AnalytixInsight

Our Canadian capital markets and buy-side contacts are excited about upcoming Thinkific and Magnet Forensics IPOs. At the same time, investors remain somewhat cautious with regards to deploying capital towards smaller cap deals, as many strongly performing small cap stocks are down ~40-60% from highs set in mid-late February. Investor response to some highly anticipated US new listings, such as Coinbase and TuSimple was tepid as well. That said, shares of newly listed Esports Technologies Inc. have performed very well as investors continued to cheer the public debut of the Las Vegas-based online gambling company. The company provides esports wagering products and technology. Investors can also play this theme via Sophic Client LuckBox (LUCK-TSXV, LUKEF-OTC) and the adjacent esports community theme via soon to be publicly listed Sophic Client Swarmio.

After a few weeks of relatively muted capital markets activity, this past week witnessed a bit of on uptick in innovation sector related public market financings. That said, private markets activity was very robust as well, exceeding public market financings. We’re encouraged with the level of support Kneat (KSI-TSXV) has received from investors; a stock we covered for a few years as sell side equity analysts. Sophic Client, AnalytixInsight (ALY-TSXV), could benefit from anticipation of its MarketWall unit’s business-to-consumer user growth at Intesa Sanpaolo alone. We published a research piece highlighting our conservative estimate of what every 100,000 MarketWall users could add to AnalytixInsight’s share price. We also investigate how the stock could benefit when analyzing potential revenues generated by users. Another Sophic client, Mijem (private) announced an investment by noted technology entrepreneur Calvin Ayre, founder of venture capital firm Ayre Group Ventures and blockchain conglomerate CoinGeek. In the USA, Coinbase released monster Q1/21 metrics ahead of a highly anticipated direct listing this coming week. Following suit, cryptocurrency exchange Kraken, could go public as well. We are also looking forward to the public markets debut by Topps, Grab, and Didi.

The holiday shortened past week saw muted capital markets activity in public equity markets in Canada and the USA, on the heels of a turbulent few weeks. In Canada, Sophic Client, AnalytixInsight (ALY-TSXV, ATIXF-OTCQB) announced a transformative regulatory approval as an online financial broker by the Italian financial markets regulator. As a result, the platform will allow users to trade stocks, options, and derivatives in Italy and later in other European countries. Quisitive (QUIS-TSXV) announced a major acquisition in the financial services vertical. In the USA, we’re looking forward to Coinbase’s direct listing in mid-April. The Invesco Solar ETF (TAN-NYSE), had a strong finish to the week following Biden infrastructure plan, as did Sophic client, UGE International (UGE-TSXV, UGEIF-OTC).