- December 15, 2023
- Posted by: John Arcena
- Category: Blog articles
Six days until the first day of Winter. Nine days until Christmas Eve. Have you got your shopping done?
The Santa Claus rally appears to be with us this year. Canadian markets hit a high for the year this week but are only up 8.4% year to date. U.S. markets also made a new high for the year but are up over 40%.
U.S. inflation ticked down again last month, with cheaper gas helping further lighten the weight of consumer price increases. The consumer price index rose just 0.10% from October to November. Compared with a year earlier, prices were up 3.1% in November. At the same time, the latest data showed that prices in some areas; services such as restaurants, used cars and auto insurance continued to rise uncomfortably fast.
At Wednesday’s FOMC meeting the Fed announced that it is going to hold rates steady, but to everybody’s surprise, changed direction away from “higher for longer” opening the door to rate reductions next year, as much as 0.75% in 3 cuts. The stock markets took off.
British and EU central bankers continued to hold rates with no indication of a change in policy. Globally Central banks are always trying to achieve a “soft landing”; that is getting through the rate tightening cycle without a traditional recession. But it is exceedingly rare that they make it happen. If they get it wrong, there may be quite a large divot in the runway.
Following the latest U.S. CPI inflation reports, which were largely in line with estimates, the USD was slightly weaker, and it has continued weaker through the week, especially after the Fed suggested rate cuts were out there.
Precious metals responded well to the possibility of rate cuts with gold jumping by $50 to sit solidly over the magic $ 2,000/oz level at $ 2,030 today. Silver moved up by $1.25 and sits at $24.03/oz. today. Shares of gold companies began to attract buying. The junior explorers are still very inexpensive, but movement could be seen, maybe as some of those undeclared shorts were getting covered.
Base metals caught a lift from the weaker USD with copper at $ 3.90/lb. It will take more than that for copper companies to react, but copper demand and prices are forecast to rise in 2024. Junior companies with copper-based assets are way too cheap.
Battery materials did not respond very much, there was a slight upward adjustment in Lithium, but it remains at a 30-month low. Do not give up yet, there is a lot more demand growth in store when EV sales kick-off. There are many juniors with quality Lithium projects at bargain prices, but when to buy.
Oil prices have sold off for about seven consecutive weeks. Fundamentals have weakened, while supply has grown more than anticipated amid strong demand and yet global inventories remain at their lowest levels since 2017. Despite an agreement at The United Nations Climate Change Conference (COP28) that claims it signals the “beginning of the end” of the fossil fuel era, we know oil is not going away anytime soon. Even though WTI prices today are at $70.65/bbl this morning, forecasts are for a fundamental floor of about $80 with a ceiling of around $90. Next year when investing in oil you will have to pick the right stocks.
If this really is the seasonal rally, then you need to be invested in it. Keep the money working. I have recently participated in Sokoman Minerals Corp. Flow-through Financing and I am also participating in Tenet Fintech’s offering which is discussed below. Hard to resist these bargain basement prices!
It has been a productive week for our clients, and we are pleased to present to you our round-up of their news released between December 11-15, 2023.
On December 12, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF)announced that it has entered into an agreement with Research Capital Corporation as the lead agent and sole bookrunner in connection with a marketed private placement offering of securities of the Company for gross proceeds of up to $10,000,000. As disclosed in prior Press Releases, the Company has raised a total of $10,943,000 in gross proceeds to date. Tenet insiders, CEO, Johnson Joseph, Chinese Operations CEO, Liang (Golden) Qiu, CFO, Jean Landreville, and Tenet Director Sanjay Sharma intend to participate in the Financing.
The net proceeds from the Financing will be used to:
- Complete the remaining pillars on the Cubeler® Business Hub
- Complete the development and begin commercialization of the ie-Pulse product offering
- Launch the Cubeler® Business Hub in the USA
The Financing consists of the sale of:
- up to 24,000,000 units of the Company at a price of $0.20 for aggregate gross proceeds of up to $4,800,000 (Read the Tenet LIFE Offering Document here); and
- up to $5,200,000 convertible debenture (CD) units of the Company (at a price of $1,000 per CD Unit for aggregate gross proceeds of up to $5,200,000
The Company shall not issue any Equity Units unless the Company has raised minimum aggregate gross proceeds of $7,500,000 in any combination of Equity Units and CD Units. The CD Unit Offering is not subject to a minimum offering amount.
Each Equity Unit is comprised of one common share of the Company and one Common Share purchase warrant of the Company. Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.40 for a period of 24 months from the date of issuance thereof.
Each CD Unit is comprised of one 10.0% unsecured convertible debenture of the Company in the principal amount of $1,000 and 5,000 Common Share purchase warrants. The Convertible Debentures will mature thirty-six (36) months from the date of issuance thereof and, subject to prior conversion in accordance with their terms, will be repaid in cash at the Maturity Date. Each CD Warrant will be exercisable to acquire one Common Share at an exercise price of $0.40 for a period of 24 months from the date of issuance thereof.
On December 12, 2023, Visionstate Corp. (TSXV: VIS) announced a business update.
Visionstate IoT Inc. continues to rapidly deploy its WANDA™ technology in the facility management sector. WANDA™ has proven to be an invaluable tool in validating key cleaning protocols, crucial in the face of ongoing threats posed by viruses and diseases in society.
Visionstate IoT is proud to share its ongoing collaboration with two leading Canadian universities on large-scale installations. These projects involve tracking thousands of areas within campus premises to ensure a safe and hygienic environment for students and staff. These collaborations emphasize Visionstate’s commitment to safety but also significantly contribute to the recurring revenue stream, driven by its software-as-a-service (SaaS) business model. Visionstate is also pleased to announce the addition of a new shopping centre location in Calgary, Alberta, to its WANDA™ portfolio of properties.
The Company’s substantial U.S.-based customer has demonstrated confidence in WANDA™’s capabilities by doubling the size of its existing installation base, reflecting the effectiveness of WANDA™ and signifies the continued trust and satisfaction of Visionstate’s clients in the United States.
In response to evolving market demands, Visionstate IoT has successfully introduced Time of Flight (ToF) people counters. These innovative counters not only enhance data accuracy but also represent a new revenue stream for the Company. Rolled out to universities and colleges, the ToF people counters provide valuable insights into traffic counts, contributing to enhanced efficiency in facility management.
Visionstate Corp. is actively pursuing an international opportunity at the head office of a global firm in London, England. This installation represents a full application of all WANDA™’s features and is could be a launch point for additional growth in the European market. Visionstate’s entry into the European market aligns with its strategic vision for global expansion and diversification.
Visionstate Corp. recently concluded its Annual General Meeting on December 5, reaffirming its commitment to corporate governance. The following directors were re-elected to the board:
- John Putters
- Belinda Davidson
- Jim Duke
CHF’s Byte-sized Reviews featuring Visionstate Corp.’s smartphone-based platform WANDA™.Read here: https://mailchi.mp/46ef98031cc4/chfs-byte-sized-reviews-december-14?e=79ef2b9dd7
