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#HVO hVIVO plc – Investors’ Chronicle

Building on decades of experiencehVIVO is currently the only CRO focused on challenge studiesproviding world class expertise and capabilities in challenge agent manufacturea unique portfolio of established human challenge models to test a broad range of infectious and respiratory disease productsand specialist drug development and clinical consultancy services through its Venn Life Sciences subsidiary.

hVIVO contract awards Since the release of interim results in early SeptemberhVIVO has announced a massive £13.4mn contract with a US biotechnology clienta repeat customerto test its respiratory syncytial virus antiviral candidate using hVIVO’s established RSV Human Challenge Study Model.

Although difficult to assess the challenge study marketLiberum Capital estimates there are around 20 challenge studies conducted each year.

Using the prevailing average contract size of £6.7mnthis indicates £100mn-£135mn of challenge study work each yearexcluding any additional income through manufacturing and validating bespoke challenge agent.

Around 60 per cent of hVIVO’s current order book relates to biotech customers and the balance relates to big pharmawith the group carrying out three active challenge studies for big pharma in the first half of 2022 and two full-service challenge studies with values exceeding £25mn. MoreoverhVIVO has signed up eight challenge studies with big pharma companies since 201812  and all the big pharma clients are repeat customers.

Improving financials Backed by a bumper order book and having booked £9mn of group revenue in July and August 2022house broker FinnCap expects the group’s hVIVO divisionwhich carries out the challenge studiesto grow revenue from £29.4mn last year to £42.5mn in 2022 and account for 82 per cent of its total revenue estimate of £51.1mn. Furthermoretaking account of challenge study contract winsrevenue from Venn Lifelaboratory services and non-challenge studiesthe brokerage estimates that £53mn of its 2023 revenue estimate of £56mn is already covered.

SGS’s expertise is in performing influenza challenge studiesbut it also has Malaria challengeand RSV challenge models.

#TEK Tekcapital Plc – Appointment to the Board of MicroSalt

Tekcapital Plc (AIM: TEK), (OTCQB: TEKCF) the UK intellectual property investment group focused on creating valuable products that can improve people’s lives, is pleased to announce that Judith Batchelar OBE has joined the board of MicroSalt.

 

 

Judith currently serves as Deputy Chair of the U.K. Environment Agency, sits on UK Research and Innovation’s Natural Environment Research Council and is a Trustee of the Royal Botanic Gardens Kew. She has worked in the food and drink industry for over 35 years. From 2004 to 2021, she worked for Sainsbury’s as Director of Sainsbury’s Brand with responsibility for all aspects of Sainsbury’s product offer.

 

Prior to Sainsbury’s, Judith held a similar role at Safeway, spent twelve years in the Food Division at Marks & Spencer, and prior to this worked in manufacturing for Mars and Bass.

 

Judith is a biochemist and a nutritionist, has an Honorary Doctorate in Agriculture from Harper Adams University, and is a Fellow of the Institute of Food Science and Technology (IFST), and the Royal Society of Arts and Manufactures (RSA).

 

Judith was awarded an OBE in 2015 for services to Farming and the Food Industry, and serves on the Food, Farming and Countryside Commission.

 

“We are very excited to have Judith join our team. Her deep industry experience in improving the nutritional profile of foods will be enormously helpful with our go-to-market efforts in the U.K.,” said Rick Guiney, CEO of MicroSalt®.

 

Commenting on her appointment Judith Batchelar said, “I’m really excited to join the board of MicroSalt, I am passionate about their mission to help combat cardiovascular disease by reducing sodium levels in the foods we eat, and I know we can make a difference. “

 

About MicroSalt®

MicroSalt, is the developer and manufacturer of a proprietary low-sodium salt called MicroSalt®. We are passionate about improving peoples’ lives with better-for-you seasonings and snacks by taking the lead in the industry by providing the best low-sodium salt solution, based on the mechanical transformation of the salt particle itself. This solution is the only one that delivers real salt flavour because it is salt. Our new patented technology produces salt crystals that are approximately one hundred times smaller than typical table salt, delivering a powerful saltiness as the micro-grains dissolve in the mouth, with approximately 50% less sodium consumption. Additionally, the ultra-small particle size enhances product adhesion, which reduces waste and provides improved flavor consistency. MicroSalt® and SaltMe® are registered trademarks of MicroSalt Inc.

 

To learn more about MicroSalt please visit https://www.microsaltinc.com

 

Tekcapital owns 97.2% of the share capital of MicroSalt Ltd. and 73% of MicroSalt Inc. its U.S. subsidiary.  

 

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed discoveries that can enhance people’s lives and provides a range of technology transfer services to help organisations evaluate and commercialise new technologies. Tekcapital is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in the UK. For more information, please visit www.tekcapital.com.

LEI: 213800GOJTOV19FIFZ85

 

For further information, please contact:

Tekcapital Plc 

Via Flagstaff IR

Clifford M. Gross, Ph.D. 

SP Angel  Corporate Finance LLP                                                         (Nominated Adviser and Broker)

+44 (0) 20 3470 0470 

Richard Morrison / Charlie Bouverat (Corporate Finance)

Rob Rees (Corporate Broking)

 

 

Flagstaff Strategic and Investor Communications                                    +44 (0)207 129 1474

Tim Thompson/Andrea Seymour/Fergus Mellon   

#KAV Kavango Resources Plc- Strategic Financing to raise £3million

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that it has conditionally raised £3,000,000 before expenses by the issue of 166,666,660 New Ordinary Shares in the capital of the Company (“New Ordinary Shares”) at a price per share of 1.8 pence.

Fundraising

The 158,555,555 New Ordinary Shares have been conditionally placed by First Equity Limited (“First Equity”), on behalf of the Company with institutional and other investors, including high net worth and retail investors (the “Placing”).

The Placing includes one strategic cornerstone investor, who subscribed for over half of the Placing amount.

In addition to the Placing, the Company has also conditionally completed a direct subscription (the “Subscription”) for the issue of 8,111,105 New Ordinary Shares. 

Each New Ordinary Share has, on a one-for-one basis, a warrant attached exercisable at 3p for a term of 24 months from the date of issue. Issue of the warrants will require the approval of shareholders and details of a general meeting at which such approval will be sought will be sent to shareholders in the near future.

Further details of the Placing and Subscription, including the expected date of admission of the New Ordinary Shares (“Admission”), will be set out in a prospectus (“Prospectus”) to be published in electronic form and available on the Company’s website.

Ben Turney, Chief Executive Officer of Kavango, commented:

I am delighted to announce the successful completion of this £3million fund raising for Kavango, a transformational financing for the Company. 

Supported by many existing shareholders and new investors, we are now empowered to drive forward a dramatic exploration programme across our portfolio. Our current key focus is on our Kalahari Copper Belt interests, where the drilling programme is underway.

We are now fully funded for our ambitious plans through 2023 and are in an excellent position to achieve our goal of becoming the leading minerals exploration company in Botswana.”

Use of funds

The Placing and Subscription are to raise funds to meet exploration costs across the Company’s portfolio of projects in Botswana, and general working capital as set out below.

Funds raised from the Placing and Subscription will primarily be used to carry out proposed exploration work, provide working capital to the Group and to meet its regulatory and administrative commitments. 

Details of the Placing and Subscription

The New Ordinary Shares will represent approximately 27.7per cent. of the Enlarged Share Capital. The New Ordinary Shares will rank pari passu in all respects with Existing Ordinary Shares including all rights to dividends and other distributions declared, made or paid following Admission and will be issued as fully paid.  Application will be made for the New Ordinary Shares to be admitted to the Standard Segment of the Official List and to the London Stock Exchange. The Placing and Subscription are conditional, inter alia, on the approval of a Prospectus in relation to the Placing and Subscription Shares no later than 12 December 2022, or such later date as the Company and First Equity may agree.

In connection with the Placing, the Company shall issue

Subject to the approval of shareholders, one warrant will also be issued for each New Ordinary Share subscribed for at an exercise price of 3p for a period of thirty months from issue (“Financing Warrants”). Shareholder approval will be sought to the issue of the Financing Warrants in due course.

Total Voting Rights 

Following the issue of the Placing and Subscription Shares, the Company will have 602,312,586 Ordinary Shares in issue.

Prospectus

The Company is in process of seeking approval from the Financial Conduct Authority for its prospectus to be issued in connection with the Placing and Subscription. 

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (“UK MAR”). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc                                                                                     

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson              

SI Capital Limited (Joint Broker)                                                                          

+44 1483 413500

Nick Emerson

#POLB Poolbeg Pharma PLC – Upcoming Events

21 October 2022 – Poolbeg Pharma (AIM: POLB, OTCQB: POLBF), a clinical stage infectious disease pharmaceutical company with a capital light clinical model, announces that its management and business development team will be attending and presenting at a number upcoming partnering and investor events from October 2022 to January 2023.

 

Partnering events

BIO-Europe from 24-26 October 2022 at Leipzig Messe, Leipzig, Germany 04356

Jefferies London Healthcare Conference from 15-17 November 2022 in London

JP Morgan 41st Annual Healthcare Conference from 9-12 January 2023 at the Westin St. Francis Hotel, San Francisco, CA

 

Investor events

London South East Webinar (virtual) on 8 November 2022. Register here

LSX Inv€$tival ShowcaseTM on 14 November 2022 at Old Billingsgate, London EC3R 6DX. Poolbeg CEO, Jeremy Skillington, will present at 14:15 on Stage 4: Biotech Late Growth. Register here

 

Event details may be subject to change – further information and updates are available on the Poolbeg Pharma website here.

– Ends –

Enquiries

 

Poolbeg Pharma Plc

Jeremy Skillington, CEO

Ian O’Connell, CFO

 

 +44 (0) 20 7183 1499

finnCap Ltd (Nominated Adviser & Joint Broker)

Geoff Nash, James Thompson, Charlie Beeson

Nigel Birks, Harriet Ward (ECM)

 

+44 (0) 20 7220 0500

Singer Capital Markets (Joint Broker)

Phil Davies, Sam Butcher

 

+44 (0) 20 7496 3000

J&E Davy (Joint Broker)

Anthony Farrell, Niall Gilchrist

 

+353 (0) 1 679 6363

Instinctif Partners

Melanie Toyne Sewell, Rozi Morris, Tim Field

 

+44 (0) 20 7457 2020

poolbeg@instinctif.com

 

About Poolbeg Pharma

Poolbeg Pharma is a clinical stage infectious disease pharmaceutical company, with a unique capital light clinical model which aims to develop multiple products faster and more cost effectively than the conventional biotech model. The Company, headquartered in London, is led by a team with a track record of creation and delivery of shareholder value and aspires to become a “one-stop shop” for pharma and biotech seeking mid-stage products to license or acquire.

 

The Company is targeting the growing infectious disease market. In the wake of the COVID-19 pandemic, infectious disease has become one of the fastest growing pharma markets and is expected to exceed $250bn by 2025.

 

With its initial assets from Open Orphan plc, an industry leading infectious disease and human challenge trials business, Poolbeg has access to knowledge, experience, and clinical data from over 20 years of human challenge trials. The Company is using these insights to acquire new assets as well as reposition clinical stage products, reducing spend and risk. Amongst its portfolio of exciting assets, Poolbeg has a small molecule immunomodulator for severe influenza (POLB 001) which has commenced its LPS human challenge trial with initial results expected by year end 2022; a first-in-class, intranasally administered RNA-based immunotherapy for respiratory virus infections (POLB 002); and a vaccine candidate for Melioidosis (POLB 003). The Company is also developing an oral vaccine delivery platform and is progressing two artificial intelligence (AI) programmes to accelerate the power of its human challenge model data and biobank, with results from the first programme expected by year end 2022. 

October 2022 Investment Review – Alan Green talks to Ken Baksh

Former fund manager and market analyst Ken Baksh has over 30 years experience in the markets, and is widely respected for his insightful analysis and investing ideas. In the first of a series of monthly interviews with Alan Green, Ken offers his view on global economies before moving closer to home and asking whether the Karteng budget and Truss Government farce has damaged our international reputation as a financial powerhouse. Ken then provides an in depth look at the UK economy and what he sees as the difference between UK equities and the UK economy. Ken then provides his four stock picks for October, which include Legal & General #LGEN, Smith & Nephew #SN., Greencoat Wind #UKW and Begbies Traynor #BEG, and then provides potential action points for the cautious investor and options for income investors.

OCTOBER 2022 Market Report

Investment Review

Summary

During the one-month period to 30th September 2022, major equity markets, as measured by the
aggregate FTSE All – World Index, fell sharply 9.6%, taking the year-to-date loss to 26%, in $ terms.
All major equity declined with the UK, Europe and Japan marginally outperforming while China and
Emerging Markets fell over 12% during the month. The VIX index rose sharply, finishing the period at
a level of 31.62. Key equity market drivers were continued concerns over global economic growth, inflation, food crises, rising interest rates and political uncertainty. Government Fixed Interest stocks also fell over the month largely on inflationary, supply and specific UK related issues. The UK 10-year gilt ended the month on a yield of 4.13% (2.8% one month ago) with corresponding yields of 3.73%, 2.11% and 0.25% in USA, Germany, and Japan respectively. Speculative and lower quality bonds also mostly fell in price terms. Currency moves featured a weaker pound and stronger US dollar. Commodities mostly fell in price terms on revised economic
growth forecasts.

News

Over the recent month, there have been further significant official economic growth downgrades (graphs above) and growing anecdotal corporate evidence of difficult trading conditions. Central Banks have become more hawkish in battling stubbornly high inflation announcing interest rate hikes both sooner and higher than expectations in many cases.UK macro news was dominated by a ” mini budget”which was anything but…
All organizations highlight the considerable regional variation, the IMF for example talking of “severe recession” in parts of Eastern Europe and Italy on various natural gas scenarios, while the World Bank has speculated on the” possibility” of a global recession in 2023.The World Bank explores the possibilities of three world growth, per person, outcomes between +1.5% to -0.4% crucially dependant on the extent of Central Bank tightening, to tackle inflation.

US
Recent US Federal Reserve meetings and informal comments by Jerome Powell and other Fed governors have clearly become much more hawkish and several interest rate increases are expected over coming months. At the September 21st meeting the Fed raised the benchmark rate by 75 bp, for the third time in a row and signalled its intention to keep policy tight. Downward projections to economic growth, and upward moves to inflation forecasts were also released. Recently announced inflation indicators showed August headline CPI of 8.35%, higher than estimates, while the core inflation rate rose by 6.3% led by services. First quarter negative GDP growth followed by second quarter of -0.9% signals a “technical recession”, although labour / employment trends still seem robust. Recent consumer sentiment indicators, retail sales, housing activity, construction figures and the Empire States Survey, however, show declining trends into August/September. Independent economic forecasts are now expecting very low GDP growth for full year 2022 with the unemployment level rising to about 4.4%. The Fed’s own forecasts expect GDP growth of 0.2% and 1.2%, and core PCE growth of 4.5% and 3.1% respectively for 2022 and 2023

EUROPE
The European Central Bank raised interest rates by half a percentage point on July 22nd, and a further 75bp in September also pledging to support surging borrowing costs from sparking a eurozone debt crisis. Co-ordinated moves to help mitigate the gas crisis, including windfall taxes and energy pricing reforms are also being urgently discussed. First quarter 2022 GDP for the Eurozone showed a weaker than expected trend especially in Sweden, Italy and Germany and more recent indicators show a continuation of this trend into August and September, exacerbated by the Russia/Ukraine conflict, supply chain issues, and rapidly increasing costs. A technical recession seems inevitable.

Current ECB staff projections foresee economic growth of 2.8% for 2022, a sharp reduction on the previous forecast, and further downgrades could be likely in the wake of the ongoing Ukrainian conflict and related gas shortages. September Eurozone inflation, just released, of 10.0% (Holland15%) was higher than expected. Political events have included the election in Italy of Giorgia Meloni to the position of prime minister and head of a three-party right-wing alliance.

ASIA excl JAPAN
Unlike other major economic zones there have been no major economic downgrades within this region, (maybe a lagged effect) but there are a wide range of possible outcomes depending on commodity exposure, tourism, debt, Chinese linkages, US dollar effects, etc. Recent FT analysis shows that in four of the six biggest countries in ASEAN (Vietnam, Malaysia, Indonesia and Philippines), GDP is rising faster than inflation (see graph below) in contrast to the majority of the G10 countries. A sharp bounce back from the pandemic (Philippines), commodity exposure (Indonesian palm oil and coal), (Malaysian palm oil and rubber), and Thai (rubber) and shifting supply chains away from China (Apple iPads from Vietnam) are all factors behind the region’s resilience. The World Bank estimates that the Pacific ex China are could grow at 5.3% in 2022,higher than China.

CHINA
Chinese economic data over past months has cast strong doubts on the 5.5% official growth target for 2022, with some investment banks now forecasting below 3%. Official data covering the period
to end August showed weakening trends in consumer spending, fixed asset investment and construction activity while more recent “live” tracking data e.g., mobility, cement production and electricity use also showed subdued economic activity. Of note were the precipitous drops in real estate and related construction activity, where, at the time of writing, government and quasi government rescue packages are being put urgently into place The zero tolerance Covid policy has of course also had depressing effects on several economic sectors (see below). Various government
“economic support” measures have recently been introduced to soften these headwinds and the

2022 National Congress this autumn, starting on October16th, will be closely monitored for economic and political pointers. Further reinforcement of “common prosperity” and “anti corruption“ themes could lead to unpredictable government interference at short notice. “China’s most locked-down city exemplifies the perils of endless Covid Zero. Ruili’s residents saw seven lockdowns from March 2021 to April 2022 and have spent a total 119 days barred from leaving their homes for any reason—other than to test for Covid. Even today when they go out, all movements are tracked, partly by facial recognition cameras. And a once-porous border is now patrolled by thousands of guards, equipped with heat-seeking technology” -source Bloomberg

JAPAN
After fourth quarter GDP 2021 growth of 5.4% annualised, led by more buoyant consumer spending and a tentative manufacturing recovery, the first quarter 2022 figure showed a decline of 1.0% annualised, somewhat higher than some estimates, then followed by 2.2% in Q2 2022, largely consumer driven. Estimates for the full year seem to fall mainly within the 1.5%-2.0% band. Inflation, while still well below international peers, rose by 3.0%(core 2.8%) in August, led by fuel and food and the weakening Yen. Fiscal policy remains loose, and the BOJ recently reaffirmed its yield control policy, while keeping key interest rates at -0.1%. However recent verbal and actual intervention (see below-one day trading) suggest that Yen weakness (on relative interest and divergent policy grounds), is no longer a one-way bet!


UNITED KINGDOM
Within the UK, live activity data (e.g September Gfk data) shows a weaker overall trend, especially within the services sector. According to this survey, released late September, consumer confidence dropped to another new level (–49) amid the cost-of-living crisis. To put this into perspective, the low point during the height of the pandemic was -34!..people really are gloomy. Other data has also been uninspiring with flat GDP and industrial production to end July and poor August retail sales.Second quarter official GDP,just released ,show a gain of 0.2% rather than a previously announced decline of 0.1%. RICS and Nationwide have reported a definite slowing in housing activity and there are doubts that the tax cuts/ stamp duty/first time buyer, changes announced in the “so called”! mini budget will offset the inevitable mortgage effect going forward. Unemployment, however, is still at a very low level, although recent official figures did show a tentative slowing in hiring intentions and there could be other adjustments due to some working age people leaving the
work force permanently (health?).

Inflation continues to rise, the August CPI and core readings registering hikes of 9.9% and 6.3% respectively led by fuel and food prices. The British Retail Consortium reported on September 27th that prices hit a record high in September, rising 5.7% on the month, with food bills up 10.6%. The recently announced energy support package will at least take the heat out of some of the more extreme inflation forecasts as well as provide some financial relief. The PSBR was starting to deteriorate again, largely as a results of rapidly rising interest (index linked) payments and expectations of higher public sector pay and state pensions. Projections following the
September 23rd mini budget and energy support packages have ballooned, the Institute for Fiscal Studies for example expecting public borrowing to top £190 billion this financial year taking the Debt/GDP forecast near 100%. Official gilt sales were scheduled to start this month, although the BOE statement on 28th September, regarding “providing stability” actually calls for a short period of gilt buying!

The current account deficit for Q1 was the worst on record at 8.3% of GDP, another worrying sign. It will be interesting to see if sterling weakness since then has changed the aggregate figures. Despite some relief with the recent energy price package (but not other utilities) and budget related tax/NI cuts, shop price inflation, merchandise availability, upward interest/mortgage rate pressure, stalling house prices, accelerating rents, insolvencies/evictions, pension triple-lock suspension (22/23), legacy Brexit issues, strike activity, covid revival will continue to be headwinds and the outlook for economic growth over coming quarters is highly uncertain.

Experts at consultancy EY-Parthenon reported that company profit warnings had jumped over 65% during the first half of 2022 citing increasing costs and overheads as the main reason. The same consultancy also issued a worse case inflation forecast of 15%, even higher than that of Bank of England governor Bailey. Another report from Begbies Traynor quoted that 600,000 business were already in financial distress. Anecdotal evidence from reporting quoted companies at the interim stage show a very mixed trend, and in my view, the just announced mini-Budget will create another batch of winners/losers.

Monetary policy has tightened from a 0.1% interest rate in December last year to the 1.25% rate set in June and a further 50bp at the August, meeting, followed by 50bp in September, taking the benchmark rate to 2.25%. Markets were expecting rates to be above 3.5% by mid-2023, but following the mini-Budget, the feeling is that the Bank of England will need to be more aggressive and figures of 5.0% for both shorter term rates and the 10-year Government bond yield are not totally unrealistic.

Monthly Review of Markets

Equities
Global Equities fell sharply over September, extending the year-to-date decline to 26% in dollar terms, with large variation between countries and sectors. The major UK equity indices and Japan, while still declining, outperformed in relative terms while China and Emerging Markets registered price falls in excess of 10%. The VIX index jumped over the month to an end September at a level of 30.32. The nine- month gain of 75% reflects the degree of risk aversion compared with the” relative calm” of last December (medical, geo-political and economic!).

UK Sectors
Sector moves were very mixed over the month although virtually all ended in negative territory. Mining, oil and pharmaceuticals proved to be relatively defensive while real estate,telco’s, household goods and food fell sharply. The FTSE100 continued to outperform FT ALL-Share on the month and is outperforming on a year-to-date basis, by around 4% largely due to the international/resource bias of the former and the low expectations for the UK domestic economy. By IA sectors, UK active unit trusts are underperforming benchmark indices, trackers etc, so far this year, with small company funds even more so. Income based funds, by contrast, are outperforming the averages. “Balanced” funds, by IA definitions, are falling by about 12% so far this year (Source: Trustnet September 30th). Due to the unprecedented fall in gilt and related prices, defensive funds
are falling as fast as growth funds so far this year

Fixed Interest
Major global government bonds collapsed, in price terms over September, the UK 10-year yield for instance finishing the month at a yield of 4.13%. Other ten-year government bond prices showed closing month ten-year yields of 3.73%, 2.11% and 0.25%for US, German and Japanese debt respectively. The very sharp move in longer gilts, prompted by the “surprise” Budget caused some immediate stresses amongst pension funds, which was the major reason for the BoE to initiate some “emergency measures” and defer the scheduled gilt sales. Year to date, the composite gilt index has fallen approximately 26% marginally underperforming UK
higher quality corporate bonds. Check my recommendations in preference shares, selected corporate bonds,fixed interest ETF’s, zero-coupons, speculative high yield etc. A list of my top ideas from over 10 different asset classes
is also available to subscribers.

Foreign Exchange
Currency moves featured weakness in sterling and strength in the dollar, the actual cross rate between the two moving by over 4%. Currency developments during September also included verbal and actual intervention by the Japanese and Chinese authorities as well as the well-publicised UK FX volatility which at one stage saw the pound heading for parity to the dollar. The strength of the dollar largely on the increasingly hawkish US Federal Reserve is creating many distortions in developed and emerging markets alike.

Commodities
With the exceptions of corn, palladium and wheat, commodities were weak across the board. Year to date, some soft commodities, uranium and the energy complex are still showing good gains, but industrial metals such as copper, iron ore and aluminium are nursing losses of 23%,24% and 25% respectively.

Looking Forward
Longer term investment concerns regarding variable economic recoveries and inflation, with related interest rate/fiscal implications have superseded Covid worries, even though the latter is “far from over” in a global perspective. Further rounds of autumn vaccination are already underway in several Northern Hemisphere locations. Shorter term, Ukraine issues are adding to equity, bond, currency and significantly, commodity, variability while UK assets, following the election and recent mini Budget seem likely to remain volatile for several weeks (currency, bond and equities).

Major central banks have turned much more hawkish with reducing QE and accelerating the timing and extents of rate increases, especially where inflation control is the sole mandate. In a growing number of smaller economies where US contagion, politics, commodity exposure inflation/fx are also issues, several official increase rate increases have already taken effect. Japan, however, has continued to adopt stimulative measures, up to now. Global Government Bonds have started to weaken again in price terms, with longer maturity debt now falling significantly as well as shorter term paper. Absolute yield levels, however, still look low when inflation, government supply and quantitative tightening are considered, especially regarding the UK, where new government policies, seem likely to fuel inflation, increase government borrowing, weaken the currency and possibly lead to greater than expected interest rate hikes. For equities, the two medium term key questions will be when rising interest rates eventually cause equity derating/fund flow switches, government, corporate and household problems, and how the rate of corporate earnings growth develops after the initial snapback. Going forward, withdrawal of certain pandemic supports, uncertain consumer and corporate behaviour and cost pressures are likely to lead to great variations by sector and individual company.

Observations/Thoughts
ASSET ALLOCATION
As well as maintaining an overweight position in UK equities, it may be worth initiating or adding to Japanese positions within an international portfolio. The US market has fallen about 24% so far this year (NASDAQ -31%) but remains a relative underweight in my view. Margin pressure headwinds, political uncertainty and technology sector volatility must be balanced against the current stock market ratings. Continental European equities appear cheaply rated in aggregate, but great selectivity is required. Current Ukraine tensions have opened new opportunities within the emerging market space, but extreme caution warranted. Latin America and parts of Asia, for example, have enjoyed economic rebounds, revived tourism, some commodity exposure, and little negative Ukraine spill over and this has been reflected in some indices e.g Latin America.

Another major asset allocation decision would be to replace part of the conventional “fixed interest” portion with alternative income plays in the infrastructure, renewables, and specialist property areas. Many instruments in this area provide superior capital growth, income, and lower volatility than gilts for example. I am also adding selected preference shares to the “fixed interest” allocation, where annual yields of approximately 6% are currently available after the recent bounce in prices.

UK EQUITIES/GILTS
At this time of writing, with so many political, economic unknowns (and rapidly moving developments), there will be a high degree of error in any forward looking economic/investment strategy/sector/stock projections, but I would heroically attempt to present the current picture as I see it.

• The historic “hard data” is poor up to the end of September, and remember that these are the “facts”that the OBR will use in their base case not to be overly distracted by current political noise and spin.
• Several headwinds I outlined on page 7, are still very appropriate, (though forgotten by several commentators), and importantly, predate issues of energy prices….and then interest rates/mortgage payments.
• Short and long term interest rates were abnormally low until recent months…still a global QE effect, plus slow Central Bank reactions to inflation
• Biting my tongue to avoid any political comment, the first attempt (I will call it that) at the budget of the new government proposed tax cuts, with very little information on revenue raising…. immediate cue for UK asset volatility.
• Understandably, international observers (important gilt holders and the IMF) want to know more, as does the OBR, who seem to have been side-lined (or worse).Kwarteng will have to convince a sceptical OBR that his 2.5% medium term growth plan can be achieved through supply side reforms, while still remaining fiscally responsible. Remember that the OBR was predicting only 2.0% sustainable growth in March when the economy was much stronger.
• The Bank of England, with its main remit of price stability, would be inclined to put-up short-term interest rates even higher than originally planned. One of the IMF objections to the proposed fiscal package was the likely conflict with the Bank of England.
• My best guess now is that there may be some behind the scenes conversations between OBR and government, possibly some back tracking or even personnel moves and further detail on Govt spending/saving before the rather too distant date of November 23rd
• BoE will temporarily put gilt selling on hold, but expect volatility, both during after the stated time period (14th October).

The recent (September 23rd) budget and subsequent chain of events has reinforced my long standing view that equities should currently be favoured over gilts, despite the large outperformance already this year with a loss of just 6.7% for the FTSE 100 versus a 26% decline for the All Gilt Index. Both figures exclude income, which would in fact show UK equities in an even better light. Holders of “balanced funds” should assess whether their current asset mix is appropriate. However, it feels rather late to open new short positions in Fixed Interest and some more conservative/income oriented may start looking more closely at certain fixed interest products, that have fallen to sustainably attractive yield bases

Equities continue to remain a relative overweight in my view, based on several conventional investment metrics (see above), longer term underperformance since the Brexit vote, style preference (value overgrowth) and international resource exposure although be aware of the numerous domestic headwinds I have highlighted above. Value should be favoured over growth, and the FTSE 100 favoured over the FT All-Share. Apart from the style drift, remember that the non sterling element of leading FTSE 100 companies and sectors is relatively high By sector, Oil and Mining equities continue to benefit from above average yields, strong balance sheets, dollar exposure and secular demand e.g copper, cobalt for electronics, construction, electric vehicles etc

Remain overweight in pharmaceuticals and underweight in non-renewable utility stocks which may suffer from consumer and government pressures, and no longer trade on yield premia, especially against the back drop of rapidly rising gilt yields. Construction materials, especially cement will benefit from growing infrastructure/renewable initiatives.
Banks, may enjoy some relative strength from rising interest rates, but continue to monitor the recession/loan growth and default risks. Preference Shares as well as ordinary shares have attractions in this area

Housebuilders and real estate-expect depressed activity and remember that the rising interest rates have not yet been fully factored into bricks and mortar property yields. Some property company corporate bonds however have shown some immediate weakness.
Weak sterling and changes re Duty Free rules should positively affect certain tourism/luxury good companies.
Domestic Breweries/pubs etc are having a hard time with stalling consumer’s expenditure,supermarket competition and rapidly rising costs. Airlines may suffer as a result of large dollar costs, uncertain foreign travel outlook and often high debt levels

Extra due diligence at stock level more generally will be required as I expect a growing number of profit warnings and downbeat forward looking statements. Takeover activity is also clearly increasing with, for example, private equity snapping up UK-listed companies at the fastest pace for more than twenty years. Foreign takeover, stake building is also increasing, current weak sterling being a factor, with Vodafone under scrutiny by a French (who already have BT interest!) investor.Biffa(waste management),MicroFocus(technology),Aveva(software) and RPS(professional services) have all succumbed to foreign takeovers in recent months, much by “strong dollar” American or Canadian organizations.

Gilts

It is difficult to see value in conventional gilts now against the current inflation and debt/GDP ratios, and the supply expected over coming months. At some stage however, institutional asset/liability considerations, and equity to bond switching may reappear. Ten-year gilt yields of 4.13% do appear more attractive now against
a current FTSE 100 yield of 3.9% than the 0.97% gilt yield at the beginning of the year.

JAPANESE EQUITIES

also remain an overweight in my view, although my recent comment re hedging may “nuanced “now following the extreme currency weakness and surprise intervention. Unlike most other major economies, Japan is expected to continue its easy money policy. Exporters have benefitted from the plunging Yen although higher
input costs and more “off-shoring” also must be considered. The price/book ratio of 1.20 is attracting interest of corporate and private equity buyers, while the prospective yield of 2.8% is above the world average and compares very favourably with USA (1.8%). Corporate governance is rapidly improving with diverse boards, reduction of cross holding, higher dividends etc. Private equity stake building interest in Toshiba and growing activity in the property sector (discount on a discount in a cheap currency) demonstrate the search for value in Japan.


On a valuation basis (see table above) the forward PE multiple of 12.1 is at a considerable discount to the world, and especially US average

EMERGING MARKETS– Very difficult to adopt a “blanket” approach to the region even in “normal times”, but especially difficult now, with so many different COVID, commodity, sectoral mix, debt, geo-political and increasingly natural disaster variables. Interestingly the rush into Emerging Market assets, both bonds and equities, at the start of 2021 moderated through the year and into 2022 as many dramas have unfolded e. g South Africa, Turkey, Ukraine, Chinese regulation. This latter factor has special relevance to those using Emerging Market Benchmark Indices. The IMF recently warned that several emerging nations could disproportionately suffer from a combination of COVID and adverse reaction to “tapering” by developed counties e.g., FX/Interest rate pressures. Six countries have already defaulted during the pandemic, and the IMF is currently in various stages of bail-out discussions with Pakistan,Argentina,Zambia,Sri Lanka,Ghana,Tunisia and Egypt. However, within the emerging space, I continue to have a relatively favourable longer term view on Asia, where relative COVID success, stable FX,inward investment, lower relative inflation and export mix help investor sentiment

Vietnam, for example, is supported by positive demographics, with a population of near 100 million, an emerging middle class, and a recipient of strong foreign direct investment. Qualconn,an Apple supplier, Intel(semi-conductors),Lego and Samsung(mobile phone plant) have all recently invested in new capacity in the
country. Other big names moving chunks of production from China to Vietnam include Dell and HP(laptops),Google(phones)and Microsoft (Games Consoles) The economy is expected to grow at around 6.5% this year (7.7% Q2 2022) and current inflation is running at about 3.5%. On a relatively low prospective PE based on forecast earnings growth over 20%, Vietnamese equities appear good value. India, although quite highly
rated and a major oil importer, warrants inclusion in a diversified portfolio, and is
currently receiving some fund flows from “overweight” Chinese portfolios.
Indonesia,the last of my current Asian ideas benefits from a commodity boom, strong
domestic market, low debt, relatively stable currency, forecast 5% GDP growth and 5%
inflation

Caution is required in many South American markets with poor COVID-19 situations,
deteriorating fiscal balances and inefficient governments, many of which are up for
change. However, some stock market valuations currently appear interesting in the
region, which, so far, has been relatively unaffected by events in Ukraine. Commodity
exposure, deglobalization beneficiary, valuation and recovery from a very low-level
account for some year-to-date stock market relative out- performance.
Certain areas within Central Europe are starting to receive more attention, mainly on
valuation grounds, but the lingering Covid effects and indirect effects of the
Russia/Ukraine invasion should be borne into account. Regarding the latter, a
reduction/termination of Russian gas supply could have a serious recessionary impact
in certain countries. Large refugee influxes e.g Poland are also starting to create
budgetary/social issues.
Comments re great selectivity above also apply to emerging market debt. For the
more adventurous fixed interest investor combinations of well above average yields
(sometimes caused by pre-emptive moves last year), stable fiscal and FX situations
and, diversified economic models could provide outperformance from carefully
selected bonds.JP Morgan is sounding out big investors on adding India to its
emerging market bond index with an announcement due in October. This could have a
dramatic effect on inflows into Indian debt.

COMMODITIES- Gold spiked to over $2000 in March, a recent high, when Russia
invaded Ukraine, but has since fallen about 17%. Global gold ETF’s continue to
experience outflows) with other inflation “hedges” available, this zero yielding asset
seems likely to remain friendless. The longer-term prospects for more cyclical plays
continue to look brighter. Increased renewable initiatives, greater infrastructure
spending as well as general growth, especially from Asia, are likely to keep selected
commodities in demand at the same time as certain supply constraints (weather,
labour and equipment shortages, Covid, transport) are biting. Anecdotal evidence from
reporting companies RTZ, BHP and Anglo American appear to suggest that the industry
is enjoying a bumper time, and with disciplined capex programmes, extra dividends
and share buy-backs are commonplace! In the short term there could be additional
supply disruption in the areas of natural gas, palladium, nickel, aluminium, potash and
certain foodstuffs. It should be remembered that commodity investment is inherently
volatile.

• Wheat and other grain prices have fallen from the levels reached following the Russian
invasion of Ukraine, but the current shipping “truce”, planting/harvesting schedules
within the region and extreme global meteorological conditions are expected to lead to
further price volatility. If the conflict is prolonged it will affect millions of people living
in such places as Egypt, Libya, Lebanon Tunisia, Morocco, Pakistan and Indonesia that
could have political consequences. There has been renewed interest in agricultural
funds as well as the soft commodities themselves.

GLOBAL CLIMATE CHANGE remains a longer-term theme, and will be built into
the many infrastructure initiatives, being pursued by Europe, USA, and Asia. The
Russia/Ukraine conflict is accelerating the debate, and hopefully the action. There are
several infrastructure/renewable investment vehicles which still appear attractive, in
my view, combining well above average yields and low market correlation with low
premium to asset value. The recent volatility in natural gas prices has highlighted both
risks and opportunities in the production and storage of energy from alternative
sources. However, increasing levels of due diligence are required, in committing new
money to the area overall. Financial watchdogs across the world are sharpening their
scrutiny of potential “greenwashing” in the investment industry on rising concerns that
capital is being deployed on misleading claims.
• However, in the shorter term, the Russian invasion of Ukraine has precipitated a global
energy crisis, that has forced countries, especially in Europe to look for ways to quickly
wean themselves off Russian oil and gas, and reconsider timelines of commitments to
cut the use of fossil fuels. At the time of writing, it seems highly likely that USA will
increase oil and gas output, UK North Sea may see further investment and EU coal
consumption could increase.
• Another area currently in the ESG purist cross hairs is “nuclear”. Ignoring the fact that
nuclear weapons have not been used in anger since 1945, and the fact that some
deterrent is needed, (now?), where should the confused investor stand when it comes
to nuclear power substituting coal power? Japan, UK and Germany are all studying
proposals to revive their nuclear power capacities. I have some interesting “uranium
play” ideas for those interested.

ALTERNATIVE ASSETS-this group, encompassing private equity, private debt,
hedge funds, real estate, infrastructure, and natural resources is expected to continue
growing both in actual and relative terms over coming years.
Traditional asset management groups are racing to expand offerings in alternative
investments as they seek to boost profitability and head off competition from private
equity groups (see graph below).
I have, for a while, recommended some exposure to this area maybe as part of the
former “gilt allocation”. With strong caveats re liquidity, transparency, dealing
process, I still adopt this stance, continuing to use the investment trust route. So far
this year, gilts have declined approximately 20% while my favoured UK renewable
closed-end funds have appreciated by around 15% in capital terms and delivered
about 6% in annual income. Please contact me directly for specific ideas

COMMERCIAL PROPERTY- The most recent MSC/IPD UK Property Index up to the
end of July 2022 showed a monthly total return of -0.6% across all properties, 9.0%
total return year to date, thus building on the 21.9% return experienced for full year
2021.This was the first monthly fall in capital values since October 2020.Capital values
of Industrial properties in both the Southeast and Rest of UK decreased 1.9% over the
month. Rents grew on average at an annualised rate of 3.7% p.a in July with Gains in
Industrial rents broadly offsetting rents in the Office and Retail sectors.
Several analysts are down grading their estimates for the sector following the rapid move
in UK longer and shorter-term interest rates. Property asset valuations take time to
materialise where there is a lag between balance sheet date and results publication in
the listed area. Live traded property corporate bonds, however, have already moved
sharply lower.
Full asset allocation and stock selection ideas if needed for ISA/dealing accounts, pensions.
Ideas for a ten stock FTSE portfolio. Stock/pooled fund lists for income, cautious or growth
portfolios are available. Hedging ideas, and a list of shorter-term low risk/ high risk ideas
can also be purchased.
I also undertake bespoke portfolio construction/restructuring and analysis of legacy
portfolios.
Independence from any product provider and transparent charging structure
Feel free to contact regarding any investment project.

Good luck with performance!
Ken Baksh Bsc,Fellow (UK Society of Investment Professionals)

To receive Ken’s views on daily market moves, macro and stock ideas, and of course launch offers for his upcoming subscription service please submit your details here:

1st October ,2022
Important Note: This article is not an investment recommendation and should
not be relied upon when making investment decisions – investors should conduct
their own comprehensive research. Please read the disclaimer.

Disclaimer: Opinions expressed herein by the author are not an investment
recommendation and are not meant to be relied upon in investment decisions.
The author is not acting in an investment, tax, legal or any other advisory
capacity. This is not an investment research report. The author’s opinions
expressed herein address only select aspects of potential investment in
securities of the companies mentioned and cannot be a substitute for
comprehensive investment analysis. Any analysis presented herein is illustrative
in nature, limited in scope, based on an incomplete set of information, and has
limitations to its accuracy. The author recommends that potential and existing
investors conduct thorough investment research of their own, including detailed
review of the companies’ regulatory filings, and consult a qualified investment
advisor. The information upon which this material is based was obtained from
sources believed to be reliable but has not been independently verified.
Therefore, the author cannot guarantee its accuracy. Any opinions or estimates
constitute the author’s best judgment as of the date of publication and are
subject to change without notice. The author may hold positions in any of the
securities mentioned
The author explicitly disclaims any liability that may arise from the use of this
material.

#TEK Tekcapital Plc – Lucyd – Global Licensing Agreement Nautica Brand

Tekcapital Plc (AIM: TEK, OTCQB: TEKCF), the UK intellectual property investment group is pleased to announce Innovative Eyewear, Inc. (“Innovative Eyewear”) (NASDAQ: LUCY; LUCYW), a developer and retailer of cutting-edge smart eyewear and a subsidiary of portfolio company Lucyd Ltd, has licensed the global lifestyle brand Nautica® for smart eyewear.

 

“The Nautica smart eyewear line will stay true to the brand essence of bringing the inspiration of the sea into smart eyewear that is modern and innovative,” says Harrison Gross, CEO of Innovative Eyewear, Inc. “Our Nautica® smart eyewear collection, powered by Lucyd®, will align perfectly with today’s lifestyle, as we believe consumers are looking for designer eyewear that allows them to reman connected to their digital lives.”

 

The Nautica smart eyewear collection is expected to launch for Holiday 2022 or soon thereafter. 

 

About Nautica®

Nautica is a leading global lifestyle brand for men, women, and children, which includes home bedding collections. As a nautical-influenced classic American sportswear brand, we inspire and enable people to experience the joy of water. Nautica is one of the most recognized American brands throughout the world, with over 35 categories available in more than 65 countries with 76 Nautica stores and 291 International stores, and over 1,400 Nautica branded shop in shops worldwide. For more information, please visit https://www.nautica.com/.

 

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer and retailer of smart eyewear, which are designed to allow the users to remain connected to their digital lives, while also offering prescription eyewear and sun protection. The Company believes that traditional frames, no matter how attractive, do not possess the functionality that many eyeglass wearers need and want. Smart eyewear is a multifunctional product that addresses the needs of the optical, hearables and digital assistant markets. We believe that the Company’s products are well positioned in this rapidly growing wearables ecosystem, with the mission to Upgrade Your Eyewear®. For more information, please visit www.lucyd.co .

 

Tekcapital currently owns 100% of the share capital of Lucyd Ltd and 5,189,086 shares (approximately 71%) of its U.S. operating subsidiary, Innovative Eyewear, Inc.  

For further information, please contact:

 

Tekcapital Plc  

Via Flagstaff

Clifford M. Gross, Ph.D. 

SP Angel Corporate Finance LLP

(Nominated Adviser and Broker)

+44 (0) 20 3470 0470  

Richard Morrison/Charlie Bouverat (Corporate Finance)/Abigail Wayne / Rob Rees (Corporate Broking)

 

 

Flagstaff Strategic and Investor Communications

 

+44 (0) 20 7129 1474

Tim Thompson/Andrea Seymour/Fergus Mellon

 

 

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed discoveries that can enhance people’s lives and provides a range of technology transfer services to help organisations evaluate and commercialise new technologies. Tekcapital is quoted on the AIM market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in the UK. For more information, please visit www.tekcapital.com .

 

#KAV Kavango Resources Plc – KCB – Drill Rig Mobilisation

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce that Mindea Exploration and Drilling Services Pty (“Mindea”) has mobilised the multi-purpose drill rig (the “Rig”) for the Company’s maiden drill campaign in the Kalahari Copper Belt (“KCB”).

PL082/2018 is one of Kavango’s most advanced prospecting following extensive surface exploration and geophysical surveying across the entire area.

The Rig has been mobilised to conduct a first phase drill programme on PL082/2018, where Kavango is targeting a potential analogue to Khoemacau’s Banana Zone deposit. The Banana Zone deposit sits immediately to the south of Ghanzi Ridge and exhibits similar geophysical characteristics to survey data acquired by Kavango over PL082/2018.

HIGHLIGHTS

–     Drill rig mobilisation

–     Mindea has deployed a rig capable of reverse circulation (“RC”) and diamond core (“DC”) drilling to PL082/2018

–     Drill camp and first drill pad prepared

–     First phase drilling programme

–     Drilling to commence no later than 9 October

–     Expected completion by early November

–     Up to 6 holes (est. 1,250m) designed to test the Northern and Central anomalies (announced >>> 29 September 2022)

–     CSAMT

–     Kavango has also commenced a Controlled-Source Audio MagnetoTelluric (“CSAMT”) survey of up to 17 line-km over PL082/2018

–     Goal is to map subsurface structures to optimise drill orientation

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

In keeping with our ambitions in the Kalahari Copper Belt, we have moved fast to mobilise the rig. The speed at which we are able to work demonstrates how much progress we’ve made over the past year.

PL082/2018 is our best immediate target in the KCB. It is our most advanced licence and demonstrates the best geology at surface, which we hope could prove to be telling.

We’ve achieved near total coverage across this licence in terms of geophysical surveying, geological mapping and soil sampling. While the CSAMT survey could yet still provide a new valuable data source, we are confident in the targeting work we’ve completed to date/

We expect this first phase drill programme will last around a month, with samples sent immediately for laboratory testing. Results from this will guide future drilling.

In the meantime, our team in the field has worked hard over the last week to finalise preparations. The drill camp is set up, the first pad is prepared, and the rig is on course to commence its work later this week.

Drilling is always the most exciting activity for any exploration company, and we look forward to what the next few weeks will bring.”

First phase drill programme details

Under the terms of its contract with Kavango, Mindea has mobilised its multi-purposed rig for a first phase drilling programme (the “Drill Programme”) on PL082/2018 in the KCB. Kavango has established an exploration camp in the drilling area and cleared the first drill pad.

The Drill Programme will consist of an initial 6 holes for 1,250m of drilling designed to test 2 discrete copper geochemical anomalies (the “Target Zones”), which are aligned with mapped underlying geology at PL082/2018 (announced >>> 26th August 2022).

The details of the Target Zones are as follows:

I) Central Zone   (Cu: >30ppm, Max 118.8ppm)

–     Follows the geological trend of a sub outcropping anticline. This anticline forms the dome that hosts the Zeta and Plutus copper deposits located by Discovery Metals to the North East. The elevated copper values are postulated to represent a possible leakage zone from an underlying redox contact

–     The unit has been mapped to extend over the length of PL082/2018, extending over 27km, and is also characterised by a zone of elevated magnetic response

–     Infill soil sampling (announced >>> 29th September 2022) confirmed elevated readings along the Target, further strengthening its prospectivity

II) Northern Zone   (Cu: >30ppm, Max 39.7ppm)

–     A robust anomaly occurring in an area with no outcrop (under Kalahari cover) on the edge of a magnetic high that bears similarities to the Ourea and Quirinus copper deposits identified by Discovery Metals in 2009. These deposits are interpreted to be on the limbs of tight anticlines

–     Previous work by Kavango identified an Airborne ElectroMagnetic (“AEM”) conductor, which coincides with the geochemical northern zone identified in this latest work

–     Infill soil sampling confirmed that the Target extends over 9km of geological strike length and has a maximum width of 650m, which may comprise up to three separate parallel anomalies, with a peak value of 43ppm Cu (pXRF values)

Drilling is expected to complete by early November. Upon completion, samples will be sent to an internationally accredited laboratory for testing.

Kavango has so far identified 188 drill collar locations and aims ultimately to complete up to 37,600m or RC and diamond drilling (announced >>> 30th September 2022). These locations are centred on 14 priority target areas delineated across 4 of the Company’s 12 KCB licences, where field exploration is ongoing.

CSAMT details

Kavango has also initiated a CSAMT survey of up to 17 line-km within PL082/2018. The Company’s objective is to provide resolution of the anticipated anticline structure and to ensure optimal drill orientation.

Further information in respect of Kavango and its business interests is provided on the Company’s website at  www.kavangoresources.com  and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson   

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

#ORPH Open Orphan plc – Positive in vitro results for FLU-v published

Open Orphan plc (AIM: ORPH), (to be renamed hVIVO plc (AIM: HVO) effective 26 October 2022), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces that positive data from a peer-reviewed study evaluating the in vitro efficacy of FLU-v, Imutex Limited’s (“Imutex”) broad spectrum influenza vaccine, has been published in the scientific journal Vaccines.1

 

Previous clinical studies have demonstrated that FLU-v induced increased antibody and cellular responses in vivo. This placebo-controlled study evaluated the ability of FLU-v to induce cellular effector functions and cross-reactivity (both measures of the immune response, with cross-reactivity being particularly important for protection against multiple viral strains) of immune cells extracted from participants, following exposure to five different influenza strains.

 

The study found that measurements of IFN-γ and granzyme B production in stimulated immune cells from participants that had been previously vaccinated with either FLU-v or placebo, were significantly higher in the FLU-v group both when stimulated with vaccine antigen and also with antigens from a panel of seasonal and pandemic inactivated influenza A and B strains. These results further support the continued development of FLU-v as a broad-spectrum influenza vaccine.

FLU-v is owned by Imutex, a joint venture between hVIVO and PepTcell Limited (the legal name of SEEK Group), to develop vaccines against influenza and mosquito borne diseases such as Zika virus, malaria and other flaviviruses.

Seasonal influenza causes significant morbidity and mortality each year and a pandemic influenza continues to pose a worldwide threat. Influenza is a serious global health threat with an estimated 1 billion cases per year, 3-5 million severe cases and 290,000 – 650,000 deaths per year.

 

Dr Andrew Catchpole, Chief Scientific Officer of hVIVO, said: “It is encouraging to see further positive data for FLU-v, supporting its continued development as a broad-spectrum influenza vaccine. There is a large unmet need for a broad-spectrum vaccine to help battle emerging seasonal and pandemic influenza A and B viruses. Although FLU-v had already produced successful Phase II clinical data, this in vitro study is particularly important as it showed the ability of the candidate to induce an immune response against a diverse variety of influenza A and B strains.”

 

 

1. Oftung, F.; Næss, L.M.; Laake, I.; Stoloff, G.; Pleguezuelos, O. FLU-v, a Broad-Spectrum Influenza Vaccine, Induces Cross-Reactive Cellular Immune Responses in Humans Measured by Dual IFN-γ and Granzyme B ELISpot Assay. Vaccines 2022, 10, 1528. https://doi.org/10.3390/vaccines10091528  

 

 

For further information please contact:

 

Open Orphan plc

+44 (0) 20 7756 1300

Yamin Khan, Chief Executive Officer

 

Walbrook PR (Financial PR & IR)

Stephanie Cuthbert / Phillip Marriage /
Louis Ashe-Jepson

+44 (0)20 7933 8780 or openorphan@walbrookpr.com

+44 (0) 7796 794 663 / +44 (0) 7867 984 082 /
+44 (0) 7747 515 393

#KAV Kavango Resources PLC – KCB maiden drill programme

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce its maiden drill campaign in the  Kalahari Copper Belt (“KCB”).

The Company has signed a contract with Mindea Exploration and Drilling Services Pty (“Mindea”) for the first phase of drilling on licence PL082/2018. Kavango’s technical team believes this prospecting licence (“PL”) is a possible analogue to Khoemacau’s Banana Zone deposit.

HIGHLIGHTS

–     Contract signed with Mindea for maiden KCB drill campaign

–     Mindea to deploy a multi-purpose rig, capable of both diamond core (“DC”) and reverse circulation (“RC”) drilling

–     First phase drill programme

–     Up to 6 holes (est. 1,250m) on PL082/2018, as first phase of 37,600m drill strategy (announced >>> 28 September 2022)

–     Drilling to commence no later than 9 October

–     Expected completion by early November

–     Samples to be sent to an internationally accredited laboratory for testing

–     Drill Targets

–     Two discrete copper geochemical anomalies, which align with mapped regional geology (announced >>> 26 August 2022)

–     Northern Zone: 9km strike length with maximum width of 650m

–     Central Zone: 27km strike length extending over length of PL082/2018

–     Peak soil sample value of 118.8ppm Copper (“Cu”) (pXRF values)  

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

Our technical team has worked extremely hard to maximise our chances of making one or more copper discoveries in the Kalahari Copper Belt. Our thorough exploration programme over the last 18 months has delivered 14 priority targets and I am now delighted to announce our maiden KCB drill campaign.

This is a significant achievement for Kavango. Following our successful drilling in the Kalahari Suture Zone and at Ditau in H1, we are on course to have drilled all three of our projects during 2022.

We are very happy to have partnered again with Mindea. Mindea has been active in the KCB over recent months with some notable successes. This work has recently paused, so we took advantage of that break to initiate drilling on PL082.

We are very fortunate that Mindea has been using a multi-purpose rig on its other job, as this is exactly what we need to optimise our programme as it develops. The timing has also worked out very well, allowing us to drill so soon after the latest positive exploration results from this licence.

Our technical team has done a superb job in identifying such significant drill targets. The alignment of coincident geological, geochemical and geophysical data sets is decidedly encouraging at this stage.

We now approach our first phase drilling on the KCB with a high degree of confidence and look forward to mobilising the rig as soon as we can.”

First phase drill programme details

Kavango has signed a contract with Mindea for a first phase drill programme, consisting of an initial 1,250m of drilling on PL082/2018 in the KCB.

Mindea has been active in the KCB over recent months, with a multi-purpose rig capable of both diamond core and RC drilling. Kavango has been able to take advantage of a pause in that programme to engage Mindea to mobilise the rig to PL082/2018 for the first phase drill programme. Kavango intends to use the same rig for future drilling in the KCB, subject to its availability.

The Company’s technical team believes that PL082/2018 is a possible analogue to Khoemacau’s Banana Zone deposit. The Banana Zone deposit sits immediately to the south of Ghanzi Ridge, and has been reported as having an estimated total mineral resource of 55.8Mt @ 1.1% Cu & 16.4g/t Ag.

The first phase drill programme will focus on testing two discrete copper geochemical anomalies (the “Targets”), which are aligned with mapped underlying geology at PL082/2018. The Company has validated and improved the definition of the Targets through a follow-up infill soil sampling programme (announced >>> 29th September 2022).

The details of the Targets are as follows:

I) Central Zone   (Cu: >30ppm, Max 118.8ppm)

–     Follows the geological trend of a sub outcropping anticline. This anticline forms the dome that hosts the Zeta and Plutus copper deposits located by Discovery Metals to the North East. The elevated copper values are postulated to represent a possible leakage zone from an underlying redox contact

–     The unit has been mapped to extend over the length of PL082/2018, extending over 27km, and is also characterised by a zone of elevated magnetic response

–     Infill soil sampling has confirmed elevated readings along the Target, further strengthening its prospectivity

II) Northern Zone   (Cu: >30ppm, Max 39.7ppm)

–     A robust anomaly occurring in an area with no outcrop (under Kalahari cover) on the edge of a magnetic high that bears similarities to the Ourea and Quirinus copper deposits identified by Discovery Metals in 2009. These deposits are interpreted to be on the limbs of tight anticlines

–     Previous work by Kavango identified an Airborne ElectroMagnetic (“AEM”) conductor, which coincides with the geochemical northern zone identified in this latest work

–     Infill soil sampling confirmed that the Target extends over 9km of geological strike length and has a maximum width of 650m, which may comprise up to three separate parallel anomalies, with a peak value of 43ppm Cu (pXRF values)

Drilling is expected to commence by 9th October.

Kavango is also mobilising Controlled-Source Audio MagnetoTelluric (“CSAMT”) equipment to PL082/2018 and expects to complete up to 17 line-km of surveys. The Company’s objective is to provide resolution of the anticipated anticline structure and to ensure optimal drill orientation.

Next steps

The first phase drilling programme at PL082/2018 initiates commencement of Kavango’s comprehensive KCB drill strategy (announced >>> 27 September 2022).

The Company has so far identified 188 drill collar locations across the KCB and aims ultimately to complete up to 37,600m of RC and diamond drilling. These locations are centred on 13 priority target areas delineated across four PLs (PL082/2018, PL036/2020, as well as the “Mamuno” licences (PL049/2020 and PL052/2020)).

Kavango will continue further field exploration across all 12 of its PLs in the KCB in parallel with any drilling. The Company expects to add more target areas and drill collar locations to its inventory as this work progresses.

About Mindea

Mindea Exploration and Drilling Services (Pty) LTD was formed in September 2019 by Equity Drilling Limited and Maureen Mokgaotsane (Geologist), Sebanka Lobatlamang (Geologist) and Eddie Babuseng (Attorney at Law) to provide complete exploration solutions to its clients in Botswana.

Mindea is currently operated under the Botswana Citizen Economic Empowerment Policy and is owned 51% by local shareholders and 49% by Equity Drilling. Over the coming years, it is expected that Botswana nationals will wholly own Mindea, with Equity Drilling continuing to provide strategic and technical support.

Mindea operates to strict international safety standards and deploys the latest equipment to its projects. Mindea is rigorous in its planning and site preparation.

Reflecting the quality of its operations, Mindea has recently been awarded a 3-year contract by Debswana to drill various national projects in Botswana. In addition to this, Mindea is a regular drill contractor for DeBeers.

Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc                                                                                     

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson              

SI Capital Limited (Joint Broker)                                                                          

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

#ORPH Open Orphan PLC – Director dealings

Open Orphan plc (AIM: ORPH), (to be renamed hVIVO plc (AIM: HVO) effective 26 October 2022), a rapidly growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announces that it has received notification that on 29 September 2022, Yamin ‘Mo’ Khan, Chief Executive Officer of the Company, purchased 510,204 ordinary shares of 0.1 pence each in the capital of the Company (“Shares”) at a price of 9.8 pence per Share. Following the purchase of shares Mo holds 510,204 ordinary shares representing approximately 0.08 per cent of the Company’s issued ordinary capital.

 

Yamin ‘Mo’ Khan, Chief Executive Officer of Open Orphan plc, said: The purchase of shares in the Company demonstrates both my commitment and my confidence in our long-term growth strategy. Since my appointment as CEO in February 2022, we have made significant progress, delivering continued growth and a record orderbook valued at c.£80m as of 1 September, which provides excellent forward visibility into H2 2022 and 2023.”

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (as implemented into English law) (“MAR”). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

For further information please contact:

 

Open Orphan plc

+44 (0) 20 7756 1300

Yamin Khan, Chief Executive Officer

Liberum Capital (Nominated Adviser and Joint Broker)

 +44 (0) 20 3100 2000

Ben Cryer/ Edward Mansfield/ Phil Walker/ Will King

finnCap plc (Joint Broker)

+44 (0) 20 7220 0500

Geoff Nash / James Thompson / Richard Chambers

Davy (Euronext Growth Adviser and Joint Broker)

+353 (0) 1 679 6363

Anthony Farrell

Walbrook PR (Financial PR & IR)

Stephanie Cuthbert / Phillip Marriage /
Louis Ashe-Jepson

+44 (0)20 7933 8780 or openorphan@walbrookpr.com

+44 (0) 7796 794 663 / +44 (0) 7867 984 082 /
+44 (0) 7747 515 393

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