The Electro Optic Systems Holdings Ltd (ASX: EOS) share price was a big winner on Thursday. The company’s shares gained 6.62% yesterday to close at $4.19 following news of its partnership agreement with Diehl Defence.

But the Electro Optic share price has given back those gains on Friday, falling 7.88% to $3.86 at the time of writing. This comes following release of the company’s AGM presentation and financial guidance for 2021.

Electro Optic shares slide despite positive growth outlook

The Electro Optic share price is dipping lower today despite the company forecasting 2021 revenue of $235 million to $245 million, representing a 30% to 36% increase on 2020 figures. EOS described the forecast as a “key growth target as it funds mandatory corporate compliance processes for the next stage of managed growth”.

The company expects this revenue to translate into underlying earnings before interest and tax (EBIT) of between $20 million and $25 million, before its SpaceLink acquisition costs (which total $17 million). This compares to its $28.5 million EBIT loss in 2020 and $21.8 million EBIT in 2019.

The company flags the potential risks that COVID-19 could continue to have on its financial and operational performance, and today’s guidance is provided on the basis that market conditions do not change.

On a more positive note, Electro Optic Systems highlighted the likelihood for potential material contract awards in 2H21 that could drive earnings upside.

COVID-19 challenges

The weakness experienced by the Electro Optic share price amidst the height of the pandemic was largely driven by delivery and supply chain related challenges. The company noted that it derives 95% of its revenue from exports which are air freighted.

Exports ceased in March 2020 for several reasons, including a severe reduction in air freight capacity, COVID-19 lockdowns and closure of key defence sites designed as customer delivery points. Other factors contributing to the challenging trading conditions included the national lockout of the company’s engineers, who are essential to the final pre-delivery process, and access to customer testing facilities required for product acceptance.

The bottleneck across both production and the timing of cash flows had a significant impact on the Electro Optic share price last year. Today’s announcement advised that all these issues have now been overcome, with the company recently receiving $30 million in export payments. It also has over $100 million worth of finished product positioned near specific customer delivery sites.

Key factors to drive growth

As part of the company’s growth outlook commentary, it highlighted a number of factors that could drive value moving forward.

Electro Optic has ambitious plans for its SpaceLink business. The company plans to build and operate a medium earth orbit (MEO) satellite constellation, optimsed for defence and government customers. The project is expected to be operational by 2024, producing a positive operating cash flow. Today’s announcement advised that SpaceLink funding for the initial constellation of satellites will begin in 3Q21, and will create an “initial value event for EOS shareholders”.

The company expects to see a surge in growth opportunities, describing the situation as a “demand tsunami on [the] horizon”. According to EOS, it is globally well-positioned in the fastest-growing defence market segments including counter-unmanned aerial vehicles, directed energy and remotely-operated combat systems.

The company could also be hoping Australia will be a significant growth driver, with its planned $1 trillion spending on defence over 20 years to 2040. Electro Optic advises it is one of only two to three Australian defence prime contractors providing direct access to this market. Other key growth drivers identified by EOS include the growing demand for space products and services, and the world’s largest defence market, the United States.

More reading

• Why the Electro Optic Systems (ASX:EOS) share price is pushing higher
• Why AMP, Champion Iron, EOS, & Vulcan shares are storming higher
• These are the 10 most shorted shares on the ASX
• Why Afterpay, CSR, Electro Optic Systems, & Estia Health are storming higher
• Why the Electro Optic Systems (ASX:EOS) share price is jumping 15% today

The post Electro Optic (ASX:EOS) share price sinks 8% following AGM appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bXgwMU

Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Catapult Group International Ltd (ASX: CAT)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this sports analytics and wearables company’s shares to $2.46. The broker made the move following the release of Catapult’s full year results for FY 2021 earlier this week. Morgans was pleased with its second half annualised contract value (ACV) growth and its low churn. The Catapult share price is trading at $2.19 this afternoon.

Costa Group Holdings Ltd (ASX: CGC)

A note out of Credit Suisse reveals that its analysts have upgraded this horticulture company’s shares to an outperform rating but cut the price target on them to $4.15. According to the note, Credit Suisse believes that Costa’s disappointing first half guidance has been driven by seasonal factors rather than structural issues. In light of this and the sharp pullback in its share price yesterday, the broker sees value in its shares at the current level. The Costa share price is fetching $3.40 on Friday.

Ramsay Health Care Limited (ASX: RHC)

Analysts at Macquarie have retained their outperform rating and $74.85 price target on this private hospital operator’s shares. According to the note, the broker sees positives from the company’s plan to acquire UK-based Spire Healthcare for 1 billion pounds ($1.8 billion). Macquarie believes the deal will provide strategic and financial benefits, as well as support its long term growth in the UK market. The Ramsay share price is trading at $63.22 on Friday afternoon.

More reading

• Is the Costa (ASX:CGC) share price a bargain buy after its selloff?
• ASX 200 rises, Costa smashed, Fisher & Paykel drops
• ASX tech shares roar higher, puts ASX 200 index in the shade
• Why the Ramsay Health Care (ASX:RHC) share price tumbled lower today
• The Costa Group (ASX:CGC) share price is down 22%. Could it be a buy?

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wD36Ob

ASX-listed buy now, pay later (BNPL) provider Laybuy Holdings Ltd (ASX: LBY) has tripled its UK active customer count and grown its merchants base by 433%.

The New Zealand fintech revealed this week in its full-year results that in the 12 months to 31 March, active customers in the UK went from 154,000 to 463,000.

Managing director Gary Rohloff said the business had the pedal to the floor in Britain.

“The UK has an addressable retail market of £394 billion, more than twice the size of the Australian market. It is also a market where BNPL is still in its infancy but is expected to grow quickly,” he said.

“Over the past year, we have accelerated our marketing activities, entered new strategic partnerships, invested in new technology and grown our staff numbers in the UK to take advantage of the opportunity provided.”

The number of participating merchants in the UK went from 335 to 1,785 in the past year. The gross merchandise value, which is the amount of sales that went through the platform, rocketed up 504%.

Rohloff said Laybuy was now “widely recognised” as one of the top 3 BNPL brands in Britain.

The Laybuy share price was up 2.73% on Friday morning, to trade at 56 cents. The company listed on the ASX back in September after an initial public offer price of $1.41.

Laybuy vs Afterpay

Laybuy’s UK growth actually outstrips that of Australian sector leader Afterpay Ltd (ASX: APT).

Afterpay, for historical reasons, is known as Clearpay in Britain.

In the latest business update last month, Afterpay had grown its UK customer base 134%, from 800,000 to 1.8 million for the year ending 31 March.

So while Afterpay’s market share clearly still dwarfs Laybuy’s, the yearly growth falls short of the smaller rival.

Laybuy is hoping its virtual credit card and brand partnerships will further boost its European expansion in the coming 12 months.

“Laybuy is also finalising strategic partnerships with Rakuten Group Inc, Awin and Sovrn, which will see Laybuy customers having access to more than 5,000 merchants in the UK — including some of the country’s largest and most iconic brands such as ASOS, Nike, Marks and Spencer Group, easyJet, Amazon.com, Boots and eBay from Q2 in FY22,” said Rohloff.

“These partnerships will allow our customers to use Laybuy’s Tap to Pay digital card to shop and BNPL directly through the Laybuy app with these merchants, without the need for further merchant integration or direct relationship being required.”

More reading

• 5 things to watch on the ASX 200 on Friday
• Why did ASX tech shares like Afterpay (ASX:APT) have such a good day?
• ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses
• Where next for Afterpay (ASX:APT) and Zip (ASX:Z1P) shares?
• Where to for the A2 Milk and Afterpay share price, and US economic growth? Motley Fool CIO Scott Phillips on Nine’s Late News

The post This BNPL just saw stronger UK growth than Afterpay (ASX:APT) appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34n1OuH

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.

Amazon (NASDAQ: AMZN) is about to make the biggest change to its lineup in more than a quarter-century. Founder Jeff Bezos will formally relinquish his role as CEO, handing the reins to Andy Jassy, the head of Amazon Web Services (AWS), the company’s cloud computing unit.

At Amazon’s annual shareholder meeting, which was held virtually on Wednesday, Bezos announced that the formal changing of the guard will take place on July 5, marking the 27-year anniversary of the date Amazon was incorporated back in 1994. 

Bezos also had high praise for Jassy, noting that he would be leaving Amazon in good hands. “He has the highest of high standards, and I guarantee Andy will never let the universe make us typical,” Bezos said during the digital meeting. “He has the energy needed to keep alive in us what has made us special.”

He also acknowledged that the company is still committed to making big bets that could ultimately fail, like the Amazon Care telehealth service and the Project Kuiper satellite internet network. “The only way to get above-average returns is to take risks, and many won’t pay off,” Bezos said.

He is well known for his views on failing. In Amazon’s 2018 letter to shareholders, he argued that good leaders should make it OK for their company to fail. “If the size of your failures isn’t growing, you’re not going to be inventing at a size that can actually move the needle,” Bezos wrote. He went on to say that for a company of Amazon’s size, it would “occasionally have multi-billion dollar failures,” noting that not even all good bets pay off.

In conjunction with Amazon’s fourth-quarter earnings report in February, the company announced that Bezos could transition to the role of executive chair sometime during the 2021 third quarter, with Jassy assuming the role of CEO. At the time, Amazon didn’t provide a specific date for the changeover.

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

More reading

• The rumors were true: Amazon buys MGM in $8.5 billion deal
• Amazon sued by D.C. Attorney General for anticompetitive practices
• Better buy: MercadoLibre vs. Amazon
• This tech ETF has returned 30% for ASX investors in the past year
• Are the FAANG stocks still good buys today?

The post Amazon CEO Jeff Bezos to formally step down, turn reins over to Andy Jassy appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3bZpHNb

The Aussie Broadband Ltd (ASX: ABB) share price is rising today following news the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) could be 38% to 62% higher than previously predicted.

At the time of writing, shares in Aussie Broadband are trading 0.75% higher than yesterday’s close at $2.67. During morning trade, the Aussie Broadband share priced jumped by more than 11% before retreating to its current level.

The telecommunications company also announced it has lowered its guidance on the number of residential connections it expects to see added to its network in 2021.

Finally, Aussie Broadband has named the first customer for its new white label solution and updated the market on its optic fibre rollout.

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

Aussie Broadband’s update

Increased EBITDA

Aussie Broadband stated this morning it now expects EBITDA of between $17 million and $20 million, excluding approximately $1 million of expenses from the company’s initial public offering (IPO).

Previously, Aussie Broadband estimated its EBITDA for the 2021 financial year, excluding IPO costs, would be $12.3 million.

The company said the updated guidance comes as it experiences strong growth in the average revenue per user in its retail segment. It’s also seen growth in its business segment.

According to Aussie Broadband, revenue is also expected to benefit from rebates related to the National Broadband Network (NBN).

Drop in estimated new customers

In further news that could be impacting the Aussie Broadband share price, the company stated it has lowered its residential connection guidance.

Previously, Aussie Broadband said it hoped to connect between 380,000 and 410,000 households to its services in the 2021 financial year. That figure has now been lowered to between 360,000 and 365,000.

The estimated drop comes as the onboarding of the first customers of Aussie Broadband’s white label solution is delayed until the 2022 financial year.

The company has also been affected by an increase in high-speed market competition caused by NBN’s Focus on Fast campaign. It has also been hit by recent connection issues caused by the NBN.

Aussie Broadband’s business customer connections look likely to achieve the lower-end figure of 37,000 provided in previous guidance – although its estimated top-end figure has decreased from 42,000 to 38,000.

In more positive news for Aussie Broadband (though, not for Victoria), the company expects its network utilisation to increase over the next 7 days due to the COVID-19 lockdown.   

White label solution

After tantalising the market in April by electing not to name its foundation white label solution customer, Aussie Broadband today announced it is Origin Energy Ltd (ASX: ORG).

As part of the white label solution, Origin Energy will sell Aussie Broadband’s NBN, Opticomm, and VoIP services under its own brand. Aussie Broadband will be providing customer support and service delivery for Origin’s telecommunication customers.

Aussie Broadband is in contact with other brands interested in being involved with its white label solution.

Optic fibre rollout

Finally, Aussie Broadband today advised its optic fibre network rollout is going to plan.

The company currently has more than 250 prospective optic fibre sales in its pipeline.

Once complete, the company’s fibre network will include 76 points of interconnections and more than 20 data centres. A point of interconnection is needed to connect a customer’s home to the NBN. Currently, it has almost completed a complex section of its Sydney build.

Aussie Broadband has begun construction of the network in Western Australia and Queensland and is continuing the rollout in New South Wales and Victoria. Work in South Australia is due to start in the coming weeks.

The company expects to have between 28 and 31 points of interconnection and data centres completed by 30 June.

Aussie Broadband share price snapshot

Aussie Broadband shares need today’s good news as they tackle a tough month on the ASX.

Since the start of May, the Aussie Broadband share price has fallen by around 12%.

Despite the poor month’s performance, the company’s shares are still up by around 34% year to date. They’ve also gained around 40% since their debut on the ASX in October 2020.

The company has a market capitalisation of around $500 million, with approximately 190 million shares outstanding.

More reading

• 10 key investment criteria every ASX investor should know: fundie
• AGL (ASX:AGL) may need a ~$600m capital raise to complete demerger
• This little ASX telco’s picking customers off the big boys: fundie
• APA (ASX:APA) share price falls despite expansion and new agreement
• Origin Energy (ASX:ORG) share price edges higher on third quarter results

The post Why the Aussie Broadband (ASX:ABB) share price is lifting today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wCK7mJ

The S&P/ASX 200 Index (ASX: XJO) is trying to find its footing in what has otherwise been a volatile May. While the index might be trying to decide whether or not it wants to say above or below 7,000, these ASX200 shares have cruised to 52-week highs.

ALS Ltd (ASX: ALQ)

ALS could be described as a classic slow-moving ASX share. The global testing, inspection and certification company has a mixed history of financial results, with its fair share of both earnings misses and surprises. It managed to do the latter this week.

The ALS share price surged a rare 12.8% to $12.30 on Wednesday after the release of its full-year results. This not only marked a 52-week high, but a significant 9-year high. While many shares have had the tendency to give back their gains after a move up, the ALS share price has managed to stay near Wednesday’s highs, trading at $12.23 at the time of writing.

Codan Ltd (ASX: CDA)

The Codan share price could be one of the top-performing ASX shares this year, running a solid 68% year-to-date.

Its shares took a breather between August 2020 and February 2021, chopping largely between the $10 to $12 level. It wasn’t until the company acquired a US-based communications supplier in mid-February, that its shares jumped to a new all-time record high of $13.54. Its shares have been trending strongly ever since, marking higher highs and higher lows to another record high on Friday of $19.35.

Collins Foods Ltd (ASX: CKF)

A business that operates KFC and Taco Bell franchises isn’t exactly an ASX share you’d expect to see surging 15% in the last 7 trading sessions. The company hasn’t released any market sensitive announcements since December last year, where it delivered a solid set of half-year results.

Positive March retail turnover data from the Australian Bureau of Statistics (ABS) could be a factor to consider in the recent jump in the Collins Foods share price. The ABS advised that Australian retail turnover increased 1.1% from March 2021 to April 2021, seasonally adjusted.

The ABS especially noted that food retailing was a strong performer, increasing 1.5% following declines across both February and March 2021.

More reading

• Why ALS, Costa, Fisher & Paykel Healthcare, & Ramsay shares are falling
• Why ALS, AMA, Chalice Mining, & Jumbo shares are pushing higher
• ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses
• The ALS (ASX:ALQ) share price is rocketing on its latest results
• 5 things to watch on the ASX 200 on Wednesday

The post 3 ASX shares hitting 52-week highs this week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oVJ66R

In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing, the benchmark index is up 1.15% to 7,176.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Inghams Group Ltd (ASX: ING)

The Inghams share price has jumped 9.5% to $3.44. Investors have been fighting to get hold of the poultry producer’s shares after it provided FY 2021 guidance well-ahead of the market’s expectations. For the 12 months ending 25 June, Inghams is forecasting statutory EBITDA of $438 million to $448 million and statutory net profit after tax of $80 million to $87 million. This has been driven by the benefits derived from operational efficiencies implemented throughout the year and improved trading conditions.

Latitude Group Holdings Ltd (ASX: LFS)

The Latitude share price is up 3.5% to $2.53. This follows the release of a market update. The instalments and lending company revealed that its loan volumes for the six months ending 30 June 2021 are expected to come in at $3.7 billion. This will be an increase of 7% on the prior corresponding period. Management expects this to lead to a first half net profit after tax of between $115 million and $120 million.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is up 3% to $123.74. This follows a similarly strong gain by its London-listed shares during overnight trade. Strong economic data appears to have given the resources sector a major lift today. At the time of writing, the S&P/ASX 200 Resources index is up 2.4%.

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price is up 2.5% to $5.19. The catalyst for this was news that BetMakers Technology Group Ltd (ASX: BET) has made a $4 billion offer to acquire Tabcorp’s Wagering and Media operations. The offer comprises $1 billion in cash and $3 billion in BetMakers shares. BetMakers believes the proposal would bring together two highly complementary businesses to create a competitive global wagering and technology platform with scalable operations across both B2B and B2C markets.

More reading

• ASX 200 up 1.1%: Tabcorp receives $4bn offer, KKR wants Link’s PEXA business
• Why the Latitude (ASX:LFS) share price is rising today
• BetMakers (ASX:BET) share price sinks on Tabcorp takeover proposal
• Why the Inghams (ASX:ING) share price is racing 10% higher
• 4 ASX 200 resource shares poised to deliver: AMP Capital

The post Why Inghams, Latitude, Rio Tinto, & Tabcorp shares are charging higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vpLRzE

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week a strong note. The benchmark index is currently up 1.1% to 7,174.2 points.

Here’s what is happening on the market today:

BetMakers makes Tabcorp a $4 billion offer

The Tabcorp Holdings Limited (ASX: TAH) share price is pushing higher today after BetMakers Technology Group Ltd (ASX: BET) made a $4 billion offer to acquire its Wagering and Media businesses. The offer comprises $1 billion in cash and $3 billion in BetMakers shares. BetMakers believes the proposal would bring together two highly complementary businesses to create a competitive global wagering and technology platform with scalable operations across both B2B and B2C markets.

Latitude update

The Latitude Group Holdings Ltd (ASX: LFS) share price is storming higher after the release of a market update. The instalments and lending company revealed that its loan volumes for the six months ending 30 June 2021 are expected to come in at $3.7 billion. This will be an increase of 7% on the prior corresponding period. This is expected to lead to a first half net profit after tax of between $115 million and $120 million.

Link receives offer for PEXA

The Link Administration Holdings Ltd (ASX: LNK) share price is on course to end the week on a positive note. Investors have been buying the administration services company’s shares after it revealed that private equity firm KKR has tabled an offer that values PEXA at $3 billion on a 100% basis. Link owns 44.18% of the property settlement business. The Link Board is considering the proposal.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the South32 Ltd (ASX: S32) share price with a 6% gain. A number of resources shares are recording strong gains today. The worst performer has been the CSR Limited (ASX: CSR) share price with a 5% decline. The majority of this decline is due to the building materials company’s shares trading ex-dividend this morning.

More reading

• Why the Latitude (ASX:LFS) share price is rising today
• BetMakers (ASX:BET) share price sinks on Tabcorp takeover proposal
• Link (ASX:LNK) share price on watch after receiving PEXA offer
• 5 things to watch on the ASX 200 on Friday
• The Pepper Money (ASX:PPM) share price sinks below listing price

The post ASX 200 up 1.1%: Tabcorp receives $4bn offer, KKR wants Link’s PEXA business appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3hZhnRm

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.

Tesla Motors‘ (NASDAQ: TSLA) Model 3 sedan is losing some of its luster. The popular electric vehicle (EV) has been dropped by Consumer Reports as one of its Top Picks, and the Insurance Institute of Highway Safety (IIHS) plans to strip it of the organization’s Top Safety Pick+, its highest-level award.

These developments closely follow the company’s announcement earlier this week that it is replacing radar in the relatively low-cost model with the camera-based Tesla Vision system. It is doing the same with the Model Y SUV, again a comparatively budget offering in its category.

In the announcement Tesla warned that “For a short period during this transition, cars with Tesla Vision may be delivered with some features temporarily limited or inactive.” These include Autosteer and Emergency Lane Departure Avoidance.

This doesn’t sit well at all with safety proponents. In an article on the designation withdrawals, Consumer Reports quoted its Vice President of Advocacy David Friedman as saying that “If a driver thinks their vehicle has a safety feature and it doesn’t, that fundamentally changes the safety profile of the vehicle.”

“It might not be there when they think it would save their lives,” he added.

Tesla hasn’t yet responded directly to the Consumer Reports and IIHS moves, and since it likes to control the message it likely won’t. Regardless, the loss of those prestigious designations just isn’t a good look for the carmaker, which continues to have numerous issues with vehicle safety of late.

Still, the company and its stock have a great many believers no matter the prize count in its trophy case. The shares traded 1.9% higher on Thursday, eclipsing the 0.1% gain of the S&P 500 index.

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

More reading

• Stock markets stay strong; can Ford and Tesla both win?
• Tesla dumps radar in lower-cost models
• 1 in 4 Aussies surveyed want their salary paid in Bitcoin
• This tech ETF has returned 30% for ASX investors in the past year
• Here are the US shares ASX investors were buying last week

The post Tesla Model 3 losing top safety designations appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/34mNItl

The Cann Group Ltd (ASX: CAN) share price is falling during morning trade. This follows the cannabis company’s announcement of a revised revenue guidance for FY21.

At the time of writing, Cann shares are exchanging hands for 43 cents, down 2.27%.

What’s dragging the Cann share price down?

Investors are selling off Cann shares today after digesting the company’s update.

In today’s release, Cann advised that a number of delays have affected its revenue guidance for FY21.

In particular, third-party manufacturing and starting material supplier issues have pushed back its shipping schedule. This means that customers will receive Cann products at a later date than originally expected, resulting in deferred revenue receipts.

The company also noted that its international regulatory submissions to enter new markets has been extended. This relates to both local and overseas market clearances. However, Cann is working hard to have its order and fulfilment cycle more streamlined, especially to Germany.

As a result, Cann is forecasting revenue to fall between $4 million and $5 million for FY21. This compares to its earlier revised guidance projections of $8 million to $10 million on 15 February. The remaining balance of the latter revenue assumption is expected to roll into FY22.

At the end of April, the group dispatched more than 20,000 bottles of cannabis extract to its German customer and partner, iuvo Therapeutics. Those products have since been GMP-released for sale, with the company stating that initial sales look promising.

Furthermore, its United Kingdom market is tracking along nicely, with a pipeline of orders scheduled in FY22.

Words from the CEO

Cann group CEO Peter Crock touched on the company’s performance, saying:

We have continued to make really important headway this year, and while timelines have been frustratingly drawn out, in some part due to COVID, the achievements we have made in securing regulatory pathways, and the foundations we have set for supply to Australian patients and export markets stands us in good stead.

We have also strengthened our future revenue base with the recent acquisition of Satipharm and access to an important differentiated technology platform. Further, we have demonstrated an ability to deliver sizable orders to our customers, as shown by our delivery to iuvo last month.

Cann shares have been on a steady decline over the past 12 months, shrinking in value by more than 60%.

More reading

• Cann (ASX:CAN) share price continues to rise despite product recall

The post Why is the Cann (ASX:CAN) share price tumbling today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vvAt5h