fbpx

Written by 08:00 Okategoriserade

B2B-order confirms Simris’ strategic transition to a vertically-integrated, science-based microalgae biotech

This first order for partially processed microalgae biomass confirms the commercial feasibility of Simris’ recent broadening of their microalgae platform into BIOMIMETICS and NOVEL FOODS. Now with international heavyweight Steven Schapera taking the helm as Chairman, we see potential for an increased focus on commercialization of Simris’ unique IP to drive both news flow and a change in sentiment towards the share.

Johan Widmark | 2021-07-27 08:30

This commissioned research report is for informational purposes only and is to be considered marketing communication. This research report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and Emergers is not subject to any prohibition on dealing ahead of the dissemination of investment research. This research does not constitute investment advice and is not a solicitation to buy shares. For more information, please refer to disclaimer.  
 

The 1,6 MSEK order for partially processed microalgae biomass marks the first important step in Simris’ three-pronged development plan to commercialize its algae platform. While the announcement did not reveal if the order was related to BIOMIMETICS or NOVEL FOODS, it confirms Simris’ qualifications as a B2B-supplier that can offer both a biotech algae platform for discovery, production, and extraction of various bioactive substances for advanced skin care and pharmaceuticals, as well as dry microalgae biomass for further extraction of high-value nutraceuticals and other food supplements. 

This order was for freeze-dried microalgae, and as Simris Alg already hold significant stock of this raw material, which they produce for the extraction of omega-3 supplements, this implies that the profitability of this order is high and offers an immediate boost to the company’s strained liquidity.

Photo: Simris Alg, Peter Brinch
Build-up to refinancing in 2022

Earlier this month, Simris secured bridge financing of 7 MSEK while also communicating its plan to raise additional capital in 2022. This will most likely be a good point in time, when we expect that Simris will have some more B2B-contracts under its belt, preferably some that clearly demonstrate the quality, competitiveness and commercial potential of their algae platform, especially within BIOMIMETICS.

We also hope that future deals, and particularly the deal announcements, more clearly reflect the actual value embedded in the company’s platform rather than just the volume value of the individual products or ingredients it can produce.

With Simris’ founder, algae pioneer Fredrika Gullfot stepping down as CEO, effective from September 17th, 2021, international cosmetics veteran Steven Schapera, who joined the company as Chairman just two months ago (but has been a major shareholder since mid-2020) will take on a more executive role until a new CEO is appointed. Together with Simris’ CFO, Christoffer Tell (who also joined earlier this year) the company is now well on track building infrastructure and capability to execute on its broadened strategic roadmap. The appointment of the new CEO will surely be the last major piece of the puzzle.

All in all, we see a fair chance for the investor sentiment and focus to transition away from the tunnel vision on short-term sales development that has hampered the share, to instead focus more on Simris’ position at the forefront of the marine microalgae space as a vertically integrated, B2B-focused microalgae biotech. Therefore we continue to see a high but difficult-to-quantify potential for the stock.

Read more about Simris Alg here 

smalll-osterlen-DSC_2102

Broader portfolio paves the way for revaluation of Simris stock

Following its major breakthrough with omega-3 products in the United States, Simris is harvesting the initial results of development efforts in its second vertical, cosmeceuticals. The company is also evaluating a number of exciting pharmacological applications, and now that it has reinforced its finances, the way is paved for a revaluation of the share.

Read more »

DISCLAIMER

This commissioned research report is for informational purposes only and is to be considered marketing communication. This research does not constitute investment advice and is not a solicitation to buy shares. Information provided here or on Emergers’ website emergers.se is not intended to be financial advice. This research shall not be construed as a recommendation or solicitation to invest in the companies described. Emergers cannot be held liable for either direct or indirect damages caused by decisions made on the basis of information in this analysis. Investors are encouraged to seek additional information as well as consult a financial advisor prior to any investment decision.

This material is not intended to be financial advice. This material has been commissioned by the Company in question and prepared and issued by Emergers, in consideration of a fee payable by the Company. Emergers charges a standard fee for the production and broad dissemination of a detailed note following by regular update notes. Fees are paid upfront in cash without recourse. Emergers may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained herein represent those of the research analyst at Emergers at the time of publication. The company has been given the opportunity to influence factual statements before publication, but forecasts, conclusions and valuation reasoning are Emergers’ own. Forward-looking information or statements contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Emergers shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained in this material.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Emergers’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in this material may not be eligible for sale in all jurisdictions or to certain categories of investors. Investors are encouraged to seek additional information as well as consult a financial advisor prior to any investment decision.

Investment in securities mentioned: Emergers has a restrictive policy relating to personal dealing and conflicts of interest. Emergers does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Emergers may have a position in any or related securities mentioned in this report, subject to Emergers’ policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Incirrata AB (Emergers)

United Kingdom
This document is prepared and provided by Emergers for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ”FPO”) (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States
Emergers relies upon the ”publishers’ exclusion” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Emergers does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Read Less Read More

For new research on growth stocks, sign up to our newsletter