Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF) is Targeting the Fastest Growing Segment of the Online Casino Gaming Market

Over the last year, we’ve seen not only the utter decimation of revenues and activity within the doors of land-based casinos, but also a mass exodus of players towards online gaming to fulfil their desires.

People are still playing their favourite casino games… except now they no longer need to be in the casino to do it.

According to Martin Calesund, CEO of the +$22B company Evolution Gaming:

“(The) online evolution has just started.”

According to recent industry metrics, the global online gambling market is expected to reach more than US$92.9 billion in 2023—nearly double the ~US$52.9 billion it is currently. [1]

Back in June of 2020 (when the global health crisis was still in its earlier stages), Calesund added to this thought, boldly stating:

“In the future to come, I think 50-70% of casino will be online.” [2]

The shift has been swift and very significant, as online gambling thrived and land-based casinos struggled mightily through 2020 to today. Mobile gaming made significant strides in 2020, notching $79.5 billion, and accounting for a whopping 71% of all app revenues on both the Google Play and Apple App Store combined. [3]

In Atlantic City, all but one casino (which we’ll get to in a second), lost significant revenue. The biggest dropoff came for Harrah’s, which declined 46.8% over the year. [4]

Resorts, Caesars, Tropicana, Borgata, Hard Rock, and Ocean… ALL saw their revenues drop by double-digit percentages.

The one casino that emerged from the bunch was Golden Nugget—it saw its revenues increase nearly 10% over their 2019 numbers.

How did Golden Nugget beat the odds?

The answer is right there in the full name of the stock is Golden Nugget Online Gaming (NASDAQ:GNOG).

That’s right… Golden Nugget is focused on online casino and sports betting.

It wasn’t just in Atlantic City that the company took wins. When they released their Q3 earnings in late October, they showed that their Net revenue was up 92% year-over-year (YoY) to $25.9 million, while Operating income was also increased 92% YoY to $8.2 million.

Since prior to the COVID-19 lockdowns taking full effect, GNOG stock has gone from a low of $9.26 per share to a high of $26.24 in late December—a rise of 183% in just over 9 months. Market researchers have pegged the global online gambling market to grow from $53.7 billion in 2019 to +$95 billion by the end of 2025 at a CAGR of 13.2%. [5]

The industry can no longer afford to deny that Evolution Gaming’s Martin Calesund is right.

The online evolution has begun!

We’ve identified the best equipped provider of a proprietary market-ready and device-agnostic platform that’s perfectly designed to facilitate the transition of these massive casinos into the online age…

One that’s succeeded in developing not only one of the fastest, most-convenient ways to play, but has done so with the World’s ONLY Live-Dealer mobile app gaming experience with LIVE video streaming of their dealers from a studio in Las Vegas.

Meet Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF) an innovator focused on developing digital content for the iGaming market, through a mobile-first philosophy with live dealer technology.

Platinum Profile: Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF)

Playgon provides a multi-tenant gateway that allows online operators the ability to offer their customers innovative iGaming software solutions.

What makes Playgon’s platform most unique for players is its design and feel.

CEO Darcy Krogh recently stated: “We are bringing a very unique mobile live dealer product to the market. We anticipate our business will scale quickly once we receive the final approvals to service our customers.”

Not only does the company provide the World’s ONLY Live Dealer mobile-app experience, but it does so vertically, meaning that players can comfortably play one-handed.

It’s also VERY fast. As a core feature of the design the software was geared towards speed as an integral part of the extremely popular table games of baccarat, roulette and blackjack (NOTE: More on the game of baccarat below).

Through the Playgon platform, hands can be played extremely fast, with up to 8 tables playing at once on one screen.

AN ALLURING BUSINESS MODEL

Playgon’s current software platform involves Live Dealer Casino and E-Table games which through a seamless integration at the operator level allows customer access without having to share or compromise any sensitive customer data.

And the business model is ideal for garnering more and more clients to onboard the software.

This turnkey solution is FREE to incorporate into an established casino’s offerings. Playgon has very wisely made this available, with the upside coming through revenue percentages of player loss on every game played.

As players bounce between casino operators, they are still playing re-skinned Playgon games. By providing the software, Playgon spends next to nothing on marketing, while capitalizing on the upside from newly acquired players.

As a true business to business (B2B) digital content provider, Playgon’s products are ideal turn-key solutions for online casinos, sportsbook operators, land-based operators, media groups, and big database companies.

Its cutting-edge technology and operational best practices make Playgon the best possible partner for online casinos looking to the future. Playgon also employs a global strategy, uniquely positioning it to take advantage of the sizable market in Europe and Asia.

BOOSTING BACCARAT’S BANKROLL POTENTIAL

While the popularity of baccarat continues to grow in the west, it’s common knowledge within the industry that James Bond’s favourite card game is the most profitable casino card game on the planet. This is because in Asian markets, players mostly stay away from slot machines, while VIP baccarat accounts for roughly 70% of casino revenue shares, followed by mass-market baccarat. [6]

Today’s casino gaming market is steadily growing in Asia, with industry experts in the region estimating the Asian live casino market to be 10x the size of its European counterpart.

Playgon’s team knows this, and has wisely designed itself towards this trend— and has developed a way to unlock baccarat’s enormous potential—having the game played online.

Why? Because in a traditional casino setting, games such as Baccarat and Roulette are not scalable because they can only serve a fixed number of players at a time.

In contrast, the majority of games can support a limitless number of players betting at the same time, while bearing none of the other overhead costs a traditional casino would have to bear (i.e. free drinks to players, casino maintenance expense, etc.).

Under Playgon’s business model, the Live Dealer salary becomes a fixed cost which can be leveraged across hundreds of potential concurrent players instead of just a few players at a traditional casino table.

Given the speed at which hands of baccarat are played is already a significant bonus to casino profitability. Now when the hands are dealt, bets are handled, payouts are paid and all other actions are done electronically. It’s fast, smooth, and profitable.

With their ability to maintain a whopping 8 tables on one screen at the same time, brick-and-mortar casinos just can’t compete with the speed of play of the Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF) baccarat experience.

And baccarat is a game that’s VERY familiar to those within the company. Playgon Interactive Founder, Guido Ganschow wrote the first live dealer software used in Asia—leading software sales to over 200 different casinos, many of which still use the software today.

LIVE DEALER GAMING—LIVE FROM VEGASTM!

Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF) is looking to capitalize on the Live Dealer Casino market, which represented 30% of the total online casino gaming market in 2019—or $5 billion. [7]

The company’sscalability results in a far more attractive business model than any land-based casino can offer. By integrating augmented reality, tactically adjusting bonuses and payouts, and optimizing player- dealer communication, Playgon’s offering is more immersive than the experience at a brick & mortar casino.

The platform’s Live Casino offering brings the brick & mortar casino experience to a user’s phone, computer, or other streaming device. Contrary to typical digital casino games which feature no physical human interaction, Live Casino is 100% focused on seamless interaction between gamblers playing from all over the world.

Live Casino is the fastest growing segment within online casino, with an annual growth rate of 32% between 2014 and 2018 and is expected to reach $8 billion by 2023. [8]

Mobile online gaming continues to be a key factor in the development of the global iGaming market. Currently, over 70% of Live Dealer casino revenues stem from mobile devices.

Playgon’s Live Dealers are streamed live from a studio in Las Vegas—click here for an example video

Players can interact in real time with the dealers and other players in real time 24 hours a day, 7 days a week—all complimented by augmented reality that further enhances the experience.

And, due to the overwhelmingly positive feedback from Operators, Playgon has already increased the size of their Live from Vegas studio and doubled their table capacity.

Playgon is taking live-dealer casino games to the next level, bringing cutting-edge handheld features and functionality to the mobile generation of gambling enthusiasts who have long been demanding a world-class gambling experience on their phone.

THE PLAYGON ADVANTAGE

Playgon has centralized its offerings to be as convenient and comfortable as possible to play.

Its advantages are unique, including

One Touch + One handed play.

Currently over 70% of Live Dealer casino revenues stem from mobile devices. Based on analytics provided by ScientiaMobile.com [9], Playgon has determined its focus solely on a Portrait-first orientation of its platforms.

Mobile users predominantly prefer this orientation by significant numbers:

  • iOS = 97%
  • Android = 89%

In fact, according to ScientiaMobile, only 22% of people flip their smartphone from portrait to landscape orientation.

HD Streaming

The Playgon experience is driven by High Definition content from a streaming studio Live from Las Vegas—delivering the user a truly live feel and presence.

Mobile First Approach

Most legacy technology is developed for desktop and not for mobile, making it inefficient for user interface (UI) and user experience (UX).

Playgon’s platform has been designed with a mobile first approach in mind. This focus enhances player UI and UX.

But despite having portrait-orientated mobile as its flagship offering, Playgon’s platforms entail Progressive Web App (PWA) technology, that’s device agnostic, and designed to handle every type of user, every browser, and play on every device.

It’s this portability that works to Playgon’s advantage, in particular when it comes to the potential for white labeling the service to work in conjunction with competitors; Operators don’t need to displace other providers to integrate Playgon’s Live Dealer games.

Playgon offers proprietary technology, which is cloud based and built for robustness, scalability, speed of play, to derive the maximum bets per hour that equates to more revenue. Ultimately, the platform and games are designed to attract the most sought-after player; the discerning, higher-value, returning player to maximize life time value.

Management & Board with Exceptional Experience

Darcy Krogh – President, Chief Executive Officer & Director of Playgon Games Inc

Involved the space for 21 years, Krogh began in iGaming by co-founding Chartwell Technology in 1999, a publicly traded technology company specializing in the development of games, gaming systems, and entertainment content focused in Europe. He served as a Director and was a key member of the management team, staying on after the company was sold to Amaya in 2011 for CAD$25 million. He served as VP Business Development with Amaya until July 2015 where he assisted with the divestiture of its B2B asset portfolio for $150m to Nyx Gaming Group. In April 2016 he exited NYX Gaming to start up a new venture, Playgon Games Inc.

Guido Ganschow – President & Director of Playgon Interactive

Playgon Interactive Founder Ganschow has created real-time Live-Dealer platforms for 12+ years, having served as Co-Founder and Creative Director for a Macau Casino Consortium, and successfully creating and establishing Live Dealer platform businesses in Asia and Europe between 2008 and 2014. In 2016 he started Playgon Interactive with a mandate to develop a next generation live dealer product for real money and social applications. Over his career, Ganschow has executed commercial partnerships, sales, and integration of the Live-Dealer solutions with major global gaming brands including Ho Gaming Group, Chartwell Technology and Amaya Gaming Group.

James Penturn – Executive Chairman of the Board

Penturn has decades of experience providing strategic advice and leadership to management teams of knowledge based businesses to successfully market and sell their services, to structure and syndicate investments, and to raise equity and debt instruments. He is the President of SpectraLegal Limited in the United Kingdom, a specialist provider of funding solutions for law firms. He is also a member of the strategic advisory committee of Generation Three Family Partners, an international multifamily office that he co-founded. He has been a director of several Canadian publicly listed companies where he sat on executive, audit, governance and compensation committees. Penturn has over 30 years’ experience in merchant banking, real property and strategic advisory services as both a principal and agent.

Steve Baker – Chief Operating Officer

Baker is the former VP Operations for Shaw Communications and has been involved in a number of major growth products including video streaming and home entertainment. He has helped the company grow sales revenue from $300 million to $2.8 billion. He’s also overseen new product rollouts and M&A activities.

7 Key Highlights to Remember for Playgon Games Inc. (TSX.V:DEAL / OTC: PLGNF)

  1. Fully Developed Platform ready to launch with multiple tier-1 operators
  2. Mobile Driven Strategy drastically improves user experience relative to competitors’ desktop-first approach
  3. Diversified Risk through leveraging technology across real money and social gaming markets
  4. Live Dealer is the fastest-growing vertical within the online casino business
  5. Global Industry Growth in iGaming has been projected to increase at a yearly CAGR between 10-15%
  6. Experienced Management team in technology and iGaming industries
  7. Industry Convergence terrestrial gaming industry’s movement to digital has been super-charged with the recent global health crisis.

[1] https://www.msn.com/en-us/money/topstocks/golden-nugget-online-gaming-stock-may-see-2420-before-2440/ar-BB1d0pEu

[2] https://www.gamblinginsider.com/news/9366/evolution-gaming-ceo-50-70-of-casino-revenue-will-be-online-in-the-future

[3] https://www.tweaktown.com/news/77100/mobile-gaming-made-79-5-billion-in-2020-71-of-total-app-revenues/index.html

[4] https://journalstar.com/news/national/a-record-year-for-nj-sports-betting-casinos-not-so-much/article_498a2a09-3e72-53ae-9a39-931c99dcc9ca.html

[5] https://www.globenewswire.com/news-release/2020/04/13/2015187/0/en/The-Global-Online-Gambling-Market-is-expected-to-grow-from-USD-53-686-56-Million-in-2019-to-USD-95-023-13-Million-by-the-end-of-2025-at-a-Compound-Annual-Growth-Rate-CAGR-of-9-98.html

[6] https://www.quora.com/Which-game-does-a-casino-generate-the-most-revenue-from-in-terms-of-quarterly-or-annual-revenue-Im-not-asking-about-odds-per-game-I-have-heard-the-answer-is-slots?share=1

[7] Source: H2 Gaming Consultants (https://h2gc.com)

[8] Source: H2 Gaming Consultants (https://h2gc.com)

[9] https://www.scientiamobile.com/


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The global battery market size was valued at USD 108.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2027. The market growth is attributed to high demand from the automotive application. The automotive application includes rechargeable batteries used in non-rechargeable batteries and electric vehicles. The increasing popularity of consumer electronics on a global scale is projected to result in the usage of the lithium-ion battery as a product type over the forecast period. High demand for portable electronics, including LCD displays, smartphones, tablets, and wearable devices such as fitness bands, is boosting the market growth. The market is expected to observe substantial growth on account of technological advancements in terms of enhanced efficiency, cost-effectiveness, and product innovation. Strict emission norms by the government authorities of developed countries, such as the United States and the United Kingdom, coupled with growing attention towards fuel efficiency, are expected to drive battery demand.

.

The U.S. battery market size

The U.S. battery market size was valued at USD 10.49 billion in 2019. The U.S. government has been cheering stakeholders for both renewable industry and Electric Vehicles (EVs), resulting in an improved demand for battery energy storage systems (BESS), mainly led by Li-ion batteries. The adoption of EVs is rising at a high rate across the country. The U.S. is one of the leading countries in global electric vehicle sales, along with other countries such as Canada, which has already begun transforming its transportation infrastructure for electric vehicles.

Decreasing fossil fuel reserves, along with promising government initiatives and high CO2 emissions, are expected to propel market growth in the next few years. Key non-rechargeable batteries are extensively used in children’s toys, light beacons, remote controls, watches, and electronic keys. These are expected to observe a loss of stake to rechargeable batteries on account of efficiency and enhanced lifespan.

Developing markets of Africa and the Asia Pacific are expected to boost battery demand in electric bicycle applications and storage applications such as the leveling of load in renewable sources of energy like the wind and solar. Growing aircraft and automobile manufacturing in developing nations of APAC, including China and India, is expected to provide enormous potential for market growth.

Growing technological advancements in battery technologies have amplified the usage of various battery-operated equipment across the world. Hybrid Electric Vehicles (HEV) are equipped with the countless features that consume a significant amount of battery power. These features include a GPS navigation system, power windows, display that give information about the battery charge level, and air-conditioning systems.

While the announcement of a COVID-19 vaccine and its disbursement at the end of 2020 was certainly a light at the end of the tunnel for the public and the embattled health care industry, hospitals and health care systems know the journey to recovery is far from over. Communities continue to see virus surges and hospitals face capacity concerns. Health care organizations must take a realistic look toward the future and begin preparing for what could be several challenging months before the pandemic’s impact is behind us. From addressing patient care and pricing needs to understanding regulatory challenges and new investment and acquisition opportunities, 2021 could be a year of fits and starts. Those organizations that plan for change and remain nimble will lead the way.

Is there a light at the end of the tunnel?

The health care industry’s response to COVID 19 has been one of resilience, persistence and commitment, especially by front-line caregivers. The pandemic has significantly shifted industry trends and accelerated the pace of change. As a result, leadership is being forced to reevaluate strategic plans to determine and evaluate how best to deliver care going forward.

Kaufman Hall’s December 2020 National Hospital Flash Report indicates that operationally, and financially, November was a challenging month for hospitals and health systems nationwide. Margins and volumes fell, revenues flattened, and expenses rose as states moved to retighten social distancing guidelines. Margins have been down consistently since the start of the pandemic, but have fluctuated from month to month. Even with mass vaccine distribution on the horizon, the report predicts that “October’s downturn likely will continue as COVID-19 rates rise throughout the fall and winter. Hospital and health system leaders are bracing for difficult months ahead, as the combined forces of the pandemic and seasonal flu drive many individuals, and local and state governments to recommit to stricter preventive measures, causing many to delay nonurgent procedures and outpatient care. The result will exacerbate volume declines and could further destabilize hospitals financially, with a potential return to the significant losses seen in March and April.”

To date, Department of Health and Human Services (HHS) has distributed approximately $109 billion of the $175 billion allocated to the Provider Relief Fund (CARES Act) as of mid-November, according to data released by the department. In an effort to provide additional relief, Congress voted, in December, to appropriate additional dollars to the provider relief package and changed the rules (yet again) with respect to how lost revenue is recognized.

Understanding the financial reporting and compliance requirements associated with CARES funding will continue to be important in 2021.

While it is unclear what impact and lasting influence the pandemic will have on delivery of care from a financial perspective, one thing is certain, telemedicine is not going away and has arguably had the most profound impact to the health care industry in 2020. With claims up 3,000% year-to-date over the same period the prior year, it is clear that continued investment in telemedicine and related technology will be important.

Health Catalyst reports that with the shift to telehealth, providers are entering a new business landscape as COVID-19 has broken down barriers between traditional providers and more modern telehealth and disruptive care delivery companies. In the article titled, Six Strategies to Navigate COVID-19 Financial Recovery for Health Systems, Health Catalyst reports that health care’s new competitors fall into three main buckets:

  1. Telehealth-only providers: Companies like MDLive and Teladoc use real physicians and offer a variety of specialties and focus a significant portion of their business on working with insurance providers and self-funded health plans to provide subscriptions.
  2. Direct primary care: The direct primary care companies include Go Forward, Crossover Health and One Medical. Go Forward is similar to a modern subscription concierge practice. Crossover Health partners with employers like Apple, Microsoft and Amazon to deliver care directly to employees. One Medical is a modern concierge practice that charges an annual fee and bills fee for service.
  3. Large corporations: Amazon, Walmart and CVS Health are entering the health care space. Amazon offers a virtual care program for their employees as well as in-home deliveries and more. They announced a partnership with Crossover Health in July to pilot employee health clinics near large centers. Walmart has opened care clinics and a virtual care system and CVS continues to build their hubs.

“Teledoc, Doctor on Demand, Go Forward and Crossover Health have business models that overlook coding, CPT codes and modifiers, and other procedures traditional organizations must follow … Amazon, Walmart and CVS Health have traditional, straightforward pricing and are redirecting care away from the traditional system into their own care delivery system,” according to the article.

As large corporations and other providers increase competition for patients, they will compete with traditional provider organizations for patients. According to a survey, 79% of primary care physicians have experienced some form of burnout and four out of five employed physicians say their health systems employers are not doing anything to combat it. With a loss of clinicians, comes loss of revenue. The disruptive care delivery companies are introducing new models of care that appeals to clinicians because they “offer less hassle,” with no coding and documenting for quality measures and the like. There’s often less stress due to lower patient volumes, and with a lot of the concierge practices and even telehealth, clinicians can somewhat choose how much volume they want, as well as more flexibility.

The pandemic is not over, and no one can anticipate what the next 12 to 24 months will bring and how it will affect health care providers. Leadership and front-line caregivers will need to continue to be resilient, persistent and quick to respond.

PRICE TRANSPARENCY

Price transparency: Why this, why now?

On Nov. 15, 2019, Centers for Medicare and Medicaid Services finalized rules requiring all hospitals to make publicly available and produce annually a machine-readable file of standard charges that includes gross charges, negotiated charges, a self-pay walk-in rate, and minimum and maximum negotiated charge for all services. In addition, CMS defined a list of 300 services whose discounted cash prices, payer-specific negotiated charges, and de-identified minimum and maximum negotiated charges must be made publicly available in a searchable, consumer-friendly format.

CMS will be monitoring compliance with methods that include evaluation of complaints made by individuals or entities, review of analysis of noncompliance by individuals or entities, and audits of hospitals’ websites. If a hospital is noncompliant, CMS may take steps ranging from a written warning notice to imposition of penalties up to $300 per day and publicizing it.

In an era of rising health care costs and diverse consumer buying preferences, the need for price transparency has taken on increasing importance.

There are many factors driving this demand with expenditures being one of them. U.S. health care expenditures and rates of inflation continue to lead the world and dominate federal expenditures. U.S. health care spending grew 4% to $3.8 trillion in 2019, which equates to $11,582 per person, according to an analysis by CMS’ Office of the Actuary released Dec. 16, 2020. This compares to 4.7% growth in 2018 and is similar to industry averages of 4.5% annual rates. The Society for Human Resource Management (SHRM) reports that “large employers project that their health benefits costs will rise 5.3% in 2021, although COVID-19 expenses are fueling uncertainty about overall expenses. The group’s 2021 Large Employers’ Health Strategy and Plan Design Survey was conducted in May and June 2020, and it captured responses from 122 large employers offering coverage to more than 9.2 million employees and dependents. Seventy-seven percent of the respondents each has more than 10,000 employees.”

SHRM reports that premiums and employees’ out-of-pocket costs are estimated to reach $14,769 per employee, up $197 from 2019. Total costs are projected to rise to an average of just over $15,500 in 2021. The pricing transparency rules are meant to provide patients the information they need to make educated care decisions and reduce cost. President Donald Trump, whose administration proposed the rules, is quoted as saying, “We believe the American people have a right to know the price of services before they go to visit a doctor.”

The American Hospital Association, Association of American Medical Colleges, Children’s Hospital Association and Federation of American Hospitals have issued statements on behalf of hospital systems indicating that they believe these rules will increase confusion because they do not achieve the goal of providing patients with out-of-pocket cost information, accelerates anticompetitive behavior among health insurers, and stymies innovation in value-based care delivery models.

While the pricing transparency rules may be a step in the right direction, we remain skeptical that these rules alone will enable patients to know the prices of services before receiving treatment. Pricing in the health care ecosystem will likely remain opaque until we have greater data interoperability between payers, providers and patients.

According to an article published by Healthcare Financial Management Association (HFMA), written by Kevin Shears and Chris Sukenik, the new rules and general market trends have six important implications for providers:

  1. Increased pricing visibility will expose substantial price variations among providers. This creates a need for hospitals and health systems to focus on defining and communicating their consumer value proposition. News stories will likely present providers in a negative light across major metro markets. Health systems will need to focus on sharpening and delivering on their value propositions for consumers, including individuals and employers.
  2. Health systems will need to deploy strategic pricing to maintain and strengthen their market
    position.
     Health systems will have to develop a more nuanced pricing strategy to address the issue of significant price variability among providers in their area and ensure continued success in an increasingly value-focused market.
  3. Providers will experience unit rate compression, and most of this rate movement will be price
    declines
    . With the veil of negotiated rates lifted, health plans will be able to show how their payment rates compare with those of competing health plans in the market. As a result, health systems with rates above the market average, will be under pressure to accept lower prices during negotiations and will likely experience unit rate compression.
  4. Providers should prepare for expanded efforts to implement reference pricing. Given the impact of COVID-19 on the economy, employers will grow increasingly willing to pursue reference pricing strategies as part of business recovery plans to control health care costs.
  5. Highly profitable commercial volume and market share will shift, likely from higher-priced
    organizations to lower-priced ones.
     With commercial lives shrinking as a share of population in most markets nationally, largely because of the COVID-19 crisis, the competition for commercial lives has become more intense. Market shifts in commercial volume from higher-priced to lower-priced health systems will deteriorate the financial performance of health systems on the wrong side of the volume shifts.
  6. Centers of excellence strategies will become an important vector for volume growth. Publicly available pricing data will accelerate the development and adoption of COE programs. The organizations that win with COE strategies will likely do so by engaging clinical leadership to quickly gain experience in developing bundled payments, developing the foundational cost and quality analytics to demonstrate and communicate results, aligning benefit design with the COE program, and cultivating strong business relationships with leading employers and health plans.

These new rules have significant and far-reaching implications for all health care systems, and after initial implementation, ongoing monitoring and analysis of these six areas will continue to be critical as organizations evaluate and make decisions about their delivery models and related pricing.

DEAL FLOW

Solid health care provider deal flow will persist as healthtech grows

2020 has been a solid year for health care services investment from both financial buyers, e.g., private equity, and strategic or corporate buyers. Despite the global pandemic putting a halt to most deal flow during the summer, 2020 capped off a 10-year run, post-global financial crisis that saw $822 billion invested into health care service providers across 11,054 deals, according to PitchBook data. Private equity-backed deals accounted for 28% of dollars invested ($231 billion), and 48% of total deal volume (5,355 deals). Corporate deal activity, such as CVS acquiring Aetna, accounted for the balance.

Since the end of the global financial crisis, private equity’s deal activity within health care service providers has increased in total, and private equity’s proportion of deal flow relative to corporate activity has increased from approximately 40% to 60% over time.

We expect private equity investors will continue to show moderate growth in capital deployed and strong growth in deal count in the near term.

Consolidation has led many private equity investors to move downstream and evaluate smaller deals as they search for opportunities to bring synergies and value to more providers. Particularly in the aftermath of the COVID-19-related public health emergency, many independent providers experienced financially lean periods and have become motivated sellers.

The pandemic also pulled forward interest in health care technology as millions of patients and thousands of physicians used virtual health services for the first time. So while the opportunity for investment in physical service providers will eventually decline as the sector consolidates, the door will open to health care technology investment.

Historically, health care has underinvested in (nonmedical) innovation relative to other sectors, particularly financial services, which is also highly regulated. Health care venture capital and corporate mergers and acquisitions investment in health tech post-global financial crisis represented 6% of annual sector revenue compared to the 62% the financial services sector had similarly invested in fintech.

Patients are demanding the same customized, on-demand experience for their health care that they receive in most other aspects of their lives. Companies and investors that can deliver that experience will be positioned to capture significant long-term tailwinds.

As of this writing, we are uncertain how the regulatory environment may change with the Biden administration. Vice President Kamala Harris and incoming Health and Human Services Secretary Xavier Becerra have histories of health care mergers and acquisitions scrutiny during their separate tenures as attorneys general of California. Time will tell what effect the administration may have on the overall health care M&A environment.

REGULATORY

Legislative and regulatory outlook for health care

Health care has long been an industry heavily affected by legislation and regulation. As we look forward to the first quarter of 2021 and beyond, we continue to expect that to be true. In 2020, the industry saw nearly $200 billion in stimulus payments to help provide some relief from the financial effects of the pandemic. However, with the speed of the rollout, it did present challenges to many of our clients when determining how to meet the terms and conditions of the Provider Relief Fund grant. With the passage of the Consolidated Appropriations Act, 2021, some of those challenges subsided.

What did the Consolidated Appropriations Act, 2021 (the Act) do and how will it affect 2021 for the health care ecosystem? From a challenges perspective the Act mainly provided two things: one, the Act, yet again, changed the calculation of “lost revenue;” however, in this round the changes are largely beneficial to allow for an actual budget calculation rather than a strict year over year methodology. Two, it provided an opportunity for providers that are parent organizations with subsidiaries that received targeted distributions to allocate those distributions to other eligible health care providers within the organization. The Act also provided for many of what is referred to as the “Medicare extenders.” An example of this would be eliminating the Disproportionate Share Hospital cuts.

For many recipients of the Provider Relief Funds, the change to the determination of lost revenue and the flexibility to allocate targeted distributions as well as the Medicare extenders will allow for them to enter 2021 with a bit more financial certainty. Many providers found themselves in a predicament when the calculation of lost revenue was defined for calendar year 2019 versus calendar year 2020. As shown below, through November 2020, many providers had growth in revenues rather than reductions. Many factors contributed to growth in 2020 by providers. However, despite the growth, the providers were not growing as fast as they had budgeted, which then provided profitability concerns as the budgeted revenues drove decisions around expenditures, many of which were fixed.

As shown in the chart, while the average provider grew revenue year over year (adjusted for Provider Relief Funding), they experienced a shortfall relative to the budget of 2.3%. Given the operational leverage typically present in providers, which was exacerbated by prohibitions on nonemergent or elective procedures, this caused expenses per adjusted discharge to exceed budget by 15.9% on average.

In addition to the stability provided by the Provider Relief Fund, many health care providers with large investment balances saw a year of growth within their investment portfolios as well as increased philanthropic activities. With the stability and more financial certainty, we expect most health care providers to continue with the majority of their planned expenditures.

The $1.4 trillion government funding bill, which was passed alongside the Act, also included legislation aimed to protect patients from so-called “surprise billing” for emergency services and other instances in which a patient is unknowingly treated by an out-of-network provider. The “No Surprises Act” would cap patients’ out-of-pocket responsibility for emergency care to what they would pay for in-network services. Providers are also unable to bill out of network for planned procedures unless the patient gives explicit consent. Billing disputes for covered procedures would be handled in arbitration. One key change is the No Surprises Act forbids arbiters to consider Medicare and Medicaid rates or the provider’s billed charges when ruling for the amount the insurer should pay the provider. The patient cannot pay more than the in-network rate and is not involved in the arbitration process.

The No Surprises Act will likely reduce total patient responsibility for care and may reduce total revenues for certain providers. Payers will not be able to reference the generally low rates of Medicare or Medicaid in arbitration, but nor will they have to disclose pharmacy benefit manager relationships and rebate structures, which previously proposed bills called for. It remains to be seen whether this legislation will fundamentally change how care is provided and the viability of certain provider business models, or if it is simply step one of a much larger change to the regulatory and legislative environment. However, we also note the pandemic has caused some to consider their physical footprint versus their digital presence.

CYBERSECURITY

Reported breaches continue to rise

Cybersecurity and data protection continue to be a point of concern within the health care industry. Over the last few quarters in 2020, we have seen an increase in the number of hacking incidents as attackers continue to leverage the pandemic for their own benefit. Although many organizations claim to have a sophisticated cybersecurity program, attackers continue to gain access to patient financial and medical information. If proper protocols are in place, why do the attacks continue? RSM security and privacy risk professionals state two ways cybercriminals break into health care organizations:

  1. Remote workers exposing the organization to phishing emails, ransomware and vulnerable storage locations
  2. Third-party vendors and partners transferring the organization’s data insecurely from system to system

As a result, there has been a significant increase in the number of individuals affected by health care data breaches within the past five months. For example, in the month of September 2020, there were over 9 million individuals affected by 87 data breaches (an increase of 373% compared to September 2019) reported to the Office of Civil Rights. Further, 68% of the total breaches reported to the OCR during 2020 were related to a hacking/information technology incident affecting 23 million individuals.

The 2020 NetDiligence Cyber Claims Study indicates that attackers are shifting their preference to small and midsized organizations, which explains the increase in breach reports within the health care industry over the past five months.

This shift in focus leaves the health care industry vulnerable to exploitations during a time where most organizations are cutting their IT budgets and resources in response to the pandemic.

According to Black Book Research, 88% of providers revealed that lack of budget was the major obstacle to properly securing and protecting health information, up from 68% in 2019. Eighty-two percent of hospital chief information officers in inpatient facilities under 150 staffed beds and 90% of practice administrators collectively state they are not even close to spending an adequate amount on protecting patient records from a data breach.

According to the 2020 NetDiligence Cyber Claims Study, a data breach on average costs small to midsize organizations $276,000 (per claim) in lost business income and $26,000 in recovery expenses alone. It is important for health care organizations to evaluate their exposure to cyberrisks. Reduced IT budgets and resources are contributing to an increase in attacks and incident costs. While most large organizations would seem to be the prime target for attackers, small to midsize organizations have experienced the most attacks, contributing to over 98% of the study’s claims. It is no longer a matter of “if” but “when” health care organizations will be the target of a cyberattack, and to ignore such a risk will prove to be extremely costly.

In assessing the overall cost/benefit of investing in a robust cybersecurity program, health care organizations should evaluate the costs to address a breach, which includes the following:

  1. Cyber incident costs: costs associated with investigating the incident (averaging about $123,000 per claim)
  2. Service costs: costs associated with hiring breach counsel, forensics, notifications, credit monitoring and public relations (averaging about $78,000 per claim)
  3. Legal costs: costs associated with lawsuit defense, lawsuit settlement, regulatory action defense and regulatory fines (averaging about $401,000 per claim)

In the coming months, we expect these costs and the reported number of attacks to continue to rise. As a result, health care organizations must be diligent and increase their focus on data security over patient information and the systems they use to treat them.


Sources:

  1. https://rsmus.com/what-we-do/industries/health-care/industry-outlook-health-care.html
2021 Promises To Be A Banner Year For Healthcare Stocks – Investors Are Eyeing This Small Unknown Company

Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) Innovates Full-Scale PPE and Tech Solutions for Businesses and Individuals Managing Outbreak Risk for the Future

A lot of lessons were learned in 2020, not the least of which is that we have some major systemic issues regarding preparedness. The most alarming issue at the beginning of the global health crisis was how woefully inept the system for the production of personal protective equipment (PPE) — a BIG problem between suppliers, and their buyers.

The COVID-19 crisis underscored a need, that looking forward requires a MAJOR shift of how we operate for the years ahead.

At the beginning of this, PPE suppliers faced a ‘wild west’ of procurement on the market. It was a complete mess of empty boxes, unfulfilled orders and cargo planes landing at foreign airports, greeted by no one.

Early on in the crisis, Canada served as a brutal example of ill-preparedness, as government officials had to admit that $300 million worth of PPE supplies in the country’s National Emergency Stockpile System (NESS) had expired and gone to waste[1]—it had to be thrown out.

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In a world without COVID-19, maybe this shortfall could be easily and quickly replaced. But once that world-changing event kicked off, suddenly governments all over the planet were scrambling to secure whatever supplies they could—often finding themselves later throwing out MILLIONS of masks and other supplies that were badly made from producers in places like China.[2]

Pre-2020, PPE was an afterthought in most people’s daily lives. TODAY… almost every single business is being required to supply their employees with protection, and enforce upon their customers compliance. Even with a vaccine coming available, the effects the current pandemic is likely 3-5 years away. Over the course of the coming months and decade to come businesses will be required to maintain vigilance in case of a next pandemic.

Almost a full year into this thing, and PPE shortages is STILL an issue.[3]

In short: We’ve crossed a Rubicon, and there’s no turning back.

Billionaire investor Ray Dalio saw this playing out very early on in April, stating, “the world will look different”. Among these observations, Dalio specifically predicted “priorities are going to shift [towards] healthcare and building the basics.”[4]

How we deal with health crises moving forward will look completely different than life prior to the outbreak. In order to get a handle on these threats moving forward, people and businesses are looking for protection—both through PPE and through tracing and other new forms of technology designed to contain the spread.

Creating a reliable domestic supply chain for PPE will undoubtedly require a complete overhaul of the system that was in place before this all began.[5]

Famously anti-tech billionaire investor Warren Buffett probably didn’t envision making PPE when he took a 10% interest in Chinese electric vehicle maker BYD (OTC:BYDDF) in 2008. But by the end of May 2020, the company was set for certification by the National Institute for Occupational Safety and Health (NIOSH) and a capability to produce 50 million N95 respirator masks per day.[6]

The move paid off, as the BYDDF share price has exploded over the course of the year.

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However, calls for DOMESTIC supplies of PPE are growing louder.

But to avoid the same egregious issues in terms of materials and supplies, SECURITY needs to be airtight.

Addressing these very serious needs for change, a team in Canada came together to build a NEW system from top to bottom—not only in producing state-of-the-art PPE for institutions and individuals, but also in creating an entire environment aimed at enhancing the safety of ALL individuals from those making the equipment, those transporting it, and those wearing it.

Proprietary Healthcare Tech and PPE

Made Onshore

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Meet Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC)

Rising to the occasion, the seeds for the idea behind Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) formed after a call to action in Vancouver was made by local business and community leaders to rapidly raise $150,000 to secure PPE supplies for an area hospital that was in dire need—within 12 business days those supplies landed.

That experience sparked a team of backers to form the company and assemble one of the most talented teams in the entire space.

The word “Maitri” comes from the Sanskrit word for “Compassion”.

After quickly discovering how bleak the situation was for healthcare institutions around the world in the early days of the crisis, a new mission was launched to form the ultimate team of healthcare specialists, tech innovators, and logistics experts to not only solve the issues of a broken system—but to completely disrupt it, revolutionize it, and perfect it.

Now thanks to their collective efforts and exceptional brain trust, Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) has put together a full platform that will allow all users to breathe easier… and safer.

Maitri Health has emerged as an exceptional integrated platform for all things related to the handling of the crisis: Including masks, shields, antimicrobial solutions, and soon swabs, tests, tracing and health management technology.

This isn’t just manufacturing business, but a full-suite answer to the entire global health care supply chain crisis.

According to Maitri’s leadership, Technology and R&D is the future of global health protection.

The company has relationships with the intention of creating partnerships and M&A opportunities that help their products collectively work together to provide any and all health care data associated with this fight to defeat current and future pandemics.

Maitri Health addresses current needs and delivers a long-term solution for supply chains well into the future.

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Unlike during the early months of the crisis, Maitri Health’s proposal for buyers is a completely secure process.

This means tracking and logging each contact point of every single employee along the supply chain that may or may not have come in contact with each item, to securing other businesses and entities of all sizes through PPE for employees to proprietary tracing and security software.

But that’s not where their technological advancements end.

For example, the common surgical mask hasn’t changed for roughly 50 years. Maitri Health has redesigned both surgical and non-surgical masks (all ASTM Level 1, 2, 3 certified and Made in Canada) both in shape, comfort, and in materials used.

From testing kits, to tracing software and hardware, to anti-viral surface cleaners and hand sanitizers, to masks (surgical, non-surgical, and N95) and face shields, Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) has something to protect everyone.

BOTH GOVERNMENTS AND CORPORATIONS DRIVING DEMAND

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As states and other communities brace for the impact of a possible predicted surge of positive  COVID-19 test results, demand for PPE, test kits, and other materials is about to skyrocket.[7],[8],[9],[10]

Industry and governments are making major purchases, to ensure the economy can continue to operate without more widespread and substantial lockdowns.

This trend not projected to fizzle out any time soon. Analysts anticipate the US healthcare personal protective equipment market size to reach US$13.2 billion by 2027, expanding at a CAGR of 29.1% from 2020 to 2027[11]—and the Global market is set to grow to US$98.27 billion by the end of 2027[12]

5 Advantages That Position Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) for a Break-Out in the Months to Come.

  1. Sourcing and Supply Chain
    Focus on distributing and growing domestic supply chain for PPE, Anti-Viral Solutions and Test Kits, for reliable transactions with countries and corporations in need.
  2. Technology Transfer and R&D
    Closing the circle between hardware and technology through partnerships and licensing agreements to better support the collection, storage and transfer of information for a complete PPE ecosystem.
  3. Universal Supply Chain Control – Global Distribution
    Strategic partnerships and supply agreements to bring the production of basic PPE and medical products produced in the Americas and Europe for global consumption, with local manufacturing and assembly in preparation for future biomedical emergencies.
  4. Highest quality & reliability + sustainability
    Production and distribution of products that are compliant, reliable and easy to access, with a focus on sustainable manufacturing and recycling practices.
  5. World-class management team
    Comprised of industry leaders in health, government, technology, capital markets and high-growth companies, including a former Canadian Minister of Health and a world infectious disease expert at Yale who works with the WHO and the CDC.
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FACE MASKS / FACE SHIELDS

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Maitri Health currently offers a series of next generation medical-grade masks called the 3D Mask, including those with ear loops, head straps, and other options to provide comfort, style and lab certified protection.

Users are already reporting back that these are more comfortable than the standard fare, while from a quality of materials standpoint, Maitri Health products come with a domestic safety assurance that most foreign suppliers cannot match.

They’re made better, and designed for longer use, using multiple layers and a better fit around the face and on the nose.

These masks are made in Canada, and production can be smoothly set up in the USA and abroad. Domestic production is key in this era, especially given all of the cases of faulty PPE that was ordered from China and shipped to the USA[13] , Canada[14] and Europe[15].

While China has claimed to have fixed the issue, it’s a much more secure option to have domestically produced equipment with onshore quality assures. The fear that comes with foreign made medical assets is real, and is impacting the cause[16].

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Supplies of PPE has become a hot commodity in other nations, including not just masks, but face shields as well[17]. Back in March, German Chancellor Angela Merkel’s government banned the export of ALL protective medical equipment, including goggles, gowns, face shields, gloves and surgical masks[18].

Securing a domestic supply is incredibly important, not just in North America, but abroad as well.

In Canada, the calls are coming to come to terms with a need to shift towards manufacturing all types of PPE, including face shields.[19]

Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) is providing face shields along with its platform of face masks, and is taking orders at this time. Its Win-Shield is designed by healthcare and dental professionals to cover the face and head while adding a superior level of comfort.

The product is easy to assemble and comfortable for all day use, meant to change to perception of what it means to wear personal protective equipment.

TESTING SOLUTIONS

Maitri Health is providing a US made supplier of Saliva and Nasal Covid Test Kits called Diacarta. This biotech company has a test that ranks highly by the FDA for accuracy.

This solution to the need for high quality testing will be part Maitri Health Technologies’ broader vision of a full technology platform that tracks and provides intelligence to healthcare providers, government, corporations.

As part of Maitri’s digital strategy, testing provides a strong use case for data collection and eventual software driven predictive healthcare.

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ANTIVIRAL SOLUTIONS

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Maitri Health also currently offers a pair of antiviral solutions: Candid Clean Sanitizer and Clean Terra Antiviral Solution.

Certified as a safe product, Candid Clean Sanitizer is gentle on the hands, and non-greasy. With so many questionable hand sanitizers on the market made from alcohols that are rough on the hands and smell bad, Maitri’s team at Candid Clean designed a superior blend of quality ingredients and available fragrances.

CleanTerra Antiviral Solution is more effective than bleach and non-toxic, food safe non-corrosive and biodegradable. Envirocleanse, A Berkshire Hathaway Company, is a key partner that makes this  effective daily disinfectant that can quickly and safely be used to eliminate pathogens on high touch surfaces such as counters, escalators, airplanes, buses, wheelchairs, site signage, gyms, desks, vehicle interiors, restrooms, hotel rooms, etc. CleanTerra is effective in the fight to keep areas safe without any risk of chemical poisoning to humans and does no damage to assets such as furniture or surfaces. This is unlike other cleaners on the market.

PRODUCTS IN DEVELOPMENT

On deck for Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) are a stream of products in development that the company plans for release by the end of November, including N95 Clear Masks, Swabs, Antigen and Anti-Body Tests, as well as a Technology Platform that involves Track and Trace, Inventory Management and Workplace Management.

Perhaps a key breakout among this group is that of the test kits, which are still in extremely high demand across North America and abroad.

These are being snapped up in massive numbers not only by governments, but by major businesses as well, such as Barrick Gold which bought 800,000 antibody test kits for use on its operations.[20]

As we will see, combining test kits and other diagnostic equipment to the company’s offerings could be a major game changer for Maitri Health.

Evaluating Maitri Health Among its Peers

It’s slightly difficult to compare Maitri Health with other producers of equipment in this space, because there is such a variety of competitors in the market. Keep in mind, that shortages still remain across several markets, so there’s still plenty of room to join the fray.

However it’s wise to start by looking at the BIGGEST entities in the PPE space, and how much they’ve gained from their 2020 low points to present (as of November 11, 2020).

CompanySymbolShare Price Today% Gain Within 2020Mkt Cap
Maitri HealthN/AN/AN/AN/A
Honeywell InternationalNYSE:HON$199.2992%$139.8B
3M CompanyNYSE:MMM$169.2144%$97.6B
MSA Safety IncorporatedNYSE:MSA$143.8765%$5.6B

*Latest share price taken from Yahoo! Finance on November 11, 2020

**All prices in USD

As we can see, there have been several respectable gains in the double digits, among the biggest players.

However, it’s in the microcaps to mid-cap levels that the much bigger gains are being witnessed. In the table below, only one company has a market cap over a billion dollars.

What these companies do have in common is a primary focus on healthcare safety supplies and diagnostic equipment. This is a smoking gun that points towards where the biggest gains are truly being made.

FOUR of these companies, Allied Healthcare Products, Owens & Minor, Alpha Pro Tech and Co-Diagnostics, have made gains of +2.7x —with CODX gaining +14x.

CompanySymbolShare Price Today% Gain Within 2020Mkt Cap
Maitri HealthN/AN/AN/AN/A
Yunhong CTINASDAQ:CTIB$1.77124%$8.44M
Lakeland IndustriesNASDAQ:LAKE$20.2291%$161.35M
Allied Healthcare ProductsNASDAQ:AHPI$4.70273%$18.86M
Owens & MinorNYSE:OMI$23.04459%$1.69B
Alpha Pro TechNYSE:APT$12.89273%$175M
Co-DiagnosticsNASDAQ:CODX$13.301,362%$375.98M

*Latest share price taken from Yahoo! Finance on November 11, 2020

**All price in USD

Maitri Health Technologies Corp. (OTC: MHTCF / CSE: MTEC) has positioned itself to be a perfect hybrid of both the PPE space, and the diagnostics and tracing space.

The company already has a platform that includes face masks, antimicrobial solutions, and face shields. But soon, they’re prepared to launch N95 clear masks, swabs, tests, and tracing and detection technology.

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Maitri Health’s All-Star Team

We have assembled an all-star team of leaders and innovators. Our team brings integrity, invaluable skills and future-forward vision to help drive our mission of building a global platform. The quality of people we’ve attracted is also a testament to our business model and their confidence in our success.”

– Andrew Morton CEO and Director of Maitri Health

CEO and Director – Andrew Morton

Morton is a seasoned global technology executive with a track record of successfully building and running innovative companies. He was SVP Global Sales for Zodiac Interactive, a private equity held software company focused on advanced software for Tier 1 Cable and Telecom providers. He headed up Broadband TV for Entone where he launched successful operations on multiple continents. Entone was acquired by Amino Communications (LON: AMO) where he served for several years post transaction on the senior executive team. Earlier in his career, Morton co-launched global operations for Comtrend Corporation, a leader in telecom hardware and software.

Chief Commercial Officer and Corporate Secretary – Marliss Yassin

Yassin is a CPA, CA with +15 years’ experience working with publicly listed companies. She has held finance management positions at various public companies, including an international industrial products company and mid-tier mining companies. Yassin gained extensive experience through her client engagements at Deloitte providing reporting, advisory and assurance services to publicly traded companies, primarily in the natural resources sector.

Strategic Advisor – Jodi Butts

A lawyer by trade and an entrepreneur at heart, Butts is a healthcare executive with a strong track record in driving positive change and growth within leading organizations. Previously, she served as Chief Executive Officer of Rise Asset Development and Senior Vice-President of Operations and Redevelopment at Mount Sinai Hospital.

Butts brings significant governance experience as she currently serves as an independent director at Canada Goose Holdings and Aphria, is a member of Dot Health board of directors and has held the Chair role on several Boards. She also holds several Board Advisory roles including with Bayshore Home Healthcare and the World Health Innovation Network at the University of Windsor.

Strategic Advisor – Dr. James Shepherd

Dr. Shepherd is one of the world’s foremost experts in infectious diseases. An associate professor of medicine at Yale School of Medicine, Dr. Shepherd’s global experience include his work as a special advisor to the World Health Organization. His recent history includes advising the Government of India on tuberculosis control, directing a research program in TB and HIV for the Centers for Disease Control and Prevention in Botswana, and assisting the University of Maryland start a large AIDS treatment program in Nigeria.

Strategic Advisor – Dr. Anne Snowdon

Dr. Snowdon is a leader in health system innovation and transformation and global supply chain infrastructure in healthcare. She’s currently Professor of Strategy and Entrepreneurship and Chair of the World Health Innovation Network (WIN), at the University of Windsor, Odette School of Business.

She currently leads a global network, SCAN Health, to disseminate new knowledge and enable cross jurisdiction learning to accelerate supply chain transformation across global health systems. She has published more than 140 research articles, papers and cases, has received more than $22 million in research funding, holds patents, and has commercialized a highly successful booster seat product for children traveling in vehicles.

Strategic Advisor – Sashko Despotovski

Despotovski is a seasoned investment banker and an active investor in both private and public companies. He has held posts within several funds and hedge funds in the investment banking capacity in USA and Canadian markets, as well as on the operational side as management and as a director for a number of companies. Despotovski holds advisory board seats at several international companies and is currently managing director of Hinna Park Capital in Norway.

Director – Gavin Cooper

Cooper is a Chartered Accountant with extensive experience in all aspects of corporate and financial management. For the past 35 years, he’s been providing strategic and financial advice and corporate administration services. He’s held senior positions with a number of public and private companies with local and international operations.

Director – Dr. Solomon (Sam) Pillersdorf

Dr. Pillersdorf has been involved in the mining sector for +10 years, including funding start-up mining companies and sourcing and funding resource claims. Dr. Pillersdorf was Head of Rheumatology Outpatients and Head of Rheumatology training at the McMaster University Medical Center.

Director – Tony Clement

Clement is a former Canadian federal politician and former Member of Canadian Parliament. He served in senior roles in Prime Minister Stephen Harper’s Cabinet for nearly a decade, as Health Minister, Industry Minister and President of the Treasury Board. As a business entrepreneur, he has also led information technology companies, and served on the board of directors on information technology and health care companies, having provided strategic advice both nationally and internationally.

Board Chair – Sav DiPasquale

DiPasquale is a senior executive with +30 years of experience in the pharmaceutical, biotechnology and transportation industries, and is currently President of the Canadian Pharmaceutical Distribution Network (“CPDN”). At CPDN, DiPasquale is responsible for overall operations, including the development and implementation of strategies to grow the organization’s membership and extend its unique service offering.

Previously he spent nearly 17 years at Glaxo Smith Kline in various senior positions, including VP Business Development and CIO.

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Staff Editors
Equity Insider Team


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 a 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 Maitri Health advertising and digital media from the company directly. There may be 3rd parties who may have shares of Maitri Health 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 Maitri Health which were purchased as a part of a private placement. MIQ will not buy or sell shares of Maitri Health for a minimum of 72 hours from the publication date on this website March 7, 2021, but reserve the right to buy and sell, and will buy and sell shares of Maitri Health 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.


SOURCES:

[1] https://www.cmaj.ca/content/cmaj/early/2020/06/24/cmaj.200946.full.pdf

[2] https://www.vice.com/en/article/7kzae9/european-countries-are-throwing-out-rubbish-chinese-made-masks-and-coronavirus-tests

[3] https://www.bnnbloomberg.ca/fixing-the-ppe-shortage-should-top-biden-s-to-do-list-1.1520273

[4] https://markets.businessinsider.com/news/stocks/ray-dalio-bridgewater-associates-predicts-pandemic-boost-savings-self-sufficiency-2020-4-1029117199#

[5] https://www.supplychainbrain.com/articles/32170-qa-what-it-will-take-to-create-a-reliable-domestic-supply-chain-for-ppe

[6] https://www.fool.com/investing/2020/06/02/warren-buffett-backed-chinese-car-maker-turned-mas.aspx

[7] https://www.wgbh.org/news/local-news/2020/10/22/masks-gloves-and-other-protective-equipment-in-demand-as-mass-readies-for-possible-surge

[8] https://www.cbsnews.com/news/ppe-n95-mask-shortage-covid-19/

[9] https://www.citynews1130.com/2020/10/13/some-b-c-dentists-charging-covid-19-fee-to-cover-ppe-costs/

[10] https://news.ontario.ca/en/release/59065/ontarios-action-plan-protect-support-recover

[11] https://www.businesswire.com/news/home/20201019005365/en/United-States-Healthcare-Personal-Protective-Equipment-Market-Report-2020—ResearchAndMarkets.com

[12] https://www.allamadvisorygroup.com/ppeoutlook/

[13] https://www.latimes.com/world-nation/story/2020-04-10/china-beijing-supply-world-coronavirus-fight-quality-control

[14] https://globalnews.ca/news/6905351/coronavirus-china-canada-faulty-masks/

[15] https://www.aljazeera.com/news/2020/3/29/netherlands-recalls-defective-masks-imported-from-china

[16] https://www.propublica.org/article/foreign-masks-fear-and-a-fake-certification-staff-at-csl-plasma-say-conditions-at-donation-centers-arent-safe

[17] https://www.ft.com/content/efdadd97-aef5-47f1-91de-fe02c41a470a

[18] https://www.reuters.com/article/health-coronavirus-germany-exports-idUSL8N2AX3D9

[19] https://globalnews.ca/news/7406308/coronavirus-inside-supply-chain-crisis/

[20] https://www.ft.com/content/baf6f145-f2f9-42bd-ac75-9fd22f9b1091

Take a look at this undervalued Gold mining company

It’s official, we are now entering ‘BULL’ territory in the Gold sector! When this happens, and we love when it does, it presents a multitude of opportunities for us, so we wanted to outline one such opportunity for you to take a look at:

Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) is Developing TWO Potential Breakthrough Precious Metals Projects Targeting Gold, Palladium and Platinum in Safe, Prolific Canadian Mining Zones

Back in March of 2016, the stock of a relatively small Canadian junior mining company called Marathon Gold began a 4-year run on the road to a 10x valuation.

Excitement progressively grew around its Valentine Gold Project in the world leading mining jurisdiction of central Newfoundland.[1]

To date, four gold deposits at Valentine have been delineated, and a 2018 Preliminary Economic Assessment showed it could sustain open pit mining and conventional milling over a 12-year mine life.

In total, the mineral resource on the project comprises 3.09 million ounces Measured & Indicated at 1.75 g/t Au, and another 0.96 million ounces Inferred on a 20km trend.[2]

When Marathon announced step-out drilling in March 2016 that they’d successfully expanded the Valentine deposit’s mineralized corridor, the stock began to climb.

The stock’s run truly began on March 20th, 2016 at $0.17. By May 10th, 2020, Marathon had more than completed the ten-bagger journey.

Today in 2020, another journey beginning on the other side of the lake… at $0.17.

Just 30km across the lake from Marathon, are two projects located within the very same Cape Ray Fault Zone as the Valentine Lake project— both 100%-controlled by the same company.

The first project is a large package, covering 12 km of the Cape Ray Fault Zone directly between not only Marathon Gold’s Valentine Lake deposits, but also Australia-based Matador Mining’s Cape Ray deposits.

The other project is a 192-claim unit property located proximal to Marathon’s Valentine Lake deposits.

But those are only the company’s gold properties.

This company also has interests in a large land position in Ontario, targeting platinum-palladium.

Just last year platinum was being deemed by analysts as the “Most Precious Metal”.[3]

Now the company appears to be in the midst of a healthy 2020.

Over that period of time, this company has confirmed its approval to acquire the platinum-palladium property in Ontario, announced work on its two properties in Newfoundland, and also began trading on the Frankfurt Exchange.

It’s worth taking a deeper look into why this company is in a healthy position in two of Canada’s best mining jurisdictions, with a trio of projects they could build a legacy upon.

Meet Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2)

Meet Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2), a junior Canadian mining company targeting gold in Newfoundland and palladium/platinum group elements (PGE) in Northern Ontario.

In Newfoundland, Quadro is developing its Staghorn and Long Lake projects, both of which are gold-rich systems that have significant work planned for 2020—Staghorn in Q2, and Long Lake in Q3.

In Northern Ontario, Quadro just recently secured a 70% option on the Seagull Lake project, which comes with high-grade intercepts of PGE and targets already identified.

Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) is backed by an experienced team of mining veterans who have had successes in the junior resource sector.

By establishing its three projects (Staghorn, Long Lake, and Seagull Lake), Quadro is making a case to become a peer to its neighboring miner heavyweights, such as Marathon Gold, and Impala Platinum Holdings. Drilling and field testing to date have suggested results in line with Marathon grades and numbers.

As a Canadian junior mining company, it’s also worth noting Quadro’s relatively tight capital structure:

  • 50 million shares outstanding
  • 11 million shares held by management and insiders, including two public companies which have a financial interest in the projects
    • Combined with strategic partners, 40% of Quadro shares are spoken for

A COMPARISON OF NEWFOUNDLAND GOLD PROPERTIES

In terms of the Policy Perception Index (PPI) in 2019, Newfoundland and Labrador placed in the Top 10 jurisdictions in the world (and 2nd highest in Canada)—According to the most recent Annual Survey of Mining Companies put out by the Fraser Institute.[4]

The PPI is a composite index that measures the overall policy attractiveness of all the 76 jurisdictions in the study.

Policy-wise, the jurisdiction offers a clearer path forward as companies plan out their journey to production.

In the case of both Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) and Marathon Gold Corp., there is a lot to look forward to in terms of development in Newfoundland.

Both of the companies’ properties are on strike from each other, and are traversed by the auriferous Cape Ray Fault, and associated Rogerson Lake Conglomerate unit.

They’re separated by a 30 km expanse of water—Victoria Lake.

Marathon’s property hosts the multi-million ounce Valentine Lake gold trend, which terminates to the southwest at the short of Victoria Lake.

Whereas the northeast (Ryan’s Hammer) portion of Quadro’s Staghorn property extends to the opposite shore of Victoria Lake, where similar gold mineralization has been located in float and drill holes.

Marathon’s gold system consists of a series of stacked Quartz-Tourmaline-Pyrite-Gold veins hosted in a granodiorite unit, proximal to the overthrust Rogerson Lake Conglomerate.

Mineralization at Quadro’s Staghorn is generally hosted in Arseonpyrite-Pyrite-Quartz veins within a diorite/granodiorite unit proximal to the Rogerson Lake Conglomerate. Gold is also found in strongly sheared sediments associated with the Cape Ray structure.

Marathon has completed more than 275,000 meters of drilling.

Drilling on Quadro’s Staghorn at the Ryan’s Hammer, Ryan’s Hammer East and Mark’s Pond areas’ soil anomaly amounts to approximately 1,000 meters. Two new wide auriferous zones have been discovered from this drilling, and now requires step out drilling.

It was the timing of step-out drilling in 2016 on Marathon’s Valentine deposit that corresponded with the kickstart of that company’s exceptional run from $0.17 to $1.76 today.

THE STAGHORN PROJECT

Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) owns a 100% interest in the large Staghorn Project land claim package that covers 12 km of the auriferous Cape Ray Fault Zone, located directly between Marathon Gold’s Valentine Lake deposits and Matador’s Cape Ray deposits.

To date it has completed two drill programs on the project:

  • In 2017 — 1466m in 9 holes focused on the Woods Lake Zone.
    • This program confirmed the widespread extent of an auriferous altered grandiorite within a flexure of the Cape Ray fault and will require additional drilling to better define higher grade zones within the package
  • In 2018 — 887m in 5 holes focused on completing a fence of holes across the Cape Ray structure at Ryan’s Hammer.
    • This drilling combined with previous drilling to the east has partially outlined two wide gold trends with only one drill cut in each trend.

Through compiling these drill results (along with other field work such as prospecting/geophysics and soil sampling), Quadro has outlined three high priority targets in the northeast end of the Staghorn property, 30 km on strike from the Marathon Gold deposits.

In 2020 Quadro is set to embark on a proposed 2500 m drill program focused on discovery and development of deposits in the same style as Marathon Gold’s.

The program includes:

  • Ryan’s Hammer
    • Initially a prospecting discovery consisting of numerous slabs of angular float of mineralization granodiorite with values up to 32.15 g/t Au.
    • One hole drilled in 2018 as part of a fence across this area intersected 0.145 g/t Au across 50 meters.
    • 100 meter step out holes are recommended.
  • Ryan’s Hammer East
    • Located 300 to 500 meters across strike from the high grade float, previous drilling intersected 0.184 g/t Au over 71.2 meters in a moderately veined and altered granodiorite.
    • Additional drilling is required to further test the granodiorite.
  • Mark’s Pond
    • This target is outlined by a 800 m by 300 m gold-in-soil anomaly with values up to 7,000 ppb gold.
    • The target is coincident with the northern edge of a diorite intrusive body and the regionally significant Rogerson Lake conglomerate.
    • Four holes are planned to test this soil anomaly.

ANOTHER NEWFOUNDLAND GOLD CONTENDER

Further complimenting Staghorn is the Long Lake Property, which Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) has an option to earn a 100% interest in.

The 192 claim unit property is located proximal to Marathon Gold’s Valentine Lake deposits.

Long Lake’s property highlights include two areas of strong gold in soil and tills which to date have never been followed up.

Vendors took two till samples from a Tower gold-in-soil anomaly and processed them at Overburden Drilling Management Limited (ODM).

Both samples were highly anomalous as follows:

According to Don Holmes, P.Geo of ODM in late 2019, the No. 01 sample was collected at the site of a historical gold soil geochemical anomaly, and No. 02 was collected several meters adjacent.

A program of excavator trenching, prospecting and additional geochemistry is planned in 2020.

Quadro plans to drill high grade zones that have been identified by soil testing. With approximately 200 Sq. Kms over the two assets, there is more than enough running room to replicate the size and scope of Marathons Victoria Lake project.

CHASING PLATINUM-PALLADIUM IN ONTARIO

In 2019, the lesser talked about palladium took off to become the hottest precious metal in the world.

Among experts, it even opened this year being labeled as “more precious than gold”.[5]

Primarily mined in Russia and South Africa, 85% of palladium ends up in catalytic converters in car exhausts to reduce air pollution. However usage started increasing as governments (especially China’s) started raising standards on pollution from vehicles.[6]

Now there are supply concerns over the obscure metal as it traded above gold for most of the past year.

Earlier this year in February, Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2) announced an option to acquire a 70% interest in the platinum-palladium prospective Seagull Lake Property from White Metal Resources Corp.

Located an hour north of the port city of Thunder By, and 50km south of Impala Canada’s Lac des Iles Mine (previously North American Palladium), the Seagull Lake property comes with excellent infrastructure—including paved and gravel roads, natural gas pipeline and power lines in the area.

Impala Canada recently paid $1.0 billion to acquire North American Palladium’s Lac des Ile Mine—Canada’s only primary PGE mine.

Quadro’s Seagull asset is comprised of 492 single cell mining claims totaling 10,390 hectares. Historic holes on the property targeted semi massive to massive sulphides at +800m depths.

Drill intersections include grades of up to 3.6 g/t PGE, 0 34% Cu, 0.21% Ni over 21 m, and 1.04 g/t PGE, 0.14% Cu, and 0.16% Ni over 16 m.

Three styles of PGE mineralization have been identified in the Seagull Intrusion: PGE rich detrital “black sands”, magnetite PGE rich layered “reef type”, and “Norilsk type” basal Cu Ni PGE rich sulphide bearing cumulates.

The company believes there is potential for the discovery of a Norilisk (Siberia) type PGE Cu Ni and contact type PGE sulphide mineralization.

Judging by other plays in the area this could be plausible.

The tremendous potential of the Thunder Bay North region is evidenced by Rio Tinto’s Escape Lake property (recently consolidated by Clean Air Metals Inc.), and Impala Canada’s Sunday Lake Property, which has had the following results:

  • 35.8 m of 4.5 g/t Pt+Pd+Au (“3E”)
  • 41.2 m of 3.22 g/t Pt, 2.08 g/t Pd, 0.21 g/t Au.

PGE zones at Seagull are wide open for expansion and drill permitting is underway.

Quadro’s work program will comprise of follow-up drilling on the high-grade intercepts identified by PTM and testing the PEM OFF HOLE geophysical anomaly that was never properly tested by PTM due to deviation of the previous drill holes.

The company will also test a magnetic anomaly considered to be the feeder zone for the Seagull Intrusion and a possible source of the copper, nickel, PGE mineralization.

Additional targets include the up-dip potential of the Lower Dunite Reef Zone PGE mineralization. Compilation of the existing data base accumulated by the previous operators is in progress and additional PGE targets have been defined from the 3D Mag inversion data.

VETERAN MINING MANAGEMENT TEAM AND BOARD

T. Barry Coughlan, BA – President & Chief Executive Officer, Chairman

Vancouver based businessman and financier Coughlan has been involved for more than 30 years in the financing of publicly traded companies. He’s presently a director of five publicly traded companies and was previously a director of Taseko Mines Ltd., Great Basin Gold Ltd., Farallon Mining Ltd., and Continental Minerals Corp. Over his career he has been involved in the financing of +30 private companies and their subsequent listings on North American Stock Markets. He is currently the Executive Chairman of Mineral Mountain Resources Ltd.

Wayne Reid, P.Geo – Vice-President Exploration

Spanning a variety of Canadian geological terrane, from Newfoundland to Northern B.C. and Alaska, Reid has +35 years of experience in exploration and mining geology, involving gold, base metal and uranium exploration in most geological environments in North America. He was part of the team in the discovery of the Brewery Creek Gold Deposit in the Yukon Territory and the Boundary Massive Sulphide Deposit / Duck Pond Mine in Central Newfoundland.

Tom Wilson, CPA-CA – Chief Financial Officer

Wilson has more than 35 years of corporate experience in all areas of financial management and administration including corporate governance, government and securities compliance and financial administration, for both public and private companies. Within the mining sector, he’s been CFO for the following companies: Quadro Corp., ICN Resources Ltd., Paragon Minerals Corporation. Previously, Mr. Wilson was the VP/Treasurer of Cellfor Inc.; the CFO for Quest University; Corporate Controller for MDSI; and Senior Manager at MacMillan Bloedel Limited.

Gordon Fretwell, B.Comm., LL.B. – Corporate Secretary

Formerly a partner in a large Vancouver law firm, Fretwell has, since 1991, been practicing primarily in the areas of corporate and securities law. He currently serves on the board of several public companies engaged in mineral exploration including: Asanko Gold Inc., Quartz Mountain Resources Ltd., Canada Rare Earth Corp, and Coro Mining Corp.

Brian Corrall, CA – Director

Corrall is the former President of CWA Consultants Inc. and Chief Financial Officer of GB Energy Holdings Inc. He’s held various financial positions at MacMillan Bloedel/Weyerhaeuser, BC Coastal Region for 30 years and served as a Director of Finance until November 2005. He’s been a Director of Quadro Resources Ltd. since January 2005 and served as an Independent Director of ICN Resources Ltd (formerly Icon Industries Ltd.) until September 2009. Corrall has been a Chartered Accountant and Financial Consultant since December 2005.

Trevor Thomas, LL.B. – Director

Thomas has practiced in the areas of corporate commercial, corporate finance, securities, and mining law since 1995, both in the private practice environment as well as in-house positions and is currently general counsel for Hunter Dickinson Inc. Prior to joining Hunter Dickinson Inc. he served as in-house legal counsel with Placer Dome Inc.

Nelson Baker, P.Eng. – Director

Baker has been active in the mineral exploration industry for over 50 years. He has been the President and CEO of Mineral Mountain Resources Ltd. since July 2010. Over the years he has served on several boards particularly in the junior resource sector. He was one of the founding principles of Rainy River Resources Ltd., and served as a director, President and CEO of Rainy River from March 2005 to June 2009. During that period, he and his team successfully expanded the Rainy River gold deposit from 450,000 ounces to 5 million ounces of gold.

Stephen Stares – Advisor to the Board

President and CEO of Benton Resources, Stephen Stares is a successful mining entrepreneur with +25 years’ experience in mineral exploration. With Noranda exploration he spent 7 years on projects including the Hemlo gold mines, Eagle River gold deposit and the Geco and Mattabi base metal camps. He also spent 10 years managing the operations of Stares Contracting Corp., a successful mineral exploration services company based in Thunder Bay, Ontario. In March 2007, Stephen and brother Michael, were the proud recipients of Prospectors and Developers Association (PDAC) Bill Dennis Prospector of the Year Award. This award was given to recognize the family’s contributions to the industry of the past 40 years.

Alexander “Sandy” Stares – Advisor to the Board

President and CEO of Metals Creek Resources, “Sandy” Stares has +18 years’ experience in mineral exploration, spanning a variety of Canadian geological terranes, from Newfoundland to Yukon. Prior to forming his own Contracting Company – Stares Prospecting Ltd. – he worked with IndoMetals, Rubicon Minerals Corporation, Freewest Resources of Canada, New Millenium, Lac Des Isle Mines and Noranda. He was instrumental in the discovery of the H-Pond Gold Prospect and the Lost Pond Uranium Prospect. He has discovered numerous major mineral occurrences in Canada and abroad which have been the subject of extensive exploration programs. He was also one of the recipients of the PDAC’s Bill Dennis Prospector of the Year Award” in March 2007, which was awarded to members of the Stares/Keats family.


5 Key Highlights to Remember for Quadro Resources Ltd. (TSXV: QRO / FSE: G4O2)

  1. Promising Newfoundland Real Estate over two propertiesincluding the Staghorn Gold project near Marathon Gold’s ~4.2 million oz Valentine Lake Deposits, and the Long Lake Gold property immediately north of Marathon Gold’s Valentine Lake property.
  2. Seagull Lake Property in Ontario within an hour of the city of Thunder Bay, and 28km north of new copper, nickel, platinum, palladium discoveries of Rio Tinto and Magma Metals, and 50km southeast of the North American Palladium mine.
  3. Extensive Exploration Programs planned in 2020 on all three projects, with the goal of step-out drilling to expand the deposits.
  4. Tight Share Structure with 50 million shares trading. Strategic partners and management have approximately 40% interest of the shares I/O.
  5. Proven Management Team and advisor board, with plenty of Canadian mining experience in a variety of terrane.

[1] https://www.gov.nl.ca/nr/files/pdf-wf-mining-2018.pdf

[2] https://www.marathon-gold.com/projects/flagship-project/valentine-lake/project-highlights/

[3] https://www.bloomberg.com/news/articles/2019-10-28/why-palladium-is-suddenly-a-more-precious-metal-quicktake-k2ap4ryc

[4] https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2019.pdf

[5] https://www.bbc.com/news/business-51171391

[6] https://www.bloomberg.com/news/articles/2020-01-20/why-palladium-is-suddenly-a-more-precious-metal-quicktake-k5n00l9z


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 Quadro Resources Ltd. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Quadro Resources Ltd., 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 1,090,476 restricted shares of Quadro Resources Ltd. and 545,238 restricted warrants exercisable at $0.25 which were purchased as a part of a private placement that was entered into on June 24, 2020. These shares and warrants will have their restriction lifted on October 24, 2020 at which point MIQ fully expects to sell/exercise them all. MIQ will not buy or sell shares of Quadro Resources Ltd. for a minimum of 72 hours from the date this report was posted (July 20, 2020), but reserve the right to buy and sell, and will buy and sell shares of Quadro Resources Ltd. 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 Quadro Resources Ltd.; 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.

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.

Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the precious metal by buying stocks of companies engaged in exploration and mining.

Now more than ever everyone is looking for “it”, yet most can’t find “it” & by “it” we’re referring to OPPORTUNITY IN THE STOCK MARKET!

When Presenting a True Wealth-Building Opportunity in Times of Uncertainty There is 1 Key Factor to Consider:

What are the “recession-proof” industries, meaning if the world continues to fall into uncertainty what industries will provide investors with the biggest opportunity to thrive?

The answer and PRIMARY EXAMPLE of a “recession-proof” industry is the GOLD & MINING SECTOR!

During the 2008 financial crisis companies like Barrick Gold Corporation saw massive gains. From January 1, 2007, to January 1, 2008 (NYSE: GOLD) saw its price per share increase over 73% when it went from $29.61 to $51.44

The above is just an example of what can happen, and we’ve got our eyes on a few emerging growth comapnies in this sector. If you’re interested in learning more, enter your email address in the box provided on this page and we will email you the information.

Editorial Team
Equity Insider

The Top Buying Opportunities Amid An Immense Sell-Off

Clearly the stock market is, and has been under siege lately. The answer for this is obvious, but the answer to many people, traders and institutions may not be so clear.

To us, we are looking for value buys, stocks that got beaten down for no real reason other than the fact that the markets in general were getting tumbled, and they went along for the ride.

This type of trading activity can be terrible for some companies and have an immense impact across the board, and let’s face it, people tend to over react.

We are currently looking at stocks that in our opinion will have an almost immediate bounce back once stabilization occurs, and you can bet the farm, things will stabilize once the media stops freaking everyone out.

If you enter your email in the box provided below, we will email you our research once it’s completed.

Thank you
Equity Insider

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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. 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”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.

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 any of our reports 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.

This Swing Trade Is Ready To Rock

What Is Swing Trading?

Swing trading is a style of trading that attempts to capture gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.

We spend a lot of time analysing different stocks within different trading patterns, and swing trading can be amongst the most rewarding style of trade a person can do.

We believe we have identified a stock that’s patterns are looking very strong for a breakout within the next couple weeks, so if you’re interested in hearing more, put your email address in the box provided and we will let you know when the information is complete.

Editorial Team
Equity Insider


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. 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”). Individuals are strongly encouraged to not use this publication as the basis for any investment decision.

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 any of our reports 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.

Precision Diagnostics Potentially Could Save Society Billions in Burden Costs

Precision Diagnostics Developers Navidea Biopharmaceuticals Inc. (NYSE:NAVB) Leveraging FDA-Approved Proprietary Tech to Target Several Costly Diseases

Before we get into what Navidea Biopharmaceuticals Inc. (NYSE:NAVB) does, and why we think it’s a good play, we wanted to point something out.

One of the best indicators that something is about to happen with any particular stock is when INSIDERS start buying up the stock. In this case, you need to know a few facts, facts that will undoubtedly show you that your timing is near perfect with this trade:

Navidea Biopharmaceuticals Inc. (NYSE:NAVB) has seen significant Insider buying lately: John Scott, a 10%+ holder of Navidea just purchased an additional 2,373,529 shares on February 13, 2020, which brings his total ownership up to 8,052,301

Navidea has 40 different institutional investors, which is very impressive for a NYSE company priced so low, and you can bet there’s a reason for this.

More impressive is the amount of shares that are held by insiders. We added up the insider roster found at Fintel.io and calculated a total of 16,354,087 shares that are held by insiders, which is HUGE because according to the Wall Street Journal, the company only has 22.58M shares outstanding. By our calculations, that means 72.4% is held by insiders!

What does all this mean? Put simply, any significant, or even semi-significant market activity will push the stock price of this company through the roof, and in our opinion, it’s just a matter of time, probably sooner than later.


Let’s take a look at what Navidea Biopharmaceuticals Inc. (NYSE:NAVB) does, because we want to outline why we think it’s a good buy right now

A stitch in time saves nine”, is a very popular proverb warning about the dangers of procrastination. But in the case of healthcare and precision diagnostics, that early stitch could save BILLIONS. One clear example of this is the growing problem of Rheumatoid Arthritis (RA), which is being increasingly diagnosed in the population, due to an ever-aging populace.[1]

Some estimates place the direct and indirect burden cost of arthritis and related rheumatic conditions on the economy at around $353 billion.[2] The societal burden on the US economy is greater than $39 billion annually.[3]. Not only is the Global Rheumatoid Arthritis Drugs Market projected to be worth $50.5 Billion by 2025[4], but the amount of lost work hours and productivity attributed to RA also make a significant dent on society.

Despite having no cure, doctors recommend that patients adhere to suggested treatments early in diagnosis to decrease the severity of symptoms[5]—the earlier the better. Across many of the most prominent and costly diseases in the world, early detection is incredibly important, when it comes to predicting success.

Not only for patients with rheumatoid arthritis, but also with cancer, and cardiovascular disease (CVD). But rheumatoid arthritis can be difficult to diagnose in its early stages because the early signs and symptoms mimic those of many other diseases. According to the Mayo Clinic, there is no one blood test or physical finding to confirm the diagnosis. 

There is no cure for rheumatoid arthritis, but clinical studies indicate that remission of symptoms is more likely when treatment begins early with medications known as disease-modifying antirheumatic drugs (DMARDs), steroids, or Nonsteroidal anti-inflammatory drugs (NSAIDs). In order to obtain early detection of these symptoms (not only in RA, but in cancer, CVDs and other auto-immune disorders), one under-the-radar NYSE company is developing a platform that has wide ranging potential in the field of immuno-diagnostics and immuno-therapeutics.

This company has developed a proprietary FDA- and EMEA-approved delivery system that targets a receptor found associated with several diseases, called activated macrophages. With Phase II and Phase III studies ongoing across conditions, this advanced precision diagnostics platform has extreme game-changing potential for many of healthcare’s biggest problems.

Meet Navidea Biopharmaceuticals, Inc. (NYSE:NAVB), a still lesser known innovator, that’s developed the ManoceptTM Precision Targeting Platform.

In-Depth Look:
Navidea Biopharmaceuticals, Inc. (
NYSE:NAVB)

ANALYST OVERVIEW:
Company – Navidea Biopharmaceuticals, Inc.
Rating – STRONG BUY

Navidea’s analyst coverage includes:

Meet Navidea Biopharmaceuticals, Inc. (NYSE:NAVB)—a still under-the-radar precision medicine leader with immuno-targeted products designed to help identify the sites and pathways of undetected disease and enable better diagnostic accuracy, clinical decision-making, targeted treatment, and ultimately, patient care.






The Company focuses on the development of innovative immunodiagnostic agents and immunotherapeutics that can and will make a difference for individuals, as well as their families, physicians and care givers, touched by devastating conditions like cancer, autoimmune, infectious and inflammatory diseases.

Through its Manocept™ technology, Navidea seeks to develop next-generation targeted diagnostics and therapies for cancer, autoimmune conditions, and other inflammatory diseases. The company is developing a pipeline of immunodiagnostic applications beginning with rheumatoid arthritis, Kaposi’s sarcoma and cardiovascular disease with an addressable market that is substantial.

Navidea’s strategy is to deliver superior growth and shareholder return by bringing to market novel products and advancing the Company’s pipeline through global partnering and commercialization efforts.

Meet the ManoceptTM Precision Targeting Platform

Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) is developing multiple precision-targeted products based on its ManoceptTM platform. This state-of-the-art platform enhances patient care by identifying the sites and pathways of disease, enabling diagnostic accuracy, clinical decision-making, and targeted treatment.

Navidea’s Manocept™ platform is predicated on the ability to specifically target the CD206 mannose receptor expressed on macrophages. Macrophages play important roles in many disease states and are an emerging target in many disorders. This flexible and versatile Manocept platform acts as an engine for purpose-built molecules that may enhance diagnostic accuracy, clinical decision-making, targeted treatments and ultimately patient care. As an immunodiagnostic tool, the Manocept technology has the potential to utilize a breadth of imaging modalities, including SPECT, PET, intra-operative and/or optical-fluorescence detection. By adding a therapeutic agent on the Manocept molecular backbone, there is the potential to develop novel, targeted immunotherapies specifically designed to selectively deliver a drug that can kill or alter disease-associated macrophages.

Through expanding its focus on developing its innovative ManoceptTM platform, Navidea presents an interesting investment opportunity in a growing diagnostics market. The Manocept platform is protected by issued patents and has been FDA- and EMEA-approved.

These approvals confirm that the product is:

  1. effective at targeting its receptor
  2. safe when dosed at a dose that is effective at targeting its receptor and
  3. the manufacturing stability and related concerns have been successfully addressed with at least one compound.

The Manocept platform serves as the molecular backbone of Tc99m tilmanocept—the first product developed and commercialized by Navidea based on the platform. Not only has the company worked on the platform for diagnostics, but Navidea has also demonstrated in numerous animal models that they can:

  1. Selectively deplete or convert the disease-causing macrophages with a short acting agent to comprehensively treat the disease by eliminating all the disease-causing agents but in a highly selective manner so that we do not
  2. Suppress or in any way diminish the immune system from reacting as needed to normal immunological stimuli.

The activated macrophage is critical to both fighting disease and, when improperly activated, causes and/or potentiates many of the most important diseases such as many forms of cancer or autoimmune diseases.

  • Cancer – potentiating the immune system’s support of the tumor via production of VEGF, numerous checkpoint inhibitor ligands, proteases crucial for metastasis etc.
  • Autoimmune diseases – via production of TNF alpha, superoxide’s, IL-12, increase T1’s and many other pro-inflammatory chemokines and cytokines)

Growth in Immuno-Diagnostics Market

There is a steady growth being predicted and witnessed in the Global Immunodiagnostics Market which is projected to reach $17.8 billion by 2022 with CAGR of 7.3%[6] and $22.7 billion by the end of 2025.[7]

For Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) there is an opportunity to capitalize on the growing performances of its diagnostics stock peers, while also targeting the precision medicine market  as well.

The Precision Medicine Market is projected to be worth $85.5 Billion by 2025, growing at a CAGR of 9.9%.[8]

Diagnostics Peer Stocks

Envisioning a World Where Disease can be Precisely Identified and Treated

Beyond Rheumatoid Arthritis, Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) is also developing other prospects in its diagnostics pipeline, including:

  • Cardiovascular Disease (CVD)
    • 92 million Americans living with CVD
      • 1 in 3 US adults
    • Phase 2 Study ongoing
    • Leading cause of death in the US
  • Kaposi Sarcoa (KS)
    • Orphan Disease that is highly life threatening in a minority of patients
    • Phase 2 Study ongoing

Developing Drug Delivery Model with World-Class Partnerships

Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) is also pursuing the drug delivery model, meaning the company will continue to develop the core technology and focus its efforts on providing potential partners, who will fund and manage the commercialization efforts for specific applications of interest to them, with products designed to maximize the performance and value for specific indications. 

Navidea’s plan is to partner the existing imaging agents and to continue to develop new indications using existing funds, grants and partner payments.

For example, oral or topical formulations for chronic inflammatory conditions; for CNS indications, products that cross the blood brain barrier; for cancer, longer-acting more-powerful agents; and for therapeutics, they have plans to spin out Macrophage Therapeutics and raise venture capital funding to enable expanded IP and product development for acute indications and orphan diseases while continuing to expand partnering discussions for larger indications.

On March 3, 2017 Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) completed the sale of the North American rights to Lymphoseek® to Cardinal Health 414, receiving approximately $82 million at closing. Navidea will have the opportunity to earn up to $227 million of additional consideration through 2026, with $17.1 million guaranteed over the next three years.

Impressive Management Team and Board Leading the Way

The Management Team and Board of Directors of Navidea Biopharmaceuticals, Inc. (NYSE:NAVB) are leaders in research, development, and commercialization of precision diagnostic and radiopharmaceutical imaging agents.

The company is led by CEO, CFO and COO Jed A. Latkin, a former Portfolio Manager at Nagel Avenue Capital, ING Investment Management, and Morgan Stanley Investment banking.Latkin previously served as CFO of Viper Powersports, CEO of End of Life Petroleum Holdings, CEO of Black Elk Energy, Portfolio Manager of Precious Capital and CFO of West Ventures. He currently serves on the boards of the Renewable Fuels Association and Buffalo Lake Advanced Biofuels

He’s joined by Chief Compliance Officer, William Regan, who served as Principal of Regan Advisory Services (RAS) consulting on all aspects of regulatory affairs within pharma, biotech and diagnostic imaging business, including PET, contrast agents and radiopharmaceuticals. Prior to RAS, Regan managed radiopharmaceutical manufacturing, quality assurance, pharmaceutical technology and regulatory affairs at Bristol-Myers Squibb (BMS), also serving as global regulatory head for BMS’ Medical Imaging business

Chief Medical Officer, Dr. Michael Rosol brings training and experience in the fields of biophysics, physiology, and biological/medical imaging, with work focused on cardiovascular imaging, preclinical and clinical imaging instrumentation and applications, animal models of human disease, pathophysiology, biomarkers, and imaging in toxicological and clinical trials.

Prior to joining Navidea, Dr. Rosol has served as Associate Director in the Clinical and Translational Imaging Group at Novartis Institutes for BioMedical Research, Senior Director of Business Development at Elucid Bioimaging, Inc., Chief Scientific Officer of MediLumine, Inc., and the Head of the Translational Imaging Group at Novartis Pharmaceuticals Group.

The Navidea Board of Directors includes Michael Rice, Dr. Claudine Bruck, Dr. Kathy Rouan,and Adam Cutler.

Rice is a founding partner of LifeSci Advisors, LLC and LifeSci Capital, LLC, companies which he co-founded in March 2010. Prior to co-founding LifeSci Advisors and LifeSci Capital, Mr. Rice was the co-head of health care investment banking at Canaccord Adams, and a Managing Director at JPMorgan/Hambrecht & Quist. Mr. Rice currently serves on the board of directors of RDD Pharma, a specialty pharmaceuticals company.

Dr. Bruck is co-founder and has served as Chief Executive Officer of Prolifagen LLC, and is a member of the board of directors of QRPharma. In 1985, Dr. Bruck joined GlaxoSmithKline (“GSK”) to build GSK’s HIV vaccine program. In her role in GSK’s vaccine group, Dr. Bruck was instrumental in the development of GSK’s HPV vaccine (Cervarix), and headed their cancer vaccine program from inception to Phase 2 before joining the drug discovery group of GSK

Also with a GSK connection is Dr. Rouan who was appointed SVP and Head of Projects, Clinical Platforms and Sciences for the pharma giant. The PCPS organization within GSK encompasses the Global Clinical Operations, Statistics and Programming, Clinical Pharmacology, GCP Quality, Third Party Resourcing and Project Management functions and includes approximately 1,800 staff in 20 countries.

Adam Cutler currently serves on the Board of Directors for Inmed Pharmaceuticals, and joined Molecular Templates, Inc. as its Chief Financial Officer in November 2017. Prior, he was Senior Vice President of Corporate Affairs for Arbutus Biopharma Corporation, where he was responsible for investor relations and contributed to the company’s business development and corporate finance efforts. Mr. Cutler has also worked as a biotechnology equity research analyst with Credit Suisse, Canaccord Genuity, JMP Securities, and Bank of America Securities.

8 Reasons to Further Examine
Navidea Biopharmaceuticals, Inc. (
NYSE:NAVB)

  1. Insider buying / holdings: With recent major insider buying activity, and the fact that insiders account for over 72% of the outstanding share structure, makes Navidea very attractive to us.
  2. Focus on Rheumatoid Arthritis because it involves over 1M patients in the US, creating a $39B drag to the US Economy, and servicing the 2nd largest drug category globally.
  3. FDA/EMA-approved diagnostic product, the ManoceptTM platform is effective at targeting its receptor, with safe dosage and manufacturing stability.
  4. Non-invasive imaging targeting CD206 receptors on Activated Macrophages offers potential for effective treatment.
  5. Experienced management team and board with successes in portfolio management and drug development with major pharmaceutical companies, including GSK.
  6. Proprietary FDA- and EMEA-approved delivery system that targets a receptor expressed only on activated macrophages.
  7. Overcoming lack of biomarkers in the market to guide treatment selection and/or monitor response.
  8. Allows physicians an inside look at their patients’ developments, including early indication of treatment effectiveness.

As any investment in the stock market, investing in any security can be risky. Investors should do their reasonable due diligence by reading the risks and uncertainties as detailed in the company’s most recent 10-Q and 10-K filings with the SEC.

The Editors
USA News Group


Sources:

[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4845363/

[2] https://www.healthline.com/health-news/rheumatoid-arthritis-heavy-cost-to-patients-economy#1

[3] https://www.ncbi.nlm.nih.gov/pubmed/30589626

[4] https://www.ihealthcareanalyst.com/global-rheumatoid-arthritis-drugs-market/

[5] https://www.rheumatoidarthritis.org/treatment/

[6] https://www.alliedmarketresearch.com/immunodiagnostics-market

[7] https://www.fortunebusinessinsights.com/industry-reports/immunodiagnostics-market-100444

[8] https://www.grandviewresearch.com/press-release/global-precision-medicine-diagnostics-therapeutics-market

https://fintel.io/n/us/navb


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