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Novita Explodes On Impressive Annual Report

Novita Healthcare Ltd (ASX: NHL) rallied by more than 50% as the company affirmed it had a productive FY2019 on achieving key milestones. Commercialization and market validation of TALi platform are some of the developments that set the stage for another impressive year. 

The company receiving determination for reimbursement of TALI Detection marks an important milestone as it moves to generate significant value from its breakthrough technology. The company also received class 3 medical device certification of the platform from the Food and Drug Administration

 In addition, the company capped yet another exciting year as net loss nearly halved to $2.9 million from $4.1 million reported a year earlier.  During the year, the company achieved key milestones, among them being the raising of $2.8 million for the commercialization of the TALi platform.

 According to the chair of the board, Sue MacLeman, the focus going forward will be on three core areas of healthcare, education, and direct to consumer. Novita also intends to focus on the execution of the ‘go-to-market phase in a bid to generate optimum returns from the TALi platform.

Serko Rallies on $56 Million Capital Raise

Serko Ltd (ASX: SKO) stock was up by more than 30% on the confirmation of a successful placement that resulted in the raising of $56 million. The placement included NZ$40 million in primary issuance and NZ$16 million as a sell down to certain directors and employees.   Serko intends to raise an additional NZ$5 million through a Share Purchase Plan.

One of the biggest investors was Booking Holdings that acquired 4.3 million shares valued at NZ$17.5 million. The offering attracted bids from 25 institutional investors across New Zeeland and Australia, underscoring strong investor confidence about the company’s long-term prospects.

 The capital raising drive leaves the online travel booking and expense Management Company in a prime position to pursue strategic initiatives. For starters, the company intends to accelerate the global rollout of Serko Zeno and to expand its marketplace content.

Spring FG Rallies on Impressive Financial Results

Spring FG Ltd (ASX: SFL) was up by more than 20%, days after reporting impressive audited financial results for FY2019. The results affirm the company is restructuring drive that continues to deliver significant turnaround in operational efficiency as well as financial results.

The restructuring drive has since triggered improvements in revenue as well as reductions in operational costs. The company expects the turnaround to continue heading into yearend as focus shifts beyond business-to-business activities. 

 Revenue for the full year was up 42% to $10.45 million, representing a 42% increase. The cost of sales, on the other hand, was up 57%, reflecting a significant increase in revenues. Operational expenses, on the other hand, were down 28% to $6.03 million, setting the stage for the company to return to sustainable profitability.

 Operating profit before depreciation amortization interest and tax was $0.295 million, however, the company posted a full-year operating loss of $0.525 million an improvement from a net loss of $2.43 million reported a year earlier.

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Novita Healthcare Explodes On Tali Detect Technology U.S Deal

Novita Healthcare Ltd (ASX: NHL) shares surged by more than 100% on the announcement that the company’s groundbreaking technology TALi Detect technology can start reporting using CP Code 96146 in the U.S. The approval is a milestone achievement as it paves the way for the company to enjoy patient reimbursements.

The U.S clinical market represents an exciting opportunity given that 8-10 million children are screened every year. The fact that each patient requires two to three TALi Detect screenings presents a unique opportunity for the company to generate significant revenues. Clinician payment is currently capped at $36.04.

Novita has already hit the ground running as it seeks to deploy relevant information to physicians in a bid to enhance the use of the TALi Detect technology in more healthcare facilities in the U.S. the technology has already posted positive results as part of clinical trials in Australia. The technology has so far proved to be reliable in assessing the efficacy and detecting differences in attention skills as how pliable children’s brain is during the initial stages of development.

CSG limited Rallies on Takeover News

CSG Limited (ASX: CSV)  rallied by more than 20% after it emerged it is an acquisition target. Fuji Xerox Asia Pacific Limited, a subsidiary of Fuji Xerox, has signed a scheme implementation deed as it seeks to acquire 100% of the company’s shares, subject to shareholder and court approval.

Under the terms of the Scheme Agreement, CSG Limited shareholders are to receive A$0.31 for each CSG share held. Completion of the agreement will result in CSG becoming a wholly-owned subsidiary of Fuji Xerox Asia Pacific. The Scheme Agreement values CSG Limited at $140.8 million, with an enterprise value of $181.6 million.

CSG Limited board has approved the transaction in part because the $0.31 a share deal represents a 31.9% premium to CSG closing price of $0.235 as of October 23, 2019.  In addition, the 100% cash consideration provides shareholders certainty of value and an opportunity to realize the value in capital invested. The board also expects the scheme agreement to provide growth opportunities to 670 CSG Limited employees

Kibaran Resources Name Change Push

Kibaran Resources Ltd (ASX: KNL) was also up by more than 20% after announcing plans to change its name to EcoGraf Limited. The name change drive is part of an effort that seeks to reflect the company’s business that focuses on high quality, natural flake, and graphite products.

The company has already invested over $25 million over the past six years, an investment drive that has resulted in two highly attractive graphite businesses ready to serve prospective customers in Asia and Europe.  The name change should provide brand recognition in new markets, especially in the production of lithium-ion batteries for use in electric vehicles and anode materials.

The Epanko mining project in Tanzania is at the heart of Kibaran Resources in the race to come up with various graphite products to take advantage of the growing market opportunity. The company is already in advanced stages for bank funding processes as it also continues to implement Tanzania mining regulations.

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