Zacks Small Cap Research Press Releases

MRDN: Sponsorship of High Profile UFC MMA Event That Will be Distributed Internationally

Tue, 21 Jul 2026 09:00:00 -0400

NASDAQ: MRDN

Meridianbet Official Partner of UFC Fight Night Serbia, UFC’s 1st MMA event in Serbia

Meridian Holdings Inc. (NASDAQ:MRDN) licenses and operates online sports betting and gaming platforms globally. Its subsidiary Meridianbet has been named Official Partner of UFC Fight Night Serbia, the first MMA (mixed-martial-arts) event the Ultimate Fighting Championship (UFC) has ever held in Serbia, which will take place on August 1, 2026, at Belgrade’s Belgrade Arena. Meridianbet will be the event’s exclusive sponsor in the sports-betting category. Meridianbet was founded in Serbia in 2001 and has operated in the market continuously since then.

The Meridianbet brand will be highly visible, as the partnership includes branding inside the Octagon during the event, logo placement across official event promotions, including the fight poster and round cards, an in-venue commercial at Belgrade Arena and a digital and social media campaign across UFC’s omnichannel promotional activities. Moreover, the event will reach a global audience via international distribution through UFC’s broadcast partners, including live broadcast in the U.S. on Paramount+.

Source: Company presentation

Meridianbet represents the largest contributor to MRDN consolidated revenue. MRDN noted that the Meridianbet partnership with UFC, part of TKO Group Holdings, marks its highest profile alignment with a global sports brand thus far, although Meridianbet has sponsored combat sports for years. UFC is a globally recognized MMA organization. Its more than 40 annual live events are distributed to an estimated one billion broadcast and digital households across 210 countries and territories and its MMA athletes represent 75+ countries.

MRDN believes the partnership reflects its longstanding commitment to sport in the communities where it operates. Meridianbet has engaged in multiple other community sponsorships, ranging from supporting clubs, youth academies and local sports programs to community initiatives in health and education.

Sponsorship consistent with Meridian promotional activities aligning its brand with high profile sports figures or brands

The sponsorship is consistent with Meridian’s promotional activities aligning its brand with high profile sports figures or brands. For example, MRDN recently formed an agreement with Serbian-born former soccer player Dejan Petković who became the company’s Global Brand Ambassador. Dejan Petković, known as Pet, is currently a television personality and analyst. He is regarded as one of the best known and popular foreign players in Brazilian football history and has launched Pet TV in Brazil. The company believes that appointing well-known sports figures as brand ambassadors to help market the brand and company operations creates a strategic and cost-effective way to reach existing and prospective customers.

The UFC sponsorship comes as Meridian continues to advance its B2B and B2C expansion strategy and as core Meridianbet operations continue to scale. Meridian remains focused on growth, organically and using strategic M&A that prioritizes acquisitions in high-barrier markets with limited licensing to complement organic growth and further its goal to diversify its revenue base across geographic markets, by operating segment and by channel. Reflecting what we see as its growing traction, Meridianbet new customer registrations grew 41% in 1Q26 compared to 1Q25.

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HITI: High Tide Same-Store Sales Turned Positive in June 2026

Tue, 21 Jul 2026 08:00:00 -0400

By Tom Kerr, CFA

NASDAQ: HITI

READ THE FULL HITI RESEARCH REPORT

Ask Me Anything Reddit Session

On July 15, High Tide (NASDAQ:HITI) hosted an Ask Me Anything (AMA) open forum on Reddit. An AMA is an interactive, crowdsourced Q&A session where a host such as experts or business leaders invites the Reddit community to ask them questions in real-time. This was the 5^th AMA that the company has been involved in.

The forum was very detailed and lengthy and covered substantially all aspects of the company’s business operations. An important comment by management was that June same-store sales turned positive after declining (1.2%) in the 2^nd quarter ending April 30, 2026. We believe this momentum will continue and it’s possible same-stores sales could remain positive in July.

Our key takeaways from the AMA include:

High Tide's takeover protections are designed to maximize value and not to prevent acquisitions. The shareholder rights plan helps prevent coercive or undervalued bids while preserving regulatory compliance, but the board would still evaluate any realistic offer that maximizes shareholder value.

Europe is the company's highest priority growth opportunity. Management continues to focus on Germany first, with the UK viewed as the next major expansion market, while the U.S. remains a longer-term opportunity.

The U.S. expansion strategy is intentionally patient and capital disciplined. Rather than pursuing expensive acquisitions or issuing significant equity, High Tide intends to wait until regulations become more favorable before entering through the most attractive structure.

Remexian is outperforming expectations. German market share has more than doubled, gross margins improved from roughly 12% to 27% as procurement efficiencies took hold, and management believes 25-30% margins are sustainable over time.

Germany's evolving regulations are not viewed as a major long-term risk. Management believes approximately 90% of patients already pay out of pocket, limiting the impact of reimbursement changes while positioning Remexian to benefit from value-oriented demand.

Management believes sustainable GAAP profitability has now been achieved. Positive net income is expected to continue despite occasional quarterly volatility caused by non-cash accounting items such as derivative liability revaluations.

Free cash flow is considered the company's most important financial metric. The CEO repeatedly emphasized free cash flow generation and free cash flow per share over GAAP earnings or Adjusted EBITDA because they better reflect the underlying economics of the business.

Gross margins are expected to continue expanding beyond 30%. Margin improvement is expected to come from operating leverage, procurement scale, ELITE memberships, and white-label products. But not by raising prices to customers.
White-label brands remain one of High Tide's largest long-term margin opportunities. Although penetration is still only about 1.7% of sales, management continues targeting roughly 20% over time through disciplined product launches.

Queen of Bud has become a highly successful acquisition. The brand achieved an initial one-year payback, with recent sales accelerating enough to reduce the effective payback period to approximately six months.

The Cabana Club ecosystem is viewed as High Tide's strongest competitive advantage. With more than 2.7 million members, proprietary customer data, loyalty, and execution provide a competitive moat that management believes competitors have struggled to replicate.

Same-store sales weakness appears temporary rather than structural. After posting its first negative comparable-sales quarter since Cabana Club launched, June sales returned to positive growth, with management attributing the past weakness largely to macroeconomic pressures. Based on recent trends, we believe July could show positive same-store sales as well.

The store expansion plan prioritizes long-term returns over speed. High Tide is willing to walk away from overpriced leases, accept longer permitting timelines, and selectively tolerate store cannibalization when it strengthens the overall retail network or blocks competitors from premium locations.

Capital allocation remains highly disciplined. Management emphasized there have been no ATM equity issuances in six quarters and no equity financings in four years, preferring internally funded growth whenever possible.

Share buybacks remain part of the long-term capital allocation plan. The CEO indicated he would like to pursue an aggressive NCIB in the future once reinvesting in growth no longer offers superior returns.

Balance sheet flexibility continues to improve. The expected $40 million BMO credit facility demonstrates increasing access to traditional bank financing which is a notable milestone for a cannabis retailer.

Management is willing to monetize non-core assets when appropriate. U.S. e-commerce businesses remain under strategic review, and the company would consider selling or partnering if it receives an attractive valuation.

Executive incentives are closely aligned with shareholders. Executive compensation is determined by an independent board committee, and management stated they have sold only minimal shares for tax purposes while increasing his ownership since the IPO.

Related-party transactions are governed by independent oversight. Management stated the warehouse lease was independently valued, fully disclosed, has not experienced rent increases since inception, and remains economically justified relative to its operational role.

Management's overarching philosophy is disciplined long-term value creation. Throughout the AMA, CEO Raj Grover consistently emphasized intrinsic value growth, prudent capital allocation, market share expansion, profitability, and execution over short-term stock price movements or meeting quarterly market expectations.

The entire AMA transcript can be found here

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GOTRF: Goliath Resources: Zone Expansion and a Consolidated Resource Model at Surebet

Mon, 20 Jul 2026 08:00:00 -0400

By Ronald Wortel, MBA, P. Eng.

OTC:GOTRF

READ THE FULL GOTRF RESEARCH REPORT

Goliath Resources Ltd. (OTC:GOTRF) has published an exploration update confirming further expansion of its Surebet project in the Golden Triangle, and Zacks Small-Cap Research is issuing an updated report covering the results and an updated valuation model.

The July 15, 2026 update reports that step-out drilling has extended the Bonanza Zone by 750 meters to the southwest and the Golden Gate Zone by 600 meters, with both zones remaining open along strike and at depth. Visible gold was logged in 6 of the first 10 holes of the season, consistent with the intercept frequency the property has shown historically. The Company has also consolidated its geological model into five named zones, Bonanza, Surebet, Golden Gate, Whopper, and Eldorado, comprising 46 stacked gold-rich lodes and veins, alongside a distinct population of gold-bearing Eocene dykes.

Source: Company press release

A re-assay of the full 2025 drill program, incorporating polymetallic credits from silver, copper, lead, and zinc, increased gold-equivalent grades by an average of 16.5% over the previously reported gold-only values, with a 56-hole subset showing a 19.6% uplift. Separately, in March 2026 the Company accelerated its option to acquire 100% of Surebet and reduced the underlying net smelter return royalty from 3% to 2%, raising the resource threshold that triggers royalty payments and reducing potential future payments to the Optionors by an estimated US$2.0 million.

The 2026 program is fully funded and underway, targeting approximately 50,000 meters of drilling across seven rigs, with objectives that include lateral and vertical expansion of known lodes and testing of the interpreted Motherlode feeder intrusive source.

The report also details our updated valuation approach: an area-based resource estimate derived from the Company's plan-view lode outlines, cross-checked against our prior ounces-in-the-ground methodology, and a discounted per-ounce framework that produces a sensitivity range across gold price and resource-growth scenarios. We maintain our $4.90 per-share target.

The full report includes the resource-by-lode breakdown, the valuation sensitivity tables, upcoming catalysts through year-end, and the risk factors associated with early-stage exploration at Surebet. Read the complete report for the detailed analysis.

Source: Company press release

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LEXX: Dosing Started for Animal & Human GLP-1 Studies

Fri, 17 Jul 2026 15:54:00 -0400

By John Vandermosten, CFA

NASDAQ: LEXX

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We update our report on Lexaria Bioscience Corporation (NASDAQ: LEXX) on the occasion of its third quarter fiscal 2026 Form 10-Q filing. Beyond the financial update, management elaborated on its business development activities, especially in the context of its participation at the 2026 BIO International Convention. Management noted frequent discussions with prospects over the last months, often addressing GLP-1 agonist alliances. Since BIO, there have been several follow up conversations after initial meetings at the conference. Since our last report in mid-June, Lexaria has begun dosing in its Animal Study #1 and its Human Pilot Study #7. Both efforts are further characterizing DehydraTECH (DHT) for use with GLP-1 agonists, with an emphasis on the balance between efficacy and side effects. Other highlights in 2026 include the extension of the Material Transfer Agreement (MTA) with an undisclosed pharmaceutical company and study progress to expand the data set for DehydraTECH with GLP-1 agonists.

Fiscal Year 2026, First Nine Months

Lexaria reported fiscal year 2026 nine-month and third quarter results for the period ending May 31^st, 2026, through the filing of its Form 10-Q. For the first nine months of its fiscal year, the company reported $20,000 in revenues and total operating expense of $5.0 million, resulting in net loss of $5.0 million or $0.21 per diluted common share.

For the nine-month period ending May 31^st, 2026, and versus the comparable prior year period:

Revenue totaled $20,000 compared to $532,000 as the Premier arrangement expired at the end of the last fiscal year;
Research and development expenses totaled $2.1 million, down 66% from $6.4 million, reflecting the completion of GLP-1 agonist trials, including the Phase Ib GLP-1-H24-4 study. FY:26 spending is centered on optimization of DHT formulations of GLP-1 agonists and CBD to treat hypertension;
General and administrative expenses totaled $2.9 million, down 15% from $3.4 million on account of reduced consulting fees and salaries and other general and administrative expenses, partially offset by higher legal and professional fees. Specific line items that experienced declines include advertising and promotions, stock-based compensation, and discontinuation of certain consulting arrangements;
Other loss of $19,000 represented unrealized loss on marketable securities related to decreases in fair value, partially offset by a small contribution from interest income;
Net loss was $5.0 million, or $0.21 per share, compared to net loss of $9.3 million, or $0.53 per share.

As of May 31^st, 2026, cash and short-term investments totaled $3.6 million, which compares to $1.9 million at the end of fiscal year 2025. Cash burn for the first nine months of the fiscal year was $4.8 million. Cash from financing over the same period totaled $6.5 million from equity sales.

Animal Studies

Animal Study #1

An April 15^thpress release announced the engagement of a contract research organization (CRO) to execute and report on a new animal study designated GLP-1-A26-1. It will evaluate a number of formulation enhancements with DHT-sema and DHT-cannabidiol (CBD). The study began dosing on June 10^th, and results are anticipated by early September. Initial design parameters include the use of Sprague-Dawley rats as the animal model and eight to 11 separate arms evaluating different compositions seeking to achieve diabetes control. Following administration of the composition, blood samples will be taken at multiple time points to evaluate its pharmacokinetic performance and concentration in the brain tissue. Previous work with the underlying active pharmaceutical ingredient (API) will be used as a baseline of comparison for the study results. Salcaprozate sodium (SNAC)^[1] will be evaluated as part of the DHT formulations. It has shown favorable results in previous studies by Lexaria compared with non-SNAC formulated inputs.

Animal Study #2

An April 23^rdpress release introduced Animal Study #2, designated GLP-1-A26-2. This evaluation will look at two of the next-generation GLP-1 agonist products, amycretin and retatrutide, and their compatibility with DHT. Lexaria has hired a CRO to execute and report on this study. The goal of the work is to examine the compatibility of amycretin and retatrutide with the DHT formulation as well as evaluate the pharmacokinetic (PK) performance and tolerability. The study expects to evaluate 18 different arms that will test new DHT compositions. A June 9^thpress release announced that Animal Study #2 had completed dosing. Previous studies have shown a better safety profile in DHT-formulated compositions compared with the injected versions and improved bio-absorption compared with approved oral forms of GLP-1 products. We think data from this study could come as soon as late August 2026.

Human Pilot Study #7

Lexaria launched a new study called Human Pilot Study #7, designated GLP-1-H26-7. It will evaluate two DHT-sema compositions against Novo Nordisk’s Wegovy tablets. The study is expected to be a five-week evaluation, with three separate arms to assess safety, tolerability, and pharmacokinetics. It will compare SNAC-inclusive DHT-sema tablet and capsule formulations to commercially available Wegovy tablets under fasted pre-dose conditions. This study is different from prior work in several ways. First, an oral tablet will be used for the DHT-sema composition rather than the previous capsule compositions. The tablet formulation is designed to adhere to the lining of the stomach in order to achieve targeted release of semaglutide in order to optimize absorption. Lexaria will formulate both of the DHT test formulations with the SNAC technology for extended use for the first time. The five-week duration of the evaluation is sufficient for subjects to reach steady-state drug concentration. Previous work was limited by single-dose study designs that were shorter in duration.

On May 19^th, Lexaria issued a press release announcing that it had received Independent Review Board (IRB) approval to begin human pilot study #7. In a subsequent update, the company announced that it had begun dosing subjects as of June 14^th. Management expects that the results from the study will support further efforts with collaborators in the pharmaceutical industry that desire the improved convenience of oral delivery and the reduced adverse events that are associated with GLP-1 agonist products.

Summary

Lexaria has begun dosing in its animal study #1 and human study #7 and completed dosing in its animal study #2 to further evaluate candidates in the diabetes and weight loss space, particularly GLP-1 agonists. It is expanding the studies’ scope beyond semaglutide, tirzepatide and liraglutide to evaluate next-generation candidates such as amycretin and retatrutide. After the start of the two animal and one human study, the company reported fiscal year, third quarter 2026 results with $3.6 million in cash and short-term investments on the balance sheet and a burn rate of $1.6 million in the quarter, which was consistent with the burn rate in the first half of the year. We anticipate a capital raise in the near term and also acknowledge the NASDAQ deficiency letter which requires Lexaria to maintain a >$1.00 share price. If the deficiency is not remedied, the company may conduct a reverse stock split.

Management is continuing its efforts to execute a deal with its MTA partner and will share details from its work with them as the year progresses. CEO Christopher notes frequent conversations with prospects and successful meetings at BIO. He referenced several follow-up conversations after the conference that emphasized the need to balance weight loss and safety for GLP-1 agonist candidates. Potential partners and collaborators also were interested in DehydraTECH’s CBD and nicotine formulations. DehydraTECH offers improved speed of onset, better bioavailability, reduced adverse events and potentially a favorable regulatory pathway via 505(b)(2). The reduced level of adverse events shown in Lexaria’s human studies, especially GI tolerability, is a particularly attractive feature.

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^[1]^{SNAC is a technological innovation that allows the protein-based medication semaglutide to be taken orally rather than by injection. Proteins and peptides (like semaglutide) are typically broken down in the digestive system before they can be absorbed, which is why most similar medications must be injected. SNAC works by creating a localized increase in pH around the drug molecule, protecting semaglutide from enzymatic degradation in the stomach, enhancing the permeability of the gastric mucosa and facilitating absorption of semaglutide through the stomach lining into the bloodstream. This technology was developed by Emisphere Technologies (later acquired by Novo Nordisk) and represents a significant advancement in oral delivery of peptide medications.}

HOVR: Reports Full Year Fiscal 2026 Results - A Year of Meaningful De-Risking

Fri, 17 Jul 2026 15:09:00 -0400

By Brian Lantier, CFA

NASDAQ: HOVR

READ THE FULL HOVR RESEARCH REPORT

On Thursday morning, before the market opened, New Horizon Aircraft (NASDAQ: HOVR, referred to as "Horizon Aircraft" or "Horizon") released its full-year fiscal 2026 financial results and hosted a webcast to update investors. In our view, the company has continued to advance the development of the Cavorite X7 with significant new technical relationships and well-timed capital raises that have significantly improved its position in the industry over the past year. The next major event on the "horizon" for the company will likely be revealing its completed full-scale prototype that can begin ground testing in the spring of 2027.

The company completed two registered direct offerings during the quarter that raised gross proceeds of roughly $45 million (USD) through the sale of roughly 19.2 million common shares in May, which materially boosted the company's total share count by about 48% during the quarter from 45.3 million shares in April to about 66.8 million shares in July 2026. Management indicated that this equity issuance provides the company with more than 24 months of liquidity.

In early July, the company announced it had selected BETA Technology's (NYSE: BETA) flight-control hardware and customized software for integration into the Cavorite X7. BETA is on track to certify its conventional take-off and landing vehicle in 2027 and is targeting 2028 for certification of its eVTOL. We are encouraged by the company's decision to fast-track the flight control development of the Cavorite X7 by partnering with BETA.

The eVTOL industry continued to underperform the broader market over the past 3 months as the average stock in the industry has fallen roughly 20% while the S&P 500 has risen by 7%. While individual companies continue to make steady progress toward certification and improve their commercialization efforts, concerns about financing terms and the market's preference for sectors experiencing explosive growth, such as memory chips and AI infrastructure, have diverted investor attention from the eVTOL sector.

We have not made any adjustments to our long-term forecasts for deliveries or margins, but the company has materially lowered its near-term financing risk, which is slightly offset by a higher share count today. Our 12-month target price for the shares remains $3.25, representing more than 100% upside from the current price. Given the stock's past volatility, negative sentiment in the industry, and Horizon's relative outperformance, we think the shares could continue to trade in a wide range over the coming months. We would encourage long-term investors to opportunistically build positions when prices are attractive relative to our target.

We encourage investors to review our full updated research report on New Horizon Aircraft which can be accessed at https://scr.zacks.com/home/.

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CEO Chat with Menny Shalom, CEO of T3 Defense Inc.

Fri, 17 Jul 2026 14:37:00 -0400

NASDAQ: DFNS

Tom Kerr, CFA: Hello, everyone. My name is Tom Kerr. I'm a senior equity analyst at Zacks Small Cap Research, and welcome to another episode of our CEO Chat program. Today we have the CEO of T3 Defense, Menny Shalom. T3 Defense (NASDAQ: DFNS) is a global aerospace and defense holding company focused on acquiring and operating mission-critical defense businesses. The company's headquartered in New York City, and currently most of the company's operations are in Israel, but they are looking to expand into other markets. We initiated coverage of T3 in June of this year with a price target of $1.50 per share US. Welcome, Menny.

Menny Shalom: Hi, Tom. Thank you for having us.

TK: All right, let's start with a few minutes on the background of the company and its history, and what led us to where we are today.

MS: T3 came to the market as Nukkleus originally back in December '23. It was a de-SPAC of a failed fintech company. I got the company back in September of 2024, and I announced the first defense deal back in December of '24. It took us quite some time to make the shift regulation-wise, operationally, and financially, but technically and officially, we started trading as a defense holding company in January of this year. That's when we announced the closing of the original acquisition of Rimon. Rimon is a player in generators and tactical vehicles here in Israel. We also announced acquisitions of a few other companies, including ITS, Tiltan, and ZorroNet. Although we've been in the market since December of '23, we've only been in the market as a defense company since January of this year, and that will continue going forward.

TK: Got it. Let's get into the details of the operating subsidiaries you have now. There are six, and we'll talk about that announcement in a few minutes. But maybe start with what you just mentioned, Rimon.

MS: Sure. Rimon was our first acquisition. Rimon is a manufacturer of generators and masts for the defense industry. They are the sole and exclusive provider of the generators for the Israeli Iron Dome, an anti-missile system sold worldwide. We also import and sell mast and lightning solutions, and we also manufacture tactical vehicles for the defense industry and government agencies in Israel and outside of Israel. This is actually our fastest-growing subsidiary right now, and we're seeing great results there.

Our second acquisition was a company called Tiltan, a software company specializing in the defense sector and providing solutions for GPS-denied navigation, mainly for drones and other vehicles, and, let's say, robotic systems worldwide. It's a company supervised by the Israeli Ministry of Defense, but it sells all around the world.

Then there's ITS, a superior engineering and assembly-line provider for the defense industry, established 35 years ago and considered one of the highest-ranking in Israel. ITS has a subsidiary called Positech, an electromechanical solutions provider that provides the neck for many of the rotating systems worldwide, mainly for radars, tracking devices, anti-missile systems, and so on.

Of the last two subsidiaries, one is called Nimbus. It's the most recent acquisition and the smallest one. It's a company that deals with drones; it imports and sells drones in Israel to the Israeli defense ecosystem, but also provides guidance, instructions, and other services for those drones. The last one is SC II, for which we also initiated and sponsored a SPAC. It was its own publicly traded vehicle looking for an acquisition, and the great thing about that is it's a non-dilutive way of adding value to T3 shareholders, because the SPAC has the ability to acquire a significant business — a couple of hundred million dollars and up — but it has its own publicly traded stock. It can raise its own money, and it did raise its own money, without diluting our shareholders.

TK: Got it. We can go back to the SPAC in just a few minutes. It is an interesting part of the balance sheet and capital structure, but I believe you guys just announced a recent acquisition last week, Project35. Can you give us an update on that?

MS: Right. Project35 is a very interesting company. It was founded by a couple of senior executives in the Israeli defense ecosystem who used to work for Rafael, Elbit, and Israel Aerospace Industries. They founded their own company, Project35, and Project35 does two things. First, it provides services to the defense industry, mainly engineering and assembly, very similar to ITS. We like those companies – they're a very good source of products, services, and clients to whom we can cross-sell our other subsidiaries' products.

But more importantly, they also provide two anti-drone solutions, and this is what we liked about them. They developed their own drone, which is used to intercept other drones, and they also developed a unique system — not commercial yet, but hopefully to be announced in the next couple of months — which is a very significant player in the anti-drone world. As we all know, drones, anti-drones, and related robotic solutions are becoming more and more important on the modern battlefield. For us, it's important to diversify our holdings with assets in those fields. All of our companies are revenue-generating, and most of them are profitable on their own. They are mature businesses that we buy because we think they can grow even further.

TK: Right. Let’s expand on that now. You guys are still in acquisition mode, I believe. Can you talk about what the acquisition criteria are, what size, and what you are looking for in future M&A activity?

MS: We started the year with five acquisitions, and we thought we'd do maybe one or two more this year, and that's the current pace, because we want to spend a lot of time on integration. Criteria-wise, we're looking for revenue-generating businesses, usually family-owned, doing somewhere between $10 million and $100 million in revenue.

Our first and most important criterion is growth potential; we want to see that we're ahead of the growth curve and that we can help accelerate that growth to the market. That's the most important thing. They could be losing money — we'd prefer they weren't — but we want to see there's demand for the product or service and a big upside.

We're looking for revenue-generating businesses, hopefully profitable, with significant growth ahead of them, mature management teams — although we do have the ability to help them grow even further — and we want to see some cross-sell synergies within the group, meaning we can sell their product to our existing customer base and expand internationally. Those are the critical points we're looking to identify.

TK: Are you looking at North America, the European Union, for these acquisitions, all over, or where, specifically?

MS: Although most of our operations are currently in Israel, most of our sales are geared toward international markets, directly and indirectly. Most of the sales our group makes go through integrators, through Tier 1 providers, and are done internationally. If Rafael sells an Iron Dome to a European country or to the US Navy, we're selling our generator through that. 85% of Tiltan's sales are outside of Israel, and so are all the other providers'.

Indirectly, we're currently an international company. Our base and operations, yes, are in Israel, but we're selling globally and looking to increase our global footprint. We've identified several interesting acquisitions. We're looking to start our operating base in the US and grow the market even further there. We see all the initiatives the current administration is taking, not just around drones. Obviously, drones are very well known now, but we see other initiatives that we think we should be, and can be, part of. We're looking to have a significant operating base in the US by the end of the year to grow our presence there.

TK: Got it. That sounds like a great plan. Let's go back to that SPAC for a second. It's an important part of the story where it's a SPAC you sponsored in 2025. There's $172 million of cash in trust to make acquisitions like you indicated, but can you explain the dynamics there? Is it once they make an acquisition, is it something you hold, or can you sell it to find other acquisitions?

MS: There were several good reasons to do that. It's relatively rare for a public company to sponsor a SPAC, which is itself a public company. Number one, a SPAC is a vehicle that allows us to make significant acquisitions without diluting our shareholder base, meaning it has its own pocket and its own sources to do that. On the other hand, it also brings a lot of value. Once there's an acquisition, we, as the sponsor, get somewhere between 20% and 30% of the de-SPAC'd company, and that by itself could be a great source of value for our shareholders.

We're relatively open as to whether we hold it or sell it. I think it's a matter of what this de-SPAC would look like and how it performs, but both ways will be valuable for our shareholder base. It could either be part of our balance sheet, adding significant value there, or it could be a great source of cash flow that we can sell out and liquidate over time.

And again, this is a great way for us to raise money by selling those SPAC shares without diluting our shareholders. We don't need to go back to the market and raise money from our shareholders, diluting them, when we can sell that asset instead. All those factors led us to believe this could be a very interesting and lucrative approach. On top of that, we saw some good opportunities where T3 wasn't a good fit for them, but we think a standalone business, or standalone public company, is a good way for them to move forward, and that's the reason we did it.

TK: No, that's great. It's a great asset to have in a great kind of multi-use situation. Before we get into some company financials, let's just talk about the whole defense industry for a second. Global defense spending could reach $2.9 trillion. We know the US has a budget of $1 trillion. Any thoughts on that?

MS: There's a very interesting and important Morningstar report from a couple of years ago showing that the world is at a historic low in the number of airplanes, battleships, tanks, ammunition, and missiles. And I think there's a cycle — every time we get to that low, wars start somewhere in the world, and the world realizes we need to shape up.

Last year, the European Union announced an $800 billion acquisition of defense-related assets. Obviously, the US administration keeps raising its budget too. Unlike fashion or consumer goods, number one, everybody thinks they understand what defense means; in biotech, that's not the case. Number two, there's no real sensitivity to price. If we need a tank, an airplane, or a missile, we'd just go and get it.

I don't think we're even close to being at the top. I think that trend is going to increase. I think it's not just a matter of scale. It's also a matter of what people are buying. I think robotics, autonomy, and related solutions are going to play a bigger role. Again, I think today those get a lot of the headlines, not necessarily the capacity. Capacity is still with tanks, airplanes, and submarines, the good old way of winning wars.

I think whoever wants to win a war needs to have scale; that's number one. It's not just about having a sophisticated weapon or a sophisticated way of flying a new drone — you also have to have scale, and that's what we see in Ukraine. The number of drones and anti-drone solutions being tested there daily shows that you have to have something innovative, but you also have to have a lot of it. It's not enough just to try it.

I think defense as a sector is going to outperform the overall indexes for the next few years. Defense is usually an era that's delayed. Once you see a war, it takes a couple of years until it's translated into companies' balance sheets and profit and loss. But once it gets there, it's a very long cycle. It's not a cycle that starts and ends quickly like a few other trends we've seen, like Treasury deals or cannabis. I think defense, although it's delayed, is a long cycle once it's there. That's why I think defense as a sector is going to outperform the index for the next few years.

TK: You guys are in a great spot. As you said, we still need the tanks and the planes, but I think they're saying now the growth will come from what they call “low-altitude defense,” which is drones or small-footprint defense, robotics, autonomy, that sort of stuff. You guys are right in the middle of those growth areas in the defense spending, I believe. Just specifically on the company, you gave revenue guidance of about US$26 million for the 2026 calendar year. What's driving that? Has anything changed in that projection?

MS: We're going to update that, I think, in the next few weeks. Obviously, the acquisitions are a good or significant way for those adjustments, but we also see some updates in the market. We see bigger demands for our services and products, but again, you have to remember defense is a marathon, it's not a sprint. The time that you see the demand increasing until it translates into increased revenue, it takes time because usually the government or the Ministry of Defense needs to tender it, they need to think of what the requirement is, and they need to engineer it. Then, someone needs to design it, and then it goes to the manufacturers, and then you have to do the purchasing. The cycles are long. The long-term in defense, I think, and for us specifically, is promising, and we see growing demand for that.

TK: Yeah, there's an old saying in this type of business: the revenues come in slowly, but they go out slowly as well because of these long-term contracts. In terms of profitability, I know you said most of your subsidiaries are profitable or close to it, but you have a lot of corporate expenses. Talk about 2027 and 2028 in terms of EBITDA, profitability, or net profitability. I know you guys aren't giving guidance yet, but just generally speaking about future profitability.

MS: Sure. '26, I think, as I mentioned earlier, is the integration year. During that year, we'll see increased expenses in our administrative and general expenses at the corporate level. We need to hire more people, standardize our systems, and implement ERP solutions. We need to invest in the infrastructure for the company to grow. I believe during '27, both the increased revenue and the stability to reach some kind of equilibrium — a steady place for the company — will allow us to become profitable at some point during the year; I'm not sure exactly when. And I think '28 will be the next phase of increasing that.

A lot of that comes down to understanding, or in a way, choosing the specific subsector within defense. Defense is a huge space. Some of it is industrial companies, some are SaaS or software companies, some are pure AI, and some are a kind of hybrid. In a way, we're trying to be an ETF of that sector, trying to balance and diversify, not just hold one asset, because we think everything is needed for success on the modern battlefield. We're trying to hold assets of different kinds.

TK: Okay, that sounds good. We're almost out of time here. Any closing comments or thoughts before we let you go?

MS: First, thank you for having us. I really appreciate what you guys are doing. I'm very bullish on the sector, as I said. I think the sector itself is a very good place to be for the next couple of years, at least — probably longer. It's a long-term play, not a sprint. People investing in that sector need to be patient — they need to understand geopolitics; they need to understand the world economy. A lot of the factors are out of the hands of the specific companies, and they're affected by that, not to mention the stock itself. But I think this is a good place to be as part of a bigger portfolio.

TK: No, you're right. It is a good long-term story, and I'll just bring up that our price target of $1.50 incorporates a 10-year discounted cash flow. We're looking at what can happen 5 to 10 years from now with this portfolio of businesses, and that's obviously worth a lot more than today's stock price.

Thanks, Menny, for your time today. To read all of our reports, investors can go to scr.zacks.com as well as our social media channels. If you want more specific information on the company, you can go to their website at t3dfns.com. That concludes our chat. Thanks again, Menny.

MS: Thank you so much.

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ONCY: Seeking Registration Pathway for Part B of REO 033 Trial

Thu, 16 Jul 2026 11:16:00 -0400

By David Bautz, PhD

NASDAQ: ONCY

READ THE FULL ONCY RESEARCH REPORT

Business Update

Seeking Alignment on Turning REO 033 Into a Registration-Directed Trial

On July 13, 2026, Oncolytics Biotech, Inc. (NASDAQ: ONCY) provided a regulatory update for REO 033, an ongoing randomized study evaluating pelareorep, the company’s lead development product, in combination with folinic acid, fluorouracil, and irinotecan (FOLFIRI) and bevacizumab for the second-line treatment of patients with RAS-mutant, microsatellite stable (MSS) metastatic colorectal cancer (mCRC). Pelareorep is a systemically delivered oncolytic virus designed to selectively replicate in cancer cells and enhance anti-tumor immunity

Oncolytics intends to leverage the existing clinical infrastructure for the multi-part REO 033 study to potentially accelerate development of pelareorep. The company expects approximately half of planned clinical sites to be activated by the end of July 2026, with remaining sites to be activated by the end of August 2026. We anticipate Part A of the study, which is planned to enroll 60 patients, could achieve accelerated enrollment during the second half of 2026, with Oncolytics reporting that more than 20 patients having already been pre-identified at participating trial sites.

The company will be conducting a Type D meeting with the FDA to discuss the addition of Part B to the REO 033 study. Part B is expected to be a larger randomized cohort intended to potentially support registration while preserving the core elements of the ongoing study. Key areas for regulatory alignment include trial size, endpoint strategy, statistical considerations, and the appropriate approval pathway.

Alignment with the FDA could enable Oncolytics to expand the existing randomized study into a registration-directed program rather than initiating a separate Phase 3 trial, potentially reducing timelines for pelareorep in second-line RAS-mutant MSS mCRC. The FDA has up to 30 days to provide feedback following the meeting, and we anticipate additional clarity from the company following receipt of the formal meeting minutes.

The REO 033 study builds upon results generated in the prior REO 022, for which Oncolytics recently provided updated durability data. Those results demonstrated a 19.5-month median duration of response in second-line RAS-mutant MSS mCRC patients, in addition to previously reported median overall survival (OS) of 27.0 months. These results compare favorably to established benchmarks for FOLFIRI plus bevacizumab in the second-line setting. Across prospective trials and real-world studies, objective response rates for FOLFIRI-based regimens in previously treated mCRC are typically in the range of ~6–11%, with median PFS of approximately 5–7 months and median OS of approximately 11–13 months (Bennouna et al., 2013; Iwamoto et al., 2015). While cross-trial comparisons should be interpreted with caution, the magnitude of improvement observed with pelareorep, particularly in a molecularly defined, poor-prognosis RAS-mutant population, suggests the potential for meaningful clinical benefit beyond cytotoxic therapy alone.

Conclusion

We view the upcoming Type D meeting with the FDA regarding the potential expansion of REO 033 into a registration-directed study as an important inflection point for Oncolytics. FDA feedback will be critical in determining the trial design, endpoint strategy, and regulatory pathway required to support potential registration. Importantly, a successful regulatory alignment could allow Oncolytics to leverage an ongoing randomized trial rather than restart development with a de novo pivotal study, potentially preserving time and capital. We look forward to an update from the company following the receipt of the meeting minutes. With no changes to our model, our valuation remains at $6 per share.

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PRE Continues to Exceed Expectations and Receive Preferential Financing

Wed, 15 Jul 2026 12:05:00 -0400

By Brad Sorensen, CFA

NASDAQ: PRE

READ THE FULL PRE RESEARCH REPORT

Prenetics Global (NASDAQ: PRE) delivered one of its most significant strategic financing announcements to date, securing a $1 billion growth financing commitment from General Catalyst's Customer Value Fund (CVF) for its rapidly expanding IM8 premium health and longevity brand. Rather than being a traditional financing transaction, the arrangement represents a sophisticated growth capital partnership designed to accelerate customer acquisition while preserving shareholder value.

The most attractive aspect of the transaction for investors is that it is entirely non-dilutive. General Catalyst will not receive common shares, warrants, convertible securities or any other equity-linked instruments. Existing shareholders therefore retain their ownership interest while the company gains access to a substantial pool of capital that can be deployed to accelerate growth. In an environment where many emerging growth companies finance expansion through repeated equity offerings, Prenetics has instead secured capital that allows it to pursue aggressive expansion without increasing its share count.

Under the agreement, General Catalyst will finance up to 70% of IM8's marketing expenditures on a monthly customer cohort basis. Rather than receiving fixed interest payments, the investment firm will earn a capped return tied only to the performance of those customer cohorts. Once General Catalyst has recovered its investment plus its predetermined return, every dollar of future revenue generated by those customers belongs entirely to IM8. This structure aligns the interests of both parties while allowing Prenetics to retain the long-term economic value created by successful customer acquisition campaigns.

The financing also represents a strong external validation of IM8's business model. General Catalyst is one of the world's leading venture investment firms, and its Customer Value Fund specializes in financing companies with highly predictable customer lifetime values. The firm's willingness to commit up to $1 billion suggests confidence in IM8's customer acquisition economics, recurring revenue profile and AI-driven marketing platform. According to Prenetics, every dollar historically invested in customer acquisition has generated approximately $1.44 in gross profit from mature customer cohorts, providing the foundation for the financing structure.

We want to note that the financing was not undertaken because Prenetics needed additional liquidity. Management emphasized that the company entered the transaction from a position of financial strength, with approximately $139.7 million in cash, financial assets and escrow balances following earlier strategic divestitures and alongside its previously announced $40 million share repurchase authorization. Instead, the investors should view the arrangement as a more efficient source of growth capital while preserving existing cash for new product development, clinical research, and strategic opportunities.

Management's confidence in IM8's outlook was further demonstrated by another increase in financial guidance. The company raised expected 2026 IM8 revenue to $210-$220 million, up from the prior outlook of $190-$210 million, marking the second upward revision this year. Prenetics also projects IM8 to achieve a $300 million annualized revenue run rate by the end of 2026 and exceed $400 million in revenue during 2027, highlighting management's belief that demand remains exceptionally strong. June represented the highest monthly revenue in company history, generating approximately $17 million in preliminary sales as momentum continued into the third quarter.

Beyond simply funding advertising, the agreement has the potential to become a competitive advantage. With marketing capital readily available, the company can pursue customer acquisition opportunities more aggressively while continuing to refine its AI-powered marketing engine across more than 40 global markets. This should allow the company to scale more rapidly while maintaining balance sheet flexibility and avoiding the opportunity cost of deploying its own cash toward marketing rather than innovation.

The transaction provides access to substantial growth capital without shareholder dilution, validates the strength of IM8's customer economics through the backing of a premier institutional investor, preserves the company's already strong balance sheet, and supports an acceleration in revenue growth that management believes will drive IM8 toward becoming a global premium health and longevity brand. For investors looking to invest in PRE, the financing removes a significant constraint on growth while allowing existing investors to fully participate in the long-term value created as the customer base expands.

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TLGRF: Talga Group Makes Important Announcements Regarding Supply of its Anode Products to Customers

Tue, 14 Jul 2026 15:13:00 -0400

By Tom Kerr, CFA

OTCQX: TLGRF

READ THE FULL TLGRF RESEARCH REPORT

In July 2026, Talga (OTCQX: TLGRF) made two important announcements regarding the supply of its anode products to customers.

➢ On July 3rd, the company announced that it has started commercial deliveries of its flagship battery graphite anode product Talnode®-C to its customer Nyobolt under a binding offtake agreement first established in 2025.

After final customer qualification and audits were done, the first shipment at the contracted commercial price under the agreement was delivered from Talga’s EVA demonstration plant in Luleå, Sweden. This marks the transition from qualification volumes to ongoing sales revenue and represents a significant commercial milestone for Talga and the European battery ecosystem. The balance of the 3,000-tonne offtake will be supplied from Talga’s planned commercial-scale anode plant, with construction targeted to begin in 2027, subject to the FID.

Pricing terms were not announced and remain private. Although the initial shipment of 3,988 kg of anode product does not have a material financial impact, it marks a major milestone as the first commercial natural graphite anode produced outside Asia and supplied into the global battery supply chain. The anodes were manufactured in Sweden using Talga’s own natural graphite resources and demonstrate the successful scale-up of the company’s proprietary technology.

Nyobolt is a UK-based battery technology company developing ultra-fast charging, high-power lithium-ion batteries. They recently completed a Series C funding round at a US$1 billion valuation. Talga's Talnode®-C has been qualified for use in Nyobolt's batteries, which can charge in under five minutes. Nyobolt's strategic partners include Scania for heavy-duty commercial vehicles and mining equipment, and Symbotic for AI-powered warehouse robotics, where rapid charging and high power density improve uptime and productivity.

This commercial relationship highlights growing demand for Talnode®-C in high-performance battery applications beyond passenger EVs. These include commercial and industrial drones, heavy-duty vehicles, defense systems, robotics, and AI data center backup power. These markets require reliable, high-power energy storage with rapid charging to maximize uptime and support mission-critical operations. Talnode®-C is well positioned to address this demand through its low internal resistance, ultra-high crystallinity, long cycle life, ultra-fast charging capability, and secure FEOC-free European production.

Beyond the Nyobolt offtake, Talga is advancing negotiations with multiple prospective customers, with several leading battery manufacturers across Europe, Japan, and North America in the final stages of qualification and onboarding. Commercial activity has accelerated as battery producers, government agencies, and financing partners seek diversified, high-performance anode supply chains. This growing commercial momentum is expected to support financing and construction of Talga's large-scale integrated Vittangi Anode Project.

➢ On July 5th, announced it has executed a non-binding Letter of Intent with Mitsubishi Chemical Corporation, a major Japanese manufacturer of lithium-ion battery materials. The LOI creates a structured engagement to begin ongoing technical evaluations and commercial discussions regarding potential supply of Talga’s anode products to MCC for hybrid electric vehicle batteries.

The LOI establishes a framework for negotiating a long-term commercial supply relationship, targeting a conditional Supply Terms Sheet by September 2026 and a definitive three-year Supply Agreement by December 2026. Both parties will also collaborate on product specifications, quality standards, supply chain due diligence, ESG performance, and the development of FEOC-free, low-carbon anode materials.

Talga’s engagement with a major international battery materials producer represents a strategic commercial opportunity to validate its Talnode® graphite anode materials in the high-growth hybrid electric vehicle sector while establishing new supply-chain relationships with Japanese industry. We don’t expect any material financial impact at this time; however, the collaboration highlights growing demand for Talga’s 100%-owned, vertically integrated Swedish mine-to-anode operations, which produce high-performance, fast-charge and high-power graphite products using FEOC-free (Foreign Entity of Concern) supply sources.

Valuation

We believe that Talga Group is poised to produce rapid and high-margin revenue growth over the next 5-10 years as the Vittangi project (both mine and plant) becomes fully operational. When the refinery reaches full capacity, the entire project could generate over A$200 million in high-margin revenue. We believe the company will generate positive EBITDA and net profits in the 2028 fiscal year ending 6/30/28.

Our primary valuation tool utilizes a Discounted Cash Flow process. Under the scenario described below, our DCF based valuation target is approximately US$1.71 per share. Our target price may be conservative as it utilizes a high discount rate of 15.0% due to the unpredictability of earnings, higher prevailing interest rates, and the timeline for reaching full-scale commercialization.

We also use forward Price / Revenue multiples relative to peers as a backup methodology to create a target price for TLGRF stock. Separately, we also add an in situ analysis to create a range of values for the graphite mines.

We apply an 11.9x revenue multiple to FY 2028 revenues and discount back at a 15% annualized rate. This methodology provides a value of approximately US$1.03 for TLGRF stock.

Based on this range of values, we arrive at a near-term price target of US$1.50 per share. As the overall project development continues to progress throughout CY 2026 and CY 2027, there appears to be substantial upside above that target price.

Although we have not incorporated the value of the Vittangi mine into our price target at this time due to its non-operating status, we believe it’s worth noting for investors the long-term value potential of the mine. Based on a discounted calculation of Inferred and Indicated resources for the Vittangi mines, we believe the mine on its own could be valued between US$0.38 and US$1.19, which may provide a floor price for TLGRF stock.

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ENSC Receives Vital Funding for Drive to Commercialization

Tue, 14 Jul 2026 11:58:00 -0400

By Brad Sorensen, CFA

NASDAQ: ENSC

READ THE FULL ENSC RESEARCH REPORT

Ensysce Biosciences (NASDAQ: ENSC) is developing what could become a new generation of prescription medicines designed to maintain the effectiveness of powerful pain medications while dramatically reducing the risks of abuse, misuse, and accidental overdose. Rather than simply reformulating existing opioids, the company has built two proprietary technology platforms—TAAP (Trypsin Activated Abuse Protection) and MPAR (Multi-Pill Abuse Resistance)—that are intended to create medicines with safety mechanisms built directly into the drug. This approach addresses one of the largest unmet needs in pain management: providing effective treatment for patients with severe pain while reducing the societal burden associated with opioid misuse.

The company's lead program, PF614, is an abuse-resistant oxycodone prodrug utilizing the TAAP platform. PF614 has advanced into its pivotal Phase 3 PF614-301 clinical trial, placing Ensysce in the late stages of development and significantly closer to a potential regulatory submission than many biotechnology companies of comparable size. During the first quarter of 2026, the company reached approximately 50% of its interim enrollment target, an important operational milestone demonstrating continued progress toward commercialization.

Even more compelling to us is PF614-MPAR, which combines the TAAP abuse-deterrent technology with the company's MPAR overdose-protection platform. The drug is specifically engineered to release therapeutic levels of medication under normal use while limiting additional opioid exposure if excessive quantities are consumed orally. Initial clinical data demonstrated that the technology functioned as designed, leading the FDA to grant Breakthrough Therapy designation. The program has since generated peer-reviewed clinical data validating the overdose-protection mechanism, and the company recently initiated the final stage of the PF614-MPAR-102 clinical study following Institutional Review Board approval. If successful, PF614-MPAR could represent an entirely new category of safer opioid therapy.

Beyond pain management, Ensysce is leveraging its proprietary technology across additional high-value markets. Its ADHD pipeline includes PF8026 and PF8001, which are being developed as abuse-resistant stimulant therapies designed to address concerns surrounding misuse of traditional ADHD medications. The company is also advancing PF9001 for opioid use disorder, expanding the potential applications of its technology platforms well beyond pain treatment while increasing the long-term commercial opportunity.

One of the most important developments for ENSC in our view is the company's recently announced federal funding. Ensysce was awarded the next $5.3 million installment under its multi-year National Institute on Drug Abuse (NIDA) grant, completing the funding structure of a program totaling approximately $15 million. This non-dilutive funding provides substantial financial support for continued clinical development of PF614-MPAR while reducing the need for shareholder dilution that often accompanies late-stage biotechnology development. It also represents meaningful third-party validation, as federal agencies continue to invest in technologies they believe could help address the opioid epidemic.

The significance of this funding extends well beyond the immediate cash infusion. Late-stage clinical development and regulatory preparation are among the most expensive phases of drug development. The additional capital allows management to continue enrolling patients, complete critical clinical studies, prepare regulatory submissions, and generate the safety and efficacy data required for commercialization. By helping fund these activities, the grant strengthens Ensysce's financial position while allowing management to remain focused on executing its development strategy rather than continually raising capital.

As the company advances toward completion of its Phase 3 program, investors should start to consider the transition from a development-stage biotechnology company to a commercial organization. The combination of a late-stage lead asset, FDA Breakthrough Therapy designation for its next-generation overdose-protected product, expanding intellectual property, multiple pipeline opportunities, and substantial government support provides several potential value-creation catalysts over the coming quarters. With PF614 progressing through Phase 3, PF614-MPAR advancing through its final clinical studies, and additional programs targeting ADHD and opioid use disorder, Ensysce looks to us to be positioned to capitalize on a growing demand for safer prescription therapeutics.

While clinical, regulatory, and commercialization risks remain—as they do for all biotechnology companies—the recently announced funding significantly improves Ensysce's ability to advance its programs toward market approval. For investors seeking exposure to an innovative company addressing one of healthcare's most important unmet needs, Ensysce's differentiated technology, late-stage development pipeline, and strengthened financial resources create a compelling investment narrative as the company moves closer to potential commercialization.

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