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The company’s Phase 2 BRACELET-1 trial just revealed promising results in advanced breast cancer, showing significant survival benefits. But the stock price hasn’t surged—yet.
In less than FIVE MINUTES of your attention, we’ll show you why this market disconnect offers a timely opportunity for potentially huge gains, with REAL examples of biotech stocks that experienced similar delays before skyrocketing.
Let’s now take at why the MARKET is asleep at the wheel on Oncolytics Biotech (NASDAQ: ONCY) (TSX: ONC).
WHAT Analysts Are Saying + WHY the Market Is Slow to Catch On
Across six top analysts listed by NASDAQ.COM, including RBC Capital Markets, Canaccord Genuity, and Cantor Fitzgerald, Oncolytics Biotech (NASDAQ: ONCY) (TSX: ONC) is receiving a consensus STRONG BUY rating with an average price target of $4.77.
That’s a potential +400% gain from its Dec 20, 2024 share price of $0.83!
But here’s the surprising part: despite the remarkable results from Oncolytics’ BRACELET-1 Phase 2 trial, the market barely reacted.
The stock didn’t surge—in fact, it hardly moved. So why hasn’t the market caught on yet?
Studies show that smaller biotech companies often experience delayed stock responses to breakthrough results[1],[2]. The big jumps in share price usually happen after key milestones like regulatory approvals or the start of late-stage trials.
NOW… with Oncolytics gearing up for a registration-enabling study, the market could be waiting for this next step to wake up.
For investors, this lag in market reaction could be your window to act before the big move.
The analysts see it. The data supports it. And yet the market hasn’t fully priced in the potential. This is the kind of opportunity that savvy investors dream of—where you can get in before the crowd and reap the rewards as the market finally catches up.
Time is ticking. Don’t let this chance pass you by.
WHAT the Market Missed in BRACELET-1’s Results:
The Data Was Strong, Not Weak:
Median overall survival (OS) for pelareorep combined with paclitaxel wasn’t reached, meaning more than half of the patients were still alive at the end of the study. This shows significant long-term survival benefits—a huge win in metastatic breast cancer.
Underappreciated OS Improvement:
The estimated median OS of 32.1 months versus 18.2 months in the control arm is a 76% improvement. This is meaningful in any clinical trial, but for breast cancer, it’s huge.
The Stock Didn’t Reflect the Reality:
Despite these promising results, the market failed to respond. Stocks often move on sentiment rather than data, and the current market sentiment missed the significance of this news. But savvy investors see the disconnect—this could be the moment to capitalize before the market corrects itself.
How Does Oncolytics Stack Up to Comps?
To give a clearer sense of where Oncolytics Biotech(NASDAQ: ONCY) (TSX: ONC) stands in the oncology space, we’ve broken down two sets of comparable companies.
Group 1 consists of companies with higher market caps than Oncolytics but are behind in the clinical trial process—as ONCY has completed a Phase 2 trial already, whereas none of the examples to be presented are past Phase 1 trials in their current pipelines.
Meanwhile, Group 2highlights case study examples of stocks that surged after reaching the same stage that Oncolytics is currently at, offering a look into the potential future.
Group 1: Bigger Market Caps, Behind in Trials
Several companies are currently valued far higher than Oncolytics Biotech(NASDAQ: ONCY) (TSX: ONC) but are in earlier stages of clinical development. This creates a discrepancy between their market value and Oncolytics’ potential, as pelareorep progresses through trials with promising results.
Here’s a look at the companies with larger market caps but behind in the trial process compared to ONCY.
Group 2: Case Studies of Biotech Stocks That Surged
As we’ve seen before, smaller biotech companies like Oncolytics Biotech (NASDAQ: ONCY) (TSX: ONC)often experience delayed market reactions to positive trial data[8],[9].
The companies below were in similar positions, with their stock prices surging after releasing key clinical data or hitting major regulatory milestones.
These examples show how the market catches up when the full potential becomes undeniable.
Case Study 1: Candel Therapeutics Inc. (NASDAQ: CADL)
Market Cap Surge: $19.52M to $318.27M (Nov 2023 – May 2024)
Catalyst: Candel’sstock took off after positive Phase 2 data in pancreatic cancer[10], reporting a 130% improvement in median overall survival (OS) over the control group—a strong comparison to Oncolytics’ 76% improvement in breast cancer.
Relevance: Both companies focus on oncology with strong clinical data. Candel’smarket cap jumped from ~$20M to over $300M, echoing Oncolytics’ current size and potential for a similar run.
Case Study 2: ADC Therapeutics SA (NYSE: ADCT)
Market Cap Surge: $37.75M to $439.75M (Feb 2024 – May 2024)
Catalyst: ADC Therapeutics surged after positive Phase 2 lymphoma data[11]. The significant rise was driven by strong clinical results, just as Oncolytics is poised to leverage its breast cancer results.
Relevance: Like Oncolytics, ADC is focused on oncology and its Phase 2 success led to a huge market cap increase—proof that positive data in this space can trigger massive stock gains.
Case Study 3: G1 Therapeutics Inc. (NASDAQ: GTHX)
Market Cap Surge: $58.03M to $377.22M (Oct 2023 – Sep 2024)
Catalyst: G1’s rise was fueled by post hoc analyses from its Phase 2 metastatic triple-negative breast cancer (mTNBC) trial[12], showing improved OS with subsequent therapies.
Relevance: As another oncology company with a direct breast cancer focus, G1 offers a compelling comparison to Oncolytics, showing how successful Phase 2 results can drive significant growth in market value.
**Bonus: Pancreatic Cancer Program**
While breast cancer is the focus, Oncolytics’ pancreatic cancer program also shows promise, with prior trials demonstrating remarkable improved OS and PFS in pancreatic cancer patients, garnering FDA Fast Track Designation.
Don’t Miss This Opportunity!
The market hasn’t caught on yet, but when it does, Oncolytics Biotech(NASDAQ: ONCY) (TSX: ONC) could soar. With analysts predicting a +400% upside and a registration-enabling study on the horizon, now’s the time to act. The data is strong, and those who see the opportunity now could reap the rewards.
Click here to learn more (in more in-depth detail) about why Oncolytics Biotechis one of the most undervalued biotech stocks today.
USA NEWS GROUP
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Oncolytics Biotech Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Oncolytics Biotech Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Oncolytics Biotech Inc. which were purchased in the open market, and reserve the right to buy and sell, and will buy and sell shares of Oncolytics Biotech Inc. at any time without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of Oncolytics Biotech Inc. and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
With Lithium Demand Set to Double by 2030 and Drastically Outpacing New Supply, Lithium South Development (TSXV:LIS) (OTC:LISMF) is Poised with a World-Class Project and Potentially Sector Disrupting Technology to Lead the Way to a Sustainable ‘Gold Rush’ in Argentina
While lithium prices reach new highs, the lithium sector is battling a multi-front war against a wave of challenges: logistical, geopolitical, and environmental.
Analysts are sounding the alarm that while by 2030, lithium demand is set to reach 2.4 million tonnes LCE. [1] It’s not hard to believe in such a jump, as lithium consumption has already nearly quadrupled since 2010.[2]
Given that the worldwide supply of lithium is expected to hit 600,000 tonnes of LCE in 2022,[3] that means we have 6 years to quadruple our production to meet demand.
But getting there is proving to be a monumental task, especially with mounting environmental, geopolitical and technological challenges.[4]
Analysts estimate this will require at least US$42 billion in new investment to accomplish this feat.[5] By 2028, the global lithium market is expected to reach US$8.2 billion.[6]
Located next to two major lithium operations in the renowned Lithium Triangle, Lithium South Development (TSXV:LIS) (OTC:LISMF)is actively drilling to expand the M&I Resource of itsworld-class HMN Li project that’s at the center of a global race to prove the validity of the game-changing ESG-friendly lithium extraction process that the world has been waiting for.
Advanced exploration stage lithium company with a world-class project in the mining friendly Salta Province, Argentina—within the world-famous Lithium Triangle
Great Real Estate of the project that’s adjacent to production from Livent and surrounded by a near-production project owned by Korean giant POSCO.
High Quality Brine Resource with an M&I Resource of 570,000 tonnes of LCE, a projected mine life of 30 years, from high lithium brine with 756 mg/L lithium.
Solid PEA Numbers calculated in early 2019 indicated robust economics with a NPV (8% discount) of US$217 million, that carries a CAPEX of only US$98 million.
HOWEVER those numbers were calculated in 2019, before lithium prices went on a huge run, rising more than 13-fold in just the last two years.[7]
ESG-Friendly, Game-Changing Technology is being tested by three different entities in three different countries with brines sampled from the flagship asset, which to-date have returned extremely promising results (99% lithium recovery).
Staged & Work Completed with a promising 2022 drill campaign underway designed for resource expansion, that’s already returned high lithium brine results. An Environmental Impact Report has already been completed, and nearby claims have been acquired to secure additional water sources and a location for a future plant and processing facilities.
Qualified, Proven Team with extremely strong technical lithium experience that includes minds that were integral to the development of some of the region’s most prominent lithium production operations.
The Need for Clean(er) Lithium
Before we get to the core of the Lithium South Development (TSXV:LIS) (OTC:LISMF) story, we need to look at the most exciting technological race that’s taking the lithium sector by storm, and how LIS fits into it.
A new report from The Nature Conservancy (TNC) and UCLA recently outlined the need for prioritizing the least impactful methods of lithium extraction to protect the environment and communities.[8]
The questions being raised by TNC are important for markets, because of their reputation for input on assessing the worthiness of companies and “Investing in Nature” in this ESG-focused era.[9]
Voices are growing louder, calling for the methods we use to produce lithium to radically change.
A new lithium technology is drawing heavy investment from major players, such as mining giant Rio Tinto, automaker General Motors, and even the U.S. Energy Department, called direct lithium extraction (DLE).[10]
“[DLE is] such a game changer. There’s huge opportunities.” – U.S. Energy Secretary Jennifer Granholm[11]
Time Magazine recently pointed its readers towards a lithium race in Argentina that could deliver the country a “Sustainable Gold Rush”.[12]
Direct Lithium Extraction (DLE): The Answer?
Embedded within the Time Magazine report was a focus on the work of privately-owned, California-based start-up Lilac Solutions, which in 2021 raised $150 million from investors including Lowercarbon Capital and T. Rowe Price.[13]
This is where Lithium South Development’s (TSXV:LIS) (OTC:LISMF) HMN Li Project begins to shine.
In April 2021, Lilac and Lithium South generated huge optimism, announcing how Lilac’s patented Ion Exchange (IX) technology recovered 99% of the lithium from a synthetic sample of the HMN Li Project brine—identical in chemical composition to that contained within the project’s NI 43-101 Preliminary Economic Assessment (PEA).[14]
But it doesn’t stop there. Lithium South is working with two other groups (not just Lilac) to test the validity of DLE on the HMN Li project, including with Florida-based Eon Minerals Inc.[15]with its in Argentina and with Chemphys and their lab facilities in China.[16]
Using Chemphys’ XFP-Lithium DLE process, test work delivered 80% lithium recovery, which is a near doubling of lithium recovery rates from conventional evaporation extraction.[17]
These results from the DLE testing has been blowing conventional methods out of the water (even though Lithium South is prudently also testing conventional evaporation as a potential method to produce from HMN Li)[18].
How Does Lithium South Development (TSXV:LIS) (OTC:LISMF) Stack Up With Its Neighbors?
Lithium South Development’s (TSXV:LIS) (OTC:LISMF) HMN Li Project is in great company, and surrounded by several major projects.
The HMN Li already has moved forward with a DLE Pilot Plant on deck, a 2019 PEA that gave the project a US$218 million NPV (8%), and with C$64 million on hand, LIS is fully funded to fast-track towards a Feasibility Study.
Where the smart investor will now pay close attention is towards where the company is now, where it’s going, and how it will get there.
If it doesn’t take the project all the way to production on its own, it’s surrounded by stories of major takeout target successes.
According to the company’s calculations, the HMN Li Project is near the top tier in terms of grade and chemistry, meaning it not only has a high grade of lithium that’s ahead of several other big players and their massive projects, but also that it comes with a favourably low magnesium to lithium ratio.
With a M&I Resource of 571,000 T of LCE, the current drilling program is designed to further expand the resource.
And so far the results have looked VERY good.
Recently the company announced a high-grade lithium discovery at its Alba Sabrina claim, with lithium values ranging from 732-772 mg/L lithium[19]—very much on pace with the previous resource’s grades and far above the cut-off grade of 500 mg/L lithium.
Because the drilling campaign’s results are starting to hit the company’s news flow, this is where the smart investor would take notice and not want to be left on the outside looking in as the case for an expanded resource becomes much stronger.
As of August 12, 2022, some might say that Lithium South Development’s (TSXV:LIS) (OTC:LISMF) stock value is an absolute BARGAIN… given that the company’s market cap is less than US$40M, and nearby projects acquired were sold for upwards of 9 digits.
The relevance of Lithium South’s high lithium grades cannot be overstated.
Even if we’re looking at conventional brine evaporation ponds, lithium grade is directly related to the size of the ponds. These sizes of ponds account for nearly 50% of the CAPEX of a brine project.
Meaning, the higher the grade, the lower the CAPEX.
Where does Lithium South’s HMN Li stack up amongst its peers?
Now factor in the potential injection of the DLE factor, and the economics start looking even more enticing.
As we’ve seen above, Lilac delivered 99% lithium recovery, while Chemphys delivered 80% lithium recovery, which was DOUBLE that of conventional evaporation tests on the property.
Which means, if one of the three DLE methods ends up winning out, the potential for Lithium South and its flagship asset skyrockets.
Instead of taking 18 months or more to produce lithium through evaporation, Lithium South could potentially produce it within HOURS. Instead of recovering only ~40% of the overall lithium available, DLE could provide as high as 80% or more!
And the potential for losses due to weather goes down to ZERO. Meaning, the project further de-risks itself, should DLE prove itself to be a viable commercial method of producing lithium.
Strong Leadership Team
In order to properly assess and work with a potentially game-changing technology in one of the world’s top lithium production regions, the HMN Li project requires capable hands… Thankfully, Lithium South Development (TSXV:LIS) (OTC:LISMF) is in VERY capable hands.
LIS’s leadership team includes:
Adrian F. C. Hobkirk – President and CEO: Hobkirk has 32 years of experience in the mining and venture capital industry, including extensive experience working in Argentina. He is the co-discoverer of the Dublin Gulch Gold Deposit (Yukon) and the Yarnell Gold Mine (Arizona). He’s explored for precious metals around the world and is currently developing the 1.5-million-ounce AuCuEq Groete Gold Copper Project in Guyana. Hobkirk is the founder of Lithium South Development Corp., having acquired the HMN Lithium Project and managed its development to date.
Christopher P. Cherry – CFO and Director: Cherry has over 20 years of corporate accounting and audit experience. Formerly an auditor with KPMG, he has extensive corporate experience and has held senior-level positions for several public mining companies. Cherry is a certified general accountant and a chartered accountant.
Yi Hua Dai, PhD – Director: Yi Hua (PhD) founded Chemphys in 1998 to focus on battery quality and high purity lithium processing. He’s a certified Technical and Economic Expert of Sichuan Province and China Non-ferrous Metals Industry Association Expert. He has a proven record of leading the development of lithium manufacturing techniques with 24 patents valid and under application.
Alison Dai – Director: Dai has 9 years of experience in the lithium industry and is responsible for business development and is a director for Chengdu Chemphys Chemical Industry Co., Ltd. In her role at Chemphys, Dai has been involved in developing strategic partnerships, international markets and procurement. Prior to joining Chemphys, Dai was an investment banking analyst at J.P. Morgan Australia in the mining and metals team.
Fernando E. Villarroel – VP & Director Project Development: Villarroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.) as Project Manager which included construction management and commissioning of the initial pilot evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T.
Marcela Casini – Senior Geologist and Hydrogeologist: Casini has a distinguished career in the lithium exploration and development industry in Argentina, having worked for Rio Tinto as a field geologist exploring salars in the Puna region, as well as on the Minera Exar lithium brine project, a joint venture with Lithium Americas Corp. and Ganfeng Lithium Co, leading the exploration that led the project to the feasibility 2012. From 2019 to 2021 she was responsible for the strategy and development of the production well field, supporting a projected 40,000 tonne per year lithium operation. She’s also has consulted to PepinNini Minerals regarding the exploration and development of lithium resources at the Rincon and Pular salar since 2016.
Vijay Mehta, PhD. – Technical Consultant and Qualified Person: A recognized expert in lithium mining and processing, Dr. Mehta (PhD) brings almost five decades of experience to LIS. His experience includes evaluating the technological and economic feasibility of lithium brine projects around the world. He was the Product and Process Technology Development Leader of FMC Corporation for 30 years and was one of the founding developers of FMC’s lithium plant at the Hombre Muerto Salar, Argentina, which has been in production since 1998. He holds 12 lithium related U.S. patents and has published over 50 technology reports and ten academic papers.
7 Reasons to Put Lithium South Development (TSXV:LIS) (OTC:LISMF) on Your Must-Watch List
1 The Timing: The lithium market is exploding, with prices skyrocketing over the last two years, and demand expected to more than double by the end of the decade. Meanwhile, analysts are predicting what could be a catastrophic shortfall of lithium supplies in the next few years, unless lithium miners can increase their production to four times its current levels.
2 Advanced Exploration Stage Project with Great Real Estate: The HMLi Project is located within the mining friendly Salta Province, Argentina, adjacent to a producing Livent property, and surrounded by a near-producing project owned by Korean giant POSCO.
3 High Quality Brine Resource: The project comes with high lithium brine (756 mg/L), with a low magnesium to lithium ratio (2.6:1), and a M&I Resource of 0.57 Mt LCE, and a projected mine life of 30 years.
4 Solid PEA Numbers: So far, the PEA done on the project indicates robust economics, with a NPV (8% discount) of US$217 million, that carries a CAPEX of only US$98 million. However, those numbers were calculated in 2019, prior to lithium’s surge to its current LCE market prices that greatly dwarf those previous figures.
5 Proprietary, ESG-Friendly Technology: Direct Lithium Extraction (DLE) is on the cutting edge of becoming one of the industry’s biggest game changers. It allows for potentially double the lithium recovery without large evaporation ponds. It takes hours, not years, and creates a much smaller environmental footprint, which would appease local communities in ways that conventional production has yet to. Lithium South is evaluating three different unique DLE technologies, as well as the potential for conventional production as a benchmark.
6 Qualified Proven Team: Extremely strong technical lithium experience, with an office and laboratory located nearby in Salta, Argentina, backed by world-renowned technical consultant and qualified person Vijay Mehda, along with senior geologist/hydrologist Marcela Casini.
7 Staged & Work Completed: Two production wells have already been drilled and cased. An Environmental Impact Report is currently underway. TEM survey results confirm further resource expansion potential. The company has aggressively acquired nearby claims to secure water sources and a location of future plant and processing facilities.
Now that you’ve digested the fruits of our research, it’s time to follow up with some research of your own.
NOW IS THE PERFECT TIME for smart investors to seriously follow the rapidly Lithium South Development (TSXV:LIS) (OTC:LISMF) story.
LIS is actively working to expand its already impressive resource in one of the world’s most sought after lithium jurisdictions, and is at the forefront of proving the viability of potentially industry changing DLE technology.
So, do your own due diligence, and don’t forget to click here to sign up for the Lithium South’s newsletter to make sure you don’t miss out on any news and milestones along the way to becoming the next darling of the lithium sector.
USA News Group
Editorial Staff
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Lithium South Development Corporation advertising and digital media from the company directly. There may be 3rd parties who may have shares of Lithium South Development Corporation, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Lithium South Development Corporation which were purchased in the open market, and reserve the right to buy and sell, and will buy and sell shares Lithium South Development Corporation at any time without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of Lithium South Development Corporation and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
With Lithium Demand Set to Double by 2030 and Drastically Outpacing New Supply, Lithium South Development (TSXV:LIS) (OTC:LISMF) is Poised with a World-Class Project and Potentially Sector Disrupting Technology to Lead the Way to a Sustainable ‘Gold Rush’ in Argentina
While lithium prices reach new highs, the lithium sector is battling a multi-front war against a wave of challenges: logistical, geopolitical, and environmental.
Analysts are sounding the alarm that while by 2030, lithium demand is set to reach 2.4 million tonnes LCE. [1] It’s not hard to believe in such a jump, as lithium consumption has already nearly quadrupled since 2010.[2]
Given that the worldwide supply of lithium is expected to hit 600,000 tonnes of LCE in 2022,[3] that means we have 6 years to quadruple our production to meet demand.
But getting there is proving to be a monumental task, especially with mounting environmental, geopolitical and technological challenges.[4]
Analysts estimate this will require at least US$42 billion in new investment to accomplish this feat.[5] By 2028, the global lithium market is expected to reach US$8.2 billion.[6]
Located next to two major lithium operations in the renowned Lithium Triangle, Lithium South Development (TSXV:LIS) (OTC:LISMF)is actively drilling to expand the M&I Resource of itsworld-class HMN Li project that’s at the center of a global race to prove the validity of the game-changing ESG-friendly lithium extraction process that the world has been waiting for.
Advanced exploration stage lithium company with a world-class project in the mining friendly Salta Province, Argentina—within the world-famous Lithium Triangle
Great Real Estate of the project that’s adjacent to production from Livent and surrounded by a near-production project owned by Korean giant POSCO.
High Quality Brine Resource with an M&I Resource of 570,000 tonnes of LCE, a projected mine life of 30 years, from high lithium brine with 756 mg/L lithium.
Solid PEA Numbers calculated in early 2019 indicated robust economics with a NPV (8% discount) of US$217 million, that carries a CAPEX of only US$98 million.
HOWEVER those numbers were calculated in 2019, before lithium prices went on a huge run, rising more than 13-fold in just the last two years.[7]
ESG-Friendly, Game-Changing Technology is being tested by three different entities in three different countries with brines sampled from the flagship asset, which to-date have returned extremely promising results (99% lithium recovery).
Staged & Work Completed with a promising 2022 drill campaign underway designed for resource expansion, that’s already returned high lithium brine results. An Environmental Impact Report has already been completed, and nearby claims have been acquired to secure additional water sources and a location for a future plant and processing facilities.
Qualified, Proven Team with extremely strong technical lithium experience that includes minds that were integral to the development of some of the region’s most prominent lithium production operations.
The Need for Clean(er) Lithium
Before we get to the core of the Lithium South Development (TSXV:LIS) (OTC:LISMF) story, we need to look at the most exciting technological race that’s taking the lithium sector by storm, and how LIS fits into it.
A new report from The Nature Conservancy (TNC) and UCLA recently outlined the need for prioritizing the least impactful methods of lithium extraction to protect the environment and communities.[8]
The questions being raised by TNC are important for markets, because of their reputation for input on assessing the worthiness of companies and “Investing in Nature” in this ESG-focused era.[9]
Voices are growing louder, calling for the methods we use to produce lithium to radically change.
A new lithium technology is drawing heavy investment from major players, such as mining giant Rio Tinto, automaker General Motors, and even the U.S. Energy Department, called direct lithium extraction (DLE).[10]
“[DLE is] such a game changer. There’s huge opportunities.” – U.S. Energy Secretary Jennifer Granholm[11]
Time Magazine recently pointed its readers towards a lithium race in Argentina that could deliver the country a “Sustainable Gold Rush”.[12]
Direct Lithium Extraction (DLE): The Answer?
Embedded within the Time Magazine report was a focus on the work of privately-owned, California-based start-up Lilac Solutions, which in 2021 raised $150 million from investors including Lowercarbon Capital and T. Rowe Price.[13]
This is where Lithium South Development’s (TSXV:LIS) (OTC:LISMF) HMN Li Project begins to shine.
In April 2021, Lilac and Lithium South generated huge optimism, announcing how Lilac’s patented Ion Exchange (IX) technology recovered 99% of the lithium from a synthetic sample of the HMN Li Project brine—identical in chemical composition to that contained within the project’s NI 43-101 Preliminary Economic Assessment (PEA).[14]
But it doesn’t stop there. Lithium South is working with two other groups (not just Lilac) to test the validity of DLE on the HMN Li project, including with Florida-based Eon Minerals Inc.[15]with its in Argentina and with Chemphys and their lab facilities in China.[16]
Using Chemphys’ XFP-Lithium DLE process, test work delivered 80% lithium recovery, which is a near doubling of lithium recovery rates from conventional evaporation extraction.[17]
These results from the DLE testing has been blowing conventional methods out of the water (even though Lithium South is prudently also testing conventional evaporation as a potential method to produce from HMN Li)[18].
How Does Lithium South Development (TSXV:LIS) (OTC:LISMF) Stack Up With Its Neighbors?
Lithium South Development’s (TSXV:LIS) (OTC:LISMF) HMN Li Project is in great company, and surrounded by several major projects.
The HMN Li already has moved forward with a DLE Pilot Plant on deck, a 2019 PEA that gave the project a US$218 million NPV (8%), and with C$64 million on hand, LIS is fully funded to fast-track towards a Feasibility Study.
Where the smart investor will now pay close attention is towards where the company is now, where it’s going, and how it will get there.
If it doesn’t take the project all the way to production on its own, it’s surrounded by stories of major takeout target successes.
According to the company’s calculations, the HMN Li Project is near the top tier in terms of grade and chemistry, meaning it not only has a high grade of lithium that’s ahead of several other big players and their massive projects, but also that it comes with a favourably low magnesium to lithium ratio.
With a M&I Resource of 571,000 T of LCE, the current drilling program is designed to further expand the resource.
And so far the results have looked VERY good.
Recently the company announced a high-grade lithium discovery at its Alba Sabrina claim, with lithium values ranging from 732-772 mg/L lithium[19]—very much on pace with the previous resource’s grades and far above the cut-off grade of 500 mg/L lithium.
Because the drilling campaign’s results are starting to hit the company’s news flow, this is where the smart investor would take notice and not want to be left on the outside looking in as the case for an expanded resource becomes much stronger.
As of August 12, 2022, some might say that Lithium South Development’s (TSXV:LIS) (OTC:LISMF) stock value is an absolute BARGAIN… given that the company’s market cap is less than US$40M, and nearby projects acquired were sold for upwards of 9 digits.
The relevance of Lithium South’s high lithium grades cannot be overstated.
Even if we’re looking at conventional brine evaporation ponds, lithium grade is directly related to the size of the ponds. These sizes of ponds account for nearly 50% of the CAPEX of a brine project.
Meaning, the higher the grade, the lower the CAPEX.
Where does Lithium South’s HMN Li stack up amongst its peers?
Now factor in the potential injection of the DLE factor, and the economics start looking even more enticing.
As we’ve seen above, Lilac delivered 99% lithium recovery, while Chemphys delivered 80% lithium recovery, which was DOUBLE that of conventional evaporation tests on the property.
Which means, if one of the three DLE methods ends up winning out, the potential for Lithium South and its flagship asset skyrockets.
Instead of taking 18 months or more to produce lithium through evaporation, Lithium South could potentially produce it within HOURS. Instead of recovering only ~40% of the overall lithium available, DLE could provide as high as 80% or more!
And the potential for losses due to weather goes down to ZERO. Meaning, the project further de-risks itself, should DLE prove itself to be a viable commercial method of producing lithium.
Strong Leadership Team
In order to properly assess and work with a potentially game-changing technology in one of the world’s top lithium production regions, the HMN Li project requires capable hands… Thankfully, Lithium South Development (TSXV:LIS) (OTC:LISMF) is in VERY capable hands.
LIS’s leadership team includes:
Adrian F. C. Hobkirk – President and CEO: Hobkirk has 32 years of experience in the mining and venture capital industry, including extensive experience working in Argentina. He is the co-discoverer of the Dublin Gulch Gold Deposit (Yukon) and the Yarnell Gold Mine (Arizona). He’s explored for precious metals around the world and is currently developing the 1.5-million-ounce AuCuEq Groete Gold Copper Project in Guyana. Hobkirk is the founder of Lithium South Development Corp., having acquired the HMN Lithium Project and managed its development to date.
Christopher P. Cherry – CFO and Director: Cherry has over 20 years of corporate accounting and audit experience. Formerly an auditor with KPMG, he has extensive corporate experience and has held senior-level positions for several public mining companies. Cherry is a certified general accountant and a chartered accountant.
Yi Hua Dai, PhD – Director: Yi Hua (PhD) founded Chemphys in 1998 to focus on battery quality and high purity lithium processing. He’s a certified Technical and Economic Expert of Sichuan Province and China Non-ferrous Metals Industry Association Expert. He has a proven record of leading the development of lithium manufacturing techniques with 24 patents valid and under application.
Alison Dai – Director: Dai has 9 years of experience in the lithium industry and is responsible for business development and is a director for Chengdu Chemphys Chemical Industry Co., Ltd. In her role at Chemphys, Dai has been involved in developing strategic partnerships, international markets and procurement. Prior to joining Chemphys, Dai was an investment banking analyst at J.P. Morgan Australia in the mining and metals team.
Fernando E. Villarroel – VP & Director Project Development: Villarroel has 12 years of experience in the mining industry in Argentina with a focus on Lithium process development. From 2009 to 2013 he worked with Lithium Americas Corp. (Minera Exar S.A.) as Project Manager which included construction management and commissioning of the initial pilot evaporation facilities and laboratory at the Cauchari Olaroz Lithium Project. He has also acted as a consultant to Neo Lithium and International Lithium Inc. He holds a degree in Industrial Engineering and has specialized training in Data Modeling & Analysis for Business and Engineering from M.I.T.
Marcela Casini – Senior Geologist and Hydrogeologist: Casini has a distinguished career in the lithium exploration and development industry in Argentina, having worked for Rio Tinto as a field geologist exploring salars in the Puna region, as well as on the Minera Exar lithium brine project, a joint venture with Lithium Americas Corp. and Ganfeng Lithium Co, leading the exploration that led the project to the feasibility 2012. From 2019 to 2021 she was responsible for the strategy and development of the production well field, supporting a projected 40,000 tonne per year lithium operation. She’s also has consulted to PepinNini Minerals regarding the exploration and development of lithium resources at the Rincon and Pular salar since 2016.
Vijay Mehta, PhD. – Technical Consultant and Qualified Person: A recognized expert in lithium mining and processing, Dr. Mehta (PhD) brings almost five decades of experience to LIS. His experience includes evaluating the technological and economic feasibility of lithium brine projects around the world. He was the Product and Process Technology Development Leader of FMC Corporation for 30 years and was one of the founding developers of FMC’s lithium plant at the Hombre Muerto Salar, Argentina, which has been in production since 1998. He holds 12 lithium related U.S. patents and has published over 50 technology reports and ten academic papers.
7 Reasons to Put Lithium South Development (TSXV:LIS) (OTC:LISMF) on Your Must-Watch List
1 The Timing: The lithium market is exploding, with prices skyrocketing over the last two years, and demand expected to more than double by the end of the decade. Meanwhile, analysts are predicting what could be a catastrophic shortfall of lithium supplies in the next few years, unless lithium miners can increase their production to four times its current levels.
2 Advanced Exploration Stage Project with Great Real Estate: The HMLi Project is located within the mining friendly Salta Province, Argentina, adjacent to a producing Livent property, and surrounded by a near-producing project owned by Korean giant POSCO.
3 High Quality Brine Resource: The project comes with high lithium brine (756 mg/L), with a low magnesium to lithium ratio (2.6:1), and a M&I Resource of 0.57 Mt LCE, and a projected mine life of 30 years.
4 Solid PEA Numbers: So far, the PEA done on the project indicates robust economics, with a NPV (8% discount) of US$217 million, that carries a CAPEX of only US$98 million. However, those numbers were calculated in 2019, prior to lithium’s surge to its current LCE market prices that greatly dwarf those previous figures.
5 Proprietary, ESG-Friendly Technology: Direct Lithium Extraction (DLE) is on the cutting edge of becoming one of the industry’s biggest game changers. It allows for potentially double the lithium recovery without large evaporation ponds. It takes hours, not years, and creates a much smaller environmental footprint, which would appease local communities in ways that conventional production has yet to. Lithium South is evaluating three different unique DLE technologies, as well as the potential for conventional production as a benchmark.
6 Qualified Proven Team: Extremely strong technical lithium experience, with an office and laboratory located nearby in Salta, Argentina, backed by world-renowned technical consultant and qualified person Vijay Mehda, along with senior geologist/hydrologist Marcela Casini.
7 Staged & Work Completed: Two production wells have already been drilled and cased. An Environmental Impact Report is currently underway. TEM survey results confirm further resource expansion potential. The company has aggressively acquired nearby claims to secure water sources and a location of future plant and processing facilities.
Now that you’ve digested the fruits of our research, it’s time to follow up with some research of your own.
NOW IS THE PERFECT TIME for smart investors to seriously follow the rapidly Lithium South Development (TSXV:LIS) (OTC:LISMF) story.
LIS is actively working to expand its already impressive resource in one of the world’s most sought after lithium jurisdictions, and is at the forefront of proving the viability of potentially industry changing DLE technology.
So, do your own due diligence, and don’t forget to click here to sign up for the Lithium South’s newsletter to make sure you don’t miss out on any news and milestones along the way to becoming the next darling of the lithium sector.
USA News Group
Editorial Staff
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Lithium South Development Corporation advertising and digital media from the company directly. There may be 3rd parties who may have shares of Lithium South Development Corporation, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Lithium South Development Corporation which were purchased in the open market, and reserve the right to buy and sell, and will buy and sell shares Lithium South Development Corporation at any time without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, we currently own shares of Lithium South Development Corporation and will buy and sell shares of the company in the open market, or through private placements, and/or other investment vehicles.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
USA News Group – Bitcoin (BTC) or Dogecoin (DOGE)? Which cryptocurrency will prevail and be embraced as the “currency of the internet and the people”? This question recently caused a brief but intense spat between a pair of Silicon Valley giants: Jack Dorsey, the co-founder of Twitter Inc. (NYSE:TWTR) and CEO of Block, Inc. (NYSE:SQ), and Vlad Tenev, CEO of Robinhood Markets, Inc. (NASDAQ:HOOD). Dogecoin has surged over the last two years in popularity and mindshare, to knock at the door of #2 cryptocurrency Ethereum. Soon after SpaceX CEO Elon Musk began making a serious play to acquire Twitter, DOGE prices shifted, causing Forbes to infer Dogecoin as a ‘Proxy for Twitter Stock’. As the debate rages onward, cryptomining specialists have benefitted such as Neptune Digital Assets Corp. (TSXV:NDA) (OTC:NPPTF), and Hello Pal International Inc. (CSE:HP) (OTC:HLLPF) which recently combine its crypto mining capabilities with its successful video livestreaming and matching businesses.
The newly launched DogeChat and DoggeChat apps from Hello Pal International Inc. (CSE:HP) (OTC:HLLPF) are set to allow users to match and/or video chat with other individual users from across the globe. When a connection is made, 1-on-1 video calls will generate revenues on a per-minute basis, paid for by the call’s initiator to the call’s receiver—now with the option to pay in crypto, which Hello Pal also is in the business of mining.
“We expect these apps to be very synergistic to our current livestreaming and crypto-mining operations,” said KL Wong, Founder and Chairman of Hello Pal. “They will not only bring into our existing ecosystem new users from different markets, but also allow us to start implementing our goal to make the use of cryptocurrency more widespread in the world, starting with our users.”
Where DogeChat payments will be made in DOGE and other cryptocurrencies, DoggeChat payments will be in fiat currencies made through Apple Pay and Google Pay. First to launch will be DoggeChat, before DogeChat is launched at a later date, using the same user pool. However,
regular users of DoggeChat will be incentivized in various ways to switch to DogeChat.
Hello Pal made history back in May 2021 by becoming the market’s first listed company focused on DOGE mining. Reaction to the announcement was swift, causing a surge in traffic so heavy it temporarily caused a website outage.
Both the DoggeChat and DogeChat launches represent Hello Pal’s market expansion into the burgeoning 1-on-1 video chatting space, as well as its foray into the North American market.
More significantly, it also represents their plan to start incorporating cryptocurrency payments into their social and livestreaming businesses.
Meanwhile, in terms of revenues from cryptocurrency mining, Hello Pal and Neptune Digital Assets Corp. (TSXV:NDA) (OTC:NPPTF) have similar market caps and both recently reported strong revenues from their operations.
Back in FebruaryHello Pal, was still transitioning its mining operations out of China, while increasing its mining assets and improving upon its crypto-mining operations infrastructure.
“Our livestreaming operations continue to deliver strong operating results as we continue to diversify outside of China,” said KL Wong. “With our focus on cryptocurrency mining operations, we anticipate that revenue and profit will continue in an upward trend.”
Whereas Hello Pal focuses its mining on DOGE, Neptune Digital Assets focuses more on BTC.
During Q1 2022, Neptune Digital Assets set a fiscal quarter record with C$13 million in comprehensive income, derived from not only mining, but staking and DeFi earnings and crypto fund investment as well.
“We hope to see the general crypto space grow as we move forward into 2022 and our Bitcoin mining, staking, and DeFi earnings to increase accordingly as we grow those arms of the business,” stated Cale Moodie, Neptune CEO. “We anticipate another 53 petahash of mining capacity to come online in Q2 thus growing our Bitcoin earnings. We are staying true to our diversified model and will continue to manage our risk while maximizing our earnings across the board.”
Which brings things back to the feud on Twitter Inc. (NYSE:TWTR) between Jack Dorsey CEO of Block, Inc. (NYSE:SQ), and Vlad Tenev, CEO of Robinhood Markets, Inc. (NASDAQ:HOOD).
Tenev began the conversation, positing in a Tweet: “Can #Doge truly be the future currency of the internet and the people? As we added the ability to send/receive DOGE on Robinhood, I’ve been thinking about what that would take.”
He went on to claim that Dogecoin could outperform Visa with respect to transaction speedsd, and that the crypto coin’s transaction speeds would eventually surpass the credit card giant’s current 65,000 transactions per second (TPS) capabilities.
“Doge would need to be able to significantly outperform Visa, which entails increasing throughput by at least 10000x,” wrote Tenev.
While there was plenty of support for Tenev’s musings, others on Twitter began to push back, including the social media platform’s co-founder and former CEO, Jack Dorsey, with pointed barbs that reflected some of the audience’s skepticism due to Robinhood’s more recent dependence on DOGE for its revenue and profits.
Dorsey responded to Tenev’s final tweet with a snarky, “u thirsty?”, to which Tenev fired back with “U mad?”
Not leaving it alone, Dorsey replied, “nah I’m good I don’t use Robinhood.”
Tenev cleverly got the final word, capitalizing on an opportunity for Robinhood plug, replying “you would pay less for your bitcoin if you did!”
Twitter Inc. (NYSE:TWTR) itself isn’t playing a spectator in the cryptocurrency scene, by working with online payments firm Stripe to become the first company to integrate a new payment method that makes payouts in crypto through the stablecoin USDC. Beginning right away, Twitter will let a certain number of creators receive their earnings from its paid Ticketed Spaces and Super Follows features in USDC.
Block Inc. (NYSE:SQ) CEO Dorsey has gone all in on Bitcoin, with his departure from Twitter leading Bloomberg’s Businessweek to claim his intention is become Bitcoin’s “Spiritual Leader.”
His company is set to work with cryptocurrency storage company Blockstream to construct a solar-powered BTC mining facility in Texas. The 3.8-megawatt (MW) facility will be outfitted with Tesla’s solar photovoltaic cell array and a 12 MWh Megapack.
As some were criticizing Tenev for being biased in his support of DOGE, the seemingly critical anti-Dogecoin and anti-Ethereum statements of Dorsey while being hyper-focused on BTC could also be seen as biased.
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Hello Pal International Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Hello Pal International Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Hello Pal International Inc. which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Hello Pal International Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Rare Diseases and Orphan Drugs shows that much of what we now know about common diseases has been achieved by studying rare diseases. It proposes that future advances in the prevention, diagnosis, and treatment of common diseases will come as a consequence of our accelerating progress in the field of rare diseases.
Understanding the complex steps in the development of common diseases, such as cancer, cardiovascular disease, and metabolic diseases, has proven a difficult problem. Rare diseases, however, are often caused by aberrations of a single gene. In rare diseases, we may study how specific genetic defects can trigger a series of events that lead to the expression of a particular disease. Often, the disease process manifested in a certain rare disease is strikingly similar to the disease process observed in a common disease.
This work ties the lessons learned about rare diseases to our understanding of common ones. Chapters covering the number of common diseases are minimized, while rare diseases are introduced as single diseases or as members of diseases classes. After reading this book, readers will appreciate how further research into the rare diseases may lead to new methods for preventing, diagnosing, and treating all diseases, rare or common.
For more information on this sector, please enter your email address in the box provided on this page and we will be happy to send you information as it becomes available to us
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) – the “Berkshire Hathaway of Tech-Enabled Healthcare” – Could Be the Next Giant Healthtech Conglomerate
When Warren Buffett first bought Berkshire Hathaway in 1962, it was nothing more than a struggling textile mill.
Today, it is a $600+ billion conglomerate juggernaut,[1] owning businesses ranging from insurance and utilities to railroads and chemicals.
Berkshire’s journey from humble mill to giant conglomerate is incredible. Unfortunately,the Berkshire of today is far too huge to generate the kind of returns that can truly change individual investors’ lives.
It has become “just another” blue-chip stock – and one that some think has come in late or missed the boat entirely on many disruptive technologies.
But there’s one fast-growing company that is in a position to have a profound impact on investor returns. It has learned from companies like Berkshire, incorporating what is arguably Berkshire’s greatest strength – its operating structure…
Where the holding company acts like a giant institutional investor, seeking out operating companies to invest in that can generate the highest ROI…
And letting these subsidiaries operate independently with minimal interference, while the holding company does what it does best – efficiently allocating capital.
But this company has learned from Berkshire’s mistakes – and even improved on its operating model.
What’s this company, you may ask? None other than WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF).
WELL firmly understands that technology is the future, and is committed to fully capitalizing on this wave…
Plus, it is only focused on acquiring companies within the multi-trillion-dollar healthcare sector, which allows it to generate powerful value-boosting synergies among its acquisitions (something that Berkshire does not focus on due to its divergent scope of investments).
And its biggest investor? Multi-billionaire Sir Li Ka-Shing – ranked the 43rd richest person in the world with a networth of $34.6 billion[2] and nicknamed “Superman Li” for his business prowess.
That’s why it could be no exaggeration to say that…
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is the “Berkshire Hathaway of Tech-Enabled Healthcare” – and the Company Could Be on the Cusp of a Major Growth Spurt
Much like Berkshire started in the textile business, WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)began as a humble medical clinic operator.
And in just a few short years, it has grown to become a billion-dollar omni-channel company with 7 different healthcare business lines, including health clinics, electronic medical records (EMR), telehealth, digital apps, billing and cybersecurity…
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)owns 27 primary healthcare clinics in North America – the largest network in BC and the third-largest in Canada…
It operates a multi-national EMR business including its OSCAR Pro EMR asset, which is the third-largest EMR service provider in Canada (a $26.1 billion global market that’s expected to hit $39.4 billion within 5 years[3])…
Its leading Canadian telehealth service conducts thousands of patient visits daily using its software.
All this was done through disciplined and accretive acquisitions, with shareholder dilution always being carefully managed.
And although its stock has shot up by 313% since 2020[4]…
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Remains Substantially Undervalued Compared to Its Peers…
Even though…
Its EBITDA already turned positive in the fourth quarter of 2020, with a 53% revenue growth for the year…
It’s just completed a major acquisition that would add approximately C$175 million in revenues and C$72 million in EBITDA to its earnings…
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)has 10 signed letters of intent that could add another C$100+ million to its annual revenues by the end of 2021…
And it’s planning a US IPO by the end of the year.
*Share Price and Market cap taken from Yahoo Finance on April 14, 2021
**This revenue figure is inclusive of the company’s recent (completed) acquisition of CRH Medical, estimated to be on a runrate basis based on consensus estimates.
When compared to others in the industry, WELL’s peer group trades at 10x to 20x revenue multiples, while WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)trades at an EV to sales multiple of just 5x.
This means that although the company is far from being a risky early-stage startup company…
It still has plenty of room to grow, particularly as it continues to ramp up its acquisitions…
Which could place WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)in the perfect risk-reward “sweet spot” for investors…
But this window of opportunity may be closing, as analysts expect its valuations to increase to a range more in line with its peers once the US IPO happens.
8 Reasons WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Could Be the Healthtech Play of the Future
Multi-channel Capability: With healthcare clinics, EMR services, telehealth offerings, digital apps, and more, the company is truly multi-channel, multi-service, and omni-channel in nature – able to offer both in-person and digital solutions to patients, healthcare professionals, and clinics. This allows the company to not only benefit from all aspects of the healthcare industry, but also provides defensive diversification qualities.
Track Record of Accretive Acquisitions: WELL Health(TSX: WELL – OTC: WLYYF)has a solid track record of buying profit-generating companies that can continually add value to its bottom line – all with carefully-controlled shareholder dilution. For instance, due to its acquisition of CRH Health, it is expected to experience 120% accretion to revenue and 800% accretion to EBITDA on a per share basis. However, shareholder dilution was limited to a mere 17%.
Value-Boosting Synergies Within Business Lines: Post-acquisition, the company also has multiple opportunities to add further value to its acquisitions via internal synergies within its business lines. For example, the company is planning to cross-sell its digital services to CRH Health’s network of over 3,000 Gastroenterologist physicians, which are currently generally digitally underserved.
Rapid Acquisition and Growth Strategy: Within the first three months of 2021 alone, WELL Health(TSX: WELL – OTC: WLYYF)has already announced six acquisitions – one of which is a major US player. The company also has another 10 signed letters of intent that could add C$100+ million to annual revenues. Further, recent acquisition CRH Medical is itself a proven M&A player with a track record of 32 acquisitions and over 500 active deal targets.
Strong Investor Base: Multi-billionaire Li Ka-shing is a strategic investor in the company, among other institutional investors such as Manulife, CI Investments, Sentry Investments, Iconiq Capital, Fiera Capital, and the PenderFund Capital. Li Ka-shing and his partner personally led a C$302.5 million equity raise for the CRH Medical acquisition with their own investment of C$100M at an unprecedented 25% premium to market (based on the 5 day VWAP before announcement) – the additional C$202.5M came from the other institutional investors at the same premium.
Well Funded With a Strong Balance Sheet: WELL Health(TSX: WELL – OTC: WLYYF) boasts C$87 million in cash as at end-2020 – with zero debt. Only recently did the company take on some debt as part of the CRH Medical acquisition. However, even said debt facility was obtained at highly cost-effective rates of between 1.5% to 3.25% depending on leverage ratios.
Future US IPO Listing: The company’s targeted US IPO in late 2021 will provide an additional cash infusion that it can use to turbocharge its acquisition strategy. Further, analysts also expect a US listing to push the company’s valuation upwards to a level more in line with its peers. WELL is grossly undervalued when compared against US comps.
Proven Management Team with Skin in the Game: WELL Health’s(TSX: WELL – OTC: WLYYF)management team are all veterans of Tio Networks, a multichannel bill payment processor that was acquired by PayPal for C$304 million in 2017.[13] They’re also all heavily invested in the company, with the CEO personally investing approximately C$6 million in company stock – and never having sold a single share or taken a dollar of cash as salary thus far.
With all these factors in its favor, WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)is…
Well-Positioned to Capitalize on the Massive Digital Transformation Wave Sweeping Through the Healthcare Industry
The health crisis has accelerated digital transformation in all areas, and healthcare is no exception.
For proof of this, look no further than telehealth.
In 2019, research firm Fortune Business Insights[14] estimated the size of the global telehealth market at “only” $61.4 billion…
By 2027, it expects that number to hit $559.5 billion, a compound annual growth rate of over 25%. That’s an astounding growth rate that shows just how big the digital transformation opportunity in healthcare is.
Because although telehealth could soon be worth hundreds of billions, it’s still just one part of the larger digital transformation opportunity…
And WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is strongly positioned to benefit from all aspects of this opportunity thanks to its multi-pronged approach to healthcare tech.
Beyond that, each new acquisition generates incremental opportunities for its existing subsidiaries, meaning the whole is truly greater than the sum of its parts.
Just like how…
WELL’s (TSX: WELL – OTC: WLYYF) Recent Acquisition of CRH Medical Could Soon Turn the Company into a North American Digital Health Powerhouse
CRH Medical is a major player in the US gastroenterology (GI) market, with 72 GI ambulatory service centers, 411 GI providers, and over 3,200 GI providers trained to use its products and services.
This alone is already enough to generate over C$175 million in annual revenues, with an incredible 26% free cash flow margin.
Yet as investment bank Eight Capital said in a recent research report[15]…
“CRH’s +72 clinic footprint remains digitally underpenetrated, providing a greenfield opportunity for cross-sell. We expect the introduction of a telehealth offering to optimize consumer reach and patient in- and outflow. Plans for the development of a GI-focused app will expand CRH’s reach, increase traffic to clinics, and push product sales.”
In other words, the additional C$175+ million in revenues – not to mention C$72 million in EBITDA and C$45 million in free cash flow – is just the beginning of CRH Medical’s potential…
Because once WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)integrates its digital health offerings with CRH Medical, it could be well on its way toward becoming the next North American digital health powerhouse.
Not to mention that CRH Medical is itself planning to swiftly expand its network and offerings through acquisitions (it has 500 active deal targets in its pipeline)…
Meaning the cross-sell synergies will have a powerful multiplier effect even years down the line.
The best part? All this was done with only a 17% shareholder dilution for Well Health’s (TSX: WELL – OTC: WLYYF)shareholders.
It’s all thanks to the support of the company’s strong investor base, who were all too happy to put in their money at a 25% market premium (investors in this round included every member of its board and most of its management team, including the CEO and CFO of the company)…
Because they realized that the CRH Medical acquisition puts WELL Health in a great position for a US listing…
A powerful catalyst that is widely expected to drive its valuations up toward the ranges offered by its peers.
But while much focus has been (rightfully) given toward the company’s CRH Medical acquisition…
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) Has Been Steadily Conquering the Digital Healthcare Industry, One Acquisition at a Time
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is a diversified healthtech conglomerate that is rapidly making inroads in all aspects of digital health…
Just look at all of its businesses that it already has:
Like the $26.1 billion EMR market, an industry that is quickly growing as clinics scramble to digitize…
Because EMR is the “enterprise backbone” of a clinic, a system that manages everything from the backend database to the frontend point of sale…
Meaning clinics are unlikely to be able to remain competitive in the modern healthcare market for long without an EMR system.
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) is already the third-largest player in Canada for EMR…
Its main EMR offering – OSCAR Pro – is also open source, giving it greater versatility compared to its competitors. It has been a market share taker in Canada because of its strong interoperability with a large community of third-party app developers.
The company is also quickly adding to its EMR business line with other acquisitions, such as IntraHealth, an enterprise class EMR vendor with customers in Canada, Australia and New Zealand.
Meanwhile, it’s also transitioning clinics owned by newly-acquired subsidiaries over to its EMR platform – showing just how easily the company can generate internal synergies.
Another example is its acquisition of Silicon Valley – and Y Combinator-backed – company Circle Medical.
WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)completed a majority stake investment in Circle Medical in November 2020.
Yet in the past four months, Circle Medical’s revenues have nearly doubled…
This highlights Well Health’s (TSX: WELL – OTC: WLYYF)specialty – strategically allocating capital to undervalued companies that are usually on the cusp of greater growth, which makes the company…
A Fast-Growing, Diversified, and Undervalued Healthtech Play With Multiple Catalysts on the Horizon
Investors looking to invest in the digital transformation that is happening in the trillion-dollar healthcare industry face a common dilemma…
The industry is so vast, with so many different sub-sectors (both B2B and B2C) that they may not even know where to start.
Even if they did know about the various sub-sectors, they would need to invest in many different companies to have a truly holistic and diversified exposure…
Or, they could choose to invest in the large multi-billion dollar health conglomerates – where most of the major returns have already been snatched up years ago by early investors.
WELL Health Technologies Corp. (TSX:WELL) could be the answer to that dilemma…
It offers investors:
Diversified exposure to the entire tech-enabled healthcare market with a single investment…
Strong near-term growth opportunities thanks to multiple catalysts on the horizon – such as its expansion into the US from its CRH Medical acquisition plus its planned US IPO, as well as its 10 pending signed LOIs…
Long-term value from disciplined and accretive acquisitions that also benefit from internal synergies…
All at a price that analysts consider substantially undervalued.
So, instead of spending all that time and effort untangling the complex web that is healthtech, just to find a company that may or may not pan out…
Why not look at a company whose sole specialty is finding undervalued profit-generating companies across the entire healthtech spectrum, and then consolidating and modernizing them to create even more value?
In other words, why not let WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF)do the work for you?
There’s a reason the company was recognized as a TSX Venture 50 company for three years in a row[16]…
Plus, its management team’s track record speaks for itself.
WELL Health Technologies Corp.’s (TSX: WELL – OTC: WLYYF) Has a Management Team Consisting of Nothing but Proven Veterans
Hamed Shahbazi – Chairman & CEO
With over 20 years as a technology-focused operator, Shahbazi has a razor-sharp understanding of the intricacies of identifying opportunities and generating value in the sector. He was the founder of TIO Networks, originally a kiosk solution provider before Shahbazi transitioned it into a multichannel payment solution provider specializing in bill payments and other financial services. As a result, the company was acquired by PayPal in 2017 for C$304 million.
Shahbazi has extensive experience in strategic mergers, acquisitions, and divestitures, both as an operator and board member, with more than a dozen successful transactions. He is also the Lead Independent Director for mediatech company BBTV Corp, as well as the owner and operator of Impactreneur Capital Corp, which has over a dozen investments in leading digital content, ehealth, insurtech, and other technology inspired companies.
Dr. Michael Frankel – Chief Medical Officer
Dr. Frankel has 29 years of experience as a general practitioner in the Lower Mainland, giving him a wealth of experience in the medical industry. But more than just being a doctor, Dr. Frankel is also a healthcare investor and businessman, owning and operating a portfolio of successful primary healthcare facilities. This gives him a deep understanding of what healthcare facilities are lacking and how they can be improved – a crucial piece of WELL Health’s (TSX:WELL) strategy.
Eva Fong, FCCA, CPA, CGA – Chief Financial Officer
As the VP in charge of corporate strategy and M&A at TIO Networks, Fong intimately understands the full lifecycle of M&A transactions, from prospecting to integration and regulatory compliance management.
Her 25 years of experience includes Fortune 500 public company management, M&A, corporate strategy development, risk and compliance, and finance and business shared services programs. She’s held senior leadership positions in various high-tech sectors including PayPal, TIO Networks, SAP, and 360networks, where she led business units and built best-in-class corporate culture.
Amir Javidan – Chief Operations Officer
In his over 15 years of experience as a technology and operations executive, Javidan has been involved in two successful exits. Most recently, he was the SVP of Operations for TIO Networks, overseeing its C$304 million buyout by PayPal. Before that, he was at Avigilon, an integrated cloud and AI-powered solutions company, where he helped scale the business from a “stealth mode” startup to a public company worth over C$1 billion. He also helped take its revenue to over C$100M in five years.
RECAP: 10 Reasons Investors Should Seriously Consider Adding WELL Health Technologies Corp. (TSX: WELL – OTC: WLYYF) to Their Portfolios
It is a multi-channel, multi-product healthtech conglomerate that has the capability to benefit from multiple areas of the industry
A proven track record of accretive acquisitions of profit-generating businesses – all with carefully controlled dilution
Internal synergies from cross-selling can further boost the value of its acquisitions
Rapid acquisition and growth strategy gives it strong potential in a lucrative industry
Significantly undervalued compared to its peers; for example, its peer group trades at 10x to 20x revenue multiples, while WELL trades at 5x EV to Sales multiple.
Planned US IPO listing is widely expected to bring its valuations to a range more in line with its peers
Strong investor base including multi-billionaire Li Ka Shing plus other institutional investors, all of whom have shown willingness to pump in capital to support acquisitions
Proven management team with skin in the game that have executed successful M&As and exits
Multiple business lines within the healthtech industry provides defensiveness plus a hybrid physical-virtual competitive moat
Already a significant player within multiple lucrative business lines (such as EMR and telehealth) but with plenty of room to grow remaining
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There are two types of healthcare companies that stand out as the biggest potential winners of 2021: companies that are able to produce a widely used vaccine or treatment for certain virus’, and resilient firms that held tough through the worst of 2020 and can benefit from a gradual return to normalcy.
Healthcare technology, commonly referred to as “healthtech,” refers to the use of technologies developed for the purpose of improving any and all aspects of the healthcare system. From telehealth to robotic-assisted surgery, our guide will walk you through what it is and how it’s being used.
Healthcare technology refers to any IT tools or software designed to boost hospital and administrative productivity, give new insights into medicines and treatments, or improve the overall quality of care provided. Today’s healthcare industry is a $2 trillion behemoth at a crossroads. Currently being weighed down by crushing costs and red tape, the industry is looking for ways to improve in nearly every imaginable area. That’s where healthtech comes in. Tech-infused tools are being integrated into every step of our healthcare experience to counteract two key trouble spots: quality and efficiency.
The way we purchase healthcare is becoming more accessible to a wider group of people through the insurance technology industry, sometimes called “insurtech.” Patient waiting times are declining and hospitals are more efficiently staffed thanks to artificial intelligence and predictive analytics. Even surgical procedures and recovery times are being reduced thanks to ultra-precise robots that assist in surgeries and make some procedures less evasive.
This is a very broad sector that can go in many directions, for more information on this sector please enter your email address in the box provided on this page and we will be more than happy to let you know when more information becomes available.
Gold gets plenty of attention, but the outlook for base metals like copper is also positive in 2021. RBC Capital Markets analysts raised their 2021 average price estimate from $3.25 to $3.50 a pound due to higher consumption estimates. They expect copper consumption to be higher this year due to indicators that the economy is strengthening.
In a recent report, analyst Sam Crittenden and his team said the backdrop for copper remains positive this year, while low inventories support higher prices. However, they expect the supply response throughout the year to be gradual from both mines and scrap. These factors could moderate the copper price.
Copper equities also remain well-positioned in 2021, and the RBC analysts are starting to see multiple expansion as investors become more interested in the sector.
They note that North American base metals stocks have traded at an average EV/EBITDA multiple of 5.8 times over the last decade. On the other hand, the TSX index trades at a multiple of 9.2 times. Currently, North American base metals stocks are trading at a multiple of 6.9 times, while the TSX is at a multiple of 12 times.
We are following a few promising copper companies, for more information please enter your email in the box provided.
