This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Exciting news dropped over the last couple of days when Elon Musk officially announced he intends to back away from his Twitter (NYSE: TWTR) buyout deal. Musk’s lawyers say the company has refused to give them proper information regarding how many Twitter accounts are bots, meaning it broke its contractual obligations.

The main accusation is that the percentage of spam bots among the monetizable daily active users (mDAUs) is materially higher than the 5% number Twitter purports in its financial documents. Immediately after the announcement from the Musk team, Twitter’s board chair Bret Taylor tweeted (of course) that the company plans to take Musk to court to legally force him to close the deal at the agreed-upon price.

Here are two reasons Elon Musk will be legally forced to close the Twitter deal, and why he might slither out unscathed. 

1. The bots are not a legitimate excuse 

According to the letter Musk’s lawyers released, his main complaint is that Twitter’s bot problem is much worse than the company claims. If true, this would obviously be a huge problem, especially because Twitter’s main business is to sell advertisements to these users. Advertisers wouldn’t be very happy if it turned out a ton of them were fake.

While definitely a concern in a vacuum, it doesn’t seem likely this accusation will enable Musk to break off a signed merger agreement. For one, Musk clearly knew about the bot problem before he made the offer to Twitter — it was one of the reasons he wanted to buy the company in the first place. His account has a history of bots responding to his tweets trying to defraud people with cryptocurrency scams, so it is not like he was unaware of the problem.

Second, this was something a potential buyer is supposed to do before signing a deal. If you sign a contract to purchase a house at a certain price before going to inspect it in person, but then find cockroaches all over the place, you can’t just renege on the deal because you feel stupid. The Delaware Court (where the legal battle is set to take place) will likely rule the same way with Musk unless evidence materializes that a huge portion of Twitter’s active accounts is fake.

2. Historical legal precedent

Speaking of legal rulings, there are prior court cases that can guide us on what the Delaware Court may rule in this case. In 2000, Tyson Foods agreed to buy another food producer called IBP Corporation. When the market and economy went into a downturn in 2001 and 2002, Tyson tried to get out of the deal because it argued it had gotten misleading information about IBP’s business. Sound familiar?

The court argued that Tyson had to go through with the deal. The Tyson-IBP case has been a landmark decision, guiding companies, shareholders, and judges in deciding whether a merger agreement has to go through. With this in consideration, Musk will have to bring some incredibly compelling evidence to convince the Delaware Court to side with him on this case. 

Why Musk still might win

Don’t think this is a cinch for Twitter just yet. Anything and everything can happen in a legal battle, and there’s a reason Twitter’s stock trades below $37 a share when the proposed buyout was at $54.20. Musk’s team could find evidence that Twitter has been defrauding investors for years by lying about its bot problem. How likely is this? I’m not sure. But it definitely isn’t zero.

Investors should also consider Musk’s past history with the law. The Solar City deal, the fake take-private announcement for Tesla, and the one-million robotaxi claim have skirted, if not passed, the line of what is legal or not in the business world. Even if the precedent is for the court to rule against Elon Musk, it might not matter, because the man always seems to get what he wants.

Get your popcorn ready. The troubled Twitter takeout is shaping up to be one of the biggest legal battles in business history.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 reasons Elon Musk’s Twitter break-up is destined to lose in court appeared first on The Motley Fool Australia.

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More reading

• Elon Musk doesn’t want to buy Twitter anymore, and neither should you

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Twitter. 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 Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Core Lithium Ltd (ASX: CXO) share price is in reverse today following a resource statement from the company.

At the time of writing, the lithium developer’s shares are down 5.98% to 86.5 cents apiece.

It’s also worth noting that the company’s shares are down 30% in the past month after strong selling pressure in the lithium sector.

‘Significant increases’ to Finniss Lithium Project resource statement

Investors are shrugging off the latest positive release from the company, sending the Core Lithium share price into a funk.

According to the Australian Financial Review, it appears short sellers are placing bets that lithium companies will slump further. This has undoubtedly weighed on the entire industry, with all lithium companies deep in the red.

Earlier this morning, Core Lithium advised of significant increases in the Mineral Resource Estimate and Ore Reserve Estimate for its wholly-owned Finniss Lithium Project.

Management noted that a culmination of drilling and exploration efforts undertaken throughout the 2021 drilling season led to the update.

As such, the Mineral Resource Estimate improved by 28% to 18.9Mt (million tonnes) at 1.32% Li2O (lithium oxide).

Furthermore, the Ore Reserve Estimate for the project increased by 43% to 10.6Mt at 1.3% Li2O.

Core Lithium stated that construction and mining activities are ramping up with new equipment and people arriving on site.

The project is progressing and is currently on track to make its first lithium shipment by the end of 2022. It is expected that first concentrate production will commence soon after.

Management commentary

Core Lithium non-executive chair Greg English touched on the positive announcement, saying:

This is a tremendous outcome for Core and our shareholders and testament to the efforts of our operations and exploration teams as we focus on growing Finniss’ mine life and scale beyond last year’s DFS assumptions.

The new Ore Reserve Estimate has resulted in a 12-year mine plan. In parallel, our teams will complete the 2022 drilling campaign to see if it can deliver equally impressive results across both our open pit and underground deposits.

Most of the deposits at Finniss – including BP33, Carlton, Hang Gong, Ah Hoy and Sandras – remain open at depth and along strike and we are confident in the potential to deliver further significant increases to the Finniss resource and reserve position.

About the Core Lithium share price

Despite today’s losses, the Core Lithium share price has rocketed by around 300% over the past 12 months.

Investors rallied behind the company’s shares until April this year, when the company’s share price reached an all-time high of $1.675. However, since then, it has been in a slow and steady decline, pulled down by surrounding negative sentiment.

Core Lithium is roughly valued at $1.65 billion, making it the seventh biggest lithium company in terms of market capitalisation.

The post Why is the Core Lithium share price powering down 6% today? appeared first on The Motley Fool Australia.

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• 5 best ASX All Ords mining shares in FY22

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 Scott Phillips.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.3% to 6,620.5 points.

Here’s what is happening on the ASX 200 on Tuesday:

Zip cancels merger with Sezzle

The Zip Co Ltd (ASX: ZIP) share price is heading in the right direction at last. This follows a positive reaction to the buy now pay later (BNPL) provider’s decision to scrap its merger with rival Sezzle Ltd (ASX: SZL). While the decision is mutual, Zip will pay Sezzle a break fee of US$11 million. Sezzle shares have crashed 34% on the news, leaving it with a market capitalisation of approximately $80 million. The market appears to believe its days are numbered.

Lake Resources halts shares after J Capital attack

The Lake Resources N.L. (ASX: LKE) share price has been halted on Tuesday. This is so the embattled lithium developer can respond to a short seller report from J Capital. The research firm commented: “Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would.”

AP Eagers’ update

The Eagers Automotive Ltd (ASX: APE) share price is pushing higher today after the auto retailer released a half-year trading update. Eagers revealed that it expects to report a statutory net profit before tax from continuing operations of $246 million. This is ahead of its guidance range of $225 million to $240 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 index has been the New Hope Corporation Limited (ASX: NHC) share price with a 5% gain. This follows a positive night of trade for coal prices. Going the other way, the Core Lithium Ltd (ASX: CXO) share price is the worst performer with a 6% decline. Weakness in the lithium industry has offset the release of a mineral resource update.

The post ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack appeared first on The Motley Fool Australia.

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• ‘Gems in the chaos’: The outlook for ASX 200 shares in FY23
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• Lake Resources shares on watch amid short seller attack
• The ASX sector set to pay out ‘massive record dividends’: fund manager

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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 Scott Phillips.

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The ASX cannabis sector had its growth clipped in FY22 with plenty of shares declining in the financial year.

Turning to FY23, the outlook is choppy. Investors are continuing to navigate the prospects of higher inflation and/or potential economic recession, putting growth at risk.

These trends have spilled over into the new financial year. On the charts, ASX cannabis shares are taking an absolute hammering.

Let’s take a look.

Industry growth trends bode well for ASX cannabis shares

All growing puns aside, Australia’s cannabis sector has been poised to grow by more than 80% year over year in CY22.

This growth could generate sales of more than $420 million, according to research conducted by FreshLeaf analytics, which has been researching Australia’s cannabis industry since 2017.

The report, not freely available, said consumer trends are shifting to acceptance of medicinal cannabis use. Access is also improving for patients.

It also said that “psychedelics are a big part of a new future growth narrative,” adding that government support will continue to play a large role through “down-scheduling”.

Meanwhile, the Australian legal cannabis market was sized at $75 million in 2021.

The market is expected to grow at a compound annual growth rate (CAGR) of 30% from 2022 to 2030, according to Grand View Research.

“Increased use of marijuana, mostly for medical purposes, is boosting total market growth as customers migrate from traditional treatment methods to cannabis-based treatment,” the report noted.

With growth potential on the horizon, this could weigh positively for several beaten-down ASX cannabis shares. These include Incannex Healthcare Ltd (ASX: IHL), Emyria Ltd (ASX: EMD) and Cronos Australia Ltd (ASX: CAU).

The returns of these ASX shares are shown below

The post Green shoots or just weeds? The outlook for ASX cannabis shares in FY23 appeared first on The Motley Fool Australia.

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• How did ASX cannabis shares perform in FY22?
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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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Bitcoin (CRYPTO: BTC) miners are mothballing their specialised rigs in Texas as energy demand in the Lone Star state surges to records amid a scorching heatwave.

Texas is home to some of the biggest global crypto miners, including Argo Blockchain, Riot Blockchain, and Core Scientific.

The United States attracted a flood of new Bitcoin miners following China’s crackdown on crypto mining in early 2021.

Miners run massive series of computers to verify transactions on the blockchain, earning tokens in return. And the energy consumption is jaw dropping. The University of Cambridge estimates that in 2020 Bitcoin used as much energy as all of the Netherlands, a nation of 17 million people.

Crypto miners flock to Texas

Texas has become a particularly attractive location for the miners due to its relatively low electricity prices and limited regulations of the industry. And, as Bloomberg reports, the Electric Reliability Council of Texas (ERCOT) forecasts that crypto mining activity will continue to grow.

Miners are expected to increase their electricity demand by as much as six gigawatts by this time next year. That’s equivalent to the energy use of every home in Houston, a city of more than two million people.

Why are Bitcoin miners shuttering their rigs?

The shutdown in Texas will only last for the duration of the current, heat wave fuelled, energy shortages.

In an agreement with the state, miners need to shut down their equipment during times of scarce capacity.

Lee Bratcher, president of Texas Blockchain Association explained (quoted by Bloomberg):

There are over 1,000 megawatts worth of Bitcoin mining load that responded to ERCOTs conservation request by turning off their machines to conserve energy for the grid This represents nearly all industrial scale Bitcoin mining load in Texas and allows for over 1% of total grid capacity to be pushed back onto the grid for retail and commercial use.

Core Scientific has around 15% of its own Bitcoin machines operating out of Texas, with the rest spread across five other US states.

CEO Mike Levitt commented:

Currently, 100% of the machines located in Texas have been powered off to provide support for the ERCOT grid. In troubled situations including the current Texas heat event, we have been curtailing power and will continue to curtail power as needed.

Bitcoin miners across the world have come under pressure as the token – along with most every crypto – has collapsed in 2022.

Bitcoin is down 4% overnight, currently trading for US$19,955. The token reached all time highs of US$68,790 on 10 November last year.

The post Why are Bitcoin miners shutting down in Texas? appeared first on The Motley Fool Australia.

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• Is the Bitcoin price heading down to US$10,000? Here’s Wall Street’s take
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• How did the price of crypto assets perform in June?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) listed telco Spark New Zealand Ltd (ASX: SPK) is marching higher in early trade.

Spark shares closed yesterday trading for $4.45 each and are currently at $4.54 a share, putting the company’s shares up 2.02% for the day so far.

This comes after the New Zealand-based telecommunications service provider reported a NZ$900 million (AU$820 million) divestment.

What asset is the ASX 200 telco selling?

The Spark share price is marching higher after the company reported the Ontario Teachers’ Pension Plan Board will acquire a 70% interest in its TowerCo business.

The transaction values the business – with some 1,263 sites in New Zealand – at NZ$1.18 billion. According to Spark, this represents an FY23 pro-forma earnings before interest, taxes, depreciation and amortisation (EBITDA) multiple of 33.8 times.

The acquisition, subject to approval from the Overseas Investment Office, is forecast to occur in the first half of the 2023 financial year. On approval, the ASX 200 telco expects net cash proceeds of NZ$900 million.

Spark reported that the deal includes a 15-year agreement with TowerCo for access to existing and new towers, along with a commitment to build 670 new sites over the coming decade.

What did management say?

Management at the ASX 200 telco believes the deal will maximise shareholder value.

According to Spark chair, Justine Smyth:

The establishment of TowerCo will accelerate Spark’s strategic objective of delivering a smart, automated network, while maximising value for shareholders.

The transaction will deliver proceeds of $900 million, enabling direct shareholder returns and investment in future growth opportunities that will accelerate Spark’s transition from traditional telecommunications to higher growth digital services.

Bruce Crane, senior managing director at Ontario Teachers added, “This investment builds on our long track record of investing in superior businesses in New Zealand and will draw on our deep experience investing in digital infrastructure businesses globally.”

Spark CEO Jolie Hodson noted that the ASX 200 telco will “continue to own all the ‘smarts’ of our network – such as radio equipment and spectrum – which is what drives our competitive advantage and differentiation in the market”.

How has the ASX 200 telco share been performing?

Spark has been a strong performer in difficult market conditions this year.

Since the opening bell on 4 January, the Spark share price has gained 6%. That compares to a year-to-date loss of 13% posted by the ASX 200.

At the current share price, Spark shares pay a 5.8% trailing dividend yield, unfranked.

The post ASX 200 telco marches higher on $820 million asset sale appeared first on The Motley Fool Australia.

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More reading

• Broker gives its verdict on the WiseTech share price
• Electro Optic Systems share price dips amid shock CEO resignation
• ‘Gems in the chaos’: The outlook for ASX 200 shares in FY23
• How did ASX biotech shares perform in FY22?
• Zip share price jumps 6% after merger deal with Sezzle is cancelled

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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The WiseTech Global Ltd (ASX: WTC) share price has not been immune to the tech selloff in 2022.

Since the start of the year, the logistic solutions technology company’s shares have dropped 32% to $40.66.

This is broadly in line with the S&P ASX All Technology index, which is down 35% year to date.

Is the WiseTech share price good value now?

The team at Goldman Sachs have been looking at the tech sector and have given their verdict on the WiseTech share price.

And while the broker isn’t recommending it as a buy just yet, it does see scope for its shares to push higher.

According to the note, the broker has retained its neutral rating and cut its price target by 15% to $45.00. Based on the current WiseTech share price, this implies potential upside of almost 11% for investors.

What did the broker say?

Goldman notes that global trade conditions are weakening and highlights the impact this could have on its CargoWise (CW) business. And while it expects price increases to offset some of this, it isn’t enough to stop it from lowering its estimates a touch.

One positive, though, is that its CW revenues could receive a boost if one of its customers, DSV Panalpina, makes a major acquisition.

The broker explained:

We note weakening global trade conditions, which WTC is exposed to with c.50% of CW revenues on a transaction basis. Further potential M&A could support ongoing large customer wins. We note recent press reports suggesting DSV Panalpina (CW customer) reportedly interested in acquiring Top 25 LGFF CH Robinson Fowarding (non-CW).

Overall we revise revenues lower on weaker FY23/24E volume growth contributions, partially offset by higher pricing expectations (given pricing power, and market inflation), while update for spot FX (which drives overall EBITDA upgrades of +0-1%). Our 12m TP is -15% to A$45.

The post Broker gives its verdict on the WiseTech share price appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is in the red today while the broader ASX climbs.

During early morning trade, the defence contractor’s shares are down 3.11% to 94 cents apiece.

In contrast, the All Ordinaries Index (ASX: XAO) is 0.23% higher to 6,808.5 points.

CEO steps down

Investors are selling off Electro Optic Systems shares amid the company’s leader stepping down.

According to yesterday’s late afternoon release, Electro Optic Systems advised that its CEO, Dr Ben Greene, has tendered his resignation.

However, the board stated that it is well advanced in finding a replacement and Dr Greene’s resignation will take effect upon the new appointment.

But he’s staying with the company

Given the wealth of knowledge that Dr Greene possesses within the sector, the board has offered him a different role.

As such, Dr Greene has accepted the position of head of innovation.

Electro Optic Systems chair, Peter Leahy touched on the succession, saying:

Dr Greene’s resignation as CEO comes after several decades of committed service and leadership to EOS as its founder and leader.

Dr Greene’s technological and engineering capabilities can only be described as world leading and visionary, with his initial designs of remote weapons systems and space situational awareness capabilities setting a global standard in the defence and space technology sectors.

Leahy went on to add:

…The Board welcomes Dr Greene’s ongoing commitment to the Company as its Head of Innovation, where his tremendous technological and scientific capabilities will be put to best use.

The board also pointed out that it is considering director suitability as part of a broader strategic review. The team is actively exploring its strategic options across the company to maximise shareholder value.

Electro Optic Systems shareholders may want to keep a close eye on this. The strategic review is expected to be released in the coming weeks.

About the Electro Optic Systems share price

A difficult 12 months marred by unfavourable trading conditions has led to the Electro Optic Systems share price sinking nearly 80%.

In 2022, the shares are down 60% on the back of continued selling pressure.

Based on today’s share price, Electro Optic Systems has a market capitalisation of roughly $157.7 million.

The post Electro Optic Systems share price dips amid shock CEO resignation appeared first on The Motley Fool Australia.

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• Own Electro Optic Systems shares? Here’s how the company is raising $17 million
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• Why is the Electro Optic Systems share price frozen today?

Motley Fool contributor Aaron Teboneras has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The second half of FY22 was challenging for ASX 200 investors, with the S&P/ASX 200 Index (ASX: XJO) dropping 13.5%.

A number of factors are weighing heavily on investors’ minds as we commence the new financial year.

These include the war in Ukraine and its impact on energy prices and international geopolitical stability, and rapidly rising inflation and interest rates both here at home and abroad.

The result so far has been a flight to quality. That means more investors are seeking safety in high-quality ASX 200 value shares and avoiding the riskier growth shares category.

This mindset is likely to last for a while. Remember, many investors have never been through periods of significantly rising interest rates or inflation before. So, uncertainty is likely to reign in FY23.

One professional investment manager says investing over the next decade will be harder, but long-term ASX investors should seek opportunities.

In a downturn, there is opportunity

James Holt is the director of investment solutions at diversified financial services company, Perpetual Limited (ASX: PPT).

In a recent article published on the ASX website, Holt says Perpetual believes “there is always value to be found somewhere in the market”.

Holt says:

It’s easy to feel bearish given the number of challenges investors are confronting. Fire, flood, pandemic, inflation, war, rising interest rates and market volatility are dominating the headlines.

While Perpetual considers that investing over the past decade was easier, with all equity markets rising from March 2009 lows, investing in a predicted “dangerous decade” of higher volatility, inflation and geopolitical uncertainty will be harder. 

Holt adds: “As always, there are gems in the chaos”.

Which ASX 200 shares do you buy in a downturn?

While Holt does not name names, he does discuss sectors that look appealing to Perpetual right now.

Holt says:

In this environment, stocks of interest to Perpetual may include those which could benefit from food and energy inflation or that mine green metals like copper, nickel, rare earths and cobalt which are required to fuel the rise of electric vehicles. 

Some businesses also benefit from rising rates, like insurers as their investment returns rise.

With long locked-down consumers looking for experiences, we also like parts of the travel and tourism sectors.

Holt says his team avoids low-quality companies “with poor business models, no earnings, too much debt or which are badly managed in our opinion”. 

The post ‘Gems in the chaos’: The outlook for ASX 200 shares in FY23 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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ASX biotech shares were hammered in FY22 with the sector facing heavy losses, in line with the wider technology sector.

The ETFs S&P Biotech ETF (ASX: CURE), an index fund tracking the global biotech sector, is down almost 24% this year to date, and 33% in the last 12 months.

This is despite the ETF climbing from 52-week lows back in June, showing ASX biotech shares strengthening into the new financial year, as illustrated below.

Here are three notable biotech shares to emerge from the pack:

Telix Pharmaceuticals Ltd (ASX: TLX)

Shares of Telix tracked the biotech sector closely in FY22 and finished around 22% in the red. The company’s share price also strengthened in late June and rallied into the new financial year.

This followed a key update from the company. Telix signed a license and distribution agreement with Isologic Innovative Pharmaceuticals Ltd (Isologic).

The agreement is for the commercialisation of Telix’s investigational prostate cancer imaging agent, Illuccix.

Isologic is the leading radiopharmaceutical network in Canada, servicing 265 hospitals and clinics
across the country, Telix said.

Momentum has continued into the new financial year with Telix advising yesterday it had dosed the final patient and completed recruitment for its Phase 3 ZIRCON pivotal study.

Mesoblast Ltd (ASX: MSB)

Shares of Mesoblast, on the other hand, didn’t have such an enjoyable run in FY22. The share price bounced repeatedly to new lows until finally bottoming at 61 cents on June 30.

The company left investors underwhelmed last financial year and is now down 61% in the past 12 months, and 43% this year to date. Mesoblast shares are valued at 80 cents each at the time of writing.

The company posted its financial and operational highlights for the last quarter on 1 June although the market was agnostic to the report.

In May, a former shareholder began legal proceedings in the Federal Court alleging Mesoblast misled the market on its remestemcel-L label. This added further pressure to the company’s share price.

The company has also faced similar allegations in the US.

IDT Australia Ltd (ASX: IDT)

Shares of IDT were heavily compressed in FY22 and finished the year deep in the red. Losses have continued to date with the company’s share price finishing around 60% lower last financial year.

One contributing factor was a company update in March. IDT notified the market its submission to the Modern Manufacturing Initiative (MMI) for a Manufacturing Collaboration Stream Grant had been unsuccessful.

But the biggest blow came after IDT was advised that its submission to potentially develop an onshore mRNA manufacturing capability would not progress.

When the company announced its knockback from the federal government back in December 2021, investors ran for the hills.

As a result, IDT shares were heavily punished and plunged 64% from the close on 30 November 2021 to 27 January 2022.

The post How did ASX biotech shares perform in FY22? appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names 2 of the best ASX healthcare shares to buy in FY23
• These are the 10 most shorted ASX shares
• Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher
• Why is the Mesoblast share price leaping 19% today?
• Why has the Mesoblast share price crashed 40% since April?

Motley Fool contributor Zach Bristow 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 Scott Phillips.

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