Archive for Financial News

Three New Mineralized Zones Discovered at Quebec Asset

Source: Streetwise Reports   01/14/2021

Troilus Gold’s exploration work at its Troilus project in 2020 is reviewed in a Canaccord Genuity report.

Troilus map

In a Jan. 4 research note, Canaccord Genuity analyst Tom Gallo reported Troilus Gold Corp.’s (TLG:TSX; CHXMF:OTCQB) exploration progress in 2020 and the available results.

Gallo presented the highlights of Troilus Gold’s exploration work conducted last year. The Toronto-based company discovered three new high-grade gold zones at its Troilus Gold project, Beyan, Goldfield Boulder and Testard, through its efforts during the summer, including a 23,000 kilometer airborne survey and sampling. He briefly described each.

Beyan is 8 kilometers (8 km) southwest of the Southwest Zone and “traced over a 225 meter strike length.” Grab samples from Beyan returned up to 9.7 grams per ton (9.7 g/t ) gold and 32.5 g/t silver. Additional work showed 12 g/t gold 600 meters north of the original discovery, in the current Alex discovery.

The Goldfield Boulder Zone is 28 km southwest of Beyan where boulders and outcrop can be traced over a 4 km strike length. Grab samples from Boulder outcrop demonstrated 26.2 g/t gold and 27.8 g/t silver.

“This is the furthest exploration to date and is part of the recently acquired Tortigny claim block,” Gallo noted.

Testard is 10 km south of the main mineral resource area. Grab samples from outcrop there returned 203 g/t gold, 2,440 g/t silver and 4.37% copper. Surface sampling showed 82 g/t gold and 1,060 g/t silver.

“The company believes there could be additional subparallel mineralized quartz veins at Testard,” indicated Gallo.

Also in 2020, Troilus Gold started a 20,000-meter drill program with two aims: to upgrade its current mineral resource estimates and to continue mineralization expansion and exploration. All results from this campaign are pending.

“Though the system appears to be opening up toward the southwest, we are particularly curious as to its potential to the northeast,” Gallo noted. The northeast area appears highly prospective for higher-grade gold due to possible bending or fracturing along the main trend and system tightening. “Though this is highly speculative based on large scale
geologic maps and geophysics, we believe this region to be highly prospective,” Gallo wrote.

In other news from 2020, Gallo reported Troilus Gold completed the buyback of a 2.5% net smelter returns (NSR) royalty for CA$20 million in cash. The company closed a CA$22.1 million bought-deal financing on Dec. 12, 2020.

“We view this [buy back] as positive, and the elimination of the NSR royalty from our model adds CA$20 million to the net present value of the project, which is currently CA$912 million,” Gallo wrote.

Canaccord Genuity has a Speculative Buy rating and a CA$2.75 per share target price on Troilus Gold, whose stock is trading now at about CA$1.17 per share.

 

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Canaccord Genuity, Troilus Gold Corp., Company Update, January 4, 2021

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated
persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Required Company-Specific Disclosures (as of date of this publication)

Troilus Gold Corp. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Troilus Gold Corp.
In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Troilus Gold Corp.
In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or comanager of a public offering of securities of Troilus Gold Corp. or any publicly disclosed offer of securities of Troilus Gold Corp. or in any related derivatives.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Troilus Gold Corp. in the next three months.

Acacia Shares Go Back to the Future as Cisco Raises Bid to Buy the Firm to $4.5 Billion

Source: Streetwise Reports   01/14/2021

Shares of Acacia Communications launched 32% higher after the company reported that Cisco Systems has agreed to amend its proposed merger agreement by raising its offering price to purchase the company from $70 to $115 per share.

Acacia Communications Inc. (ACIA:NASDAQ) and Cisco Systems Inc. (CSCO:NASDAQ), today announced “an amendment to the definitive merger agreement under which Cisco previously agreed to acquire Acacia.” The firms reported that under the terms of the amended buyout agreement, Cisco will acquire Acacia for $115 per share in cash, or for approximately $4.5 billion on a fully diluted basis.

The raised share offering price is roughly 64% higher than the $70 per share or approximately $2.6 billion bid that Cisco put forward in July 2019 that was originally expected to close in H2/20. The companies stated in the report that the acquisition is now expected to close by the end of Q1/21, though the transaction still remains subject to certain closing conditions and approval by Acacia shareholders.

The firms noted that after the transaction is finalized, Acacia Communications’ CEO Raj Shanmugaraj and the current Acacia employees will join as members of Cisco’s Optics business.

Cisco System’s Chairman and CEO Chuck Robbins stated, “I am delighted that Cisco and Acacia have decided to come together in this mutual deal…We look forward to welcoming Raj and the Acacia team to Cisco to offer our customers world-class coherent optical solutions to power the Internet for the future.”

The companies stated that Cisco’s acquisition of Acacia serves to reinforce its commitment to optics as a critical component in enhancing its ‘”Internet for the Future” strategy and will enable the firm to address vast and expanding IT needs. Cisco noted that it is “committed to supporting Acacia’s existing and new customers around the world that require industry-leading coherent optics, digital signal processing / photonic integrated circuit modules and transceivers for use in networking products and data centers.”

Bill Gartner, SVP and general manager of Cisco Optical Systems and Optics Group, remarked, “Both Cisco and Acacia have been focused on helping customers create a simpler operations environment, with a shared vision for the future of routing and switching with pluggable optics…Together we will ignite our strategy to transform the optical world as we know it, with innovative solutions to boost network capacity inside and outside the data center.”

Acacia Communications’ President and CEO Raj Shanmugaraj commented, “We maintain our strong conviction in the strategic benefits of joining the Cisco family and believe it will enable us to better support our existing customers, while reaching an expanded footprint of new customers globally…We are pleased to have reached this agreement with Cisco and are excited to move forward with the combination which we believe will transform the optical industry, while providing great opportunities for Acacia employees to continue their innovation.”

Acacia, headquartered in Maynard, Mass., is an existing supplier of Cisco that designs and manufactures optical interconnect technologies that help webscale companies, service providers and data center operators to meet the fast-growing consumer demands for data. The company advised that its “siliconization of optical interconnect” allows it to offer products at higher speeds and density that in turn consume much less power.

Cisco Systems has a market cap of around $192 billion and is known worldwide as a leader in technology that powers the internet. The firm is engaged in the design and sale of a range of technologies across networking, security, collaboration, applications and the cloud. It is best known for technologies for infrastructure platforms including switching, routing, data center server products and wireless designed to work in sync to deliver networking capabilities and transport and store data.

Acacia Communications began the day with a market capitalization of around $3.6 billion with approximately 42.12 million shares outstanding and a short interest of about 6.4%. ACIA shares opened more than 31% higher today at $113.47 (+$27.02, +31.26%) over yesterday’s $86.45 closing price and reached a new 52-week high price this afternoon of $114.73. The stock has traded today between $112.90 and $114.73 per share and is currently trading at around $114.00 (+$27.56, +31.87%).

 

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Top Pick U.S.-Based Uranium Producer/Developer Offers ‘Maximum Upside Exposure’

Source: Streetwise Reports   01/14/2021

The key reasons Uranium Energy warrants Top Pick status and makes a compelling investment are presented in a Haywood Capital Markets report.

In a Jan. 12 research note, analyst Colin Healey reported that Uranium Energy Corp. (UEC:NYSE.MKT) ranks among Haywood Capital Markets’ Top Picks for 2021 and is “perfectly positioned to leverage both macro and domestic catalysts.”

“UEC has production ready-assets within reach of its South Texas Hobson central processing plant and its Reno Creek project is fully permitted/construction ready, creating a pathway to 4 Mlb U3O8/year of near-term production once the uranium price incentivizes,” Healey stated.

He noted that UEC has multiple deposits with “relatively low capex hurdles, near-ready to feed the plant.”

“With over 19 million pounds (19 Mlb) of U3O8 in all categories’ resources defined (>85% fully permitted) across the Texas in situ recovery assets and plenty of unexplored, but highly prospective, acreage, Uranium Energy is well positioned to generate near-term cash flow in the right environment,” wrote Healey.

The company’s asset portfolio includes Reno Creek project, which is considered the “largest permitted, pre-construction ISR project in the U.S., with approximately 27.5 Mlb U3O8 in all-categories resources (95% Measured and Indicated).” Uranium Energy is now preparing a prefeasibility study “to demonstrate the economic case.”

Uranium Energy offers potential upside in the way of exploration given its pipeline of hardrock uranium and vanadium assets in three countries, Healey wrote. They are its development-stage assets in the U.S., an exploration-stage project in the Athabasca Basin and “exploration/development assets in Paraguay that includes titanium exposure at the Alto Parana project.”

In addition, “the company’s low-cost, in situ recovery portfolio and all-in resource of 104 Mlb U3O8 are completely unhedged, allowing for maximum exposure upside exposure to rising uranium prices,” Healey indicated.

Uranium Energy is in a strong financial position, Healey noted, having $16.7 million in cash at year-end 2020 and “further agility once the market conditions justify a restart.” Last fall, the company garnered $15 million in gross proceeds through a public offering upsized from $8 million.

“With the uranium sector facing the best fundamental backdrop we’ve seen in the post-Fukushima ear, and the U.S. making significant progress to revive its domestic nuclear industry, we recommend buying UEC to gain exposure to this two-pronged bullish outlook,” Healey concluded. “UEC has production-ready assets within reach of its South Texas CPP and could rapidly respond to an improving uranium price.”

Along with a Buy recommendation, Haywood has a $2.60 per share target price on Uranium Energy, the stock of which is currently trading at about $2.01 per share.

 

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Uranium Energy Corp., a company mentioned in this article.

Disclosures from Haywood Securities, Uranium Energy Corp., January 12, 2021

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

The following Important Disclosures apply for Uranium Energy Corp.:

▪ Haywood Securities, Inc. has reviewed lead projects of Uranium Energy Corp. and a portion of the expenses for this travel have been reimbursed by the issuer.
▪ Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for Uranium Energy Corp. in the past 12 months.

Research policy available here.

Junior Achieves De-Risking ‘Milestone’ as Cobalt Prices Rebound

Source: Peter Epstein for Streetwise Reports   01/13/2021

Peter Epstein of Epstein Research calls First Cobalt Corp.’s agreements with major firms to deliver feedstock “a major vote of confidence.”

On Jan. 12, First Cobalt Corp. (FCC:TSX.V; FTSSF:OTCQX; FCC:ASX) announced two critical long-term (five-year) cobalt hydroxide feedstock arrangements with Glencore International Plc (GLEN:LSE) and IXM SA (a subsidiary of CMOC).

Combined, the agreements call for the supply of 4,500 tonnes of contained cobalt/year, starting in Q4/2022. Once up and running, First Cobalt’s 100%-owned refinery will be North America’s sole producer of cobalt sulfate for the electric vehicle (EV) market.

Under a binding cobalt hydroxide supply contract, Glencore will supply First Cobalt for five years, beginning in Q4/2022, from its KCC mine in the Democratic Republic of Congo (DRC). Regarding IXM, a memorandum of understanding (MOU) was signed that will need to be finalized. The MOU is also for five years from Q4/2022, with 100% of the cobalt hydroxide feed coming from CMOC’s Tenke mine, also in the DRC.

In both agreements, cobalt hydroxide will be purchased based on then-prevailing market prices. An additional 500 tonnes/year of feed will be satisfied through other suppliers or via spot market purchases. The start of shipments is contingent upon First Cobalt obtaining necessary permits and a working capital facility.

The press release covered a number of “ESG” topics (environmental [including life-cycle assessments], social [including ethical sourcing], and corporate governance). Instead of summarizing the impressive manner in which First Cobalt is addressing these important issues, please read the three main paragraphs from the PR below.

As big as this news is, it’s noteworthy that First Cobalt will be working with two of the most ESG-friendly cobalt hydroxide operations in the world. Readers should note that both Glencore’s KCC, and IXM’s Tenke mines run on clean hydroelectric power. These mines will provide 90% of First Cobalt’s annual refinery needs, enough to produce 22,250 tonnes/year of battery-quality cobalt sulfate.

Being supplied from large, green mining operations, owned by giant companies charged with upholding the highest ethical and environmental standards, is a key de-risking event. This should not be taken for granted. There are only a handful of feedstock sources as large, credible and reliable.

Further, the fact Glencore and IXM would agree to contract for five years (two years ahead of the refinery being operational) with a cobalt junior that’s a tiny fraction of their sizes is a tremendous vote of confidence in First Cobalt’s strategy, assets and team.

This news comes soon after the federal government and Ontario government jointly pledged CA$10 million (CA$10M), half as a grant (free money, no repayment) and half as an interest-free, unsecured loan with a 10-year term.

Feedstock procurement and robust government support paves the way for the third leg of the stoolófinancing roughly CA$76M of upfront cap-ex (~CA$66M remaining after the $10M commitment).

Ongoing warrant and stock option exercises, plus CA$4M from the sale of a non-core silver asset, is steadily chipping away at the formidable capex block. Still, management has been clear that additional equity will be required, even though a significant majority of the funding package will come from debt.

Management has lined up four or five qualified debt providers and will be comparing term sheets in coming weeks to choose the best one or two lenders to move forward with.

The chances of this ambitious refinery project coming together on time and on budget have grown in the past month, with three high-impact press releases, and continued improvement in cobalt prices due to blockbuster expectations for EV penetration later this decade.

These factors suggest that choosing one or more debt proposals will now be easier, and the terms possibly more attractive (lower rates of interest, longer maturity dates, less restrictions). As funding is wrapped up, ongoing work on offtake partners, permitting and construction will become the main focus.

It’s my understanding that construction risk is low. And now, with proven government support, I can’t imagine getting the refinery permits updated will be that difficult. I’m not sure how hard it will be to place battery-quality cobalt sulfate into the market from 2023 on.

However, it’s clear that the amount First Cobalt proposes to sell is not large (<5%) versus the size of the cobalt market for batteries in 2023. Importantly, management believes they can produce a higher quality sulfate than standard benchmark cobalt sulfate specs.

To reiterate, offtake discussions, refinery project financing and permitting amendments are advancing on schedule. Construction could begin as soon as in early summer. Trent Mell, president and CEO commented, “This is a pivotal moment for our North American cobalt refining strategy. Our globally competitive cost structure, and industry-leading ESG credentials, put us in a strong position for the rapidly growing EV market. With feedstock arrangements now in place, we can continue to advance our vision to create a new cobalt supply chain in N. America. . . .EV sales in Europe were up more than 100% in 2020 and the U.S. will be the next large market to take off. We’re now focused on off-take arrangements and a financing package with the goal of commencing construction in mid-2021, and full commissioning in the 2H of 2022.”

In prior articles I’ve written on First Cobalt Corp., I discuss the latest news in the EV space, but this timeósuffice it to say that the outlook for EVs from 2023 on, when the refinery will be pumping out product, is quite literally stronger than ever.

How much is a 15/20/25-year stream of cash flows worth to First Cobalt? How much might those cash flows be worth to a giant like Glencore? The latest corporate presentation shows an after-tax net present value (NPV)(8%) of $226M, assuming a fixed, long-term, cobalt sulfate price of US$25/pound and a 13-year refinery life. I found that an after-tax NPV(5%) would be ~25% higher than a NPV(8%).

Why am I changing the discount factor? Glencore’s cost of capital is much lower than First Cobalt’s. For Glencore, with multiple potential synergies (market intelligence, lower feedstock cost, better industry contacts, economies of scale, diversification benefits, etc.) a 5% discount rate would be warranted.

In addition to a lower discount factor, margins operating the refinery would most likely be higher under Glencore (due to the above mentioned synergies). Assuming $5M/year of incremental cash flow, at the same US$25/pound price point, the NPV would be roughly $345M. That’s 2.7x First Cobalt’s enterprise value of ~$130M.

Finally, I suggest that readers consider at least the possibility of a higher cobalt sulfate price than the US$25/pound I’ve used for the past year. Even if US$25/pound is the best we can achieve in the next few years, the refinery has a long lifespan. The average long-term price could be US$30/pound, which would increase the company’s after-tax NPV(8%) to >$200M from $177M.

On an enterprise value (EV)/revenue or EV/EBITDA basis, at US$30/pound, these valuation multiples would be very strong for First Cobalt and its cobalt peers. These metrics would likely support an even higher market cap than the $345M figure mentioned above.

Not many lithium or cobalt juniors could be cash flow positive as soon as H2/2022. Many are four to six years away from initial operations. Some (such as lithium brine projects) have multiple-year production ramp-up periods to reach nameplate capacity.

Readers like me, who feel that global EV penetration will be very strong, perhaps especially strong from 2023 on, should take a closer look at which North American companies can supply the EV battery market with cobalt. I continue to believe there are very few high quality names to choose from! First Cobalt Corp. remains at the top of my list.

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University’s Stern School of Business.

 

Peter Epstein’s Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about First Cobalt Corp., including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of First Cobalt Corp. are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this interview was posted, Peter Epstein owned shares of First Cobalt Corp., and the Company was an advertiser on [ER].

While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts and financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover any specific events or news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein’s disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

As Psychedelics Move Mainstream, Small Cap Positions Itself at the Center of the Industry

Source: Streetwise Reports   01/13/2021

Two year old DELIC Corp. has gotten in on the ground floor of the nascent psychedelic sector.

A decade or two ago, few people thought that medical marijuana would be quickly adopted, yet it is now legal in 33 U.S. states and the District of Columbia. In a similar fashion, the pendulum appears to be swinging in favor of psychedelics. In 2019, the U.S. Food and Drug Administration (FDA) approved the use of the nasal spray esketamine in conjunction with an oral antidepressant to treat adults suffering from depression when other medications have not worked. It is the first psychedelic drug to receive FDA approval.

Today, clinical trials are underway to research the ability of psychedelics to combat issues as wide ranging as PTSD, alcoholism and drug addiction, depression, headaches, eating disorders and tobacco addiction. Last year, Johns Hopkins University opened the Center for Psychedelic and Consciousness Research. At the state level, psilocybin mushrooms are now on track to be legal in Oregon, the first state to do so.

Against the backdrop of this quickly moving situation, Delic Corp. (DELC:CSE) aims to be in the center of the psychedelic revolution. The small-cap company began trading on the Canadian Securities Exchange in November under the ticker DELC.

Founded by Jackee and Matt Stang, who both held high positions at High Times, Jackee as VP of programming and Matt as chief revenue officer, Delic aims to identify “fully legal opportunities to scale under our big tent of resources and reach.”

“We founded Delic two years ago when we saw a tipping point coming for psychedelics,” Matt Stang told Streetwise Reports. “We wanted to create something to help mainstream psychedelic wellness.”

Jackee is the CEO and founder, while Matt is the co-founder and adviser.

Delic sees itself as an umbrella media platform. It currently has three subsidiary companies: a revenue generating e-commerce lifestyle brand named “The Delic”; a free public education platform providing psychedelic guides, news and culture known as “Reality Sandwich” that offers more than 5,000 articles and other content; and “Meet Delic,” a biannual psychedelic wellness summit with the first set for Los Angeles in May 2021.

“About 300,000 people a month are coming to the Reality Sandwich website for news and information about psychedelics,” Stang said. “Meet Delic will be the largest psychedelic conference in the world. And we’ve been holding online web events drawing thousands of people to learn more about different aspects of psychedelic lifestyle.”

Delic is also in the process of putting out a new site built around psychedelic wellness. “It will be a place to find safe and legal psychedelic wellness experiences, such as ketamine clinics,” Stang said.

Stang explained that the model was to go public at a very low valuation—the firm came out at a $11 million post-money valuation. “Now we will utilize the capital we’ve raised and the shares that we have inside of the company to buy up some really great operators across the psychedelic world, and use our funnel of people interested in psychedelics to help drive traffic, brand recognition and revenue,” he said.

“When a black or gray industry goes white, people don’t know who to trust, or what to look to. And when you own a major media brand in the space, you help build and drive value in those brands. We have a giant platform from which to help define what is best in class,” Stang explained.

Delic has pulled in experienced executives for its board of directors, including Paul Rosen, CEO of 1933 Industries Inc. and co-founder of PharmaCan Capital Corp., now known as The Cronos Group, and Kraig Fox, former CEO of High Times Holding Corp.

“Our unique access to the best entrepreneurs in the space, the newest technology, and unmatched ability to curate popular culture allows us to offer mainstream solutions to the emerging psychedelic industry players,” Stang said.

Delic has approximately 51 million shares issued and outstanding. Insiders have a three-year escrow and hold around 40% of the shares.

 

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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The Analytical Overview of the Main Currency Pairs on 2021.01.15

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2155
  • Prev Close: 1.2151
  • % chg. over the last day: -0.03%

EUR/USD on Thursday showed weakness against the dollar, despite the decrease in greenback across the entire spectrum of the market. The European currency is under pressure in anticipation of new restrictions related to the worsening epidemiological situation. France will extend curfews across the country. German Chancellor Angela Merkel, meanwhile, plans to tighten quarantine in the country. Indeed, there is mounting evidence that the pandemic is picking up steam again.

Trading recommendations
  • Support levels: 1.2222, 1.2283
  • Resistance levels: 1.2130, 1.2059

The main scenario for trading EUR/USD is trading in a sideways range between 1.2222 and 1.2130. The 1.2130 level remained the key support, as there was only an intraday puncture followed by a northern bounce. It is necessary to wait for the fixation. Otherwise, the situation will be similar to the “spring” model, in which a false puncture leads to a reversal. In this case, without consolidation below 1.2130, a northern reversal is likely.

Alternative scenario: if the price manages to consolidate below the level of 1.2130, the pair may continue to move towards 1.2059. A break of 1.2222 will bring the pair back to 1.2283 or higher.

EUR/USD
News feed for 2021.01.15:
  • – 16:30 (GMT+2) US Retail Sales Baseline (MoM).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3635
  • Prev Close: 1.3684
  • % chg. over the last day: +0.36%

Sterling continued to rise on Thursday, however, bullish potential is at a low level. Bearish signals appear gradually. The growth, caused by the comments of the Governor of the Bank of England, is not confirmed by the credit market. Gilts earnings continued to decline and returned below 0.30%, while US Treasuries stabilized near 1.10%.

Trading recommendations
  • Support levels: 1.3532, 1.3428
  • Resistance levels: 1.3702, 1.4386

The main scenario in GBP/USD is selling. Earlier this week, sterling showed its second touchdown at 1.3702, the January high. On Thursday, there was a false puncture without fixing above this level. The situation is beginning to indicate strong resistance in this area, and a “double top” pattern has formed on the chart. ADX, when declining in the Asian session, began to react with growth, indicating the presence of bears.

Alternative scenario: if the pair consolidates above 1.3702, growth is likely to continue.

GBP/USD
News feed for 2021.01.15:
  • – 10:00 (GMT+2) UK GDP (m/m);
  • – 10:00 (GMT+2) UK Manufacturing Output (MoM) (Nov).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 103.87
  • Prev Close: 103.78
  • % chg. over the last day: -0.08%

On Thursday, the dollar-yen showed a decline following the credit and equity markets. The announcement of a $1.9 trillion economic bailout package from Joe Biden did not inspire investors. The stock market is showing signs of correction more and more, which in turn casts doubt on the growth of the dollar-yen.

Trading recommendations
  • Support levels: 103.53, 103.18
  • Resistance levels: 104.40, 104.76

The main scenario is trading in a sideways range. ADX did not react to the last downside impulse, which indicates the weakness of the bears. The price has consolidated below the moving averages, which indicates a high probability of a breakdown of the lower border. However, until that happens, the pair could trade in a range between 104.40 and 103.53.

An alternative scenario assumes the price fixing above 104.40. In this case, the pair may return to growth up to 104.76 – 105.68. Breakdown of 103.53 will indicate renewed bearish sentiment.

USD/JPY
News feed for 2021.01.15:
  • – 16:30 (GMT+2) US Retail Sales Baseline (MoM).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2693
  • Prev Close: 1.2636
  • % chg. over the last day: -0.45%

On Thursday, the pair accelerated its decline and reached the lows of early January. Oil quotes continue to rise, which in turn puts pressure on the pair. The slight decline in the dollar index helped to increase the pressure on the price.

Trading recommendations
  • Support levels: 1.2630, 1.2523
  • Resistance levels: 1.2797, 1.2875

The main scenario is range trading. Despite the rapid decline on Thursday, the ADX barely reacted. But the growth in the Asian session is perceived by the oscillator as legitimate. However, other indicators are fully positioned in a southern direction. MACD has shown convergence, which is usually a strong signal for continuation. Since the price was able to stop at a strong support level, the overall result is neutral.

Alternative scenario: if the price can gain a foothold above 1.2718, the pair may return to 1.2797. A breakdown at 1.2630 will indicate further decline.

USD/CAD
There is no news feed for today.

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Japanese Candlesticks Analysis 15.01.2021 (USDCAD, AUDUSD, USDCHF)

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the pair is forming another correctional wave. Right now, after forming a Harami reversal pattern not far from the support level, USDCAD may reverse in the form of another pullback. Later, the asset may continue falling within the descending channel. In this case, the downside target will be at 1.2585. However, an alternative scenario implies a more significant correction towards the channel’s upside border at 1.2765 before the instrument resumes its decline.

USDCAD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD is correcting again. Right now, after forming several reversal patterns, such as Harami, not far from the resistance area, the pair may reverse and resume falling to reach the support area at 0.7720. At the same time, an opposite scenario says that the price may grow to reach 0.7835 without correcting towards the support level.

AUDUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, the correction within the downtrend continues. At the moment, after forming several reversal patterns, such as Engulfing, not far from the resistance area, USDCHF is reversing and may continue the descending tendency. In this case, the downside target may be the next support area at 0.8830. Still, there might be an alternative scenario, according to which the asset may grow to return to 0.8915 before testing the support area.

USDCHF

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Fibonacci Retracements Analysis 15.01.2021 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the daily chart, BTCUSD is forming another rising wave after finishing a pullback at 38.2% fibo (29750.00). At the moment, this wave is expected to face strong resistance from the high at 42017.50, which may result in a rebound and a new decline towards 50.0% and 61.8% fibo at 25925.00 and 22145.00 respectively. After completing the correction, the asset may break the high and continue its growth to reach the post-correctional extension area between 138.2% and 161.8% fibo at 46450.00 and 49240.00 respectively.

BITCOIN
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows a new wave to the upside after the previous descending wave, which has already reached 76.0% fibo. The current reversal to the downside may transform into a proper descending wave towards the low at 30300.00. If the price breaks the low, the asset may continue falling to reach 38.2% and 50.0% fibo at 29750.00 and 25925.00 respectively.

BTCUSD_H1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

The daily chart shows a new rising wave towards the high at 1349.99, a breakout of which may lead to further growth to reach the all-time high at 1421.10. However, similar to Bitcoin, bearish pressure remains quite strong, that’s why the instrument may start a new correctional wave to break the low at 909.19 and then reach 50.0% and 61.8% fibo at 828.50 and 703.90 respectively.

ETHEREUM
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the H1 chart, the correctional uptrend has reached 76.0% fibo. A rebound from this level may lead to further decline towards the low at 909.19. However, one shouldn’t exclude a breakout of the high and further uptrend to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1516.40 and 1621.00 respectively.

ETHUSD_H4

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Muted Moves In Metals Following Heavy Sell-Off

By Orbex

Gold

Following the volatility last week as gold sold off in response to the USD, gold prices have had a much quieter week.

The gold market has traded a very narrow range at the foot of last week’s decline, hugging the 1826.71 support. This week, the rebound in USD has been the main barrier to any recovery higher in gold prices.

The dollar has been trading higher amidst the greater political clarity following the democrats winning the Georgia state run-offs.

A better than expected set of average hourly earnings last week has also helped support the dollar.

Some parts of the market judge that the rebound in the US, along with US fiscal stimulus, could fuel the Fed to begin removing monetary easing quicker than forecast.

Just this week, we heard two Fed officials suggest that the bank could start to taper off asset purchases later this year. This is if the US rebound strengthens, as projected, over H2.

However, there’s still plenty of uncertainty around COVID. This is evident by the negative jobs number in December.

Therefore, the dollar is still subject to downside risks. Safe haven inflows are likely to continue offsetting any further downside in gold, currently.

Gold Trading Back in Bearish Channel

Gold prices reversed heavily following the move above the 1919.92 level.

Price is now trading back inside the broken bear channel and is currently sitting on support at the 1826.71 level.

Should price break below here, the next support level to watch will be the November 2020 lows around 1764.18.

To the topside, if price moves back above the channel high, the 1919.92 level remains the key marker to watch.

Silver

Silver prices have largely tracked the moves in gold this week, with price holding towards the bottom of the sell-off from last week.

However, silver prices have fared a little better than gold this week, with silver helped by the continued uptick in equities prices.

The focus on a much larger US stimulus package as a result of the democratic sweep is helping lift equities prices with the rally in industrial stocks offering a boost for silver.

This theme looks likely to continue in the near term as further details of the proposed stimulus package come through when Biden takes office next week.

Silver Holding Above key Support

The sell-off in silver prices has seen the market moving back below the 25.975 level.

However, for now, price remains above the broken bearish channel and the rising trend line from 2020 lows. While this support area holds, the focus is on further upside in the near term.

By Orbex

Biden Unveils $1.9tn Aid Package

By Orbex

Jobless Numbers Spike

The dollar had a choppy session on Thursday. However, it maintained its stance above the 90 threshold.

This comes after President-elect Joe Biden unveiled a $1.9tn stimulus plan for the US economy before he takes office.

The plan will come at a time of uncertainty for the job market, as weekly unemployment claims spiked far more than expected last week to reach a five-month high.

EURUSD has been retreating in response to the stimulus package, as it closed 0.14% lower.

Another Week, Another Variant

The pound kept the rally going as it closed 0.34% higher yesterday touching the 1.37 handle.

Recent confirmation from the BoE regarding a move away from negative rates has propped up sterling, whilst we await today’s GDP data.

Meanwhile, the UK will begin banning travelers from South America, amid concerns over a new variant that is sweeping the country.

Can the vaccination rollouts happen quickly enough to contain the virus?

Indexes React to Stimulus

US indices ended lower on Thursday after the Dow and Nasdaq both cut gains after touching record intraday levels.

Investors, economists, and political analysts will be looking ahead to Biden’s economic agenda later today.

The rallies are set to continue unless the upcoming fiscal aid is below expectations.

Gold Closes Mixed

Gold closed on an even keel yesterday as traders held off moving the yellow metal from its slumber.

Continuous coronavirus infections, civil unrest, and the impending US stimulus, combined with a slow rollout of vaccinations have kept gold consolidated.

The $1850 ceiling has weighed heavy on the metal, as we look ahead to next week’s inauguration.

Oil Jumps on Stimulus Bandwagon

WTI was another trade lifted by relief headlines, as it closed 1.65% higher on Thursday.

This comes despite new and extended lockdowns that promise to slow any oil demand rebound that was expected for 2021.

Also serving as a catalyst for rising prices are rumors of a tightening of supply, after Saudi Arabia’s move to pump less oil for February.

By Orbex