Relevium Technologies jumped 21% on elevated volume to capture the Daily Stock Challenge Breakout award in March’s Stock Challenge.
Relevium Technologies and other junior healthcare-related or tech-related issuers may be benefiting from a gold market that is trying to find bottom. For example, the GDXJ has declining some 24% from its high in early February. We talked about this decline in a recent article here.
After being down to a low of $32.66 early in the session, VanEck Vectors Junior Gold Miners (GDXJ) rebounded to close up 0.87% to $33.71.
Revelium is a very small company with an approximate $4 million market cap.
Relevium is a TSX Venture listed issuer focused on growth through the acquisition of businesses, products and technologies with a focus on e-commerce in the growing health and wellness sector, specifically under three important verticals: Pain Relief, Recovery and Performance.
Relevium Technologies beefed up its board of directors in February, after it added oncology surgeon, Dr. Tina Sampalis. Relevium’s stock jumped to $0.16 on February 13th following this development.
Relevium Technologies to acquire BioGanix
On February 22nd, Relevium provided an following update to its press release from December 22, 2016 where it announced a binding letter of intent to acquire the assets of BioGanix Limited.
BioGanix is a privately-held nutraceutical company in Houston, Texas focused on heart, brain, digestive health and joint support products sold through primarily through e-commerce platforms. Like many public companies before it, Relevium is using the fact it is a public company that can issue shares, in a bid to acquire private, revenue-generating companies.
Retail investors reviewing Relevium should be aware of the company’s updated financing. Below is a short excerpt from February 22nd’s press release:
“In connection with the completion of the Transaction, the Company has entered into an engagement letter (the “Engagement Letter”) with WCM Capital (“WCM”), whereby WCM has agreed to act as lead agent in a private placement offering with aggregate gross proceeds of up to $7.5 Million on a subscription receipts basis (the “Offering”). The private placement will be comprised of a new equity and/or debt issuance. The Company will issue up to 37,000,000 million units at a price of $0.10 per unit, with each unit being comprised of one common share and one half warrant at $0.15 with a term of two years (the “Units”). In conjunction with the equity private placement, the company may issue up to $5M in long term debt (“the Debt”), thereby proportionately reducing the equity component of the total $7.5 Million Offering. The terms of the Debt will be announced in a subsequent press release, as applicable.”
Click here to read the entire press release.
For a company with approximately 35 million shares outstanding, 37 million shares represents more than 100% of the current shares outstanding. This is an astonishing deal the company is attempting to structure as the shares represent more than the company is currently valued. The potential of $5 million in long term debt also represents more than the $4 million market cap of Relevium on Tuesday. Relevium vaguely reminds us of Patient Home Monitoring, (on a much, much smaller scale) which came out of nowhere back in 2014 and grew by leaps and bounds through the acquisition of private, healthcare-related service companies.
March Stock Challenge Update
Long-time member and 2-time Stock Challenge Champ, ‘releroux‘ selected Relevium for March’s Stock Challenge. His combined average return was 18.42% Tuesday.
While minerjoe has narrowed the gap on screefer his lead is still discouraging large. screefer finished the trading day with a 162.03% return compared with minerjoe’s 42.14%.
