Release – Vera Bradley Announces Second Quarter Fiscal Year 2023 Results

Posted on August 31, 2022 by Admin

Vera Bradley Announces Second Quarter Fiscal Year 2023 Results

Research, News, and Market Data on Vera Bradley

Aug 31, 2022

Consolidated second quarter net revenues totaled $130.4 million

Second quarter net loss totaled ($29.8) million, or ($0.95) per diluted share; excluding certain items, non-GAAP net income totaled $2.4 million, or $0.08 per diluted share

Balance sheet remains solid, with cash and cash equivalents of $38.3 million and no debt

FORT WAYNE, Ind., Aug. 31, 2022 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) today announced its financial results for the second quarter ended July 30, 2022.

In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. Vera Bradley on a stand-alone basis refers to the Vera Bradley brand.

Second Quarter Comments

Rob Wallstrom, Chief Executive Officer of the Company, commented, “While total Company second quarter revenues of $130.4 million were modestly below our expectations and we continued to experience gross margin pressure due to logistics costs, we drove product innovation at both Vera Bradley and Pura Vida, initiated meaningful cost reduction actions, and completed $6.0 million of share repurchases, while maintaining a solid, debt-free balance sheet.

“We are continuing to see bifurcation in the spending of our customer base. At Vera Bradley, Direct Full-Price Channel comparable revenues were nearly flat to last year and up double digits to fiscal 2020 as customers with higher household incomes remained engaged and continued to spend. However, inflationary pressures, especially higher gas prices, continued to negatively affect the purchases of customers with lower household incomes as well as traffic and spending in our Vera Bradley factory stores. Our Vera Bradley Indirect Channel continued to experience a healthy year-over-year rebound. Pura Vida’s ecommerce revenues continued to be affected by the shift in social and digital media effectiveness and escalating digital media costs.

“We are taking decisive actions to strengthen our core brands and the overall enterprise,” Wallstrom added. “We have begun implementation of annualized targeted cost reductions of $25 million, which are expected to be fully realized next fiscal year. These cost reductions will help offset inflationary expense pressures and the recessionary spending behavior from lower-income households. Expense savings are being derived across various areas of the Company, including retail store efficiencies, marketing expenses, information technology contracts, professional services, logistics and operational costs, and corporate payroll. In addition, we are continuing to evaluate and execute strategic price increases for both brands to offset rising raw material and freight costs.

“At the Vera Bradley brand, we remain confident in our core strategy, by continuing to innovate and build on our lifestyle merchandising focus. We will continue to optimize the travel category, which is nearly back to pre-pandemic levels; maximize back-to-campus opportunities, with strategic assortment enhancements; continue with powerful product collaborations like Disney and Harry Potter; and add excitement by expanding our footwear and home assortments this fall.”

Wallstrom continued, “At Pura Vida, we are focused on stabilizing the business and returning the brand to long-term growth. Our number one priority is to build a more diverse, innovative, effective, and performance-based marketing program to drive ecommerce sales. Prudent store growth can play a key role in driving new customer acquisition as we continue to diversify our marketing platforms, and stores demonstrate the power a retail presence can have on driving digital sales, omni-channel loyalty, and spending. We opened one new Pura Vida store location in the quarter, which is exceeding expectations.

“On the product front, we continue to build customer excitement and engagement through collaborations like Disney, Harry Potter, Hello Kitty, and the World Surf League; partnering with key influencers; offering themed-collections centered around key events like Shark Week; and the launch of our new demi-fine collection.”

Wallstrom further noted, “We are planning for the macro environment to remain challenging for the balance of the year and into next year. And, despite the strength in Pura Vida’s store business and opportunity for new store openings, we expect it to take time to return Pura Vida’s ecommerce business to growth as rebuilding and transforming the marketing program is underway. We are taking critical actions that will further strengthen both core brands and our company as a whole, not only to successfully manage through this period but position us for the future. Our teams are focused, and our cash position and balance sheet remain solid. We have successfully managed through difficult business cycles before, and I am confident we will manage through this period as well. We look forward to returning both brands to steady growth.”

Summary of Financial Performance for the Second Quarter

Consolidated net revenues totaled $130.4 million compared to $147.0 million in the prior year second quarter ended July 31, 2021.

For the current year second quarter, Vera Bradley, Inc.’s consolidated net loss totaled ($29.8) million, or ($0.95) per diluted share. These results included $32.2 million of net after tax charges, comprised of $18.2 million of Pura Vida goodwill and intangible asset impairment charges, $4.7 million of inventory adjustments associated with the exit of certain technology products and the write-off of excess mask inventory, $4.7 million of severance charges and other employee costs, $2.3 million of consulting fees associated with cost savings initiatives and the CEO search, $0.9 million of purchase order cancellation fees for spring 2023 goods, $0.6 million of store impairment charges, $0.5 million of intangible asset amortization, and $0.3 million of goodMRKT exit costs. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated second quarter net income totaled $2.4 million, or $0.08 per diluted share.

For the prior year second quarter, Vera Bradley, Inc.’s consolidated net income totaled $9.1 million, or $0.26 per diluted share. These results included $0.4 million of net after tax charges related to intangible asset amortization. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated second quarter net income totaled $9.5 million, or $0.28 per diluted share.

Summary of Financial Performance for the Six Months

Consolidated net revenues totaled $228.8 million for the current year six months ended July 30, 2022, compared to $256.1 million in the prior year six month period ended July 31, 2021.

For the current year six months, Vera Bradley, Inc.’s consolidated net loss totaled ($36.7) million, or ($1.15) per diluted share. These results included $33.1 million of net after tax charges, comprised of $18.2 million of Pura Vida goodwill and intangible asset impairment charges, $4.7 million of inventory adjustments associated with the exit of certain technology products and the write-off of excess mask inventory, $4.7 million of severance charges and other employee costs, $2.4 million of consulting fees associated with cost savings initiatives and the CEO search, $1.0 million of store and right-of-use asset impairment charges, $0.9 million of purchase order cancellation fees for spring 2023 goods, $0.9 million of intangible asset amortization, and $0.3 million of goodMRKT exit costs. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net loss for the six months totaled ($3.6) million, or ($0.11) per diluted share.

For the prior year six months, Vera Bradley, Inc’s consolidated net income totaled $6.9 million, or $0.20 per diluted share. These results included $0.9 million of net after tax charges related to intangible asset amortization. On a non-GAAP basis, excluding these charges, Vera Bradley, Inc.’s consolidated net income for the prior year totaled $7.8 million, or $0.23 per diluted share, for the six months.

Non-GAAP Numbers

The current year non-GAAP second quarter and six-month income statement numbers referenced below exclude the previously outlined goodwill and intangible asset impairment charges, inventory adjustments, severance charges and other employee costs, consulting fees, store and right-of-use asset impairment charges, purchase order cancellation fees, intangible asset amortization, and goodMRKT exit costs. The prior year non-GAAP second quarter and six-month income statement numbers referenced below exclude the previously outlined intangible asset amortization.

Second Quarter Details

Current year second quarter Vera Bradley Direct segment revenues totaled $87.0 million, a 10.4% decrease from $97.1 million in the prior year second quarter. Comparable sales declined 13.8% in the second quarter. The Company permanently closed eight full-line stores and opened six factory outlet stores in the last twelve months.

Vera Bradley Indirect segment revenues totaled $17.3 million, a 2.9% increase over $16.8 million in the prior year second quarter, reflecting an increase in certain key account orders.

Pura Vida segment revenues totaled $26.0 million, a 21.3% decrease from $33.1 million in the prior year.

Second quarter consolidated gross profit totaled $60.5 million, or 46.4% of net revenues, compared to $80.4 million, or 54.6% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $67.8 million, or 52.0% of net revenues. The current year gross profit rate was negatively impacted by higher inbound and outbound freight expense, deleverage of overhead costs, and channel mix changes, partially offset by price increases.

Second quarter consolidated SG&A expense totaled $74.0 million, or 56.8% of net revenues, compared to $68.7 million, or 46.7% of net revenues, in the prior year. On a non-GAAP basis, consolidated SG&A expense totaled $64.0 million, or 49.1% of net revenues, for the current year second quarter, compared to $68.0 million, or 46.2% of net revenues, in the prior year. As expected, Vera Bradley’s non-GAAP SG&A current year expenses were lower than the prior year primarily due to a reduction in variable-related expenses due to the lower sales volume and other cost reduction initiatives.

The Company’s second quarter consolidated operating loss totaled ($42.8) million, or (32.8%) of net revenues, compared to consolidated operating income of $12.6 million, or 8.6% of net revenues, in the prior year second quarter. On a non-GAAP basis, the Company’s current year consolidated operating income totaled $3.9 million, or 3.0% of net revenues, compared to $13.4 million, or 9.1% of net revenues, in the prior year.

By segment:

Vera Bradley Direct operating income was $10.0 million, or 11.5% of Direct net revenues, for the second quarter, compared to $23.2 million, or 23.9% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct operating income totaled $16.2 million, or 18.6% of Direct revenues.
Vera Bradley Indirect operating income was $3.9 million, or 22.6% of Indirect net revenues, compared to $5.6 million, or 33.3% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect operating income totaled $4.9 million, or 28.4% of Indirect net revenues.
Pura Vida’s operating loss was ($28.5) million, or (109.6%) of Pura Vida net revenues, in the current year, compared to operating income of $3.2 million, or 9.8% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $2.6 million, or 9.8% of Pura Vida net revenues, compared to $4.0 million, or 12.1% of Pura Vida net revenues, in the prior year.

Details for the Six Months

Vera Bradley Direct segment revenues for the current year six-month period totaled $148.6 million, a 9.3% decrease from $163.9 million in the prior year. Comparable sales declined 12.7% for the six months.

Vera Bradley Indirect segment revenues for the six months totaled $34.3 million, a 6.9% increase over $32.1 million, last year, reflecting an increase in certain key and specialty account orders.

Pura Vida segment revenues totaled $45.9 million, a 23.8% decline from $60.2 million in the prior year.

Consolidated gross profit for the six months totaled $113.0 million, or 49.4% of net revenues, compared to $139.5 million, or 54.5% of net revenues, in the prior year. On a non-GAAP basis, current year gross profit totaled $120.3 million, or 52.6% of net revenues. The current year gross profit rate was negatively affected by higher inbound and outbound freight expense, deleverage of overhead costs, and channel mix changes, partially offset by price increases.

For the six months, consolidated SG&A expense totaled $135.0 million, or 59.0% of net revenues, compared to $129.6 million, or 50.6% of net revenues, in the prior year. On a non-GAAP basis, current year consolidated SG&A expense totaled $123.4 million, or 53.9% of net revenues, compared to $128.1 million, or 50.0% of net revenues, in the prior year. As expected, Vera Bradley’s non-GAAP SG&A current year expenses were lower than the prior year primarily due to a reduction in variable-related expenses due to the lower sales volume and other cost reduction initiatives.

For the six months, the Company’s consolidated operating loss totaled ($51.1) million, or (22.3%) of net revenues, compared to consolidated operating income of $10.7 million, or 4.2% of net revenues, in the prior year six-month period. On a non-GAAP basis, the Company’s current year consolidated operating loss was ($2.9) million, or (1.2%) of net revenues, compared to consolidated operating income of $12.2 million, or 4.8% or net revenues, in the prior year.

By segment:

Vera Bradley Direct operating income was $15.5 million, or 10.5% of Direct net revenues, compared to $34.0 million, or 20.8% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct operating income was $21.7 million, or 14.6% of Direct net revenues.
Vera Bradley Indirect operating income was $9.4 million, or 27.4% of Indirect net revenues, compared to $10.1 million, or 31.3% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect operating income totaled $10.4 million, or 30.3% of Indirect net revenues.
Pura Vida’s operating loss was ($27.5) million, or (59.9%) of Pura Vida net revenues, for the current year, compared to operating income of $5.7 million, or 9.5% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $4.4 million, or 9.5% of Pura Vida net revenues, compared to $7.3 million, or 12.1% of Pura Vida net revenues, in the prior year.

Balance Sheet

Net capital spending for the second quarter and six months totaled $2.7 million and $4.4 million, respectively.

Cash, cash equivalents, and investments as of July 30, 2022 totaled $38.3 million compared to $76.5 million at the end of last year’s second quarter. The Company had no borrowings on its $75 million ABL credit facility at quarter end.

Total quarter-end inventory was $179.6 million, compared to $148.0 million at the end of the second quarter last year. Current year inventory was higher than the prior year primarily due to approximately $24.0 million of additional inventory in-transit as the Company continues to navigate delays in the supply chain and ensures it has adequate inventory coverage going into the fall and holiday selling periods.

During the second quarter, the Company repurchased approximately $6.0 million of its common stock (approximately 1.0 million shares at an average price of $6.11), bringing year-to-date purchases through the end of the second quarter to approximately $16.5 million (approximately 2.4 million shares at an average price of $6.84). The Company has $29.3 million of remaining availability under its $50.0 million repurchase authorization that expires in December 2024.

Forward Outlook

Wallstrom also commented, “We expect the challenging macroeconomic environment to continue for the balance of the year and anticipate it will take additional time to return the Pura Vida ecommerce business to growth, high gas prices and other inflationary pressures will continue to impact the Vera Bradley factory channel, and there will be continued pressure on gross margin. Therefore, we believe it is appropriate to further adjust our outlook for the fiscal year.”

Excluding net revenues, all forward-looking guidance numbers referenced below are non-GAAP. The prior year SG&A and earnings per diluted share numbers exclude the previously disclosed net charges related to intangible asset amortization. Current year guidance excludes previously disclosed goodwill impairment charges, inventory adjustments, severance and other employee costs, consulting fees, store and right-of-use asset impairment charges, purchase order cancellation fees, intangible asset amortization, goodMRKT exit costs, and any similar charges.

For Fiscal 2023, the Company’s updated expectations are as follows:

Consolidated net revenues of $480 to $490 million. Net revenues totaled $540.5 million in Fiscal 2022. Year-over-year Vera Bradley revenues are expected to decline between 7% and 9%, and Pura Vida revenues are expected to decline between 16% and 21%.
A consolidated gross profit percentage of 53.7% to 54.1% compared to 53.3% in Fiscal 2022. The expected year-over-year increase is primarily related to incremental inbound and outbound freight expense and expected deleverage on overhead costs, more than offset by price increases.
Consolidated SG&A expense of $246 to $250 million compared to $258.8 million in Fiscal 2022. The reduction in SG&A expense is being driven by cost reduction initiatives and a reduction in compensation expense, marketing, and other variable-related expenses due to the expected sales decline from the prior year.
Consolidated operating income of $11.6 to $14.5 million compared to $30.1 million in Fiscal 2022.
Consolidated diluted EPS of $0.20 to $0.28 based on diluted weighted-average shares outstanding of 31.6 million and an effective tax rate of between 24.0 and 25.0%. Diluted EPS totaled $0.57 last year.
Net capital spending of approximately $8 to $10 million compared to $5.5 million in the prior year, reflecting investments associated with new Vera Bradley factory and Pura Vida store locations and technology and logistics enhancements.

Disclosure Regarding Non-GAAP Measures

The Company’s management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.

The Company believes that the non-GAAP measures presented in this earnings release, including free cash flow; cost of sales; gross profit; selling, general, and administrative expenses; impairment of goodwill and intangible assets; operating (loss) income; net (loss) income; net (loss) income attributable and available to Vera Bradley, Inc.; and diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release. A recast of the supplemental schedule for the current year first quarter has been provided to exclude the consulting fees related to the cost savings initiatives for consistency with the current year second quarter supplemental schedule.

Call Information

A conference call to discuss results for the second quarter is scheduled for today, Wednesday, August 31, 2022, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (800) 437-2398, and enter the access code 3589431. A replay will be available shortly after the conclusion of the call and remain available through September 14, 2022. To access the recording, listeners should dial (844) 512-2921, and enter the access code 3589431.

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.

The Company has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley full-line and factory outlet stores in the United States, verabradley.com, verabradley.ca, Vera Bradley’s online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,700 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.eu, and
www.puravidabracelets.ca; through the distribution of its products to wholesale retailers and department stores; and through its two Pura Vida retail stores.

Website Information

We routinely post important information for investors on our website
www.verabradley.com in the “Investor Relations” section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.

Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.

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 plan; 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 COVID-19 or other 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 29, 2022. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACTS:
Investors:

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

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

Vera Bradley, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	July 30, 2022			January 29, 2022			July 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	38,321		$	88,436		$	75,753
Short-term investments		–			–			727
Accounts receivable, net		25,593			20,681			29,897
Inventories		179,557			144,881			148,048
Income taxes receivable		5,113			9,391			6,289
Prepaid expenses and other current assets		16,913			15,928			15,627
Total current assets		265,497			279,317			276,341

Operating right-of-use assets		85,793			79,873			86,617
Property, plant, and equipment, net		60,305			59,941			62,350
Intangible assets, net		32,769			44,223			45,759
Goodwill		24,833			44,254			44,254
Deferred income taxes		9,276			3,857			3,294
Other assets		4,748			6,081			6,444
Total assets	$	483,221		$	517,546		$	525,059

Liabilities, Redeemable Noncontrolling Interest, and Shareholders’ Equity
Current liabilities:
Accounts payable	$	43,722		$	30,492		$	30,247
Accrued employment costs		16,018			12,463			15,465
Short-term operating lease liabilities		19,768			18,699			20,584
Other accrued liabilities		21,526			16,422			17,522
Income taxes payable		374			–			–
Total current liabilities		101,408			78,076			83,818

Long-term operating lease liabilities		84,015			80,861			87,984
Other long-term liabilities		157			195			71
Total liabilities		185,580			159,132			171,873

Redeemable noncontrolling interest		23,491			30,974			30,364
Shareholders’ equity:
Additional paid-in-capital		107,941			107,907			106,455
Retained earnings		297,623			334,364			323,431
Accumulated other comprehensive loss		(135	)		(29	)		(4	)
Treasury stock		(131,279	)		(114,802	)		(107,060	)
Total shareholders’ equity of Vera Bradley, Inc.		274,150			327,440			322,822
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity	$	483,221		$	517,546		$	525,059

Vera Bradley, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)


	Thirteen Weeks Ended					Twenty-Six Weeks Ended
	July 30, 2022			July 31, 2021		July 30, 2022			July 31, 2021

Net revenues	$	130,371		$	147,048	$	228,830		$	256,142
Cost of sales		69,854			66,687		115,799			116,617
Gross profit		60,517			80,361		113,031			139,525
Selling, general, and administrative expenses		74,042			68,729		134,956			129,625
Impairment of goodwill and intangible assets		29,338			–		29,338			–
Other income, net		42			1,016		209			789
Operating (loss) income		(42,821	)		12,648		(51,054	)		10,689
Interest expense, net		36			119		76			209
Income (loss) before income taxes		(42,857	)		12,529		(51,130	)		10,480
Income tax (benefit) expense		(5,956	)		2,672		(7,519	)		2,141
Net (loss) income		(36,901	)		9,857		(43,611	)		8,339
Less: Net (loss) income attributable to redeemable noncontrolling interest		(7,134	)		807		(6,870	)		1,434
Net (loss) income attributable to Vera Bradley, Inc.	$	(29,767	)	$	9,050	$	(36,741	)	$	6,905

Basic weighted-average shares outstanding		31,429			34,001		32,051			33,795
Diluted weighted-average shares outstanding		31,429			34,500		32,051			34,502

Basic net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.95	)	$	0.27	$	(1.15	)	$	0.20
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.95	)	$	0.26	$	(1.15	)	$	0.20

Vera Bradley, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)


	Twenty-Six Weeks Ended
	July 30, 2022			July 31, 2021
Cash flows from operating activities
Net (loss) income	$	(43,611	)	$	8,339
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation of property, plant, and equipment		4,371			4,514
Amortization of operating right-of-use assets		10,621			10,026
Goodwill and intangible asset impairment		29,338			–
Other impairment charges		1,351			–
Amortization of intangible assets		1,537			1,537
Provision for doubtful accounts		(119	)		26
Stock-based compensation		1,444			3,372
Deferred income taxes		(5,419	)		236
Other non-cash gain, net		–			(45	)
Changes in assets and liabilities:
Accounts receivable		(4,793	)		(2,380	)
Inventories		(34,676	)		(6,632	)
Prepaid expenses and other assets		348			2,153
Accounts payable		12,759			2,696
Income taxes		4,652			762
Operating lease liabilities, net		(12,910	)		(13,202	)
Accrued and other liabilities		7,989			5,085
Net cash (used in) provided by operating activities		(27,118	)		16,487

Cash flows from investing activities
Purchases of property, plant, and equipment		(4,391	)		(2,281	)
Proceeds from maturities and sales of investments		–			565
Proceeds from disposal of property, plant, and equipment		–			45
Net cash used in investing activities		(4,391	)		(1,671	)

Cash flows from financing activities
Tax withholdings for equity compensation		(1,410	)		(2,350	)
Repurchase of common stock		(16,477	)		–
Distributions to redeemable noncontrolling interest		(613	)		(879	)
Net cash used in financing activities		(18,500	)		(3,229	)
Effect of exchange rate changes on cash and cash equivalents		(106	)		(9	)

Net (decrease) increase in cash and cash equivalents	$	(50,115	)	$	11,578
Cash and cash equivalents, beginning of period		88,436			64,175
Cash and cash equivalents, end of period	$	38,321		$	75,753

Vera Bradley, Inc.
First Quarter Fiscal 2023
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended April 30, 2022
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended
	As Reported			Other Items				Non-GAAP (Excluding Items)
Gross profit	$	52,514		$	–			$	52,514
Selling, general, and administrative expenses		60,914			1,511		¹		59,403
Impairment of goodwill and intangible assets		–			–				–
Operating loss		(8,233	)		(1,511	)			(6,722	)
Loss before income taxes		(8,273	)		(1,511	)			(6,762	)
Income tax benefit		(1,563	)		(375	)	²		(1,188	)
Net loss		(6,710	)		(1,136	)			(5,574	)
Less: Net income (loss) attributable to redeemable noncontrolling interest		264			(192	)			456
Net loss attributable to Vera Bradley, Inc.		(6,974	)		(944	)			(6,030	)
Diluted net loss per share available to Vera Bradley, Inc. common shareholders	$	(0.21	)	$	(0.03	)		$	(0.18	)

Vera Bradley Direct segment operating income	$	5,503		$	–			$	5,503
Vera Bradley Indirect segment operating income	$	5,479		$	–			$	5,479
Pura Vida segment operating income (loss)	$	1,056		$	(769	)	³	$	1,825
Unallocated corporate expenses	$	(20,271	)	$	(742	)	⁴	$	(19,529	)

¹Items include $769 for the amortization of definite-lived intangible assets; $592 for a right-of-use asset impairment charge; and $150 for consulting fees associated with cost savings initiatives
²Related to the tax impact of the charges mentioned above
³Related to the amortization of definite-lived intangible assets
⁴Related to $592 for a right-of-use asset impairment charge and $150 for consulting fees associated with cost savings initiatives

Vera Bradley, Inc.
Second Quarter Fiscal 2023
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended July 30, 2022
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended
	As Reported			Other Items				Non-GAAP (Excluding Items)
Gross profit (loss)	$	60,517		$	(7,276	)	¹	$	67,793
Selling, general, and administrative expenses		74,042			10,076		²		63,966
Impairment of goodwill and intangible assets		29,338			29,338				–
Operating (loss) income		(42,821	)		(46,690	)			3,869
(Loss) Income before income taxes		(42,857	)		(46,690	)			3,833
Income tax (benefit) expense		(5,956	)		(6,760	)	³		804
Net (loss) income		(36,901	)		(39,930	)			3,029
Less: Net (loss) income attributable to redeemable noncontrolling interest		(7,134	)		(7,771	)			637
Net (loss) income attributable to Vera Bradley, Inc.		(29,767	)		(32,159	)			2,392
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.95	)	$	(1.02	)		$	0.08

Vera Bradley Direct segment operating income (loss)	$	10,044		$	(6,173	)	⁴	$	16,217
Vera Bradley Indirect segment operating income (loss)	$	3,918		$	(994	)	⁵	$	4,912
Pura Vida segment operating (loss) income	$	(28,534	)	$	(31,085	)	⁶	$	2,551
Unallocated corporate expenses	$	(28,249	)	$	(8,438	)	⁷	$	(19,811	)

¹Items include $6,142 for inventory adjustments associated with the exit of certain technology products and the goodMRKT brand, as well as excess mask products and $1,134 for PO cancellation fees
²Items include $5,714 for severance charges; $2,755 for consulting fees associated with cost savings initiatives and CEO search; $768 for the amortization of definite-lived intangible assets; $759 for store impairment charges; and $80 for goodMRKT brand exit costs
³Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
⁴Related to $5,097 related to an allocation for certain inventory adjustments and PO cancellation fees; $759 for store impairment charges; $302 for goodMRKT brand exit costs; and $15 for severance charges
⁵Related to an allocation for certain inventory adjustments and PO cancellation fees
⁶Related to $29,338 of goodwill and intangible asset impairment charges; $963 for inventory adjustments associated with mask products; $768 for the amortization of definite-lived intangible assets; and $16 for severance charges
⁷Related to $5,683 for severance charges and $2,755 for consulting fees associated with cost savings initiatives and CEO search

Vera Bradley, Inc.
Second Quarter Fiscal 2022
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended July 31, 2021
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended
	As Reported			Other Items				Non-GAAP (Excluding Items)
Gross profit	$	80,361		$	–			$	80,361
Selling, general, and administrative expenses		68,729			768		¹		67,961
Operating income (loss)		12,648			(768	)			13,416
Income (loss) before income taxes		12,529			(768	)			13,297
Income tax expense (benefit)		2,672			(130	)			2,802
Net income (loss)		9,857			(638	)			10,495
Less: Net income (loss) attributable to redeemable noncontrolling interest		807			(192	)			999
Net income (loss) attributable to Vera Bradley, Inc.		9,050			(446	)			9,496
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders	$	0.26		$	(0.01	)		$	0.28

Vera Bradley Direct segment operating income	$	23,168		$	–			$	23,168
Vera Bradley Indirect segment operating income	$	5,601		$	–			$	5,601
Pura Vida segment operating income (loss)	$	3,226		$	(768	)	¹	$	3,994
Unallocated corporate expenses	$	(19,347	)	$	–			$	(19,347	)

¹Includes the amortization of definite-lived intangible assets

Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Twenty-Six Weeks Ended July 30, 2022
(in thousands, except per share amounts)
(unaudited)
	Twenty-Six Weeks Ended
	As Reported			Other Items				Non-GAAP (Excluding Items)
Gross profit (loss)	$	113,031		$	(7,276	)	¹	$	120,307
Selling, general, and administrative expenses		134,956			11,587		²		123,369
Impairment of goodwill and intangible assets		29,338			29,338				–
Operating loss		(51,054	)		(48,201	)			(2,853	)
Loss before income taxes		(51,130	)		(48,201	)			(2,929	)
Income tax benefit		(7,519	)		(7,135	)	³		(384	)
Net loss		(43,611	)		(41,066	)			(2,545	)
Less: Net (loss) income attributable to redeemable noncontrolling interest		(6,870	)		(7,963	)			1,093
Net loss attributable to Vera Bradley, Inc.		(36,741	)		(33,103	)			(3,638	)
Diluted net loss per share available to Vera Bradley, Inc. common shareholders	$	(1.15	)	$	(1.03	)		$	(0.11	)

Vera Bradley Direct segment operating income (loss)	$	15,547		$	(6,173	)	⁴	$	21,720
Vera Bradley Indirect segment operating income (loss)	$	9,397		$	(994	)	⁵	$	10,391
Pura Vida segment operating (loss) income	$	(27,478	)	$	(31,854	)	⁶	$	4,376
Unallocated corporate expenses	$	(48,520	)	$	(9,180	)	⁷	$	(39,340	)

¹Items include $6,142 for inventory adjustments associated with the exit of certain technology products and the goodMRKT brand, as well as excess mask products and $1,134 for PO cancellation fees
²Items include $5,714 for severance charges; $2,905 for consulting fees associated with cost savings initiatives and CEO search; $1,537 for the amortization of definite-lived intangible assets; $1,351 for store and right-of-use asset impairment charges; and $80 for goodMRKT brand exit costs
³Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
⁴Related to $5,097 related to an allocation for certain inventory adjustments and PO cancellation fees; $759 for store impairment charges; $302 for goodMRKT brand exit costs; and $15 for severance charges
⁵Related to an allocation for certain inventory adjustments and PO cancellation fees
⁶Related to $29,338 of goodwill and intangible asset impairment charges; $963 for inventory adjustments associated with mask products; $1,537 for the amortization of definite-lived intangible assets; and $16 for severance charges
⁷Related to $5,683 for severance charges; $2,905 for consulting fees associated with cost savings initiatives and CEO search; and $592 for a right-of-use asset impairment charge

Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Twenty-Six Weeks Ended July 31, 2021
(in thousands, except per share amounts)
(unaudited)
	Twenty-Six Weeks Ended
	As Reported			Other Items				Non-GAAP (Excluding Items)
Gross profit	$	139,525		$	–			$	139,525
Selling, general, and administrative expenses		129,625			1,537		¹		128,088
Operating income (loss)		10,689			(1,537	)			12,226
Income (loss) before income taxes		10,480			(1,537	)			12,017
Income tax expense (benefit)		2,141			(293	)			2,434
Net income (loss)		8,339			(1,244	)			9,583
Less: Net income (loss) attributable to redeemable noncontrolling interest		1,434			(384	)			1,818
Net income (loss) attributable to Vera Bradley, Inc.		6,905			(860	)			7,765
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders	$	0.20		$	(0.02	)		$	0.23

Vera Bradley Direct segment operating income	$	34,028		$	–			$	34,028
Vera Bradley Indirect segment operating income	$	10,062		$	–			$	10,062
Pura Vida segment operating income (loss)	$	5,734		$	(1,537	)	¹	$	7,271
Unallocated corporate expenses	$	(39,135	)	$	–			$	(39,135	)

¹Includes the amortization of definite-lived intangible assets

Catalyst Series – Lineage Cell Therapeutics (LCTX)

Posted on August 31, 2022 by Admin

This is Catalyst – a new short-form video series that asks senior executives the questions investors want answered. Exclusively on Channelchek. Brian Culley, CEO of Lineage Cell Therapeutics provides an update on the company’s OpRegen program for the treatment of dry age-related macular degeneration and answers questions regarding the latest developments with Lineage’s OPC1 program for spinal cord injury, and how they are managing in the current challenging biotech environment. All in less than three minutes.

Research, News, and Advanced Market Data on LCTX

Baudax Bio (BXRX) – Priced Common Offering; Reducing Price Target

Posted on August 31, 2022September 6, 2022 by Admin

Wednesday, August 31, 2022

Baudax Bio (BXRX)
Priced Common Offering; Reducing Price Target

Baudax Bio is a pharmaceutical company focused on innovative products for acute care settings. ANJESO is the first and only 24-hour, intravenous (IV) COX-2 preferential non-steroidal anti-inflammatory (NSAID) for the management of moderate to severe pain. In addition to ANJESO, Baudax Bio has a pipeline of other innovative pharmaceutical assets including two novel neuromuscular blocking agents (NMBs) and a proprietary chemical reversal agent specific to these NMBs. For more information, please visit www.baudaxbio.com.

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

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

Priced $6.2 million offering. Late Monday, Baudax announced the pricing of its public offering. The offering of 11.819 million shares of common or pre-funded warrants at a public offering price of $0.525 per share were sold as a unit. Each share or warrant unit included a Series A-1 warrant to purchase one share at $0.525, and a Series A-2 warrant to purchase one share at $0.525. The Series A-1 warrant is exercisable immediately with a 5 year expiration, while the Series A-2 warrant expires 13 months from date of issuance. The gross proceeds of the offering, expected to close on or about September 1st, are around $6.2 million. Baudax intends to use the net proceeds from the offering for pipeline development activities and general corporate purposes.

Pricing is at depressed levels. While funding needs were anticipated, the Baudax offering of common shares and warrants are coming near all-time lows. The common stock price, at the $0.525 offering level, has declined 31% since the Q2 financials were released August 11th. …

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.

Permex Petroleum (OILCF) – Permex reports fiscal third quarter results

Posted on August 31, 2022September 6, 2022 by Admin

Wednesday, August 31, 2022

Permex Petroleum (OILCF)
Permex reports fiscal third quarter results

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

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

Permex reported results for the quarter ended June 30, 2022. Given limited sales at this point in the company’s development, results are largely a function of operating costs. The company reported a large jump in auditing, legal, and marketing fees as the company prepares to begin drilling on the recently-acquired Breedlove field properties. Total operating expenses were $1,278,251 for the quarter versus $177,861 for the same period last year. Net income was ($761,303) or ($0.00) per share versus ($103,541) or ($0.00) per share. We had been looking for net income of ($191,000) or ($0.00) per share.

The shares of Permex trade on company developments not financial results. We believe the company has tremendous upside as it drills out its property. Consequently, the stock price rightfully trades on operational developments instead of financial results. Along those lines, the company reported back on August 16th that it had received approval on its permit application for drilling on the Breedlove field in Martin County. We expect the company to drill one vertical and one horizontal well in Martin County before the end of the year….

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

Release – Orion Group Holdings Names Scott Thanisch as Executive Vice President and Chief Financial Officer

Posted on August 31, 2022 by Admin

Orion Group Holdings Names Scott Thanisch as Executive Vice President and Chief Financial Officer

Research, News, and Market Data on Orion Group Holdings

August 31, 2022 16:31 ET

HOUSTON, Aug. 31, 2022 (GLOBE NEWSWIRE) — Orion Group
Holdings, Inc.

(NYSE: ORN) (the “Company”), a leading specialty construction company, today announced that Scott Thanisch has been named Executive Vice President and Chief Financial Officer and will assume his new duties on September 12, 2022.

Mr. Thanisch is an operationally focused executive with broad experience in global corporate finance and proven results in corporate value creation. He is a skilled change agent with the ability to identify opportunities and take decisive action. He is also a seasoned leader able to recruit, coach and develop finance talent. He comes to Orion after serving as the Chief Financial Officer of a Texas commercial construction services company and a transport services, maintenance, and repair company, having previously held various related positions in other industries. He holds a Bachelor of Business Administration degree from The University of Texas at Austin, where he was a National Merit Scholar, and holds a Master of Business Administration degree from Southern Methodist University.

Austin Shanfelter, the Company’s Interim Chief Executive Officer stated, “Scott joining our management team is a defining step forward for our company. He and Travis Boone (the Company’s incoming President and Chief Executive Officer) each bring a wealth of varied experience that will coalesce around the future growth of Orion. Scott is a seasoned financial professional with a proven track record of adding value and leading teams and is therefore well-suited to be able to help take advantage of this important opportunity. On behalf of the board of directors and the Orion Group Holdings’ employees, we are pleased to welcome Scott as our new Executive Vice President and Chief Financial Officer.”

Mr. Thanisch stated, “I am genuinely excited to join Travis and the Orion Group team at this time of significant opportunity for the Company. Orion’s unique capabilities and strengths position the Company as a key partner in the marine infrastructure, industrial, and building sectors. I feel privileged and look forward to serving Orion’s stakeholders, customers, and employees as we implement our strategic priorities to accelerate growth and value creation.”

Mr. Boone described his passion for the construction industry and stated that he is looking forward to working with such a seasoned finance professional, adding that he and Scott will focus on improving performance and increasing stockholder, customer, and team member value. He also expressed confidence in the Company’s ability to take advantage of the numerous transformational opportunities on the horizon.

About Orion Group Holdings, Inc.

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘seeks’, ‘approximately’, ‘intends’, ‘plans’, ‘estimates’, or ‘anticipates’, or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, profit, EBITDA, EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start date, anticipated revenues, and contract options which may or may not be awarded in the future. Forward looking statements involve risks, including those associated with the Company’s fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints and any potential contract options which may or may not be awarded in the future, and are the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company’s plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.

Orion Group Holdings Inc.
Francis Okoniewski, Vice President Investor Relations
(346) 616-4138
fokoniewski@orn.net
www.oriongroupholdingsinc.com

Source: Orion Group Holdings, Inc.

Release – Comstock’s LINICO Receives Main Operating Permit

Posted on August 31, 2022 by Admin

Comstock’s LINICO Receives Main Operating Permit

Research, News, and Market Data on Comstock Mining

Nevada Facility Based on Advanced New
Lithium Extraction and Electrification Production Technologies

VIRGINIA CITY, NEVADA, AUGUST 31, 2022 – Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the issuance by Nevada Division of Environmental Protection (“NDEP”) of a Written Determination of Hazardous Waste Recycling (“Operating Permit”) to Comstock’s 90% owned subsidiary, LINICO Corporation (“LiNiCo”), authorizing LiNiCo to conduct lithium-ion battery (“LIB”) recycling and related operations at its 137,000 square foot battery metal recycling facility located in the Tahoe Reno Industrial (“TRI”) Center in Storey County, Nevada (“TRI Facility”).

Commencement of Construction and Operations

“We are pleased to receive this critical permit ahead of expectation,” said Corrado De Gasperis, Comstock’s and LiNiCo’s Executive Chairman and Chief Executive Officer. “The Operating Permit is based on the first phase of LiNiCo’s advanced new LIB recycling technologies, including crushing, separating, lithium extraction and precursor cathode active products, designed for leading yields at a fraction of the capital and operating cost of all known lithium extraction and recycling methods.”

LiNiCo is currently building a commercial scale pilot facility for installation at the TRI Facility, with an anticipated commissioning and onset of operations in mid-2023, with lithium extraction capacity planned for the third quarter of 2023.

“We will use our commercial scale pilot and early adopter client agreements to confirm all engineering and other requirements for the scale-up and full commercial deployment of our unique processes at the TRI Facility,” added De Gasperis. “Our goal is to commence construction and expand to scale at the TRI Facility immediately after our commercial pilot confirmation is complete. A key advantage of LiNiCo’s technologies is that they are highly scalable and capable of being right sized to match the evolving and dynamic needs of the rapidly growing lithium recycling industry.”

Electrification and continued advancements in energy storage are vitally necessary to reduce reliance on fossil fuels. According to International Energy Agency (“IEA”), there were more than 10 million electric vehicles (“EVs”) on the road in 2020, with new EV registrations increasing by 41% over 2019 and another 140% during the first quarter of 2021. Meeting the increased EV demand is estimated to require about five times more lithium carbonate equivalent (“LCE”) than the entire lithium mining industry produces today. Miners and manufacturers may eventually scale up to meet that demand, however, according to a January 2021 USGS mineral commodity summary, there are only about
86 million tons of identified lithium reserves worldwide, and LIBs are typically landfilled after eight to ten years of use. In short, lithium demand is increasing globally, and a tsunami of lithium recycling demand is coming as new electrification products are deployed and age out of use.

De Gasperis concluded, “LiNiCo’s technologies are designed to meet the realities of that demand by enabling profitability at the earliest stages of production, thereby positioning LiNiCo to contribute billions to Comstock’s enterprise value based on existing valuations of comparable public companies. We are very pleased to receive our first major permit and we look forward to completing all remaining permitting requirements, including air quality, so we can commence recycling by mid-2023.”

About LiNiCo Corporation

LiNiCo Corporation (“LiNiCo”) holds the rights to a portfolio of innovative processes that efficiently crush and separate LIBs, extract lithium, nickel, cobalt, and graphite, and reuse the recovered metals to produce 99% pure cathode active precursor products. Collectively, these technologies give LiNiCo, and its existing 137,000 square foot battery metal recycling facility, differentiating competitive advantages, including the ability to process upwards of 100,000 tons of LIB and related feedstocks per year into an array of electrification products, including lithium, nickel, cobalt, graphite, and cathode materials.

About Comstock Inc.

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complementary process solutions and related services, and by licensing selected technologies to qualified strategic partners. 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 industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; 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 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; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, earnings and growth. These statements are based on assumptions and assessments made by our management considering 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, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious 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 mercury remediation, 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; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; 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 because 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:

Comstock Inc.
P.O. Box 1118
Virginia City, NV 89440
www.comstock.inc

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 Ext.151
questions@comstockmining.com

Fireside Chat Replay – Lineage Cell Therapeutics (LCTX) CEO Brian Culley

Posted on August 30, 2022 by Admin

Lineage Cell Therapeutics CEO Brian Culley is joined by Noble Capital Markets Senior Research Analyst Robert LeBoyer for a Q & A session featuring questions asked by the live audience throughout the event.

Research, News, and Advanced Market Data on LCTX

Information on upcoming live virtual roadshows

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in development for the treatment of geographic atrophy secondary to age-related macular degeneration, is being developed under a worldwide collaboration with Roche and Genentech, a member of the Roche Group; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer; (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

US and Chinese Authorities Reach Agreement to Prevent Delisting Chinese Stocks

Posted on August 30, 2022 by Admin




Image Credit: Mentatdgt (Pexels)

Deal Reached With China on ADRs is Being Treated With Caution

While U.S. stocks plunged during Fed Chair Powell’s address at Jackson Hole last Friday (August 26), shares of Chinese shares trading on U.S. exchanges were lifted. The reason was a standoff between the Securities and Exchange Commission (SEC) and China Securities Regulatory Commission (CSRC) under the U.S. Holding Foreign Companies Accountable Act (HFCAA) had just improved its chances of being settled. The agreement would avoid a mass delisting of Chinese stocks. This initially lifted most Chinese ADRs.

Details of Agreement

Last Friday, a light of hope in the US-China audit conflict was seen as authorities from both sides reached a preliminary agreement to allow American regulators to inspect audit documents at accounting firms in Hong Kong and mainland China. The preliminary agreement caused a celebratory rally in the affected securities, the arrangements still have to be tested and successful.

The constant uncertainty since the Spring of whether up to 150 Chinese companies trading on U.S. exchanges would have to find another primary exchange, such as Hong Kong, has been causing increased volatility among the shares. There may still be some unseen hurdles, but the odds now seem much better that the SEC, the Public Company Accounting Oversight Board (PCAOB) in the U.S., and Chinese authorities will bend to each other’s expectations.

What is the PCAOB’s Role?

The PCAOB inspects and investigates registered public accounting firms in more than 50 jurisdictions around the world under its mandate under the Sarbanes-Oxley Act. However, for more than a decade, the PCAOB’s access to inspect and investigate registered public accounting firms in mainland China and Hong Kong has been obstructed.

In 2020, Congress passed the Holding Foreign Companies Accountable Act (HFCAA). Under the HFCAA, beginning with 2021, after three consecutive years of PCAOB determinations where positions taken by authorities in the People’s Republic of China (PRC) obstructed the PCAOB’s ability to inspect and investigate registered public accounting firms in mainland China and Hong Kong, the companies audited by those firms would be subject to a trading prohibition on U.S. markets.

The trading prohibition would be carried out by the SEC and would apply to companies the Commission identifies as having used registered public accounting firms in mainland China and Hong Kong for three consecutive years.

In 2021, the PCAOB made determinations that the positions taken by PRC authorities prevented the PCAOB from inspecting and investigating in mainland China and Hong Kong completely.

Source: Koyfin

PCAOB Announcement

In an announcement by the US Public Company Accounting Oversight Board (PCAOB), chair Erica Williams announced, “On paper, the agreement signed today grants the PCAOB complete access to the audit work papers, audit personnel, and other information we need to inspect and investigate any firm we choose, with no loopholes and no exceptions. But the real test will be whether the words agreed to on paper translate into complete access in practice.” The announcement goes on to list three ways inspections will be allowed in a Statement of Protocol:

The PCAOB has sole discretion to select the firms, audit engagements, and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities.
Procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information as needed.
The PCAOB has direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

The China Securities Regulatory Commission (CSRC) and Ministry of Finance would give sole discretion for access, procedures to view documents, and direct access to all related personnel taking part in the audit inspections.

Cautious Language

By most standards, this would appear to be a completed deal, something the companies and U.S. investors could truly celebrate. But all reports by U.S. officials, including an interview with SEC Chairman Gary Gensler, had with CNBC, sound tentative. Even the tone of the PCAOB statement indicates caution about a successful outcome with concerns over compliance by China.

“On paper, the agreement signed today grants the PCAOB complete access to the audit work papers, audit personnel, and other information we need to inspect and investigate any firm we choose, with no loopholes and no exceptions,” Williams said. “But the real test will be whether the words agreed to on paper translate into complete access in practice. Now we will find out whether those promises hold up.”

In China, the CSRC also sounded unsettled, stating that delistings in the U.S. can only be avoided if further cooperation can meet the “respective regulatory needs” of both sides.

Coin Toss

Goldman Sachs Group Inc. said markets are now pricing in a 50% chance of Chinese companies being delisted from U.S. exchanges, even as the two nations reached a deal to resolve the long standoff over audits. The coin toss odds are a dramatic improvement over the 95% chance of failure Goldman said the markets gave success back in March.

In terms of loss of value if it eventually fails, Goldman’s odds makers said in the best-case scenario of no delistings, they forecast an 11 percent and 5 percent gain for Chinese ADRs and the MSCI China Index, respectively. And in the event of a forced delisting, the firm estimates a 13 percent and 6 percent fall, respectively.

What if the Agreement Does Fall Apart?

A total of 52 out of 261 US-listed Chinese firms currently do not qualify to go public in Hong Kong due to insufficient market capitalization, revenue, profit, and/or operating cash flow. If delisted, there will be extra demand for capital to buy back shares from smaller shareholders, which could cause liquidity pressures.

Chinese authorities have been making inroads to access other markets, such as Zurich and London, with the intent to establish more avenues in other European countries, including Germany. Nonetheless, Hong Kong is expected to remain as China’s main offshore market and the prime beneficiary of any US delisting.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://www.cnbc.com/2022/08/29/goldman-us-delisting-risk-for-chinese-adr-stocks-halves-after-deal.html

https://pcaobus.org/news-events/speeches/speech-detail/pcaob-chair-williams-statement-regarding-agreement-with-chinese-authorities

https://fortune.com/2022/08/29/goldman-sachs-delisting-barometer-us-china-stocks-audit-deal/

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Release- BioSig Strengthens Marketing and Sales Teams, Appoints National Account Executives to Scale Commercial Growth

Posted on August 30, 2022 by Admin

BioSig Strengthens Marketing and Sales Teams, Appoints National Account Executives to Scale Commercial Growth

News and Market Data on BioSig Technologies

August 30, 2022

Westport, CT, Aug. 30, 2022 (GLOBE NEWSWIRE) —

Company increases sales
efforts and strategy, adds new National Account Executives to accelerate
commercial growth

Strengthens marketing
team with new marketing and communications programs highlighting
competitive market advantage

BioSig Technologies, Inc. (NASDAQ: BSGM) (“BioSig” or the “Company”), a medical technology company advancing electrophysiology workflow by delivering greater intracardiac signal fidelity through its proprietary signal processing platform, today announced that it has expanded its marketing and sales teams to scale and support the national commercial rollout of its PURE EP™ System.

BioSig recently doubled the size of its sales organization, with plans of tripling it before the fourth quarter of this year. The Company appointed a new team of National Account Executives who will be strategically located throughout the U.S. to support and accelerate sales growth and adoption of the PURE EP™ System. The new sales executives will expand the Company’s growing commercial pipeline, as it continues to see an increase in medical centers entering into 60-day evaluation agreements for its novel signal processing technology.

Additionally, BioSig has expanded its marketing team, with investment in top-tier industry talent that will help drive and enhance the Company’s brand equity and awareness to better reflect the Company’s values. These new efforts include a fully integrated marketing and communications strategy that will support the commercial team and should provide the tools to increase BioSig’s competitive position in the market.

“As a growing enterprise, we are dedicated to sourcing, developing, and retaining the best talent for our company. I view our recent investment in our commercial, sales, and marketing teams as a complimentary catalyst for BioSig’s new commercial strategy and longterm growth. We are thrilled to have attracted these outstanding industry leaders, and look forward to leveraging their wealth of knowledge and expertise,” said Gray Fleming, Chief Commercialization Officer, BioSig Technologies, Inc.

About
BioSig Technologies
BioSig Technologies is a medical technology company commercializing a proprietary biomedical signal processing platform designed to improve signal fidelity and uncover the full range of ECG and intra-cardiac signals (www.biosig.com).

The Company’s first product, PURE EP™ System, is a novel signal processing and acquisition platform designed to extract advanced diagnostic and therapeutic data that enhances physician workflow and increases throughput. PURE EP™ was engineered to address the limitations of existing EP technologies by empowering physicians with superior signals and actionable insights. The Company is in a national commercial launch of the PURE EP™ System. The technology is in regular use in some of the country’s leading centers of excellence, including Mayo Clinic, and Texas Cardiac Arrhythmia Institute at St. David’s Medical Center.

Clinical data acquired by the PURE EP™ System in a multi-center study at centers of excellence including Texas Cardiac Arrhythmia Institute at St. David’s Medical Center was recently published in the Journal of Cardiovascular Electrophysiology and is available electronically with open access via the Wiley Online Library. Study results showed 93% consensus across the blinded reviewers with a 75% overall improvement in intracardiac signal quality and confidence in interpreting PURE EP(T.M.) signals over conventional sources.

Forward-looking
Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward- looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market conditions and the Company’s intended use of proceeds, (ii) the geographic, social and economic impact of COVID-19 on our ability to conduct our business and raise capital in the future when needed, (iii) our inability to manufacture our products and product candidates on a commercial scale on our own, or in collaboration with third parties; (iv) difficulties in obtaining financing on commercially reasonable terms; (v) changes in the size and nature of our competition; (vi) loss of one or more key executives or scientists; and (vii) difficulties in securing regulatory approval to market our products and product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Andrew Ballou

BioSig Technologies, Inc.

Vice President, Investor Relations

55 Greens Farms Road

Westport, CT 06880

aballou@biosigtech.com

203-409-5444, x133

Source: BioSig Technologies, Inc.

Released
August 30, 2022

Release – Baudax Bio Announces Pricing of $6.2 Million Public Offering

Posted on August 30, 2022 by Admin

Baudax Bio Announces Pricing of $6.2 Million Public Offering

Research, News, and Market Data on Baudax Bio

August 29, 2022 10:04pm EDT

MALVERN, Pa., Aug. 29, 2022 (GLOBE NEWSWIRE) — Baudax Bio, Inc. (the “Company” or “Baudax Bio”) (NASDAQ: BXRX), a pharmaceutical company focused on therapeutics for acute care settings, today announced the pricing of its public offering of an aggregate of 11,819,172 shares of its common stock (or pre-funded warrants in lieu thereof), together with accompanying common stock purchase warrants, at a public offering price of $0.525 per share (or pre-funded warrant) and accompanying warrants. Each share of common stock (or pre-funded warrant) was sold in the offering together with a Series A-1 warrant to purchase one share of common stock at an exercise price of $0.525 per share and a Series A-2 warrant to purchase one share of common stock at an exercise price of $0.525 per share. The Series A-1 warrants are exercisable immediately and will expire five years from the date of issuance, and the Series A-2 warrants are exercisable immediately and will expire thirteen months from the date of issuance. The closing of the offering is expected to occur on or about September 1, 2022, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $6.2 million. The Company intends to use the net proceeds from this offering for pipeline development activities and general corporate purposes.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-266499), which was declared effective by the Securities and Exchange Commission (the “SEC”) on August 29, 2022. The offering is being made only by means of a prospectus which is a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About
Baudax Bio

Baudax Bio is a pharmaceutical company focused on innovative products for acute care settings. Baudax Bio markets ANJESO®, the first and only 24-hour, non-opioid, intravenous (IV) COX-2 preferential non-steroidal anti-inflammatory (NSAID) for the management of moderate to severe pain. In addition to ANJESO®, the Company has a pipeline of other innovative pharmaceutical assets including two clinical-stage, novel neuromuscular blocking (NMBs) agents and a proprietary chemical reversal agent specific to these NMBs.

Forward
Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements reflect Baudax Bio’s expectations about its future performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate,” “believe,” “estimate,” “may,” “upcoming,” “plan,” “target,” “goal,” “intend” and “expect” and similar expressions, as they relate to Baudax Bio or its management, are intended to identify such forward-looking statements. Forward-looking statements may include, without limitation, statements regarding market conditions, the satisfaction of the closing conditions of the offering and the use of net proceeds from the offering. These forward-looking statements are based on information available to Baudax Bio as of the date of publication on this internet site and are subject to a number of risks, uncertainties, and other factors that could cause Baudax Bio’s performance to differ materially from those expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, among other things, risks related to market and other conditions, the ongoing economic and social consequences of the COVID-19 pandemic, Baudax Bio’s ability to advance its current product candidate pipeline through pre-clinical studies and clinical trials, Baudax Bio’s ability to raise future financing for continued development of its product candidates such as BX1000, BX2000 and BX3000, Baudax Bio’s ability to pay its debt and satisfy conditions necessary to access future tranches of debt, Baudax Bio’s ability to comply with the financial and other covenants under its credit facility, Baudax Bio’s ability to manage costs and execute on its operational and budget plans, Baudax Bio’s ability to achieve its financial goals; and Baudax Bio’s ability to obtain, maintain and successfully enforce adequate patent and other intellectual property protection. These forward-looking statements should be considered together with the risks and uncertainties that may affect Baudax Bio’s business and future results included in Baudax Bio’s filings with the Securities and Exchange Commission at www.sec.gov. These forward-looking statements are based on information currently available to Baudax Bio, and Baudax Bio assumes no obligation to update any forward-looking statements except as required by applicable law.

Investor Relations Contact:
Argot Partners
Sam Martin / Kaela Ilami
(212) 600-1902
baudaxbio@argotpartners.com

Media Contact:
Argot Partners
David Rosen
(212) 600-1902
david.rosen@argotpartners.com

Source: Baudax Bio, Inc.

Released
August 29, 2022

The Case for Old School Energy Stocks to Continue Their Climb

Posted on August 30, 2022 by Admin

Energy Sector’s Relative Strength Against The Market Is Looking Very Attractive

This article was republished with permission from Frank Talk, a CEO Blog by Frank Holmes
of U.S. Global Investors (GROW).
Find more of Frank’s articles here – Originally published August 29, 2022.

The University of Texas at Austin (UT), just a couple of hours up the road from our headquarters in San Antonio, may soon unseat Harvard as the wealthiest school in the U.S. How has it managed to do this? In a word: Oil.

At a time when large sovereign wealth funds are divesting from fossil fuels, and ESG (environmental, social and corporate goverance) investing has gone mainstream, the UT System has been the longtime owner and manager of 2.1 million acres of mineral-rich land, scattered across West Texas, that it leases out to as many as 250 producers, including ConocoPhillips.

Thanks to higher oil prices, the mineral rights to the land generate roughly $6 million every day, according to Bloomberg.

The UT System’s decision to continue participating in oil is in keeping with Texas’s close ties to the fossil fuels industry. The state produces more oil and gas (and wind power) than any other, a fact that policymakers are eager to protect. Last week, Texas moved to restrict state pension funds from investing in BlackRock, UBS Group, Credit Suisse and a number of other financial institutions that have been found to be “hostile” toward the energy sector.

But it’s more than just tradition. UT’s oil investments have been incredibly profitable and, by most accounts, will continue to be so as long as the energy crisis deepens and inflationary pressures keep prices elevated. The S&P 500 Energy Index is by far the top performing sector for the year, up nearly 50%, compared to the broader market, which is off by 12%.

A New Cycle Of Outperformance?

Looking ahead, energy stocks appear to be setting up for a new cycle of outperformance relative to the market. Take a look at the chart below, which shows the long-term ratio between the energy index and S&P 500. Technically, this may be the most attractive time to invest in energy since at least the beginning of the century.

Warren Buffett seems to agree. His company, Berkshire Hathaway, recently received regulatory approval to buy up to half of Houston-based Occidental Petroleum (OXY).

The disruptions of the past two years are believed to have triggered a readjustment in the energy market. In a just-released
report, Deloitte projects that oil and gas producers could report the highest-ever free cash flow (FCF), as much as $1.4 trillion, in 2022. The industry could also become debt-free by 2024.

Although oil prices in 2022 have been equivalent to those in 2013 and 2014, cash flows are currently three times higher thanks to capital expenditure discipline after years of underinvestment, Deloitte analysts say. U.S. shale producers, which generated negative cash flows in nine out of the last 10 years, are expected to report record FCF of $600 billion.

This comes as the U.S. is set to export a record amount of crude oil this year and next as the country captures market share away from Russia. Since Congress lifted the 40-year-old oil export ban in 2015, weekly exports have steadily risen above 4 million barrels a day, but earlier this month, exports exceeded 5 million barrels for the first time. According to Bloomberg, U.S. suppliers will likely be able to hold on to the increased market share since producers in other regions, including those in the North Sea and West Africa, have not been growing output as rapidly as American companies have.

California Bans Gas-Powered Vehicles By 2035. Will The
Infrastructure Be Ready By Then?

The backdrop to all of this, of course, is the expansion of ESG-minded investing and global financing of alternative fuels and renewable energy sources. Last week, California became the first state to approve a ban on the sale of new gas-powered vehicles by 2035 in favor of electric vehicles (EVs). This is a huge opportunity, as investment in the state’s notoriously spotty power grid will need to increase significantly.

New, more reliable EV charging stations will also need to be installed. Earlier this month, J.D. Power announced that Americans’ satisfaction in charging infrastructure is declining due to a growing number of “
inadequate”
and “non-functioning stations.”

“This lack of progress points to the need for improvement as EVs gain wider consumer acceptance because the shortage of public charging availability is the number one reason vehicle shoppers reject EVs,” the report reads.

Airlines And Shipping Companies Seeking Alternative Fuels

The airlines and container shipping industries are also seeking ways to achieve net-zero carbon emissions by 2050. One method being used by airlines is sustainable aviation fuel (SAF), which reportedly reduces CO2 emissions by as much as 80%. The liquid fuel is normally produced from a number of sources, including waste oil and fats, municipal waste and non-food crops.

SAF is currently much more expensive to make than traditional jet fuel, but several companies and groups are leading the effort to scale up the technology. Boeing is establishing a facility in Japan to begin researching and developing SAF, while World Energy, a Boston-based low-carbon solutions provider, is planning to convert a refinery in Houston to an SAF plant. Earlier this month, Alaska Airlines announced it had finalized an agreement to buy 185 million gallons of SAF from biofuel company Gevo over five years starting in 2026. Alaska also has announced a collaboration between Microsoft and start-up firm Twelve to advance production of E-Jet, an even more sustainable fuel that’s made from carbon dioxide.

As for shipping, wind propulsion is being touted as the “most impactful emissions reduction technology.” Today, 21 large ocean-going vessels already have wind-assist systems installed, according to the International Windship Association (IWSA), and by the end of 2023, this number could jump to nearly 50. Some of the biggest names in maritime shipping are involved in investing millions of dollars into wind
propulsion technology, including Cargill, Maersk and Mitsui. The IWSA calls the 2020s the “Decade of Wind Propulsion.”

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Source

Energy
Sector’s Relative Strength Against The Market Is Looking Very Attractive

US
Global Investors Disclaimer

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (06/30/22): ConocoPhillips, Occidental Petroleum Corp., The Boeing Group Co., Alaska Air Group Inc., AP Moller-Maersk A/S, Mitsui OSK Lines Ltd.

The S&P 500 Energy Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

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Catalyst Series – BioSig Technologies (BSGM)

Posted on August 30, 2022 by Admin

Introducing Catalyst – a new short-form video series that asks senior executives the questions investors want answered. Exclusively on Channelchek. Gray Fleming, BioSig Technologies’ Chief Commercial Officer answers questions regarding innovation in Electrophysiology, technological advancements that benefit physicians, clinical data of the company’s proprietary system, PURE EP, and software enhancements contributing to procedural timesaving. All in less than four minutes.

Research, News, and Advanced Market Data on BSGM

Grindrod Shipping (GRIN) – Grindrod receives takeover offer

Posted on August 30, 2022 by Admin

Tuesday, August 30, 2022

Grindrod Shipping (GRIN)
Grindrod receives takeover offer

Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in drybulk vessels predominantly in the handysize and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”), includes a Core Fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers. The Company also owns one medium range product tanker on bareboat charter. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”.

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

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

Taylor Maritime Investment Limited (TMI) proposed a $26 per share offer to acquire share capital of the Company not already owned by TMI. TMI owned 4,925,023, or 25.9% of the shares of Grindrod as of August 17, 2022.The offer consists of $21 in cash and a $5 special cash dividend to be paid to shareholders. Grindrod has entered into a confidentiality agreement and an exclusivity agreement with TMI whereas TMI has been granting a period to negotiate the proposed transaction. Grindrod has not agreed to terms of the proposal nor its willingness to be acquired.

The shares of Grindrod rose on the news but remain below spring trading levels and our price target. The shares of GRIN rose 16.73% to $23.93 per share on Monday, the day the deal was announced. The shares of GRIN traded as high as $28.98 on May 20, 2022 but have been weak since that date in response to declining shipping rates and overall market weakness. The company reported very strong financial results for the first and second quarters allowing the company to pay down debt, acquire a vessel, and raise the dividend. As a result, we have maintained our price target of $31 even as shipping rates have declined….

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

Vera Bradley Announces Second Quarter Fiscal Year 2023 Results

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Permex Petroleum (OILCF) Permex reports fiscal third quarter results

Orion Group Holdings Names Scott Thanisch as Executive Vice President and Chief Financial Officer

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BioSig Strengthens Marketing and Sales Teams, Appoints National Account Executives to Scale Commercial Growth

Baudax Bio Announces Pricing of $6.2 Million Public Offering

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Grindrod Shipping (GRIN)Grindrod receives takeover offer

Baudax Bio (BXRX)
Priced Common Offering; Reducing Price Target

Permex Petroleum (OILCF)
Permex reports fiscal third quarter results

Grindrod Shipping (GRIN)
Grindrod receives takeover offer