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Braveheart (BRH) Shares Plummeted 21.4% on Operations Update

Simon Mugo trader
Updated 10 Jan 2023

The Braveheart Investment Group plc (LON: BRH) share price plummeted 21.4% after issuing an update regarding its two portfolio businesses, Paraytec Limited, which owns 100% of the outstanding shares and Phasefocus Holdings, in which it has a 44.69% stake.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Investors reacted negatively to the news that Paraytec Limited had experienced further delays in completing the phase 1 clinical trial at the Sheffield Teaching Hospitals NHS Foundation Trust due to the lack of NHS staff to continue collecting swabs for use in the trial.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

The NHS trial is still enrolling participants, and Paraytec expects to have the initial data ready by February 2023, with the final data due in April 2023. The company added that it would consider whether to proceed with phase 2 of the study based on the state of the COVID-19 testing market. 

Investors were disappointed by the announcement, which indicated that Paraytec might discontinue the trial if the state of the COVID-19 testing market does not support the need for completing the clinical trials. 

Braveheart also issued an update about Phasefocus, one of its portfolio companies developing a series of patented computational imaging and analysis technologies with a wide range of applications, including engineering metrology, live cell imaging and electron microscopy.

Phasefocus has a novel high-fidelity quantitative imaging and microscopy method known by scientists as “ptychography”. The company has been building up its inventory to reduce the lead times on customer orders. 

However, Braveheart noted that Phasefocus’s 2022 sales were lower than expected following the termination of its lead distributorship contract with Cytena. However, the company has now built out its sales team and has a promising lineup of sales leads. 

Braveheart expressed its optimism about Phasefocus’s prospects and revealed that it is ready to participate in the company’s subsequent funding round to help it progress its direct selling efforts and generate more sales. 

BRH shares had fallen below their October lows, and many hope they will rally back above this crucial level to avoid booking further losses. 

*This is not investment advice. 

Braveheart (BRH) share price chart.

The Braveheart (BRH) share price plummeted 21.37% to trade at 7.47p, from Monday’s closing price of 9.50p.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading