Subject: Smallcap Discoveries: Weekly Update: April 18 - 22

April 18 - 21

Market Commentary

Markets were mostly flat the early part of the week until Thursday. The last 2 days of the week saw a significant drop in North American indexes as further interest rate tightening fears gripped the market. Nasdaq once again led indexes lower by dropping 3.6%, The TSX dropped 3.86% and the DOW dropped by 1.86%. Only one sector, consumer staples, was positive for the week with basic materials taking the biggest hit.

It's become painfully clear that investors are continuing to move away from the once high flying growth stocks and towards more defensive sectors as the days of very easy money are behind us for the time being. Big tech names continue to suffer and this past week we saw companies like Netflix, Meta (Facebook) and even Canadian darling Shopify hit multi year lows. On Friday the tech heavy Nasdaq saw 440 new 52-week lows vs only 6 new 52-week highs. This is a sign that we likely will see more rotation out of expensive growth stocks and into "value" opportunities. 


Keep your seatbelts securely fastened it's likely to continue to be a bumpy ride.

Buys and Sells This Week

No buys or sells this past week

Smallcap Discoveries


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BeWhere Holdings (TSX.V: BEW) Price - $0.21 Market Cap - $18.5M

  • BeWhere Holdings Inc. Reports 2021 Fiscal Year-End Results

  • Q4 Revenue of $2.1M

  • Q4 Gross profit of $703K

  • Q4 Net income of $177

  • FY Revenue $8.5M

  • FY Gross profit of $2.28

  • FY Net income of $416K

  • Press Release https://tinyurl.com/yhsn7ed7


BeWhere continue to grow all operating metrics. We are especially impressed with their growth in hardware sales which is a very good forecaster of future recurring revenue. The stock has pulled back along with most nanocaps. We think the stock offers very good risk/reward at current prices especially for investors with longer term intentions.  


Medexus Pharmaceuticals (TSX: MDP) Price - $3.01 Market Cap - $60M


On Friday the company announced that they are resubmitting their new drug submission to the FDA for Treosulfan. This product has very large revenue potential and an FDA approval is expected to dramatically change the outlook for the company. We believe it is still a bit too early to re-enter the stock but feel it makes sense to keep an eye out and be prepared to re-visit this opportunity closer to the expected response date expected in about 6 months.


Atlas Engineered Products (TSX.V: AEP) Price - $0.62 Market Cap - $37M


ImmunoPrecise Antibodies (TSX.V: IPA) Price - $7.36 Market Cap - $173M

  • IPA’s Advanced PolyTope® TATX-03, a Multi-Antibody Cocktail, Potently Prevents In Vitro Infection of Cells by the Currently Dominant Omicron Sublineage BA.2, in Addition to all Other Variants of Concern

  • Press Release https://tinyurl.com/ejvubbxn


More positive data. Management believes they are the only organization with a single therapeutic that has shown potent neutralizing data against all Covid variants of concern. We expect more data from the company on their Talem pipeline of drug candidates and other updates as the company prepares for its most significant industry conference PEGS 2023 (https://www.pegsummit.com/)


Renoworks Software (TSX.V: RW) Price - $0.35 Market Cap - $14M


RIWI Corp (TSX.V: RIWI) Price - $0.90 Market Cap - $16M


iFabric (TSX: IFA) Price - $2.40 Market Cap - $71M

Smallcap Discoveries


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Noble Iron (TSX.V: NIR) Price - $0.85 Market Cap - $23M


Sabio Holdings (TSX.V: SBIO) Price - $1.17 Market Cap - $53M

  • Sabio Delivers Record Q4-2021 Results with 96% YoY Revenue Growth and Positive Adjusted EBITDA

  • Q4 Revenue of $10.6M

  • Q4 Gross profit of $6.25M

  • Q4 Adjusted EBITDA of $1.7M

  • FY Revenue $24.2M

  • FY Gross profit of $14.6M

  • FY Adj. EBITDA of $1.85M

  • Press Release https://tinyurl.com/4rydthju\


RediShred Capital Corp (TSX.V: KUT) Price - $0.85 Market Cap - $77M

  • Announces Q4 and Fiscal 2021 Results, Highlighting Impressive Q4 Organic Growth in Same Corporate Location EBITDA of 40% and Consolidated EBITDA of 44%

  • FY Revenue of $36M

  • FY Operating income of $4.6M

  • FY Net income of $1.32M

  • Press Release https://tinyurl.com/2s3hr3zf


TIMIA Capital (TSX.V: TCA) Price - $0.37 Market Cap - $22M


Wishpond Technologies (TSX.V: WISH) Price - $1.17 Market Cap - $61M


Char Technologies (TSX.V: YES) Price - $0.435 Market Cap - $36M

  • CHAR’s AGM is a worthwhile event that draws a large crowd- this is hopefully the last time its “virtual”. Andrew White will give an update on the business and there is a fabulous guest speaker: Diane Brady is a renounced NYC based journalist. After the 15 minutes of “formal business”- the remaining hour will be packed with interesting information.

  • Date and Time: Thursday, April 28th, 2022 at 10:00 a.m. (Toronto time)

  • Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join. https://us02web.zoom.us/s/88093466482?pwd=b1F2eWxzeHBvRVFMZ mRyNWFZVXNmUT09

  • Passcode: 841858


Imaflex (TSX.V: IFX) Price - $1.30 Market Cap - $67M


MediaValet (TSX: MVP) Price - $1.94 Market Cap - $75M


Snipp Interactive (TSX.V: SPN) Price - $0.22 Market Cap - $56M


Titan Logix Corp (TSX.V: TLA) Price - $0.44 Market Cap - $12.5M


Water Ways Technologies (TSX.V: WWT) Price - $0.305 Market Cap - $44M


Vitalhub (TSX: VHI) Price - $2.95 Market Cap - $127M


Aequus Pharmaceuticals (TSX.V: AQS) Price - $0.075 Market Cap - $10M


BQE Water (TSX.V: BQE) Price - $30.00 Market Cap - $37M

  • BQE Water Reports Another Record Year with Audited 2021 Year End Results

  • Q4 Revenue of $4.38M

  • Q4 Net income of $800K

  • Q4 Adj EBITDA of $754K

  • FY Revenue of $15.6M

  • FY Net income of $2.62M

  • FY Adj. EBITDA of $4M

  • Press Release https://tinyurl.com/2zp3ene6

Company Interviews & Updates

Upcoming

Topic: SSC Security Services (TSX.V: SECU) Interview with CFO Brad Farquhar

Time: Apr 26, 2022 01:15 PM Vancouver


Join Zoom Meeting

https://us02web.zoom.us/j/89941101416?pwd=b0Q0TnN3L0h5b3ZBanFWYTk3aXFGQT09


Meeting ID: 899 4110 1416

Passcode: 438702


Topic: BeWhere Holdings (TSX.V: BEW) Update with CEO Owen Moore

Time: Apr 28, 2022 01:15 PM Vancouver


Join Zoom Meeting

https://us02web.zoom.us/j/88448346410?pwd=Q0VNZ0ZMWFJ4bFhraTlUUUhQdmZKdz09


Meeting ID: 884 4834 6410

Passcode: 041885


Topic: Imaflex (TSX.V: IFX) Update with VP Corporate Affairs John Ripplinger

Time: Apr 29, 2022 01:15 PM Vancouver


Join Zoom Meeting

https://us02web.zoom.us/j/89486202319?pwd=cEJHQ1lJK1dqTmdxWUgwbDM2WVBzdz09


Meeting ID: 894 8620 2319

Passcode: 378095

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