher potential returns.

Another benefit of being an accredited investor is that it allows you to invest in crowdfunding opportunities that are only available to accredited investors. Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the internet. While crowdfunding is open to anyone, there are certain types of crowdfunding that are only available to accredited investors. These offerings, called Regulation D (Reg D) offerings, allow companies to raise capital without having to register with the SEC.

Reg D offerings can take several forms, including Rule 506(b) and Rule 506(c) offerings. Rule 506(b) offerings allow up to 35 non-accredited investors to participate in the offering, while Rule 506(c) offerings are only available to accredited investors. Companies raising capital through a Rule 506(c) offering are required to verify the accredited investor status of participants through documentation such as tax returns or financial statements.

Important to Think About

It seems obvious, but worth noting that just because you are an accredited investor does not necessarily mean that investment opportunities that become available to you will work out well. It’s crucial to do your due diligence and thoroughly research any investment opportunity before committing funds. While those that meet the definition of accredited and may have attained a higher degree of financial sophistication increase their opportunities, investing always involves a varying degree of risk.

Is it worth becoming an accredited investor to open the door to exploring private securities offerings? While this decision ultimately depends on your individual financial goals and circumstances, it’s worth considering the potential downsides of becoming an accredited investor solely for this reason.

For one, becoming an accredited investor often requires a significant amount of wealth, which may not be feasible for everyone. Additionally, investing in private securities offerings often requires a higher degree of financial sophistication and access to professional investment advice. It’s important to consider whether or not you have the resources to properly evaluate investment opportunities and make informed decisions.

Furthermore, private securities offerings are often less liquid or illiquid, meaning that it can be challenging to sell your investment if you need to access your funds quickly. This lack of liquidity can be a significant disadvantage for investors who may need to access their funds in the short term.

Take Away

Being an accredited investor allows individuals and entities to participate in certain types of private securities offerings that are typically not available to non-accredited investors. This can provide access to higher potential returns but also comes with a higher degree of risk. It’s important to thoroughly research any investment opportunity before committing your funds and to consider the potential downsides of becoming an accredited investor solely for the purpose of investing in private securities offerings.

Did you Know?

From time to time, Noble Capital Markets, Inc. may post Investment opportunities (“Offerings”) on its site that may only be purchased by accredited investors, as defined by Rule 501 of Regulation D under the Securities Act of 1933 (“Regulation D”). To learn more about your qualifications and potentially these offerings, click here to explore further.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://www.sec.gov/education/capitalraising/building-blocks/accredited-investor

https://www.finra.org/rules-guidance/guidance/faqs/private-placement-frequently-asked-questions-faq

https://www.channelchek.com/terms/accredited-investors

Will the Fed Tighten in May and Walk Away?

Posted on by phoffman@channelchek.com
Image Credit: Focal Foto

A Bull Market Across Sectors May Come Out of the Next FOMC Meeting?

As U.S. GDP for the first quarter of 2023 showed a significant slowdown, expectations that the Federal Open Market Committee (FOMC) is near the end of the tightening cycle have increased among investors. The Fed announcement after the May 2-3 meeting could change the mindset of the stock, bond, and real estate markets. While a strong consumer is still fueling economic growth, as indicated by the most recent Consumer Spending numbers, government spending is also high and less related to economic momentum, yet it helped support the declining Gross Domestic Product figure.

The U.S. economy slowed at the start of 2023, which implies that the bold Fed moves have worked to cool business activity. During this same period, stock market values have risen after a dismal 2022, bonds have become stronger, and housing prices have shown signs of life.

Background

U.S. Gross Domestic Product grew by a 1.1% annualized rate during the first three months of the year. This is less than half the pace of the 2.6% growth reported for the previous quarter – which was slower than the previous quarter. The slowing trend is certainly expected and undoubtedly being monitored by FOMC members.

The slowdown from the previous quarter was largely the result of a decline in business investment and residential fixed investment, which includes money spent on home buying and construction, according to the data set. While layoffs made headlines, the job market remained strong during the first quarter.

The banking system showed weakness as asset values plummeted and deposit levels decreased. Also impacting banks is commercial real estate. The risk of default in the commercial real estate market has grown as office and retail property valuations are seen as headed lower by as much as 40%, with nearly $1.5 trillion in debt due for repayment by the end of 2025.

Could a Full-Fledged Bull Market Follow?

While there is a Wall Street adage that says, “sell in May and walk away.” A post-meeting announcement that suggests the Fed is finished taking shots at the economy could cause a relief rally as worry about increasingly expensive capital abates. Unless this worry is replaced by a new one, a broad-based upward trend may develop.

The trend in economic growth is slowing, perhaps even headed for a recession, but markets are no longer expecting a hard landing. Ashard-landing expectations work their way even further out of the market psyche, more willingness to buy should lead to higher stock prices.

Bond markets and real estate have also been positive recently. The direction in interest rates, when the Fed does indicate it is done hiking Fed Funds levels, would either fall because of knowledge that the Fed is done, or generate inflation fears which cause concern that would be reflected as higher rates along the curve. Real Estate values are tightly linked to interest rates and could take its direction from the bond market direction.  

Take Away

We’re in the part of the economic cycle where bad news (lower GDP) is seen as good news. The economy has been slumping for a few quarters, and the markets are continually forward-looking. This slump may be cause for the Fed to suggest an end to its relentless tightening phase. Equity markets could rid themselves of a year-long worry.

Nothing is certain; however, the markets that have already been rising this year in anticipation of an end to the Fed moves could make an even more decisive move upward.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://fred.stlouisfed.org/series/CPIAUCNS

https://ycharts.com/indicators/10_year_treasury_rate_h15

https://www.google.com/search?q=are+commercial+real+estate+defaults+rising&rlz=1C1CHZN_enUS934US934&oq=are+commercial+real+estate+defaults+rising&aqs=chrome..69i57j33i160l2.10358j1j15&sourceid=chrome&ie=UTF-8

Hedge Funds 101: What They Are and How They Work in Investing

Posted on by phoffman@channelchek.com

Developing a Deeper Understanding of Hedge Fund Investments

Hedge funds have become a buzzword in the world of investing, it’s one of those investment instruments that people think they can explain until they’re asked to – not everyone understands what they are or how they work. In simple terms, a hedge fund is a private investment vehicle that is managed by a professional investment manager or team. The primary goal of the fund is to generate above market returns for its investors by using various investment strategies that are often more complex and riskier than traditional investment vehicles like managed mutual funds or index funds. The following should help fill many of the gaps in investors understanding of these funds, including their legal structure, investment strategies, and how they differ from other types of investment vehicles.

Structure of a Hedge Fund

Hedge funds are formed as limited partnerships. This makes investors in the fund limited partners. The investment manager is the general partner of the fund and is responsible for making investment decisions on behalf of the limited partners. The general partner is also responsible for raising capital for the fund, safekeeping, and negotiating fees with investors.

Hedge funds are typically only available to accredited investors, which requires that they meet SEC wealth, income, or financial sophistication thresholds. This is because hedge funds are considered to be high-risk investments and are not subject to the same regulations as other types of investment vehicles. Accredited investors are assumed to have the financial sophistication and resources to handle the risks associated with hedge fund investments.

Investment Strategies

Hedge funds use a wide variety of investment strategies to generate returns for their investors. These strategies can range from relatively simple, such as long/short equity, to highly complex, such as quantitative trading or event-driven investing. Some of the most common investment strategies used by hedge funds include:

Long/Short Equity – This strategy involves buying stocks that are expected to increase in value (long) and shorting stocks that are expected to decrease in value (short).

Event-Driven – This strategy involves investing in stocks that are likely to be impacted by specific events, such as mergers, acquisitions, or bankruptcies.

Quantitative Trading – This strategy involves using mathematical models to identify trading opportunities based on patterns in historical data.

Distressed Investing – This strategy involves investing in companies that are in financial distress or undergoing restructuring.

Global Macro – This strategy involves investing in currencies, commodities, and other assets based on macroeconomic trends.

Valuing a Stock

One of the key skills required to be a successful hedge fund manager is the ability to value a stock or other opportunity. This involves analyzing a company’s financial statements, industry trends, and other relevant factors to determine the intrinsic value of the company’s worth. If the stock is undervalued, the hedge fund may decide to invest in it in the hopes that its value will increase over time. Conversely, if the stock is overvalued, the hedge fund may decide to create a short position in it in the hopes that its value will decrease.

Compared to Other Investment Vehicles

Hedge funds differ from other types of investment vehicles in several ways. First, hedge funds are not subject to the same regulations as other types of investment vehicles, which means that they have more flexibility to use complex investment strategies and take on higher levels of risk. Second, as mentioned above, hedge funds are typically only available to accredited investors, whereas more traditional types of investments like mutual funds or index funds are available to the general public.  Finally, hedge funds typically charge higher fees than other types of investment vehicles, which can include both management fees and performance fees.

Take Away

Hedge funds are complex investment vehicles that can use a variety of riskier methods in an attempt to generate high returns for their investors by using a wide variety of investment strategies. These strategies can range from relatively simple to highly complex and are often more risky than other types of investments. Hedge funds are structured as limited partnerships and are typically only available to accredited investors. They differ from other types of investment vehicles in their lack of regulatory oversight, and known to charge higher fees.

Paul Hoffman

Managing Editor, Channelchek

Sources:

https://www.sec.gov/education/capitalraising/building-blocks/accredited-investor

Release – Comstock Inc. To Host Quarterly Earnings Call On May 3rd At 4:15 PM ET

Posted on by aweinsoff@channelchek.com

Research News and Market Data on LODE

  • Corrado De Gasperis, Executive Chairman & CEO and William McCarthy, COO, will provide a business update and an overview on the Company’s Q1 Financials followed by live Q&A.
  • Investors and other interested parties are invited to join and learn more about Comstock’s innovative technologies that enable systemic decarbonization.

VIRGINIA CITY, NEVADA, APRIL 26, 2023 – Comstock Inc. (NYSE: LODE) (“Comstock” or the “Company”) is pleased to announce that the Company’s Executive Chairman & CEO, Corrado De Gasperis and its COO, William McCarthy, will provide a business update and an overview of recent financial results, along with upcoming milestones.

We invite all investors and other interested parties to register for the webinar at the link below.

Date: Wednesday, May 3, 2023
Time: 4:15 pm ET
Register: Webinar Registration


HAVE QUESTIONS? There will be an allotted time following the live presentation for a Q&A session. Unaddressed questions will be reviewed by management and responded to accordingly. You may submit your question(s) beforehand in the registration form (linked above) or by email at: ir@comstockinc.com.

About Comstock

Comstock (NYSE: LODE) commercializes innovative technologies that contribute to global decarbonization by efficiently converting under-utilized natural resources, primarily, woody biomass into net zero renewable fuels, end of life metal extraction, and generative AI-enabled advanced materials synthesis and mineral discovery.

To learn more, please visit www.comstock.inc.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and  earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.

Contact Information:

Investor Relations
RB Milestone Group
Tel (203) 487-2759
ir@comstockinc.com


Media
Zach Spencer
Comstock Inc.
Tel (775) 847-7532
questions@comstockinc.com

Source: Comstock Inc.

Release – Salem Media Group Announces Participation in the Channelchek Takeaway Series

Posted on by aweinsoff@channelchek.com

Research News and Market Data on SALM

April 26, 2023 12:06pm EDT

IRVING, Texas–(BUSINESS WIRE)– Salem Media Group, Inc. (NASDAQ: SALM) today announced its participation in the Channelchek Takeaway Series from the 2023 NAB Show, to be broadcast Thursday, April 27, 2023 at 9:00 AM CT.

NAB Show is the premier event and ultimate marketplace for those seeking to create superior audio and video experiences. From creation to consumption, across multiple platforms, the NAB Show is where global visionaries convene to bring content to life in new and exciting ways. And 2023 marks NAB Show’s centennial year.

Salem Media Group Chief Executive Officer David Santrella provides a corporate overview. After that he, along with Chief Operating Officer David Evans and Chief Financial Officer Evan Masyr, participates in a fireside chat with Noble’s Senior Media & Entertainment Analyst Michael Kupinski.

The event will be broadcast at 9:00 am CT on Thursday, April 27. Investors can attend the virtual Channelchek Takeaway Series at no cost. Registration details are available on Channelchek.

ABOUT NOBLE CAPITAL MARKETS:

Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 37 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com

ABOUT CHANNELCHEK:

Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews, and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. www.channelchek.com email: contact@channelchek.com

ABOUT SALEM MEDIA GROUP:

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.com, Facebook and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230425006191/en/

Company Contact:
Evan D. Masyr
Executive Vice President and Chief Financial Officer
(805) 384-4512
evan@salemmedia.com

Source: Salem Media Group, Inc.

Released April 26, 2023

Release – Ocugen, Inc. To participate In Fireside Chat at The H.C. Wainwright BioConnect Investor Conference

Posted on by aweinsoff@channelchek.com

Research News and Market Data on OCGN

April 26, 2023

MALVERN, Pa., April 26, 2023 (GLOBE NEWSWIRE) — Ocugen, Inc. (“Ocugen” or the “Company”) (NASDAQ: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies, biologics, and vaccines, today announced that Dr. Shankar Musunuri, Chairman, Chief Executive Officer and Co-Founder of Ocugen will participate in a fireside chat at the H.C. Wainwright BioConnect Investor Conference on May 2, 2023, at the Nasdaq Market Site in Times Square, New York City.

Details regarding Ocugen’s fireside chat are as follows:

Event: H.C. Wainwright BioConnect Investor Conference

Date: Tuesday, May 2, 2023

Time: 11 – 11:30 a.m. EDT

Location: Nasdaq Market Site, New York City, Room 1 West (10th Floor)

Dr. Musunuri will highlight Ocugen’s progress across its integrated pipeline including the Company’s positive preliminary safety and efficacy results from its ongoing OCU400 Phase 1/2 trial and modifier gene therapy platform, as well as provide an overview of anticipated short- and long-term milestones. Ocugen’s leadership team will be available for one-on-one meetings with registered investors throughout the event.

A live video webcast of the fireside chat will be available on the events page of the Ocugen investor site.

About Ocugen, Inc.
Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies, biologics, and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patient’s lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs. Discover more at www.ocugen.com and follow us on Twitter and LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Contact:
Tiffany Hamilton
Head of Communications
Tiffany.Hamilton@ocugen.com

Release – V2X to Announce First Quarter 2023 Financial Results

Posted on by aweinsoff@channelchek.com

Research News and Market Data on VVX

Company Release – 4/25/2023

MCLEAN, Va., April 25, 2023 /PRNewswire/ — V2X, Inc., (NYSE: VVX), a leading provider of critical mission solutions and support to defense clients globally, will report first quarter 2023 financial results on Tuesday, May 9, 2023, after market close. Senior management will conduct a conference call at 4:30 p.m. ET that same day.

U.S.-based participants may dial in to the conference call at 888-886-7786, while international participants may dial 416-764-8658. A live webcast of the conference call as well as an accompanying slide presentation will be available under the Investors section of the V2X website at https://gov2x.com/.   

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through May 23, 2023, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 30124902.  

ABOUT V2X
V2X is a leading provider of critical mission solutions and support to defense clients globally, formed by the 2022 merger of Vectrus and Vertex to build on more than 120 combined years of successful mission support. The Company delivers a comprehensive suite of integrated solutions across the operations and logistics, aerospace, training and technology markets to national security, defense, civilian and international clients. Our global team of approximately 15,000 employees brings innovation to every point in the mission lifecycle, from preparation, to operations, to sustainment, as they tackle the most complex challenges with agility, grit and dedication.

Contact Information

Mike Smith, CFA
ir@gov2x.com
(719) 637-5773

View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-to-announce-first-quarter-2023-financial-results-301807567.html

SOURCE V2X, Inc.

Release – Vera Bradley Announces Additional Corporate Reorganization And Cost Reduction Plans To Support Project Restoration

Posted on by aweinsoff@channelchek.com

Research News and Market Data on VRA

Apr 25, 2023

– Newly appointed CFO Michael Schwindle brings well-rounded fiscal, operational, and strategic leadership to support Project Restoration –

– Company targeting $12 million in incremental cost reductions in addition to $27 million previously identified –

FORT WAYNE, Ind., April 25, 2023 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) (the “Company”) today announced the Company is making additional corporate organizational changes and targeting $12 million in incremental cost reductions for the fiscal year ending February 3, 2024, including the elimination of approximately 25 corporate positions as part of an overall plan to further right-size the expense structure of the enterprise.

Jackie Ardrey, Chief Executive Officer of the Company, noted, “We are committed to returning Vera Bradley and Pura Vida to profitable growth and generating strong cash flow as a Company, which I believe will deliver value to our shareholders over the long term. Earlier this year, we launched Project Restoration, focusing on four key pillars of the business for each brand – Consumer, Brand, Product, and Channel – to drive this long-term profitable growth.”

“The work on Project Restoration started this quarter,” Ardrey continued, “and it is supported by improved financial discipline and cost control. These efforts together will make us a stronger, healthier Company on the top and bottom line.”

“I am pleased to announce that Michael Schwindle will join the Company as Chief Financial Officer on May 8. His track record of driving profitable growth, along with his passion for retail and operational excellence, will be instrumental as the Company executes Project Restoration and in the years beyond,” Ardrey said.

Schwindle is a retail industry veteran with over 30 years of experience, including more than 15 years in Chief Financial Officer roles, delivering strong results through profit improvement and by providing innovative solutions. Since early 2020, he has served as CFO for accessory and jewelry retailer Claire’s. Previously, he held CFO roles at specialty retailers Fleet Farm, Payless ShoeSource, Harry & David, and Musician’s Friend, as well as other key financial roles at Home Depot and Limited Brands. Schwindle began his career at Deloitte & Touche LLP.

John Enwright, the Company’s Chief Financial Officer, will be stepping down as a result of the reorganization. Enwright will work closely with Schwindle through early June to ensure a smooth transition. Ardrey noted, “On behalf of the Board and our entire team, I want to thank John for his many contributions during his nine years of service and for his commitment to our Company, brands, culture, and Associates. We wish him all the best in the future.”

The Company is making several organizational changes in the Marketing, Ecommerce, Product Design, and Product Development areas that will eliminate approximately 25 corporate positions. The Company will also reduce other non-payroll costs throughout the organization, including but not limited to: non-working marketing expenses, third-party contracts and professional services, logistics, operational costs, and travel.

Ardrey noted, “This flattened and streamlined organizational structure will help us improve execution; make faster decisions; and provide support for the Consumer, Brand, Product, and Channel pillars of Project Restoration. These most recent organizational changes and non-payroll expense reductions are expected to produce annualized savings of approximately $12 million, on top of the $27 million of cost reductions previously identified and largely realized in fiscal 2023. All of these initiatives should position Vera Bradley, Inc. to be a stronger, more nimble organization.”  

“We are committed to delivering improved value to our shareholders,” Ardrey continued. “These efforts will allow us to reset our expense base and simplify the organization, so we can focus fully on Project Restoration and on delivering both healthy top- and bottom-line growth in the future.”

About Vera Bradley, Inc.

Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.

Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts.  Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.  In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California, is a digitally native, highly-engaging lifestyle brand founded in 2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories.

Vera Bradley Safe Harbor Statement

Certain statements in this release are “forward-looking statements” made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plans; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics. Risks, uncertainties, and assumptions also include the possibility that Pura Vida acquisition benefits may not materialize as expected and that Pura Vida’s business may not perform as expected. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 28, 2023. We undertake no obligation to publicly update or revise any forward-looking statement.

CONTACTS:
Investors:
Julia Bentley, VP of Investor Relations and Communications
jbentley@verabradley.com
(260) 207-5116

Media:           
mediacontact@verabradley.com
877-708-VERA (8372)

The GEO Group (GEO) – Solid First Quarter Results

Posted on by cpereira@noblefcm.com


Wednesday, April 26, 2023

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

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

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

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

1Q23 Results. Revenue for the quarter came in at $608.2 million, up from $551.2 million a year ago. Adjusted EBITDA totaled $130.9 million, EPS was $0.19, and adjusted EPS $0.22. In the year ago period, GEO reported $125.2 million, $0.26, and $0.31, respectively. We had forecast $607 million, $128 million, $0.21, and $0.21, respectively.

ISAP the Sequential Delta. Electronic monitoring revenue declined to $132.6 million in 1Q23 down from $149.8 million in 4Q22, with the remaining businesses up $4.3 million sequentially. Notably, populations under the program have been relatively stable since the beginning of March. 


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

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

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

Schwazze (SHWZ) – Growing to Everest Heights

Posted on by cpereira@noblefcm.com


Wednesday, April 26, 2023

Schwazze (OTCQX:SHWZ, NEO:SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.

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

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

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

Another Acquisition. Schwazze announced the Company signed definitive documents to acquire certain assets of Sucellus, LLC. In the proposed acquisition, the Company will manage Everest Apothecary, Inc. and will be for $38 million in a combination of cash, a four-year seller note, and Company stock. It is expected to close in 2Q23.

Who is Everest? Everest is a not-for-profit company established in 2016 consisting of 14 dispensaries located in Albuquerque, Santa Fe, Las Cruces, Los Lunas, Sunland Park, Belen, and Texico, and also consists of approximately 16,000 square feet of cultivation and a 8,500 square foot manufacturing facility. The acquisition is similar to the R. Greenleaf acquisition done by Schwazze in 2022, where 10 dispensaries, four cultivation facilities, and a manufacturing facility were acquired for $42 million.


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

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

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

Defense Metals Corp. (DFMTF) – Pilot Plant Program Moves to Phase II

Posted on by cpereira@noblefcm.com


Wednesday, April 26, 2023

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

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

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

Pilot plant program. The Wicheeda REE project pilot plant is being configured to produce a high purity rare earth precipitate suitable as feed stock for a rare earths element (REE) separation plant. The objective of the pilot plant is to demonstrate, at a larger scale, the processing of Wicheeda flotation concentrate to produce rare earths using the acid bake hydrometallurgy process and to collect data for a preliminary feasibility study which is expected to be completed in the first quarter of 2024.

On to Phase II. Phase I of the hydrometallurgical pilot plant operation was completed successfully (please refer to our research note dated April 13) and provided an opportunity to explore areas of the process where the efficiency of the hydrometallurgical process could be improved. Changes have been incorporated in the Phase II pilot plant program which began on April 24 and will run for 10 days. The data from the pilot plant will be used in the preliminary feasibility study.


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

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

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

CoreCivic, Inc. (CXW) – Loss of a Managed Contract

Posted on by cpereira@noblefcm.com


Wednesday, April 26, 2023

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 high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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. Learn more at www.corecivic.com.

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

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

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

Contract Loss. Yesterday, CoreCivic announced the State of Oklahoma will not renew the lease agreement for the company-owned, 2,400-bed North Fork Correctional Facility (NFCF) upon the lease expiration on June 30, 2023. According to the release, the State was facing staffing challenges at the NFCF that limited the facility’s utilization and were exacerbated by the difficult employment market since the beginning of the COVID-19 pandemic. The lease generated $12.2 million of revenue in 2022.

Competitive Pressure. CoreCivic also noted that since commencing the lease of the NFCF in 2016, other privately owned correctional capacity became available to the state of Oklahoma and impacted the competitive landscape for renewal of the Company’s lease agreement. We would note The GEO Group just announced a new lease contract with Oklahoma for its previously idle Great Plains facility. Great Plains is about 50 miles from Oklahoma City compared to about 130 miles for NFCF, which may make staffing less of an issue.


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

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

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

Century Lithium Corp. (CYDVF) – Moving Right Along

Posted on by cpereira@noblefcm.com


Wednesday, April 26, 2023

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

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

Feasibility study expected by mid-year. The Clayton Valley feasibility study is advancing and expected to be released mid-2023. The main categories of work outstanding are: 1) project execution plan and schedule, 2) draft estimates, 3) draft report, 4) final capital and operating cost estimates, 5) final engineering report, and 6) final technical report. The feasibility study is being led by Wood PLC, supported by Global Resource Engineering for the mining component, thyssenKrupp Nucera AG & Co. for the design of the chlor-alkali plant, and Saltworks for the extraction process.

Collaboration with Koch. Apart from the feasibility study, Century Lithium is collaborating with Koch Technology Solutions (KTS) in the application of its proprietary Li-Pro direct lithium extraction (DLE) process. Koch Engineered Solutions, the owners of the Lionex direct lithium extraction technology, will provide the engineering design and costs for the full-scale DLE portion of the processing plant for the Clayton Valley Project.


Get the Full Report

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

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

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