Page 101 – Channelchek

Biden’s Last-Minute Offshore Drilling Ban

Posted on January 7, 2025January 7, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Ban protects 625 million acres of federal waters from new oil and gas development
– Trump pledges reversal but faces legal hurdles without Congressional support
– Decision impacts East, West coasts and parts of Alaska while preserving current operations

President Joe Biden has announced a sweeping ban on new offshore oil and gas development across vast stretches of U.S. coastlines, creating a potential environmental legacy that his successor may struggle to dismantle. The executive action, protecting 625 million acres of ocean, represents a significant move in Biden’s climate agenda just weeks before the presidential transition.

The ban covers federal waters off the East and West coasts, the eastern Gulf of Mexico, and portions of Alaska’s northern Bering Sea. While largely symbolic, as it doesn’t affect areas with active drilling operations, the decision aligns with Biden’s broader environmental goals, including his commitment to conserve 30% of U.S. lands and waters by 2030.

The timing of this decision carries particular significance, as President-elect Donald Trump has explicitly stated his intention to reverse the ban immediately upon taking office. However, legal precedent suggests this may be more challenging than anticipated. A 2019 court ruling established that while the 70-year-old Outer Continental Shelf Lands Act grants presidents the authority to withdraw areas from drilling, it doesn’t provide the power to reverse such withdrawals without Congressional action.

Industry impact appears limited, as only 15% of U.S. oil production comes from federal offshore acreage, primarily in the Gulf of Mexico. This share has been declining over the past decade as onshore drilling, particularly in Texas and New Mexico, has transformed the United States into the world’s leading oil and gas producer.

The American Petroleum Institute has criticized the decision, arguing it threatens energy security and urging policymakers to reverse what they term a “politically motivated decision.” Conversely, environmental groups like Oceana celebrate the move as a victory for coastal communities and marine ecosystems.

The ban’s geographical scope notably includes areas where Trump himself had previously prohibited drilling during his re-election campaign, including waters off Florida, Georgia, South Carolina, North Carolina, and Virginia. This overlap highlights the bipartisan nature of coastal protection concerns, as many Republican-led coastal states have historically opposed offshore drilling due to its potential impact on tourism.

Biden’s decision invokes the memory of the 2010 Deepwater Horizon disaster, arguing that the minimal drilling potential in the protected areas doesn’t justify the public health and economic risks associated with future leasing. The administration emphasizes that the ban aligns with both environmental protection goals and practical risk assessment.

Looking ahead, the ban’s durability will likely depend on Congressional willingness to intervene, as well as potential legal challenges. The decision adds another layer to the complex relationship between federal energy policy and environmental protection, setting up a significant early test for the incoming Trump administration’s energy agenda.

Release – Bit Digital, Inc. Completes Transition from Foreign Private Issuer Status to Domestic Filer Status

Posted on January 6, 2025January 6, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on BTBT

NEW YORK, January 6, 2025 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York, announced today that as of January 1, 2025, it officially transitioned to domestic issuer status under U.S. securities regulations.

The change reflects the Company’s commitment to transparency, operational growth, U.S. market expectations, and streamlines its regulatory compliance framework.

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (“Annual Report”). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See “Safe Harbor Statement” below.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Release – Kratos Receives $1.45B MACH-TB 2.0 Contract Award

Posted on January 6, 2025January 6, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on KTOS

Contract Represents Single Largest Award in Kratos History

SAN DIEGO, Jan. 06, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, announced today that it has been awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1. The total value of this award, if all options are exercised over the five-year period, is $1.45B. The Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)) Test Resource Management Center (TRMC) established MACH-TB to support OUSD’s National Hypersonic Initiative 2.0 by creating an affordable flight test bed to rapidly increase hypersonic flight test capacity. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests. This will reduce overall hypersonic development risks and time and provide rapid transition of innovative hypersonic technologies to the warfighter.

George Rumford, Director of the Test Resource Management Center, said, “We are excited to continue the success of the MACH-TB program with this award. MACH-TB is an essential tool to accelerate science and technology experiments into next generation, leap-ahead hypersonic capabilities for our nation.”

“We are honored to be selected to be part of the MACH-TB 2.0 integrated team. The nation is at a critical point in the need for rapid and affordable hypersonic flight testing to quickly develop and field hypersonic technologies and the MACH-TB program is filling that need,” said Michael Johns, Senior Vice President of Kratos SRE.

Kratos was awarded the prime role in Task Area 1 Systems Engineering, Integration, and Testing (SEIT), to include integrated subscale, full-scale, and air launch services to address the need to affordably increase hypersonic flight test cadence. Kratos will lead a team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&T), mission planning and execution, and launch services. Key teammates on the Kratos team include Leidos, Rocket Lab, Koda Technologies, Corvid Technologies, Northwind, JRC, Stratolaunch, CFD Research, PAR Systems, University of Minnesota, and Purdue University among many others.

Dave Carter, President of Kratos Defense and Rocket Support Services Division, said, “With the recent successes of our low-cost Erinyes Hypersonic Flyer and Zeus Solid Rocket Motors, Kratos is a leader in the testing and fielding of hypersonic systems. We are very excited to bring this unmatched expertise to the MACH-TB 2.0 program.”

Eric DeMarco, President & CEO of Kratos Defense & Security Solutions, Inc., said, “Kratos is honored to receive the largest contract award in our company’s history, a testament of the value Kratos’ employees and team bring both to our Company and United States National Security. This programmatic milestone underscores our unwavering commitment to making upfront investments for rapidly developing, and being first to market with affordable, mission-critical solutions that meet the evolving needs of the warfighter. The MACH-TB 2.0 program award is an important element of Kratos’ future year organic growth forecast and expectation.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – DLH Awarded OASIS+ GWAC ID/IQ Contract Vehicle

Posted on January 6, 2025January 6, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on DLHC

ATLANTA, Jan. 06, 2025 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of digital transformation and cybersecurity, science research and development, and systems engineering and integration, today announced that it has been awarded a Governmentwide Acquisition Indefinite Delivery/Indefinite Quantity (“GWAC ID/IQ”) contract to deliver complex professional services and advanced capabilities to various federal agencies. The One Acquisition Solution for Integrated Services (“OASIS+”) contract is an expansive suite that may be used by all federal agencies. The Defense Health Agency, Centers for Disease Control and Prevention, and the Department of Defense are among the major users of this contracting vehicle.

This important award has been a long time in the making, with proposals originally submitted during June 2023. Through this contract vehicle, DLH won a position on all five of the domains for which it submitted a bid: Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services. DLH is one of many prime awardees of the OASIS+ contracts, which includes a base period of five years with one option period of five additional years. OASIS+ has no ceiling nor cap on awards.

“Securing positions on high-value, multiple award ID/IQ contracts is vital to our company’s long term organic growth strategy,” said Zach Parker, DLH President and CEO. “This award materially expands our addressable market and access to bids in important competition areas through which we can leverage our differentiating capabilities.”

About DLH

DLH (NASDAQ: DLHC), a Russell 2000 company, enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,800 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit www.DLHcorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the risk that we will not realize the anticipated benefits of acquisitions (including anticipated future financial performance and results); the diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations; the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.

Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements, except as may be required by law.

CONTACTS:
INVESTOR RELATIONS
Contact: Chris Witty
Phone: 646-438-9385
Email: cwitty@darrowir.com

Release – V2X Announces Interest Expense Savings Through Successful Term Loan Repricing

Posted on January 6, 2025January 6, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on VVX

RESTON, Va., Jan. 6, 2025 /PRNewswire/ — V2X, Inc., (NYSE: VVX), announces it has successfully repriced its $900 million First Lien Term Loan at 2.25%.

“I’m pleased to announce the successful repricing of our First Lien Term Loan, which is expected to generate notable interest expense savings over the next several years and enhance our overall cost of capital,” said Shawn Mural, Senior Vice President and Chief Financial Officer at V2X. “This repricing further improves our annual interest margin by 50 basis points and represents 135 basis points of savings that V2X has achieved on its First Lien Term Loan since October 2023. This outcome is a testament to the strength of our business and is another positive step in our efforts to increase shareholder value.”

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
IR@goV2X.com
719-637-5773

Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
Angelica.Deoudes@goV2X.com
571-338-5195

View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-announces-interest-expense-savings-through-successful-term-loan-repricing-302342409.html

SOURCE V2X, Inc.

China’s Antimony Export Ban Sends Global Prices Soaring: Critical Mineral Markets Face New Reality

Posted on January 6, 2025January 6, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– Antimony prices surge 250% in 2024, reaching $40,000 per metric ton
– China’s export ban disrupts global supply chains, controlling 50% of production
– US scrambles to diversify sources amid critical minerals trade

The global antimony market faces unprecedented pressure as China’s recent export ban threatens to push prices to record highs. The critical mineral, essential for semiconductors and military applications, has already seen a dramatic 250% price increase in 2024, with traders anticipating further surges beyond $40,000 per metric ton.

China’s December announcement banning antimony exports to the United States marks a significant shift in the critical minerals landscape. As the world’s dominant producer, accounting for nearly 50% of global supplies estimated at 83,000 tons annually, China’s move has created immediate market disruption and supply uncertainty.

European traders report transactions reaching $40,000 per metric ton in Rotterdam, with non-Chinese sellers positioned to capitalize on the supply squeeze. This price surge reflects both immediate market reactions and deeper concerns about long-term supply chain resilience.

The impact of China’s export restrictions extends beyond immediate price effects, signaling a broader strategic shift in global mineral markets. Industry experts suggest this move aligns with China’s long-term strategy to consolidate control over critical mineral production and processing. This development has significant implications for global technology and defense sectors, where antimony plays a crucial role in semiconductor manufacturing and military applications.

The U.S. faces particular challenges in responding to the ban. While efforts to diversify supply chains away from China were already underway, with increased sourcing from Southeast Asia, filling the immediate supply gap presents significant challenges. Industry experts, including Ellie Saklatvala from Argus, question the feasibility of finding adequate alternative sources in the near term.

The situation has sparked urgent discussions about supply chain resilience and national security implications. U.S. policymakers and industry leaders are accelerating efforts to develop domestic production capabilities and secure alternative supply sources. However, establishing new supply chains and processing facilities requires significant time and investment, leaving the market vulnerable to short-term price volatility.

China’s export restrictions, which also include gallium and germanium, though these have less immediate impact due to previously reduced U.S. purchasing, signal a potentially broader strategy of using critical minerals as leverage in international trade relations. Market analysts are closely monitoring other critical minerals, with some suggesting bismuth and manganese could be targets for future export controls.

The broader strategy suggests China’s intent to consolidate mineral production internally, raising concerns about potential future restrictions on other critical minerals. As Theo D. Ruas of Indium Corporation notes, “Being self-sufficient must be a short term goal for the U.S. government.” This emphasis on self-sufficiency reflects growing recognition of the vulnerabilities inherent in concentrated supply chains for critical minerals.

Looking ahead, market participants expect continued price volatility as supply chains adjust to the new reality. The combination of actual supply constraints and market psychology suggests sustained upward pressure on prices throughout 2025, with potential ripple effects across technology and defense supply chains globally.

Resources Connection (RGP) – Reports 2Q25 Results

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

Resources Connection, Inc. provides agile consulting services in North America, Europe, and the Asia Pacific. The company offers finance and accounting services, including process transformation and optimization, financial reporting and analysis, technical and operational accounting, merger and acquisition due diligence and integration, audit readiness, preparation and response, implementation of new accounting standards, and remediation support. It also provides information management services, such as program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic communications, and restructuring services; and corporate governance, risk, and compliance management services, such as contract and regulatory compliance, enterprise risk management, internal controls management, and operation and information technology (IT) audits. Further, it provides supply chain management services comprising strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and human capital services, including change management, organization development and effectiveness, compensation and incentive plan strategies, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategies and analytics. It also provides policyIQ, a proprietary cloud-based governance, risk, and compliance software application. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

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

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

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

2Q25 Results. RGP exceeded expectations in 2Q25 with sequential improvement in revenue, gross margin, run rate SG&A, and adjusted EBITDA. Revenue totaled $145.6 million, up 6.3% sequentially (up 5% on a constant currency basis), but fell 10.7% (down 13.2% constant currency) y-o-y. Gross margin of 38.5% was up 200 bp sequentially, and nearly flat with the prior year’s 38.9%. RGP reported adjusted EPS of $0.18 in 2Q25 compared to $0.25 a year ago.

Green Shoots. RGP is seeing early signs of success in its new strategy, although the market remains choppy. Management highlighted cross selling opportunities and success on pipeline activities and client dialogue this quarter. Management is cautiously optimistic the new calendar year will bring a stronger demand environment.

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*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.

NN, Inc. (NNBR) – New ABL Facility

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

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

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

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

New Facility. As part of the ongoing strategic transformation, NN entered into a new ABL facility. The new agreement provides NN with a $50 million revolving credit facility, with proceeds used to repay amounts outstanding under the previous ABL. The new agreement eliminates liquidity covenants under the previous ABL. We view the new ABL as a positive.

Improved Terms. The new ABL comes with improved terms, an indicator of the markets growing confidence in NN. The maturity date has been pushed out until December 2029, assuming the term loan is refinanced. The fee structure is lower across the board. And, most significantly, the interest rate should be lower. Based on the current one-month SOFR rate, the interest rate would be approximately 6%, down from approximately 7.2% at the end of September.

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

MustGrow Biologics Corp. (MGROF) – Completes Acquistion of NexusBioAg

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

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

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

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

Acquisition Finalized. MustGrow announced the execution and closing of an Asset Purchase Agreement of assets representing NexusBioAg. The purchase price consists of (i) a deferred cash payment of approximately CAD$1,662,000, subject to adjustment in accordance with the terms of the APA; and (ii) earn-out payments equal to a specified percentage amount of gross margin on certain itemized products sold by MGRO in 2025 and 2026.

Financial Impact. Based on historical sales figures, management noted that NexusBioAg brings roughly CAD$15-$20 million of revenue annually to MustGrow and expects this to continue into 2025 and 2026. While no comment was made about the NexusBioAg’s margins, the expectation is that the Nexus side will be cashflow breakeven for 2025 as revenue stays the course. EBITDA is expected to be positive by 2026.

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

Euroseas (ESEA) – Intention to Spin Off Older Vessels into a Separate Company

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

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

Hans Baldau, Research Associate, Noble Capital Markets, Inc.

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

Spin-off of older vessels into a new entity. Euroseas announced that it intends to spin off the company’s three older vessels into a separate company, Euroholdings Ltd., which has applied for a listing on the NASDAQ Capital Market. The three unlevered vessels include M/V Aegean Express, M/V Diamantis P, and the M/V Joanna. In exchange for contributing the three vessels, Euroseas will receive 100% of the shares of Euroholdings, which will then be distributed to its shareholders.

Investor conference call. Euroseas does not expect the spin-off to have any impact on its growth strategy or dividend policy and expects to continue modernizing its fleet. Management believes Euroholding’s valuation will be supported by the company’s fleet profile, capital structure, and higher intended dividend distribution policy. Euroseas management will host a conference call and webcast to discuss the spin-off on January 7 at 9:00 a.m. ET.

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

E.W. Scripps (SSP) – Executing on Its Asset Monetization Strategy

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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

Asset Sale. On December 30, the company completed the sale of its San Diego Tower sites to K2 Towers for $20 million and entered into tower space leases with the buyer for $1 million annually. We view the sale as a favorable step toward the company’s asset monetization strategy. The proceeds from the sales is expected to be used to pare down debt.

Asset monetization. Prior to the asset sale announcement, management highlighted that it had letters of intent for roughly $60 million in real estate transactions and is still shopping Bounce, a leading Over The Air (OTA) broadcast network. Notably, we believe Bounce could be worth more than $150 million. We believe that a sale of Bounce could be announced in the first half 2025.

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

Cocrystal Pharma (COCP) – Influenza Trial To Extend Enrollment, Norovirus Trial Data Expected in 1H25

Posted on January 6, 2025January 6, 2025 by cpereira@noblefcm.com

Monday, January 06, 2025

Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of influenza viruses, coronaviruses (including SARS-CoV-2), hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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

Phase 2a Trial Enrollment To Be Extended. Cocrystal announced plans to extend enrollment for the Phase 2a clinical trial testing its influenza drug, CC-42344. The trial was designed to infect healthy volunteers with a pharmaceutically prepared H3N2 strain of influenza and then test the drug’s effects against the infection. However, the rate of infection was lower than anticipated, so the effects could not be tested.

Volunteers Did Not Develop Robust Influenza Infections. The trial administered influenza virus to healthy volunteers as planned, but there was an unexpectedly low infection rate. The subjects did not have the influenza measures needed to test CC-42344 efficacy. Cocrystal plans to submit a protocol amendment to the UK’s MHPA to extend the enrollment in the study.

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Biden Blocks $14 Billion US Steel Sale to Nippon Steel Over National Security Concerns

Posted on January 3, 2025January 3, 2025 by slightbourne@noblecapitalmarkets.com

Key Points:
– President Biden blocked the $14 billion sale of US Steel to Nippon Steel, citing national security concerns.
– US Steel and Nippon Steel criticized the decision as political and suggested they may pursue legal action.
– The move highlights bipartisan resistance to foreign acquisitions in critical American industries.

In a decision underscoring Washington’s protectionist stance, President Joe Biden on Friday blocked the $14 billion acquisition of Pittsburgh-based US Steel (X) by Japan’s Nippon Steel, citing national security concerns. The move has created significant uncertainty for the iconic 124-year-old steelmaker, whose shares fell more than 7% in morning trading following the announcement.

President Biden stated that the acquisition would “place one of America’s largest steel producers under foreign control and create risk for our national security and critical supply chains.” This rejection aligns with longstanding concerns over foreign influence on critical U.S. industries, even as the Japanese buyer had committed to retaining the US Steel name, headquarters in Pittsburgh, and making significant investments in its plants.

The decision came after months of review by the Committee on Foreign Investment in the United States (CFIUS), which could not reach a consensus. Biden’s executive order now requires the companies to abandon the deal within 30 days unless extended by CFIUS.

The deal faced fierce opposition from the United Steelworkers union, which argued that the acquisition would harm domestic workers and the nation’s steel production capabilities. Biden echoed this sentiment, emphasizing the need for domestic steelmakers to safeguard national interests.

“We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden stated.

In a joint statement, US Steel and Nippon Steel criticized the decision as a “political” move unsupported by credible national security concerns. They hinted at pursuing legal action, stating, “We are left with no choice but to take all appropriate action to protect our legal rights.”

The companies also highlighted their commitments to new investments and ensuring key directors and executives would remain U.S. citizens. They argued that their pledges would strengthen, not undermine, national security.

This decision reflects a growing trend of economic nationalism in U.S. policy. Both Biden and President-elect Donald Trump opposed the deal, signaling bipartisan resistance to foreign acquisitions of critical American industries.

Analysts suggest the decision could deter foreign companies from investing in the U.S. “It’s been a highly politicized process,” said Josh Spoores, CRU North American steel analyst, who pointed out that the decision sends a chilling message to allied countries.

It remains unclear if US Steel will seek a new buyer or pivot its strategy. The rejection is a significant setback after the company spent much of 2024 lobbying for approval. Meanwhile, the steelmaker must navigate the challenges of remaining competitive in a volatile industry.

The Biden administration’s stance may leave long-lasting implications on U.S.-foreign trade relations, especially as protectionist policies continue to shape economic strategy.