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
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.
Braveheart shares fell 16.71% to trade at 32.90p, falling from Wednesday’s closing price of 39.50p.
Braveheart Investment shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Omega shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .