The Creso Pharma Ltd (ASX: CPH) share price is sinking on Thursday after announcing merger plans.

In morning trade, the cannabis and psychedelics company’s shares are down 5.5% to 17 cents.

Why is the Creso Pharma share price sinking?

Investors have been selling the company’s shares after it announced an agreement with Ontario-based Red Light Holland to combine businesses and create The HighBrid Lab.

Management notes that this will create a leading global psychedelics and cannabinoid company with an implied pro forma equity value of A$371 million (C$347 million). This is based on the closing price of the shares of Creso Pharma and Red Light Holland on 15 June 2021.

According to the release, the agreement will see Red Light Holland acquire all the issued listed shares and options of Creso Pharma. Under the terms of the agreement, shareholders will receive 0.395 of a Red Light Holland share for each fully paid ordinary share of Creso Pharma.

Why merge?

The HighBrid Lab’s proposed non-executive Chairman, Bruce Linton, commented: “Having worked with both the Creso Pharma and Red Light Holland teams closely in the past, I am really excited by the potential this combination brings. As a merged company, The HighBrid Lab has access to four of the highest growth industry segments around, and the team, board and advisory group to make real progress within these verticals. I’m really looking forward to rolling up my sleeves and helping The HighBrid Lab get to work!”

This sentiment was echoed by Red Light Holland’s CEO and Director, Todd Shapiro.

He said: “Red Light Holland has significant capital and expertise, and is motivated for growth. The company understands the sensitive complexities of the ingredients we deal with, while ensuring we continue to make a bold yet careful push to provide and increase access for immediate revenue generation and brand expansion. Our core principle is to compliantly lead with edgy consumer packaged goods focused on positive outcomes, while balancing a responsible, regulated and educational use approach through technology and innovation.”

“Merging with Creso Pharma, who also has significant cash on hand, and formulating The HighBrid Lab, with Bruce Linton as Chair of the Board, means we can expand our premium product offerings globally in the high growth CBD, THC and psychedelic sectors. Together we are bullish on developing world class products with naturally occurring ingredients in clever and innovative ways for both humans and pets, which completely aligns with Creso Pharma’s R&D and sales approach,” he added.

Mr Shapiro will lead the merged company as CEO and a director.

What now?

Shareholders will be given the chance to vote on the proposal in the near future. The release explains that the transaction will require the approval of 75% of the votes cast by Creso Pharma shareholders, as well as court approval.

Though, judging by the Creso Pharma share price performance today, that may be far from guaranteed. It appears as though some investors are unsure by the company’s plans.

The post Creso Pharma (ASX:CPH) share price sinks on Red Light Holland merger plans appeared first on The Motley Fool Australia.

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James Mickleboro does not own Creso Pharma shares. 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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Ramelius Resources Ltd (ASX: RMS) shares are on the slide this morning despite the company commencing gold mining at its Tampia mine.

At the time of writing, the Ramelius share price is trading 5.85% lower at $1.69.

First ore mined at Tampia

Ramelius shares are sinking in morning trade despite the company advising it has commenced ore mining at its Tampia gold mine following open-pit mining in late April 2021.

Mining will initially take place from the project’s North Pit and shortly move to the higher grade Mace and South Pit areas.

Ramelius says that the project has commenced on schedule and it is on track to despatch the first road train of high-grade ore to its Edna May processing facility in early June 2021.

To add some perspective for what Tampia brings to the table, management previously advised that the project “represents approximately 60,000 ounces in our FY2022 production profile”.

This compares to the company’s FY21 production guidance of 260,000 to 280,000 oz at an all-in sustaining cost of A$1,230 to A$1,330.

What did management say?

Ramelius managing director Mark Zeptner said:

Gold from Tampia will represent a significant proportion of our FY2022 production target and will be our first new mine in the Western Australian wheat belt where we believe we will deliver significant returns for all stakeholders.

What’s driving the Ramelius share price lower?

Despite the seemingly positive news, the Ramelius share price is currently down by almost 6%. The company’s shares could be reacting to the slump in gold prices overnight.

Last night, gold prices dropped sharply by about 2.5% from US$1,858 per ounce to lows of US$1,803 per ounce.

The Ramelius share price isn’t the only ASX gold mining stock under pressure today, with peers including Newcrest Mining Ltd (ASX: NCM), Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) sliding between 2.04% and 5.29%.

The post Ramelius (ASX:RMS) share price slides 6% despite project milestone appeared first on The Motley Fool Australia.

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Kerry Sun 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 best performer on the All Ordinaries on Thursday has been the Opthea Ltd (ASX: OPT) share price.

In morning trade, the biotechnology company’s shares are up 12% to $1.58.

Why is the Opthea share price rocketing higher?

Investors have been fighting to get hold of the company’s shares in response to an update from rival Clearside Biomedical.

This week, Clearside Biomedical provided an update on the Phase 1/2a trial of its wet age-related macular degeneration (wet AMD) candidate, CLS-AX.

According to the release, the open-label, single dose-escalation study is designed to assess the safety and tolerability of three increasing doses of CLS-AX administered by suprachoroidal injection via Clearside’s SCS Microinjector.

Pleasingly, Clearside Biomedical reported positive safety results from six patients with wet AMD. The release explains the primary endpoints were achieved, with the initial lowest planned dose well tolerated with no serious adverse events and no drug related treatment emergent adverse events observed throughout the study period.

Why is this impacting Opthea?

This news appears to have brought Opthea onto the radar of investors. This is because both companies are developing experimental drugs that target wet AMD. However, Opthea is ahead of Clearside Biomedical in terms of development with its lead candidate, OPT-302. It started treating its first patient in its phase 3 trial in March, following successful phase 2 trials.

OPT-302 is a novel biologic inhibitor of VEGF-C and VEGF-D and a complementary medicine to be used in conjunction with VEGF-A inhibitors for the treatment of wet AMD and also diabetic macular edema (DME). These are markets worth an estimated ~US$13 billion at present.

Is it too late to invest?

One broker that still sees a lot of value in the Opthea share price is Goldman Sachs.

Goldman currently has the company on its conviction buy list with a price target of $4.70. Based on the current Opthea share price, this implies potential upside of ~200%.

Commenting on OPT-302, it said: “As successful as current treatments have been, they only inhibit up to two of the factors responsible for the retinal disease (VEGF-A/B). Over half of patients do not achieve significant vision gains, and a quarter experience continued vision loss.”

“OPT-302 is intended for use in combination with these treatments, blocking a further two factors (VEGF-C/D), hence targeting improved outcomes via a more complete blockade. We currently forecast non-risk-adjusted peak sales of US$5.3bn (US$2.3bn risk-adjusted), of which US$3.6bn relates to wAMD (US$2.0bn),” it added.

The post Why the Opthea (ASX:OPT) share price is rocketing 12% higher appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 BetMakers Technology Group Ltd (ASX: BET) share price has shed more than 30% of its value since its all-time record high of $1.60, reached on 28 May.

BetMakers shares slipped another 2.26% to $1.08 on Wednesday, but that’s where they will stay, at least for now.

The company requested a trading halt today, pending an announcement regarding the completion of a material acquisition.

BetMakers shares will remain frozen until Monday 21 June or upon the announcement being released to the ASX.

What acquisition is BetMakers referring to?

Investors will likely associate this “material acquisition” announcement with BetMakers’ recent non-binding, indicative proposal to acquire the Tabcorp Holdings Limited (ASX: TAH) wagering and media business.

But unfortunately, we will need to wait a little longer to learn exactly what has been acquired.

The elephant in the room

It’s likely been a frustrating experience for shareholders who have witnessed the BetMakers share price shed 30% in value on the back of its proposal to acquire Tabcorp’s wagering and media business.

Before the sharp selloff that took place on 28 May, BetMakers shares had surged about 138% year to date from 67 cents to their all-time record high of $1.60.

The recent selloff has more than halved their year-to-date performance to about 60%.

Tabcorp announced it had received the indicative proposal on 28 May, with the announcement saying:

The proposal is subject to numerous conditions including due diligence, arranging financing, receipt of all relevant regulatory approvals and obtaining various third party approvals and consents.

The Tabcorp Board has not yet formed a view on the merits of the proposal and will assess it in the context of the previously announced strategic review.

What’s interesting about this acquisition is that BetMakers, which has a market capitalisation of about $900 million, wants to fork out $1 billion in cash and issue $3 billion worth of new shares to acquire Tabcorp’s wagering and media business.

Unfortunately, investors will likely need to wait until Monday to find out what deal the company has struck.

The post Why the BetMakers (ASX:BET) share price isn’t going anywhere today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. 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 BHP Group Ltd (ASX: BHP) share price is slipping in early trade today after the mining and metals giant held an investor and analyst briefing.

The company’s shares have enjoyed a 34% rally over the past 12 months as demand for resources has boomed. That means before dividends, BHP has outperformed the S&P/ASX 200 Index (ASX: XJO) by 11% — which any investor would be chuffed with.

At the time of writing, the BHP share price is trading at $47.97, down 0.8%.

Today’s announcement has given the market some insights into BHP’s plans for the future.

Potash gives food for thought

BHP’s presentation goes into depth on the supply and demand dynamics of potash. For those unfamiliar with it, potash is a mixture of various mined and manufactured salts that contain potassium in water-soluble form. Potash is widely used as the potassium additive in fertilisers, making up approximately 92% of its applications.  

According to the presentation, there are several factors that BHP sees as strong demand catalysts for potash. A combination of population growth, a shift to plant-based diets, and a need for increased crop yields are all attractive for demand.

See, potassium is essential for healthy crop growth and increased yield. Additionally, BHP believes there are major yield gaps between regions that could narrow with better farm practice, including fertiliser application.

With that in mind, the mining giant sees a 4^th wave of major demand underway. Once demand catches up with supply, the company expects an inducement pricing regime. That means, at minimum, the pricing would cover the costs of production. Currently, the consensus view is that demand will catch up in the late 2020s to early 2030s.

BHP’s Jansen potash project is located roughly 140km east of Saskatoon, Canada. According to the company, the project has an anticipated initial capacity of 4Mtpa, boding well for the BHP share price.

Big picture thinking

BHP also covered some megatrends that could present opportunities for potash. Firstly, climate change is presenting greater pressure on land use. As a result, increased potash usage to increase yields and aid in drought tolerance might ensue. Secondly, the adoption of precision agriculture presents an opportunity for automated potassium regulation.

It also helps that the potash market is estimated to grow to between 89Mt to 97Mt by 2035 from 70Mt today. Evidently, the miner is hoping to capture a big chunk of that growth for itself.

Fuelling the BHP share price

Despite the BHP share price putting on a stellar performance over the past 12 months, one broker thinks there’s more to come. Analysts at Goldman Sachs have a 12-month price target of $53.90 per share. In addition, Goldman is forecasting a dividend bonanza — potentially yielding in excess of 6.5% for FY21 and FY22.

Today’s investor briefing shows the mining giant is looking for the fuel to keep that growth engine pumping into the future.

The post The BHP (ASX:BHP) share price slips on future potash potential 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 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 Telix Pharmaceuticals Ltd (ASX: TLX) share price is edging lower on Thursday morning despite the release of a positive announcement.

At the time of writing, the biopharmaceuticals company’s shares are down slightly to $5.61.

What did Telix announce?

Investors have been bidding the Telix share price higher today after it provided an update on its U.S. Food and Drug Administration new drug application (NDA) review for its Illuccix product.

Illuccix is Telix’s lead investigational product for prostate cancer imaging, which is a market management estimates to be worth US$900 million.

According to the release, the company has participated in a late-cycle review meeting with the FDA regarding the ongoing review of the NDA for the prostate cancer imaging investigational product.

Positively, during the meeting, the FDA indicated that there are no outstanding substantive review issues with Telix’s submission.

Management commentary

Telix’s Chief Executive Officer, Dr. Christian Behrenbruch, was pleased with the news.

He commented: “The late-cycle review meeting with the FDA continued a series of productive meetings with the Agency and sets the stage for the concluding phase of the NDA review process, including alignment on the final Illuccix product label.”

Dr. Behrenbruch revealed that the company is now preparing itself for a potential launch if it gains approval.

“We remain optimistic about a positive outcome and, accordingly, are working closely with our commercial partners to prepare for the U.S. launch of Telix’s lead product for prostate cancer imaging, pending approval. Delivering patient access to this important technology to support the management of prostate cancer remains a major corporate objective for Telix,” he added.

The Telix share price has been a very strong performer over the last 12 months. Despite today’s weakness, the Telix share price is now up a massive 325% since this time last year.

The post Telix (ASX:TLX) share price lower despite key FDA update appeared first on The Motley Fool Australia.

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James Mickleboro owns Telix shares. 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 4DMedical Ltd (ASX: 4DX) share price is on the move this Thursday morning.

This follows the company’s latest announcement regarding a purchase order for preclinical scanner.

At the time of writing, 4DMedical shares are trading at $1.34, up 5.51%.

What did 4DMedical announce?

In today’s statement, 4DMedical advised it has sold one Permetium preclinical scanners to the University of Michigan in the United States.

The $600,000 purchase will see the University of Michigan deploy the medical device to its Centre of Molecular Imaging. From there, it will be used to perform safe and quick quantitative imaging of lung function and vascular changes.

The Permetium preclinical scanner adopts the company’s patented XV Technology in analysing lung airway disease. Utilising the hospital’s existing systems, a series of x-ray images are taken from different angles simultaneously.

The XV Technology then uses image-processing methods to measure the motion in lung tissue, calculating ventilation at each stage of breath. The measurements are then recorded and visualised as a coloured heat-map to identify ventilation deficits.

The United States National Institutes of Health (NIH), a government agency responsible for biomedical and public health research, will fund the purchase. While this includes the preclinical scanner and its software, additional scans required will generate Software-as-a-Service (SaaS) revenue for 4DMedical.

It is expected that the preclinical scanner will be shipped to the University of Michigan in the next few months.

Commenting on the sale, 4DMedical founder and CEO Andreas Fouras said:

We are very pleased to support the University of Michigan’s activities with our XV Technology and preclinical scanner. This provides the organisation with the only commercially available device for ultra-high- resolution imaging and quantification of cardiothoracic disease models. The sale of preclinical scanners and XV Technology software to opinion-leading sites will provide further evidence of the effectiveness of our technology and help drive clinical demand for 4DMedical’s software products.

About the 4DMedical share price

Despite today’s gain, 4DMedical shares have disappointed investors, trailing at a loss close to 50% in the last 12 months.

The company’s share price is travelling within the lower end of its 52-week range of $1.12 to $2.98.

4DMedical has a market capitalisation of roughly $263 million, with more than 207 million shares outstanding.

The post 4DMedical (ASX:4DX) share price flies 5% higher on purchase order 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. 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 SEEK Limited (ASX: SEK) share price has been a strong performer this year.

In fact, the job listings company’s shares have just hit a record high of $33.29.

When the SEEK share price hit that level, it meant it was up a solid 14% since the start of the year.

Why is the SEEK share price at a record high?

Investors have been bidding the SEEK share price this year on the belief that it will be a big winner from Australia’s economic recovery.

This is thanks to its domination of the local jobs market. For example, at the end of the first half, the SEEK ANZ business had 16 million candidate profiles, 35 million monthly visits, and 160,000 active hirers.

This led to SEEK having almost a third of all placements in the region, which was five times greater than its nearest rival. So with job ads recently hitting record highs, things are looking bright for SEEK.

What else is supporting its shares?

The most recent rise in the SEEK share price appears to have been driven by a broker note out of Macquarie Group Ltd (ASX: MQG).

On Wednesday, analysts at Macquarie upgraded the company’s shares to an outperform rating with a significantly improved price target of $40.00. Based on the latest SEEK share price, this implies potential upside of 21% over the next 12 months.

Macquarie made the move due to its belief that SEEK will get a big boost on ad yields from the removal of discounts. In addition to this, the broker is forecasting Australia’s unemployment rate to fall to 4% in 2023. It expects this to underpin strong growth in ad volumes.

All in all, despite its strong rise in 2021, this broker doesn’t believe the gains are over just yet. This could make it worth considering if you’re looking for blue chip options.

The post SEEK (ASX:SEK) share price hits record high and could keep climbing appeared first on The Motley Fool Australia.

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James Mickleboro owns SEEK shares. 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 SEEK 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 Bigtincan Holdings Ltd (ASX: BTH) share price is pushing higher on Thursday morning.

At the time of writing, the sales enablement software provider’s shares are up 7% to $1.09.

Why is the Bigtincan share price pushing higher?

Investors have been buying Bigtincan’s shares this morning after it announced a small acquisition and released an update on its guidance.

In respect to the former, the company has signed a definitive agreement to acquire 100% of Vidinoti SA for ~$770,000. The consideration will be 50% cash and 50% equity.

Vidinoti is a leader in augmented and virtual reality systems based in Fribourg, Switzerland. It has developed a comprehensive suite of tools to create, deploy, and manage augmented reality content, including V-Director, V-Player and the Vidinoti SDK.

It holds patents in core areas of technology that will further advance Bigtincan’s leadership in this important technology sphere. This is expected to support the company’s mission of creating the “Buying Experience of the Future” for the world’s leading Enterprise Customers.

Bigtincan’s CEO and Co-Founder, David Keane, said: “We have been collaborating with the Vidinoti team for some time and I am delighted that we could now bring our companies together to accelerate development in this exciting space for enterprise use cases.”

Guidance update

Also giving the Bigtincan share price a boost today was management revealing that it is on course to surpass its guidance in FY 2021.

As things stand, the company has achieved $53 million in Annualised Recurring Revenue (ARR) with two weeks of the financial year remaining. This represents year on year growth of 48% and compares to its previous guidance of ARR at the top end of $49 million to $53 million.

Mr Keane commented: “Achieving $53m in ARR before the end of the FY21 period is another milestone in the development of Bigtincan This result demonstrates the ongoing progress of the Bigtincan business and arises from a combination of new orders in the USA, Europe and Asia/Pacific, together with expansion from existing customers, and shows that as the world continues to move forward and economies strengthen, Bigtincan technology is critical to the success of customer facing workers in an increasingly digital and remote economy.”

The Bigtincan share price is up 27% over the last 12 months.

The post Bigtincan (ASX:BTH) share price jumps 7% on acquisition and guidance update appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. 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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Shares in the Alcidion Group Ltd (ASX: ALC) share price have rocketed 20% in the last 30 days, and are up 163% in the last 12 months. At yesterday’s market close, the Alcidion share price was trading at 44 cents.

Let’s look at some of the news around the tech company’s recent share market performance.

A quick company snapshot

Alcidion helps healthcare organisations “harness the power of technology” to create digitally enabled care. In other words, its platforms support medical professionals to make decisions.  Artificial intelligence and real-time visualisation are some of the capabilities of Alcidion’s technology.

It’s flagship product, Miya Precision provides clinicians with actionable insights that directly impact patient care. The company’s tech is used in 322 hospitals across the United Kingdom, Australia, New Zealand with 130,000 active users. 

Strong organic growth

In its March quarterly update the company reported strong organic growth adding $4.8 million of contracted revenue in the third quarter, of which $3 million will be recognised in FY21. 

In other highlights, there was a positive net operating cash flow of $2.8M for Q3 FY21 and contracted revenue of $24.7M expected to be recognised in FY21.

ExtraMed acquisition

The significance of the news in April that Alcidion acquired ExtraMed, a UK national health service (NHS) software provider, was not lost on investors.

The acquisition positioned Alcidion at the forefront of the UK deployment of patient flow management software, according to the company. 

Alcidion expects the acquired ExtraMed business to add approximately $2.7 million in FY22 revenue and $0.5 million earnings before interest, tax, depreciation and amortisation (EBITDA) from its existing contracts. 

As a result, the acquisition will boost Alcidion’s exposure to 27 NHS trusts.

Defence Department contract

Closer to home, the Australian Department of Defence has selected Alcidion to utilise its Miya Precision digital product to improve occupational care in the defence force.

As the preferred provider for a $21 million Department of Defence contract, Alcidion will help capture data and support clinical decision-making across the Australian Defence force.

Foolish takeaway

There has been a push in the medical industry to use technology to enable more accurate and efficient decision-making in a paperless environment. Judging by the Alcidion share price gains of the past 12 months, the company appears to be positioning itself as a global frontrunner in the field.

The post Why has the Alcidion (ASX:ALC) share price rocketed 20% in the last month? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. 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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