What Investors Need To Know About 3 Small-Cap Stocks – BD1, YPB, PEC

In order to gain returns from the stock market, it is very important for investors to keep a track on stocks, which are making strong operational progress. The below-mentioned stocks have made substantial development in the recent past in terms of operations. Let’s take a look at these small-cap stocks.

BARD1 Life Sciences Limited (ASX: BD1)

BARD1 Life Sciences Limited (ASX: BD1) is engaged in the research and development (R&D) of non-invasive diagnostic tests for early detection of cancer-based on certain proprietary intellectual properties. As per the FY18 Annual Report, the company owned five patent families with nine granted and 19 pending patent applications covering various BARD1 DNA and protein sequences, methods of diagnosis and treatment, and use in multiple cancers.

The company recently updated investors about the development of BARD1 autoantibody tests. The management communicated that the transfer of BARD1 technology to the Luminex platform is on track, involving four phases: (a) Phase 1 included an assay feasibility phase, which took place to confirm that BARD1 autoantibody assays are transferrable to the Luminex platform. This Phase 1 was completed in December 2018; (b) Phase 2 was an assay development phase, which optimised the multiplex BARD1 autoantibody assay on the Luminex platform and was completed in June 2019; (c) Phase 3, which is an assay validation phase, authenticated the multiplex BARD1 assay. The phase also witnessed the commencement of pilot production of RUO BARD1 kits, which is progressing well with the delivery of three working pilot test kits for assessment and likely to get completed by 4Q CY19; (d) Phase 4 will be the manufacturing transfer with preparing transfer documents to enable manufacturing and delivery of RUO BARD1 kits. The date of completion for Phase 4 is not determined yet.

The company also advised that the successful completion of the transfer of BARD1 technology to the Luminex platform, if achieved, would be an important milestone and will enable the company for further product development and commercialisation.

Under a contract development agreement with Thermo Fisher Scientific, the company is in the process of developing an RUO (research use only) kit in Austria, which is going well as per the terms of the technical milestones and scheduled completion. The RUO kit comprises 22-plex Peptide Marker Panel to detect human antibodies for BARD1.

BARD1 autoantibody tests’ commercial development will necessitate an agreement with Luminex for commercial use rights. With the completion of the development of the RUO BARD1 kit, the company intends to work with Luminex to develop a commercial diagnostic version.

The company recently updated the market about its European patent validation for core lung and colorectal cancer patent family.

At the market price of $0.025, the market capitalisation for the company stands at $36.04 million on 1st July 2019. The stock has gained ~109% in the short period of three months, with a 52-week high and low price of $0.073 and $0.010, respectively.

YPB Group Limited (ASX: YPB)

YPB Group Limited (ASX: YPB) is engaged in the sales, marketing and development of anticounterfeiting, anti-theft, product authentication and consumer engagement solutions to brand owners globally.

The company, as on 1st July 2019, provided an update about its recent activities, achievements as well as the strategic and commercial focus for 2H19. YPB has streamlined and improved its operational efficiencies and the effectiveness related to its operations and sales workforce across the group. The company has cut down its workforce related to finance and administration. Moreover, other operational efficiencies are expected to lead to a substantial lower operating cost profile from July onwards. The full effect of cost savings is likely to be witnessed over the September quarter 2019, following a review of the company’s current sales activities and prospects for the greatest sector adoption of YPB’s products.

YPB is targeting the food and beverage, pharmaceuticals and Cannabis industries, as these sectors witness the requisite and willingness to adopt its solutions. It intends to expand its client base through leveraging the present distribution channels. The company further stated that the salary expenses for the duration of June quarter 2018 to June quarter 2019, declined ~46%. Consequently, the Non-Executive Directors have moved to zero cash as a sign of commitment and support for the broader restructuring and future of YPB.

The company has consolidated its sales team as well and has been working with its key channel partners to chart out the operational plans for its product distribution. As a result, revenues from China have witnessed a significant increase as reported at the recent AGM of the YPB.

Importantly, the company has signed its first sales agent in Indonesia. YPB has selected PT Meidanum Imperii for the sales and distribution of its products into medical equipment and packaging in the beauty, cosmetics, food and beverage and baby products sectors.

The company also mentioned about its recent successful commercial launch of the Vintail technology with Seppeltsfield Wines, which was considered to be a milestone for YPB. The management expects its sales workforce will extend the adoption of Vintail solution in the Wine industry in the second half of 2019.

The company also pointed out that the immutable ledger with the incorporation of blockchain is likely to strengthen the brand and consumer perception of authenticity through recording key data points, including scans of YPB’s products on the blockchain.

The company’s globally unique and highly protected IP suite ‘Motif Micro’ is progressing well and the management considers it as a substantial milestone on the technical roadmap front. The curved-surface smartphone readability of Motif Micro is undergoing the final stages of testing. The company expects to update the market on this matter in the September quarter 2019.

YPB recently informed that the Esquel Group, for their major brand clients, has incorporated the company’s Anti-Counterfeit tracer thread into their clothing.

At market close, the stock at a price of $0.006 ended with the gain of 20% during the day’s trade on 1 July 2019. With the market capitalisation of $4.58 million and 52-week high and low price of $0.038 and $0.005, respectively, the stock is trading close to its 52-week low. Looking at the price performance, the stock has exhibited negative of ~78% in the last one year.

Perpetual Resources Limited (ASX: PEC)

Perpetual Resources Limited (ASX: PEC) is engaged in the exploration of silica sands with its flagship asset, the Beharra Project in Western Australia.

The company recently informed that it has entered into an exclusive ‘Option’ to acquire a 100% legal and beneficial interest in the two silica sands projects, namely Sargon and Eneabba, located north and south of Beharra Project, respectively.

Sargon project is located 45 kilometres from Geraldton Port via the Brand Highway. GSWA (Geological Survey of Western Australia) has confirmed the same host unit of high purity silica sands at Beharra Project and VRX Silica’s Arrowsmith Project.

Eneabba covers a total land area of 35.34 kilometres and is surrounded on the eastern extent by both the Brand Highway and Geraldton Railway. The company is planning the mapping and reconnaissance sampling to start in the upcoming weeks.

As the per the terms of the agreement, the acquisition of tenements will be completed through the issuance of 665,333 shares at a deemed issue price of $0.03 per share. The vendors will retain a 1% gross revenue royalty for all minerals extracted, produced and sold from the projects.

As far as silica sands market is concerned, the uses include lower purity and grade applications such as construction sand, proppant sand used in well fracturing and foundry sand. Uses for purity >99.8% includes semi-conductor fillers, LCD screens, and optical glass.

The company earlier updated about the commencement of its initial auger drilling program at Beharra.

The stock of PEC at market close was trading at a price of $0.030, with a market capitalisation of $7.44 million on 1st July 2019. With the 52-week high and low price of $0.060 and $0.010, the stock has gained ~114% in the last six months.


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