Are you looking to boost your portfolio with some dividend shares?

Then you might want to take a look at the ASX dividend shares listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is Coles. This supermarket operator appears well-positioned to deliver a strong result in FY 2021 thanks to favourable consumer spending trends, its strong market position, and defensive qualities.

In fact, Goldman Sachs is expecting Coles to report a 9.2% increase in first half group sales to $20,585.9 million and a 10.5% lift in underlying net profit after tax to $540.4 million next month. This is expected to be driven by strong sales growth across its Supermarkets, Liquor, and Express businesses.

The broker expects this to lead to the Coles board increasing its interim dividend by 13.3% to a fully franked 34 cents per share. Based on the current Coles share price, this equates to a 3.75% dividend yield if annualised. Goldman Sachs has a buy rating and $21.10 price target on Coles shares.

Lendlease Group (ASX: LLC)

Another dividend share that Goldman Sachs is positive on is Lendlease. It is a global property and infrastructure company which is undergoing a major change to its strategy.

This strategy change is shifting its earnings mix and business model and looks to have positioned it perfectly for long term growth. Goldman is a big fan of the new strategy and expects its shares to rerate to higher multiples if it executes it successfully.

The broker has a buy rating and $16.65 price target on the company’s shares and is forecasting a 37.7 cents per share dividend in FY 2021. Based on the current Lendlease share price, this equates to a 3% yield. After which, a yield of 5.2% is expected in FY 2022 by the broker.

More reading

• 4 ASX shares picked for returns in 2021 by brokers and fundies
• What to expect from the Coles (ASX:COL) first half result
• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• 2 high quality ASX dividend shares to buy
• Got money to invest for income? Here are 3 ASX 200 dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) continued its winning streak and stormed higher again. The benchmark index jumped 0.8% to 6,823.7 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% lower this morning. This is despite it being a reasonably positive night of trade on Wall Street. Late on, the Dow Jones is up 0.1%, the S&P 500 is up 0.2%, and the Nasdaq index has jumped 0.6% higher.

Soul Patts convertible note

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price will be on watch today after announcing a convertible note offering. The investment house is aiming to raise $250 million from the offering. The company intends to use the funds to repay debt and strengthen its liquidity position. The notes will be listed on the Singapore stock exchange.

Oil prices mixed

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be in focus today after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is down 0.3% to US$53.15 a barrel and the Brent crude oil price has climbed 0.1% to US$56.11 a barrel. A surprise increase in US crude stockpiles weighed on the WTI crude oil price.

Gold price edges higher

It could be another positive day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) after the gold price pushed higher. According to CNBC, the spot gold price is up 0.15% to US$1,869.40 an ounce. Optimism over further US stimulus is supporting the gold price.

Netwealth given neutral rating

The Netwealth Group Ltd (ASX: NWL) share price could be fully valued now after storming higher on Thursday. According to a note out of Goldman Sachs, its analysts have held firm with their neutral rating but lifted the price target on this investment platform provider’s shares to $17.21. This follows its second quarter update, which included an upgrade to its guidance. Goldman prefers HUB24 Ltd (ASX: HUB).

More reading

• ASX 200 rises 0.8%
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• What a dramatic day in the US could mean for ASX shares in 2021
• ASX 200 up 0.65%: Zip update impresses, Netwealth rockets, Cleanaway dumped
• Why Megaport, Netwealth, PointsBet, & Zip shares are racing higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Hub24 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 S&P/ASX 200 Index (ASX: XJO) went up by 0.8% today to 6,824 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

The Zip share price went up by 23% after releasing its quarterly update to 31 December 2020.

Zip said that its quarterly revenue went up 88% to $102 million, with December revenue rising 94% to $40.2 million.

The buy now, pay later business achieved record quarterly transaction volume of $1.6 billion, which was up 103% year on year. The December transaction volume rose by 104% to $628.4 million.

Transaction numbers for the quarter went up by 149% to 10.7 million.

Customer numbers increased by 97% to 5.7 million whilst merchant numbers grew by 73% to 38,500.

Zip said that its US business, QuadPay, delivered record results in the second quarter across all the core metrics with $673.1 million of transaction volume, $47.6 million of revenue and 915,000 new customers.

The company also raised $176.7 million in equity, with the majority of funds allocated to fuel US growth.

Zip’s managing director and CEO Larry Diamond said: “We are extremely pleased to deliver another exceptional set of numbers with the quarter really delivering a significant step change for the company, confirming our position as one of the fastest growing players in the sector. A number of strategic initiatives were delivered during the quarter, in line with our mission to become the first payment choice everywhere, every day, and we are extremely well placed to continue this momentum into 2021 as the global shift away from the broken credit card model continues. Particularly exciting were the results achieved in the US with Quadpay rapidly accelerating in the largest addressable market for BNPL.”

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price was the worst performer in the ASX 200. It dropped 8.5% after it was announced that the CEO would be leaving.

The leadership transition will commence in the first of 2021 after the board and CEO Vik Bansal mutually agreed that it is the right time for Cleanaway to move forward under new leadership.

Cleanaway Chair Mark Chellew said: “We thank Vik for his contribution in achieving a significant turnaround of Cleanaway over his period as CEO. Vik has led Cleanaway’s transformation and growth with enormous dedication, and it shows in the company’s financial results. We thank him for his service and wish him all the very best for the future.”

The waste management business pointed out that under Mr Bansal’s leadership, the company made a total shareholder return of around 300%, compared to 58% for the ASX 200.

Mr Chellew will become the Executive Chair whilst the company looks for a replacement CEO. He has experience leading a business after leading Adbri Ltd (ASX: ABC) for over 12 years.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price went up 11.7% today after giving its quarterly update to 31 December 2020.

The ASX 200 share said that funds under administration (FUA) went up by 14% to $38.8 billion. Compared to the prior corresponding period, it was an increase of 36.1%.

FUA net inflows was $2.6 billion for the quarter, an increase of $0.6 billion (33.7%) over the first quarter. FUA net inflows for the 2020 calendar year was $9.2 billion, an increase of 36.1% compared to 2019.

Funds under management (FUM) went up by 15.5% to $9.3 billion at December 2020. FUM net inflows for the quarter were $0.7 billion.

The managed account balance at 31 December 2020 was $7.6 billion, an increase of 74.1% compared to the prior corresponding period. Managed account net flows for the 2020 calendar year were $3.2 billion, an increase of 63.9%.

The FY21 FUA net inflows are expected to be in the range of $8.5 billion to $9 billion, an increase on the previously advised expected annual net inflows of $8 billion.

More reading

• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• ASX 200 up 0.65%: Zip update impresses, Netwealth rockets, Cleanaway dumped
• Why the Cleanaway (ASX:CWY) share price is plummeting today
• Why Megaport, Netwealth, PointsBet, & Zip shares are racing higher
• Why the Netwealth (ASX:NWL) share price zoomed 10% higher today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Netwealth and 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 Bruce Jackson.

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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Three small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

CleanSpace Holdings Limited (ASX: CSX)

CleanSpace is a designer, manufacturer, and seller of workplace respiratory protection equipment (RPE) for healthcare and industrial end markets. It recently listed on the Australian share market, raising $20 million to support its growth plans. These plans include building on the adoption of CleanSpace products in the healthcare and industrial markets, product development, expanding awareness, and entering new international markets.

IntelliHR Ltd (ASX: IHR)

Another small cap to watch is IntelliHR. It is a next-generation cloud-based people management and data analytics platform provider. Demand for its platform has been growing strongly this year, leading to the company reporting a 148% increase in subscriber numbers to over 30,000 during the first five months of FY 2021. This underpinned an 81.3% increase in its contracted annual recurring revenue (ARR) to $2.8 million. Pleasingly, management appears confident there will be more of the same in future thanks to the quality of its software, international expansion, and favourable industry trends.

Nitro Software Ltd (ASX: NTO)

A final small cap to watch is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries. Nitro’s key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers via a software-as-a-service and desktop-based software solution. Demand for its offering has been stronger than expected in FY 2020, leading to management recently upgrading its guidance. Nitro expects its subscription ARR to come in at $26 million to $27 million in FY 2020. This compares to the $24.4 million ARR it guided to in its IPO prospectus.

More reading

• The Whispir (ASX:WSP) share price is 30% lower than its 52-week high
• These 2 ASX healthcare shares popped today
• 2 exciting small cap ASX shares to watch this month
• 2 exciting small cap ASX shares to watch
• Why Nick Scali, Nitro Software, Silver Lake, & Xero shares are dropping lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CleanSpace Holdings Limited and Nitro Software 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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Shares in 3P Learning Ltd (ASX:3PL) have soared as the online educator announced a potential merger with e-learning company, Blake.

At close of trade today, the 3P Learning share price was up 12.3% at a price of $1.37.

3P Learning is a global online educator with cloudbased, software as a service products. The tech company offers courses in numeracy, literacy and science for students ranging from kindergarten to year 12.

Blake merger proposal

The 3P Learning share price surged higher today after the company entered into a non binding term sheet to pursue the merger. Under the agreement, 3P Learning will acquire 100% of the equity in Blake in exchange for 137 million shares. The deal is subject to satisfactory due diligence by both parties and subsequently entry into definitive documents.

Assuming a $1.35 issue price, the merger will cost 3P Learning $185 million. The purchase price assumes Blake will have an appropriate level of working capital at completion and will be adjusted for excess cash and debt. As a result, on completion of the merger, owners of Blake will hold a 49.5% stake in the company.

Furthermore, on completion of the deal a number of Blake’s management team will join 3P Learning. Blake founder and executive chair Matthew Sandblom will join the board as non-executive chair while Blake CEO Jose Palmero will become interim CEO of 3P Learning.

More about Blake

Blake is a privately owned, Australian publisher of online education products similar to 3P Learning. It’s core literacy product Reading Eggs was launched in 2008 and is used by more than 3.4 million users in 169 countries.

What’s more, the two companies have a long-standing relationship dating back to 2014, before 3P Learning’s initial public offering (IPO) days.

An earlier takeover bid fails

Back in November last year, the 3P Learning share price soared 13% higher on news of a 100% takeover bid by Indian company BYJU.

This has not transpired. After completing due diligence towards the end of 2020, BYJU did not provide a firm proposal for 3P Learning’s consideration. As such, given the exclusivity agreement now signed with Blake, the company will cease further engagement with BYJU at this time.

What now

The due diligence process is expected to will take about six weeks. Should the parties then enter into a binding agreement to implement the merger proposal, the transaction will be subject to shareholder approval at a general meeting.

3P Learning will update the market as soon as it has additional information to share with investors. However the company reminded shareholders that there is no certainty the agreement will result in a binding transaction.

More reading

• 4DS Memory (ASX:4DS): Non-volatile memory, volatile share price
• 2 tech ETFs delivering rapid growth
• Here’s why the K2Fly (ASX:K2F) share price is pushing higher
• Why the Medical Developments International (ASX:MVP) share price jumped 5% higher
• Why the CogState (ASX:CGS) share price shot 8% today

Motley Fool contributor Daniel Ewing 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 4DS Memory Ltd (ASX: 4DS) share price has set a new 52 week high today. At the time of writing, shares are trading 29.41% higher at 22 cents.

Although there is no news out today, this could be a delayed reaction to the company’s quarterly activity report that was released yesterday.

Let’s take a look at a few of the details highlighted in the report, as well as recapping the recent stellar share price performance.

Important details for the 4DS Memory share price

Progress and pending

The semiconductor development company highlighted for the quarter ended its Second Non-Platform Lot wafers had been successfully manufactured by imec.

Reportedly, the technical team within 4DS is still reviewing the data from these wafers with the expectation of analysis completion prior to the end of January.

Additionally, 4DS confirmed that its Second Platform Lot wafers will commence by mid-Q1 2021. Discussions are already in the works between imec (the manufacturer) and 4DS to determine the precise time of commencement.

Both the details of Non-Platform results and Platform scheduling is slated to be announced by 4DS in a further update before the end of this month. The company believes the outcome of results from the analysis will pave the way for further steps towards fabricating fully functioning megabit memory.

Imec collaboration extension being finalised

4DS’ manufacturing partner, imec, is still discussing the terms of the extension to their collaboration. With the finalisation of the extension in the works, 4DS informed the market that it will provide an update once the extension has been solidified.

A few other details

Some other important details in the quarterly included the recap of Dr. Wilbert van den Hoek being appointed as the new Chairperson of the Board on 30 November 2020. The previous Chairperson, Mr. Jim Dorrian, remains on the board as a Non-Executive Director.

We were also reminded that 4DS has a sales incentive in place. The purpose of this is to incentivise the members to pursue potential takeover deals of the company or sale of the company’s intellectual property.

Speaking of which, 4DS now holds 29 USA patents pertaining to its memory technology.

The company also reported that there are no current COVID-related restrictions impeding the company’s operations.

Lastly, 4DS’ cash as at 31 December, stands at $6.5 million. This is a reduction from the $7.6 million from the end of the previous quarter. Net cash used in operating activities during the quarter came in at $1.18 million. This was a reduction on the $3.29 million from the previous September quarter. This reduction was mainly attributed to the decrease in research and development spending and admin costs.

4DS Memory share price snapshot

The 4DS share price is up an impressive 247.46% in the last 12 months. This is even more impressive when compared to the March low in 2020 of 2.7 cents, making it nearly an 8X from that point.

These gains don’t come for the faint at heart though. It has not been a straight line up over this time, with the share price ebbing and flowing by 16% a week on average.

4DS now has a market capitalisation of $224 million.

More reading

• 2 tech ETFs delivering rapid growth
• Here’s why the K2Fly (ASX:K2F) share price is pushing higher
• Why the Medical Developments International (ASX:MVP) share price jumped 5% higher
• Why the CogState (ASX:CGS) share price shot 8% today
• Why the Genetic Signatures (ASX:GSS) share price surged 6% higher today

Motley Fool contributor Mitchell Lawler 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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There are some tech exchange-traded funds (ETFs) that are delivering rapid growth.

Past performance doesn’t mean it will be repeated in the future, but they have been strong performers in recent years.  

Here are two of those fast-growing ETFs:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The tagline for this ETF, offered by Betashares, is: “Own the future in a single ASX trade. Gain exposure to many of the world’s most innovative companies that are revolutionising our everyday lives.”

This ETF is invested in 100 of the largest businesses on the NASDAQ, which includes many of the global companies (based in the US) which are at the forefront of the new economy, according to Betashares.

In terms of actual businesses that it holds in its portfolio, the biggest positions are: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Netflix. But there’s more to the ETF than just the ‘FAANG’ shares.

Other shares within the Betashares Nasdaq 100 ETF include: Intel, Adobe, Broadcom, Qualcomm, Texas Instruments, Advanced Micro Devices, Applied Materials, Intuit, Intuitive Surgical, Mercado Libre, Booking Holdings, Activision Blizzards, JD.com, Baidu, Docusign and Zoom.

There are also quite a few non-tech shares in the portfolio including Costco, PepsiCo, Regeneron, Moderna, Starbucks and Monster Beverage.

The management fee of this ETF is not as high as many internationally-focused fund managers. Betashares Nasdaq 100 ETF has an annual management fee of 0.48% per annum.

Including those fees, Betashares Nasdaq 100 ETF has delivered a net return of 34.8% over the past year, 27.4% per annum over the past three years and 22% per annum over the last five years.

Betashares says that with its strong focus on technology, the ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This is another ETF provided by Betashares.

The idea behind Betashares Asia Technology Tigers ETF is to gain exposure to the 50 largest Asian technology companies outside of Japan in a single ASX trade.

Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector, according to Betashares.

Over half of the ETF is invested in businesses based in China. Another 20.7% is invested in Taiwan. After that, there is a 19.2% weighting to South Korean businesses. India is the final country with substantial exposure of 5.1%.

In terms of sectors, there are four sectors that have an allocation of more than 10%. The first is a 28.3% weighting to internet and direct marketing retail. The next allocation is a 19.2% position in semiconductors. The third biggest weighting is a 16.6% position to interactive media and services. The fourth biggest sector position is technology hardware, storage and peripherals with a 15.6% weighting.

The largest portfolio holdings include: Samsung, Taiwan Semiconductor Manufacturing, Meituan, Tencent, Alibaba, JD.com, Pinduoduo, Infosys and Netease.

The ETF has an annual management fee of 0.67% per annum. Despite the fee, it is delivered enormous short-term returns. Over the past six months the net return has been 33.2%, over the last year the net return has been 62% and since inception in September 2018 the net return has been 33.5% per annum.

More reading

• Here’s a fantastic ETF that ASX investors need to know about
• Afterpay and BrainChip were some of the most traded ASX shares last week
• 2 top ETFs delivering solid returns
• 3 great ASX tech shares to buy
• 3 five-star ASX shares to buy in January

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 K2Fly Ltd (ASX: K2F) share price pushed higher today after the company announced its newly-acquired Sateva business is exceeding expectations.

The K2Fly share price reached an intraday high of 34 cents in mid-afternoon trade, before retreating slightly to close at 30 cents, up 3.39.

What’s moving the K2Fly share price?

In today’s release, K2Fly advised that it has received more than $850,000 in new purchase orders from its Sateva business. In comparison, when Sateva was a standalone company, it achieved revenue of $1.4 million for the entire 2020 financial year.

K2fly, an asset management consulting service, formally acquired Sateva in November last year through a share sale agreement.

The company attributed its sound sales performance to Model Manager – a block model management tool within the Sateva suite. K2Fly reported that major mining companies within the iron ore industry have taken up the specialist software.

In addition, K2Fly revealed that it has trialled a new automated ore blocker solution at a major iron ore producer site in Western Australia. The company has entered contract negotiations with two major mining companies based on the strong results. K2fly forecasts its current client list to grow at a rapid pace.

The final result of the trials is expected to be released to the company’s global mining partners from next month.

Management comments

K2Fly chief commercial officer Nic Pollock welcomed the positive result, saying:

We couldn’t be happier with the timing of the Sateva acquisition and the opportunities it presents for us to better service the global iron ore producers, particularly here in our home patch of Western Australia.

With the purchase orders already received we are clearly over-performing on the first element. We are also very pleased at the response of our customers to the new product offerings which are incredibly timely for the iron ore industry, as well as other bulk open pit mining operations like gold and copper.

K2Fly share price summary

The K2Fly share price has had a strong run over the past 6 months, reaching a 52-week high of 42 cents in October. Its shares have dipped lower since November, but the K2Fly share price has regained some composure in its increase today.

More reading

• Why the Medical Developments International (ASX:MVP) share price jumped 5% higher
• Why the CogState (ASX:CGS) share price shot 8% today
• Why the Genetic Signatures (ASX:GSS) share price surged 6% higher today
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Aaron Teboneras 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 Medical Developments International Ltd (ASX: MVP) share price was a strong performer on Thursday.

The healthcare company’s shares closed the day a sizeable 5% higher at $7.18.

This means the Medical Developments International share price is now up 35% since the start of November.

Why did the Medical Developments International share price storm higher?

As well as getting a boost from improving investor sentiment, the Medical Developments International share price was given a lift today from the release of an announcement relating to its capital raising.

In December, the company announced a $30 million capital raising. These funds were to be used to accelerate the commercialisation of its Penthrox “green whistle” product in Europe, to strengthen the depth and breadth of its team, and to complete clinical and other studies.

Its commercialisation strategy is being led by two new appointments from biotech giant CSL Limited (ASX: CSL) – Gordon Naylor (incoming Chairman) and Brent MacGregor (CEO).

Medical Developments International’s capital raising comprised a $25 million institutional placement and a $5 million share purchase plan. Both were being undertaken at $6.50 per new share, which represented an 8.5% discount to its last close price at the time of announcement.

The institutional placement successfully completed in December and the share purchase plan was finalised today. However, due to strong demand for the latter, the company has raised more than it set out to do.

According to its release, the company received applications totalling $11.768 million from eligible shareholders. In light of this, it has elected to accept the oversubscribed amount, bringing its capital raising to a total of approximately $36.8 million.

This means approximately 1,810,412 new shares will be issued on 27 January 2021, representing approximately 2.61% of its shares on issue.

With the Medical Developments International share price closing the day at $7.14, those new shares are already in the money by just under 10%.

More reading

• Why the CogState (ASX:CGS) share price shot 8% today
• Why the Genetic Signatures (ASX:GSS) share price surged 6% higher today
• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• Top brokers name 3 ASX shares to sell today
• What a dramatic day in the US could mean for ASX shares in 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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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CogState Limited (ASX: CGS) shares performed well today after the company released its second quarterly report for FY21. At the market’s close, the CogState share price was trading 8.3% higher at $1.105. 

What drove the CogState share price?

The CogState share price was on the rise today after the company posted strong results for the second quarter of FY21. During the period, CogState executed $14.3 million in sales contracts. This took total sales contracts for the 2020 calendar year to $41.7 million.

In regards to the health provider’s cash flow, CogState recorded inflows of $13.95 million for the quarter, including net operating cash inflow of $15.5 million. Contributing to these numbers were cash receipts of $22.3 million received from customers and the one-off payment from Japanese pharmaceutical company Eisai.

Moreover, due to the significance of the agreement with Eisai, CogState is working with its advisors on the appropriate accounting treatment for the agreement. As such, audited half year revenue results will be included with the financial statements for the period ended 31 December. These are scheduled to be released on 25 February 2021 and will include details of the non-refundable cash payment Eisai paid to CogState for a global license agreement.

Business update

CogState’s overall results for the December half were strong, exceeding the company’s own expectations. During the half year, CogState executed sales contracts with existing customers in addition to first-time agreements with several new customers. In the context of restrictions relating to the pandemic, CogState advised it was particularly pleased with its success surrounding new customers.

The company’s FY21 second quarter result represented 72% growth on the prior quarter but was 26% less than the previous corresponding period. However, the previous corresponding quarter included execution of large, phase III Alzheimer’s disease contract with a total value in excess of $13 million. In comparison, the largest contract executed by the company in the December 2020 quarter was under $5 million.

Including today’s gains, the CogState share price is currently trading 121% higher than this time last year.

More reading

• What’s moving the Cogstate (ASX:CGS) share price today?

Motley Fool contributor Daniel Ewing 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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