ASX Tech Stocks: Singular Health branches out with GeoVR Joint Venture for mining industry
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The company jumped 7.01% today after announcing a JV with TerraCentric Pty Ltd (a nominee company of FlowCentric Technologies) under the name of GeoVR.
This comes after a successful pilot project with FlowCentric Technologies which created the digital twin of a tenement, drill hole data and demonstrate retrieval of near real-time data from the field.
GeoVR is aimed at commercialising the GeoVR technology, which allows for mineral exploration and production data to be visualised in a fully interactive 3D environment.
“This GeoVR JV is a critical step in both the streamlining and commercialisation of Singular Health Group, combining the domain expertise of FlowCentric Technologies with our proprietary IP to access and commercialise sectors outside of medical markets,” Singular CEO Thomas Hanly said.
“Strategic JVs such as this enable Singular Health to focus on our core activities in the medical technology sector whilst still benefitting from diversification of revenue streams and being able to develop translational skills and knowledge which augments our medical software.”
Singular will maintain full ownership of the core Volumetric Rendering Platform IP which is anticipated to be licensed to the JV once commercial sales have been achieved.
And GeoVR has already received an initial dataset and scope from a potential client in South Africa for an early-stage Proof of Technology (POT), which will be completed by the end of November 2021.
SKS was up 5.6% off the back of higher forecast earnings than previously expected for 1H FY22 due to strong organic growth in the underlying operations, as well as the additional earnings derived from the APEC Technologies acquisition.
The acquisition is anticipated to deliver around $6.5 million in sales revenue growth for the current half of FY22, while growth in SKS Technologies’ core business is expected to achieve additional sales revenue of a further $8.5 million.
With these increases, sales revenue is now forecast to be approximately $28 million for 1H FY22 – a 112% increase over the previous corresponding period.
EBITDA is forecast to increase by approximately 25% to $1.3 million, with profit before tax expected to be 36% higher at $0.9 million for the first half of FY22.
The company said that the 1H FY21 EBITDA and profit included JobKeeper and other Covid-related government incentives of $1.2 million, whereas the current upgraded forecast has been achieved without such receipts.
Up 2.7% was Nitro Software after launching its non-renounceable entitlement offer, which along with its institutional placement will fund the acquisition of Connective NV, Belgium’s leading eSign SaaS business.
Last week the company completed the institutional component of the Entitlement Offer and $80 million Institutional Placement, which together raised around $117 million.
The retail component of the entitlement offer is expected to raise around $23 million.
“The acquisition is in line with Nitro’s product-driven strategy, significantly accelerating and enhancing Nitro’s eSign, eID and document workflow capabilities as customers increasingly demand high-trust and automated signing solutions,” executive chairman Kurt Johnson told shareholders.
“Following the acquisition, Nitro will be well positioned as a global player in the fast-growing enterprise eSign market,” he said.
The company was unchanged today, even after launching subscription licensing for its Snare cybersecurity product.
“We are beginning to see more customers choose to deploy Snare Central in the cloud as consumer and business technology markets have shifted towards a subscription economy,” Prophecy CEO Brad Thomas said.
“For a range of enterprises — including Yum Brands and the University of Sydney — this enables customers to align spend to ongoing operating budgets and presents an opportunity for them to procure Snare using Opex rather than Capex.
“We are pleased to embrace this new model along with our customers, so from today we have made the entire Snare solutions suite available on a subscription basis.
“We expect this shift to strengthen our relationships with our customers, allow us to deliver them the innovation and support they need, boost our rates of adoption and renewal, and have a positive impact on Prophecy’s growth in annualised recurring revenue (ARR).”
The company also extended a multi-year reselling agreement with Verizon for an additional 12 months.
Adslot was also unchanged, despite the successful resolution of its historical R&D Tax Incentive claim for FY2016 and its appeal to the Administrative Appeals Tribunal (AAT).
The company has reached a full and final settlement with Innovation and Science Australia (ISA) in respect of the AAT appeal where ISA has retracted the adverse findings regarding R&D activities that were previously deemed ineligible – and has confirmed the majority are now found to be eligible R&D activities.
The Australian Tax Office will now reassess the company’s FY2016 tax return, which Adslot expects will result in a tax refund of approximately $1.5 million.