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TSX-V: APV
Rob Bakshi, CEO
www.apivio.com
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OTCQX: IEGH
Paul Mathieson, CEO
www.investmentevolution.com
TapImmune Inc.
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CONTENTS
STOCKNEWSNOW.COM
FALL 2016
F E AT U R E D A RT I C L E S
30 MicroCap Guru
By Jim Collins
Resources Corner
Legal Corner
Charts
76 Cyber Security
By Yoram Golandsky
Cannabis Corner
Opinion
Comic Strip
81 What Am I Buying?
By Chris Lahiji
77 New Formations
By David Alsup
Proled Companies
Commodities Corner
68 Commodities in Review
By Mark Shore
Asia Corner
Accounting Corner
www.stocknewsnow.com
8 TapImmune Inc.
OTCQB: TPIV
PROFILED COMPANY
tapimmune inc.
otCqB: tPiV
leVeraGinG tranSlational
MeDiCine reSearCH at Mayo
CliniC
CliniCal DeVeloPMent
www.stocknewsnow.com
Sponsor:
IND Holder
Collaborators
Status
Indication
Study Design
Mayo Clinic
(MC1015)
Tapimmune
Completed
22
Breast and
Ovarian
Cancer
Phase I
Safety & Immune
Response
TapImmune
(FRV-002*)
Multiple Sites
Recruiting
First patient
treated
80
TNBC
Phase II
Dose & Boost
Safety & Immune
Responses
Sloan
Kettering
Cancer
Center
(FRV-003**)
AstraZeneca
Tapimmune
Recruiting
First patient
treated
40
Platinum
Resistant
Ovarian
Phase II
Combination with
durvalumab
Time to disease
progression
Mayo Clinic
TapImmune
Planned 2016
Start
280
TNBC
Tapimmune
(FRV-004)
Multiple Sites
Planned 2016
Start
80
Platinum
Sensitive
Cancer
Phase II
Time to disease
progression
Phase II
Time to disease
progression
* clinicaltrials.gov/ct2/show/NCT02764333?term=TapImmune&rank=2
** clinicaltrials.gov/ct2/show/NCT02764333?term-ovarian+AND+Jason+Konner&rank-1
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EXPERIENCED MANAGEMENT
AND DEVELOPMENT TEAM
TapImmune has established a top-tier management and development team that can
execute the Companys plans. Chairman
& CEO, Dr Glynn Wilson has a broad
background in Product & Corporate
www.stocknewsnow.com
nySe: SFe
PROFILED COMPANY
BuilDinG Value
Safeguards team of experienced entrepreneurs,
board members, financiers and operators drive
opportunities to transform early- and growthstage partner companies into high-traction market leaders. Safeguards ability to deploy capital,
build value and realize value rests in large part
on its deal team, which tirelessly identifies and
thoroughly analyzes partner company prospects.
Safeguards methodical screening process distinguishes opportunities in which Safeguard can
add value and drive growth, striving to achieve
aggregate cash-on-cash returns of at least two-
11
PROFILED COMPANY
12
IEG Holdings Corporation, which does business under the brand Mr. Amazing Loans,
is the realization of several long journeys
through finance, coupled and leveraged with
a decade of financial evolution. Mr. Amazing
Loans is the refined outcome of its Founder,
CEO, and Chairman Paul Mathiesons background in finance which includes over
21 years financial industry experience in
lending, funds-management, stock market
research and investment banking and a
former Mathieson-led, Australian-based
business model that lent ~$48 million to
over 11,500 customers in the mid-2000s.
Having realized success in using a prior,
less-efficient, technology and capital-constrained model Mathieson relocated to the
US in 2008 to replicate the base-platform
model already established; utilizing cash
flow from the runoff of the Australian loan
book to fund the current US setup and
utilizing the much improved global technology infrastructure to improve the second
iteration of the model. On the back of the
success of the Australian Mr. Amazing Loans
business was born a more evolved, more
FinTech leveraged model that has expanded
on the foundation of its quasi-predecessor.
I believed I could set up a consumer loan
business and do it better than competitors
with superior branding, professional management and a much more cost-effective
a ProBleM, a Solution, a
50% aPPliCation rate
With a customized, fully-integrated frontend website portal, back-end loan processing
system, credit checking system, bank statement retrieval system, and multiple lead providers, Mr. Amazing Loans is a web-based
property that has a cycle-tested 50%-plus
application rate from prospects. The end
result of this highly-efficient top to bottom
prospect-funneling system is a platform with
a low customer acquisition cost and a great
customer experience. This matters when
realizing that the Mr. Amazing Loans targeted consumer finance market tops out at ~$80
billion in the US alone. In Australia, using a
predecessor model that was both technology
and capital constrained, Mr. Amazing Loans
captured a 10% market share.
Our product is significantly cheaper, at
23.9%-29.9% per annum, than the long established payday lending market that has been
charging over 300% traditionally. In addition, other businesses are based on shortterm, high returns whereas Mr. Amazing
Loans possesses a model where were helping
the consumer and doing what the government intends. Weve received a lot of support
for our model and consumers appreciate the
differences. Mr. Amazing Loans $5,000 loan
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A Unique Dynamic
Due to the significant regulatory and capital
barriers to entry, there are only a handful of direct competitors to Mr. Amazing
Loans; including: OneMain Financial, Avant,
Lending Club, and Prosper which are all
capitalized at over $1.5 billion. Mr. Amazing
Loans indirect-competitors are credit card
lenders, payday lenders with multiple
storefronts and legacy physical infrastructure issues, online high-rate lenders, and
tribal lender companies operating via tribal
exemptions. Mr. Amazing Loans competitive advantages over these lenders include
a significantly lower overhead driven by
its highly-lean online model, its superior
branding, its targeted marketing strategy, its
affordable weekly repayments, and a strict
regulatory compliance.
The advantages Mr. Amazing Loans has
over its competitors stem from the speed of
online application and funding for the client; without compromising our high-hurdle
underwriting standards we can take a loan
from application to funding within hours
of application completion, said Mathieson.
He added, Another key advantage is the
low weekly repayment cost of our loans
only being $37.03 a week (principal and
interest repayment) for a $5,000 loan over
www.stocknewsnow.com
Available States
Planned States
13
14
Sustainability Isnt
Complicated, Neither Is The
Future
IEGH has a highly scalable business model
with low customer acquisition costs that
operates in a data-defined zone of risk optimization. IEGH operates in a financial vertical with strong barriers to entry and where
regulatory pressure will require competitors
to attempt to obtain licenses or buy a group
such as IEGH in order to continue to operate. IEGH is an emerging growth microcap
company in the truest sense and although it
still needs to further ramp up its volumes in
the US, it has a proven business model that
15
PROFILED COMPANY
16
Figure 1: Rob Bakshis vision combines desktop phones and smartphones into the Apivio Systems Monet desktop
smartphone.
FROM HARDWARE TO
ENTERPRISE APPLICATIONS
While the cell phone industry has experienced tremendous innovation with the
advent of apps on Android and iPhones,
the enterprise phone market has remained
stagnant. With the Monet phone, enterprises
www.stocknewsnow.com
17
NEC has more than 3,000 dealers globally and over 700 dealers in North America
alone. The dealers are the first line of contact
with the customer. NEC trains and educates
their dealers so that they have all the right
tools to sell the NEC suite of products and
services. With desktop smartphone applications, NEC dealers can leverage their existing customer base to sell new Monet phones
and productivity tools and apps for recurring revenue streams. NEC communicates to
Apivio, ideas and comments from customers who ask for customized apps to serve
their specific needs. Apivio choses to build
some apps, whereas the rest are built by the
Android app development community.
to identify and convert business opportunities into products and establish partnerships
with large enterprises for sales and marketing. For company information, please visit
Apivios Website at apivio.com. For regulatory documents and financial filings, please
visit www.sedar.com. n
The company paid consideration to SNN or its affiliates for this article.
19
20
www.stocknewsnow.com
RESOURCES CORNER
n NICK HODGE
www.stocknewsnow.com
So
lets
talk
about
uranium.
That other metal thats supposed to be in a
bull market by now.
Its had all the classic markings of a coming bull market for several years now. Fear
subsiding after Fukushima. Japanese restarts.
Rapid nuclear growth in China, Russia, and
India. Sustained low prices that took enough
supply offline to correct the balance.
Indeed, the price of uranium has been
below $50 per pound for nearly four years
now, and is below $30 now. At current
prices, more than half of primary supply is
underwater.
These low prices are at a time when the
outlook for nuclear energy and therefore uranium demand remain robust. The
U.S. has nearly 100 operable reactors. China
could have that in a decade. There are more
than 200 reactors being built, licensed to be
built, or in advanced planning worldwide.
The International Energy Agency (IEA)
has said the world needs to double its current
installed nuclear capacity to 930 gigawatts
by 2050 to meet the international goal of
limiting the global temperature rise to two
degrees Celsius by the end of the century.
As the world continues to build out its
nuclear fleet, a uranium shortfall scenario
could emerge fairly quickly, which is why
many banks and analyst are calling for much
higher uranium prices in the longer term.
Prices right now arent high enough to
spur new production. But over the next
decade that will have to change as the world
needs to bring 80 million pounds of new
21
PROFILED COMPANY
22
23
evaluate the resource. The company has currently identified about 1.6 million pounds of
uranium with an average grade of about 1%
U3O8 contained in 83,000 tons of inferred
resources. However, they hope to significantly expand the resource through underground drilling and upgrade the resource to
a higher classification.
Finally, the company has a number of
other future production sources, including
three large conventional projects currently in
permitting. The Roca Honda Project in New
Mexico is one of the largest and highestgrade resources in the U.S., and the company has a published preliminary economic
assessment (PEA) which estimates average
annual production of 2.7 million lbs. of
uranium for nine years. Roca Honda is also
within trucking distance of the White Mesa
Mill which has ample excess capacity so
there is a fully licensed and operating facility available to produce this resource. The
Henry Mountains Project in southeast Utah
is another large resource within trucking distance of the White Mesa Mill. The company
has a NI 43-101 report which shows that
Henry Mountains has indicated uranium
resources totaling 2.4 million tons with an
average grade of 0.48% containing 12.8 million pounds of uranium, along with inferred
uranium resources totaling 1.6 million tons
with an average grade of 0.47% containing
24
8.1 million pounds of uranium. The company has a 3rd major conventional project the
Sheep Mountain Project located in central
Wyoming. Energy Fuels published a NI
43-101 preliminary feasibility study (PFS)
that estimates average annual production of
1.5 million pounds of uranium over 15 years.
As recently as 1980, the U.S. was the
Worlds largest producer of uranium, and
in the coming years, the U.S. could become
a major player again. That bodes well for
Energy Fuels, since the company has the
management and technical team to execute
on their growth strategy. Management has
decades of experience in all phases of the
U.S. uranium mining industry. President
and CEO, Steve Antony, has worked in
the U.S. uranium mining space since the
mid-1980s, including stints with Mobil Oils
uranium division, Energy Fuels Nuclear, and
Power Resources. Harold Roberts, who runs
all of the companys conventional operations, including the White Mesa Mill and
the Canyon Mine, has over 30 years of
experience with the companys assets. Paul
Goranson oversees all of Energy Fuels ISR
production and is a recognized leader in
this method of production. The company
also recently added Mark Chalmers as Chief
Operating Officer. He previously served
as Executive General Manager for Paladin
www.stocknewsnow.com
HELPING
BUSINESSES
NAVIGATE
SINCE 1912
www.stocknewsnow.com
SmithLaw.com
25
P R O F I L E D C O M PA N Y
26
PCT is a patented, enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high
levels (up to 90,000) to safely, conveniently
and reproducibly control the actions of molecules (i.e., inactivate, break (lyse), liberate, extract, and/or prepare for downstream
analysis) from biological samples, such as
cells and tissues from human, animal, plant,
and microbial sources. The Company is
focused on the development and sale of PCT
systems (instruments and consumables) to
address the challenging problems inherent
in biological sample preparation, a crucial
laboratory step performed by thousands of
scientists worldwide working in biological
life sciences research.
Sample preparation is a term that refers to
a wide range of activities that precede most
forms of scientific analysis. Sample preparation is often complex, time-consuming, and
one of the most error-prone (but crucial)
steps of scientific research. It is a widely-used
laboratory undertaking, the requirements of
which drive a large and growing market, estimated currently at approximately $6 billion
worldwide. PBIs PCT systems can be used
to exquisitely control the sample preparation process. PCT uses internally developed
instrumentation that is capable of cycling
pressure between ambient and ultra-high
levels, at specific temperatures and time
intervals, to rapidly and repeatedly control
the interactions of bio-molecules, such as
DNA, RNA, proteins, lipids, metabolites,
2320EXT, the next generation PCT instrument expected to be the centerpiece of its
co-marketing program with global life sciences leader SCIEX. The Company also
announced that six presentations were made
on the advantages of the PCT platform at a
recent key scientific conference.
May 18, PBI announced Q1 2016 financial
results, including a 16% increase in total
revenue and a 26% increase in products and
services revenue.
April 7, PBI announced the close of its
$5M PIPE at an over-subscribed amount of
$6.3M. All five of the Companys Board of
Directors participated in the final tranche of
the PIPE. The Company also announced
that 100% of its floorless debt had been
eliminated, without any lender converting its
loans into Company shares.
January 28, in a report focused on the
exclusive co-marketing agreement between
SCIEX and PBI, Emerging Growth LLC indicates the combination of the two companys
technologies could result in superior biological insights and discoveries and in rapid and
dramatic revenue growth for PBI.
January 12, SCIEX, a global leader in life
science analytical technologies, and a whollyowned subsidiary of Danaher Corporation
(NYSE: DHR), announced a two-year, exclusive, worldwide co-marketing agreement
with PBI to improve protein quantitation in
complex samples. n
For more information about PBI, please click on the
following website link:
http://www.pressurebiosciences.com
Please visit us on Facebook, LinkedIn, and Twitter
The company paid consideration to SNN or its affiliates for this article.
27
28
www.stocknewsnow.com
P R O F I L E D C O M PA N Y
otCqB: rGnP
www.stocknewsnow.com
29
F E AT U R E D A RT I C L E
MicroCap Guru
W
n BY JIM COLLINS
30
www.stocknewsnow.com
MicroCap Guru is a
monthly email newsletter
that delivers actionable insights
from a MicroCap expert.
Macro Context
The MicroCap Guru will also provide research
driven analysis on the overall MicroCap market and
attractive subsectors within the MicroCap universe.
Subscribe Now at
MicroCapGuru.com
www.stocknewsnow.com
Yearly
Subscription
$595
31
F E AT U R E D A R T I C L E
xcerpt from the Planet MicroCap Podcast, Episode 21 The Cyclical Nature of Investing in Resources with
Rick Rule, U.S. Sprott Holdings, Inc.
n BY RICK RULE
32
www.stocknewsnow.com
33
34
www.stocknewsnow.com
PROFILED COMPANY
www.stocknewsnow.com
The Company enjoys cash flowing royalties emanating from gold production on
Nevadas world famous Carlin Trend. In
addition, EMX has a stream of advance royalty payments from organically grown royalty properties that have yet to reach production. Royalty payments, in addition to funds
received from partners for periodic property
payments, milestone payments and management fees, help to cover operating expenses
and provide capital to quickly exploit emerging business opportunities.
At the heart of Eurasians business model is
Prospect Generation. EMX, as many of the staff
call the company, acquires early-stage mineral exploration properties with unrecognized
upside, advances the project on a low cost
basis, and then seeks partners with the geologic expertise and funding to further advance it
to discovery and onto production. This methodology is very similar to the bio-tech model
of developing new pharmaceuticals.
The Companys preferred M.O. is to execute agreements where partners can earn
a 100% equity interest with work commitments, milestone payments and advance
royalty payments, with EMX retaining a
35
PROFILED COMPANY
theralase
technologies inc.
tSX-V: tlt, otC Pink: tltFF
36
37
www.stocknewsnow.com
F E AT U R E D A RT I C L E
n BY MARGARET ROSENFELD
www.stocknewsnow.com
outreach can help evaluate how such shareholders may be influenced by proxy advisory
firm recommendations, anticipate or avoid
shareholder proposals or determine the
impact such shareholders may have on vote
outcomes. Your company will need to carefully control the timing and content of all
disseminations of information, from quarterly earnings releases to tweets by senior
management, to ensure that only appropriate
information reaches the public marketplace.
These are just a few areas that will draw
increased time and attention from your companys personnel once public. The process
of going public can appear overwhelming.
After what sometimes feels like a crash
course on permissible marketing, the finalization of offering materials and ringing the
bell draped in your companys logo, the value
of being prepared for the transition into the
rest of your public life cannot be underestimated. n
Partner Margaret Rosenfeld has more than 20 years
of experience with public companies and she leads
the global Microcap practice at Smith Anderson
law firm (SmithLaw.com). Founded in 1912, Smith
Anderson is the largest business and litigation law
firm headquartered in the world-renowned Research
Triangle region of North Carolina. Smith Anderson
provides a full range of legal services to a diverse
group of regional, national and international companies and is well-versed in assisting small public
companies with initial public offerings, ongoing
public reporting and corporate governance requirements, structured financings such as PIPEs, registered directs, CMPOs, rights offerings, ATM/equity
lines, convertible preferred and convertible debt, and
alternative financings under Title II, Title III and
Title IV of the JOBS Act. Smith Anderson is proud
to have represented Groundfloor Finance as the first
company to qualify an offering under Regulation A+.
For more information, please contact Margaret
Rosenfeld at mrosenfeld@smithlaw.com or 919-8216714.
39
F E AT U R E A RT I C L E
s Reg A+ deals begin the rigors of marketing and taking reservations from potential investors can you explain the process of converting a reservation into an actual buy? What is the process and who
does it?
n BY DAVID WEILD
AND DANIEL BARFIELD
WEILD & CO.
40
You are a well-known and sophisticated person in the small company space, whats your
opinion on the state of Reg A+ at this time?
MicroCap Review Magazine 10 Year Anniversary Issue
41
F E AT U R E D A RT I C L E
42
Regulation A+ offering.
Other challenges like the requirement for
placement agents to submit to a FINRA Rule
5110 compensation review, the lack of preemption for secondary transactions in securities, the
inability of public companies to use Regulation
A+, and the sometimes disjointed process of
depositing Regulation A+ securities in a brokerage account are also worth mentioning.
Overall Regulation A+ will provide issuers
with greater access to capital and allow for
online capital formation. Challenges exist,
but they are not insurmountable and will
be overcome as the number of successful
Regulation A+ offerings increase. n
Mr. Bevilacqua is the founding member of Bevilacqua
PLLC (www.bevilacquapllc.com), a boutique transactional corporate and securities law firm. He is
also co-founder, President and General Counsel
of Digital Offering LLC (www.digitaloffering.com),
a FINRA registered investment bank. Previously,
Mr. Bevilacqua was a partner in the Corporate and
Securities Group at Pillsbury Winthrop Shaw Pittman
LLP and held that position since October 2008. Mr.
Bevilacqua counsels companies of every size ranging
from entrepreneurs with just an idea to established
companies whose securities trade on the NYSE or
NASDAQ. He has broad experience representing
issuers in public offerings and private placements
of securities, Exchange Act compliance, angel and
venture capital financings, and other areas of equity
and debt financing. Mr. Bevilacqua also advised his
clients on mergers, acquisitions and other business
combinations, including roll up transactions. Mr.
Bevilacqua has several years of experience working
with microcap public companies whose securities are
quoted on the Over-the-Counter Bulletin Board, and
he understands the special needs of these companies.
He also represented companies with international
operations, including companies based in the Peoples
Republic of China and Taiwan, Republic of China,
Latin America, Europe and Australia. Mr. Bevilacqua
graduated Cum Laude from Fordham University and
obtained a Juris Doctor from Fordham University
School of Law where was a member of the Order
of Coif. Mr. Bevilacqua is Chambers ranked in
Capital Markets (International Firms) (Experts Based
Abroad) and USA Capital Markets: Debt & Equity
(Foreign Experts).
www.stocknewsnow.com
F E AT U R E D A RT I C L E
n BY DANIEL MULCAHY
www.stocknewsnow.com
Reg A of Title IV of the Jobs Act, is potentially the biggest opportunity for investors to
gain exposure to promising growth companies in the last 80 years. You do not need to
be an accredited investors to invest in these
new Mini IPOs and you do not need to have a
brokerage account at a major brokerage firm.
Below is a brief summary of the potential
benefits available for investors and issuers alike into what are being called Reg A
securities .
Its all relative, but Reg A+ allows investors to be early investors. Are you an early
investor if you buy in at $1BN valuation?
These companies are significantly smaller
than whats become the norm for traditional
IPOs and could be better compared to the
IPOs of the 80s and 90s; Microsoft raised
$61M in their 1986 IPO (inflation adjusted
$122M). Reg A+ IPO companies cant have
more than $75M in public float and can only
raise $50M. Is it easier to go from $10M to
$50M in revenue or from $100M to $500M?
Allows private companies to raise new
capital in a significantly faster and more cost
efficient manner than ever before.
Whereas private securities and the new
crowdfunding securities are generally not
freely transferable, Reg A securities are freely
transferable; meaning you can trade them to
others or on a public exchange( once they are
listed on that exchange).
Investors and Companies can benefit from
the new ability to cut out the middleman and
sell shares directly to investors; bypassing
intermediaries such as broker dealers and
their fees.
Investors will actually get to know about
companies considering or pursuing an IPO,
possibly well ahead of time. In contrast to traditional IPOs, wherein companies, their leadership, and financial advisors are forbidden or
43
F E AT U R E D A RT I C L E
Regulation A+ Observations
One Year Later
n BY JOHN LOWY
44
ary, who was passionate about his automobile, andthe second keyinvested good
money to get a concerted marketing and
crowdfunding campaign: remember the Wall
Street axiom, Deals are not bought, they
are sold. The third key ingredient--and in
my opinion the key to a successful Reg A+
offering--is the ability to combine selling a
companys stock with selling its product to
consumers, hopefully the companys existing customer base.
In ELIOs case, there were more than
50,000 pre-orders to purchase the automobile when it becomes commercially available. What better way to raise capital than
to have those same enthusiasts also buy
your companys stock? Indeed, ELIO now
has approximately 6,600 shareholders, so its
a good assumption that many of them are
among the 50,000 pre-order customers.
Moreover, ELIOs public filings show that
the company raised nearly $17,000,000 in
gross proceeds at a cost of less than $900,000,
i.e. about 5.3% of the gross proceeds, which
was far less than the traditional costs of
doing an S-1 through an investment banking firm.
However, as with any attempt to raise capital, there have been unsuccessful offerings or
attempted offerings in the Reg A+ arena. As
they say in life, you learn more from your
www.stocknewsnow.com
has led or participated in more than 200 such transactions, creating market value in excess of $5 billion.
He has been instrumental in leading the process by
which many companies have raised capital or reverse
merged, and achieved listings on the NASDAQ or the
AMEX, or have been sold to larger companies.
In addition to the U.S., John has completed transactions for clients based in Australia, Brazil, Canada,
the Caribbean, China, Hong Kong, India, Korea,
Philippines, Singapore, South Africa, Turkey, UK,
Vietnam and other nations. The sectors in which
these clients are engaged range from high tech to low
tech, real estate, pharmaceuticals, medical devices,
oil and gas, mining, solar power and other renewable
energy, entertainment, food, forestry, agriculture,
education and retail, among others.
John received his B.A. from Tufts University
and began practicing law after graduating from the
University of Pennsylvania Law School. He is a frequent contributor to MicroCap Review.
45
F E AT U R E D A RT I C L E
n BY MICHAEL COLON
46
Accredited
& Retail
Investors
sales@issuerdirect.com
www.issuerdirect.com
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US Toll-Free: 877.481.4014
Chartered
Financial
Analysts
Registered
Investment
Advisors
Digital
Media
Professionals
Firms
(Banks &
Brokers)
47
https://www.sec.gov/Archives/edgar/data/1638850/000164460016000157/xti_oc8.htm
which you should read before making any investment
David E. Brody
Founder and Chairman
dbrody@xtiaircraft.com
(303) 503-5660
Andrew Woglom
Chief Financial Officer
awoglom@xtiaircraft.com
Scott A. Pomeroy
Senior Financial Advisor
spomeroy@xtiaircraft.com
(303) 522-8936
Centennial Airport, 13000 Control Tower Rd., Suite 217, Englewood, Colorado 80112
50
www.xtiaircraft.com
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XTIaircraft.com
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51
Financing
Advisory Services
Boca Raton, FL
Long Island, NY
Shanghai, China
212-300-0064
Investors
Investors@Primaryllc.com
52
Companies
Seeking Financing
Financing@Primaryllc.com
MicroCap Review Magazine 10 Year Anniversary Issue
Portals
Partner with Primary Capital
Jleo@Primaryllc.com
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LEGAL CORNER
A S K T H E L E G A L E X P E RT S
FRANCESCA DJEREJIAN
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53
54
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55
F E AT U R E D A RT I C L E
n BY ROBERT KRAFT
www.stocknewsnow.com
ConCluSion
The key overlap when it comes to diversification, and my approach to investing in
MicroCaps, is that I focus on what I know
and, more importantly, what Im interested
in. When Im excited about a company and/
or industry, it makes doing that arduous due
diligence actually fun (okay, more interesting)! At any one time, I could be invested
in multiple industries or just one depending
on the market conditions and companies.
Diversification is something Im still learning
about, however, whats been most important
for me is keeping a narrow focus that follows
my developing investment strategy. n
Robert Kraft is SNN Inc. Chief Operating Officer,
Editor-in-Chief of StockNewsNow.com, The Official
MicroCap News Source, Host of the popular
MicroCap podcast, the Planet MicroCap Podcast.
He is also the Co-founder and CEO of Sammi Girl
Productions with his brother, Frankie.
57
F E AT U R E D A R T I C L E
oal will slip behind natural gas in 2030 and maintain the number three
position well beyond 2040. Run a quick search on coal and dead and
youll get hundreds of articles projecting the death of coal.
Figure 1:
n BY KARL DOUGLAS
58
Source: U.S. Energy Information Administration, Annual Energy Outlook 2016 Reference case
The recent spate of coal bankruptcies effecting once considered invincible companies
such as Peabody Energy, Arch Coal and
Alpha Natural Resources, has led many to
conclude coal is in fact a dead sector, relegated to the buggy whip graveyard. But the
Energy Information Administration (EIA),
a division of the Federal Government says
otherwise. How often do you get to invest in
an industry responsible for supplying 33%
of a $15 Trillion-dollar economys electricity
demand for pennies on the dollar?
industry consolidation.
Many of the recent bankruptcies are arguably self-inflicted; the result of significant
overleverage, in some cases as much as
>10X EBITDA. As Figure 1 demonstrates,
the onset of abundant low cost natural gas,
a competing fossil fuel, directly offset a significant percentage of the coal burn through
coal-gas switching. In fact, the industry
contracted 34%, with electricity from coal
dropping 17 points from 50% of all electricity to 33%. The resulting commodity price
drop, margin erosion, over leverage and a
decade of anti-coal lobbying and media presence by environmental activist groups, produced a coal industry in a tailspin! So what
makes this pariah of an industry potentially
tomorrows darling of an investment opportunity? Things to consider:
We cant do without it! Even under the
most aggressive EPA assumptions, coal will
still represent about 10% of US energy consumption by 2040, a quarter century from
now. It will still be used to generate 18% of
US electricity by 2040, a statistic that must
be quite a disappointment to green lobbyists.
Scrubber Capex Investment The power
industry has already invested over $500B in
environmental remediation equipment such
as NOX/SOX scrubbers. They will need the
depreciation from these investments to keep
electricity prices down.
Low Gas Prices Unsustainable Gas
prices are rising steadily as environmental
regulation increases and exploration activities become more costly. Rig count has fallen
to a three year low and at costs above $2.50
per MMbtu, coal starts to look competitive
again.
Global demand will continue: India and
China will remain the largest consumers of
coal through 2040. The EIA forecasts coal
consumption to grow at the slowest rate
of the competing fuels, at a mere .6% per
annum.
No alternative for steel production: We
havent found a steel making alternative to
the use of metallurgical coal in the steel making process.
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Source: EIA
Figure 3
59
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CELEBRATING 46 YEARS OF
EXCEPTIONAL SERVICE
RESOURCES
EXPERIENCE
RESULTS
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61
P R O F I L E D C O M PA N Y
62
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Regulation A+
Tier 1
None.
None.
No
Yes, securities sold under Regulation D Yes, securities sold under Regulation D
are restricted securities.
are restricted securities.
General Solicitation
Permitted
Investor Restrictions
Disclosure Requirement to
Investors?
Integration Concerns
Combinations Permitted
Regulation A+
Tier 2
None.
None.
None.
None.
Must inform investors of the investment cap None after the registration statement is
for nonaccredited investors, and may rely
led publicly. Before the registration
on an investors representation that it is in statement is led publicly, TTW sessions
compliance with cap.
must be held only with QIBs/IAIs.
None.
None.
None.
None.
None.
Yes
Yes.
None.
Yes
Yes.
None.
Annual Reporting
Requirements
None.
None.
Intermediary Requirement
Limitation on Resales?
None.
n/a
Any amount
Maximum Raise
Yes
No Limit.
Regulation Crowdfunding
Regulation D
Rule 506(c)
Form D
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Eligible Issuers
Regulation D
Rule 506(b)
63
F E AT U R E D A RT I C L E
n January 19, 2016 the final intraday washout of resource sector mining companies on the TSX and U.S. exchanges took place.
Yes, important bottoming action preceded
this in December 2015. In fact, as the silver chart below shows (mirror-imagery by
gold), a two-month classic triple-bottom
action formed during the December-January
period. Watching dozens of mining stocks
print new lows for the move, then reverse
on heavy volume to close near their highs
of the day was quite a sight. Nothing offers
greater confirmation of a solid bottom than
a heavy volume reversal after two or three
n BY DAVID MORGAN
64
tests of support.
The third and final major secular up leg of
the bull market in gold, silver and the miners
is underway. History tells us this leg will be
the biggest. The Morgan Reports extensive
multiple-year research on the subject led us
to conclude the following:
The rush into gold is primarily by nation
states, but the rush into silver is basically
(by) the people, - its not just the people of
the U.S. - its the people of the world. There
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65
PondelWilkinson
www.pondel.com
Contact: Evan Pondel
310-279-5980
epondel@pondel.com
66
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P R O F I L E D C O M PA N Y
67
COMMODITIES CORNER
Commodities in Review
A
n BY MARK SHORE
Sources: Bloomberg, CBOE Past performance is not predictive of future returns.
68
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69
ASIA CORNER
ong Kong stock market kicked off the year in negative territory amid
increased concerns of global risk, but by mid-February sentiment
n LESLIE RICHARDSON
70
www.stocknewsnow.com
and the legal environment are appropriate. Thus, even though the CRSC already
approved the A-share IPO system to be
change from the current approval-based
IPO system to a registration-based one last
November, with China continuing to delay
the transition, Hong Kong will remain the
top choice for Chinese companies to go public. Subsequently, Hong Kong is expected to
maintain its place as one of the worlds largest IPO market for 2016.
With the overall market sentiment cautious, the majority of IPOs this year have
been predominately small and medium
sized. One of the best performing new listing this this year is local property developer
Wang On Properties (HK:1243) which spun
off from Wang On Group (HK:1222 ) in an
IPO on April 13th and is up 392 percent from
its debut. The company has successfully
established its residential property brand
The Met in Hong Kong and isdeveloping
boutique residential as well as commercial
projects in the SARs. Mid-tier banks China
Zheshang Bank Co Ltd. (HK:2016) and
Bank of Tianjin (HK:1578) are among the
largest IPOs globally in the first quarter,
raising US$1.7 billion and US$950 million,
respectively. Of the fourteen newly listed Hong Kong GEM companies this year,
Ching Lee Holdings(HKG:8318) has been
the top performer. Ching Lee Holdings, a
civil engineering company providing substructure building works and superstructure
building works, is up 132 percent since it
started trading on March 30.
Upcoming IPO, BOC Aviation Ltd., is
receiving overwhelming investor interest as
it raises $1.1 billion with a June 1st target
date to begin trading. The Singapore-based
company is Asias biggest aircraft-leasing
company by asset value. Asian leasing companies have been rapidly expanding fleets as
the region is projected to overtake the U.S. as
the worlds largest market for aircraft. BOC
Aviation currently has agreements with 62
operators in 30 countries and last January
it placed an order for 30 Airbus A320 aircraft to expand its fleet and meet customer
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71
F E AT U R E D A R T I C L E
n BY SAM NAMIRI
72
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73
ACC O UN T I N G COR N ER
74
For the past 15 years, Tuesdays Children has been committed to serving
all those directly impacted by the events of September 11, 2001.
Weve made a promise to never forget. We are still here.
Forged in the aftermath of Tuesday, September 11, 2001, Tuesdays Children serves those
impacted by terrorism and traumatic loss, including: families of 9/11 victims, responders;
military service members and wounded veterans; international youth and global victims of
terrorism. Tuesdays Childrens programs strengthen resilience and build common bonds.
Help find an internship for a child who lost a parent to terrorism, make a charitable
donation, become a mentor to a child, fundraise, or simply call us and tell us how
youd like to get involved. We need your help to keep the promise.
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MicroCap
Review Magazine 10 Year Anniversary Issue
For more
information, please call 212-332-2980 or visit our website
at www.tuesdayschildren.org.
75
Cyber Security
C
orporations of all sizes are investing in protecting their digital assets from
both internal and external threats. Despite these efforts, the volume and
complexity of cyber-attacks is increasing.
Many of the more sophisticated attacks evade
detection for weeks even months. While
there are undoubtedly a growing number of
defensive technologies, there is a shortage of
skilled personnel for the consulting, deployment and maintenance.
In the last couple of years cyber security
has escalated to the top of the agenda for
most boards. The questions remain, How
secure are we? and How do we know?
These should be repeated to the Chief
Information Security Officer (CISO) on a
quarterly basis as they deliver their state of
security address.
The 2015 PwC US State of Cybercrime
Survey asked whether organizations have
the expertise to address cyber-risks associated with implementation of new technologies and only 26 percent said they have the
capability to do so with their current staff.
The good news for the consulting industry is
that the rest rely on a combination of internal and external expertise to address cyberrisks of new solutions. According to a global
nonprofit association ISACA (Information
n BY YORAM GOLANDSKY,
CEO OF CYBERISK
76
www.stocknewsnow.com
(New Formations:Three-year average is 10.2 per mo. BDW three year average is 20.5Closures per mo)
19 Firms Withdrew
Monthly New Formations chart showing the number & types of firms admitted
20
15
10
5
Pvt
Mut F,
Other
Equities
0
12
17
13
14
12
14
10
15
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
11702
11820
11947
12013
11957
11988
12025
12092
Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
As of J une 30, 2016, there are 4001 FINRA Member firm CRD Numbers. (Note: There are some
bankrupt firms still carried in CRD, such as Lehman Bros, & Stanford.) Subtract another 28 or so firms that
have filed BDW, not yet posted.
===========================================================================
The above data has been sourced from regulatory agencies publications' and statistics, along with some independent third parties. While it is believed to be reliable there can be no guarantee of the accuracy of
the data. The numbers have been cross-checked for accuracy, and they should be within plus/minus two percent. For example, there may be as many as 28 firms NOT included in these statistics and NOT
reported that filed for a BDW prior to May, 2016.
David Alsup 949468-0111
david@fishbowlstrategies.com
www.stocknewsnow.com
77
PROFILED COMPANY
SoPHiStiCateD nano-ink
teCHnoloGy
The DragonFly 2020 printer uses proprietary
nano ink technology produced at the companys two fully-equipped ink laboratories, one
of which produces highly conductive silver
nano-particle inks and the other insulating
dielectric inks.
The companys one-part, nano-epoxy
78
Amit Dror,
CEO and Co-Founder
of Nano Dimension
StronG ManaGeMent
eXPerienCe
More than 40 employees and the management team consists of four co-founders (CEO, CTO, COO, and CBO) whose
strengths include years of 3D printer production, print technology, consumer goods and
business development.
Nano Dimension plans to market the products and services worldwide to manufacturers and companies that develop sophisticated products with electronic components,
including consumer electronics, IoT, telecom, semiconductor, defense, aerospace,
automotive, medical/biotech and transportation industries.
Approval to the NASDAQ market in
March 2016 was a major milestone for the
company, and for the development of advanced
3D printed electronics in the market.
Signed agreement with Flextronics
International Ltd. And FATHOM, industryleading advanced manufacturers and distributors
PCB market is forecast to reach $93 billion market size by 2017 [BPA Consulting
Lucintel and EDAcafe]
The global PCB manufacturing market
is expected to increase its market size from
approx. $62.3 billion to $74.3 billion in 2018,
growing at a compound annual growth rate
(CAGR) of 3.6%. [Research and Markets]
The significant growth projections for the
3D printer market serves as an indicator that
there are significant market drivers facilitating
growth. Nano Dimension helps enable prototypes in all shapes and sizes and is already
having a disruptive influence beyond consumer
electronics. In collaboration with Accellta, Ltd.,
Nano Dimension successfully lab-tested a proof
of concept 3D Bio Printer for stem cells. n
www.nano-di.com
@nanodimensiontech on Facebook
Nano Dimension on Twitter: @3Dpcb
on LinkedIn:
The company paid consideration to SNN or its affiliates for this article.
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79
80
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OPINION
What Am I Buying?
Whats LOV Got to Do With (Spark Networks)
n CHRIS LAHIJI
www.stocknewsnow.com
81
F E AT U R E D A R T I C L E
n BY MAJ SOUEIDAN
82
commerce.maryland.gov
www.stocknewsnow.com
83
OPINION
n BY SHELLEY GOLDBERG
84
wHere to Start
A simple approach with no- to low-fees is an
ETF or index. The Dow Jones Sustainability
Indexes have a geographic focus either covering the world, or narrowing the focus to
Emerging Markets or even a specific country,
like Chile. These long only equity portfolios
screen names based on a host of requirements involving corporate practices, operation and actions.
Or, an investor can focus on an issue, such
as the S&P 1200 Fossil Fuel Free Carbon
Efficient Select Indexes, designed to measure
the performance of a subset of companies
with relatively low carbon emissions. In the
fixed income space there are the Barclays Fix
Income Green Bond Fund indices.
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85
OPINION
he Zika virus was first discovered in 1947 in rhesus monkeys in Uganda. The virus
quickly jumped to humans, with the first cases in people recorded in 1952 in Uganda
and Tanzania.
86
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DO WE HAVE
THE RIGHT BOARD STRUCTURE
AND MEMBERSHIP?
DO WE HAVE
THE RIGHT BROKER DEALER?
EXCLUSIVE?
HOW CAN
10
HOW
MUCH
SHOULD
MY AUDIT COST?
WHAT
CAPITAL
QUESTIONS
THAT KEEP MICROCAP
CEOs UP AT
NIGHT
HOW DO
WE FIND
THE
RIGHT AUDITOR FOR
MY FIRM?
HOW CAN
WE CONTROL LEGAL COSTS?
WHAT IR
DO WE
HAVE THE
RIGHT CFO?
www.ppmtgroup.com
646-289-5358
CANNABIS CORNER
n ALAN BROCHSTEIN
88
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89
PROFILED COMPANY
90
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OPINION
n BY LESLIE BOCSKOR,
ELECTRUM PARTNERS
www.stocknewsnow.com
ing looks drastically different. The foundation for a vibrant ecosystem of legal cannabis
companies and ancillary business growth is
being created right now, and the opportunity
is immense.
91
2016 Brand Ad
OVER
n/a
74551
7.375" x 4.75"
CYAN
MAGENTA
YELLOW
BLACK
YEARS
EXCELLENCE
IN SERVICE
At your side.
On your side.
You can trust
Continental
to be your
partner.
2016 Continental Stock Transfer & Trust Company
92
4-color process
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93
P R O F I L E D C O M PA N Y
Grow teCH
This division provides cannabis growers
with nutrients, supplies, equipment, lights
etc. The Company has 3 retail stores in
Colorado and one online store (give website) and has a growth strategy to expand
through acquisition with retail stores located
in Oregon and Florida. The Company plans
94
Future teCH
This division creates and manufactures
products and brands for the consumption,
processing and storage of regulated herbal
products including cannabis. The first three
brands to come from Future Tech Products
are Opti Flavor Technologies (vaporizers
and quartz accessories), RozTek (Rosin
presses) and Terpene Preservation Labs
(silicone storage solutions). These brands
and products are cutting edge technologies
for smoke shops, tobacco shops and dispensaries. The Company plans to add an
online wholesale distribution platform linking manufacturers to retailers, B2B, streamlining the ordering and fulfillment processes.
DiGital teCH
This division includes our digital properties
Sprout.news and JobGrow.com. Sprout.
news is a news and social media site reporting on the confluence of cannabis and politics, sports, health and culture. JobGrow.
www.stocknewsnow.com
THERALASE
T
ECHNOLOGIES INC.
:
.
.
:
WWW THERALASE COM
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95