Kuniko Limited (ASX: KNI) was incorporated in May 2006 as ‘Koppar Resources Europe Pty Ltd.’ A wholly-owned subsidiary of Vulcan Energy Resources Ltd. Upon the completion of the public offer, the company will be engaged in the development of non-lithium battery metals projects in Scandinavia to meet the growing demand from Europe, leaving a net-zero carbon footprint along with making strategic acquisitions to support the operations and bringing in the synergies.

Offer Details: Kuniko Limited is looking to raise a minimum amount of $7,886,213 (before costs). The offer consists of 12,500,000 shares to be issued to the public at $0.20 per share to raise $2,500,000 (before costs). In addition, a priority offer of 26,931,064  shares for $0.20 each through a 1:4 pro-rata offer to eligible Vulcan shareholders to raise $5,386,213 (before costs). To carry out the process smoothly, the company appointed Canaccord Genuity (Australia) Ltd. and Vert Capital Pty Ltd as Joint Lead Managers to the public offer.

Funds Utilization: The company will utilize the proceeds to carry out the exploration plans, strategic acquisitions and various mineral projects implementing the business objectives right in place. Further, the administrative costs along with working capital will be funded by the proceeds.

Key Offer Details (Source: Company Report)

Financial Performance: The company reported a decline in the payments to suppliers to $216 as of December 2020 as compared to $16,342 as of June 2020. The proceeds of the public offer will significantly boost the cash balance, reaching ~$7.45 million (on a pro forma basis) from $1,691 as of December 2020. The borrowings stood at $749,887, which are subject to conversion post successful issue of equity, making the company debt-free. Kuniko Limited had nil revenue generation. It had incurred a loss of $252,950 in six months ending December 2020 and a loss of $202,507 in FY20.

Key Risks:

Kuniko Limited is facing various risks related to the conditional prospectus, which will determine the successful listing of the stock on ASX. Further, the tenure of exploration, along with following Environmental, Social and Governance norms which makes the rules stricter for exploration of minerals. The company had nil operating revenues and incurred sizeable losses in the historical periods.

Outlook:

The company is into the niche segment of developing non-lithium battery metal projects for electric vehicles, which are strategically advantageous to supply the growing demand in the European market because of the rising hazard of carbon emissions. The company is currently in the phase of announcing various mineral projects and making strategic ties to optimize its product offering to the various battery manufacturers giving the shining prospect towards the future of the company. Kuniko Limited has earmarked capex budget of ~$1.19 million for exploration at Southeast Norway Tenements for Cobal, Copper and Gold.

Summary:

Kuniko Limited is looking to raise funds of ~$7.89 million to invest in exploration activities for non-lithium battery metals. It had nil operating revenues and incurred losses in historical periods. Upon the equity issuances, the company will become debt-free and operates with a cash balance of $7.45 million.

BCAL Diagnostics Limited

BCAL Diagnostics Limited (ASX: BDX) was incorporated in 2010 and is engaged in developing non-invasive laboratory blood tests for the detection of breast cancer.

Offer Details: BCAL Diagnostics Limited is looking to raise $8 million with the upper cap of a further $4 million in case of oversubscription. The total number of 160 million shares are on offer for a price of $0.25 per share.  Post successful public offerings, the holding statements will be dispatched on 8^th  July 2021 and the stock to list and trade on the ASX stock exchange on 16^th July 2021.

Funds Utilisation: The company will utilise the proceeds towards the establishment of mandatory Quality Management System, optimizing laboratory test performance, and to develop its Health Technology Assessment and reimbursement strategy. Further, the proceeds will be used to meet the administrative and other overhead expenses for running the operations smoothly.

Key Offer Details (Source: Company Report)

Financial Performance: The company witnessed an increase in revenues from the continuous operations to 71.3% to $0.44 million in FY20 vs $0.26 million in FY19. And it had reported positive cash flow from operations during 1H FY21 to ~$0.12 million (compared to outflows in the past three historical periods). Further, the company increased its cash balances by 91%, reaching $0.79 million as of December 2020 as compared to $0.42 million as of June 2020. The research and development expenses majorly constituted 41% of the operating cost base for FY20 were $0.46 million, while the employee benefit expenses stood at $0.31 million (27% of operating costs). BDX posted a net loss (before tax) of $0.24 million in H1 FY21 as against a loss of $0.69 million in FY20. 

Key Risks:

BCAL Diagnostics Limited is facing various risks related to the clinical trials, which require varied patient populations, and a larger sample size, which is mandatory, along with the strictest regulatory environment, makes it expensive. Further, the company is poised to the currency risks along the contractual and counterparty risks involved in the business operations.

Outlook:

The company has maintained high accuracy in its diagnostic tool over traditional mammography for breast cancer. It is targeting to foray into Australia, the USA and Europe. Through association with surgeons, the company to hold its upcoming studies at Royal Prince Alfred Hospital (Sydney), NSW BreastScreen, and Chris O’Brien Lifehouse. Upon the successful completion of the offer, BDX intends to expand its platform into prostate and lung cancer.

Summary:

BCAL Diagnostics Limited plans to raise $8 million (with an additional $4 million) through the issue of 160 million shares at an offer price of $0.25 per share.  The company intends to use the proceeds to build its platform and to foray into new geographies with extended capabilities in medical diagnostic. It had posted positive cash flows during H1 FY21 while continuing to operate in losses.

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