AQUIS STOCK EXCHANGE
Mydecine Innovations (MYIG) has added an Aquis quotation to is listing on the Canadian Stock Exchange. The biotech and life sciences company believes that coming to Aquis will increase exposure in the UK and Europe. The main focus is addiction, PTSD and other mental conditions. There have been no trades in the shares on Aquis since the introduction last Tuesday. The share price has stayed at 10p. The lack of liquidity is a concern.
Substrate AI (SA.B) joined the access segment of Aquis on Tuesday. Class B shares are traded, and they are also quoted on the Bolsas y Mercados Espanole Growth Market. These shares do not have voting rights. The Spanish company offers artificial intelligence technology that can be used to reduce costs and optimise decisions. There do not appear to have been any trades. The shares have no votes, but they can receive dividends. The share price is 22.5p (20p/25p).
The suspension of trading of shares in Helium Ventures (HEV) was lifted last Tuesday and the share price slipped 13.5% to 5.625p. This follows the termination of the acquisition of Vestigo Technologies by the cash shell. Instead, the target company intends to float on AIM. Helium Ventures will end up with £1.55m of shares in the company, or a price determined by independent valuation if the flotation does not go ahead. This is payment for management time and professional costs. Helium Ventures is also subscribing for £250,000 worth of shares to support working capital and it will be issued by £100,000 worth of shares for assistance on the flotation. The total stake will be capped at 9.99%.
Ormonde Mining (ORM) investee company TRU Precious Metals has published a technical report for the Golden Rose project in Newfoundland. An exploration programme has commenced.
VVV Resources (VVV) has signed an unconditional agreement to acquire the Mitterberg copper project in Austria for £350,000 minus a previous loan of £20,000 – £297,000 in shares and £33,000 in cash. This takes over from the previous agreement. The area was previously mined between 1830 and 1977.
RentGuarantor (RGG) says revenues and tenant contracts have doubled in the latest quarter.
Global Connectivity (GCON) has received the full disposal proceeds of £550,000 from Tiger Infrastructure earlier than expected.
SulNOx Group (SNOX) has raised £700,000 from a share subscription by Nistadgruppen AS at 22.5p/share. That takes the Nistad stake to 14.4%. The cash will be used for working capital. Spring Marine Group is adopting SulNOX fuel consumption reduction additives for its tankers and the initial order is worth $45,000.
Trading in Silverwood Brands (SLVD) shares continues to be suspended. The company has filed its defence in legal proceedings brought by Lush Cosmetics, and it is no longer trying to get Lush to register the shares it was buying. The purchase is being unwound. Castlenau has extended the repayment date for the £4.4m loan facility it provided to the company to 12 April 2024.
TruSpine Technologies (TSP) has submitted additional documentation and clarification relating to questions from the US FDA and the 510(k) application for Cervi-LOK.
Gunsynd (GUN) investee company Aberdeen Minerals has been awarded a grant of £294,000 by the UK government. This will meet around two-thirds of the cost of a feasibility study into processing minerals at the Arthrath nickel cobalt copper project. This relates to the use of cathode raw materials in Scotland for UK battery manufacturing. Investee company Low 6 generated revenues of nearly £1m in the quarter to September 2023.
Equipmake (EQIP) is joining with Perkins Engines and Loughborough University to develop e-powertrain technology for an off-highway hybrid system project. This is being funded by a £11m government grant and £3.24m of this will come to Equipmake, which will get potential access to the off-highway market.
Capital for Colleagues (CFCP) has invested a further £750,000 in space software company Bright Ascension as part of a £1.5m cash injection.
Chris Akers has reduced his stake in Tap Global Group (TAP) from 5.9% to 3.7%, while chief executive David Carr and chief strategy director Arsen Torosian bought 220,798 shares at 2.26p each and 4.735 million shares at 2.31p/share respectively. Res Privata NV has acquired a 3.33% shareholding in NFT Investments (NFT), having sold its 3.83% stake in March. Newbury Racecourse (NYR) chairman Dominic Burke bought 300 shares at 755p each. Watchstone Group (WTG) chief executive Stefan Borson bought 100,000 shares at 2.9p each. Watchstone lost its appeal in its court action against PwC.
EPE Special Opportunities (EO.P) had net assets of 295.98p/share at the end of September 2023.
AIM
Sanderson Design Group (SDG) is growing strongly outside of the UK, particularly in North America. The 8% improvement in interim pre-tax profit to £6.8m was better than expected and it was helped by higher licence income. Net cash is £15.9m.
Netcall (NET) grew full year revenues by 18% to £36m, leading to a jump in pre-tax profit from £3.9m to £6.5m. Next year’s forecast has been upgraded from £6.3m to £6.8m. Cloud software growth is accelerating with existing clients spending more.
Pension SuperFund Capital has made an agreed bid of 60p/share for STM Group (STM), which values the financial services company at £35.6m. Shareholders also receive a deferred consideration unit worth up to 7p/share based on the net attrition rate of customers between now and when the bid gains full regulatory approvals and becomes effective.
Marine transport tracking and data technology developer Winward (WNWD) has renewed important contracts with the US government and won two additional contracts. It has also won additional contracts in the rest of the world and renewed a $1m contract in Nigeria. This underpins the 2023 and 2024 forecasts.
Hotel Chocolat (HOTC) is starting to see the benefits of the reduction in costs and changes to the range of products. Full year revenues declined from £226.1m to £204.5m and the chocolate products retailer fell into loss. Improved cash flow means that there was net cash of £11m. In the first quarter of the new financial year UK store revenues are 14% higher. Further annualised cost savings of £800,000 have been achieved.
Cambridge Cognition (COG) has won a major contract using its core services combined with the recently acquired Winterlight services. The initial contract for providing the services to a clinical trial and training is worth £1m. Revenues will start to be recognised in 2023 and will last two years. If the trial goes well then there is potential for a larger contract.
It was a week of profit warnings, and the worst hit was Eneraqua Technologies (ETP) with a 61% slump to 38p to a new low. This is not the first warning this year. Further delays in energy efficiency spending by social housing companies have led to more downgrades for the energy and water efficiency technology company. Uncertainty about water standards for new housebuilding has hit demand for the water efficiency technology. The full year pre-tax profit forecast has been further reduced by 69% to £1.6m, with £2.4m expected next year. There continues to be underlying demand for the company’s products, but a significant recovery could be a year or more away.
Telecoms and network testing instrumentation supplier Calnex Solutions (CLX) is uncertain about the timing of telecoms customer orders. Revenues will be up to 30% lower than previous expectations. Cavendish has slashed its 2023-24 pre-tax profit forecast from £4m to £100,000, down from £7.2m last year. The balance sheet remains strong even though net cash is set to fall to £13.9m. The market capitalisation is £41.6m.
Versarien (VRS) has sent a general meeting notice to shareholders to gain approval to reduce the 1p par value of the share capital so that new shares can be issued.
Shares in Mind Gym (MIND) will report a first half loss. Results will be well below expectations in the year to March 2024. Clients are restructuring and delaying training programmes and the US has been particularly weak. A full year loss of £6.2m is forecast, compared with a pre-tax profit of £600,000 last year. When the company floated in June 2018 it was valued at £145m and the market valuation has slumped to £35.1m.
Market research firm YouGov (YOU) reported a 61% underlying improvement in pre-tax profit to £56.4m. Net cash was £107.2m at the end of July 2023, although this is before the proposed acquisition of the GfK consumer panels business. Custom research is growing fastest. The US has been a tougher region.
Cornish Metals (CUSN) says the feasibility study for South Crofty tin mine is progressing well. The successful test work confirms that there is potential for a resource upgrade. Process design optimisation should reduce capital and operating costs.
Ondine Biomedical (OBI) says that its Steriwave nasal photodisinfection technology is available across Canada, having recently come into use at Nova Scotia’s largest hospital. One-in-nine hospital patients in Canada get a hospital-related infection. Steriwave is an alternative to antibiotics.
Zenova Group (ZED) says that its 6 and 9 litre fire extinguishers have completed the EN3-7 tests for European certification. This will allow the extinguishers to retail and industrial customers. The first order for the FX6 litre fire extinguishers has been received.
MAIN MARKET
Heavy trucks demand remains strong, and Castings (CGS) is a company that is doing well out of this. Zeus forecasts an improvement in full year pre-tax profit from £16.7m to £19.4m. Net cash was £35.6m at the end of March 2023 and it could be more than £40m by next March.
Critical Metals (CRTM) has entered into an offtake agreement with OM Metal and Resources for the sale of 20,000 tonnes of copper oxide ore, at an average minimum grade of 1.5%, from the 70%-owned Molulu copper/cobalt project in the DRC. The agreement lasts until the end of 2023. The first delivery has been made. An existing processing plant will be rented and subsequently acquired.
Andrew Hore
