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Braveheart Investment (BRH) Shares Plunged 16.7% Despite Positive Operations Update

Updated: 30 Sep 2021

Braveheart Investment Group plc (LON: BRH) shares plunged 16.7% after publishing an operational update about its portfolio companies PhaseFocus Holdings and Paraytec.

The investment company reported that PhaseFocus had achieved its highest ever sales in H1 2021. The company is currently building a new manufacturing facility in Nottingham to meet the growing demand for Livecyte™ systems.

However, it was Braveheart’s update on the progress made by Paraytec in developing the platform technology CX 300 that its fast, sensitive COVID-19 test.

The COVID-19 test has been thoroughly tested and is ready to move from the current laboratory prototype to a fully functional one.

The CX300 technology underlying Paraytec’s test is expected to offer a key benefit over PCR tests, as it should avoid reporting a positive result for patients who are no longer infectious.

Braveheart has taken over the development of the final design and engineering process of the COVID-19 test and plans to accelerate its progress.

Paraytec has produced several prototype versions of the instrument and is currently developing the disposable cartridges for integration within the device, ready for clinical testing with Braveheart’s help.

Braveheart also noted that Paraytec's corporate finance partner is conducting discussions with over 50 companies as potential licensing partners or co-developing the technology or as potential company acquirers.

While most of Braveheart’s announcements were positive, investors reaction was adverse given the falling share price as investors sold their shares.

Today’s price action seems like a classic “buy the rumour, sell the news event”. Still, investors may have reacted negatively to news that the company was looking for a potential exit from PhaseFocus at a significant profit and Paraytec.

However, Braveheart shares are likely to rally higher once it achieves an exit from either company, given the significant profits it is expected to book in such an event.

*This is not investment advice.

Braveheart share price.

IG chart of Braveheart share price 30-09-2021

Braveheart shares fell 16.71% to trade at 32.90p, falling from Wednesday’s closing price of 39.50p.

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