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Latest Updates on MJ Terra Tech Corp (OTCMKTS:TRTC)

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Terra Tech Corp (OTCMKTS:TRTC) has seen several big moves over the past year on massive volume; the stock is one of the top traded MJ stocks in small caps. Recently TRTC has fallen some and may see another test of $0.20 support.

TRTC is running as pot stocks have heated up going into the election. The red hot Marijuana industry has quickly turned into a multi-billion dollar massive growth market that is sweeping across the Country with many new states legalizing the drug including Oregon and California likely next.

Terra Tech Corp (OTCMKTS:TRTC) is one of the original pot stocks on the OTC led by Derek Peterson “The Public Spokesperson for Medical and Legalized Marijuana.” TRTC is the only US-based, publicly-traded company that touches every aspect of the cannabis lifecycle—from cultivation, to extraction, to branding, and now, with the acquisition of Blum, to retail sale.

Derek Peterson is a former Vice President at Morgan Stanley. He left Wall Street because he saw a huge opportunity in medical marijuana. His vision is setting up growing facilities in various states to grow herbs such as basil and thyme with plans to switch to Marijuana production as state laws permit.

TRTC has a number of subsidiaries including Edible Gardens which was established in 2007 and proves fresh, locally grown herbs and leafy greens to supermarkets, restaurants and the food service industry. The growing process utilizes time-tested, classic Dutch hydroponic farming methods to grow produce in a safe and healthy environment.

Another TRTC subsidiary is IVXX Elevate focused on building a recognizable, superior brand that delivers unsurpassed quality and consistency to consumers of recreational and medical cannabis throughout the legal U.S. markets. TRTC has their own lab producing their IVXX branded Marijuana products which are now sold in many California dispensaries.

Terra Tech’s pre-filled cartridges are offered in a variety of cannabis strains which are easy-to-use and are conveniently designed for vaporizers as well. IVXX Z92 cartridges have a Tetrahydrocannabinol (THC) content level between 75 to 85 percent compared with the 60 to 68 percent of the Z35s. Made from local, sustainably grown cannabis that has been cleanly extracted using supercritical CO2, the oil is lab-formulated for consistency, and lab-tested for purity and potency. Through its low heat refinement technique and a unique filtering method, the Company maintains the natural terpene profile of each strain. There is no reintroduction of terpenes or flavor enhancers at any time in the process, as is true with all IVXX products.

TRTC has an agenda to move to a higher exchange which may necessitate a reverse split and there has been much discussion on this recently. Everyone seems to think that RS is bad and usually results in lower PPS as the result of panic selling etc., but if we really examine the issue we come to an entirely different conclusion. Yes in almost all cases when a non-revenue, sub penny co with a history of dilution does another RS it almost always ends in more downside. At the other end of the spectrum when an established Company such as TRTC that already does significant revenues does a RS it almost always results in significant moves to the upside.

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A big part of TRTC recent rise is due to their recent acquisition of Black Oak Gallery, DBA: Blum Oakland, an established, retail medical cannabis dispensary in Oakland, CA which holds over 42,000 registered patients, has been operating since November 2012 and services close to 1,000 patients each day. The acquisition includes Blum’s fully integrated supply chain, which consists of a sophisticated onsite cultivation facility, its portfolio of proprietary strains, as well as its high volume retail storefront. Trailing 12-month non-GAAP revenue for Blum Oakland is over $14 million, which tracks the revenue reported by Blum Oakland in its associated sales tax and marijuana tax reporting and payments.

On December 15 TRTC announced its subsidiary, Edible Garden (or the “Company”), a retail seller of fresh, hydroponic herbs and produce, has added two contract farmers to its cooperative of local growers of fresh and local produce. The addition of these new farmers, based out of Virginia and New Jersey, bring the Company’s national contract farmer count to eight.

The new contract farmers will operate under the same strict quality standards as the Edible Garden’s existing cooperative member farmers. By selecting only the highest quality farmers the Company ensures its produce is consistently of the highest standard. In addition to supplying their own very best herb and lettuce products, the farmers will also grow, cut, pack and ship Edible Garden’s living SUPERLEAF™ Spring Mix lettuce, which is exclusively licensed to the Company, for supermarket stores in the Northeast and Mid-Atlantic region.

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Currently trading at a $146.24 million market valuation TRTC is the only US-based, publicly-traded company that touches every aspect of the cannabis lifecycle—from cultivation, to extraction, to branding and to retail sale. This gives TRTC a huge advantage because on-site cultivation reduces that cost to about $700 per pound, while the company’s retail price will remain at industry levels 5 to 10 times higher. TRTC is turning into a Revenue leader reporting $9.7 million in sales for Q2 2016 alone. However the Company is still losing money reporting a $4.9 million or $0.01 per share loss in Q2. Derek Peterson “The Public Spokesperson for Medical and Legalized Marijuana” is a master at selling the sizzle on the sector and getting their story into the national media spotlight with such news outlets as the Wall Street Journal, National Geographic, Fox Business News, The Huffington Post, the Daily Telegraph and CTV news all covering TRTC in the past. We will be updating on TRTC when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with TRTC.

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Disclosure: we hold no position in TRTC either long or short and we have not been compensated for this article.

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2 Comments

2 Comments

  1. Mike

    December 21, 2016 at 5:36 pm

    If TRTC does a reverse split it will be the end of the stock and their entire company. A stock being traded OTC is the exact opposite of an “established company,” in fact, it’s exactly where *unestablished companies* go to be traded. Anybody who does enough due diligence on TRTC and their reasons for trying to pull a fast one on investors through a RS, will quickly learn of insiders true intentions and their ulterior motive to increase their overall control of the stock via voting power, and ultimately, dilute any and all remaining value from the shareholders investments while their preferred stock remains unaffected in share count and value, while simultaneously giving themselves majority control of the stock. It’s sad to see them trying to pull this insider enrichment crap, as Derek Peterson is clearly leagues ahead of any and all of the competitions CEO’s and owners. If they don’t try to pull that BS again and continue with their business model, they’ll undoubtedly have one of the most successful companies in the US MJ sector that’s a never ending goldmine for them, as well as a solid stock that’s untouchable in this sector.

  2. Foodhound

    December 21, 2016 at 10:21 pm

    Mike, I agree with your analysis on the insider shenanigans, although I think they understand that there is far more capital to be made by staying with their vision and maintaining a progressive model and ideology. I will buy in but only if they publicly announce their vision. At the moment, they have not proven they’re they want to be the pioneers of the industry but have all the potential to be. Good work

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Energy & Resources

iSun, Inc (NASDAQ: ISUN) on the Rise: Recent Market Growth & Remarkable Momentum

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iSun, Inc (NASDAQ: ISUN) has experienced a significant surge of over 88% since November 22nd, 2023, with 12% of that increase observed within the current trading day. Similar to other Nasdaq-listed companies facing minimum bid requirement challenges, iSun has witnessed this remarkable upswing without any corresponding press releases or SEC filings to justify the sudden uptick. Looking further, we aim to uncover the underlying factors propelling this sudden rise by examining the company’s recent material events and financial performance, providing a comprehensive evaluation of what the future might hold for ISUN.

Background:

ISUN’s been in business since 1972, so quite a long while. After 47 years of being private, they decided to go public in June, 2019 and were previously known as The Peck Company.

Following the acquisition of ISUN, the company underwent a name change, becoming the entity known today. They have since taken the lead in integrating influential electrification technologies.

With a longstanding reputation as a reliable service partner for Fortune 500 firms, ISUN has a track record of installing various technologies, including clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems.

The company offers an extensive array of solar services covering residential, commercial, industrial & municipal, as well as utility-scale projects.

Highlighting the importance of shifting towards clean, renewable solar energy, it’s worth noting that ISUN is committed to seizing profitable growth opportunities by offering solar electric vehicle charging solutions for both grid-tied and battery-backed systems.

Latest Earnings:

Unlike the last few write ups, we’re fortunate to have access to more informative press releases and SEC filings for ISUN. That said, let’s talk about their latest earnings and how the business is currently performing.

Highlights by numbers:

  • Q3 2023 revenue of $27.9 million, up 47% from Q322, as continued strong commercial and industrial execution drives growth
  • YTD revenue of $70.3 million, up 39% over first nine months of 2022
  • Gross profit of $5.4 million, up 50% from Q322
  • Gross margin of 19.45%, up 45 basis points from 19.0% in 2022’s third quarter, as benefits from synergies were offset by mix
  • Awarded $27.0 million in new solar and EV infrastructure contracts in Q3 2023, with a total of $67.0 million in first nine months of 2023
  • Continuing successful execution of growth strategy, leveraging tailwinds

Okay great, both the revenue and profit margins are moving in a positive direction. In this market, let’s be honest, what truly matters is whether this long-standing company can generate profits while tackling the substantial growth potential in renewable solar energy projects.

There’s a few things worth noting from this release, the bigger point being the heavy tailwinds pushing them into record growth this year. Their commercial and industrial division showed impressive growth, achieving a 47% revenue boost and a 45 basis point increase in margins compared to the previous year. Despite challenges due to higher interest rates for residential customers, the team remains focused on seizing opportunities driven by climate policies and growing interest among customers in alternative energy solutions.

On another front, their operating loss in Q323 was ($1.8) million, a $3 million or 64% improvement compared to a loss of ($4.9) million in Q322. The cause for this? Higher revenue and lower operating expenses.

To be frank, the majority of CEOs across various industries anticipate higher productivity with fewer resources, which can be a continual source of high stress for employees actually accomplishing the daunting dask. Nethertheless, ISUN is achieving record growth with ease…

As a final thought on operating income, their YTD loss was ($6.2) million, a $10 million or 62% reduction compared to a loss of ($16.2) million during the same period in 2022.

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Thoughts from the CEO:

“We continue to make substantial progress towards the targets we set for iSun’s performance this year, as we execute on our strategy and fulfill our commitments to investors. We remain confident that our expanded capabilities effectively address the needs of more customers and position us to accelerate our growth in the evolving alternative energy sector. Our continued success in winning significant contracts with existing and new customers reflects the appeal of our platform approach that delivers a suite of services to meet the needs of diverse customers. This year, we are also benefiting from the expertise of our team in executing efficiently on our backlog to address our customers’ needs and leveraging the relationships and partnerships we have established. Now that our country’s energy policy has been established for the next 10 years through the IRA legislation passed in 2022, we expect those factors to help us scale our operations significantly in the next few years, no matter what macroeconomic challenges may persist, and thus enable us to generate steadily higher revenue and reach operating profitability in the years ahead.”

Thoughts from Retail:

Several types of traders on Twitter are actively discussing ISUN, many with tens of thousands of followers. One in particular with a 72.1K following on Twitter, @MoonMarket_, mentions he’s accumulating for potentially larger moves ahead, based on technical trends.

@greatstockpicks and @FrankieBstock, with a combined following of 58.4K, are also actively discussing ISUN. Their sentiments lean positively, indicating that the deeper they dive into the company, the more appealing it appears.

Frankie also highlights, “Wainwright has a .50 target…given the revenue, growth, low offering risk and 161m backlog I could see it going higher but let’s focus on .50 with a stop loss around .12”.

It’s certainly encouraging to witness higher attention from influential sources discussing a stock, but it’s always crucial to conduct your own research and form an independent judgment.

Ultimately, all we can do is hope for the best regarding anyone’s analysis, even reputable analysts. While they are probably more reliable than figures like Cramer, who is often criticized for his inaccuracies concerning small-cap stocks, it’s essential not to take opinions as absolute truths.

Analyst Coverage:

As mentioned, analysts might not always be the most accurate to follow, but it’s usually reassuring when individuals with robust financial backgrounds, widespread industry connections, and expertise provide their insights on a public company.

ISUN is presently under analysis by three different firms: Alliance Global, Roth Capital Partner, and H.C. Wainwright & Co. They have set varying buy recommendations and price targets for the company, with a low, median, and high range of $0.50, $2.00, and $2.75, respectively. That’s a monumental 127.4%, 809.9%, and 1151.1% increase should ISUN meet those expectations.

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What’s Next:

ISUN seems to primarily focus its market updates on financial aspects. Upon reviewing all their 2023 releases, they consistently highlight robust execution and growth, reinforcing the anticipation of total revenue reaching $95-100 million this year, indicating a 24-31% surge compared to 2022.

As mentioned earlier, ISUN currently operates at a loss, and often experiences fluctuating quarters due to the impact of high-value contracts. These contracts can significantly influence the company’s financial results.

Thankfully, ISUN holds a total backlog of $161.8 million as of September 30, 2023, ensuring a stable revenue stream as projects are finalized. The bulk of this backlog, approximately $140.3 million, pertains to commercial and industrial applications, projected to be finished within a span of 10-18 months.

As is common with non-profitable businesses, it’s crucial to stay watchful for potential near-term dilution. Fortunately, ISUN recently secured term sheets for a non-dilutive $8 term loan, providing a reassuring stance for the time being. Should the management maintain this level of execution, achieving profitability may not be far off and would be a substantial milestone.

Regarding Nasdaq’s minimum bid requirement of $1.00, ISUN received an extension until May 2024, aiming to facilitate an organic increase in their stock price without the risk of a reverse split.

Conclusion:

With a long-standing history and a shift towards electrification technologies, ISUN’s dedication to renewable solar energy and diverse services positions it for substantial growth.

The overarching market trend aligns favourably, offering support to their endeavours, while the management team’s restructuring on cost efficiencies bode well for near term profitability. Their recent earnings demonstrated substantial revenue growth, particularly in their commercial and industrial segments where they’ve overcome significant market challenges.

In the realm of undervalued micro-cap stocks listed on the NASDAQ, ISUN emerges as a compelling candidate worth monitoring closely.

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Featured

Uncovering CS Diagnostics (OTC: FZRO): Behind the 117% Gain & Market Opportunity

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CS Diagnostics Corp. (OTC: FZRO) has seen a remarkable 112% surge in its shares as of the current moment, marking a staggering total gain of 432% since November 15th, 2023. Interestingly, despite this significant increase, the company hasn’t released any press statements and we cannot find any respective SEC filings that could account for such a surge.

The absence of an investor relations section on the company’s website limits the available avenues for gathering insights. Nonetheless, we managed to uncover additional information through online forums among retail investors and a supplemental filing from the OTC markets website, posted from FZRO’s Twitter.

While these sources have provided some background, the lack of formalized information leaves us with relatively little to base our analysis on. Nonetheless, despite its recent nature, the supplementary OTC filing dated November 27th, 2023, could potentially offer a preview of FZRO’s future prospects and the potential trajectories it might pursue.

Background:

On September 4, 2023, CS Diagnostics Corp made a significant acquisition. They purchased the entire CS Protect-Hydrogel, including its tangible product, intellectual property, distribution rights, and patents from the CS Diagnostics Group, a company based in Germany. This hydrogel-based tissue spacer serves a crucial purpose in radiation therapy by creating distance between cancerous cells and healthy tissue. Essentially, it shields healthy tissue from the harmful effects of high doses of radiation.

Hydrogel Spacers:

Currently hydrogel spacers are specifically used in treating prostate cancer. In this case, the spacer helps in moving the rectum away from the prostate, thereby decreasing the damage caused to the rectum during radiation therapy. This hydrogel spacer is injected in liquid form through a thin needle into the area between the cancer cells and healthy tissue. It gradually dissolves within the body after approximately 6 months.

What’s unique about CS Protect-Hydrogel is that it’s a ready-to-use product, sterilely packed and can be directly applied. Moreover, this hydrogel can be beneficially utilized in radiotherapy treatments for a wide array of cancers such as prostate, cervical, esophageal, bladder, and breast cancers.

Competitive landscape:

Good news, there does not appear to be a highly competitive landscape for this technology. FZRO’s main competitor for hydrogel spacers would be Boston Scientific Corporation (NYSE: BSX), currently valued at USD $80 billion. The competitor product SpaceOAR Hydrogel System was developed in 2010 by Augmentix, Inc., which was fully acquired by Boston Scientific Corporation in 2018 for a fixed purchase price of USD $500 million plus a variable purchase price component of USD $100 million upon achievement of certain sales targets.

The competitor product has been further developed, and is currently marketed under the SpaceOAR Vue Hydrogel trademark, and is approved exclusively for use in prostate radiation. The product marketed by BSX consists of three components that are mixed in a predetermined sequence and drawn into a syringe by a trained and skilled person.

It’s important to note that the molecule of the CS Protect-Hydrogel differs significantly from the molecule of the competitor product, and patent infringements are not to be expected.

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Competitive Edge:

According to FZRO, their product is highly differentiated from BSX and comes with several advantages, specifically:

Practical Benefits:

  • Effortless application of CS Protect-Hydrogel as it comes pre-prepared, simplifying the process.
  • Eliminates any additional work steps.

Hygienic Advantages:

  • Immediate application of CS Protect-Hydrogel upon removal from sterile packaging, minimizing the risk of contamination.
  • Prevention of contamination from product preparation and assembly.
  • Reduction of potential hygienic risk areas within the treatment room.

Medical Benefits:

  • Elimination of the risk of incorrect mixture, preventing potential missed patient appointments.
  • Expanded application across various cancers (prostate, cervical, esophageal, bladder, and breast), enabling a broader range of treatments.
  • Feasibility of hypofractionation, reducing the number of treatment sessions per patient.
  • Potential for dose escalation, facilitating acceleration of radiation therapy.

Economic Benefits:

  • Reduced personnel costs during treatment by removing the need for assistance in hydrogel mixing.
  • Lower room utilization costs per patient due to decreased risks of re-treatment from incorrect mixtures.
  • Decreased cleaning expenses due to the ready-to-use nature of the product.
  • Minimized lawsuits or insurance claims resulting from incorrectly mixed hydrogels, reducing additional treatment requirements.
  • Lower purchase price for clinics compared to competitor products.

With easier handling, lower medical & cost risks, and expanded scope of application, FZRO expects that the respective purchasing departments of clinics (including specialty clinics) and hospitals will quickly adopt and list the CS Protect-Hydrogel in their portfolios.

Market Opportunity:

Apart from the CS Protect-Hydrogel, a competitor product enjoys widespread global use. The CS Diagnostics Group is confident that the CS Protect-Hydrogel could capture around 50% of the market share in the near future. This confidence stems from the aforementioned easier handling, reduced medical and cost risks, and broader range of applications.

The success of the CS Diagnostics Group’s use of CS Protect-Hydrogel relies heavily on how well it enters the market and the share it captures.

In a realistic scenario where it achieves a 50% market share and respective sales prices of EUR $1,100 and USD $1,900 per unit, the economic benefit as the net present value of future cash surpluses as of September 30, 2023 is a monumental EUR $961 million.

For more information on how this was calculated, click here.

Valuation & Audit:

On September 4, 2023, Tom Wrankmore, a reputable German public auditor and valuation firm, conducted an assessment certifying the value of the CS Diagnostics Hydrogel product, all previously mentioned values were taken from Wrankmore’s assessment.

It’s important to remember there’s a number of x factors involved in the valuation of FZRO, and the values calculated could be no where close to accurate if things do not go according to plan.

Considering Wrankmore’s credible expertise and esteemed status, he perceives this scenario as a plausible one. However, the successful execution ultimately falls on the management team.

It’s crucial to delve into the team’s background and track record to gauge the potential outcome accurately. Presently, there’s limited information available about the management team, which isn’t necessarily a surprise, given how recent FZRO was established.

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Acquisition & Approvals:

On September 27, 2023, CS Diagnostics Corp acquired the entire CS Protect-Hydrogel for a cost basis of Five Hundred Million USD. This acquisition was completed through the issuance of 110,000,000 shares of CS Diagnostics Corp Common Stock. Following this transaction, in November 2023, CS Diagnostics Corp submitted its 3rd Quarter Report and Financial Statements, emphasizing the acquisition of the CS Protect-Hydrogel.

This submission aimed to clarify that the company is no longer categorized as a shell company and should not be considered a “Shell Risk.”

At present, the company is actively collaborating with its partners to secure regulatory approval for CS Protect-Hydrogel from key authorities across Europe, North, and South America. This critical step is essential for the product’s recognition and acceptance in medical applications within these regions.

Following successful CE testing and certification in Germany, the process of registration or approval involves a necessary testing procedure. Anticipating the regulatory journey, the CS Diagnostics Group expects a timeframe of 6 to 12 months for approval in the U.S. Additionally, a timeline of 6 to 8 months is foreseen for the testing procedure and registration of CS Protect-Hydrogel in Germany.

Considering the existing market availability of a competitor product used worldwide specifically for prostate irradiation, CS Protect-Hydrogel does not require extensive re-introduction or advertisement for this particular application. However, extensive information dissemination and promotional efforts are crucial for establishing its use in treating other types of cancer.

Conclusion:

Obviously FZRO is still in its early phases, but Wrankmore’s assessment has certainly made it quite attractive. While it’s currently too soon to tell, we can imagine part of FZRO’s exit strategy may consider a bigger player like Boston Scientific Group (NYSE: NSX) buying them out – this all depends on how FZRO progresses and is merely speculation for now.

The recent OTC filing on November 27th, 2023, has caught the eye of many retail investors, sparking interest in the stock. Volume is picking up extremely quickly and we might not see these low levels for long. FZRO’s average trading volume is 4,514 shares and had 179,680 shares traded at the time of writing – a near 40X increase in volume after Wrankmore’s assessment.

Over the next 6 to 8 months, we expect to gain clearer insights into how well the management team can meet Wrankmore’s expectations. Regardless, we strongly advise closely monitoring FZRO during this pivotal period, as developments tend to evolve rapidly.

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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BioPharma

Apollomics (NASDAQ: APLM) Market Momentum: Pipeline Potential, Market Trends, and Retail Insights

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Apollomics, Inc. (NASDAQ: APLM) has seen a significant surge in its shares, rising by ~20% at time of writing, accumulating a staggering 58% gain since November 21st, 2023. Surprisingly, there haven’t been any noticeable press releases or filings to explain this sudden valuation shift, so it’s prompted a closer examination on our end. Fortunately enough, we found the force driving the substantial gain, but first let’s look into APLM’s background to build a better picture of the opportunity at hand.

Background:

APLM’s emergence as a public company is relatively recent, stemming from its merger with Maxpro Capital Acquisition Corp. (Nasdaq: JMAC) on March 30th, 2023. This merger also involved a $23.65 million private investment in public equity (PIPE) financing, a typical move when companies go public, aiming to secure capital. With this recent funding, APLM anticipates financial support through mid-2024, empowering the company to push forward with its ambitious lineup of 9 drug candidates.

APLM stands as an innovative player in the field of clinical-stage biopharmaceuticals, specializing in crafting cancer therapies that work hand-in-hand with the immune system and target precise molecular pathways to combat cancer. With a focus on oncology, the company boasts a lineup of nine potential drug candidates, six of which are actively progressing through clinical development stages.

Among its flagship projects are vebreltinib (APL-101), a potent c-MET inhibitor that targets multiple forms of non-small cell lung cancer (NSCLC), and uproleselan (APL-106), an E-Selectin antagonist designed to potentially enhance standard chemotherapy in treating acute myeloid leukemia.

Latest Release:

APLM recently announced significant news concerning its Chinese partner, Avistone Biotechnology, on November 11th, 2023. Avistone received conditional approval from China’s National Medical Products Administration (NMPA) to market vebreltinib. This medication is intended for treating a particular type of lung cancer known as MET exon 14 skipping non-small cell lung cancer (NSCLC).

Dr. Guo-Liang Yu, Apollomics’ leader, praised Avistone for this achievement, saying it’s a big step toward finding better treatments for tough cancers. Vebreltinib is a powerful medicine that targets how cancer cells grow. It could be a breakthrough for people with this specific lung cancer and other cancers caused by similar changes in cells.

Apollomics is talking with the U.S. Food and Drug Administration (FDA) about using vebreltinib to treat this kind of lung cancer in the U.S. They’re using data from their global study and Avistone’s study in China to do this.

It’s no secret, Lung cancer is a big problem, especially for people with non-small cell lung cancer (NSCLC), which is responsible for most lung cancer cases. This specific mutation has a significant unmet need, and APLM’s vebreltinib could be hope for those battling the devastating disease.

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Market Opportunity:

To keep things simple, we’ll continue focusing on APLM’s Vebreltinib (APL-101), which is just 1 of 9 drugs in their pipeline.

This specific drug, cultivated through a collaboration with Beijing Pearl Biotechnology (now merged with Avistone Biotechnology), appears to display considerable potential. Its appeal lies in its demonstrated safety, effectiveness, and its potential to address a specific market segment where there’s a significant demand for treatments due to unmet medical needs.

Vebreltinib (APL-101):

APL-101 is being evaluated for its potential use in combating specific types of Non-Small Cell Lung Cancer (NSCLC), and a particularly aggressive form of brain cancer, secondary glioblastoma multiforme (sGBM).

APL-101 is a Type 1b class highly selective c-MET inhibitor. More simply put, it’s a drug that effectively targets and blocks the c-MET protein.

c-MET inhibitors have a wide potential range of markets due to the involvement of the c-MET pathway in various cancers and other diseases. The c-MET receptor, also known as the hepatocyte growth factor receptor (HGFR), plays a crucial role in cell growth, survival, and migration. Dysregulation of the c-MET pathway is associated with tumor growth, metastasis, and resistance to certain therapies in multiple cancer types.

Outside of NSCLC and sGBM, Apollomics has already seen promising effects inhibiting tumors related to certain types of cancers like gastric, hepatic, and pancreatic. But to keep things simple, we’ll stick to Apollomics core focus in NSCLC and sGBM.

The Market:

According to statistics published by the World Health Organization (WHO) from February 2022, 2.2 million patients were diagnosed with lung cancer in 2020, and non-small cell lung cancer accounted for nearly 85% of all lung cancer patients.

The global non-small cell lung carcinoma (NSCLC) market is expected to garner a market value of US$ 8.25 Billion in 2023 and is expected to accumulate a market value of US$ 21.40 Billion by registering a CAGR of 10% in the forecast period 2023 to 2033.

Delving deeper into particular types of NSCLC, the market potential for Exon-14 skip mutated NSCLC, c-MET amplifications in NSCLC (denovo), and c-MET amplifications in NSCLC (resistance driven) collectively represents a 3 billion-dollar opportunity.

In contrast, the market size for the population affected by epidermal growth factor receptor (EGFR) mutated NSCLC stands at a larger 7 billion-dollar opportunity.

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SPARTA Trial: 

SPARTA is part of a larger study combining Phase 1 and Phase 2 trials, conducted in 13 countries, 90+ sites and 370+ patients worldwide. It aims to understand how safe and effective vebreltinib is in treating various cancers. More specifically, it’s looking at non-small cell lung cancer (NSCLC) with a specific genetic mutation called c-MET exon 14 skipping, as well as other cancers with c-MET amplification or fusions.

The trial involves different groups of patients: those new to treatments targeting the c-MET protein and those who have previously received such treatments for NSCLC with the mutation. Additionally, it includes patients with various solid tumors showing c-MET amplifications or fusions, including glioblastoma multiforme, a severe type of brain cancer.

The main goal of SPARTA is to measure how well vebreltinib works by assessing the overall response rate (ORR) and how long the response lasts (duration of response) using specific evaluation criteria for each type of tumor. Secondary goals involve looking at any side effects and additional measures like time to progression, progression-free survival, and overall survival.

Overall the clinical findings show that vebreltinib could be a promising new treatment for cancers caused by MET alterations, especially in Non-Small Cell Lung Cancer (NSCLC) with MetEx14 skipping mutation. In a phase 2 trial, there was 75% overall response rate in patients with advanced NSCLC.

If you’d like more formal clinical trial information for vebreltinib, it’s is available on clinicaltrials.gov under the Phase 1/2 SPARTA trial (NCT03175224).

Big Picture:

This is just 1 of 9 drugs in APLM’s pipeline, and APL-101 is just 1 of 2 key assets. With our initial examination of the company, we were taken aback by the comparatively low valuation despite the promising pipeline. Like many, there has been a considerable decline in share value since their public listing.

Now that China’s National Medical Products Administration (NMPA) has given conditional approval, the company intends to get Vebreltinib (APL-101) approved in the U.S. and has met with the FDA in July. With an existing approval by the NMPA, receiving the NDA Approval from the FDA should realistically be a much quicker process.

On top of this, more interesting developments have occurred from online sources, indicating substantial short activity, further hinting at the possibility of APLM being the next big short squeeze candidate.

What Happened & Retail Insights:

APLM seems to be gaining attention across various social media platforms, notibly Twitter and Reddit.

Numerous investors are discussing on different platforms that APLM might become a potential candidate for a short squeeze. Users have pointed out that the cost to borrow shares has risen significantly. This increased short activity seems to have also led to a shortage of available shares to borrow.

Increased buying activity is likely to intensify the pressure on short sellers, compelling them to buy back shares to cover their positions. Given today’s substantial surge in trading volume, short sellers may find themselves in a tight spot, potentially regretting their initial choice to wager against APLM.

We came across additional analysis (due diligence) about APLM on Reddit, providing concise insights. This is but one piece of content that’s drawing increased interest in the stock among retail investors.

APLM – Apollomics Inc- DD THREAD – BIO STOCK –
byu/StockProfilers inpennystocks

In recent times, Reddit has become a hub for discussions regarding stocks and potential market movements. It gained particular prominence in 2020 as a platform for detailed research and discussions about stocks, witnessed notably during the retail trading frenzy involving stocks like GME (GameStop) and AMC (AMC Entertainment Holdings).

Analyst Ratings:

Two analysts have set notably optimistic price targets for APLM, suggesting it might reach $21.00, representing a potential 1650% increase from its current value. Additional sources offer different projections, with estimates of $11.00 (an 816% increase), $14.00 (a 1066% gain), and $17.00 (a 1326% rise). It’s crucial to understand that analyst ratings are not certainties but rather projections based on their research. We commonly advise examining past coverage to assess the accuracy of analysts’ ratings and forecasts.

Conclusion:

In summary, APLM experienced a substantial surge, seemingly fueled by retail investors countering short sellers. However, beyond the retail-driven buzz speculating a potential short squeeze akin to TPST, a deeper narrative unfolds, signalling a compelling long-term proposition.

APLM’s pipeline exhibits fairly de-risked assets and promising data across multiple indications, not to mention large amount of partnership opportunities.

Analyst forecasts reflect a highly optimistic outlook, echoing positive retail sentiment. The ongoing SPARTA trial also unveils compelling data, suggesting a more profound story from a long term perspective.

Is APLM set for a short squeeze akin to TPST? Time will tell…. Nonetheless, within this realm, APLM seems fundamentally undervalued, making it a stock to keep a close eye on as more developments arise.

We will update you on APLM when more details emerge, subscribe to Microcapdaily to follow along!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by stevepb from Pixabay

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