- Biotechnology firm Mesoblast extended its loss on disappointing earnings and dropped 5%.
- Graphite producer Volt Resources dropped despite successfully raising capital via share placement.
- Medical data and technology firm HeraMED rallied 11% on securing a contact.
- Althea shares gained 15% on signing a deal with The Boston Beer Company.
- Piedmont Lithium shares dropped after the company completed a 9.9% investment in IronRidge Resources.
The Australian share market witnessed a bearish trend on Wednesday amid negative global cues as well as weak macro date. The benchmark index, ASX 200, declined as much as 1% in early trade ahead of the second quarter gross domestic product (GDP) data. However, the index pared most of early losses after the June quarter’s GDP figures topped analyst estimates. The latest data released by the Australian Bureau of Statistics showed that the GDP rose 0.7% in the June quarter.
Here are ten stocks that grabbed headlines on the ASX today:
Mesoblast extends fall on disappointing earnings
Shares of biotechnology company Mesoblast (ASX: MSB) extended their losing streak for the second day and dropped as much as 4.8% to hit an intraday low of AU$1.58 on disappointing earnings. The stock plunged 15% on Tuesday after its annual earnings failed to impress market.
The company has reported a net loss of US$98.8 million in the 2021 financial year, while sales revenue dropped 77% year-on-year to US$7.5 million.
Volt Resources raises AU$5.75M via share placement
Graphite producer and battery anode material developer Volt Resources (ASX: VRC) saw its shares tumble as much as 6.6% to AU$0.028. The company has successfully raised AU$5.75 million via share placement.
The original target was to raise AU$4 million but strong demand from the existing shareholders as well as new sophisticated investors, funds and institutions prompted the company to raise the limit of the final capital amount.
The fund raised will be used to commercialise the development of battery anode and other downstream graphite products in Europe and the United States. A part of the fund will be also utilised to drive the Zavalievsky Graphite business and complete Lithium-Ion Battery (LIB) cycling testwork on Bunyu graphite.
HeraMED secures contract from Catalonian govt
Shares of medical data and technology firm HeraMED (ASX: HMD) rallied as much as 11% to AU$0.20 on securing a contact.
The company said in an exchange filing that it has been shortlisted by the Catalonian Government’s qualification process for technologies in obstetrics.
OceanaGold resumes operations at New Zealand mines
Shares of gold miner OceanaGold (ASX: OGC) fell 1.95% to AU$2.51 following an ASX update.
The company, in an exchange filing, said that it has resumed operations at the Macraes and Waihi mines, after the New Zealand government eased COVID-19 restrictions for all regions, except Auckland and Northland.
The operations were suspended on August 16 following the government’s directive to implement a country-wide COVID-19 Alert Level Four lockdown.
As per the company, the gold production in New Zealand will drop to 4,000-5,000 oz this year due to the two-week long shutdown along with other strict public health norms.
Metcash issues business update
The share price of supermarket business Metcash (ASX: MTS) slipped 2.4% to AU$3.98 after it issued a trading update.
The company’s sales dropped 1.8% for the 16 weeks ended August 15, 2021, as against the same period in the last fiscal. Total food sales also fell 7.4%, compared to the prior corresponding period. However, liquor sales surged 9.5% during the period under review.
Althea inks US$3.42M deal with The Boston Beer Company
Shares of cannabis-based pharma company Althea (ASX:AGH) rallied 14.9% to AU$0.27 on signing a US$3.42 million deal with The Boston Beer Company.
The drug maker said that its subsidiary, Peak Processing Solutions, has inked pact with BBCCC, Inc., a subsidiary of The Boston Beer Company Inc. and WeedMD to launch a new range of cannabis infused beverages in Canada.
As per the release, the parties have struck the exclusive agreements under a project, covering product development, manufacturing, and supply, of BBC-branded non-alcoholic cannabis-infused beverages in Canada.
EBOS Group completes acquisition of Sentry Medical
Shares of EBOS Group (ASX:EBO) fell 0.4% to AU$34.48 after it completed the acquisition of Sentry Medical.
The acquisition is supposed to strengthen its presence in distributing medical consumables to the institutional healthcare market, a growing business for EBOS.
Piedmont Lithium acquires a 9.9% stake in IronRidge Resources
Shares of Lithium focused Piedmont Lithium (ASX:PLL) dropped 2.5% to AU$0.78 after it completed a 9.9% investment in IronRidge Resources (IRR). In July this year, the company had signed a share subscription agreement.
The company has also entered into an earn-in agreement via staged investment in IRR’s Ghana lithium project to acquire a 50% stake. It believes the investment will maximise its lithium potential in Ghana, and help it become the leading Lithium producer in North America.
SILK Laser Australia completes acquisition of Australian Skin Clinics, Cosmetic Clinic
Shares of SILK Laser Australia (ASX:SLA) climbed 4.2% to AU$4 after it completed the acquisition of Australian Skin Clinics (ASC) and The Cosmetic Clinic in New Zealand.
The acquisition of ASC Group featured an upfront cash consideration of AU$47 million and an additional AU$5 million earn-out in scrip. After the acquisition, SILK’s current network of 63 clinics will be boosted by the addition of 55 clinics. This brings SILK closer to achieving the Company’s network plan of 150 clinics in the medium term.
4DMedical commences clinical pilot with I-MED network
Medical imaging solutions provider 4DMedical (ASX:4DX) fell nearly 1% to AU$1.58, paring opening gains.
The company has signed an agreement with I-MED Radiology Network (I-MED) to commence phase two of a clinical pilot program. I-MED is Australia's largest outsourced provider of radiology, having over 200 clinics nationwide.