Updates on Three Penny Stocks: YOW, IPD, SW1

Companies trading at a price less than $ 1 are classified as penny stocks. These stocks also have a low market cap. Discussed below are three penny stocks listed on the Australian Securities Exchange and operating in different sectors.

Yowie Group Ltd

About the Company: Yowie Group Ltd (ASX: YOW) is a global brand licensing company, which develops consumer products that are designed to encourage learning, understanding and engagement with the environment and ecology via adventure.

For character-moulded, chocolate inclusion product, Yowie confectionery, the company uses its intellectual property rights in the outsourcing of its production and marketing.

Recent update/s: On 19 July 2019, the company released an announcement, giving an update related to the change of interest of substantial holder, Wilson Asset Management (International) Pty Limited (WAMI) and members of the Wilson Asset Management Group, in YOW.

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Earlier, the substantial holder held 60,519,595 fully paid ordinary shares of the company and had a 27.79% voting power. As per the announcement, the substantial holding has been revised to a direct interest in 18,041,961 fully paid ordinary shares of YOW with a voting power of 8.28% and a deemed interest in 40,277,634 fully paid ordinary shares of YOW with an 18.50% voting power.

Stock Performance: The shares of YOW have generated a negative return of 21.31% in the previous six months. By the end of the trading period on 19 July 2019, the price of the shares of YOW was $ 0.073, up 1.389% as compared to its previous closing price. YOW has a market capitalisation of $ 15.68 million and approximately 217.75 million outstanding shares.

ImpediMed Limited

About the Company: ImpediMed Limited (ASX: IPD), operating in the healthcare sector, is involved in the business of developing as well as selling medical devices that are used for identifying and monitoring human disorders and diseases.

IPD Products (Source: Company’s Website)

Recent update/s: On 19 July 2019, the company released an announcement, in which it responded to the query raised by the ASX related to a change in price in IPD’s securities.

ASX raised a query to IPD on 18 July 2019 if there was any information that it has not announced to the market, which might explain the trading of the securities from a low of $ 0.13 to a high of $ 0.165 since the close 5 trading days ago. In response, the company stated that it does not have any information related to IPD which has not been updated to the market.

Based on a negative response to the first question, ASX had asked the company if there was any other explanation as to what might have influenced the trading in its securities. IPD answered to this question, stating that it does not have any explanation regarding the increase in the share price except the completion of the entitlement offer.

ASX also wanted to know if the company is complying with the Listing Rules, especially Listing Rule 3.1, for which company confirmed that it is in compliance with the Listing Rules, and in particular Listing Rule 3.1.

Finally, ASX had asked the company to confirm that its responses to all the questions asked had secured authorisation and approval under its published continuous disclosure policy or from its board or an officer of IPD with delegated authority from the board to respond to ASX on disclosure matters. ImpediMed Limited confirmed to have issued the responses in line with its continuous disclosure policy.

On 19 July 2019, the company also announced the completion of its fully underwritten non-renounceable entitlement offer, which was opened on 5 July 2019 and closed on 16 July 2019. Under the offer, eligible shareholders have the opportunity to subscribe for 1 new share for every 3 shares in the company of which they were the registered holder as at 7.00pm (AEST) on 2 July 2019. The shares have an issue price of $ 0.11 per new share.

Before costs and expenses, the company expects to raise $ 13.9 million from the entitlement offer. New shares have an issue date of 24 July 2019 and are likely to start trading on a normal settlement basis on ASX on 25 July 2019.

Stock Performance: The shares of IPD have generated a negative return of 21.65% in the previous six months. By the end of the trading period on 19 July 2019, the price of the shares of IPD was $ 0.150, down 3.226% as compared to its previous closing price. IPD has a market capitalisation of $ 58.99 million and approximately 380.55 million outstanding shares.

Swift Media Limited

About the Company: Swift Media Limited (ASX: SW1) is a provider of diversified technology, content and advertising solutions. It is the largest digital media platform in Australia, serving multiple industries.

Recent update/s: On 19 July 2019, Swift Media Limited provided its preliminary results (unaudited) for the full year ended 30 June 2019. The total revenue of the company during the period increased by 11% to $ 24.8 million as compared to the prior corresponding period (pcp). The annualised recurring revenue (ARR) surged by 18% on pcp after the acquisition of Medical Media in the month of February 2019.

For FY2019, the company expects its EBITDA to be around $ 2.5 million. There were various new contracts which were supposed to get finalized in FY2019; however, they got delayed. If these new contracts would have been finalized during the period, further improvement in EBITDA was anticipated. Meanwhile, the company expects these delayed contracts in resources and aged care to boost earnings in the first half of FY2020.

By the end of FY2019, SW1 had a cash balance of $ 1.4 million and $ 1.0 million in unused working capital facility. The company plans to release its audited results by 31 August 2019.

Stock Performance: The shares of SW1 have generated a negative return of 24.14% in the previous six months. By the end of the trading period on 19 July 2019, the price of the shares of SW1 was $ 0.230, up 4.545% as compared to its previous closing price. SW1 has a market capitalisation of $ 34.16 million and approximately 155.25 million outstanding shares.


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