NetworkNewsWire Newsroom: July 2020

Friday, July 31, 2020

The Movie Studio Inc. (MVES) Benefits as Film Libraries See Valuations Skyrocket

Film libraries have become increasingly valuable in recent years with hundreds of millions of dollars being paid for film assets over last 12 months
The Movie Studio has sought to augment its film library through purchase of various motion picture films in last 5 years
Increasingly, VOD platforms and cable tv channels are competing to license unique film, tv show assets in bid to increase subscriber base
With movie assets commanding higher licensing fees and sale prices, MVES is poised to benefit from revaluation of its film library assets

In late October 2019, Lakeshore Entertainment, a 25-year old independent film studio, agreed to the sale of its 300-title film and TV library and international sales operations to Vine Alternative Investments for a gross monetary consideration speculated to be around the $200 million mark (http://nnw.fm/5pahp). Similarly, The Movie Studio (OTC: MVES), an independent motion picture production company based in Florida, has long based its business model on the purchase of legacy film libraries which have been upgraded to 4K resolution along with the re-monetization of new content on popular video on demand (“VOD”) streaming platforms. With film content and distribution rights becoming increasingly valuable as streaming platforms compete to attract viewers through the provision of unique licensed films and TV shows, The Movie Studio stands to benefit from the revaluation of its media library.

The Movie Studio has been an avid purchaser of film libraries over the past decade. In 2015, the company purchased a 60% stake in the Seven Arts film library, which included films by top Hollywood stars such as John Goodman, Ving Rhames, Burt Reynolds and Tim Robbins (http://nnw.fm/hYQQJ). The purchase was followed up by a subsequent acquisition in 2016, with The Movie Studio arriving at an agreement to acquire a 12 major motion picture library from the Arrowhead Target Fund, including films such as “Johnny Mnemonic” starring Keanu Reeves, “Never Talk to Strangers” featuring Antonio Banderas, and Clive Owens’ “I’ll Sleep when I’m Dead” (http://nnw.fm/gIY8x).

The proliferation of streaming outlets and television channels seeking new content has led to a virtual ‘arms race’ in terms of licensing media content. “[Film] libraries run forever,” says Scott Kennedy, president of worldwide marketing and distribution at Forrest Films (http://nnw.fm/1gT9N). “As the studios launch their own streaming services and pull their films off Netflix and Amazon, those guys are going to be even more hungry for content.”

The rapid proliferation of new VOD platforms has meant that sellers can now license their film assets on multiple occasions, with major Hollywood film studios now attributing a significant portion of their revenues through licensing deals. “In the U.S. now, we are selling our titles by the month,” said Chris Ottinger, president of worldwide television distribution and acquisitions at MGM. Ottinger added that the studio had witnessed double-digit growth in licensing sales for its back catalog across streaming VOD, premium and cable over the last 12 months. “It’s not uncommon to do 10 to 15 different licensing deals for a single title in a single territory.”

The Movie Studio has followed this trend, with the film studio’s latest releases available on platforms such as Showtime, Comcast, Amazon Prime and Tubi TV in addition to MVES’s foreign licensing deals, which has seen it already exclusively license several of its films for the territory of Australia over the past quarter (http://nnw.fm/l5EuI).

With film libraries becoming increasingly valuable in today’s content driven market – most recently shown when ViacomCBS purchased a 49% stake in Miramax’s 700 film library for a record $375 million last December (http://nnw.fm/Kvt7Y), the Movie Studio’s commercial strategy has the company well-positioned to benefit as VOD platforms and cable television compete for their viewers’ attention.

For more information, visit the company’s website at www.TheMovieStudio.com.

NOTE TO INVESTORS: The latest news and updates relating to MVES are available in the company’s newsroom at http://nnw.fm/MVES

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Pure Extract Technologies Inc. Exec Team Offers Decades of Impressive Experience; Represents Power, Intellect Behind Organization

The private, plant-based extraction company boasts roster of leaders worth noting
CEO served decade-plus in corporate leadership roles across the natural products, agriculture, cannabis sectors
Team of qualified experts plus cutting-edge extraction technology means Pure Extracts is set for long-term strategic distribution, product innovation

If leaders are, as a Forbes article notes, “the power and intellect behind their organizations,” Pure Extract Technologies (“Pure Extracts”) is clearly a presence to be reckoned with. Led by an impressive team of individuals with decades of experience in their areas of expertise, the private, plant-based extraction company has a roster of leaders worth noting.

“Successful leaders,” the “Forbes” article states, “are the visionaries charged with steering their brand around pitfalls. They must know when to seize opportunities and how to rally employees to work hard toward their company’s goals” (http://nnw.fm/Ek8Lu). The executive team at Pure Extract Technologies appears to do that — and much more.

At the helm of the Pure Extracts organization is CEO Ben Nikolaevsky. Nikolaevsky has garnered more than a decade of experience in corporate leadership roles across the natural products, agriculture and cannabis sectors. Under his leadership as president and CEO, Natura Naturals Inc., a private Canadian cannabis-licensed producer, was acquired by Tilray Inc. Before his stint at Natura, Nikolaevsky served as president and CEO of Blue Goose Capital Corp. In addition, Nikolaevsky has shouldered responsibilities as market vice president of national accounts at Canadian Imperial Bank of Commerce (“CIBC”) and as chief credit officer and capital markets manager at IBM Global Financing Canada.

As Pure Extracts founder and COO, Doug Benville has more than a decade of experience in the cannabis space, including as founder of Pure Pulls, one of the most-recognized extract brands in Canada. Highly proficient in cannabis cultivation, system operations and oil extraction, Benville has been with Pure Extracts since the company’s beginning.

Pure Extract’s vice president of business development Alexander Logie is a serial entrepreneur with 30-plus years of experience in the financial services sector. He co-founded Crane Capital and Mercury Capital, both of which were successfully acquired by asset-management firms. Most recently, Logie served as interim CFO, acting COO and senior vice president of business development at Natura Naturals Inc., a privately held licensed producer of cannabis, which was acquired by Tilray Inc. in 2019.

Andy Gauvin, vice president of sales for Pure Extracts, is an accomplished, bilingual, senior sales leader who has worked for more than three decades in the cannabis and beverage alcohol space. Most recently, Gauvin was vice president of sales at Natura Naturals, a start-up licensed cannabis producer. In that position, he built invaluable relationships with key provincial cannabis customers, created sales strategies and played an important role in product development. Previously, Gauvin served as vice president of sales, Canada, for Moosehead Breweries, where he developed a national sales strategy that leveraged unique aspects from each province and built a highly successful sales culture focused on results.

Shivani Bhatia heads up quality assurance for Pure Extracts. Prior to joining Pure Extracts, Bhatia served as a senior official at Whistler Medical Marijuana Corp., overseeing quality assurance work for two facilities. A Health Canada Security Cleared QA professional, Shivani established and enforced GPP, GMP and Quality Assurance standards. Shivani holds bachelor’s and master’s degrees in biotechnology and a post-graduate diploma in pharmaceutical research.

Pure Extracts, on the other hand, is ideally positioned to enter the space as an experienced producer. With a team of qualified experts and cutting-edge extraction technology, the company is set up for long-term strategic distribution and product innovation. Located near Whistler, British Columbia, the Company’s facility is built for EU-GMP certification, which allows for international sales and ensures the production of high-quality, high-purity formulations on a commercial scale.

For more information, visit the company’s website at www.PureExtractsCorp.com.

NOTE TO INVESTORS: The latest news and updates relating to Pure Extracts are available in the company’s newsroom at http://nnw.fm/Pure

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Thursday, July 30, 2020

DarioHealth Corp. (NASDAQ: DRIO) Platform Meets Patients’, Physicians’ Remote Care Needs Amid Pandemic

DarioHealth Corp. is a digital therapeutics innovator that supplies remote monitoring technology to caregivers and their patients
The company’s Remote Patient Monitoring (“RPM”) technology reports patient data to care providers in the clinical setting and if necessary provides occasional “nudges” to patients to maintain their level of care
DarioHealth began working in North America with two agreements announced in June, and in July began offering its solutions to the United Kingdom and Ireland thanks to a third agreement
Such remote services have been increasingly in demand amid the ongoing global pandemic, regarded as a solution for minimizing the risk of exposure to viral infections and improving hospitals’ capacity to accept the most critical care needs

When the novel coronavirus began to create a surge of infections during the spring in the Northeastern states, some hospitals such as Mount Sinai in New York and Atrius Health in Boston turned to their “hospital at home” (“HaH”) programs to limit the risk of patient exposure to the virus and to keep hospital beds available for the most critically ill amid the growing health crisis (http://nnw.fm/VThbP).

“We began thinking about how we could use hospital-at-home to meet the needs of our hospital system in our community. … Rather than focusing on specific diagnoses, our focus has been on specific services that we’re able to render at home — and whether those are the services that are keeping the patient in the hospital,” Mount Sinai’s HaH Director Al Siu stated in a Home Health Care News report (http://nnw.fm/xNcI8).

DarioHealth (NASDAQ: DRIO) is an innovator in the digital therapeutics field that supplies hospitals with the technology they need to ensure that their patients are receiving the necessary level of care even if they are being “roomed” at home under a remote monitoring regimen.

Healthcare providers have become familiar with an ever-evolving array of computerized equipment necessary to capture data from patients in a clinical or hospital setting, but HaH technology-based services are still developing as a field of care. Personal health digital therapeutics solutions that generate data remotely and make it available to care providers in the clinical setting offer the potential of providing early warnings of a medical concern that may arise between doctor visits, as well as potentially eliminating the need for costly hospital readmissions by allowing a condition to be dealt with before it reaches a critical phase.

DarioHealth’s Remote Patient Monitoring (“RPM”) digital therapeutics platform provides physicians with essential information and also delivers occasional “nudges” to patients when its automated programming recognizes a need (http://nnw.fm/FW3Vc).

Devices that monitor chronic health conditions such as diabetes can function over multiple years, potentially reducing the frequency of medical visits and the demands on care providers’ time. Since such devices generally function automatically without requiring the patient to press any buttons or mess with device-pairing and data entry needs, the patient can generally function normally with a minimum of cumbersome behavior.

DarioHealth’s RPM platform combines the functions of the company’s existing resource with app technology for the service’s users and with the DarioEngage coaching platform that helps physicians and large provider groups ensure they are billing according to approved remote patient monitoring codes.

In June, the company announced it had signed its first two remote patient monitoring agreements in North America (http://nnw.fm/YfxpL), and on July 20 DarioHealth announced it is adding international service thanks to a strategic partnership with Williams Medical that makes the RPM platform available to healthcare professionals across the United Kingdom and Ireland (http://nnw.fm/nWKt5).

For more information, visit the company’s website at www.DarioHealth.com.

NOTE TO INVESTORS: The latest news and updates relating to DRIO are available in the company’s newsroom at http://nnw.fm/DRIO

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The Alkaline Water Company Inc. (CSE: WTER) (NASDAQ: WTER) is “One to Watch”

The Alkaline Water Company Inc. is a leading producer of premium bottled alkaline and flavored water sold under the brand names Alkaline88(R) and A88 Infused(TM), respectively.
The company has become known for its innovative, state-of-the-art proprietary electrolysis beverage process that enhances its products with trace Himalayan minerals and electrolytes and delivers perfect 8.8 pH balanced alkaline drinking water.
The company’s two leading products – Alkaline88 and A88 Infused – are available at more than 70,000 major retail locations across the United States.
The Alkaline Water Company reported record sales in March and April 2020, surpassing March and April 2019 numbers by 114% and 171% respectively.
The company recently launched a new product line: A88CBD. This line of CBD-infused products includes tinctures, capsules, gummies, salves, balms, hand and foot lotions, essential oils, bath bombs and bath salts, as well as CBD-infused drinks, water and beverage shots.
The Alkaline Water Company has implemented an aggressive growth strategy with numerous organic initiatives focused on national, multichannel mass-market expansion.
Annual bottled water sales have now surpassed soda consumption. Some research indicates that the global bottled water market will reach an estimated $280 billion this year, while the CBD market is forecast to top $20 billion by 2024.

Founded in 2012, The Alkaline Water Company Inc. (NASDAQ: WTER) (CSE: WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88(R), is a leading premier alkaline water brand available in bulk and single-serve sizes, along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88(R) delivers perfect 8.8 pH balanced alkaline drinking water with trace minerals and electrolytes and boasts the company’s trademarked label ‘Clean Beverage’. Quickly being recognized as a growing lifestyle brand, Alkaline88(R) launched A88 Infused(TM) in 2019 to meet consumer demand for flavor-infused products. A88 Infused(TM) flavored water is available in six unique all-natural flavors, with new flavors coming soon. Additionally, in 2020, the company launched the A88CBD(TM) brand, featuring a broad line of topical and ingestible products. These products are made with lab-tested full and broad-spectrum hemp and include salves, balms, lotions, essential oils, bath-salts, CBD infused drinks, tinctures, capsules, gummies and powder packs.

Innovation and Expansion

Founded in 2012, The Alkaline Water Company began with a mission to create the best-tasting water in the world. At the time, there were two emerging trends in health-conscious consumers: a growing interest in the alkaline diet and perceived health benefits of pink Himalayan rock salt. By combining these two concepts in an alkaline water and trademarking the name Alkaline88, The Alkaline Water Company began offering what it calls the smoothest tasting Clean Beverage(TM) in the U.S. enhanced-water category.

Now a top bulk alkaline-water brand (the company reported record sales in March and April 2020, surpassing March and April 2019 numbers by 114% and 171%, respectively), The Alkaline Water Company is committed to growing its national footprint through innovation and expansion. That mindset was evident as the company introduced eco-friendly aluminum bottles and branched out into flavor-infused waters; the company currently offers six different flavors: peach/mango, lemon/lime, raspberry, watermelon, blood orange and lemon.

The company’s commitment to innovation may be most evident in its newest product line: A88CBD. This line of CBD-infused products includes tinctures, capsules, gummies, salves, balms, hand and foot lotions, essential oils, bath bombs and bath salts, as well as CBD-infused drinks, water and beverage shots. These quality, CBD-infused offerings are all made with lab-tested, full-spectrum hemp and are conveniently packaged and perfect for on-the-go or at home use.

In addition, The Alkaline Water Company has implemented an aggressive growth strategy, with numerous organic initiatives focused on national multichannel, mass-market expansion through a direct-to-warehouse model and co-packing facilities that are strategically located within 600 miles of 95% of the U.S. population. In addition to this strong brick-and-mortar approach, the company recently launched a B2C e-commerce platform (www.A88CBD.com) and aggressive digital-marketing campaigns.

Clear Advantages in a Growing Market

With consistent growth year over year, the company reported $32.2 million in revenue in fiscal 2019 and has emerged as a growth leader in the functional (value-added) waters space, which is the fastest-growing segment of the bottled water industry.

The Alkaline Water Company’s efforts are focused on its clear competitive advantages, including its strong marketing (the inclusion of alkaline in product names); existing grocery channels, which feature excellent relationships and a nationwide broker network; distinctive branding; proprietary technology, which produces great-tasting, high-quality water, infused drinks and other products; and price, with a broad range of products in all formats, from bulk bottles to single serve.

As the company focuses on strategic growth, it is eyeing the impressive potential of a market that is on a strong upswing. Annual bottled water sales have now surpassed soda consumption, with soda sales in the United States having declined by $1.2 billion over the past five years. Some research indicates that the global bottled water market will reach an estimated $280 billion this year, while the CBD market is forecast to top $20 billion by 2024.

With its products available in all major trade channels, including grocery stores, drug stores, c-stores and big-box retailers, The Alkaline Water Company is also looking to expand into new spaces, such as health and beauty, hospitality and specialty retailer locations.

Seasoned Management Team

The Alkaline Water Company is led by an experienced team focused on the company’s core strategy of building a national retail footprint and extending its lifestyle brands into other consumer packaged goods categories.

Richard A. Wright, President, CEO and Co-Founder of The Alkaline Water Company Inc., oversees all aspects of the business, successfully guiding the company through strategic opportunities and delivering greater than 50% growth since the company’s inception. A passionate and versatile leader with a strong track record of innovation, collaboration and achieving goal-driven results, Wright is a serial entrepreneur with more than 41 years of experience. Early in his career, he spent years at one of the ‘Big Four’ accounting firms, working his way up to Regional Director of Tax and Financial Planning. As a CPA, entrepreneur and former CFO, Wright brings extensive knowledge of finance, operations, sales and marketing to the team, and he has participated in hundreds of M&A transactions throughout his career.

David Guarino, CFO, Secretary, Treasurer and Director, earned a Bachelor of Science in accounting and a Master of Accountancy from the University of Denver. From 2008 to 2013, Guarino was President and a Director of Kahala Corp., a worldwide franchisor of multiple quick-service restaurant brands with locations in 49 states and more than 25 countries. From 2014 to 2015, Guarino was President of HTI International Holdings Inc., a technology company focused on forward osmosis water filtration technology.

Frank Chessman, National Sales Manager, is a graduate of the University of Southern California’s Marshall School of Business. He spent 25 years with Ralph’s Grocery, Kroger’s largest division, working at many levels before ultimately becoming Vice President of Advertising & Marketing. He then served 14 years as Executive Vice President at Simon Marketing. Chessman has more than a decade of experience in the beverage manufacturing industry.

Brian Sudano, Director, is managing partner of Beverage Marketing Corporation and BMC Strategic Associates. Sudano’s experience covers nearly the entire beverage industry, from energy drinks to wine, with special expertise in beverage alcohol by virtue of varied industry experience across a broad range of projects. Sudano manages several major clients, providing ongoing strategic and market advice and leading projects in strategic planning, market entry analysis and planning, sales/distribution, business modeling, brand repositioning and international opportunity assessment. He has spoken at many beverage industry events and is a contributing editor at Beverage World magazine.

Aaron Keay, Chairman, has been a successful investor, entrepreneur and financier to multiple small cap and startup companies over the last decade. During his time with these companies, he served in advisor, board-member and senior-management roles. His experience ranges across multiple sectors in mining, biotech, health and wellness, tech and cannabis, where he has invested and raised more than $500 million.

For more information, visit the company’s website at www.TheAlkalineWaterCo.com.

NOTE TO INVESTORS: The latest news and updates relating to WTER are available in the company’s newsroom at http://nnw.fm/WTER

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Predictive Oncology Inc. (NASDAQ: POAI) Subsidiary Announces First Commercial Sale of Unique Ovarian-Cancer-Cell Media

POAI’s TumorGenesis inks deal with top-rated medical university in New England
Predictive’s proprietary media allows researchers around the world to isolate, culture ovarian cancer cell types, leading to new targets for treatment
The TumorGenesis media retain more than 95% of the DNA and RNA as well as crucial proteomic signatures

Predictive Oncology (NASDAQ: POAI) has sold its first-ever commercial order of its novel ovarian cancer cell culture media for cancer cells collected from patient-derived samples (“PDx”) (http://nnw.fm/zLCh3). The sale, made through POAI’s subsidiary TumorGenesis working with distributor US Biological Corporation, marks a milestone for the knowledge-driven company, which is focused on applying artificial intelligence to personalized medicine and drug discovery.

“Capturing and culturing and then being able to study ovarian cancer cell types has always been limited by the ability to grow reproducible cultures that reflect what is in the patient,” said Richard Gabriel of TumorGenesis. “We now have isolated and grown 25 ovarian cancer cell types, 11 of that library, represents nearly 95% of all ovarian cancers, many of which have never been cultured prior to this time. This new media will allow researchers around the world to isolate and then culture ovarian cancer cell types and culture them reproducibly to find new targets for treatment, diagnostics or other studies on the close interrelationship of ovarian cancer tumor populations and how they are able to fool a patient’s immune system.”

The sale was made to a top-rated medical university based in New England. The institution will use the media for research in isolating and growing ovarian cancer cells from ascites fluid, which is typically found in the abdomen of women with advanced ovarian cancer. One of the challenges of this type of research is the difficulty of growing these unique cell types and retaining the signatures of the patient-derived samples.

The media made available by TumorGenesis and its partner, GLG Pharma, retain more than 95% of the DNA and RNA as well as crucial proteomic signatures, thus solving the challenge of using standard media mixes, which are often prone to failure, and cell lines that are not representative of the patient’s ovarian cancer. The announcement of the sale noted that “a recent publication highlighted the waste in research using unvalidated media and reagents that showed an increase to $28 billion in 2020* (http://nnw.fm/sqQuP). Experiments are the foundation of preclinical research and development; however, irreproducibility rates in preclinical experiments exceed 50%, costing the industry nearly $48 billion annually.”

POAI is bringing precision medicine, or tailored medical treatment using the individual characteristics of each patient, to the treatment of cancer. Through the company’s Helomics division, the company leverages its unique, clinically validated patient derived (“PDx”) smart tumor profiling platform to provide oncologists with a road map to help individualize therapy.

In addition, the company is utilizing artificial intelligence and its proprietary database of over 150,000 cancer cases tumors to build AI-driven models of tumor drug response to improve outcomes for the patients of today and tomorrow.

For more information, visit the company’s website at www.Predictive-Oncology.com.

NOTE TO INVESTORS: The latest news and updates relating to POAI are available in the company’s newsroom at http://nnw.fm/POAI

* 2015-Freedman et al-The Economics of Reproducibility in Preclinical Research; PLOS Biology DOI:10.1371/journal.pbio.1002165 June 9, 2015

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Net Element Inc. (NASDAQ: NETE) Proposed Merger with Mullen Technologies Expected to Accelerate Development of Electric Vehicle Manufacturing Facility

Electric vehicles expected to account for over half of global passenger car sales by 2040
Growth in electric vehicles expected to drive oil demand down by 13.7 million barrels per day
Proposed manufacturing facility comprises 1.3 million square feet, creation of 55 jobs at startup with up to 863 jobs created by 2026

Net Element (NASDAQ: NETE), a global technology group that operates electronic payment services, is currently in the planning stages to open a new electric vehicle (“EV”) manufacturing facility in conjunction with privately-owned Mullen Technologies (“Mullen”) via a proposed merger. With demand for electric vehicles growing globally, oil demand is expected to plummet by 13.7 million barrels a day, according to recent research by Bloomberg (http://nnw.fm/5Xu8q), positioning the new company favorably as a leader in the electric vehicle industry both in the U.S. and abroad.

According to the report, electric vehicles are expected to account for over half of global passenger car sales by 2040, in addition to completely dominating the bus market. Besides the growing passenger market, electric vehicles are also projected to make headway into other areas, comprising over half of light commercial vehicle sales, 31% of the medium commercial market, and almost a fifth of the heavy truck market.

The electric vehicle industry has made substantial headway in recent years, catalyzed by the falling prices of EV batteries in addition to policy support through fuel economy regulations and China’s new energy vehicle mandate. Showcasing its market dominance, China is expected to account for almost half (48%) of all passenger car sales in 2025.

Pending definitive agreement, fairness valuation, and stockholder and board approval, the reverse merger between NETE and Mullen will allow Mullen to take control of NETE and bypass the lengthy process of going public. Anticipated to occur in the third quarter, the merger is expected to give Mullen stakeholders a majority of the stock in the newly formed public company.

“We believe the timing of this merger is ideal for Mullen Technologies,” said Mullen CEO David Michery (http://nnw.fm/pFC4q). “It comes on the preparation of our launch of the Dragonfly K50, which will be available in (the second quarter) of 2021 and through our retail network in California and Arizona.”

Pending requisite approvals, the new company has plans to open an electric sports car manufacturing facility in West Plains, Missouri. The proposed 1.3 million square feet of assembly and manufacturing space is expected to create 55 jobs at startup with up to 863 jobs created by 2026. An additional 3,000 jobs are projected to be created for the research and development of lithium-ion batteries through Mullen’s subsidiary company, Mullen Energy.

Besides Mullen Energy, the company has several other subsidiaries that include a series of pre-owned auto dealerships in California and Arizona that operate under the Mullen Auto Sales banner, a digital auto marketplace called CarHub, and a financing company called Mullen Finance Corp. that offers vehicle leases and loans. Unrelated to the automotive business is another Mullen subsidiary called Smart 8 Energy that sources ventilators, COVID-19 antibody test kits, virus test kits and personal protective equipment.

Ranked on Deloitte’s Technology Fast 500(TM) list of North America’s 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in both 2017 and 2018, NETE credits its progression to organic growth in its North America Transactions Segment. Crediting most of its success to its Unified Payments brand, NETE focuses on value-added payment acceptance solutions for small to medium enterprises in the United States.

For more information, visit the company’s website at www.NetElement.com.

NOTE TO INVESTORS: The latest news and updates relating to NETE are available in the company’s newsroom at http://nnw.fm/NETE

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