AQUIS STOCK EXCHANGE
Good Life Plus (GDLF) completed its reversal into Semper Fortis Esports. There was £1.4m raised at 2p/share. The share price improved 11.1% to 2.5p. The business has been trading for just over two years and it offers members daily prize draws. There are more than 21,000 active members and monthly recurring revenues are £210,000. The company is currently loss-making, partly due to investment in marketing, although the increasing scale means gross profit is improving. The cash will fund further investment in marketing. Sportingbet founder Mark Blandford is one of the new investors.
Kondor AI (KNDR) joined the Access segment of Aquis on 21 September having raised £1.5m at 3p/share and by the end of the week the share price was 8.25p. There was £400,500 raised in November. Kondor AI intends to develop artificial intelligence products in areas such as health diagnostics, search and text recognition. A beta demonstration product is being tested.
Secured Property Developments (SPD) has appointed Paul Ryan as executive director and Noel Lyons as non-exec and they have acquired £150,000 worth of shares at 26.11p each. The existing directors resigned. It appears likely that the focus may change to technology and cleantech. Peterhouse has become corporate adviser. The changes sparked a 60% rise in the share price to 20p.
Incanthera (INC) has secured a commercial deal with a subsidiary of health and beauty company AS Watson for the launch of the Skin + CELL skincare range. This should generate significant revenues in 2024. The plan is to roll out the brand to 1,000 stores in Europe, followed by Asia. Manufacturing has been subcontracted. To fund this, £800,000 was raised at 7p/share and £200,000 of debt owed to the University of Bradford was converted into shares. There was net debt of £199,0090 at the end of September 2023.
Vanadium flow batteries developer Invintiy Energy Systems (IES) says full year revenues will be at least £21.6m, which is below forecast, and the EBIDA loss will be higher than expected at £22m. That means net cash will be around £1m. Forecast revenues for 2024 have been downgraded and the loss raised. This is based on exiting projects. Canaccord Genuity believes that there will be a cash injection from a strategic partner, which will offset the cash outflow in 2024.
Valereum (VLRM) has renegotiated the acquisition of the GSX Group, which is dependent on the approval of shareholders. It is paying five million shares and 10 million warrants exercisable at 1p each. The deal includes GATENet DFMI intellectual property, which puts the group in a strong position in tokenisation. The GATE token will the sole token used. As part of the deal former AIM boss Simon Brickles will become a non-executive director. GSX chief executive Nick Cowan will take up that role in the group.
Coinsilium Group (COIN) says a recovery in cryptocurrency markets is having a positive effect on the company. The expected approval of the first spot Bitcoin ETF should create more opportunities.
Aquaculture technology developer OTAQ (OTAQ) had a strong second half and full year revenues will be £4.4m, which is higher than expected. Oil and gas demand has improved. There was positive EBITDA in the second half. There are opportunities in Geotracking for next year.
Wishbone Gold (WSBN) is exercising the option over the Crescent East lithium and gold project in Western Australia. In return, 18.6 million shares worth around £400,000. Gold mineralisation has been confirmed and there is potential for lithium in the southern area.
Personalised medicine company EDX Medical (EDX) had £1.1m in the bank at the end of September 2023. There was £1.5m outflow from operating activities in the six months to September 2023.
Mydecine Innovations Group Inc (MYIG) is the largest faller on the week with a 70.6% decline to 2.5p, even though it has received notice of allowance from the US patent office for the MYCO-005 compound. It mimics psilocin but without some of the side effects.
ChallengerX (CXS) has moved from net assets of £282,000 to net liabilities of £33,000 at the end of June 2023.
Rogue Baron (SHNJ) has raised £50,000 at 0.35p/share. The spirits company is still performing due diligence on the acquisition of a vodka brand.
Marula Mining (MARU) says dual listings on the Nairobi Stock Exchange and JSE should happen in the first quarter of 2024. Indicative terms have been received indicative terms for an offtake agreement with a European commodity trader for the lithium output of Blesberg lithium and tantalum mine. Transportation of the modular processing plant for the Kinusi copper mine will not happen until early 2024.
Cadence Minerals (KDNC) investee company European Metals Holdings (EMH) says that the definitive feasibility study for the Cinovec lithium project in the Czech Republic has been delayed until the first quarter of 2024. This will allow time to complete capital and operating cost estimation and project implementation scheduling.
SulNOx Group (SNOX) says that its Ghana-based distributor has purchased 3,700 litres of SulNOxEco fuel additive and committed to a minimum of 15,000 litres each year, which is valued at £250,000. SulNOx has raised £1.8m at 23p/share. The share price is down 1.92% to 25.5p.
Walls and Futures REIT (WAFR) had an NAV of 87p/share at the end of September 2023. Property values increased by £60,000.
Capital for Colleagues (CFCP) is involved in a £1.5m fundraising for Rapid Retail, which supplies portable shops and kiosks, and it is investing £100,000 in existing shares and providing a 9% secured convertible loan of £400,000. The rest of the cash is coming from Harrock Investments, which is controlled by Capital for Colleagues non-executive Bill Ainscough.
Trading in Pharma C Investments (PCIL) will resume on 27 December This follows the recent publication of annual results and interim figures. There has been £281,000 raised at 0.01p/share. These shares are 91% of the enlarged share capital. Peter Wall will be executive chairman. The investment strategy has been changed to technology.
Gunsynd (GUN) NAV fell from £3.85m to £2.15m in the year to July 2023, including cash of £164,000.
Oberon Investments (OBE) has received FCA approval for the acquisition of Nexus Investment Management and the Nexus Investments Evergreen EIS Scale-Up Fund. Harry Hyman has increased his stake from 3.82% to 4.98%.
Macaulay Capital (MCAP) is making a £125,000 loan to a subsidiary of investee company Vale Foods. This loan earns 10%/year and provides cash to finance an increase in capacity. Macaulay Capital director David Horner is personally lending £100,000.
Cooks Coffee Company (COOK) is buying back shareholdings of less than 1,125 shares.
Adnams (ADB) director Sacha Berendji acquired 300 A shares at £19 each.
Jared Gurfein has been appointed as chief executive of Looking Glass Labs (NFTX), replacing Dorian Banks.
AIM
Trading has not gone to plan at Hargreaves Services (LON: HSP) but it is able to offer an enhanced dividend pay out. Reduced commodity prices and a slowdown in the German economy have hit the performance of German associate company HRMS, which is expected to make a first half loss. The flipside of the HRMS underperformance is that working capital is unwinding and cash generation has strengthened. Hargreaves Servies has received £8m from HRMS and the two sides have agreed that an annual distribution of £7m can be sustained. This enables Hargreaves Services to pay an annual dividend of 36p/share, compared with previous expectations of 21.9p/share. This will be paid in two equal instalments. The 2024-25 dividend is expected to be maintained.
Filtronic (FTC) has gained two new contracts. There is a £4.8m contract for LEO satellite communications equipment. This is a follow-on contract for second generation Cerus32 solid state power amplifier modules for ground stations. This shows the increasing importance of the satellite market. Filtronic also won a £4.5m defence contract starting in January. Revenues will be recognised in 2024-25 and 2025-26. Interim results will be published on 6 February.
Video games publisher tinyBuild (TBLD) has secured the cash it requires for working capital. The fundraising includes a one-for-six open offer and should raise $14.2m at 5p/share, which is above the current share price. Interactive entertainment company Atari is investing $2m. Chief executive Alex Nichiporchik will underwrite up to $10m of the fundraising. The video games market continues to deteriorate. Full year revenues are likely to be between $40m and $50m with a greater than expected proportion of lower margin games. Cost cutting should reduce cash outflow by up to $10m/year.
Microsaic Systems (MSYS) is negotiating the acquisition of some of the assets of Modern Warter from DeepVerge (DVRG), which is running out of cash, for £100,000. The assets include water testing equipment plus IP and rights to related equipment. It does not include the Australian business. Intercompany debt will be discharged as part of the deal. The exclusivity period lasts until 16 January. Trading in DeepVerge shares will be cancelled on 27 December.
Bidstack (BIDS) has sorted out its problem with Azerion. The in-game advertising technology provider has reached a settlement that means that Azerion will pay €3m to Bidstack. The two parties will form a new non-exclusive commercial partnership in 2024.
Helium One (HE1) announced a placing raising £6.1m at 0.25p/share. This will fund the drilling of the Itumbula West-A well starting in early January. There will also be 25.1 million shares issued in lieu of fees.
SRT Marine Systems (SRT) is raising £10m at 35p/share with up to £500,000 more to come from a retail offer. This includes a £7m investment by Ocean Infinity. There were no revenues from systems in the first half, but they should make a significant contribution as work on contracts reaches points where it can be invoiced. Earlier this year, SRT raised £5.36m from a placing and Primary Bid offer at 50p/share.
Graphene technology developer Versarien (VRS) has found it difficult to complete the disposal of non-core assets. In the year to September 2023, revenues were £5.45m and cash fell to £600,000. There was £450,000 raised since then, but cash has fallen to £420,000. A general meeting will be held to gain shareholder approval for a reduction in share capital and nominal value to make it easier to raise money from share issues.
Bluejay Mining (JAY) has appointed Roderick McIllree, Harry Ansell and Troy Whitaker to the board with the latter becoming chief operating officer. Robert Edwards, Bo Stensgaard and Peter Waugh have stepped down from the board. Roderick McIllree was previously chief executive between 2015 and 2022. The strategy is to focus on the Disko magmatic massive sulphide project in Greenland.
Thor Energy (THR) investee company EnviroCopper has reached agreement with Andromeda Metals to acquire the Alford West property and combine it with Alford East in return for a 5% stake in EnviroCopper and A$50,000 in cash with deferred consideration of a 10% share of any successful mining operations. There will also be a A$150,000 cash payment when a mining lease is granted. Alligator Energy is making a A$900,000 strategic investment in EnviroCopper to help fund its copper projects. That will give it a 7.8% interest and further investments could take the stake to 50.1%. Thor Energy’s stake has been diluted to 26.5%.
MAIN MARKET
A dual listing on the New York Stock Exchange was supposed to give Diversified Energy Company (DEC) a boost, but the share price slumped after Democrats in the US opened an inquiry into the company and questioned its business model. They are concerned about The US oil and gas producer’s methane emissions and abandonment risk.
Bowen Fintech (BWN) plans to acquire 93.49% of the share capital of MINNADEOOYASAN-HANBAI Co (MOH) and the enlarged business is expected to be valued at £42.7m. Japan-based MOH is a crowdfunding platform focused on property. It has been operating since 2007 and raised Y62bn (£378m) during the year to March 2023. Bowen Financial is issuing shares at 15p each and that will value MOH at £34.5m. The share price was suspended at 12p until a prospectus is issued. In October 2022, £2m was raised at 4p/share. At the end of April 2023, there was £1.7m in the bank.
IT services provider Triad (TRD) reported a dip in interim revenues and a more than doubled loss of £990,000. This was worse than expected. Cash has fallen to £2.62m. The interim dividend is maintained at 2p/share. Four new contracts have been won. This should improve the second half figures and next year’s results. Deputy executive chairman Charlotte Rigg has bought 4,444 shares at 135p each.
Andrew Hore
