Hi David,
Two new “speccies” to the MM report this year:
KTEK Aerosystems (KTK) – A $30mn microcap defence and aerospace equipment manufacturing company that listed in May via a reverse takeover (RTO) / backdoor listing structure rather than a traditional IPO.
- the stock listed at 20c and in just a few months has traded between 20c and 62c such is its size & liquidity.
All too hard from a fundamental perspective so we’d revert to technicals; buy a dip under 20c, initially targeting a 25-30% bounce BUT this is currently a very speculative stock.
Adisyn (AI1) – A $200mn technology company focused on developing semiconductor technologies for AI and data-centre applications, primarily through its subsidiary 2D Generation and its work on advanced graphene-based materials and interconnects. The company remains early-stage and pre-commercial at meaningful scale, making the stock speculative in nature as we’ve seen recently with AL1 spiking up more than 400% before quickly halving.
Three announcements in April drove AI1 higher:
- A $14m institutional placement: Adisyn raised $14m at $0.0675/share, cornerstoned by Regal Funds Management and Meitav. While the ~207m new shares are materially dilutive, the funding strengthens the balance sheet and provides capital to accelerate its graphene commercialisation strategy.
- Semiconductor breakthrough: Through its 2D Generation subsidiary, Adisyn demonstrated graphene production at semiconductor-compatible temperatures using an industrial Atomic Layer Deposition (ALD) system. The technology is targeting copper interconnects — an increasingly important bottleneck as semiconductor performance and AI computing requirements scale.
- Defence-tech expansion: Adisyn also secured an exclusive global licence from Tel Aviv University for graphene-based radar-absorption technology, with laboratory testing showing ~20dB absorption, equivalent to a ~100x reduction in reflected radar power. The technology is targeting UAV and stealth applications, adding a second potential commercial pathway alongside semiconductors.
AI1 remains a highly speculative, pre-commercial technology story following its pivot away from managed IT services, with valuation dependent on successfully converting its graphene IP into commercial products, however, back in the 15-20c region we like the risk/reward for the brave, and thinks Regal’s backing is a pretty positive sign.
