Corporate: $2.3 million later, Fidelity now has 5.23pc in sleep apnoea fighter Somnomed
Health & Biotech
Health & Biotech
One of the more intriguing healthcare ASX small caps is Somnomed (ASX: SOM).
It targets sleep apnoea – when one’s throat is blocked while sleeping – through mouthguard-like devices. Yes, snoring is a symptom of this but sleep apnoea is a condition in its own right.
Somnomed shares were nearly $4 back in January 2017 but they have dropped nearly $15 million in the last two years.
Yet late last year, shares surged when its chairman apologised to shareholders for the losses. Much of these losses were incurred in the US and Somnomed is primarily focused in Europe.
This morning, investment manager Fidelity became substantial holders with a 5.23% stake. According to the substantial holder notice filed this morning, it had spent $2.3 million in Somnomed shares since mid-March – capped off with a $417,000 buy last Monday.
However Somnomed has five larger shareholders than Fidelity, including TDM Asset Management, Hamish Corlett, Australian Ethical Investment and Dottie Investments and Smart Equity EIS. According to Bloomberg, these entities hold over 60 per cent between them.
The move came only a week after one of its digital products received FDA 510k clearance – essentially meaning the FDA agrees the products are safe and effective.
Additionally Somnomed’s most recent quarter was better for the company thanks to revenue growth. Yet, it is likely the company will still record a full year loss after losing $5.6 million in the previous half year.
Shares were unchanged this morning at $1.80.
Shareholders were likely wondering if the glass would be empty or full for Kiwi glass manufacturer Metro Performance Glass (ASX: MPP). To put it simply, it’s full in New Zealand but not in Australia.
The company released its annual report today and while it still recorded an after-tax profit of $5 million, it was well down on the $16.3 million the year before. And no, this is not just banter – Australian revenue was down 9 per cent and New Zealand was up 2 per cent. Additionally, New Zealand made up 80 per cent of group revenue.
However the lower profit can also be explained by the $11 million in debt the company had repaid last year. The company blamed operational matters but expressed commitment to turn it around – noting its most recently opened factory in Tasmania just broke even.
TasFoods (ASX: TFL) are up 9 per cent today after chairman Shane Noble’s AGM speech was released ahead the shareholder’s meeting this morning. In it he said he wanted the business “to be a $100 million revenue business within the next three years”.
Only a week ago, the company expanded it portfolio by buying Betta Milk and Noble made clear he was looking for more. While the business lost $1.4 million last calendar year, it was a significant improvement on the $6.8 million loss recorded the year before.
The waiting game continues for the shareholders of suspended oil play American Patriot Oil and Gas (ASX: AOW). The stock has been suspended since March 12 and clearly will not be trading any time soon. It raised $1.36 million early this year but a new board found inaccurate the asseaccounting treatment. As a result, it is yet to release its half-yearly accounts.
Furthermore, a vendor offering a new project terminated the agreement. This was because as the company could not find money for the project beyond the US$1 million deposit – and this was forfeited. A condition of the underwriting agreement was that this project would complete and now they want their money back.
Some investors did not even receive their shares; by mistake some shares were issued to the wrong people. The company agreed to repay $1.49 million and as of this morning had paid $1.2 million.
Software play Syntonic (ASX: SYT) copped a grilling from the ASX after not being specific enough for its liking regarding revenue from a recently acquired the assets of a Brazilian business. The company’s half-yearly report in February disclosed $2.8m in revenue.
Syntonic told the ASX that Syntonic Brazil had was responsible for $3.6m in group revenue between July 2018 and March 2019. Confused? This is because a new revenue accounting standard had been adopted since the previously provided figures.