Paringa Resources (NASDAQ: PNRL) operates the low cost, high quality Poplar Grove Mine, part of the Buck Creek Complex located in the Illinois Coal Basin in western Kentucky. Roth Capital reiterated its buy rating of PNRL in June, with a price target of $33 per share.
Key Highlights:
• Poplar Grove mine advancing toward steady state production
• Existing contracts provide margin stability
• An under the radar opportunity
Call us at 1-800-RedChip to learn more.
What’s Next: Based on current estimates, PNRL could generate approximately $20 million in free cash flow next year, and the company’s pricing power and steadily increasing production should underpin free cash flow generation. Currently, the company trades for less than 2x Roth Capital’s 2020 cash flow estimate.
The Company is projecting $31 million in revenue in 2019 ($2 million EBITDA), and in 2020 $86 million ($16 million EBITDA). Almost 100% of first two years’ production has been sold, and about 60% of the first 5 years’ production, making for very secure medium-term cash flow. The Company has $21 million in cash and 9 million shares out (6 million in float). The company’s enterprise value is $55 million, and its EV/EBITDA ratio is 1.9x, substantially below its main comp, Alliance Resource Partners (NASDAQ: ARLP).
Disclosure
Paringa Resources Limited (NASDAQ: PNRL) is a client of RedChip Companies, Inc. PNRL agreed to pay RedChip Companies, Inc., a monthly cash fee for RedChip investor awareness services.
Nemaura Medical (NASDAQ: NMRD), a medical technology company focused on the development of SugarBEAT® as a non-invasive, affordable and flexible Continuous Glucose Monitor (CGM) for use by diabetics and pre-diabetics, submitted its De Novo 510(k) medical device application to the U.S. Food & Drug Administration for SugarBEAT® following the successful completion of clinical studies and two summative human factors usability studies.
Key Quote: “We are pleased to have submitted our De Novo 510(k) application to the FDA within our projected timelines thanks to our exemplary team of scientists and engineers. The global addressable market for CGM is estimated at $82 billion per year, and over $13 billion in the U.S. alone. However, unlike type 1 diabetics, 30% of whom use CGM, the U.S. has an additional 84 million pre-diabetics. Currently, CGM usage amongst pre-diabetics and other non-insulin using diabetics is negligible. Unlike other devices on the market, as the world’s first non-invasive CGM, SugarBEAT does not puncture the skin to insert a sensor filament inside the skin. Instead the sensor sits on top of the surface of the skin. For this reason, Nemaura believes the total addressable market for SugarBEAT is likely to be far greater at $179 billion, many times larger than the market addressable by the current competition.1 The FDA has a structured review process, which should allow the review to be expedited, and while awaiting feedback on the application, the Company has now started to enter into discussions with key global companies in this space for commercialization in the US.” – Dr. Faz Chowdhury, CEO
Disclosure
Nemaura Medical (NASDAQ: NMRD) is a client of RedChip Companies. NMRD agreed to pay RedChip a monthly cash fee for investor awareness services.
Gary Jacob, CEO of Immuron (NASDAQ: IMRN), an Australian biopharmaceutical company focused on developing and commercializing orally delivered polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases, will host a webinar Thursday, July 18, 2019 at 10:30 am Eastern/7:30 am Pacific.
— Australian biopharmaceutical company focused on developing and commercializing orally delivered targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases. Immuron has a novel and safe technology platform with one commercial asset (Travelan®) generating revenue
— Immuron has an immediate focus on seeking FDA approval of Travelan® to treat travelers’ diarrhea (TD). According to the Centers for Disease Control and Prevention (CDC), an estimated 10 million international travelers develop TD every year. Approval of Travelan® to treat TD is expected to significantly increase commercial opportunities for Travelan® in the United States
— Revenue generated from Travelan® has consistently grown over the past few years, with a 66% YoY increase in 3QFY19, generating AUD $0.6M, and year-to-date (March 31) worldwide sales reaching AUD $1.7M, marking a solid 23% increase on the same time last year
— In May 2019, IMRN closed a public offering of 500,000 ADSs at $4.00 per ADS for gross proceeds of $2.0M
— New CEO Jacob is founding CEO of Synergy Pharmaceuticals and co-inventor of TRULANCE® (an FDA-approved drug)
Immuron Ltd. (NASDAQ: IMRN) is a client of RedChip Companies, Inc. IMRN agreed to pay RedChip Companies, Inc. a monthly cash fee for (3) months of investor awareness services.
RedChip Companies President and CEO Dave Gentry recently spoke with Paul Galvin, CEO of SG Blocks (NASDAQ: SGBX), in an exclusive interview.
SGBX is a premier innovator in advancing and promoting the use of code-engineered cargo shipping containers for safe and sustainable construction.
Rather than consuming new steel and lumber, SG Blocks capitalizes on the structural engineering and design parameters a shipping container must meet and repurposes them for use in building. Offering a product that typically exceeds building code requirements, SG Blocks enables developers, architects, builders and owners to achieve greener construction, faster execution and stronger buildings of higher value and extended life.
SG Blocks' products have been featured in several media outlets including Fortune, NY Times, NY Post, USA Today, CNN, Washington Post and more. The company has completed projects for US Army and Navy, US Department of Veteran Affairs, The City of Santa Monica, Port of Houston Authority, Aman Resorts, BareBurger, Equinox, HGTV, Lacoste, Marriott Hotels & Resorts, Mini Cooper, Starbucks and more.
Genetic Technologies (NASDAQ: GENE) to Hold Group Call Thursday
Paul Kasian, Chairman and acting CEO of Genetic Technologies (NASDAQ: GENE), a diversified molecular diagnostics company developing tools for the prediction and assessment of cancer risk to help physicians proactively manage patient health, will host a group call Thursday, July 18, 2019 at 4 pm Eastern/1 pm Pacific.
To join the call, please reach Craig Brelsford, RedChip Specialist, at (407) 571-0902. Craig will send you the dial-in info.
About Genetic Technologies (NASDAQ: GENE)
— Market cap: $11 million
— Diversified molecular diagnostics company developing tools for the prediction and assessment of cancer risk to help physicians proactively manage patient health
— The Company’s lead products, GeneType for Breast Cancer and GeneType for Colorectal Cancer, are clinically validated risk assessment tests that are first in their class
— GeneType for Breast Cancer predicts a woman’s risk of developing breast cancer in the next five years, allowing providers to target limited resources to patients most likely to develop breast cancer
— The Company has secured multiple high-value collaborations to accelerate development and validate clinical use of its tests. Initial marketing efforts are focused on clinical adoption in the U.S., Australia, and China
— Company’s development pipeline includes new colorectal cancer test launched in May 2019; new tests for Type 2 diabetes, cardiovascular disease, prostate cancer, and melanoma expected to launch over the next 12 months
Genetic Technologies (NASDAQ: GENE) is a client of RedChip Companies, Inc. GENE agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.
cbdMD (NYSE American: YCBD), a nationally recognized consumer cannabidiol (CBD) brand, has been named a "Brand to Watch" by Brightfield Group, a leading cannabis research firm. In their recent mid-year 2019 Market Update, Brightfield Group ranked cbdMD in the top 10 of domestic CBD companies in two categories, Topicals and Skincare/Beauty.
Key Quote: “There is a massive shakeup in the CBD industry with smart, savvy companies effectively leveraging marketing and PR to disrupt the previous leaders. cbdMD has leveraged high profile sponsorships better than anyone to rapidly gain a massive consumer base and break into the top 20 CBD companies in the country.” – Bethany Gomez, Brightfield Group's Managing Director
The Backstory: In addition to being the first CBD company listed on the NYSE-American (YCBD), cbdMD is the official founder of National CBD Day (August 8) and National Hemp Day (February 4). In April, cbdMD became the first CBD company to sponsor a major professional sports league, the BIG3, and has maintained its recurring partnership with Nitro Circus. Team cbdMD is made up of Bubba Watson, Lolo Jones, Kerri Walsh Jennings, Chad ReedQuinton "Rampage" Jackson, Ryan Sheckler, Tyron Woodley, Michael Bisping, Vicki Golden, Ken Block, and more.
Disclosure
cbdMD (NYSE American: YCBD) is a client of RedChip Companies. YCBD agreed to pay RedChip a monthly cash fee of between $5,000 and $15,000, and 5,000 shares of Rule 144 stock for RedChip investor awareness services. Additionally, the CEO of RedChip Companies owns 13,500 shares of YCBD.
RedChip Companies President and CEO Dave Gentry recently spoke with Desmond Wheatley, Chairman and CEO of Envision Solar (NASDAQ: EVSI).
EVSI is the leading producer of unique and sustainable infrastructure products for electric vehicle charging, energy security, and outdoor media.
In fiscal year 2018, EVSI generated 300%+ revenue growth, surpassing $6 million in sales.
The company’s innovative EV ARC product, a rapid deployment charging station for electric vehicles, has been installed in more than 90 of the approximately 19,000 municipalities across the US, including most recently, New York City.
Invented and manufactured in California, the patented EV ARC™ and EV ARC™ HP products fit inside single parking spaces without reducing available parking. The EV ARC™ product generates enough clean solar electricity to power up to 225 miles of EV driving in a day. EV ARC™ HP DC fast charging systems provide up to 1,100 miles per day.
The EV ARC™ system’s solar electrical generation is enhanced by EnvisionTrak™ (patented) which causes the solar array to follow the sun, generating up to 25 percent more electricity than a fixed array.
MacroGenics (NASDAQ: MGNX), a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, and I-Mab Biopharma (I-Mab), a China and U.S.-based clinical-stage biopharmaceutical company committed to the discovery and development of first-in-class and best-in-class biologics in immuno-oncology and autoimmune diseases, announced that the companies have entered into an exclusive collaboration and license agreement to develop and commercialize enoblituzumab. This investigational drug is an immune-optimized, anti-B7-H3 monoclonal antibody that incorporates MacroGenics’ proprietary Fc Optimization technology platform. Enoblituzumab represents one of the most advanced programs in development directed against B7-H3, a target for which no agent is currently approved. I-Mab obtains regional development and commercialization rights in mainland China, Hong Kong, Macau and Taiwan.
Key Quote: “MacroGenics is recognized as a leader in the development of therapeutics targeting B7-H3 and we are committed to accelerating the development of enoblituzumab, a promising investigational drug which may represent a new treatment paradigm in immuno-oncology.” — Jingwu Zang, M.D., Ph.D., Chief Executive Officer of I-Mab
The Backstory: MacroGenics’ Fc-Optimization platform is designed to modulate an antibody’s interaction with immune effector cells. The Fc region of certain antibodies binds activating and inhibitory receptors, referred to as FcγRs, on immune cells found within the innate immune system. Such interactions affect killing of cancer cells through antibody dependent cellular cytotoxicity (ADCC), among other Fc-dependent functions.
MYnd Analytics (NASDAQ: MYND), a predictive analytics company aimed at improving the delivery of mental health services through the combination of telemedicine and data analytics, and Emmaus Life Sciences (“Emmaus”), a leader in sickle cell disease treatment, announced that the proposed merger and spin-off transactions were approved by their respective stockholders (96% and 99.98%, respectively, of those shareholders voting) at the special stockholder meetings held July 9, 2019.
The Backstory: Emmaus Life Sciences is a commercial-stage biopharmaceutical company engaged in the discovery, development, marketing and sale of innovative treatments and therapies, including those in the rare and orphan disease categories. Its lead prescription product, Endari®, demonstrated positive clinical results in a completed Phase 3 clinical trial for sickle cell disease and received FDA approval in July 2017. Emmaus began marketing and selling Endari® in the U.S. in January 2018. For more information, please visit www.emmauslifesciences.com.
Disclosure
MYnd Analytics, Inc. (NASDAQ: MYND) is a client of RedChip Companies, Inc. MYND agreed to pay RedChip Companies, Inc. a monthly cash fee for RedChip investor awareness services.
Emerald Health Therapeutics’ (OTCQX: EMHTF) 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has achieved its full production run-rate of 75,000 kilograms of dried cannabis at its 1.1 million square foot Delta 3 greenhouse in Delta, British Columbia.
Key Quote: “Pure Sunfarms’ growing operation is setting the standard for large-scale low-cost high quality cannabis production, which we believe serves as a strong indication of what the combined expertise of Emerald and Village Farms can accomplish. As quality, yield and cost of production of Pure Sunfarms continue to exceed our initial goals, we are building a tremendously valuable asset in the Pure Sunfarms operation and achieving a significant contribution to Emerald’s growth strategy.” – Dr. Avtar Dhillon, Executive Chairman & President
What’s Next: Pure Sunfarms has commenced conversion of its second 1.1 million square foot (25 acre) greenhouse operation, Delta 2, for cannabis production, which will double Pure Sunfarms’ annual output at full production to 150,000 kilograms. Pure Sunfarms expects to complete its first harvest at the Delta 2 facility by mid-2020, ramp to an annualize full production run-rate by the fourth quarter of 2020, and operate at full production of 75,000 throughout 2021.
Quote of the Week
"Invest in something you can get your arms around and be very conservative, own enough stock so that you are not putting all your eggs in one basket."
- Manny Villafana, CEO Kips Bay Medical
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