Day: 21 December 2021

The Tesserent Ltd (ASX: TNT) share price is falling wayside during mid afternoon trade. This comes regardless of the fact that the internet security services company announced a partnership with Vocus Group Ltd (ASX: VOC).

At the time of writing, Tesserent shares are fetching for 16.2 cents apiece, down 1.82%.

Tesserent strengthens cybersecurity solutions

Investors appear unfazed by the company’s latest release, sending the Tesserent share price in negative territory.

In a statement to the ASX, Tesserent advised it has secured a cybersecurity partnership with international telecommunications company, Vocus.

Founded in 2008, Vocus is a specialist fibre and network solutions provider that operates in Australia and New Zealand. The company has over 30,000 kilometres of fibre network that is purpose-built and managed for business and government.

Under the deal, Tesserent will initially focus on delivering its Cyber 360 solutions to Vocus’ 5,000-strong enterprise and government clients. This includes essential 8 programs, testing/assurance/red team services, and scaling up key security product controls and managed security services.

Recently, Tesserent cemented its leading position in the federal government cybersecurity solutions space with the acquisition of two businesses.

The new additions are expected to immediately integrate into Tesserent’s ecosystem, particularly its North Security business. This area is tasked with leading the company’s federal government team by delivering large multi-year projects.

Tesserent CEO, Kurt Hansen commented:

We are extremely pleased to be able to partner with Vocus on their cybersecurity initiatives with their enterprise clients. Increasingly critical infrastructure controls are coming under cyber-attack and we look forward to working with Vocus to improve their clients’ cybersecurity resilience.

This partnership will enhance Tesserent’s profitable organic growth through access to clients that are currently not being addressed by our current client facing team.

About the Tesserent share price

Adding to today’s losses, the Tesserent share price has dropped by more than 50% in the last 12 months. A stark contrast to when the company’s shares reached an all-time high of 44 cents at the beginning of January.

Based on today’s prices, Tesserent presides a market capitalisation of roughly $200.22 million and has approximately 1.21 billion shares outstanding.

The post Tesserent (ASX:TNT) share price slides despite Vocus deal appeared first on The Motley Fool Australia.

More reading

• Why has the Tesserent (ASX:TNT) share price tumbled 12% in a month?
• Tesserent (ASX:TNT) share price leaps 10% on acquisition news

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IGO Limited (ASX: IGO) share price is struggling today, down 2.07% to $10.65.

The mining and resources giant is facing resistance as investors respond to a company update on the Burracoppin gold project. This includes the results from the Exploration Incentive Scheme (EIS) co-funded diamond drilling at the Crossroads prospect.

Moho Resources Ltd (ASX: MOH) and IGO formed an unincorporated 70:30 joint venture (JV) to explore the site. Under the agreement, if warranted, the JV may extend to developing and mining and IGO can convert its 30% stake to a 10% free carried interest.

Burracoppin is located in the WA wheat belt, about 22km west of the Edna May gold mine. Let’s take a look at what the JV released today.

What was announced today?

The IGO share price is falling after an update was provided by Moho regarding the exploration status of Crossroads. Moho outlined the diamond drilling program has been completed, with 4 diamond holes drilled totaling 630 metres.

Three holes had numerous Intercepts of gold more than 0.1g/t Au and confirmed previous reverse-circulation (RC) drilling outtakes.

Moho summarised that three positive gold assays from diamond drilling. These included 0.89m @ 0.79g/t Au from 75.91m, 1m @ 0.49 g/t Au from 29.2m, and 1m @ 0.41 g/t Au from 55.5m.

In addition, another 3 holes intersected significant silver mineralisation, including 2.4m @ 8.50 g/t Ag from 12.4m.

Moho says consultant geochemist Richard Carver of GCXplore Pty Ltd has reviewed the data generated by drilling programs to date and made several observations about the gold prospectivity around the Crossroads prospect.

For instance, Carver surmised that drilling to date covers only part of the strongest auger gold anomaly. He also found there is weak auger gold anomalism about 400m to the west of the drilled area, and that the anomalism extends south from the drilled area to the large magnetic high about 1,200m southeast of the drilled area.

Carver also concluded that northwest of the drilled area no gold anomaly has been detected due to limited soil data. He also found the anomalous gold trend may still exist as “it is likely that the cover is thickening as the system drains in that direction”.

Finally, Carver noted that two gold zones are evident at the crossroads prospect, with a broader north-south striking western zone of at least 50m width of mineralised bedrock present with shallow easterly dips.

Next up, Moho and IGO under the JV will undertake follow-up air-core drilling around the Crossroads prospect.

IGO share price summary

Despite some recent turbulence, the IGO share price has still boasted an outsized 68% return in the last 12 months. It has also rallied around 66% this year to date.

It has reached a series of all-time highs in the past month and is well ahead of its benchmarks across longer-term time frames.

The post Why is the IGO (ASX:IGO) share price in the doldrums today? appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Poseidon Nickel Ltd (ASX: POS) share price is riding waves on Tuesday after the company released an update on the restart of its Black Swan Project.

It follows yesterday’s news detailing positive assay results from the project’s Silver Swan Channel. Those results spurred the company’s stock to surge 8.7% to close at 10 cents on Monday.

Today, the Poseidon Nickel share price has been wobbling. It reached as high as 10.5 cents and as low as 9.9 cents during intraday trade.

Right now, it’s flat with its previous close.

Let’s take a look at today’s news from the nickel explorer and developer.

Poseidon Nickel share price wobbles on Black Swan update

The Poseidon Nickel share price is on the move on Tuesday after the company’s managing director and CEO, Peter Harold noted that drilling programs at the Black Swan Project continue to show positive results.

Harold stated that the results show the potential for an increase in the mining inventory for the restart.

So far, drilling has flagged the potential for more consistent metallurgically favourable serpentinite mineralisation in a disseminated zone below the existing pit.

Additionally, knowledge of the project’s resources helps to build an understanding of its mineralogy and metallurgy, thereby allowing the company to refine its ore blending strategy.

The ‘Feed the Mill‘ strategy employed by Poseidon Nickel to restart the project is also continuing nicely.

The strategy is based on feeding the 1.1 million tonnes per annum processing circuit from a combination of feed sources to maximise nickel units produced.

The company has now approved studies on dewatering the Black Swan open pit – set to begin in 2022. It has also given the okay to work on getting environmental and mine approvals.

On top of that, it’s started looking into hiring project management leaders, getting approvals for site-based accommodation, and grid power allocation.

After the company finishes the current drilling programs at the project’s Silver Swan Channel and BSD, and receives assay results, updated mine studies, and indicative offtake terms, a further internal Preliminary Economic Assessment will be completed.

Poseidon Nickel expects to make a final investment decision on the project’s restart in July 2022. After that, commissioning is scheduled for the first quarter of 2023. That will lead to the Bankable Feasibility Study, due in June 2022.

No doubt, many eyes will be on the Poseidon Nickel share price then. Right now, the company’s stock is 42% higher than it was at the start of 2021.

The post Why is the Poseidon Nickel (ASX:POS) share price hitting stormy seas today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Poseidon Nickel (ASX:POS) share price is climbing 8% today
• Poseidon Nickel (ASX:POS) share price booms 17% on ‘exceptional’ drilling results

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is on fire today. Zip shares are currently up a healthy 2.18% at $4.22 each. But earlier this morning, it was a different story. Yes, Zip had a rather rough start to this Tuesday’s trading day. This buy now, pay later (BNPL) company opened at $4.10 a share this morning before falling all the way down to $4.06 (down more than 1%) shortly after market open. But then, investors started buying, pushing the Zip share price up to the level we now see.

This is a rather strange move for Zip. Not because the broader market is doing anything too different. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.41% today. But because of what is happening to the Afterpay Ltd (ASX: APT) share price this Tuesday.

As many investors would be aware, Afterpay and Zip are both peers and rivals in the BNPL space. Although Afterpay has long been the king of the hill when it comes to BNPL shares, Zip has been a strong silver medallist for years now.

So it goes without saying that these two ASX BNPL shares often move in tandem with each other. But not today.

In contrast to Zip’s strong upwards move, Afterpay shares are getting hammered today. The BNPL pioneer is currently down a nasty 2.66% to $81.66 at the time of writing. What’s more, Afterpay hit a low of $80.21 earlier this morning. That was a new 52-week low for this company, bringing it down to levels not seen since October 2020.

So why are Zip shares outperforming its rival Afterpay so dramatically today?

Zip share price zips past Afterpay

Well, one possible answer could be the performance of Afterpay’s soon-to-be new owner. Back in August, Afterpay announced it was to be acquired by the US payments giant Block Inc (NYSE: SQ), formerly known as Square. This deal, which has now been green-lighted by both Block and Afterpay shareholders, will see Afterpay investors receive 0.375 shares of Block for every share of Afterpay owned. As such, providing the deal eventually goes ahead, investors are now likely valuing Afterpay more on what the Block share price does than on Afterpay’s business fundamentals.

Well, last night, Block shares got massacred. The company closed a nasty 5.34% lower this morning (our time) at US$158.30 a share after touching a new 52-week low of its own (US$157.57). As such, the value of that 0.375 of a Block share that Afterpay owners are being promised also just slid 5.34%. So it’s perhaps no surprise then that we see such a steep fall in the Afterpay share price today.

But Zip, having no pending takeover offer on the table to weigh its own shares down, is instead enjoying a solid day of gains on the ASX boards today. As are, mind you, many other ASX tech shares. These include Xero Limited (ASX: XRO), up 2.3%. As well as Appen Ltd (ASX: APX), up 2%.

At the current Zip share price, this ASX 200 BNPL share has a market capitalisation of $2.48 billion.

The post Why is the Zip (ASX:Z1P) share price outperforming Afterpay today? appeared first on The Motley Fool Australia.

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• Why Afterpay, Corporate Travel, Dubber, and EML shares are falling

Motley Fool contributor Sebastian Bowen owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO, Appen Ltd, Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO, Appen Ltd, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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While the S&P/ASX 200 Index (ASX: XJO) hasn’t provided much of a Santa rally this year, there are a number of ASX-listed shares that are still feeling merry this December.

Taking a look at the data, 20 companies on the ASX with a market capitalisation of more than $250 million have experienced a gain of 15% or greater so far this month.

Today, we’ll take a look at three of these companies to see what’s driving their high spirits.

These ASX shares have made it onto the good list in December

It’s the season for giving, and investors like to receive a pleasant surprise as much as anyone else. Fortunately, the shareholders of the next three companies have been treated to share price gains of more than 15% in December alone.

Best & Less Group Holdings Ltd (ASX: BST)

The first ASX share charging towards Christmas with strong share price appreciation is Best & Less. Since the beginning of the month, shares in the clothing retailer have rallied 15.3%.

The lift comes after the company experienced a steep 27% selloff in its shares from 9 November to 26 November. While the market seemed put off by Best & Less’s underwhelming trading update in mid-November, the sentiment has shifted.

Late last month, the company shared its annual general meeting presentation. Positively, those slides contained promising performance for Best & Less online sales. In fact, online sales were reportedly up 33.5% on FY20. Similarweb’s traffic overview shows Best & Less website visits at 2.42 million in November, compared to 1.9 million in July.

DGL Group Ltd (ASX: DGL)

The next ASX share climbing down the chimney to make its way onto this list is DGL Group. It has been a solid month so far for the chemical supplies company, rising 18.3% since 1 December.

A shortage of the diesel fuel additive AdBlue could be driving heightened awareness of DGL Group. The company is Australia’s largest supplier of the emission-reducing mixture, though supplies are quickly dwindling. Hopefully, an agreement reached between Incitec Pivot Ltd (ASX: IPL) and the federal government should prevent a crisis.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Finally, we’ve left the biggest gift giver for last — Neuren Pharmaceuticals. This ASX-listed biopharmaceutical share has more than doubled in value since the merry month kicked off. The Neuren Pharmaceutical share price has rewarded its shareholders with a 104% gain.

The exhilarating surge in share price followed the company’s announcement of positive phase three clinical trial results. Specifically, Neuren’s application of trofinetide to treat young women with Rett syndrome yielded promising data. As a result, the treatment will begin to move through the regulatory process for approval.

The post 3 ASX shares giving the gift of gains heading into Christmas appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended DGL Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is struggling this week amid the company’s Scarborough Project being put back in the hot seat and slumping oil prices.

The Supreme Court of Western Australia is hearing submissions against the project’s environmental approvals.

The Conservation Council of Western Australia (CCWA) is taking aim at the state’s Environmental Protection Authority over its decision to give the project the thumbs up.

Yesterday, the Woodside share price tumbled to close 2.88% lower. It has recovered slightly today.

Right now, it’s trading 0.47% higher at $21.37.

For context, the S&P/ASX 200 Index (ASX: XJO) slipped 0.49% yesterday. Though, it’s up 0.41% today.

Let’s take a closer look at this week’s news of the oil and gas producer.

What might be driving the Woodside share price this week?

Scarborough approvals questioned in court

The Woodside share price dipped yesterday amid the beginning of a court battle over the legality of Scarborough’s environmental approvals.

The CCWA – represented by the Environmental Defenders Office ­– is arguing the environmental watchdog let the approvals be changed to allow Woodside to process more gas. It allegedly did so without assessing the impact of those changes.

The CCWA believes, in making the changes, the Western Australian Environmental Protection Agency contravened the Environmental Protection Act.

Executive director of CCWA Maggie Wood commented on the lawsuit, saying:

Unless these environmental approvals are questioned and challenged, Woodside could have free rein to produce staggering amounts of pollution, far in excess of that which they initially proposed …

We believe that all developers – but particularly developers of highly contentious fossil fuel projects – should be held to the same consistently high standards and measures.

Managing lawyer at the Environmental Defenders Office Tim Macknay said approvals such as Scarborough’s shouldn’t be “rubber stamped”:

In short, this case is simply about ensuring that projects are properly assessed for their environmental impacts and that government ministers and statutory bodies follow correct process.

The CCWA launched another case against the project’s approvals last month.

The second Supreme Court case will see it claiming approvals for the Pluto facility’s expansion, granted by the CEO of the Department of Water and Environmental Regulation, are unlawful.

Oil prices slump

Oil prices might also be partly to blame for the Woodside share price’s lacklustre performance this week.

The price of Brent crude futures slipped 2.7% on Monday, while those of West Texas Intermediate crude fell 3.7%.

According to Reuters, the dip was due to increasing concerns of Omicron breakouts around the globe.

Soaring numbers of new cases and lockdowns in parts of Europe could see demand for fossil fuel drop worldwide.

At this stage, West Texas Intermediate crude futures are back in the green on Tuesday. However, Brent crude futures are still dipping.

Woodside share price snapshot

2021 has been rough for the Woodside share price.

It has fallen 7.3% year to date. It’s also slipped more than 3% over the last 30 days.

The post Why is the Woodside (ASX:WPL) share price on the slide this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As we roll on to the final weeks of the year, Galan Lithium Ltd (ASX: GLN) shareholders are enjoying the gains of their Christmas stock-ings in the minerals company.

Shares are up 15% in the last month and have climbed off a low of 92 cents back in October to now trade at $1.72 apiece.

Two catalysts early in December helped give the Galan Lithium share price an additional boost to its new 52-week highs recently. Not to mention the price of lithium continues to climb to new all-time highs on a repeated basis. Here are the details.

What’s got the Galan Lithium share price racing higher?

Early in December, the company detailed its economic assessment of its Hombre Muerto West Project, located in Argentina.

As reported by The Motley Fool at the time, Galan upgraded the net present value (NPV) of the project by a staggering 120% to US$2.2 billion ($3.1 billion at the current exchange rate).

Galan Lithium also bumped its annual EBITDA projections by 65% to US$287 million. Each of the inputs was assigned using a lithium price of US$18,594 per tonne.

The upgrades do a great deal for Galan’s share price valuation when factoring in a sum-of-the-parts style analysis, often employed by analysts in stock valuations.

Taking the adjusted NPV valuation of $2.2 billion and dividing it by Galan’s fully diluted share count gives a $7.30 per share valuation for the project. Depending on what weight analysts and/or the company assign to this revenue segment, the project may or may not build in a premium to Galan’s share price valuation.

Afterward this announcement, the company gave another update on its Hombre Muerto project, advising a feasibility study tender on the site was completed.

Galan also advised that the next stage of the project is expected to be delivered late in the fourth quarter of 2022.

Seeing as the price of Lithium has soared over 17% to new all-time highs once again since December, it also appears the ASX lithium basket is set to fare well in response to this.

Lithium has also climbed more than 74% this year to date and is showing considerable strength amid heightened demand for the material in a number of electrical applications.

Galan share price summary

Galan shares have been an outstanding performer these past 12 months and have climbed 453% in that time.

Year to date Galan shares have soared another 345%.

The post Why is the Galan Lithium (ASX:GLN) share price having such a happy Christmas? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Galan Lithium (ASX:GLN) share price leapt 7% today
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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been a disappointing year for the NEXTDC Ltd (ASX: NXT) share price.

After being up 14% to a record high of $14.09 at one stage, the data centre operator’s shares are now on course to end the year with a small decline.

Will 2022 be better for the NEXTDC share price?

The good news is that a number of brokers believe the NEXTDC share price is undervalued at the current level, which could bode well for its performance in 2022.

For example, a note out of Macquarie Group Ltd (ASX: MQG) last week reveals that its analysts have an outperform rating and $16.10 price target on the company’s shares.

Based on the current NEXTDC share price of $12.17, this implies upside of 32% for the company’s shares over the next 12 months.

Macquarie was pleased with NEXTDC’s recent acquisition of its first edge data centre. Edge data centres serve areas with populations of 10,000 to 1 million people. The broker sees a significant opportunity in this market as the cloud computing boom continues, complementing its leadership position in capital cities.

Who else is bullish?

The team at Citi is also bullish on the NEXTDC share price. Its buy rating and $15.40 price target implies potential upside of 27% for investors. Citi is positive on the company due to the shift to the cloud and digitisation trends.

The broker commented: “With bookings going forward skewing towards wholesale/hyper-scale, we expect revenue per MW to decline, however expect strong earnings growth underpinned by accelerating cloud adoption and digitisation.”

Finally, analysts at Goldman Sachs are also very positive and have a conviction buy rating and $14.40 price target on the company’s shares. Goldman advised that it sees “NXT continuing to grow EBITDA at c.20%” through to FY 2024 from $134 million to $232 million.

All in all, if these brokers are on the money, the NEXTDC share price could have a much better year in 2022.

The post Is the NEXTDC (ASX:NXT) share price a steal after going nowhere in 2021? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Marley Spoon AG (ASX: MMM) share price is surging higher today. This comes after the company announced it will acquire an Australian ready-to-heat meal company.

At the time of writing, Marley Spoon shares are fetching 82 cents apiece, up 17.27%. Earlier in the day, they hit a high of 86 cents, a gain of almost 24% on yesterday’s closing price.

Marley Spoon boosts existing portfolio of brands

Investors are pushing up the Marley Spoon share price after the company revealed the acquisition will expand its addressable market.

According to the release, Marley Spoon has entered into an agreement to take over Melbourne-based ready-to-heat meal provider, Chefgood.

Offering more than 30 meals rotating every week across different subscription plans, Chefgood targets healthy and weight-conscious consumers. The company’s manufacturing facilities in Melbourne produce high-rating Australian ready-made meals.

Under the deal, Marley Spoon will acquire 100% of the share capital in Chefgood for a total purchase price of up to $21 million. This will be payable in three tranches in January 2022, September 2022, and May 2023.

In addition, there are earn-outs of up to $5.6 million over the next 2.5 years based on the achievement of revenue targets.

The acquisition is expected to give Marley Spoon a foothold in a growing and complementary category.

Chefgood is operating at a $26 million net revenue run-rate based on the 3-month period of September to November 2021. This represents a growth of 137% year on year.

Furthermore, the company is generating positive earnings before interest, tax, depreciation, and amortisation (EBITDA) and net cash flow.

The acquisition is anticipated to close in January 2022 at which the first payment tranche of $10 million is due.

Marley Spoon will fund the transaction through an $8 million equity placement, and an $11 million extension to its existing debt facility.

About the Marley Spoon share price

Marley Spoon is a leading global subscription-based meal kit provider. The company services customers in Australia, the United States, and across Europe.

In the past 12 months, the Marley Spoon share price has fallen by around 70%, despite today’s strong gains. Investor sentiment has waned in the company which has seen its shares sink by almost 50% since late October.

Based on today’s price, Marley Spoon presides a market capitalisation of $214.46 million and has approximately 284.05 million shares outstanding.

The post Marley Spoon (ASX:MMM) share price leaps 17% on acquisition news appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Marley Spoon AG. The Motley Fool Australia has recommended Marley Spoon AG. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rhinomed Ltd (ASX: RNO) share price is soaring today on the back of clinical trial results into a new COVID-19 test for children.

At the time of writing, shares in the company are trading at 29 cents, up 9.43%.

Let’s take a closer look at the news from the diagnostic company today.

What did the company announce?

Rhinomed announced results from a “world first” clinical trial of a diagnostic test for respiratory viruses in children. This includes the ability to detect coronavirus, influenza, and pneumonia.

The clinical trial assessed the use of its patented Rhinoswab Junior to test children at the Murdoch Children’s Research Institute.

The test is designed to cause less discomfort for children compared to standard throat and deep nasal swabs.

The trial recruited 254 children aged between 4 and 18 years showing respiratory symptoms.

It found 82% of children would rather have the Rhinoswab Junior test than the standard combined throat and nose swab.

Meanwhile, 79% of parents and 82% of nurses preferred the children to be tested with Rhinoswab Junior.

The company said these trial results have been presented to local and international “key opinion leaders” and will be reported in a medical journal early in 2022.

Management comment

Commenting on the clinical trial results, Rhinomed CEO Michael Johnson said:

The results of this world first study come at a vitally important time. Testing of children has always been problematic with high testing reluctance due in no small part to the fear and anxiety families have toward the testing process.

As we continue to deal with SARS-CoV-2 and its variants it is critically important that we enable mass, high frequency testing of children. The results of this trial and the previously published results from NSW Health Pathology provide clear evidence that we can easily and quickly test kids.

Rhinomed share price snapshot

The Rhinomed share price has soared by nearly 66% in the past 12 months and 21% in the past month alone.

The company has a market capitalisation of around $75 million based on its current share price.

The post Rhinomed (ASX:RNO) share price surges 9% on world-first trial result appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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