NEX EXCHANGE
Trading in the shares of Barkby Group (BARK) following the publication of the prospectus for the reverse takeover of the Dickson group companies and move to AIM. There will also be a share consolidation of 193 shares into 74 new shares. Barkby is paying £30.6m, predominantly in shares with £750,000 in cash, and raising £5m at 30p a share. The businesses include Workshop Coffee, which operates four coffee shops and is a wholesaler of speciality coffee, and a south east England-focused commercial property developer. Barkby will also acquire the right to invest in two private companies: Transcend Packaging, which won a contract to supply McDonalds with paper straws, and VivoPlex, which has developed a medical device for fertility monitoring. A dividend is planned for this financial year.
Schroders has bought the whole of the 29.8% stake in Rutherford Health (RUTH) that was previously held by Woodford Investment Management.
Trading in the shares of Tectonic Gold (TTAU) has been suspended. Tectonic South Africa has been awarded an interim land mining contract at a diamond mining project in Alexander Bay in South Africa. It is replacing a previous subcontract that the company had. Mining can resume until the full contract is agreed. That could be by next March. A private investor signed an option agreement for the purchase of a 64% stake in Tectonic South Africa. In return they will fund future project development. There is a £100,000 cash payment to Tectonic on completion. There are 120 days for the investor to raise the cash required. The figures for the year to June 2019 will not be published by the end of 2019.
SulNOx (SNOX) started trading last week and the share price rose from 50p to 55.5p (53p/58p). There have been 35,875 shares traded on NEX.
NQ Minerals (NQMI) is raising £300,000 at 6.5p a share. This will fund an exploration programme to extend the life of the Hellyer mine.
Primorus Investments (PRIM) says that investee company WeShop hopes to float on AIM in the second quarter of 2020. Pre-IPO funding of £2m has been secured. Vela Technologies (VELA) and Two Shields Investment (TSI) are also investors in WeShop.
Clean Invest Africa (CIA) says that its CoalTech subsidiary has had successful tests with two listed South African coal consumers. Pelletised coal fines have been produced and they were deemed suitable. The first potential customer could sign up for a long-term supply agreement and the second could justify a plant at their location.
Wishbone Gold (WSBN) says that it generated 2019 revenues of $10.6m up to 17 December and the full year figure should be higher than the $10.9m reported in 2018. The starting of operations in Europe will help to grow revenues. Wishbone will receive $600,000 in relation to its operations in Honduras. There could be a further $400,000 depending on production. There will be a consolidation of 100 existing shares into one new share.
The CAMRA Members’ Investment Club has increased its stake in brewer Adnams (ADB) from 2.81% to 3.69%.
AIM
Focusrite (TUNE) is paying £39.2m for professional sound systems manufacturer Martin Audio. This will diversify the product range of the group and enhance earnings in the first year. The two companies are based near to each other in High Wycombe. In the 12 months to October 2019, Martin made an operating profit of £2.9m on revenues of £24.4m. ADAM Audio’s contribution has helped revenues to increase in the first quarter. Like-for-like revenues are lower due to adverse exchange rate movements and a on-off boost in the first quarter of the previous year.
Bidstack (BIDS) has entered into a two-year agreement with a global marketing services group, which will spend up to £10m on advertising via the Bidstack in-game platform over that period. None of the revenue will be in 2019, which is why the forecast will not be met and revenues will not be signficant.
Naked Wines (WINE) is paying a special dividend of 5.2p a share. The ex-dividend date is 24 December.
Marshall Motor Holdings (MMH) is acquiring six VW car, one VW commercial vehicles and one SKODA franchise from Jardine Motors for up to £22.3m. Trading remains in line with expectations, but Edison has cut its 2020 profit forecast by £4.1m to £23.2m, partly due to the loss-making acquisition.
Filtronic (FTC) is selling its telecoms antenna business to Microdata for $5.5m (£4.2m). The company can concentrate on the 5G and defence markets.
ValiRx (VAL) says that the VAL201 phase I/II clinical trial is coming to an end and the initial results appear to show that there is an impact on patients with prostate cancer. The compound is also safe and well tolerated.
A trading statement from Van Elle (VANL) has led to Peel Hunt cutting its 2019-20 pre-tax profit forecast from £4.8m to £4m. The ground engineering contractor says that the second quarter was stronger than the first and first half revenues have risen from £42.9m to £48m. However, pre-tax profit slumped from £2.8m to £1m. There should be some improvement in the second half. The share price has halved this year. The interims will be published on 22 January.
Trans-Siberian Gold (TSG) says the Russian authorities have confirmed the company’s residency in the Kamchatka advanced special economic zone and this could save $6m over seven years. Trans-Siberian will develop an extension of the Asacha gold mine and expects to invest up to $21.2m in the next five years.
Sabien Technology (SNT) has raised £300,000 at 0.15p a share. This will provide working capital as a review of the business continues. Sabien is seeking to broaden its range of products from energy efficiency to other technologies, particularly health and medical rehabilitation sectors. Alan O’Brien stepped down as chief executive and Richard Parris became executive chairman.
Shareholders have agreed to put Stirling Industries (STRL) into voluntary liquidation. Trading will be cancelled on 24 December.
MAIN MARKET
Sure Ventures (SURE) maintained its net asset value at 83.1p a share at the end of September 2019. That includes cash of £1.45m. Management believes that some of the earlier investments are maturing and they could have valuation uplifts.
Zenith Energy (ZEN) has raised £638,000 at 2p a share via a placing in Norway. The cash will be used to buy drilling equipment.
Career development and consumer engagement platforms provider Dev Clever (DEV) plans to raise more cash four months after raising £436,000 at 3.4p a share. The share price fell by around one-third just before and just after the company admitted it was raising money. The share price fell to 1.05p.
OTHERS
Getmapping has ended its strategic review and is no longer up for sale. The geospatial services provider believes it is not the optimal time to consider offers.
Andrew Hore