Invion Ltd

Proposed Spin-off Chronic Airway Therapeutics has selected R&G Pharma to progress Chinese development of nadolol: Invion Ltd.’s (ASX: IVX) stock fell 2.78% on September 27, 2018 after the company’s proposed spin-off Chronic Airway Therapeutics (CAT), has selected China’s leading Contract Research Organisation R&G Pharma Studies Co., Ltd, to underpin Chinese development of nadolol as a treatment for chronic obstructive pulmonary disease (COPD). CAT has selected R&G because the company had showed expertise, has strong relationships with the China Food and Drug Administration (CFDA), and deep understanding of the similarities and differences with US FDA regulations. CAT and R&G will make an effort towards lodging formal requests for a pre-IND and End of Phase II meeting with the CFDA scheduled to take place in the fourth quarter of 2018. This pre-IND meeting is an important crucial step required for commencing Phase III clinical trials in China, with an intention to get regulatory approval for the Chinese market. Meanwhile, COPD is a major health problem in China with the prevalence estimated to be above 50 million patients. This disease is of lung, that causes shortness of breath, comprising of emphysema and chronic bronchitis, and the same is on the rise due to the country’s serious air pollution and high rate of cigarette smoking. Chinese authorities have identified COPD as a critical area of medical attention. While this may be of importance to IVX, the stock that has risen 12.50% in three months and 1040% in last one year as on September 26, 2018, is under our watchlist as the same already is at a slightly high level ($ 0.035) and overbought zone and carries some risks related to the sector. The stock price strength indicators seem to be now weighing towards a bearish tone.
 

Food Revolution Group Ltd

Increase in revenue in excess of $5 million per annum with increase in distribution and new products: Food Revolution Group Ltd.’s (ASX: FOD) stock climbed up 6.90% on September 27, 2018 as the company after reviewing its product range and distribution, has planned to launch four new 2-litre Not From Concentrate juices under the Thirsty Brothers brand for Woolworths Supermarkets, and will replace three existing products. The company will distribute four new products nationally, comprising of the range that includes orange pulp-free, apple, tropical and pear/mango juices. Moreover, FOD will also manufacture a range of cold-filled ambient “not from concentrate” 350ml juices for distribution into the independent Victorian grocery channel. The company has also secured the ranges of three Juice lab 400ml pressed juices. With the launch of new products and enhancing the distribution, the company’s revenue will increase more than $5 million per annum. FOD is strategically taking steps to grow their market in Australia and is also moving into new markets, such as China, with the formation of new relationships with Careline Australia Pty Ltd and Health More Pty Ltd. As a result, FOD stock has risen 163.64% in three months as on September 26, 2018 and is trading at a P/E of 23.77x. The stock is a watch for entry at a lower level with growth catalysts staying intact going forward. FOD traded at $ 0.155 on September 27, 2018 and the parabolic rise for the stock has stayed strong with immediate support at $0.145 while resistance is noted around $ 0.165.
 

Australian Mines Ltd

Subsidiary Norwest Minerals is raising fund: Australian Mines Limited’s (ASX: AUZ), subsidiary Norwest Minerals Limited has issued a prospectus for raising fund through an initial public offering (IPO). The company is offering up to 33,000,000 Shares at an issue price of $0.20 per Share to raise $6,600,000. Norwest Minerals has a portfolio of prospective gold and base-metal properties in Western Australia. After the successful listing on ASX, Norwest’s strategy plans to transform the company from an explorer into a mineral producer. Therefore, the company will be using the funds raised to increase their exploration activities on its projects, to continue to explore and drill the identified walk-up drill targets, complete further geophysical programmes and upgrade the current Inferred Mineral Resource estimate at the Marriotts Project. The Company is also assessing strategic opportunities that may have the potential to create additional value for Shareholders. Australian Mines is expected to hold 28.63% of the new entity after the completion of the offer. The expected official quotation date is October 29, 2018.  On the other hand, AUZ has signed a $12 million investment agreement with a New York-based fund, managed by Bergen Asset Management, LLC. Bergen Global Opportunity Fund II, LLC initially will make an up-front investment of $4 million, followed by a second investment of $4 million, and, by mutual consent, a third of $4 million. The investments will be made through an unsecured interest-free convertible security with a 24-month maturity. Part of the proceeds will be used to complete the acquisition of the Flemington project in New South Wales on a 100% basis. Meanwhile, AUZ stock has fallen 52.22% in three months as on September 26, 2018. Given the volatile trend, we have a wait and watch view on the stock at the current price of $ 0.042. Further, the continuous downtrend indicates that the stock may remain in the oversold region for a while.
 

Offer Details (Source: Company Reports)
 
 

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