Unfortunately, war is the daily media lead. We get the numbers of dead and injured for each conflict. You might consider those just injured as ‘lucky’ if you’re like me. Au contraire. Familiar issues are traumatic brain and spine injuries. Alongside lost limbs and wounds caused by bomb debris and emotional symptoms such as PTSD and depression that may persist for years, sometimes a lifetime. (Xaigham.com)
For life-saving technologies, war has unfortunately become a growth sector. I take no pleasure in saying that.
A sudden, traumatic blow to the spine (tSCI) can fracture, dislocate, crush or compress one or more of the vertebrae. A gunshot or knife wound that penetrates and cuts the spinal cord also can cause a spinal cord injury. Additional damage usually occurs over days or weeks.
The global Spinal Cord Trauma Treatment market was valued at US$ 2458.9 million in 2022 and is projected to reach US$ 3009.4 million by 2029, at a CAGR of 2.9% during the forecast period. The influence of COVID-19 and the Russia-Ukraine War were considered while estimating market sizes.
The current Middle East conflict was not included. Unfortunately, those projected growth numbers could rise significantly.
While I am using the wars and conflicts as examples of the growth of the traumatic injury market, it was already significant and this is just the US.
The question arises: how is this issue addressed? There are myriad companies, large and small, looking for answers.
TORONTO and HAIFA, Israel, Jan. 05, 2024 (GLOBE NEWSWIRE) — NurExone Biologic Inc. (TSXV: NRX) (FSE: J90) (NRX.V) (the “Company” or “NurExone”), a biopharmaceutical company developing biologically-guided exosome therapy for patients with traumatic spinal cord injuries.
How does it work? Stay with me; it’s pretty straightforward.
Part One: Active Ingredients
Exosomes: Exosomes, also known as extracellular vesicles, are nano-sized, naturally occurring particles in the body, secreted by cells. Exosomes, also known as extracellular vesicles, are nano-sized, naturally occurring particles in the body, secreted by cells. Can be administered non-invasively, intranasally
Part Two: Delivery
ExoTherapy: Exosomes, loaded with therapeutic molecules, cross the blood-brain barrier and reach cells and tissues for regeneration, rewiring and recovery.
Part Three: Effect
SiRNA-PTEN: The suggested PTEN inhibition-based therapeutic targets are nerve growth and regeneration after injury or damage, treatment of cardiac ischemia/reperfusion and associated disease, wound repair, and infertility.
The goal is to reverse this traumatic brain trauma as well as develop other health issues such as depression—no small accomplishment. The US FDA has granted NRX Orphan Drug Status.
The Orphan Drug Designation program provides orphan status to drugs and biologics for rare diseases that meet specific criteria. Orphan drug designation provides incentives, including:
“Orphan-drug designation is expected to streamline our go-to-market, shorten our regulatory process, save the Company millions of dollars, and provide valuable market exclusivity. We appreciate the formal recognition of the potential impact of our therapy on the lives of patients suffering from acute spinal cord injuries,” said Dr. Shaltiel, CEO of NurExone Biologic, Ltd.
The Company also holds an exclusive worldwide license from Technion and Tel Aviv University for developing and commercializing the technology.
This technology is not only promising but appears well destined for success. In their totality, the current NRX out-front therapies could bring much relief to those seriously ‘injured’ patients who live with chronic pain and myriad challenges daily.
NurExome is a cutting-edge medical technology company. While trading has been modest, it paints a positive investment picture for the previously reasons stated. Will it pop tomorrow? No. That I can guarantee.
A savvy plan would to be to approach as a dollar-cost average investment. The deeper you dig, the more potential will become apparent.
Note Hyperlinks below.
Stock stats Jan 5 2024 | |
52 Week Range | 0.1000 0.4200 |
Volume | 7,000 |
Avg. Volume | 4,511 |
Market Cap | 14.475M |
Beta (5Y Monthly) | N/A |
PE Ratio (TTM) | N/A |
EPS (TTM) | -0.1100 |
Earnings Date | N/A |
Forward Dividend & Yield | N/A (N/A) |
Ex-Dividend Date | N/A |
1y Target Est | 4.01 |
In-depth Corporate Presentation Litchfield Research |
Usha Resources is a junior exploration company focusing on exploring and developing early-stage high-grade precious and base metal projects across North America (TSXV: USHA, OTC: USHAF, FRA: JO0). The company announced early in the year that it had received the necessary approval for the spin-out of Formation Metals. It is now working to fulfill the remaining closing requirements, which include getting the TSX Venture exchange’s final approval of the arrangement.
Company Overview
Usha’s business strategically negotiates and buys precious metals and early-stage battery projects with low start-up costs. The company transforms its properties from an idea, into a highly prospective project with immediate upside potential. The Company performs prudent due diligence under the supervision of its highly experienced and diverse board and technical team.
The company owns three up-and-coming projects: the Lost Basin-gold copper, Jackpot Lake lithium, and Nicobat nickel-copper-cobalt projects. Usha Resources seeks to develop into a best-in-class mining company by responsibly and safely pursuing the essential metals needed for tomorrow’s global economy.
Jackpot Lake Project (Flagship Property)
The Jackpot Lake Lithium Brine Property comprises 140 mineral claims covering 2,800 acres and is situated in Clark County, 35 kilometres northeast of Las Vegas, Nevada (approximately 11.3 km2). The geologic model is comparable to that of Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, which has been in continuous operation since 1966. The project target is a 5 x 2 km anomaly that was found based on the following research, which points to the presence of a highly concentrated brine:
U.S. Drastically Increasing Battery Production
Source: https://www.visualcapitalist.com/chinas-dominance-in-battery-manufacturing/
With China currently winning the E.V. race and dominating the Lithium supply chain, drastic measures are being taken in the USA to encourage both loca minings of Lithium and domestic production of Battery Manufacturing.
Recent North American Initiatives to combat China’s Increased Dominance
With both Republican & Democrat lawmakers concerned about China, they’ve signed the most significant E.V. legislation in history designed to outcompete rivals in China & Europe.
“Since U.S. President Joe Biden signed the bill into law August 16, at least five major EV manufacturers and battery minerals suppliers, including Toyota Motor Corp., L.G. Energy Solution Ltd. and Piedmont Lithium Inc., have announced billions of dollars worth of investments in the domestic production capacity encouraged by the legislation. The bill expands tax credits for E.V.s and includes domestic sourcing requirements to promote the development of a local E.V. supply chain to form the backbone of Biden’s clean energy policy.”
As shown in the above image, since the bill came into effect, billions of dollars in investment have come in from Manufacturers.
The Legislation seeks to move the far-flung battery supply chain into the U.S. and allied nations such as Canada and Australia. The legislation created a tax credit equivalent to 10% of the cost of production for certain critical minerals used to manufacture E.V.s, including aluminum, lithium and graphite.
The bill also contains measures to implement the Defense Production Act, which may boost domestic critical minerals processing. Companies making lithium-ion battery cells for E.V.s will enjoy a tax credit of $35 per kWh for each cell produced, trimming off a significant portion of the cost, and battery makers will get a tax credit of $10 per kWh on battery modules.
All of which are beneficial for Producers.
The Nevada Advantage
USHA’s Flagship Lithium property is primarily located in Clark County, about 35km NorthEast of Las Vegas, and comprises 140 mineral claims over 2,800 Acres.
The good thing about the project is that the geological setting is very similar to Albemarle’s Silver Peak Nevada Lithium Mine. That mine has been producing lithium and has been continuous since 1966.
Figure 3 – 3D model of Usha’s Jackpot Lake interpreted lithium brine target. The interpreted geophysical target with borehole locations overlain on the local topography produced using Maptek Vulcan. The surrounding formations of the Muddy Mountains are theorized to be the source of lithium in the area. The shell shown in yellow comprises geophysical results indicating resistivities of <5ohm metres.
USHA’s Current Drill Program
The company has actively drilled over 2,700 meters over six holes and intends on commending its maiden drill program to establish a 43-101 resource. Suppose the similarities to Albermarle’s deposit prove consistent with the Jackpot Lake property. In that case, we may see sediments from lithium‑rich surrounding source rocks accumulate and fill the deposit leading to a potential concentration of lithium brine due to subsequent evaporation and concentration events.
Previous Work Done on the Property
The current drill program was spurred by previous findings, which suggested to management that this must be followed up.
The following historical work has been completed that suggests the presence of a highly concentrated brine with the potential to contain lithium:
Source: Website
Lithium Pricing
The Macro picture for Lithium is pretty wild. Lithium prices gained 442.8% in 2021 and ended 2022 up another 72.5%. Most of this is due to rising demand that isn’t going away anytime soon.
“Gigafactories,” –Elon Musk’s once-novel word for his five battery factories worldwide–will soon be regarded as a major part of the critical national infrastructure. There are over 300 battery gigafactories in the global pipeline, ensuring strong demand.
SpinOut Catalyst
When the market values your company as less than the sum-of-the-parts, management often divests property so that shareholders realize gains. USHA has announced plans to spin-out out their Nicobat property in Northwest Ontario to unlock more excellent value for shareholders.
Nicobat Project Summary
Nicobat is a nickel-copper-cobalt project in the Rainy River District in northwest Ontario, Canada. Mine development is ongoing in the area, with excellent access to roads, trains, power, and water. A 1,860-meter, 10-hole drilling program that Crystal Lake Mining completed in 2015 proved the existence of high-grade nickel-copper shoots that are significantly better than those previously noted in the historical drilling program (Drill hole A-04-15 intersected a weighted average of 1.05% nickel and 2.18% copper from the surface to 63.75 meters.)
Of course, 99.76% of voting shareholders voted in favour of the spin-out. Each USHA shareholder will receive one common share of Formation Metals(the spin-out company) for every 5 USHA shares they hold on the record date.
This could be a catalyst for the USHA share price as you may get some investors buying before the Ex-Dividend date to receive the “free” Formation Metals shares.
Share Structure/Financials
The company shared its financial statements for September 30, 2022. Usha has a solid balance sheet with $1.6M in cash for no debt. Usha Resources has few expenses as the company spent less than $300k, and the highest costs were for consulting fees. Usha Resources has a beautiful share structure. Indeed only 35.6M shares are issued and outstanding, 2.3M options and 8.5M warrants are available.
Despite the TSXV’s valuation decrease, the company’s market cap remained relatively steady, showing strong interest from investors. The stock price is worth $0.28 and witnessed a 52-week range variating from $0.205 to $0.39.
Comparables to Other Nevada Projects
Bottom Line
Usha Resources (TSXV: USHA, OTC: USHAF, FRA: JO0) is well-funded ($1.6M in cash), has a tight share structure (35.6M shares outstanding), and their crown jewel Jackpot Lake property checks the right boxes in taking advantage of U.S. growing ambitions to outcompete China in the E.V. and lithium space.
Approving the previously announced proposed spin-out of its wholly owned-subsidiary Formation Metals Inc. Varshney providing a 20% “share dividend” to shareholders at no cost brings excitement to the company. The company is attractive and shows much upside.
For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.
Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)
Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;
‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.
Let’s go.
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