Rat’s Rant – The Golden Girls Edition

58

What’s Hot – EGR, MXR, CGL, DYL, SPQ, NET, NCZ, PFT, JXT, BNL, BOT, AGH, OLL & TMT
 
What’s Not – DXB

What’s Doing – MR1 (New IPO listing @ 11am – they are in the business of the 4 letter dirty word that doesn’t start with F but does start with C)  

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Good Afternoon,

Did you know that on this day in 1985 the Golden Girls made their television debut.The popular American sitcom about 4 single and older women living together in a Miami, Florida house ran for 6 seasons on NBC.

The main characters in the show were played by Beatrice Arthur, Estelle Getty, Rue McClanahan, and Betty White, each of whom won the Emmys for their acting in the show.

That show reminds me of Noosa for some reason………
 

What’s Hot  

EGR – EcoGraf Limited today closed up 50% to finish at 12.5c on $3.4m stock traded. There was no news out today but they were issued a speeding ticket after lunch and claimed they were not aware of any unknown information, which is what they all say usually.
It’s not one I follow nor care too much about but some details on what they do are listed are listed below for those of you that do:

About EcoGraf

Founded on a commitment to innovation and sustainability, EcoGraf is building a vertically integrated business to produce high purity graphite for the lithium-ion battery market.

The new state-of-the-art processing facility in Western Australia will manufacture spherical graphite products for export to Asia, Europe and North America using a superior, environmentally responsible purification technology to provide customers with sustainably produced, high performance battery anode graphite.

In time the battery graphite production base will be expanded to include additional facilities in Europe and North America to support the global transition to clean, renewable energy in the coming decade. In addition, the Company’s breakthrough recovery of graphite from recycled batteries using its EcoGrafTM process will enable the recycling industry to reduce battery waste and use recycled graphite to improve battery lifecycle efficiency.

To complement the battery graphite operations, EcoGraf is also developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, which will supply additional feedstock for the spherical graphite processing facilities and provide customers with a long term supply of high quality graphite products for industrial applications such as refractories, recarburisers and lubricants.

She’s been so busy lately they have now given her a gun !!!

MXR – Maximus Resources Limited today closed up 43% to finish at 21.5c on $5.3m stock traded. There was no news out today and nor has there been since late last week when they announced they completed a strategic placement to raise $3.18m to accelerate drilling at it’s Spargoville Projects, this included a $1m investment made by the great Tolga Kumova (to my house) which you would have read about in here last week.

Funds raised from the placement will allow the company to accelerate exploration programmes at prospects around the historic high-grade Wattle Dam gold mine, following recent positive drill results of 3.0m @ 83.3g/t Au from 25m, including 1m @ 245g/t Au. 

I have met young Tolga (he’s older than me & much nicer too) and he might even read this rag too.

I must admit big fella I have followed you into a few trades recently and sadly this was one that I have missed but I am pretty excited about a few others we are on that may or may not currently be in a trading halt.  

He’s a smart guy, humble bloke, eats bhAGS for breakfast and knows a good rag when he reads one. 

Some details on last weeks news are listed below:

Maximus completes strategic placement to raise $3.18 Million to accelerate drilling at the Spargoville Projects

$3.18M placement, strongly supported by institutional, sophisticated, and existing shareholders

$1 million cornerstone investment by Tolga Kumova, representing ~9% of the Company

Directors commitment of $180,000 as part of the placement

Maximus to bring forward exploration drilling programme.
Maximus Resources Limited is pleased to announce it has completed a strongly supported bookbuild to raise approximately $3.18 million (before costs) via a placement of 31,578,947 fully paid ordinary shares (shares) to institutional, sophisticated and existing shareholders (the placement).

Funds raised from the placement will allow the Company to accelerate exploration programmes at prospects around the historic high-grade Wattle Dam Gold Mine, following recent positive drill results of 3.0m @ 83.3g/t Au from 25m, including 1m @ 245g/t Au1.

The placement funds raised will also be used to complete further exploration across the Company’s Spargoville tenements, the completion of studies required for the Company’s Larkinville and Eagles Nest resources approved for mining and for general working capital purposes.

The completion of the strategic placement provides funds to support a systematic exploration programme in Australia’s premier gold and nickel region. The Company has identified multiple gold and nickel exploration targets across a significant land holding, which has been under-capitalised and relatively under-explored until now.

Commenting on the successful raise, Maximus’ Managing Director, Tim Wither said:

“The Board is delighted at the strong support that has been shown by existing shareholders and it welcomes all the new shareholders to the Company. The placement represents a major endorsement for Maximus’ projects, the management teams’ technical capabilities and importantly the clear strategy of generating and drill testing a pipeline of targets capable of realising high-grade world-class discoveries.

To attract several high calibre resource investors to the Company underpins the unrealised value of the Company’s assets at Wattle Dam and across the Spargoville tenements. We are excited by the opportunities the new capital provides in allowing aggressive exploration in and around Wattle Dam, in conjunction with developing and growing the current resources at Redback, Larkinville and Eagles Nest.”

CGL – The Citadel Group Limited today closed up 40% to finish at $5.57 on $57m stock traded. The reason why they were up today was because they have inked an acquisition agreement with Pacific Equity Partners (PEP)-owned Pacific Group Bidco worth $503 million or $5.70c per share after receiving an unsolicited approach.

Under the terms of the unsolicited approach, PEP would acquire 100 per cent of the equity interests of Citadel for $5.70 per share in cash, reduced to the extent of any special dividend — represents a premium of 43.2 per cent to the last closing price and not a bad deal for CGL shareholders. 

I wonder if they will flip it……those bloody PE funds never give me any orders !!!! 

Some details on today’s news are listed below:

Leave it for the PE flippers on this list 

DYL – Deep Yellow Limited today closed up 35% to finish at 35c on $710k stock traded. There was no news out today and nor has there been since last week when they announced drilling had recommenced on the company’s Tumas Uranium Project, located on EPL 3496 over in Namibia.

It’s not one I follow but I do like the Uranium thematic and thankfully I already have some exposure without heading over to Africa again.   

Some details on last weeks news are listed below:

DRILLING RECOMMENCES ON TUMAS PROJECT, NAMIBIA

Deep Yellow Limited is pleased to advise drilling has recommenced on the Company’s Tumas Project (Project), located on EPL 3496 in Namibia.

The Company is currently completing a Pre-Feasibility Study (PFS) for the Project. Results and samples collected in the drilling program will be key to an anticipated future Feasibility Study (FS).

The drilling program will involve drilling approximately 90 RC holes for 1,800m commencing 7 September and is expected to be completed during October 2020. This work has multi-facet objectives including:

Collection of a minimum of 1,000kg RC drill chips samples for further metallurgical test work in view of the recently announced determination that RC chips were suitable for future metallurgical testing in place of the more expensive diamond core option;

In addition to the routine downhole gamma logging, also carry out downhole imagery scanning using optical borehole scanner (OPTV) technology to differentiate lithologies in particular the coarse pebble/conglomerate grain size distribution; andConsolidation of the resource base relevant to the Tumas PFS area of influence.

SPQ – Superior Resources Limited today closed up 29% to finish at 0.9c on $530k stock traded. The reason why they were up today was because they announced the return of initial assays results from the resource drilling program at the Steam Engine Gold Deposit.

The deposit is located 210kms west of Townsville and has produced consistent high-grade mineralisation at both the Steam Engine and Eastern Ridge Lodes.

The Mineral Resource Estimate will be revised and released to the market shortly after the receipt of all assays, followed by results of the scoping study.

So sounds like there is plenty going on for these guys and good luck to those of you that own a few.  

Some details on today’s news are listed below:

Strong drill results reinforce Steam Engine Mineral Resource 

HIGHLIGHTS:
 

First assays from Scoping Study Resource Drilling Program deliver consistent high grade, nearsurface results at Steam Engine and Eastern Ridge Lodes, including: 

6m @ 4.4 g/t Au from 30m (SRC020) 
incl 1m @ 9.8 g/t Au from 30m 
8m @ 2.6 g/t Au from 29m (SRC013) 
incl 2m @ 7.0 g/t Au from 33m 
8m @ 3.1 g/t Au from 17m (SRC018) 
incl 3m @ 5.7 g/t Au from 18m 
9m @ 3.1 g/t Au from 30m (SRC015) 
incl 3m @ 4.1 g/t Au from 33m 
15m @ 2.3 g/t Au from 40m (SRC024) 
incl 6m @ 4.1 g/t Au from 47m 
5m @ 3.2 g/t Au from 14m (SRC007) 
incl 2m @ 6.0 g/t Au from 16m 
7m @ 3.0 g/t Au from 62m (SRC026) 
incl 3m @ 5.0 g/t Au from 63m 
6m @ 3.6 g/t Au from 27m (SRC019) 
13m @ 2.0 g/t Au from 29m (SRC022) 
incl 4m @ 3.3 g/t Au from 30m 
16m @ 1.8 g/t Au from 18m (SRC032) 
incl 5m @ 3.4 g/t Au from 24m 

All holes returned significant gold mineralisation from Steam Engine and Eastern Ridge Lodes, reinforcing confidence in the Mineral Resource. 

Mineral Resource Estimate will be revised and released to market shortly after receipt of all assays, followed by results of the Scoping Study. 

Resource drilling program focussed on only 30% of at least 2.5 kms of outcropping lode strike and only to shallow depths. Mineralisation remains open along strike and down dip. 

Upcoming revised Mineral Resource Estimate expected to be upgraded from current 1.27 million tonnes @ 2.3 g/t gold (approximately 94,000 ounces) resource. 
Superior Resources Limited is pleased to announce the return of initial assays from the Resource Drilling Program at the Steam Engine Gold Deposit, located approximately 210 kilometers west of Townsville, Queensland. 

The drilling has produced consistent high-grade mineralisation at both the Steam Engine and Eastern Ridge Lodes and confirms the current mineralisation model.

The first assays received are from 28 shallow reverse circulation (RC) drill holes for a total of 1,375 metres. To date, drilling at Steam Engine has reached 3,361 metres from 71 drill holes, which includes 65 RC holes for 3,059 metres and 6 diamond core holes for 302 metres.

A combined total of approximately 3,500 metres of RC and diamond drilling is planned under the current extended program.

Commenting on the results, Managing Director, Peter Hwang said:

“With this initial batch of assays all returning excellent gold mineralisation from near surface, the near-term production potential of Steam Engine continues to build. The assay results further strengthen the current Mineral Resource and boosts our confidence for a positive Scoping Study. Based on visual observations during the drilling, we extended the program to give greater emphasis on expanding the near-surface Mineral Resource with holes along strike from the currently modelled Resource. So, our program is both a resource drilling program for the purpose of the Scoping Study and an exploratory program aimed at expanding the Mineral Resource.”

“With mineralisation open along strike and down dip at both the Steam Engine and Eastern Ridge Lodes, there is obvious potential for growth. The current Mineral Resource Estimate is based on only 30 percent of at least 2.5 kilometres of outcropping lode strike and only includes near-surface mineralisation.”

“Although the first batch of assays have taken longer than expected, we should see a regular flow of results going forward. In the meantime, we look forward to releasing a revised Mineral Resource Estimate after receipt of all assays and the results of a Scoping Study shortly afterwards.”

NET – NetLinkz Limited today closed up 27% to finish at 8.5c on $4.8m stock traded. There was no news out today and nor has there been since last week when they announced that they strengthened their board and management team, certainly in my opinion anyway.  

They appointed Australia’s former Ambassador to China and former director of Fortescue Mining Group Dr Geoff Raby who joined NetLinkz’s Board to provide important representation in the Chinese market.

Previously to that they announced revenue of $5.25m, up 846% on the prior year and have forecasted customer receipts for the 2020 calendar year of $15m.

NetLinkz announced its entry into India and other markets through partnership with technology solutions provider Natsoft and they may or may not be talking to my Indian client Bhavdip who has more connections in India than Kapil Dev or even the great Veer Rat Kholi. 

I do know management, I have clients that own it including my mate the Skinny Conductor and I’m hoping to give you a far more detailed note in the What’s Doing section in the not too distant future.   
 
Some details on their full report are listed below:

Appendix 4E Preliminary Final Report and Commentary

Virtual Secure Network is pleased to provide its Appendix 4E Preliminary Financial Report (unaudited) for the financial year ended 30 June 2020, together with the following commentary.

Netlinkz is pleased to report very strong revenue growth for the financial year ended 30 June 2020.

The Company has undergone a significant transformation during FY2020 and has established a solid platform that underpins continued growth and evolution into a leading global VSN company for blue chip corporations and government. Key developments for FY2020 include:

Total revenue from customers of $5.25m, up 846% on the prior year (FY2019: $0.56m);

Other income of $1.01m (FY2019: $1.11m) included $0.90 million from a R&D Tax Incentive refund;

The net loss of $22.76m includes convertible note, debt settlement, financing and restructuring costs of $12.01m;

Establishing a VSN for the large and sophisticated Chinese market through its IOT Lab in Beijing;

The establishment of iLinkAll with iSoftStone as its go-to-market offering in China to sell the VSN;

Commencement of sales of the VSN in January 2020;

The acquisition of local reseller and system integrator SSI Pacific.
Subsequent to the end of the financial year, Netlinkz’s transformation has continued with further growth drivers put in place or planned, including:

Establishing IOT Labs in India and Singapore to develop the VSN market for ASEAN in partnership with Natsoft;

Refinancing of debt facilities with the proposed issue of convertible notes to raise up to $18m, subject to shareholder approval, investor appetite and the capital requirements of the business, with the funds to be deployed to repay debt and fund Netlinkz’s continue growth and deliver increased sales;

The planned establishment of an IOT Lab in Europe to develop VSNs for that market;SSI has successfully extended existing contracts as well as winning new business under Netlinkz’s ownership.

NCZ – New Century Resources Limited today closed up 26% to finish at 14.5c on $950k stock traded. There was no news out today and nor has there been since last week when they announced that they elected to not proceed with their binding offer submission so your guess is as good as mine. 

Some details on last week’s news are listed below:

Update on the Potential Goro Transaction:

New Century Elects Not to Proceed with Binding Offer Submission 

New Century Resources Limited advises the Company has elected not to proceed with submission of a binding offer for the potential acquisition of 95% of the issued shares in Vale Nouvelle-Calédonie S.A.S. (VNC), which owns and operates the Goro Nickel & Cobalt Mine in New Caledonia (Goro).

Since announcement of exclusivity regarding the potential acquisition on the 26th May 2020, New Century has been engaged in an extensive process of both asset due diligence and commercial negotiations with Vale, the French State and other stakeholders regarding suitable funding of the current simplification plan capex and long term general working capital requirements.

In addition, the Company has been engaging with the governing body of the Southern Province of New Caledonia regarding ongoing environmental bonding requirements for Goro and with minority VNC shareholder Société de Participation Minière du Sud Calédonien S.A.S (SPMSC) regarding the future equity structure of VNC.

While New Century’s due diligence and business analysis is now complete, which indicated strong potential for sustainable long-term operations at Goro, negotiations with various stakeholders have not been able to generate a funding package and equity structure for VNC which adequately accommodates a suitable risk/reward scenario for shareholders of New Century Resources.

As a result, the Board of New Century has elected not to submit a binding offer for Goro within the current exclusivity period and this exclusivity has now lapsed. The Board of New Century expresses its appreciation to all stakeholders in their efforts to work toward a potential successful transaction outcome, and wishes Vale and the entire VNC team every success in their endeavours to create a sustainable long-term future for the Goro operation.

PFT – Pure Foods Tasmania Limited today closed up 22% to finish at 76.5c on $1.6m stock traded. There was no news out today and nor has there been since last week when they announced the acquisition of the Daly Potato.

The Daly’s (not the long John Daly’s just FYI) have been growing potatoes on the pristine South-East Coast of Tasmania for over 30 years and I may or may not have sampled a few when I bought my place down their late last year in Bernie. 

I do have clients that own the stock, I have met management through my broking mate Feel my Leg and I’m pleased to see the believers or long term holders beat the flippers yet again !!! 

If you read this newsletter you would have seen I spoke about them a couple months 

ago prior to them listing.

You can find the article here if you did miss it. 

https://bit.ly/2KQFWhf 

Some details on last weeks news are listed below:

Acquisition of Daly Potato Company

Pure Foods Tasmania Limited is pleased to announce it has agreed to buy the business and assets of Daly Potato Company Pty Ltd (DPC) for $1.8M with a mixture of cash and shares, subject to working capital adjustments.

PFT has signed a binding Heads of Agreement (HOA), subject to a number of conditions including final due diligence, PFT entering into a potato supply agreement and other customary conditions. PFT has also agreed to additional investment to support ongoing product development and commensurate capital expenditure.

“This is a great opportunity for PFT shareholders as it cements our strategy of moving into new category’s” PFT’s Managing Director, Michael Cooper, commented. “As stated in previous updates, meal solutions is a $1Billion market in Australia alone and we also see a large opportunity to support our Asian customers with unique 100% Tasmanian-based meal solutions.

This acquisition also brings many synergies including customers, administration and supply chain benefits as well a range of new products that will be added to our new online store for our loyal consumers to enjoy “.

Transaction highlights

The deal is structured as follows:

Shares to the value of $1.4M will be escrowed in three equal tranches – one third to be available for release in intervals of 12 months; 24 months and 36 months;

Based on a share price of 61.4c, being the 14-day VWAP up to and including 7 September 2020, PFT will issue DPC 2,279,608 shares, representing 4.44% of the total number of PFT shares on issue;

PFT will take on ~$300,000 of debt currently on DPC’s balance sheet and relating in the main to plant and equipment and pay the Daly family $100,000 in cash on settlement;

Susie Daly has been offered a minimum three-year employment contract;

Susie and Gerard Daly or their related entity have agreed a potato supply contract with an agreed price, for five years with a five-year option to extend and with price increases subject to the CPI (but with no negative adjustments);

Additional investment in plant and machinery, is required to support the launch of a number of new products. The immediate cost is estimated to be around $250,000.


The acquisition meets a number of key metrics for PFT and merges two businesses that are both strategically and operationally aligned and service the same core retail customers. Notably:
 

The DPC business recorded $2M in sales revenue in FY20;

It adds new products to PFT’s product range, including vegan options;

PFT benefits from an array of new products that are planned to be launched nationally this financial year, as well as a portfolio of new products that are in the development stage. Notably, mayonnaise is produced in-house for all Daly products and potentially is the basis for a range of new premium mayonnaise-based products;

There is also numerous new product development opportunities through complementary meal solutions using our full suite of products;

DPC doesn’t currently have an export licence and PFT believes there is strong international demand for DPC’s products, particularly in Asia and will seek to attain an export licence for DPC;

Significant capital investment is planned over the next several years with a view to increasing efficiencies, boosting productivity, and growing margins. DPC is expected to be EPS accretive from FY22 and onwards.

Never ask Jon eh……….he loves it male or female !!!

JXT – Jaxsta Limited today closed up 21% to finish at 10c on $1.5m stock traded. The reason why I presume they were up again today was because last week they announced a strategic five-year commercial agreement with Songtradr to provide a bespoke tech-enabled revenue identification and collection service for Jaxsta Pro users identifying missing performer income from sound recordings (“Neighbouring Rights”).

I know Jackie the CEO and my broking mate who we will call Hank Owen to keep him anonymous he has been backing her and big Geoffrey for quite some time, so nice to see another long term believer being rewarded.   

Some details on what they do are listed below:

About Jaxsta 

Jaxsta is the music industry’s global music technology company using data to solve an industry-wide need for official data. Digital music has seen an end to the printed “jacket” that once came with a physical CD or LP – where music enthusiasts and professionals would look to discover the names of those responsible for the music they love.

The go-to authoritative source of music information, Jaxsta is collecting music metadata from major and independent record labels, publishers, royalty agencies and industry associations across the globe. The data is de-duplicated, cross-referenced, deep-linked and then made available online within a multi-functional, ever-evolving platform.

The Company’s core platform, Jaxsta.com, went live in June 2019 and its B2B subscription-based service, Jaxsta Pro Beta , launched in November 2019. Jaxsta Pro Beta includes features normally only available to paid users, which are now being offered for free for the rest of 2020. The Company’s head office is in Sydney, with representatives in New York, London and Los Angeles.

BNL – Big Star Helium Limited today closed up another 19% to finish at 3.2c on $1.3m stock traded. The reason why they were up today was because they announced they had acquired an additional 5,356 acres in Colorado, USA since the last leasing update released 22 June 2020.

Sounds bullish to me, with results still due from drilling……hmmmmmm 

Those that read this would know I have clients that own it, must admit I sold half today for some of them but we paid 1c for our stock and you can’t go broke taking Bhags off tables !!!

Trust me……Bhag it up when you can folks and always take them from the table when you can.   

Some details on today’s news are listed below:

LEASING UPDATE 

Additional 5,356 net acres leased

Blue Star’s total lease position now 129,561 gross (73,486 net) acres
Blue Star Helium Ltd is pleased to announce it has acquired an additional 5,356 net acres in Colorado, USA since the last leasing update released 22 June 2020. The additional acreage was secured by new leases from private mineral owners.

Blue Star’s current lease position is now 129,561 gross acres (73,486 net), of which 69,378 net acres have been verified and 4,108 net acres are subject to verification.

Blue Star’s Managing Director Joanne Kendrick said: “The acquisition of an additional 5,356 net acres further consolidates Blue Star’s land position in the highly prospective Las Animas region, where we now hold about 130,000 gross acres across 11 prospects and leads.

“We have several exciting months ahead of us as we progress to our drilling program in Q4 this year, and we are working hard to add more prospects into that drilling program.”

BOT – Botanix Pharmaceuticals Limited today closed up 18% to finish at 6.4c on $920k stock traded. There was no news out today and nor has there been since they announced promising new data which was supportive of its antimicrobial platform and the recently commenced BTX 1801 Phase 2a clinical study.

I know the boys from the board, got clients that own it and hope to catch up with Matt in the next week or so to discuss all things Pot, Skin, Pimples, NFL, Corona & maybe even some fishing.   

Some details on last weeks news are listed below:

New antimicrobial data and conference presentation 

Key highlights

New data demonstrates BTX 1801 eliminates methicillin-resistant Staphylococcus aureus (‘MRSA’ or ‘Golden Staph’) from human skin explants infected with MRSA

New data also confirms synthetic CBD’s novel mechanism of action, where treatment with CBD rapidly disrupts the bacteria’s membrane resulting in cell death

The studies provide support for the recently commenced BTX 1801 Phase 2a clinical study, which is on target for completion in 4Q CY2020

Botanix is participating in the 2020 ASX Small & Mid-Cap Virtual Conference and the presentation is attached to this release Philadelphia PA and Sydney Australia, 8 September 2020: Clinical stage synthetic cannabinoid company
Botanix Pharmaceuticals Limited is pleased to release promising new data which is supportive of its antimicrobial platform and the recently commenced BTX 1801 Phase 2a clinical study. An updated investor presentation is also attached to this release and a video recording of Botanix’s presentation at the 2020 ASX Small & Mid-Cap Virtual Conference will be made available on the Company’s website: https://botanixpharma.com/invest/

New Data 

Botanix recently completed 2 new studies with synthetic cannabidiol and its BTX 1801 formulations. The studies investigated the performance of BTX 1801 in human skin models, as well as further confirming the mechanism of action by which synthetic cannabidiol kills bacteria.

The first study, an ex vivo efficacy study (“the Human Skin Study”), demonstrates that BTX 1801 eliminates methicillin-resistant Staphylococcus aureus (‘MRSA’ or ‘Golden Staph’) from human skin explants infected with MRSA after 24 hours of treatment in a dose dependent manner. Shows complete eradication of MRSA from human skin explants was evident with the high dose cannabidiol (CBD) BTX 1801 ointment, which is the same concentration used in Botanix’s Phase 2a clinical study.

The Human Skin Study showed that by 24 hours all concentrations of CBD in the BTX 1801 ointment resulted in significant reductions (p <0.05) from the growth control. The data from the Human Skin Study supports results previously reported by Botanix using explants from porcine skin and further validates the potential for BTX 1801 to decolonise MRSA from human skin in the current clinical study.

The Human Skin study also investigated whether the different concentrations of CBD in the BTX 1801 ointment resulted in any toxic effects on the skin, by measuring the viability of the skin after the 24- hour treatment period compared to the control.

There was no evidence of a reduction in viability for any of the concentrations tested compared to the vehicle control. This data reflectsstudies in minipigs that have confirmed the direct application of BTX 1801 to the nasal passage was safe and well tolerated.

AGH – Althea Group Holdings Limited today closed up 11% to finish at 64.5c on $4.20m stock traded. The reason they were up today was because they announced that its wholly-owned subsidiary, Canada-based peak processing solutions, had obtained its standard processing licence from Health Canada.

This means they would be able to immediately commence commercial operations over in Canada where I hear that they love a puff more than my old man does. 

I know Josh the CEO, I own stock in it myself and we wrote about them in the What’s Doing section only a few days ago which if you did miss you can find below:

https://bit.ly/2RhjukE

Some details on today’s news are listed below:

Althea subsidiary Peak Processing to immediately commence operations following granting of Canadian cannabis licence 

Second manufacturing and distribution agreement signed Investment 

Highlights:
 

Althea’s wholly-owned subsidiary Peak Processing Solutions will immediately commence commercial operations having successfully obtained its Standard Processing Licence from Health Canada

Peak will manufacture Cannabis 2.0 products on behalf of third parties as well as supply medicinal products to Althea’s pharmaceutical operations, greatly reducing Althea’s cost of goods sold

Peak has also signed a manufacturing and distribution agreement with a second beverage customer and is advancing a rapidly growing pipeline of potential customers

Peak is ideally positioned to capitalise on the Canadian boom in Cannabis 2.0 products including cannabis-infused beverages, edibles, concentrates and topicals

Recent research by Deloitte estimates that the Cannabis 2.0 market for edibles and alternative cannabis products is currently worth C$2.7bn per annum with significant growth forecast
Australian pharmaceutical company Althea Group Holdings Limited is pleased to announce that its wholly-owned subsidiary, Canada-based Peak Processing Solutions (‘Peak’), has obtained its Standard Processing Licence (‘the Licence’) from Health Canada. This is a major milestone for Althea and it means that commercial operations can immediately commence in Canada.

Commencement of commercial operations in a world-class facility The Licence allows operations to commence at the recently completed 3,716 sqm facility in Tecumseh, Ontario. The facility is one of the first large-scale independent processing facilities of its kind, specialising in the manufacturing and distribution of cannabis-infused beverages, 

concentrates and topicals (‘Cannabis 2.0 products’).

Peak will manufacture Cannabis 2.0 products on behalf of third parties as well as supply medicinal products to Althea Company Pty Ltd, greatly reducing the company’s cost of goods sold. Peak aims to achieve C$25 million revenue within 18 months.

Specifically, the licence provides Peak with the ability to:

Extract fresh and dried cannabis material for its own use and as a service on behalf of third parties

Produce and package cannabis-derived beverages/extracts/topicals for sale on behalf of third parties

Package dried flower for medical and recreational markets
Commenting on the granting of the licence Althea CEO, Josh Fegan, said:

“We are very pleased that Health Canada has issued our processing licence. This is a major milestone and will allow Peak to immediately commence production of cannabis-infused canned beverages for Collective Project and Blum, sign further customers who were waiting for the licence to be granted, and start supplying our own pharmaceutical operations with finished (Althea) products at a drastically lower cost than we currently pay to third party suppliers.

We are excited by the potential to serve the burgeoning Cannabis 2.0 market and look forward to providing updates on our progress.”

OLL – OpenLearning Limited today closed up 10% to finish at 38.5c on $869k stock traded. There was no news out today and nor has there been for quite some time but it’s another one that I have written up in the What’s Doing section recently enough. 

18th July to be precise, anyway if you missed that one and are interested in knowing more about them there is a link to the old report below:

https://bit.ly/2OHAjUx

Well done to Adam and his team on the recent share price success and I hope a few of you got on board back in July.    

Some details on what they do are listed below:

About OpenLearning

OpenLearning Limited is a software as a service company that provides a scalable online learning platform to education providers and a global marketplace of world-class courses for learners of all levels.
OpenLearning’s platform enables the delivery of project-based, social learning to encourage interaction among users and foster a community of collaborative learners.

The company’s unique service provides a complete learning environment for all types of online education – from short courses through to microcredentials and online degrees.

With more than 2.17 million learners worldwide across over 8,000 courses provided by 76 education providers, OpenLearning is at the forefront of a new wave of online education delivery.
 

TMT – Technology Metals Australia Limited today closed up 10% to finish at 27c on $530k stock traded. There was no news out today and nor has there been for quite some time but last week their neighbour did an off take agreement so maybe the punters, sorry I mean Robin Hood investors, sorry I mean investors like you and me might be thinking these guys are next.I know the boss, I got clients that own it and like the Vanadium thematic too, you people must think the only thematic I don’t like is retail shopping !!!

Anyway some details on their Gabanintha Vanadium project are listed below:

GABANINTHA VANADIUM PROJECT

During the June 2020 Quarter the Company maintained its clear focus on the progression of the development of the high grade, low cost, large scale, long life Gabanintha Vanadium Project (“Project” or “GVP”).

Activities progressed during the quarter included ongoing development of relationships with end users / vanadium industry participants, engagement with potential Project financiers / strategic partners, equipment suppliers and key Project development partners and updating of the Southern Tenement Mineral Resource Estimate, with the aim of extending the Project operating life.

The definitive feasibility study (“DFS”) on the globally significant GVP was based on the Northern Block of tenements, which host a Proven and Probable Ore Reserve of 29.6 Mt at a diluted grade of 0.88% V2O5 based on a Measured and Indicated Mineral Resource of 30.0 Mt at 0.9% V2O5.

This supports an initial 16 year project life, with the inclusion of the Southern Tenement resource expected to extend the mine life beyond 20 years.

What’s Not 

DXB – Dimerix Limited today closed down 63% to finish at 27.5c on $19.5m stock traded. The reason why they were down today was because they announced positive results in a Phase 2 clinical trial in individuals with diabetic kidney disease to support further development of its DMX-200 drug candidate.

Mr Market didn’t find them that positive and nor did Mr Kelso………

The results were obviously not appreciated by the market dropping more than 60% on the open only to be maybe saved by some Vaseline lovers of averaging down….maybe.

I don’t follow it anymore …….leave it at that eh.    

Some details on today’s news are listed below:

DIMERIX REPORTS POSITIVE PHASE 2 STUDY RESULTS OF DMX-200 IN DIABETIC KIDNEY DISEASE 

Key points

A statistically significant difference in albuminuria reduction was observed in patients receiving DMX-200 versus placebo with a higher starting baseline albuminuria, and is consistent with prior studies:

18% (p= .03) reduction in albuminuria in patients with >500mg/g (57mg/mmol) starting albuminuria (n=26) in addition to standard of care;

64% of patients with the higher starting albuminuria level demonstrated a reduction in albuminuria versus placebo, with 56% achieving a clinically significant >25% reduction above that achieved by standard best therapy.

No significant difference between treatment with DMX-200 and placebo across full patient cohort

DMX-200 was found to be generally safe and well-tolerated in diabetic kidney disease patients

Data supportive of progression to the next stage of development in diabetic kidney disease
Dimerix Limited, a clinical-stage drug development company, today announced positive results in a Phase 2 clinical trial in individuals with diabetic kidney disease to support further development of its DMX-200 drug candidate.

The Phase 2 study was a double-blind, randomised, placebo-controlled, crossover study designed to evaluate the safety and efficacy of DMX-200 in patients with diabetic kidney disease who are receiving a stable dose of standard of care, irbesartan.

Patients must have been receiving irbesartan for at least 12 weeks prior to being included in the trial. Each participant in the study received 12 weeks DMX-200 preceded or followed by 12 weeks placebo, separated by a 6-week washout period.

Unlike some other investigational drugs currently in development for kidney diseases, patients stayed on the standard of care angiotensin receptor blockade throughout the study.

As a result, the reduction in albuminuria observed from DMX-200 is in addition to any reduction in albuminuria expected from background therapy that would have occurred prior to starting on DMX-200.

Mine gets plenty….no need for any DXB over at Club Kelso that’s for sure 

Touch wood – yes please !!!

What’s Doing

MR1 – (Montem Resources – A Canadian coal play backed by some smart board members and investors as always in my opinion) 

Sadly I got none……but anyway that’s a story for another day. 

Montem Resources Limited will be listing tomorrow at 11am and is one worth watching for those with a contrarian view, mind you coal price is up 10% odd in last week or so so that can’t be bad for them. 

The IPO price was issued at 25c giving them a market cap of $50m and this was done through Morgans who were kind enough to offer me donuts.  

The IPO was oversubscribed so much so The rat couldn’t get any and it seem to be pretty tightly held with Regal owning 20% and Flannery’s (smart mining family) with around 10% and both those two can sniff out a bhag trust me.

They both might even read this tonight too if they aren’t in bed eating salmon…….or eating Rogan Josh. 

Chairman Mark Lochtenberg seemed pretty confident last time I saw him at Flynn’s reef our local fishing spot and has invested quite heavily himself, which is another tick in my opinion.  

Next door to them is Teck Resources, who are producing 25Mt (they are the second biggest exporter of met coal behind BHP).

On the other side of them Hancock bought out Riversdale’s Grassy Mountain project last year for $740m, and Atrum has their project and they are worth about $140m, so if Pete and his team get it right there is no reason why we can’t see a few Bhags from here.  

Like I said I think there is still plenty of room for new investors to make some money backing the boys……but as always DYOR. 

The coking coal price is set to rebound, and last time it got down low (2016), the price went from $80/t to $280/t in 4 months and my broking mate Shoey shat himself again. 

Montem was established in 2016 to develop hard coking coal projects in western Canada

The Company has three primary assets: the Tent Mountain Mine; the Chinook Project and the exploration projects at Isola, 4-Stack and Oldman

Funds from the IPO will primarily be used to prepare the Tent Mountain Mine for construction, and to explore the Chinook Project

First coal sales from the Tent Mountain Mine are expected in 2022

Montem’s projects are surrounded by well-known industry players including Teck Resources, Hancock’s Riversdale Resources and Atrum Coal

Combined, Managing Director Peter Doyle and Chairman Mark Lochtenberg have over 50 years of coal industry experience & they may or may not have done some fishing with The Rat over the years.  
He’s a good operator Mark as is the MD Maggie Doyle from Blue Heelers….it’s actually Peter Doyle but from now on I will be calling him Maggie in this report unless he really hates it. 

Like Captain Gaywood does……. 

I actually love snow but many don’t ……

More about them below after I have had around 6 schooners of my Coal this evening on what is known as Professionals night.  

At least I am honest…….and that’s why we are late !!! 

Montem owns steelmaking coal properties in southern Alberta and British Columbia, Canada.

These properties are located in Canada’s premier steelmaking coal mining region, adjacent to key mines of Teck Resources, which is the major producer of Canada’s steelmaking coal.

I would like to make it clear that what Montem intends to produce, beneficiate and transport to the marketplace is coking coal consumed by Asian steel mills to produce steel as opposed to thermal coal which is burnt by power stations to produce electricity.

Montem Resources plans to re-start mining at the Tent Mountain Mine which closed in 1983 due to poor market conditions. We will also progress development opportunities at the Chinook Project, as well as exploring our greenfield properties, including Isola and 4-Stack.

Montem’s investment highlights include: 

High quality steelmaking coal, initially from the Tent Mountain Mine, which was previously exported to Japan;

Significant resource including JORC compliant Mineral Resources 3.7Mt Measured, 151.9Mt Indicated and 53.7Mt Inferred Exploration and development potential from our large portfolio of assets;

Experienced Board and management with extensive coal mining experience in Canada and Australia.
The Company’s strategy is simple…..just like The Rat 

They have recently completed a definitive feasibility study for the Tent Mountain Mine re-start and are raising funds to move the mine to construction ready.

Furthermore, they have delineated development opportunities at the Chinook Project, and have a large portfolio of highly prospective exploration targets.

Montem is poised to become a steelmaking coal producer in the next two years and has plans to grow a large steelmaking coal mining business in the Crowsnest Pass.

This may or may not be a picture of young Rob from the company above who is a mad West Tigers supporter and a big supporter of the coal industry. 

Good luck big fella and lunch is on you when Dr Death aka Daniel Andrews let’s you guys move around again. 

Go Hard…………. but please stay inside most of the time when you are Going Hard 

We are almost there folks, stop fckn shaking hands would you and humping strangers 

in isolation while you are meant to be working !!!

I can do it and so can you !!!
Nick Kelso
Wealth Advisor | EverBlu Capital

L39, Aurora Place, 88 Phillip Street, Sydney NSW 2000
d: +61 2 8249 0052 | m: +61 404 003 613 
e: nick.kelso@everblucapital.com
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Sometimes it feels like I need to disclose to you what I have had for breakfast but anyway and

……..to finish off possibly the worlds longest disclaimer

GO HARD    

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