Traders Cafe with Zak Mir: DeepVerge, Mast Energy, Media Tech SPAC, Netscientific, Nuformix, Riverfort Global, Zoetic

Zak Mir
Traders Cafe
20:53, 7th June 2021

Shares of fibrosis and oncology pharmaceutical development company Nuformix (NFX) were in focus after it said it has received a Notice of Allowance for a U.S. National Phase Patent Application with regard to NXP002. This is the Company's pre-clinical lead asset and a potential novel inhaled treatment for Idiopathic Pulmonary Fibrosis. Nuformix added that since completing a successful fundraise in March 2021, there have been additional pre-clinical studies on NXP002 with the goal of increasing the value of the NXP002 asset to make it more attractive to licensing partners.

One of the characteristics of stocks where the bears over egg the downside argument is that such attacks can actually back-fire and cause significant rebounds. This has been seen of late in Internet of Things specialist Tern  (TERN), and it would appear that we are also witnessing a similar phenomenon at CBD play Zoetic (ZOE). At 56.25p the stock is now less than a couple of pence below its 200 day moving average, and has bounced well above the former November gap support at 41p. Last month the group said that in April 2021, it had received orders for its 'Chill' brand totalling US$0.34 million, with additional orders in excess of US$1.0 million last month. It will be interesting to see whether the stock continues to squeeze higher ahead of full year results in July, a process which may already be in motion.

There was a solid reaction to the latest £10m funding round from artificial intelligence powered life science and environmental test services group DeepVerge (DVRG). Here the company announced it had raised £10m at 30p, a full 100% above the last raise. As a sign the market appreciated the move the stock closed 10% above the placing price. The funding is set to be used to expand Labskin Services, expand the Skin Trust Club and Modern Water Sales, but perhaps most of all to build capacity for the sprawling entity at a time of rapidly growing demand. This is especially the case in the scenario of a “rolling” pandemic and / or with heightened awareness of services related to the detection of bacteria, viruses and toxins.

There was certainly a day in the sun for Netscientific (NSCI), a recent quite persistent alumnus of the Sunday Roast Podcast. Here the shares nearly doubled on the day in the wake of the international life sciences group announcing that its wholly owned subsidiary ProAxsis Limited has entered into an exclusive licensing agreement with AstraZeneca (AZN). ProAxsis will take responsibility for completing the validation and global commercialisation of a SARS-CoV-2 serology ELISA developed by an internal research team at AstraZeneca. Given that this news was not necessarily the previous reason for Netscientific being regarded as undervalued, bulls of the stock may be looking for a further re-rate once the dust settles on the 94% one day share price rise.

It would appear that shares of Mast Energy (MAST), which focuses on Reserve Power demand in the UK, did not enjoy last week’s brief dip below its initial 12p low from April’s stock market debut. The shares pushed back up 7%, perhaps on the basis that after nearly two months of being listed the time for an announcement regarding an energy deal may be that much closer - especially given that this was presumably the reason for spinning the company off from Kibo Energy (KIBO) in the first place.

Finally, there was a reason for those investors involved in one of the summer’s forthcoming IPOs to take note. Media Tech SPAC, where media industry guru and HNW tech investor John Mahtani is CEO, comes to market in the next few weeks. In an interview to start the week, Riverfort Global’s (RGO) Executive Chairman Brian Kinane underlined the way that the MTS float is an opportunity for private investors to gain access to growth from a ground floor level, not after the event. Kinane, whose company is partnered with MTS, stressed that most companies in tech remain private, and do not allow the public markets access until relatively late in their life cycle.

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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