The MiningNewsWire Podcast

Pharmaceutical companies invest enormous amounts of time and money on the research and development of new drugs, typically years in the making and costing millions of dollars. Only occasionally is a new drug developed that’s approved and generates more than $1 billion per year in sales, a benchmark in the industry commonly called a “blockbuster.” Blockbusters are scarce, but the proverbial quest for blockbuster drugs continues unabated because of vast unmet medical needs and because blockbuster therapeutics can be worth tens of billions of dollars during their patent-protected lives. Little wonder that pharmaceutical giants often buy up promising new drugs, some even in their infancy, not just to fill their pipeline or mesh with current R&D projects but also to bank on a bonanza of prospective revenues that could exceed $100 billion. With so much at stake, it only makes sense to pay special attention to scientists who have previously developed and delivered these blockbusters. With this in mind, expectations are high for 180 Life Sciences Corp. (180 Profile) since the founders have significant expertise in developing new therapeutics that were sold to big pharma for billions. They are renowned for development of some of the largest-selling drugs to ever come to market. Now they aim to do it again with a pipeline of drug candidates in sequential stages of development that address large untapped markets. The founding scientists at 180 Life Sciences discovered the anti-TNF drug class that led to Remicade, the fourth all-time best-selling drug in the world.

Compelling evidence of the therapeutic benefits of psychedelic drugs appears in multiple scientific studies. Several clinical trials are underway in the United States and worldwide to investigate the therapeutic effects of psilocybin, the active component in the fungi known colloquially as "magic mushrooms." There is new hope for treating such debilitating disorders as depression, anxiety, post-traumatic stress disorder, anorexia, obsessive-compulsive disorder, and addiction. With more than $6.8 billion on the line by 2027, companies at the vanguard of the psychedelic therapeutic drug market could reap enormous benefits in the coming years. Some of these companies, such as Cybin Corp. (Cybin Profile), which focuses on drug development and unique delivery mechanisms, are targeting areas that have been particularly underserved in the past decade. Those areas encompass life-disrupting psychiatric and neurological conditions such as major depressive disorder (MDD), addictions, and other mental illnesses. A pioneer in the psychedelic sector, CYBIN is working toward becoming the first life sciences company to bring a psilocybin drug targeting MDD to market. A successful outcome could completely upend treatment protocols. The psychedelic space’s promise is perhaps best illustrated by the sector’s largest-ever private financing round of $80 million for Compass Pathways (NASDAQ: CMPS), the first psychedelic company to IPO on the NASDAQ. Not to be outdone, Mind Medicine Inc. (OTC: MMEDF) is following suit; the company applied for NASDAQ uplisting last month. In addition, Field Trip Health Ltd. (CSE: FTRP) started trading on the Canadian Securities Exchange (CSE) earlier this month.

The year 2020 has already seen 127 SPAC IPOs, which have collectively raised over $48.5 billion in proceeds — more than the past ten years combined. A special purpose acquisition company (SPAC) is essentially a blank-check company formed to raise capital through an IPO with the sole intent of buying or merging with another operating company. SPACs have evolved to become an expedited and cost-effective way of doing an M&A deal and have been utilized by multiple Wall Street heavyweights. Going public via a SPAC enables a company to get a deal done in weeks instead of months, and the approach is proving to be an especially attractive vehicle for biotech companies by providing ready access to capital and much greater public visibility. A successful biotech SPAC hinges on shrewd management and a target company that offers a strong risk/reward proposition, is focused on unmet medical needs, and has proven scientific and clinical leadership. After  evaluating over 50 companies to meet these criteria for success, KBL Merger Corp. IV (NASDAQ: KBLM) entered into a definitive merger agreement with 180 Life Sciences Corp. (180 Profile), which is expected to close within one month. 180 Life Sciences represents a new business model in biotech. The company is founded and run by four world-renowned scientists and entrepreneurs who invested their own money to start the company. Of considerable note: the founders own the majority of the equity in 180 Life Sciences and aren’t selling any in this transaction. Immatics N.V. (NASDAQ: IMTX) received proceeds of around $250 million in a biotech SPAC business combination. Immunovant Inc. (NASDAQ: IMVT), a biopharmaceutical company, went public via a SPAC business merger, and four months later, the company was able to raise $134 million in a new public offering. AdaptHealth Corp. (NASDAQ: AHCO), the third-largest distributor of home medical equipment in the United States, also went public via a SPAC business merger in July and has appreciated 50% since. After raising $1.1 billion, a business combination is expected this month between Churchill Capital Corp III (NYSE: CCXX) and MultiPlan Inc., a market leader in health-care cost-management solutions. It’s already been a heck of a year for SPACs, and some say the best is yet to come.

Whenever bitcoin or other cryptocurrencies are discussed, two primary predictions seem to prevail. Either cryptocurrencies are history’s greatest bubble about to burst, or they’re new undervalued global mediums of exchange worth untold millions. The actual outcome is likely to rest somewhere in the middle of these two extremes. Some pundits have compared the rise of cryptocurrency to the dot-com bubble, suggesting the fintech trend is worthless and on the precipice of a titanic bust. Remember, however, that even though the dot-com boom produced plenty of fiascos, it also gave birth to the likes of Amazon and Google. As cryptocurrency markets become more standardized and regulated, both winners and losers will shake out. Realizing these digital mediums of exchange will likely integrate into the global financial system in a significant fashion, evaluating companies that enable cryptocurrency transactions makes sense. Companies at the vanguard of facilitating global cryptocurrency transactions such as Virtual Crypto Technologies Inc. (OTCQB: VRCP), PayPal Holdings, Inc. (NASDAQ: PYPL), Square, Inc. (NYSE: SQ), Broadridge Financial Solutions, Inc. (NYSE: BR) and Green Dot Corporation (NYSE: GDOT) will not only accelerate universal adoption but also have the potential to emerge among the biggest winners in the entire crypto universe.

This month the Supreme Court issued a decision striking down a 1992 federal law banning commercials sports betting in 46 states. In one fell swoop, the 6-3 decision swung open the door for individual states to decide for themselves whether to allow sports betting within state boundaries. The decision, which may mean legalizing the estimated $150 billion in illegal wagers on professional and amateur sports that Americans make every year (http://nnw.fm/g6LGx), also has massive impact on sport betting organizations such as SinglePoint, Inc. (OTCQB: SING), which has been in the daily fantasy sports arena since March 2016. Other companies that stand to benefit from this milestone ruling include Caesars Entertainment Corporation (NASDAQ: CZR), MGM Resorts International (NYSE: MGM), Penn National Gaming Inc. (NASDAQ: PENN) and Boyd Gaming Corporation (NYSE: BYD).

The multibillion-dollar internet, voice, video and data services markets are poised to be rapidly transformed by the deployment of next-generation wireless technologies such as 5G. As this transition occurs over the next decade, 4G Long-Term Evolution (LTE) will give way to 5G amid skyrocketing demand for greater bandwidth. While many companies are already providing some form of fixed wireless for high-speed triple play services (internet, TV and phone) using standard technologies, Hammer Fiber Optic Holdings Corp. (OTCQB: HMMR) stands out with its patented Hammer Wireless® AIR point-to-multipoint wireless system, which could revolutionize the entire industry’s approach to wireless. This would be no small feat considering that other big companies in this space today are operators such as Windstream Holdings Inc. (WIN) or veritable household names such as Verizon Communications Inc. (VZ), AT&T Inc. (T) and Alphabet, Inc. (GOOG).

Demand for high-efficiency batteries is leading to growth in the cobalt industry, but new ventures are threatened by the Democratic Republic of Congo’s (DRC) dominance in mining and China’s in processing. Some companies are now trying to break this stranglehold, with First Cobalt Corp. (TSX.V: FCC) (OTCQX: FTSSF) establishing the largest integrated operation in North America and eCobalt Solutions, Inc. (OTCQX: ECSIF) joining in with the construction of a mine in Idaho. Katanga Mining Ltd Ord (OTC: KATFF) dominates the DRC-sourced market despite legal troubles besetting its mining operation in the country. The backing of parent company Glencore PLC ADR (OTC: GLNCY) may give Katanga the resources to weather the storm and allow these linked companies to become the world’s largest producers in cobalt. Meanwhile, investment companies such as Cobalt 27 Capital Corp. (TSX.V: KBLT) are investing in both cobalt and its producers, showing the wider faith the market has in this mineral.

Almost everyone is aware of the tear that lithium stocks have been on over the last couple years. Driven by the projected exponential increase of electric vehicles and coupled with broad-based, ever-increasing demand for lithium-ion (L-ion) batteries, many recognized names in the lithium mining sector tripled in value to reach all-time highs by the end of last year. Shortly after the start of 2018, lithium shares tumbled by 14 percent and more on a negative forecast by Morgan Stanley analysts. That forecast has since been widely derided by a wide range of lithium industry experts, which give the negative scenario less than a one percent chance of happening. Reflecting the true scale of the unfolding energy transformation, respected independent commodity forecaster Roskill recently tripled its demand forecast for lithium through 2026. Roskill originally forecast lithium demand would increase to 328,000 tons of lithium carbonate equivalent by 2026 and now predicts lithium demand to explode to over 1,00,000 tons within the next eight years. Lithium-related stocks and ETFs have proved to be the best way to play our collective electric future in vehicles, electronics and high-density storage — all dependent on lithium batteries. Broadly diversified across the entire production chain, the Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium cycle from raw resource to battery production, reducing risk but limiting upside opportunity. Miners have been and should continue to be the best avenue to most directly and greatly profit from the burgeoning lithium demand and market imbalances. Even though lithium is trading near all-time highs, if demand increases 300 percent as many predict, miners in the renowned “lithium triangle,” such as Albemarle Corp. (ALB), Sociedad Quimica y Minera S.A. (SQM), and FMC Corp. (FMC) are likely to do well. However, given the location and value of its assets, a prospective junior miner, Lithium Chile Inc. (TSX.V: LITH) (OTCQB: LTMCF), may possibly outperform any other lithium player this year.

Self-driving cars are already appearing on our roads. One of the main technological barrier holding them back from full use is the creation of effective sensor systems, and several companies are conducting specialist research in this area. Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) (TASE: FRSX) has created a unique system that combines infrared and visible light cameras in stereo technology that can detect obstacles under all weather and lighting conditions. Google’s parent company, Alphabet, Inc. (NASDAQ: GOOG), is developing driverless cars through its Waymo subsidiary, using a wide range of different sensors. The work of Tesla, Inc. (NASDAQ: TSLA) in this area is well-known and heavily reliant on a range of visible light cameras. Automotive safety specialist Autoliv, Inc. (NYSE: ALV) has created a range of separate detection systems using different technologies. Apple, Inc. (NASDAQ: AAPL), on the other hand, is focusing on the potential of a single complex lidar system. It’s a diversity of approaches that shows a technology approaching maturity.

The rise of artificial intelligence is fast disrupting the financial universe and establishing new paradigms of understanding and action. Computers now drive market velocity, and because the volume of available financial information has expanded exponentially over the last few decades, machines have become indispensable to deciphering these mountains of megabytes in order to create clear-cut actionable intelligence. Given the large data sets and quantitative nature of the modern-day financial services sector, artificial intelligence (AI) has innumerable applications that are poised to revolutionize the industry over the next few years. AI saves companies time and money through the use of algorithms to generate insights, improve customer service and make calculated performance predictions. Because of the ability to foresee market trends and deliver analysis and insights far better than humans, information behemoths and financial titans such as S&P Global Inc. (NYSE: SPGI), Euronext NV (OTC: EUXTF), The Blackstone Group, L.P. (NYSE: BX) and Thomson Reuters Corp (NYSE: TRI) are integrating and increasingly acquiring machine-learning, artificial intelligence technologies such as those provided by AnalytixInsight Inc. (TSX.V: ALY) (OTCQB: ATIXF), which offers investors a compelling opportunity to participate in this industry shift.