Why the Tali Digital (ASX: TD1) share price has rocketed 40% today

A closer look at what could be pushing the TALI Digital Ltd (ASX: TD1) share price up by a whopping 40% today.

The Tali Digital Ltd (ASX: TD1) share price is up by 40% at the time of writing, despite no market sensitive announcements. The Tali share price has been trading sideways since April, but today represents the highest traded volumes since then.

The company was the subject of an ASX price query earlier today over its substantial share price gains and trade volumes, and confirmed it was not aware of any unreleased information that could be driving the movement. However, Tali pointed to its recent annual general meeting (AGM) held on Tuesday 24 November 2020 and the release of its AGM presentation as generating significant interest.

In October, the company also provided the market with an update about its roadmap to commercialisation and key target markets. 

rocketing asx share price represented by man riding golden dollar sign speeding through clouds

Image source: Getty Images

About Tali Digital 

Tali is a tech company that focuses on the development of software solutions to address neurological conditions in early childhood through its TALi program. The TALi platform is a scientific and clinically validated program that addresses early childhood issue-inattention, a key feature in conditions including ADHD and ASD. 

TALi TRAIN is a ground-breaking game-based training program that has been proven, through scientifically validated clinical trials, to improve attention by strengthening underlying attentional processes. Critically, improvements were retained after treatment had stopped, suggesting that benefits are long term. 

The program incorporates four engaging and adaptive touchscreen exercises that train children's core attentional skills: selective attention, sustained attention and attentional control. Using a special algorithm, each exercise adapts in difficulty in real time to the gameplay of the child. 

The product is the first of its kind to apply gaming technology to an intervention for young children with attention deficits. 

First quarter update 

The company's most recent market sensitive announcement was its Q1 update on 29 October. Within the update, Tali Digital's managing director Mr Glenn Smith said:

We have made significant progress during the quarter as we work towards commercialising our technology platform in local and international markets. However, the impact of COVID-19 on social interaction and the broader economic situation impacted the ability for the company to significantly roll out the TALi products during the quarter. To this end completing the Schools Early Release Programme was an important milestone, considering the circumstances, that provided critical insights into the use and benefits of our platform.

The company confirmed its products have been clinically validated and are regulatory cleared medical devices in the US and the European Union. Its partner and customer pipelines remain strong, and Tali anticipates the ability to drive commercialisation through the remainder of FY21. 

In July, the company announced the successful completion of its Schools Early Release Program in partnership with 30 schools located in Australia. The program was completed amidst COVID and demonstrates its ability to be deployed in any type of school and in remote learning conditions.  

The company is also eyeing the Indian market with the launch of its products in the iOS and Android apps at the end of the quarter. India has the second-largest mobile subscription base, with ~1.2 billion subscribers and second-largest internet subscription base with 560 million subscribers. 

At the time of writing, the Tali share price is up by 40% to 4.2 cents per share.

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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