PNG.V - Tide Over?


Kraken Robotics Inc. (PNG.V) is a marine technology company, We initiated light coverage" in early March.

Since then, a re-brand from Kraken Sonars to Kraken Robotics (Sept 20) among other things.

Grant & Awards

PNG.V received more than $2M in grants from Federal and Provincial Governments and won awards of distinctions within the industry.

Mar. 21 - Grant of up to $1.4M from the NRC Industrial Research Assistance Program (NRC-IRAP)

May 15 - Receives non-refundable contribution of $745K from the Research & Development Corporation (RDC) of Newfoundland and Labrador

Aug. 9 - Named Marine Technology Top 100. Also listed as one of the top 17 technology disruptor for Robotics as a Service (RAAS) business model.

Sep. 12 -Wins Technology Award - for Kraken's SeaVision™ system available in Q4 2017.

Proof of Concept (POC)

Kraken has reported participating in a POC with Belgium and Netherlands Navy Trials. On June 6, AquaPix® sonar system were deployed on three unmanned maritime platforms for the purpose of a mine warfare exercise. On June 20, PNG.V reported that the AquaPix® Sonar successfully enabled real time mine detection during Belgium and Netherlands Navy Trials.

Investments

May 17, the company acquired a minority interest (19.9% equity interest and provided a $110K euro convertible loan) in ENITECH Subsea GmbH. ENITECH specializes in pressure tolerant products. Moreover, under the agreement, PNG.V can take up to 75% interest in the company.

Financing, Insiders Activities and Options

PNG.V completed a private placement at $0.18 with Warrants at $0.30 for $2.1M. on Apr. 11th. The placement was initiated and closed within two weeks. Moreover, company insiders took part in it (5%) which was reported on April 14. Kraken also recruited a new CFO (Greg Reid) which Karl Kenny (CEO) transferred 3M shares at. $0 18. In addition, options were granted (330K) to PNG.V's employee at $0.17 for a 3-year term on September 8th.

Earnings (Millions)

Kraken's revenues have been trending down in the last two quarter, while operational losses were on the rise.

Orders

However, PNG.V has steadily generating orders in the last six months. Of note, more than $5M in contract were awarded in September.

Mar. 29 - Supply AquaPix® MINSAS for Riptide's Compact Unmanned Underwater Vehicles.

Apr. 6 - Contract for Deep Sea 3D Laser Imaging System Design+Build with Alfred Wegener Institute

Jun. 5 - Awarded $400K AquaPix(R) Sonar Contract, Repeat customer - a leading European defence contractor - to supply and integrate its AquaPix® Miniature Interferometric Synthetic Aperture Sonar and Real-Time SAS Signal Processor on the customer's AUV. Delivery in Q3 2017.

Jul. 14 - A first "Robotics as a Service" contract from OEX Recovery Group Incorporated for the search of the legendary "Avro Arrow". The contract value was <$500K but featured both the ThunderFish(R) Robot and AquaPix(R) Sonar which led to the historic "Avro Arrow" discovery (Sep. 8).

Aug. 30 - Contract valued at over C$425K from ATLAS ELEKTRONIK Canada.

Sep. 7 - $3M contract with Ocean Infinity. PNG.V to supply and integrate its AquaPix® (Miniature Interferometric Synthetic Aperture Sonar and Real-Time SAS Signal Processor) solution on board of 8 HUGIN Autonomous Underwater Vehicles (AUV). Delivery starts Q4 2017.

Sep. 21 - Awarded $2M robotics contract - The contract entails the delivery of advanced sensors, underwater robotics and software. Delivery of the entire contract is expected in 2017. Additional contract terms and program details are confidential.

Synopsis

Since our last update, Kraken has been the recipient of numerous grants and industry accolades for their innovative products. They have continued edging forward by delivering on initiatives such as: a) the POC with the Belgian and Netherlands Navy, b) Avro Arrow exploration and discovery, as well as, c) making strategic investment (ENITECH). PNG.V has also successfully raised funds and minimize dilution by re-allocating shares creatively.

Since the company's revenues were sliding and operational loss were mounting, the recent secured contracts are a welcome addition to the bottom line. It also illustrates that Kraken is gaining momentum commercializing its technologies. However, the market seems to have shrugged off the company's recent accomplishments. At stake, is the possibility for additional financing which may explain the lack of movement in the stock price. Hence, PNG.V responded with a corporate update indicating that it has $800K in cash and unused credit along with $2M in government grants (Oct. 3).

Despite the response, the market is unphased. As such, the company's performance is not reflected in its current stock price. Moreover, the above chart suggests that PNG.V may be entering a soft sell cycle after trending for more than 3 months above S1 at $0.15. Hence, the resurging accumulation (CMF) may start to decline as some investors may be unhappy with the stock's ability to gain valuation. At this point, it's too early to tell.

Nonetheless, investors should be on the watch for Kraken, as it may raise its tentacles after a brief tide over.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


124 views

 Financial Research and Quantitative Trading for CSE* & TSX Venture Investors

If you enjoy this article consider making a one time or monthly contribution through PressPatron. We accept anonymous donations, no matter how small the amount. We are committed to be a paywall-free independent news source for investors. Thank you for your support.

And Readers like you.

PressPatronLogo_2.png

Powered By

Subscribe to our Free Weekly Updates

  • LinkedIn Social Icon
  • Twitter Social Icon

Copyright © 2017-2020 rally. All rights reserved.