Part of the raison d’etre of #StockMarketWatch is to fill in the gaps left by the mainstream media.
It was not particularly surprising that there was a rebound in tech stocks in the US, and bond yields fell, to underpin the recent Biden stimulus package developments. Given the way that financial markets have increasingly little corelation between markets they had pre GFC, making the act of trying to corelate different markets is fraught with danger. Indeed, it can mean one is simply collecting false flags.
Speaking of false flags, it would appear that rumours of the alleged demise of inventory monetisation specialist Supply@Me Capital (SYME) by those who profit from shorting stocks under the guise of being sticklers for financial propriety were rather exaggerated . It was clear that in the hour and a half or so between SYME trading again and the market close, vanquished bears were scrambling to cover their positions by bidding for stock. The shorting cause was also not helped by the company stating that it would update the market on trading by the end of this month, something which could cause them to sweat it out for up to three weeks. Shares of Supply@Me Capital closed up just under 2% at 0.52p, with a market cap of £167m, after peaking at 0.66p.
There was more laughter at the bears’ expense at vertically integrated CBD group Zoetic International (ZOE). Here the company said that Zoetic is pleased to announce that it has entered into a put option agreement with LDA Capital. The Agreement provides Zoetic with the ability to access up to £35 million over a 36-month period to further expand its international footprint for its Chill product line whilst accelerating the formation of new distribution channels. The significance of this news was that one of the tactics of shorters is to attempt to derail a company’s ability to raise finance, and this door has now been closed. Shares of Zoetic climbed nearly 2% to 104p, another new high.
There was a distinct sense of relief as far as a marked rebound in the Cannabis stocks. Kanabo (KNB) led the way with a a production and supply agreement with PharmaCann Polska who will supply cartridges containing Kanabo’s proprietary medicinal cannabis formulations for its VapePod inhalation device. Kanabo said this is the second key agreement directed towards establishing a European medicinal cannabis supply chain and builds on the previous announcement of a UK distribution agreement. Kanabo’s CBD Wellness products are already being produced and distributed in the primary markets of UK and Germany. Shares of Kanabo were up by a quarter. Fellow mini sector companies MGC Pharma (MXC) and recent entrant Cellular Goods (CBX) also managed to rise by close to 10% apiece, as sentiment finally flipped back in their favour, perhaps backed by the Kanabo news.
Next generation tech investor Pires (PIRI) was in positive focus in the wake of the previous session’s news from crypto miner Argo Blockchain (ARB). Argo said on 8 March 2021 that it has raised £26.8 million of new funds, of which it has agreed to invest £7.3 million in Pluto Digital Assets plc, as part of the equity fundraising being carried out by Pluto.
This new cash was to enable Argo to maintain its circa 25% shareholding in Pluto, and of course provides an excellent validation of the 6.4% stake that Pires has in Pluto, along with 24 million warrants. Consequently, shares of Pires jumped 9%.
One of the hallmarks of a growth company is significant, frequent newsflow, and this is what shareholders of Open Orphan (ORPH) have been treated to for over 18 months. The rapidly growing specialist pharmaceutical services CRO and a world leader in vaccine and antiviral testing using human challenge clinical trials, said that its subsidiary Venn Life Sciences has been awarded a contract for a study with Oxford BioTherapeutics, a clinical stage oncology company. Open Orphan said that this is a phase I, open-label, dose finding study which will be used to assess the safety, of an antibody-drug conjugate to treat positive solid tumours and in women with CD205-positive HER2-negative metastatic breast cancer.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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