Rat's Rant: What's hot, what's not and ... Donkey Kong

By Rat's Rant. Published at Sep 24, 2019, in Market Wrap

Did you know that on 23 September 1889 Nintendo was founded.

The Japanese gaming company was created by entrepreneur Fusajiro Yamauchi as a card company called Nintendo Koppai, which was based in Kyoto.

The company originally produced and sold playing cards called Hanafuda.

The release of Donkey Kong, an arcade game in 1981, brought Nintendo to the forefront of electronic and video games industry.

Which stocks are on like Donkey Kong...?

What's hot

Osteopore Limited (ASX:OSX)

Osteopore yesterday closed up 260% (yes that's right) to finish at 72.5c on $4.6 million stock traded. The reason: they listed. Osteopore is one of the hottest, if not the hottest, IPOs in the last few years.

The company raised $5.2m @ 20c. The raising was done by the boys and girls at Alto Capital who were kind enough to offer me donuts, although I wasn't surprised by this and nor did I expect any.

A few of my clients were lucky enough to get in, but there wasn't much stock to go around.

Company highlights

Osteopore was founded in 2003 and is a bone regeneration company that through a combination of 3D printing and bioresorbable material, manufactures devices that biomimic the cancellous bone microarchitecture that facilitates the natural stages of bone healing.

Osteopore’s products are fabricated in-house using proprietary 3D printing technology that is precise and allows for customisation of shape and geometry.

Following receipt of US Food and Drug Administration (FDA) approval in 2006 and CE-Mark approval in 2009 (and reapproval in 2017), Osteopore has successfully commercialised three products, ‘Osteoplug’ ‘Osteomesh’ and ‘Osteostrip’ and has sold over 20,000 units to hospitals in Singapore, South Korea, Vietnam and Malaysia since inception.

The Directors are of the view that an investment in the Company provides the following non-exhaustive list of advantages:

(a) Revenue generating: Osteopore is revenue generating with S$934,878 (approximately A$990,000) in revenues for the twelve month period to 31 December 2018, however, investors should be aware that Osteopore is currently loss making (and refer to Section 6 for further information on the Company’s financial position);

(b) Proprietary technology: Osteopore has licensed a range of technologies from Singapore’s leading universities, NTU and NUS;

(c) FDA and CE Mark Approvals: Osteopore’s products are cleared by the US FDA (510(k) clearance) and bear the CE marking of conformity; LETTER FROM THE CHAIRMAN

(d) Scalable business model: Osteopore intends to scale its business model along its existing customers and markets, within the key sectors covered as well as into new sectors and markets;

(e) Continued investment in technology development: Osteopore intends to invest in further development efforts to improve and expand the range of licensed proprietary technologies. The Company also intends to in-license further new technologies developed at NTU or other institutions; and

(f) Highly credible management team: Osteopore has a highly credible and experienced team to progress the commercialisation and expansion of its technology. The purpose of the Public Offer is to raise $5,250,000 (before associated costs) by the issue of 26,250,000 Shares at an issue price of $0.20 each.

Kyckr Limited (ASX:KYK)

Kyckr closed up another 33% to finish at 32c on $9.5 million stock traded. The reason for this, was they have signed a reseller agreement with leading information services provider illion Australia Pty Ltd - a leading provider of data and analytics products and services in Australasia. The firm leverages its consumer and commercial credit registries, which comprise data on over 25 million individuals and over 2.5 million active companies.

This news came on the back of news last week that prominent technology entrepreneur Mr Richard White participated in both Tranche 1 and Tranche 2 of the recent placement which was done @ 6.6c

Richard or Dicky to his mates is now a cornerstone investor with a substantial share holding of 19.6% and is already up 4 bags on his investment, so I will be following Richard into whatever it is he invests in next.

Richard is a prominent technology entrepreneur, founder and CEO of WiseTech Global Limited, a leading developer and provider of software solutions to the logistics execution industry.

He has been responsible for driving WiseTech’s growth from the tiny beginnings to what has become one of the largest Australian software companies, with a market cap of over $11 billion, with over 12,000 logistics organisations globally using the software today and he may or may not even read this tonight.

Details on the news as follows:

Kycks announces reseller agreement with illion

Highlights

  • New agreement enables illion to resell Kyckr’s real-time, global registry data solutions to new and existing clients in Australia and New Zealand (ANZ).
  • illion is a leading data registries and analytics business and the agreement will leverage the firm’s expertise and relationships in specific markets.
  • New agreement to support Kyckr technology and unique global registry access, including Verify & Validate automation and Company Watch monitoring.
  • Kyckr API to be integrated to illion’s Decision Engine API and partner Ultimate Beneficial Owner (UBO) platform, Simple KYC.

Kyckr Limited (ASX:KYK), a regulatory technology company, is pleased to announce it has signed a reseller agreement with leading information services provider illion Australia Pty Ltd.

illion is a leading provider of data and analytics products and services in Australasia. The firm leverages its consumer and commercial credit registries, which comprise data on over 25 million individuals and over 2.5 million active companies.

Under the agreement, illion will have the ability to resell Kyckr’s market-leading technology and solutions to new and existing customers across the ANZ region. Kyckr’s Verify & Validate and Company Watch solutions will complement illion’s existing propositions, adding enhanced functionality through data cleansing, remediation and ongoing customer monitoring from over 200 global registries.

In addition, the Kyckr API will integrate into illion’s Decision Engine API and partner Ultimate Beneficial Owner (UBO) platform, Simple KYC.

illion currently delivers data and analytics services to major and mid-tier banks across a broad range of sectors, and coupled with Kyckr’s unique technology, the agreement will aim to accelerate collaboration within these sectors.

Global high-profile incidents have led regulators from across the world to improve Know Your Customer (KYC) and Anti-Money Laundering policies. The total market for KYC solutions is growing and is expected to reach $16.4 billion in 20231 . Kyckr has one of the largest platforms for Know Your Customer (KYC) and Anti Money Laundering (AML) data globally with over 200 registries, providing company registry information on over 170 million businesses, and ensure clients receive real-time client verification to prevent money laundering and financial crime.

The agreement comes off the recent launch of the new Kyckr online platform www.kyckr.com which provides enhanced functionality for customer verification, improving the overall customer experience.

Simon Bligh, Chief Executive Officer of illion, commented: “We are excited by this opportunity to integrate Kyckr’s global legally authoritative KYC information with illion’s leading Australian and New Zealand data sets, automated decisioning and visualisation solutions. In so doing, we will expand the capability of our existing class leading AML/KYC digitised on boarding and ongoing customer due diligence solutions to automatically assess global ownership structures.”

Kyckr Chief Executive Officer, Ian Henderson commented: “We are incredibly pleased to be working with illion, a leading data registries and analytics player, holding Australia’s richest source of commercial and consumer information.

The agreement aligns with our focus to create relationships encompassing global data providers and commercial credit bureaus, enabling us to fast track our exposure to new customers and revenue growth channels.

Accessing legally authoritative Know-Your-Customer information direct from registries offers firms an effective process for customer verification to help prevent money laundering and financial crime. The agreement is strong validation from illion and reinforces us as a trusted provider for global registry information. We believe this agreement will present opportunities to expand our footprint even further.”

Wattle Health Australia Limited (ASX:WHA)

Wattle Health closed up 31% to finish at 71c on $2.9 million stock traded. There was no news in the market, but they were issued with a speeding ticket by the ASX or Constable Chapman and made reference to the recent Bellamy's takeover and also to the fact that an institution (IFM) has ceased to be a substantial shareholder, taking pressure of the sell side.

Constable Chapman has issued more tickets lately than Roger Rogerson.

About Wattle Health Australia Limited

Wattle Health aspires to become a company globally recognised for offering superior quality, organic and sustainable products which promote health and wellness at all stages of life.

Wattle Health uses natural ingredients derived from Australia’s pure water, clean air and organically fertile soils. We carefully prepare and pack in ways designed to preserve nutrients. Wherever possible, we source certified organic ingredients which are totally free of fertiliser or pesticide residues. Our pristine Australian provenance and quality-assured supply chain guarantees the highest possible standards of purity.

We support Australian farmers who embrace these soil management practices. We translate consumer demand for pure organic nutrition into a reward for maintaining soil biodiversity, to produce naturally superior products that can be enjoyed for generations to come. Ultimately, our aim is to make the sustainable Australian goodness of certified organic health and wellness products widely available to families across the globe.

Oventus Medical Limited (ASX:OVN)

Oventus closed up 29% to finish at 77c on $1.4 million stock traded. There was no news in the market and they were issued with a please explain (speeding ticket) from the ASX or maybe even Constable Chapman and have since been suspended from trading pending a response from the company.

Hopefully it wasn't the case of loose lips sink ships, but it will certainly be interesting to see what the response is to the speeding ticket.

Some details on what they do are listed below:

About Oventus

Oventus is a Brisbane based medical device company that is commercialising a unique treatment platform for sleep apnoea and snoring. The Company has a collaborative Sleep Physician/ Dental strategy that streamlines patients’ access to treatment. The Oventus lab model incorporates digital technology via intra oral scanning to achieve operational efficiencies, accuracy and ultimately patient outcomes.

Unlike other oral appliances or CPAP interfaces, Oventus O2Vent® devices manage the entire upper airway via a unique and patented built-in airway. O2Vent® devices allow for airflow to the back of the mouth while maintaining an oral seal and stable jaw position, bypassing multiple obstructions from the nose, soft palate and tongue. The devices reduce airway collapsibility and manage mouth breathing while keeping the airway stable.

O2Vent® devices are particularly designed for the many people that have nasal obstruction. They allow nasal breathing when the nose is unobstructed, but when obstruction is present, breathing is supplemented via the airways in the appliance.

The ExVentTM, which is available in Australia and Canada, but yet to receive FDA regulatory clearance for the US market, is a valve accessory that fits into the open airway of the O2Vent® Optima device, to augment traditional oral appliance therapy by stabilising the airway. The ExVentTM valve contains air vents that open fully on inhalation for unobstructed airflow. The valve closes on exhalation, directing the air through the vents, creating the mild resistance or airway support required to keep the airway stable (known as PEEP, positive end expiratory pressure).

Alice Queen Limited (ASX:AQX)

Alice Queen closed up another 26% to finish at 3.4c on $3.9 million stock traded. The reason they were was because they have issued 50 million ordinary shares at 3 cents per share at a 10% premium to the last trading price and a 45% premium to the 20-day VWAP.

The shares are being issued to Datt Capital, who is a well regarded and respected investor in the resources sector.

The company raised $400k @ 1.2c with a one for two option ex @ 2c in early July this year, so well done to anyone that got a slice of that action (if of course you still hold the stock today).

It's not one I follow, but some details on the latest news are listed below:

$1.5 million placement at premium to Datt Capital.

Advanced gold explorer, Alice Queen Limited (ASX:AQX) is pleased to announce that it has entered into a binding agreement to raise $1.5 million through the issue of 50 million ordinary shares at 3 cents per share (the Placement). The Placement is being undertaken at a 10% premium to the last trading price and a 45% premium to the 20-day VWAP.

The shares are being issued to Datt Capital, a well regarded and respected investor in the resources sector.

The Company has received significant interest for additional investment from multiple entities however, having regard to its immediate available placement capacity, has determined that the substantial investment from Datt Capital, at a premium to the market price, is the best available fundraising alternative.

Alice Queen’s Managing Director, Andrew Buxton, commented “We are pleased to welcome Datt Capital to the register as we progress both the Horn Island Gold Project as well as our porphyry copper-gold projects in New South Wales. The completion of the Placement at a significant premium to our recent trading is recognition that we have an exciting portfolio of assets that offer upside potential for all our shareholders.”

Datt Capital’s Managing Director, Emanuel Ajay Datt, commented “We are attracted to Alice Queen for a number of reasons, namely it’s suite of high-quality projects including Horn Island in Queensland and the North Molong Belt projects in New South Wales. We are also very impressed by both the management and technical teams at Alice Queen and their ability to identify significant value for shareholders. The joint venture with St Barbara has significantly de-risked the Horn Island project and the recent discovery by Alkane, next door to Yarindury, has significantly increased the prospectivity of Alice Queen’s North Molong Belt projects. The work programs that the Company and its JV partner have developed for the coming twelve months offer the potential for significant news flow and price appreciation.”

Following the Placement, Datt Capital will be the 3rd largest shareholder in Alice Queen with a shareholding of approximately 6%, behind the Morris Family and the Company’s Managing Director, Mr Andrew Buxton.

Keytone Dairy Limited (ASX:KTD)

Keytone Dairy closed up 19% to finish at 53c on $2.8 million stock traded. Keystone received a first order from Walmart (China) Investment Co., Ltd to manufacture whole and skim milk powder for Sam’s Club West, Inc. (China).

It wasn't a bad time to come out with this news after the recent takeover offer from the Chinese that's on the table for Bellamy's.

My broking mate who we will call Ken Bone to keep him anonymous was kind enough to get me some stock in the IPO @ 20c around 12 months ago, so thanks again Kenny and well dome to the boys and girls at Peloton Capital who were the broker to the issue.

Some details on today's news are listed below:

Keytone receives second Walmart China order

  • Keytone Dairy receives second order from Walmart China for private label whole and skim milk powders to Walmart’s Sam’s Club China
  • Second order magnitudes higher in value compared with first order
  • First two orders from Walmart China total approximately NZD1,000,000, received within a matter of weeks of each other

Keytone Dairy Corporation Ltd is pleased to provide the following update.

Keytone announced on 11 September 2019 it had received a first order from Walmart (China) Investment Co., Ltd (“Walmart China”) to manufacture whole and skim milk powder for Sam’s Club West, Inc. (China) (“Sam’s Club China”). Within two weeks of receiving the initial order, Keytone has now received a second follow-up order for Sam’s Club China private label milk powders, totalling approximately NZD870,000. The second order is magnitudes higher than the first order and the value of the combined first two orders from Walmart China total approximately NZD1,000,000.

The value of multiple orders received during September 2019 from Walmart China represents approximately 40% of Keytone’s prior full year revenue, being the 2019 financial year ended 31 March 2019.

On receipt of this second order, Keytone’s Chief Executive Officer, Danny Rotman, commented: “We are extremely pleased with the level of demand from Walmart China in such a short time frame. This second order highlights the size of the Walmart China operation, the vast volume of customers it serves in China and the significant opportunity it presents for Keytone. Furthermore, it validates Keytone’s quality, product and manufacturing credentials, and we look forward to working closely with Walmart China to support future demand and growing volumes.”

Meteoric Resources Limited (ASX:MEI)

Meteoric closed up 16% to finish at 6.6c on $1.2 million stock traded. There was no news, but last week they released some drilling results from their Gold project located in Brazil. I dare say that's the reason punters/investors are piling into the stock again today.

They also said last week that they have taken out the shareholding that Crusader Resources held in them prior to the stock coming out of escrow.

They placed 50m bit's of paper (shares) @ 5.5c which looks to have taken out any overhang that might have worried existing MEI shareholders.

I do own stock in this personally and they raised funds at 3.2c not that long ago, which was done by the good boys and girls at CPS Capital who were kind enough to offer me some.

I did catch up with the MD Dr Andrew Tunks last Tuesday prior to the results being released and let's just say he was pretty excited about what lay ahead for the next few months.

Some details on last weeks drill results are listed below:

Fresh Bonanza Grades at Juruena

20.6m @ 94.9g/t Au including 3.65m @ 508.4g/t Au

Highlights

Juruena Assays have been received from Meteoric’s first two Diamond Drill Holes JUDD001 and JUD002 which intersected visible gold at the Dona Maria Prospect:

  • JUDD001 20.6m @ 94.9 g/t Au from 96.8m o Including 3.65m @ 508.4 g/t from 107.5m
  • JUDD002 1.1m @ 22.68 g/t Au from 41.2m o And 4.5m @ 6.20 g/t Au from 46.6m
  • Eight holes now completed, with JUDD 003 to 008 being processed
  • Holes JUDD 009 & 010 are underway to test intersection of Dona Maria and Crentes structures at depth
  • Drilling at Novo Astro on schedule to begin late September
  • Escrow released to allow sale of 50m Meteoric shares held by Big River Gold to new and existing institutional and professional investors

Meteoric Resources NL (ASX:MEI) is pleased to announce assays have been received from two drill holes from its maiden drilling program currently underway at its 100% owned Juruena Gold Project in Brazil.

DDH JUDD001 intercepted a thick zone of strongly altered granite and assays confirm a broad zone of bonanza grades with 20.6m @ 94.9 g/t Au from 96.8m, which includes 3.65m @ 508.4 g/t Au from 107.5m.

DDH JUDD002 intercepted two separate zones of alteration and gold mineralisation returning assays of 1.1m @ 22.68 g/t Au from 41.2m and 4.5m @ 6.20 g/t Au from 46.6m.

Managing Director Andrew Tunks said, “We were expecting something special from our first holes at Juruena after we intersected visible gold and intense alteration, however the results have exceeded even my expectation. In fact, this is the best drilling intercept I have ever been involved with in my career.

While we were confident of the possibilities based on the historic drilling and the gold we observed, it is very reassuring to have assay numbers that support our interpretation.

“I am extremely proud of what the Company and the exploration team has achieved since the acquisition in April. We have recruited and deployed excellent staff, contracted and mobilised two drill rigs and struck bonanza grades. All done in remarkably quick time.

“We have now completed eight holes and are testing some deeper targets beneath Dona Maria that are very exciting. The geological logging, sample dispatch and assay procedures are flowing well ensuring a steady flow of drill results over the coming months. Furthermore, we have recognised the untapped potential at the Novo Astro Project and moved quickly to execute an exploration and drilling program in tandem with Juruena.”

What's not

Nothing to see here...

Go hard.

The Rat

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

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