The Ava Risk Group Ltd (ASX: AVA) share price is lifting today following the positive announcement of a multi-base air force contract.

During mid-morning trade, the Ava share price shot up to an intraday high of 64 cents. However, shares in the risk management services and technologies company have since retraced to 61 cents, up 3.39%.

What did Ava announce?

The Ava share price is firmly in the green today after the company announced a major new contract award.

In its release today, Ava advised that it has successfully completed a comprehensive site acceptance testing using its Aura Ai sensing product. The evaluation and testing program took place at a major airbase within an undisclosed large Asian country.

In addition to the positive news, Ava revealed that it has further secured another contract with the same client. It noted that it has received instructions to deploy its security systems to 15 sites across selected major air force bases.

Ava highlighted that it has purchase orders of more than $0.7 million for multi-site security upgrades at 4 locations. The company stated that deployment at the initial sites is expected to start during the third quarter of FY21. The orders for the remaining 11 sites are anticipated to be undertaken during Q4 FY21 and into FY22.

CEO commentary

Ava Group CEO Rob Broomfield reaffirmed the company’s strengths:

Following a comprehensive evaluation and testing program and a competitive tender and trial process, our strong track record of providing world class security and assurance technologies has been reinforced by this large contract award with a highly respected defence end user.

How has the Ava share price performed?

Over the past 12 months, the Ava share price has performed strongly, gaining close to 350%. The company’s share registered a multi-year low of 8 cents in March, before storming to a peak of 78.5 cents in December.

More reading

• Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today
• ASX stock of the day: AVA Risk Group (ASX:AVA) share price rockets 30%

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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Botanix Pharmaceuticals Ltd (ASX: BOT) shares are edging lower today despite the company reporting it has received a research and development (R&D) tax refund. At the time of writing, the Botanix share price has fallen 3.45% lower to 14 cents.

What did Botanix Pharmaceuticals report?

In this morning’s ASX release, Botanix reported it has received an R&D Tax Incentive refund of $6.87 million. The company had $19.2 million in cash as at 31 December.

Botanix stated that the tax refund alongside positive data from its BTX 1801 antimicrobial Phase 2a study places it in a strong position for clinical programs and corporate development in the 2021 calendar year.

The federal government provides the R&D Tax Incentive to support companies in their research and development programs. Companies can receive refunds of up to 43.5% of eligible R&D expenditure.

Commenting on the tax refund, Vince Ippolito, president and executive chair, said:

The receipt of the R&D refund provides the company with a strong financial position and funding flexibility across our product development pipeline. Following the announcement of our successful BTX 1801 study data last week, Botanix is well positioned to execute on our dermatology and antimicrobial programs and extend our leading position in synthetic cannabinoid research and development.

Botanix Pharmaceuticals share price and company snapshot

Botanix Pharmaceuticals is a clinical-stage cannabinoid therapeutics company. It focuses on developing safe and effective topical treatments for serious skin conditions. The company has an exclusive license to use a proprietary drug delivery system, Permetrex, for direct skin delivery of active pharmaceuticals in all skin diseases.

Botanix shares listed on the ASX in January 1985. The company has a current market capitalisation of $141 million.

Year to date, the Botanix share price is up 7.7% and has surged around 600% from its 30 March lows.

Over the past 12 months, Botanix shares have gained 55%. By comparison, the All Ordinaries Index (ASX: XAO) is down 1% over the past calendar year.

More reading

• Why the Botanix (ASX:BOT) share price is rocketing 31% higher today
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• Why the Botanix (ASX:BOT) share price rocketed 22% to a record high today

Motley Fool contributor Bernd Struben 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 Starpharma Holdings Limited (ASX: SPL) share price has continued its positive run on Friday and charged higher again.

In fact, at the time of writing, the dendrimer products developer’s shares are up 4% to a record high of $2.13.

This latest gain means the Starpharma share price is now up an impressive 38% since the start of the year.

Why is the Starpharma share price charging higher today?

Investors have been buying Starpharma shares this morning following the release of a positive announcement.

According to the release, the company has signed a research agreement with global pharmaceutical giant Merck & Co. (MSD).

MSD. is one of the world’s largest pharmaceutical companies, generating US$48 billion in revenue in 2020.

What is the agreement?

The agreement will see MSD conduct a preclinical research evaluation of dendrimer based Antibody Drug Conjugates (ADCs) utilising Starpharma’s proprietary DEP technology.

Starpharma’s CEO, Dr Jackie Fairley, commented: “MSD is a recognised leader in oncology, and we are delighted to have signed this new Research Agreement in such an innovative and valuable area.”

The release explains that DEP ADCs exploit the unique potential of Starpharma’s DEP technology to provide enhanced characteristics to ADCs. This includes greater homogeneity, site specific attachment, and higher drug antibody ratio (DAR) than conventional ADC approaches.

It is worth noting that Starpharma has previously demonstrated the significant advantages conveyed by DEP ADCs in multiple preclinical studies. This includes with its DEP HER-2 ADC study, which showed significant tumour regression and 100% survival, outperforming Herceptin & Kadcyla in a human ovarian cancer model.

Furthermore, this won’t be the first potential product of its kind. The company notes that its DEP technology has already yielded four clinical stage oncology products. This includes one under development by another pharmaceutical giant, AstraZeneca.

If these developments are successful, it could bode well for the Starpharma share price in the coming years.

More reading

• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher
• Why the Starpharma (ASX:SPL) share price hit a record high today
• Starpharma (ASX:SPL) share price dips on quarterly update

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Imugene Limited (ASX: IMU) share price is on the move today. This comes after the company announced an update on its Phase 1 clinical trial of its immunotherapy candidate, PD1-Vaxx.

PD1-Vaxx is a B-cell immunotherapy designed to treat tumours by producing polyclonal antibodies that block PD-1 signalling, causing an anti-cancer effect.

During early morning trade, the Imugene share price is 5% higher to 10.5 cents.

Phase 1 progress

In this morning’s release, Imugene advised it has dosed the first patient from the second band of participants in its PD1-Vaxx Phase 1 clinical trial. The patient received a stronger 50 micrograms ‘mid-dose’ level of PD1-Vaxx at the Hackensack University Medical Centre in New Jersey, United States.

Initially, patients in the first cohort were administered 10 micrograms of PD1-Vaxx as monotherapy during the first study.

Imugene noted that there would be three different levels of testing PD1-Vaxx to patients following the cohort review committee (CRC) approval. Previously, Imugene cleared the first checkpoint to increase the dosage of its immunotherapy candidate last month.

The recruitment program for the first-in-human Phase 1 clinical trial consists of people with non-small cell lung cancer.

Imugene’s primary goal for the trial is to determine safety limits and the optimal dosage. In addition, it will carefully monitor efficacy, tolerability and immune response.

Imugene managing director and CEO Leslie Chong commented:

The start of our FDA IND approved clinical trial formally in the USA, the largest pharmaceutical market globally, is a significant milestone for Imugene.

Imugene share price snapshot

The Imugene share price has performed well over the past 12 months, climbing more than 200%.

The company’s shares hit a 52-week low of 1.6 cents in March, before gradually moving higher. In November, its shares reached an all-time high of 14 cents.

On the current share price, Imugene has a market capitalisation of $475 million.

More reading

• Here’s why the Imugene (ASX:IMU) share price is rising 9% 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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Singular Health Group Ltd (ASX: SHG) is set to float on the ASX today, following a heavily oversubscribed capital raising.

Singular Health officially lists on the ASX

Singular Health shares will be officially listed on the ASX today after the company completed a successful initial public offering (IPO).

The IPO, which offered up to 30 million shares to investors at 20 cents per share was heavily oversubscribed. As a result, Singular Health managed to raise around $6 million upon entering official quotation.

It is understood that five institutional investors participated in the capital raising, along with sophisticated and retail investors.

The successful public offering also gives Singular Health a market capitalisation of around $20 million.

According to the company’s prospectus, the capital raise will provide Singular Health with financial flexibility for research, development and future growth opportunities.

What does Singular Health do?

Singular Health is an Australian based medical imaging company that operates in the 3D medical imaging and printing industry.

The company develops proprietary software and technology which is designed to improve the collection of medical data to inform better health decisions.

Singular Health generates revenue through two primary streams. Firstly, through the upfront revenue from the sale of hardware and secondly through recurring monthly and annual subscription fees.

The company’s Volumetric Rendering Platform technology creates a 3D image viewed in virtual reality using a series of 2D medical images. This technology is used in five of Singular Health’s software products which, according to the company, gives it a competitive edge.

Singular Health advises that its technology can be used across a range of medical applications. These include orthodontics, maxillo-facial surgery, oncology, general surgery and orthopaedics.

MedVR is the company’s flagship product which is listed on the Australian Register of Therapeutic Goods.

According to Singular Health, MedVR software is currently used by medical practitioners, students, hospitals and universities in various countries including Hong Kong, Singapore, South Africa and Switzerland. 

Foolish takeaway

At the time of writing, Singular Health shares are poised to open the trading day at their IPO price of 20 cents per share. Shares in the company are expected to begin trading on the ASX at 11am AESDT. 

More reading

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• The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
• Bailador Technology Investments (ASX:BTI) share price is pushing higher
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower
• How I’d obtain financial freedom with a passive income from dividend shares

Motley Fool contributor Nikhil Gangaram 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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One of Australia’s most respected tech investors has just unveiled his vision to revolutionise digital infrastructure in Australia.

Bevan Slattery has announced plans to construct HyperOne, a 20,000 kilometre, $1.5 billion hyperscale national fibre network that will create more than 10,000 new jobs during construction.

What is HyperOne?

According to the tech start up, this will be the largest private, independent digital infrastructure project in Australia’s history.

HyperOne will be capable of carrying an enormous 10,000+ terabits per second. To put that into context, it is more traffic than every other national backbone built in Australia’s history combined. It intends to achieve this while remaining carbon neutral.

It will also be the most complete national fibre backbone ever constructed and the first built in almost two decades.

Mr Slattery commented: “Our existing backbone networks are on average 20 years old and the newest network was built back on 2003 when the Nokia 3310 was Australia’s newest phone, 85% of Australian internet connections were still dial-up and “Friends” were still on TV! Built before Cloud, the iPhone 3G let alone 4G/5G. It’s time for Australia to have tomorrow’s network today.”

The company notes that it will open up the north of Australia and provide valuable on-and-off-ramps to underserved regions across the country. It is also expected to be a significant job creator at a critical time for the country. HyperOne intends to partner with local industry in each state during its roll out.

According to Mr Slattery, HyperOne will support industries such as cloud computing, data centres, environmental sciences, space vehicle launch, aerospace, satellite, and defence. It will also provide transmission to local distribution networks such as the National Broadband Network and mobile operators. This could include the likes of Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG).

Can you buy HyperOne shares on the ASX?

Unfortunately for investors, at this stage HyperOne is a private business and isn’t listed on the Australian share market.

However, Bevan Slattery has previously founded and then listed companies including Megaport Ltd (ASX: MP1), NEXTDC Ltd (ASX: NXT), and Superloop Ltd (ASX: SLC). So, an ASX listing in the future could be a real possibility.

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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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended MEGAPORT 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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The AVITA Medical Inc (ASX: AVH) share price has plunged in opening trade today after the company released its second-quarter results for the fiscal year 2021. 

At the time of writing, the AVITA share price is trading at 5.85% lower at $6.55.

AVITA Medical is a regenerative medicine group that aims to address unmet medical needs in burn injuries, trauma injuries, chronic wounds and dermatological and aesthetics indications. The company endeavours to advance care for burn patients with its novel technology platform, the RECELL System. AVITA is also listed on the NASDAQ stock exchange in the United States under the ticker RCEL.

Let’s take a look at its quarterly results for the period ended 31 December 2020.

Financial results

The company reported a US-based RECELL revenue of $5.0 million. This is a 62% increase compared to the same quarter of the prior year.

Total global revenue increased 57% compared to the previous corresponding period (pcp), coming in at $5.1 million.

Operating expenses decreased to $10.4 million for the period compared to $13.4 million in the pcp.  AVITA attributes the savings partially to lower legal costs and lower stock-based compensation.

As of 31 December 2020, the company held $59.8 million in cash.

AVITA did not provide financial guidance due to current uncertainty stemming from coronavirus. The company advised that because it gained its revenue via 20 accounts with physicians, its accounts were susceptible to the impacts of COVID-19. This was currently creating an unpredictable business space.

AVITA reported a net loss of $5.6 million for the quarter, compared to the net loss of $10.5 million for the same quarter in the previous year.

CEO commentary and AVITA share price snapshot

AVITA Medical CEO Dr Mike Perry made the following comments:

I’m proud of our progress over the last quarter as we strive to broaden the applications of our platform to serve patients. With our burn centre account base now mostly built out, our sales team is poised and ready to drive utilisation as the pandemic abates and we regain access to hospitals and patients.

We have continued to make strong progress with our vitiligo pivotal trial, seeing very encouraging interest and enrolment trends, and we believe this could put us in a position to file for FDA approval in 2022.

The AVITA Medical share price has fallen more than 56% over the previous 12-month period. Year-to-date, the share price has gained around 44%.

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Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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 Bailador Technology Investments Ltd (ASX: BTI) share price is pushing higher today following the release of its half year results.

At the time of writing, the technology investment company’s shares are up 1% to $1.34.

How did Bailador perform in the first half?

For the six months ended 31 December, Bailador reported a gain on financial assets and marketable securities of $23.5 million. This was up 865% compared to the prior corresponding period.

This ultimately led to the company reporting a net profit of $13.1 million for the half. This compares to a profit of just $118,000 in the same period last year.

Also growing was Bailador’s pre-tax net tangible assets. It increased 12.3% to $1.39 per share.

What were the drivers of its growth?

The company’s investment in Instaclustr was a highlight during the half. Its valuation increased 42.2% following another strong 12-month period of growth. Instaclustr provides managed and supported open source solutions to businesses.

Also supporting its growth was an $11.5 million revaluation of Stackla. It was previously valued at $0, but this has been amended after demonstrating business performance and market attractiveness.

The valuation of its stake in Straker Translations Ltd (ASX: STG) was marked to market and up 71.4% compared to a year earlier. This was driven largely by the announcement of a new global translation agreement with IBM.

Bailador’s Co-Founder and Managing Partner, David Kirk, said: “We are very pleased with the performance of the portfolio during a tumultuous period. No emergency capital raisings were required, and the businesses all have healthy sustainable models. The quality of the businesses and management teams has the portfolio well positioned for continued growth.”

More growth ahead?

In an accompanying presentation, management pointed out that its portfolio ended 2020 conservatively valued. It estimates that its portfolio trades on an EV/LTM revenue multiple of ~6x.

This compares to an average of 19x for its peers, which it feels allows for material upside to returns

Outlook

Bailador expects 2021 to be a significant year for profitable realisations.

Bailador’s other Co-Founder and Managing Partner, Paul Wilson, commented: “A number of our Bailador portfolio companies represent attractive acquisition targets or IPO candidates. Harvesting gains is a key element of our business, and we are aiming to provide significant positive news to the market on these companies during the coming months.”

More reading

• Is HyperOne listed on the ASX?
• The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower
• How I’d obtain financial freedom with a passive income from dividend shares
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Straker Translations. 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 Baby Bunting Group Ltd (ASX: BBN) share price is on course to end the week on a disappointing note.

In morning trade, the baby products retailer’s shares are down 10% to $5.05.

Why is the Baby Bunting share price tumbling lower?

Investors have been selling Baby Bunting shares this morning following the release of its half year results.

According to the release, for the six months ended 31 December, Baby Bunting delivered exceptionally strong sales and profit growth.

Following a 15% increase in comparable store sales (or 21.8% excluding Victorian stores) and a 95.9% increase in online sales, the company delivered a 16.6% increase in total sales to $217.3 million.

And thanks to a 41-basis points expansion in its gross margin, the company recorded a 43.5% increase in pro forma net profit after tax to $10.8 million. This result was achieved without any government support during the pandemic.

Its margin improvement was driven by private label growth and stronger buying power.

In light of its strong profit growth, the Baby Bunting board elected to increase its fully franked interim dividend by 41.4% to 5.8 cents per share.

How does this compare to expectations?

Although the company delivered very strong sales and profit growth, the latter fell short of expectations. This appears to be what is weighing on the Baby Bunting share price today.

According to Morgans, its analysts were expecting a 53% increase in net profit to $11.4 million. This compares to its actual profit growth of 43.5% to $10.8 million.

Mangement commentary

Baby Bunting’s CEO & Managing Director, Matt Spencer commented: “Maternity and baby goods are essential products for parents and parents-to-be and are less discretionary in nature. Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share.”

“Sales in all channels were up. Our online sales growth in the half was very pleasing, with total online sales (including click & collect) up 95.9%. Significantly, we still have over 90% of sales occurring or being completed in our stores highlighting the importance of our store network across Australia. And we continue to progress our store network expansion in Australia with three stores opened in the half and more planned for the period ahead,” he added.

At the end of the period there were 59 Baby Bunting stores around Australia, with plans to see a network of over 100 stores in the country in the future.

The company also revealed that after a successful online launch in New Zealand, it now plans to open its first physical store in the country in FY 2022.

Outlook

Baby Bunting has started the second half in equally positive form.

Management advised that it achieved comparable store sales growth of 18.5% during the first six weeks of the second half. This lifts its year to date comparable store sales growth to 15.7%.

However, due to COVID-19 uncertainty, it was unable to provide guidance at this point.

More reading

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Motley Fool contributor James Mickleboro 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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When buying dividend shares, it is tempting to purchase the highest-yielding stocks to generate the largest passive income possible.

However, this strategy can cause a couple of issues. First, high-yielding stocks could struggle to afford their current payouts because of financial challenges. Second, high-yielding stocks may not offer strong dividend growth. This could make them less attractive over the long run.

As such, focusing on the reliability of dividends, as well as their growth prospects, could be a means of securing financial freedom via income stocks.

Buying dividend shares with a robust passive income

A reliable passive income is likely to be a key part of achieving financial freedom for most people. For example, a consistent income provides security, whereas a volatile income can mean budgeting challenges that impact negatively on quality of life.

As such, it is important to check whether a company can afford its dividends in a variety of market conditions. One means of doing this is making sure that they are covered by profit, so that if sales fall due to weak operating conditions they are less likely to affect the dividend. Furthermore, considering whether a company’s business model is highly correlated to the performance of the economy could be a shrewd move. Defensive stocks that provide greater resilience in times of economic uncertainty could be more attractive than cyclical businesses.

Purchasing dividend stocks with growth potential

In order to achieve financial freedom, it is important to have a passive income that grows by at least as much as inflation each year. If it does not, an investor may find that their spending power is gradually reduced. Over time, this can mean that an individual’s lifestyle is severely impacted – especially since a higher rate of global inflation may be ahead because of the loose monetary policies being pursued.

Clearly, assessing the dividend growth potential for any company is subjective. However, by analysing factors such as its long-term industry outlook, market position and strategy, it is possible to build a picture as to whether it is likely to provide a growing passive income to its investors in the coming years.

Holding cash for emergencies

Inevitably, there will be times when an investor requires access to cash that is above and beyond their regular passive income. For example, this may be due to one-off repairs to a house or car that were unexpected. As such, it is important to have some emergency cash available for these kinds of situations.

This does not mean relying on cash for a return. However, it does mean having some savings in place that can supplement an income from dividend shares when needed. This can help an investor to enjoy greater financial freedom, with less worry, in the long run.

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Motley Fool contributor Peter Stephens 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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