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The Allegra Orthopaedics Ltd (ASX: AMT) share price lifted 6.45% today, finishing the trading session at 33 cents a share.

Allegra researches, develops and manufactures medical devices including prosthetic implant tools.

Here’s a summary of the half-year results that led to today’s gain.

Allegra reports loss and share price goes up

In the results, the company advised that revenues from ordinary activities fell 1.6% to $2.3 million during the first half of FY21.

Allegra attributed this loss to travel restrictions and a higher appointment cancellation rate brought on by the coronavirus pandemic.

That said, commissions revenue was up for 1H FY21 coming in at $97,378 compared to the 1H FY20 earnings of $45,487. That’s a 114% jump.

Revenue from the sale of goods was 4% lower at $2.2 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) zoomed up 122%, landing at $129,499 for the period. This compares to a loss of $582,293 for the previous corresponding period. 

The company’s basic earnings per share (EPS) was negative 11 cents per share for the 1H FY21 period. EPS was negative 82 cents a share for 1H FY20.

At the end of 1H FY21, Allegra held $273,767 in cash and cash equivalents. This isn’t far off the $287,878 held at the end of 1H FY20.

Device update

The company also advised today that the revised design of its Sr-HT-Gahnite spinal cage device had been well received. Results from an accredited US testing facility put the new cage design “above the 95th percentile for published data on FDA approved cages”.

The revised design also successfully passed testing that involved dynamic torsion and dynamic compression shear tests applied to the spinal cage. The company believes these results confirmed the effectiveness of the new design.

Allegra continues to progress toward US Food and Drug Administration (FDA) approval to conduct a large animal study applying its updated technology.

Snapshot of the Allegra share price

The Allegra share price has soared 200% higher over the past year. However, year-to-date, it has dropped 11.4%.

The company’s market capitalisation is $32.4 million and there are presently 104.5 million shares outstanding.

More reading

• Catapult (ASX:CAT) share price in focus following half year results
• What did the Japara (ASX:JHC) share price do after a big HY21 profit plunge?
• Here’s why the Resapp (ASX:RAP) share price closed 5% lower
• Why is the Betmakers (ASX: BET) share price down 5.4%?
• Here’s why the Clearview Wealth (ASX:CVW) share price rose 3% today

Motley Fool contributor Gretchen Kennedy 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 Catapult Group International Ltd (ASX: CAT) share price was out of form on Wednesday and tumbled lower.

The sports analytics and wearables company’s shares fell 4.5% to end the day at $1.70.

Investors will be hoping for better from the Catapult share price tomorrow following the release of its half year result after the market close.

How did Catapult perform in the first half?

For the six months ended 31 December, Catapult reported a 4% reduction in revenue to US$33.3 million. This decline was driven by challenges in closing new business due to COVID-19 and its decision to prioritise high-margin subscription sales over capital sales.

In respect to the latter, Catapult’s subscription revenue business model was resilient, declining just 1.5%. It now accounts for 78.5% of total revenue. Management notes that the small decline was attributable to the fall in demand for content licensing due to COVID-19, and two one-time deals recorded last year.

Positively, recurring subscription revenue across the company actually rose during the half. At the end of the period, the company’s annualised contract value (ACV) metric had grown 8.3% to US$44.5 million. This was driven by an increase in ACV across short-, medium-, and long-term customers. Catapult also reported a reduction in ACV churn to 4.5%. This was despite the severe COVID-19 challenges

Pleasingly, the company’s free cash flow was positive at US$8.8 million. This left it with a cash balance of US$$24.6 million and no debt.

Management commentary

Catapult’s CEO, Will Lopes, was pleased with the half. He commented:

 “Our goals during this unprecedented period were to prioritise high-margin subscription sales over capital sales, drive multi-solutions adoption among our existing customers, keep churn low, generate cash, and continue to improve the position of Catapult for growth when this pandemic is behind us. We feel, despite this difficult climate, we delivered on these objectives very well.”

“I am also very pleased to have seen how essential our solutions were to our customers. Despite the difficult period for our customers with slashed budgets and staff retrenchments, our ACV retention was the best we have ever seen. These results continue to demonstrate how resilient our business is and I am very bullish that we are well positioned to return to accelerating growth when this pandemic is behind us.”

Outlook

No guidance has been given for the remainder of the year. However, management appears positive on its prospects. It commented:

“The Company believes, that with a vaccine being rolled out and the industry’s hard lessons learnt, the impact of the pandemic on global sport was at its worst during 1H21, and that Catapult has never been in a better position to capitalise on its strengths and industry-leadership position. The Company exited 1H21 with confidence and improved momentum against its key SaaS metrics.”

The company also revealed that it is reviewing its portfolio of global brands, this includes approximately $4 million of acquired brands. It may consider rationalising some of them following the review.

More reading

• What’s happening with the Catapult (ASX:CAT) share price?
• Why the Catapult (ASX:CAT) share price is jumping higher today

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 Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International 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 Japara Healthcare Ltd (ASX: JHC) share price was on watch today after the company reported its FY21 half-year result.

Japara is one of the country’s largest aged care operators.

What was in the Japara HY21 result?

Japara reported that it managed to grow its total revenue by 3.6% to $220.3 million due to increased government revenue and additional places.

The average occupancy for the period was 89.2%. The occupancy on 19 February 2021 was 87.3%. New places were added with the opening of the brownfield extension at Albury with 25 places.

However, there were $7 million of non-recurring (ASX: JHC) share price was on watch today after the company reported its FY21 half-year result. Japara is one of the country’s largest aged care operators. What was in the Japara HY21 result? Japara reported that it managed to grow its total revenue by 3.6% to $220.3 million due to increased government revenue and additional places. The average occupancy for the period was 89.2%. The occupancy on 19 February 2021 was 87.3%. New places were added with the opening of the brownfield extension at Albury with 25 places. However, there were $7 million of non-recurring COVID-19 pandemic specific expenses incurred, partially offset with a $1.6 million recognised reimbursement through the government grant program. Applications have been lodged to be reimbursed for the full expense incurred. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 67% to $8 million, impacted by COVID-19 costs. ‘Recurring EBITDA’ declined 29% to $15 million. The net cash from operating activities more than halved to $24.7 million, down from $59.7 million in the prior corresponding period. This includes net refundable accommodation deposit (RAD) and independent living inflows (ILU) of $2.4 million. It reported a statutory net loss after tax of $9.5 million. The prior corresponding result was a net profit of $5.4 million. Balance sheet Japara said that its net bank debt was $208 million at 31 December 2020, which includes $48 million of core net debt and $160 million of development debt. It still has $137 million of available liquidity, however it isn’t going to pay an interim dividend. FY21 outlook Japara said that progress continues to be made on the development program with an identified pipeline of 628 net new aged care places and three co-located seniors living development projects. Its latest developments, being Trugo place in Victoria with 120 places and Corymbia in NSW with 102 places are expected to open during the second half of FY21. Japara said that the revenue and cost implications of COVID-19 remain uncertain. The funding environment continues to be challenging, with occupancy lower than the company was hoping. Recently completed developments are expected to contribute to earnings. Decisions on future development commencements have been deferred until the COVID-19 pandemic and economic outlook become more certain. Japara’s management is focused on the government response to the upcoming final report of the royal commission into aged care quality and safety.”>COVID-19 pandemic specific expenses incurred, partially offset with a $1.6 million recognised reimbursement through the government grant program. Applications have been lodged to be reimbursed for the full expense incurred.

Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 67% to $8 million, impacted by COVID-19 costs. ‘Recurring EBITDA’ declined 29% to $15 million.

The net cash from operating activities more than halved to $24.7 million, down from $59.7 million in the prior corresponding period. This includes net refundable accommodation deposit (RAD) and independent living inflows (ILU) of $2.4 million.

It reported a statutory net loss after tax of $9.5 million. The prior corresponding result was a net profit of $5.4 million.

Balance sheet

Japara said that its net bank debt was $208 million at 31 December 2020, which includes $48 million of core net debt and $160 million of development debt.

It still has $137 million of available liquidity, however it isn’t going to pay an interim dividend.

Japara share price

Despite such a large change in profit, the Japara share price was unmoved today. It’s down 18% over the last year, though it has recovered significantly since the news of the effectiveness of the COVID-19 vaccines late last year. 

FY21 outlook

Japara said that progress continues to be made on the development program with an identified pipeline of 628 net new aged care places and three co-located seniors living development projects.

Its latest developments, being Trugo place in Victoria with 120 places and Corymbia in NSW with 102 places, are expected to open during the second half of FY21.

Japara said that the revenue and cost implications of COVID-19 remain uncertain. The funding environment continues to be challenging, with occupancy lower than the company was hoping.

Recently completed developments are expected to contribute to earnings.

Decisions on future development commencements have been deferred until the COVID-19 pandemic and economic outlook become more certain.

Japara’s management is focused on the government response to the upcoming final report of the royal commission into aged care quality and safety.

More reading

• Here’s why the Resapp (ASX:RAP) share price closed 5% lower
• Why is the Betmakers (ASX: BET) share price down 5.4%?
• Here’s why the Clearview Wealth (ASX:CVW) share price rose 3% today
• Woolworths (ASX:WOW) to move forward with Endeavour demerger
• The Fortescue (ASX:FMG) share price is up 13% in February, time to buy?

Motley Fool contributor Tristan Harrison 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 Resapp Health Ltd (ASX: RAP) share price spent today in the red after the company’s 1HY21 results came out this morning.

Apparently, investors weren’t impressed with the results and sent ResApp shares down 5.0% to close at 5.6 cents a share.

The company develops and commercialises its ResApp technology to provide healthcare solutions for respiratory disease. Let’s review the results to decipher what pushed the ResApp share price down for the day.

ResApp Health posts first-half loss

For the period ended 31 December 2020, the healthcare solutions provider reported a net loss of $3.1 million compared to the $3.8 million loss posted for 1HY20.

ResApp’s net asset position was $5.5 million.

At the end of 1HY21, ResApp Health’s cash and cash equivalents totalled $4.2 million, a bump up from $3.9 million at the end of 1HY20.

Revenue totalled $46K and the company received $345,300 in government grants and tax incentives.

ResApp reported a 41 cent loss per share for 1HY21 compared to a 55 cent loss per share for 1HY20.

The company spent $1.7 million during 1HY21 on research and development activities pertaining to its medical technology. During 1HY20, it spent $2.8 million.

New appointment

ResApp also today advised the market that Mike Connell has been appointed as vice president (VP), commercial.

The company said Mr Connell brought extensive experience in sales, marketing and strategy across the industry. 

In his new position, he will process the company’s growth strategy by pursuing a variety of international commercial activities. 

The company believes that Mr Connell’s strong sector understanding and networks will present the business with new opportunities going forward.

During his time with GlaxoSmithKline (GSK),  Mr Connell launched and led GSK’s European Established products business which delivered revenues totalling £3 billion during 2014.

About the ResApp share price

The ResApp share price has had a challenging past 12 months, crashing 74.5% over the period.

The company has a market capitalisation of $44.7 million and there are 758.1 million shares outstanding.

More reading

• Why the ResApp (ASX:RAP) share price is climbing higher

Motley Fool contributor Gretchen Kennedy 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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Gambling operator Betmakers Technology Group Ltd (ASX: BET) saw its share price tumble 5.41% on Wednesday.

There was no meaningful official announcement from the company that could have directly swayed the stock price. However, a $75 million capital raise was executed on Wednesday, meaning some stock dilution did take place.

Last week the stock soared on news that racing industry identity Matt Tripp has bought into the company with $25 million of newly created shares. Other institutional investors put in a further $50 million.

Tripp was also appointed strategic advisor for Betmakers. “I am delighted to invest into the company and take on a role to assist in growing the business at scale globally,” he said at the time. Adding that “BetMakers has cemented itself with a compelling proposition in the global racing wagering market. They have built a formidable team with a highly trusted brand and established a global footprint with a large customer base.”

Betmakers investors cashing in profits?

Betmakers shares have gone gangbusters in the past 4 months. At the start of November, it was trading at 40 cents. It spiked up to as high as $1.08 last week.

The Betmakers share price has since deflated to 88 cents after just 4 trading days. This could’ve been the result of some profit-taking ahead of the company’s half-year results.

In December, the Newcastle business pulled off the acquisition of multinational sports betting provider Sportech PLC for $56.2 million.

Betmakers managing director, Todd Buckingham, said at the time the deal would “supercharge” its growth in the United States.

The acquisition would give us a meaningful presence in the US, including in 36 of the states and across more than 200 venues, 25 digital outlets and 9,000 betting terminals. 

It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions.

Betmakers was founded in 2013. The company now has branches in Brisbane, Melbourne and Colombo, Sri Lanka.

More reading

• Here’s why the Betmakers (ASX:BET) share price is soaring
• Betmakers (ASX:BET) share price jumps 9% to touch 52-week high

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The Clearview Wealth Ltd (ASX: CVW) share price has had a strong day today, rising 3.26% to close at 48 cents a share. That looks especially strong when you consider the S&P/ASX 200 Index (ASX: XJO) actually fell 0.9% today, meaning Clearview outperformed the broader market by 4.16%.

The catalyst for Clearview’s outperformance appears to be its earnings report for the first half of the 2021 financial year (1H21) that was released to the markets this morning before open. The period covers the 6 months to 31 December 2020.

What did Clearview report this morning?

Clearview reported that gross income came in at $155.9 million for the period. That was a 4% improvement on the $149.7 million from the prior corresponding period (1H20). Life insurance premiums were the biggest (and only) growth area in this category. Premiums revenue was reported at $133.3 million, up 7% from the $124.2 million from 1H20. Financial advice fees fell the most, down 19% to $7.1 million from 1H20’s $8.8 million.

The company was pleased with the life insurance figures, as this represents a source of recurring revenue for the business.

Meanwhile, operating earnings before tax were $18.6 million, up 47% from the $12.8 million in 1H20. That helped push underlying net profits after tax (NPAT) to $13 million, up 27% on 1H20’s number of $10.2 million.

Reported NPAT however, came in at $9.7 million, a 1% drop from the previous period’s $9.8 million.

In terms of Clearview’s wealth management business, the company reported that funds under management (FUM) rose to $3.02 million. That was up 5% from last year’s $2.89 million. This, Clearview states, is the result of both positive net inflows as well as underlying investment performance.

Clearview is pleased with the results overall, stating that the business has “proven resilient to the health and economic impacts of COVID-19 to date”. That was despite the fact that the “ultra-low interest rate environment continues to adversely impact earnings”.

Pleasingly for dividend lovers, Clearview has told investors to expect a dividend reinstatement in FY2021, subject to the company’s performance in the second half of the financial year. Clearview hasn’t paid a dividend since September 2018.

What did management have to say about these results?

ClearView managing director, Simon Swanson, said the following on Clearview’s performance:

While challenging market conditions persist, this result reflects the impact of initiatives to improve claims management outcomes, boost customer loyalty and strengthen our relationships with professional financial advisers.

Fundamental demand for the quality products and services offered by ClearView has not changed. Australia’s complex tax and regulatory environment, ageing population and rising debt levels underpin the need for strategic advice and fit-for-purpose products to help people achieve their financial goals, manage risk and retire with confidence. COVID-19 has only heightened awareness of the need for sound financial advice and relevant products like life insurance.

Going off of the Clearview share price movements today, it seems investors are pleased with this result.

More reading

• Why is the Telstra (ASX:TLS) share price falling today?
• Maggie Beer (ASX:MBH) share price surges on 20% sales growth
• What’s happening with ASX 200 tech shares today?
• Is the Harvey Norman (ASX:HVN) share price next to do a capital return cashback?
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Motley Fool contributor Sebastian Bowen 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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Woolworths Group Ltd (ASX: WOW) announced today that it would continue with the demerger of its liquor arm at the end of FY21.

Announced in 2019 and initially slated for completion in March 2020, Woolworths postponed the demerger at the onset of the COVID-19 pandemic. The company instead prioritised its response to the pandemic and the “uncertain operating environment”.

What is Endeavour Group?

Woolworths created Endeavour Group out of a merger between Endeavour Drinks and ALH Group. Endeavour Drinks ran brand names such as Dan Murphy’s and BWS, while ALH Group was responsible for the company’s hotel and hospitality ventures.

Woolworths expects to gross over $1.1 billion from the spinoff.

Words from the chair

Commenting on the demerger, Woolworths chair Gordon Cairns provided the following quote.

Following the onset of the COVID-19 last year, our main priority was the safety of our customers, teams and communities. With the easing of operating restrictions and more resilient trading from Hotels than initially expected, we are now targeting June for separation.

The Board remains confident that a separation will maximise long-term shareholder value.

He added:

As previously announced, Peter Hearl has been appointed Chairman-elect of Endeavour Group and Steve Donohue has been appointed CEO-elect, subject to approval of the demerger. Further board and management announcements will be made in due course.

Woolworths share price snapshot

Over the past year, the Woolworths share price has fallen by 7.3%. Whilst having mostly recovered from their May 2020 lows of around $32, Woolworths shares are yet to reach their pre-COVID highs of around $43.

As reported earlier today, Woolworths announced its half-year results for FY21 this morning. The announcement saw the Woolworths share price rise 1.15% to $39.54.

Woolworths shares fell slightly in afternoon trade to close at $39.50. This is still a 1.05% rise compared to yesterday’s close and an overall market fall of 0.9%.

More reading

• Maggie Beer (ASX:MBH) share price surges on 20% sales growth
• ASX 200 down 0.45%: Woolworths rises, Blackmores jumps, Appen sinks
• Woolworths (ASX:WOW) share price rising on earnings boost
• 5 things to watch on the ASX 200 on Wednesday
• 6 high profile ASX 200 shares reporting results this week 

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Fortescue Metals Group Ltd (ASX: FMG) share price has gone up by 13% in February 2021. Could it be time to buy the shares?

About the miner

Fortescue is one of the biggest iron ore miners in Australia. It’s actually one of the biggest in the world, the only ones bigger are the big two Australian miners BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), as well as Vale in Brazil.

It is based in Western Australian and has large scale infrastructure and mining assets in the Pilbara, Western Australia. It was established by the Fortescue Chair, Dr Andrew Forrest in 2003.

It has operations like the Chichester and Solomon mining hubs. It is also developing the Western Hub, which is home to the new Eliwana mine. It also claims that the Iron Bridge Magnetite Project will be one of the highest-grade magnetite projects in the world.

Whilst the company has major existing iron ore operations, it also has numerous activities underway for more growth. It has exploration activities ongoing in New South Wales and South Australia, as well as in Ecuador and Argentina. It also has preliminary exploration activities on tenements that are in application in Colombia, Peru, Portugal and Kazakhstan, prospective for copper, gold and lithium.

What’s driving the Fortescue share price?

The company suffered a declined of 14% at the end of January 2021 and it has been recovering ever since then.

Last week the company announced its FY21 half-year result.

There was a high level of growth. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 57% to US$6.6 million, with the EBITDA margin rising to 71%.

This drove the net profit after tax (NPAT) up by 66% to US$4.1 billion. Earnings per share (EPS) also grew by 66%, to US$1.33 per share. In Australian dollar terms that was A$1.84 per share.

The cashflow statistics also showed growth. Cashflow from operating activities went up by 42% to US$4.4 billion and free cashflow improved by 12% to US$2.52 billion.

The strength of the profit growth allowed management to grow the interim dividend by 93% to AU$1.47 per share. It also meant the net debt could be reduced by 57% to US$110 million.

After shipping 90.7 million tonnes of ore in the first half, Fortescue is expecting to ship between 178 Mt to 182 Mt for the full FY21. The C1 cost is expected to be between US$13.50 per wet metric tonne (wmt) to US$14 per wmt.

Broker opinion on the Fortescue share price

The brokers at Macquarie Group Ltd (ASX: MQG) recently had a look at each of the large iron ore miners. It has been impressed by the level of dividends and there is still potential earnings growth because of the strong iron ore price.

Whilst the FY21 first half-half profit result was what Macquarie was expecting, the dividend was higher than expected by around 7%.

Macquarie thinks that Fortescue can continue to generate good returns and it’s the broker’s favourite large cap ASX miner to buy.

The broker thinks that Fortescue is valued at 7x FY21’s estimated earnings and has projected it’s going to pay a grossed-up dividend yield of 16.2% this year.

Macquarie has a share price target of $26.50 for Fortescue.  

More reading

• Bell Potter tips the Fortescue (ASX: FMG) share price to go lower 
• 4 ASX hydrogen shares powering forward in 2021
• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• 2 ASX dividend shares with very generous yields
• Will Fortescue (ASX:FMG) shares really pay an 18% dividend yield in FY21?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 Decmil Group Limited (ASX: DCG) share price was on form on Wednesday.

At one stage, the engineering company’s shares were up as much as 9% to 60 cents.

The Decmil share price eventually closed the day 7% higher at 59 cents.

Why did the Decmil share price zoom higher?

Investors were buying Decmil shares on Wednesday following the release of its half year results. Those results revealed a big improvement in its profitability despite softer revenues.

For the six months ended 31 December, the company reported a 30% decline in revenue to $165.1 million.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $5.6 million. This compares to an EBITDA loss of $19.9 million a year earlier.

It was a similar story on the bottom line, with its profit coming in at $0.6 million. This is a huge improvement on the $31.4 million loss it posted a year earlier.

Management notes that its strong result was underpinned by renewed strategy to target contracts with blue chip clients within Decmil’s areas of core expertise.

Positively, at the end of the period, the company had work in hand of ~$600 million. It expects this to expand further during the second half as government spending on infrastructure development continues its strong momentum.

Management commentary

Decmil’s Chief Executive Officer, Dickie Dique, commented: “The Company has successfully navigated several key operational and financial obstacles and emerged in an increasingly improved position as the first half of the 2021 fiscal year progressed.”

“Decmil’s business structure has been streamlined, our focus on prudent capital management has increased, and we are successfully securing lower risk contracts from blue chip clients. This has enabled us to beat our own expectations and achieve a period of profitability in FY21.”

“Crucially, we have also reaffirmed our F150+ accreditation, which in conjunction with a reinforced working capital position will drive our ability to target the burgeoning tender pipeline of infrastructure works from the Federal and State Governments of over $7 billion within the Company’s core capabilities.”

Outlook

There was no guidance for the remainder of the year. However, management anticipates that the strong momentum experienced in the first half will continue into the second half of the fiscal year.

The company also intends to maintain its renewed focus on targeting lower risk projects with blue chip customers across the infrastructure, resources, energy and construction sectors. It notes that these sectors continue to have a strong pipeline of upcoming work.

More reading

• The Thomson (ASX:TMZ) share price jumped 9% higher today after its latest announcement
• BARD1 (ASX:BD1) share price plummets 15% on legal proceedings
• Over The Wire (ASX:OTW) share price rockets after earnings, dividend boost
• What gives, when profits rise, but share prices fall?
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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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The Thomson Resources Ltd (ASX: TMZ) share price ended the day higher after providing an update on the sale of the Webbs and Conrad Projects. At market close, shares in the Australian-based exploration company finished at 18 cents, up 9.37%.

Let’s take a look and see why the company’s shares rose strongly.

What did Thomson announce?

The Thomson share price advanced higher after reporting progress on its deal with Silver Mines Limited (ASX: SVL).

According to its release, Thomson advised that it reached an agreement with Silver Mines to amend the sale contracts of the Webbs and Conrad Projects.

Both companies originally signed a binding term sheet in November last year for Thomson to acquire both silver projects. In effect, this would make Thomson a major gold and silver exploration and mining company.

Under the revised document, Thomson will pay a combination of cash and shares to finalise the sale. This includes a non-refundable payment of $750,000 which has been paid to Silver Mines.

A further payment will need to be made equivalent to the cash bonds in place, which is estimated to be around $269,000.

In addition, Thomson will issue Silver Mines’ 70 million fully paid ordinary shares split across two tranches. Attached to the ordinary shares will be 50 million options at an exercise price of 12.4 cents per option. This will expire within 3 years from the date of issue.

While the agreement has been laid out, shareholder approval is still needed for the deal to go ahead. Thomson has planned to hold a meeting in mid-March for shareholders to give to okay to issue the shares.

Share price review

Over the past 12 months, the Thomson share price has accelerated to give investors gains of over 740%. In March, the company’s shares listed for as low as 0.02 cents before moving on an upwards trajectory.

Based on the current share price, Thomson has a market capitalisation of almost $60 million

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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.

The post The Thomson (ASX:TMZ) share price jumped 9% higher today after its latest announcement appeared first on The Motley Fool Australia.

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