Despite not having posted any updates to the ASX since 12 January 2022, ASF Group (ASX: AFA) has defied the another day of share market pain, with the investment/trading house up 11.32% two hours out from the close.
While too small to be on the radar of institutional investors, the microcap stock’s core business is around identifying, incubating, and realising synergy opportunities between China, Australia, the UK, and Europe, within oil & gas, resources, property, infrastructure, travel, and financial services sectors.
Mid-January, the company announce that 3D Bio-Tissues Ltd (“3DBT”) had entered into a conditional share sale and purchase agreement with BSF Enterprise PLC (LSE: BSFA), a publicly listed independent company incorporated in the UK.
Under the terms of the agreement, 3DBT shareholders will sell the entire issued share capital of 3DBT for GBP2.5m which will be satisfied by the allotment and issue to them of an aggregate of 33,900,003 ordinary shares in BSFA.
49% owned by a subsidiary of the company, BSF Angel Funding Limited, 3DBT - a spin off from Newcastle University, UK in 2019 - has developed a proprietary platform technology termed “tissue templating” that facilitates the production of a variety of animal tissue types for multiple uses, commonly referred to as “tissue engineering”.
Included within the 3DBT’s intellectual property are:
Serum-free media: 3DBT’s City-mix supplements, which are a serum-free media for culturing muscle and fat cells (by way of an animal-free process) that can be used for lab -grown meat and leather production.
Skin Care Products: Lipopeptide Etsyl a product that actively increases collagen production in human skin cells. It can be used as an active ingredient in cosmetic skin cream and other topical dermatological products.
Investors remotely interested in exploring this stock will struggle to find sufficient coverage and company-generated disclosure is not great.
Little is known about the sentiment behind trading volumes today, but it appears to have propelled the price forward in absence of any substantive updates to the market.
Investors should note, the Top 20 Shareholders of ASF Group hold 88.46% of shares on issue.
Consensus does not cover this stock.
Based on Morningstar’s 8 September 2021 fair value of $0.14, the stock looks to be undervalued.
ASF Group share price trading over three months
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