Buzz on the Bullboards: Who’s Hot in Energy, Tech, & Cannabis

(Via @Recon_Africa on Twitter.)

From short-term healthcare bets to long-term energy plays, and the swings of the cannabis market, small-cap investors have had their hands full keeping up with the markets in 2021.

The latest hot stock has constantly been changing yet, through it all, long-term stocks in more consistent sectors like metals and mining and industrials have quietly made their moves. While the market fundamentals strengthened around them, they were focused on delivering results that were in the making for a long time, and now we are starting to see those results.

In this week’s Buzz on the Bullboards, we highlight some of the recent discoveries, moves, and results that have driven share price increases and propelled stocks to the top of the charts.

First up is Canadian small-cap explorer Reconnaissance Energy Africa Ltd. (TSX-V: RECO, Forum), who saw its stock shoot up more than 115% over the past week after proving in its first drill, the existence of indicators of petroleum systems in Namibia.

RECO recently released preliminary analysis of the data from its 6-2 well, the first of a three well drilling program, provides clear evidence of a working conventional petroleum system in the Kavango Basin.

The sample log yielded more than 200 metres of oil and natural gas indicators over three discrete intervals in a stacked sequence of reservoir and source rock. Following the extraction of oil from these samples, the company pointed to these results as an indication of an active petroleum system with multiple source intervals.

With the results of the well confirming a big potential for a very valuable energy resource for the country and therefore a significant development for Namibia onshore exploration efforts, the Namibian Minister of Mines and Energy, Hon. Thomas Alweendo called this a great period for the people of Namibia, with the results of the well confirming a big potential for a very valuable energy resource for the country. Even Namibia’s President singled out RECO’s success in his address to the nation.



Gold miner Novo Resources Corp. (TSX-V: NVO, Forum) recently announced a $22 million private placement by issuing special warrants at $2.55 per warrant.

The proceeds from the offering will be used to fund new exploration efforts in the Pilbara region of Western Australia, to continue the development of the Beatons Creek gold project, and for general corporate working capital purposes. The company is commissioning its flagship Beatons Creek gold project while exploring and developing its highly prospective land package in the Pilbara region of Western Australia.

One of more underrated companies to be found in the Metals and mining top 6 is Erin Ventures Inc. (TSX-V: EV, Forum) who just entered into a Letter of Intent with Temas Resources Corp. for the joint development of Erin's Piskanja Borate Project, its boron deposit with an indicated mineral resource of 7.8 million tonnes (averaging 31.0% B2O3), and an inferred resource of 3.4 million tonnes (averaging 28.6% B2O3).

Both parties have recently concluded their due diligence process with a favourable outcome, and are now working to complete a definitive, binding agreement based on the terms in the LOI. It is anticipated that the definitive agreement will be completed imminently.



PyroGenesis Canada Inc. (TSX-V.PYR, Forum) signed an agreement with a tier-one global aerospace company to qualify its additive manufacturing powders.

The aerospace company will perform a standard qualification process required before PyroGenesis can become an approved supplier. The process will evaluate PyroGenesis' manufacturing methods, test powder samples for batch-to-batch consistency and determine mechanical and chemical properties.

Larger volumes of powder will be used to print test coupons to further evaluate mechanical and chemical properties. The company expects that testing with real parts under real-time conditions will be in order before final acceptance. Upon passing all acceptance tests, PyroGenesis will lock the process down specifically for the aerospace company with no additional modifications permitted.

PyroGenesis’ Chief Executive Officer P. Peter Pascali called this agreement with one of the world’s largest aerospace companies a very significant achievement in further validating PyroGenesis’ additive manufacturing powder offering utilizing its NexGen production, which provides significant cost and production advantages.

“It is important to realize that the qualification process is not only exhaustive and time-consuming, but also quite costly for this aerospace client, which we believe underscores their confidence in the added value and competitive differentiation of our offering.”


(PyroGenesis Canada Inc. stock chart – November 2020 to April 2021. Click to enlarge.)

Datametrex AI Ltd. (TSX-V: DM, Forum) announced this week that it had completed more than 30,000 polymerase chain reaction (PCR) tests for the Film and Production industry in Toronto, Vancouver, and Montreal, and sold over 40,000 1 Copy PCR test kits during March.

PCR testing is a method used to rapidly make millions to billions of copies of a specific DNA sample and the manufacturer has confirmed that these tests can detect the new variants which is key as we navigate the ongoing third wave that is spreading at a rapid pace in Canada.

Datametrex’s Chief Executive Officer Marshall Gunter noted that this is expected to bring a further increase in revenue.
“With the new Brazil and UK variants spreading, management feels that continued testing will be necessary for the foreseeable future as part of the answer to keep people safe and sound.”

---

---

Kontrol Energy Corp. (CSE: KNR, Forum) has added Danby Appliances to its BioCloud manufacturing team and a manufacturing strategic partnership between Kontrol, OES Inc. and Danby.

The strategic partnership will mean that OES will handle global supply chain, project engineering and production of the electronic components and Danby will focus on final assembly and scaling production.



There has been some interesting activity in the cannabis market this week, with much of the chatter among investors circling around Leamington ON-based licensed producer Aphria Inc. (TSX: APHA, Forum) and Nanaimo, BC-based cannabis licensed producer Tilray Inc. (NASDAQ: TLRY).

Both companies announced an arrangement under Ontario’s Business Corporations Act where Tilray will acquire all of the issued and outstanding Aphria shares. Aphria Shareholders will receive 0.8381 of a Tilray share for each Aphria Share held, while holders of Tilray Shares will continue to hold their Tilray Shares with no adjustment to their holdings.

The deal to close the giant merger between Aphria and Tilray will take about two weeks or more to finalize. While Aphria said its shareholders overwhelmingly approved the transaction with 99.38% support, Tilray said it will extend its voting deadline to April 30th to allow its shareholders more time to vote on the deal. Tilray, which has one of the largest retail investor bases in the cannabis sector, also announced it would amend its bylaws to allow a lower number of voters to meet quorum, moving its requirement down to one-third of all outstanding shares rather than a majority of shareholders.

HEXO Corp. (TSX: HEXO, Forum) recently filed a new preliminary short form base shelf prospectus with securities regulators in each of the provinces and territories of Canada and a corresponding shelf registration statement on Form F–10 with the United States Securities and Exchange Commission. This is expected will enable HEXO to make offerings of up to $1.2 billion (CAD) of common shares, warrants, subscription receipts and units or a combination of each.


(Image via Canopy Growth Corp.)

People of la belle province have, for so long had to endure “offer void in Quebec” on any contest or prize competition that was open to contestants across the country but for once … they have something that no one else in Canada can easily get their hands on … the latest product from cannabis heavyweight Canopy Growth Corp. (TSX: WEED, Forum) – Vert (French for green, the colour of cannabis) - the company’s first Quebec -exclusive brand.

The first two strains to launch under the Vert brand are 'Green Cush' and 'Sour Kush', which will be sold via the Société québécoise du cannabis (SQDC) in dried flower and pre-roll joint formats. Vert Green Cush is a sativa-dominant strain and Sour Kush is an indica-dominant strain.

The cannabis sector has seen a bit of a revival in the marketplace as of late and a wave of new investors has arrived. This begs the question, when did you start to invest and follow the capital markets seriously? COVID has brought about new attention to investing, but many of you likely have experience that dates back to the infamous 2008 crash or earlier. Let us know in the Investor Pulse Poll survey below.

(Click on the image to cast your vote.)

Meanwhile, looking at the results from last week’s survey, it seems that a lot of you are not buying in to bitcoin’s latest rally, be it outright skepticism or plain apathy. Even so, the crypto market is still growing in greater value that it has ever seen before … how this pays off in the long run remains to be seen.



After the solid performance among many companies this week, there are many questions raised for us next week: Can the cannabis rebound stick? Will these tighter COVID-19 restrictions help flatten the curve? What companies are rising as they return to business?

For these answers and more, be sure to stay up-to-date on Stockhouse and the latest small-cap investor discussions on Buzz on the Bullboards. For previous editions: click here.

---

---

FULL DISCLOSURE: PyroGenesis Canada Inc. and Datametrex AI Ltd. are clients of Stockhouse Publishing.