Digital Ally, Inc. (NASDAQ: DGLY) is pleased to announce that the U.S. District Court for the District of Kansas set the final pre-trial schedule for its litigation against Axon Enterprise, Inc. (“Axon” formerly TASER International, Inc.). The Court’s final scheduling order sets a rapid pace to finalize the litigation with discovery closing on September 17, 2018 and the final pretrial conference taking place on January 16, 2019. A jury trial date will be set shortly after the final pretrial conference.
Key Quote: “We are finally closing in on the finish line. Axon and WatchGuard have thrown everything they can at avoiding our patents, and we have beaten back every single attempt.” Stanton Ross, CEO, Digital Ally
Why It Matters: This trial schedule follows the Court’s claim construction order (e.g., the “Markman ruling”) where the Court rejected all of Axon’s arguments and sided with Digital on every issue. In doing so, the Court rejected Axon’s attempt to unduly narrow Digital Ally’s patent rights and confirmed that Digital’s patent claims are not indefinite, as Axon alleged. With this ruling, Axon has now lost every substantive challenge it has made against Digital’s patents—four inter partes reviews, one ex parte reexamination, and the Markman ruling. Digital Ally’s litigation against Enforcement Video, LLC (d/b/a WatchGuard Video) (“WatchGuard”) also is rapidly moving towards completion with its final pretrial conference set for April 9, 2019. Because WatchGuard is bound by the IPRs and Markman ruling in the Axon case, it also will be severely limited in its remaining defenses.
The Backstory: Digital Ally, Inc., headquartered in Lenexa, Kan., specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, commercial fleets, and consumer use. Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.
(Digital Ally, Inc. [NASDAQ: DGLY] is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a monthly cash fee for four (4) months of RedChip investor awareness services.)
American Water Works Company, Inc. (NYSE: AWK) announced that its board of directors declared a quarterly cash dividend payment of 45.5 cents per share of common stock, payable on September 4, 2018, to all stockholders of record as of August 10, 2018.
Why It Matters: American Water offers a dividend reinvestment and direct stock purchase plan called American Water Stock Direct, which enables stockholders to reinvest cash dividends and purchase additional shares of American Water common stock without any brokerage commissions or service charges. Stockholders and other persons may obtain a copy of the plan prospectus and an enrollment form by contacting American Stock Transfer & Trust Company (“AST”) at 888-556-0423, visiting AST’s website at www.amstock.com, contacting American Water’s Investor Relations department at (877) 310-7174, or by visiting the investor relations webpage at ir.amwater.com.
The Backstory: With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater, and other related services to an estimated 15 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable, and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook, and LinkedIn.
Immuron Limited (NASDAQ: IMRN), an Australian microbiome biopharmaceutical company focused on developing and commercializing orally delivered targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases, is pleased to announce the sales results of Travelan®, its commercially available, over-the-counter gastrointestinal and digestive health supplement, for the fiscal year ended June 30, 2018.
The Backstory: Global Immuron Ltd. sales revenue reached an AU$2million milestone, continuing its upward trend and enjoying a 29% sales increase compared to FY17. U.S. Travelan® sales continue to exceed expectations, growing to AU$765k, which represents a 114% increase over FY17. In Australia Travelan® also produced an outstanding full-year result, achieving a 19% increase in sales revenue.
Immuron is an Australian microbiome biopharmaceutical company focused on developing and commercializing orally delivered targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases. Immuron has a unique and safe technology platform that enables a shorter development therapeutic cycle. The Company currently markets and sells Travelan® for the prevention of travelers’ diarrhea, and its lead clinical candidate, IMM-124E, is in Phase II clinical trials for Non-Alcoholic Steatohepatitis (NASH), Severe Alcoholic Hepatitis (SAH) and Pediatric Nonalcoholic Fatty Liver Disease (NAFLD). Immuron’s second clinical stage asset, IMM-529, is targeting Clostridium difficile infections (CDI). These products, together with the Company’s other preclinical immunotherapy pipeline products targeting immune-related diseases currently under development, will meet a large unmet need in the global immunotherapy market.
Key Quote: “We are excited to see consistently improving sales growth for Travelan® in Australia and more importantly in the USA. Our focused marketing efforts demonstrated by the team are helping to build awareness and educate both consumers and travel medicine clinicians on the benefits of Travelan®. We are confident that our sales growth will continue as our marketing strategy builds upon this exposure.” Dr. Jerry Kanellos, CEO, Immuron
(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, which includes this research report.)
Strong interest in this week’s earnings report from Tesla (NASDAQ: TSLA), which is expected to be out after the close on Wednesday, should lead to increased volatility in the stock, no matter the actual results.
Why It Matters: Experts point to TSLA as the highlight of this week’s earnings reports, even topping Apple (NASDAQ: AAPL), which generally reports a lackluster Q2. Of interest when Tesla reports will be information about Model 3 sales and production, as well as the costs incurred by the company as it ramps up production. Of course, investors will also be closely watching to see if Musk sticks to the script during the earnings call or if he puts on another bizarre show.
GSRX Industries (OTCQB: GSRX), formerly known as Green Spirit Industries, a cannabis business building vertically integrated operations in Puerto Rico and California, recently acquired two properties located in San Juan, Puerto Rico as part of the Company’s plan to expand its operations and to build up its portfolio of retail cannabis dispensaries and cannabis investment properties nationally.
Why It Matters: GSRX continues to make smart strategic moves under the leadership of CEO Les Ball (former Chairman and CEO of Macy’s Midwest). The latest acquisitions, completed earlier this summer, further establish GSRX as a leader in the growing Puerto Rican market and strengthen the company’s overall portfolio, which includes expanding operations in California and the potential for further development ahead. A recent feature report from CannaInvestor Magazine provides a great overview of GSRX, its recent successes, and plans moving forward.
Key Quote: “We have made our intention to become Puerto Rico’s premier purveyor of medicinal cannabis clear from the outset, and we believe these cannabis investment properties will be key to helping us reach that goal.” Les Ball, CEO
What’s Next: GSRX has plans to rapidly scale its business in the months and quarters ahead. To learn more about its strategy and long-term potential, watch our exclusive webinar with CEO Les Ball at: RedChip.com
(GSRX Industries [OTCQB: GSRX] is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.)
Kathy Ireland®, CEO and Chief Designer of kathy ireland® Worldwide and Chairman Emeritus and Chief Brand Strategist of Level Brands, Inc. (NYSE American: LEVB), attended the 2018 Las Vegas Furniture Market on July 29-30. The Las Vegas Furniture Market is the largest furniture, home decor, and gift wholesale market in the West.
The Backstory: At the 2018 Las Vegas Furniture Market, Ms. Ireland, named by Furniture Today one of the Most Influential Leaders in Furniture, showcased the latest from the new Michael Amini | kathy ireland® Home Designs furniture collection; KATHLEEN MARIE NEW YORK, a luxury collaboration with Nourison experiencing great success at Neiman Marcus and Horchow, as well as the highly popular kathy ireland® Home by Nourison collection; and the newest designs from kiWW's partnerships with Bush Furniture and Pacific Coast Lighting. These partnerships were forged prior to the formation of Level Brands, Inc. kiWW's agreements with Nourison, Pacific Coast Lighting and Bush have recently been extended into the next decade.
Why It Matters: Kathy Ireland®, in her role as Level Brands' Chief Brand Strategist, also had meetings while at the Furniture Market in Las Vegas to build strategic alliances on behalf of Level Brands and its clients. Last month, Level Brands, Inc. announced its Encore Endeavor One (EE1) subsidiary signed a licensing agreement with Lamps Plus, the largest lighting retailer in the United States, to showcase artwork of its client, world-renowned neo-pop artist Romero Britto, on lampshades and pillows.
Key Quote: "This year, we are excited to meet with our new partnerships for Level Brands' clients, and look forward to expanding their footprint in the home furnishings industry," Kathy Ireland®, Chief Brand Strategist, Level Brands.
(Level Brands [NYSE American: LEVB] is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee and 5,000 shares of Rule 144 stock for four months of RedChip investor awareness services.)
Recent Weakness in Small-Caps Could Present Buying Opportunity
After reaching new all-time highs earlier in July, the Russell 2000 has retreated in recent days, down more than 3% from its earlier highs. The strength it has exhibited on its way to over 1700 this summer should ultimately lead to new all-time highs once this latest correction plays out.
While many of the small-cap names we follow at RedChip are uncorrelated with the broader markets, overall strength in small caps bodes well for all smaller companies, as market participants look for the next big winners.
Quote of the Week
"If you want to invest in the microcap space buy companies not stocks, if you buy stocks, the daily fluctuations and lack of liquidity will drive you crazy."
- Byron Roth, CEO ROTH Capital
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