21 Dec

Biotech at Good Entry Point for Investors, Analyst Says

December 21, 2022

Source: Andrew Partheniou  (12/20/22)

The company, focused on psychedelic-assisted psychotherapies to better treat addiction, is worth more than the CA$10 million the market is valuing it at, noted a Stifel report.

Awakn Life Sciences Corp. (AWKN:NEO; AWKNF:OTCQB) is currently undervalued and, thus, providing investors an attractive time to get into the stock, reported Stifel analyst Andrew Partheniou in a Dec. 16 research note.

With the Canadian biotech firm, the “market sees about a CA$10 million ($10M) valuation,” he wrote. “We see a Phase 3 company with a derisked molecule.”

Further, Awakn offers significant potential return for investors given the difference between its current share price (CA$0.40) and Stifel’s target price on it (CA$1.75). As such, Stifel rates the biotech Speculative Buy.

The reasons Stifel considers Awakn undervalued are its three recent key accomplishments, Partheniou wrote, “despite a materially challenging market backdrop.”

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Recent Progress Made

1) Awakn completed the second tranche of its capital raise, generating US$1.9M. The two tranches together and debt settlement yielded US$3M, enough to get it through the next three quarters, Partheniou wrote.

“This could provide the company with time to realize some potential catalyst to create shareholder value through derisking its outlook and pursue another equity financing,” he added.

2) Awakn partnered with the British government on the life sciences firm’s Phase 3 pivotal trial of ketamine for alcohol use disorder, and it will be conducted at seven National Health Service sites. Also, the company secured governmental funding in the form of a grant that will cover 66% of the trial cost, or CA$3.75M, dropping Awakn’s contribution at CA$1.25M, “a significantly advantageous position,” noted Partheniou.

3) Awakn further grew its ketamine clinic business, adding locations in Norway and the U.S. reported Partheniou. In Norway, the biotech signed a lease for a second location, expected to be up and running by late Q1/23. The company also entered a licensing agreement with Nushama in New York, making it the third such arrangement in North America. Nushama will pay Awakn an annual fee and a royalty of an unknown amount.

“Hence, we see good momentum overall,” wrote Partheniou.

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: Awakn Life Sciences Corp. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Awakn Life Sciences Corp., a company mentioned in this article.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures For Stifel GMP, Awakn Life Sciences Corp a.nd Cybin Inc.,  December 16, 2022

I, Andrew Partheniou, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Andrew Partheniou, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.

Stifel or an affiliate expects to receive or intends to seek compensation for investment banking services from Awakn Life Sciences Corp. in the next 3 months. The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel’s overall revenue, which includes investment banking revenue.

The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by us and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities referred to herein. Opinions expressed are as of the date of this publication and are subject to change without notice. These opinions do not constitute a personal recommendation and do not take into account the particular investment objectives, financial situation or needs of individual investors. Employees of Stifel, or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ from the opinions expressed within. Stifel or any of its affiliates may have positions in the securities mentioned and may make purchases or sales of such securities from time to time in the open market or otherwise and may sell to or buy from customers such securities on a principal basis; such transactions may be contrary to recommendations in this report. Past performance should not and cannot be viewed as an indicator of future performance.

Unless otherwise noted, the financial instruments mentioned in this report are priced as of market close on the previous trading day and presumed performance is calculated always over the next 12 months. As a multi-disciplined financial services firm, Stifel regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions.

Affiliate Disclosures: References to “Stifel” (collectively ”Stifel”) refer to SFC and other associated affiliated subsidiaries including (i) Stifel, Nicolaus & Company, Incorporated (“SNC”); (ii) Keefe, Bruyette & Woods, Incorporated (“KBWI’’), which are both U.S. broker-dealers registered with the United States Securities and Exchange Commission (“SEC”) and members of the Financial Industry National Regulatory Authority (“FINRA”), respectively; (iii) Stifel Nicolaus Canada, Incorporated. (“Stifel Canada”), which is authorised and regulated by Investment Industry Regulatory Organization of Canada (“IIROC”), and also trades under the names “Stifel GMP” and/or “Stifel FirstEnergy”; (iv) Stifel Nicolaus Europe Limited (“SNEL”), which is authorised and regulated by the Financial Conduct Authority (“FCA”) (FRN 190412) and is a member of the London Stock Exchange and also trades under the name Keefe, Bruyette & Woods Europe (“KBW Europe”); (v) Stifel Europe Bank AG (“SEBA”), which is regulated by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht; “BaFin”) and is a member of Deutsche Boerse and SIX Swiss Exchange and (vi) Stifel Schweiz AG (“STSA”), which is representative of SEBA in Switzerland and regulated by the Eidgenössische Finanzmarktaufsicht (“FINMA”). SNEL, SEBA and STSA are collectively referred to as Stifel Europe.


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