Thursday, June 13, 2024


Dhaka Tribune

Novo Integrated Sciences (NVOS) up 80% - Belly laugh, this is nonsense, ludicrous

It’s very rare for these sorts of alternative investment nonsenses to get as far as a stock market. 

Update : 29 Sep 2023, 05:17 PM

Novo Integrated Sciences (NASDAQ: NVOS) shares are up 80% of the biggest load of nonsense you’re likely to see on a stock market. This is entirely ludicrous. They’ve been taken in - well, at least we hope they’ve been taken in - by what looks very like an advanced fee fraud. Believe us, there is no such thing as a “Master Collateral Transfer Agreement”. Well, not outside the fevered imaginations of the more fervid conmen there isn’t.

This is simply outrageous: “Novo Integrated Sciences, Inc. (NASDAQ: NVOS) (the “Company” or “Novo”), today announced Novo and Blacksheep Trust have signed a One Billion Dollar Master Collateral Transfer Agreement (the “Master Agreement”) for the purpose and general use of monetization by Novo for a period of up to 15 years. The One Billion Dollar collateral transfer is expected to occur in one or more transactions during the current fiscal quarter following the validation and authentication by third-party audit procedures.

Robert Mattacchione, Novo’s CEO and Chairman of the Board, stated, “Novo has secured its core business capital needs with previously disclosed financings and financing opportunities. We believe the pending monetization of this One Billion Dollar collateral transfer transaction represents the solution to the Company’s hypergrowth expectations, and this transaction will allow the Company to proceed with its international growth objectives.”

The correct reaction to this is a belly laugh. Then a look at what the borrow cost is to go short the stock. 

Novo Integrated Sciences stock price from Google Finance

It does amuse us that respected news outlets are reporting this straight. Maybe it’s the early morning and no one’s thinking yet Think on it for a moment, no one does “transfer” $1 billion in collateral to a $40 million company. You want to invest in the company with that sort of sum then you buy the company. This is simply total nonsense. Our best guess - a pretty strong insistence in fact - is that this is an attempt to gain an advance fee.

We’ve talked before of Novo Integrated Sciences: “Novo Integrated Sciences (NASDAQ: NVOS) stock is up some 140% over the past couple of days. It’s rare that we’re entirely categoric around here, we know that it’s all too possible to fall into error. However, this is one of those opportunities that we’re not willing to touch with your bargepole let alone our own.

A barge is a river or canal boat, a bargepole is the long, 8 to 10 foot, pole that is used to propel it along by pushing on the bottom of the river or canal. In English English “I wouldn’t touch that with a bargepole” means that I wouldn’t even touch that with a very long stick. And of course this effect is doubled by insisting that I’d not touch it with your bargepole let alone my own. The “Matey” is just there for effect. What the headline as a whole means is that we’d not go anywhere near this stock.”

Back there we list the deals the company was considering. None of them ring right. Leading to our conclusion:

“One of us here has given expert evidence in a series of financial fraud trials. Also seen off a number of advance fee frauds over the decades. We would emphasise again that we are not insisting, we are not being categoric here. We acknowledge that it is always possible for us to be in error. But it is our very strongly held opinion that these are “deals” intended to drain money from the corporate treasury at Novo Integrated Sciences. That management is entertaining them - on the basis that they believe them to be realistic, of course - is a great big flashing red warning light.

We’d not touch this with your bargepole let alone our own.”

We’d be amazed if this survives the adults getting into work let alone any longer than that. Novo has announced they’re being scammed more than anything else. Which isn’t a good reason for a stock price rise when we think about it.

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