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Quoted Micro 17 February 2025
AQUIS STOCK EXCHANGE
Music management and event promotion company All Things Considered (ATC) more than doubled 2024 revenues to £50m and EBITDA was £1.5m. Growth is coming from adding managers and new clients, plus acquisitions. Further acquisitions are planned. An agreement has been reached to take the stake in livestreaming platform Driift from 32.5% to 100%. All Things Considered is assessing a move to an unspecified London Stock Exchange market.
Broker and investment manager Oberon Investments Group (OBE) has raised £2.5m in an oversubscribed placing at 4.5p/share. The cash will be used to accelerate growth, particularly in the broking business, which is expected to increase revenues by more than 50% in the current year. Mergers among larger broker provide potential to add to clients. There are also opportunities to add teams of investment and wealth managers. The Oberon AIM VCT (OVCT) is trying to raise a further £5m, plus over-allotment facility of £3.4m. Oberon Investments gets a fee based on the amount subscribed.
Cardiogeni (CGNI) has signed a memorandum of understanding with the private office of Sheikh Al Qassimi for funding of clinical trials. A joint venture will be formed, and it will receive £20m over a period up to 2027 to complete research and clinical trials in the UAE. There will be an initial cash injection of £5m. The cash will fund phase 2b/3 clinical trials and commercialisation of Cardiogeni’s heart failure treatments. The deal could be signed by the end of March 2025.
In the year to January 2025, EPE Special Opportunities (EO.P) NAV edged up to 328p/share. That includes cash of £11m. Trading was tough for all of the businesses in the portfolio. Investee company Whittard of Chelsea increased like-for-like sales by 6%. Pharmacy2U also grew organically and acquired a business in the pet care market.
ChallengerX (CXS) has entered into conditional agreements to acquire NYCE International for £1.6m, Virya VC for £280,000 and an instance of Reelsof AB’s remote gaming software and game aggregation platform for £160,000. These payments will be satisfied by the issue of 510 million shares at 0.4p each. There will also be a £600,000 fundraising. Virya founder Farzad Peyman will be appointed chief executive and NYCE founder Harmen Brenninkmeijer will become executive chairman.
Marula Mining (MARU) has signed the first copper sales agreement for the Kinusi copper mine with a European commodity trader. The initial delivery is 250 tonnes of copper concentrate based on 20% copper grade. The income is linked to the LME copper price with additional payments for gold and silver content. The first revenues should be received in this quarter. After successfully delivery, there will be more each month that will total up to 1,000 tonnes. There are three other potential offtake agreements. Kinui has reached a milestone, so $200,000 of shares have been issued to Takela Mining Tanzania at 6p each. Marula Mining has also paid the final consideration of £625,000 for Northern Cape Lithium and Tungsten in the form of 20.83 million shares at 6p each. Modifications to the plant at the Kilifi processing plant in Kenya should be completed in the second quarter. As part of the drawdown agreement, AUO Commercial Brokerage has subscribed for £500,000 worth of shares at 3.75p/share.
Valereum (VLRM) is not proceeding with the £2m option agreement with Blue Sky Ventures. Blue Sky was going to subscribe for shares at 10p each. It was previously announced that the option had been exercised. The proposed subscription may be taken on by another investor.
Inteliqo Ltd (IQO) wants to cancel the admission to the Aquis Stock Exchange. Inteliqo has been developing and marketing the Langaroo app for a client. It wants to save the costs of the quotation. Trading could end on 14 March if shareholders agree at the general meeting on 27 February.
Early-stage businesses investor MaxRets Ventures (MAX) is also seeking shareholder approval at a general meeting on 4 March to leave the Aquis Stock Exchange. There has been limited liquidity in the shares, and it can be difficult to trade. It has not been possible to raise additional cash.
Ormonde Mining (ORM) has secured three-year renewals for two gold exploration licences in Zamora Province in western Spain. Ormonde Mining plans to acquire the other 51.3% interest in the licences from AIM-quoted cyber security company Shearwater Group (SWG) for five million shares. That is a discount to the implied book value.
EDX Medical (EDX) has appointed Martin Walton as deputy chair. He has worked for other life sciences companies, including former AIM company ReNeuron.
One Heritage Property Development has reduced its stake in Zentra Group (ZNT) from 65.2% to 53.8% and Jason Upton, a director of the company, has raised his shareholding from 3.5% to 14.85%.
DXS International (DXSP) chairman Bob Sutcliffe bought 60,000 shares at 2.89p each, taking his stake to 2.08%. Gowin New Energy Group (GWIN) director Chen Chih-Lung has been transferred 9.73 million shares by Choice Only International Ent Co at a price of 0.00012894p each.
Investment Evolution Credit (IEC) has appointed Oberon as broker.
ASSET MATCH
The i-nexus Global (INX) auction has closed, and 49,220 shares were traded at 1.5p each.
AIM
Agricultural products supplier Wynnstay (WYN) reported a small dip in gross profit for the year to October 2024, but higher energy and labour costs meant that pre-tax profit reduced from £10.3m to £7.6m. Higher prices for milk and other agricultural products provide a more favourable background for this year. Even after a £600,000 National Insurance cost increase, pre-tax profit is expected to recover to £8.5m this year. A three-year programme called project Genesis will help to improve efficiency and there will be investment in additional feed capacity.
Cavendish has upgraded Filtronic (FTC) due to another contract from SpaceX. The 2024-25 pre-tax profit estimate has been raised from £11.5m to £11.9m, while the 2025-26 figure has been edged up from £8m to £8.3m. This £16.8m order is part of the framework agreement to supply technology for the Starlink Low Earth Orbit satellite network.
Specialist staffing provider Gattaca (GATC) has offset a small decline in net fee income in the first half through cost control. This is a better performance than the sector. Interim net fee income is 3% lower at £18m following a 10% decline in permanent net fee income. There are signs of recovery in permanent net fee income. Interim pre-tax profit is likely to be flat at £800,000. The full year pre-tax profit forecast is £3m. The forecast dividend of 3.1p/share should be twice covered by earnings.
Distribution Finance Capital Holdings (DFCH) has received authorisation from the FCA to conduct consumer lending. The core business is providing finance to distributors and manufacturers. The new retail products should be launched by the end of the first half of 2025. They can be offered through dealers that already work with the company.
Lord Ashcroft is trying to remove another of his companies from AIM. A general meeting has been requisitioned at wine maker Gusbourne (GUS), where he owns 66.8%. Talks with potential acquirers have ended and the strategic review has been terminated. This follows Lord Ashcroft’s success in getting Merit Group and Jaywing to leave AIM.
Genetics company GENinCode (GENI) is raising £4m at 3.7p/share and a retail offer could raise up to £500,000 more. The retail offer closes on 17 February at 5pm. There will be £1.5m set aside for commercialising its diagnostic products in the US. The US regulatory and reimbursement programmes will be completed. There will also be cash spent on expansion in the UK and the EU. There could be other funding options, such as partnerships and distribution agreements. Lipid inCode and Cardio inCode are the two main products. Lipid inCode diagnoses family hypercholesterolemia, which has a low rate of diagnosis with four-fifths of sufferers estimated to be undiagnosed. Cardio inCode focuses on genetic risk.
Optimisation software provider Checkit (CKT) has agreed a merger with Crimson Tide (TIDE). Shareholders will receive six Checkit shares for each Crimson Tide share. This ratio is based on the relative annual recurring revenues of each company. Checkit has been interested in a merger for four years and an indicative offer was made and rejected. Following the decision of Ideagen last July not to make a cash bid for Crimson Tide the two companies commenced discussions. The deal will increase the scale of the workflow management business. The Checkit chief executive and finance directors will remain in their roles. Crimson Tide was valued at £6.5m (99p/share) at the Checkit closing price last Monday.
Healthcare services provider Totally (TLY) has lost the NHS 111 Resilience support contract. The 12-month contract was worth around £13m and it ends on 15 February. This is due to the ending of national services for excess demand. Totally is still expected to make a pre-tax profit of £700,000 for the year to March 2025, but Canaccord Genuity has cut its 2025-26 forecast from £1.6m to £700,000. The 10-year government plan for the NHS should be published in the spring.
Medical imaging technology developer IXICO (IXI) announced the completion of the analysis of more than 6,000 images within its Huntington’s disease patient MRI datasets. This puts IXIXO in a strong position to be selected as a contract research organisation on Huntingdon’s disease clinical trials. This is part of the Huntington’s Disease Imaging Harmonisation consortium. This data should identify imaging biomarkers. This will help with improving clinical trial design, patient selection and drug development. IXICO has 25 clinical trials in its order book and ten of them are for Huntington’s disease. They account for 50% of the order book that was worth £15.4m at the end of September 2024. Globally, there are a total of 58 active Huntington’ disease clinical trials.
Avingtrans (AVG) subsidiary Booth Industries has won a £4.5m contract to supply pressure rated fire doors to HS2. These doors provide access to railway tunnels in emergencies. Booth Industries already had a £36m contract with HS2 for cross-tunnel sliding doors that seal off passageways between tunnels. Production for the latest contract is not expected to start until the year to May 2027. Interim results are due to be published on 26 February.
Serinus Energy (SENX) has won a legal case against the Romanian tax authorities over VAT refunds. The company has been awarded a VAT refund of $1.73m for 2018 and 2019, as well as interest of $750,000. This has to be paid within 45 days. The Romanian operation is loss-making, but there are gas projects that could be developed. The 2024 results are due to be published in March and there should be news concerning how the money will be invested in the business.
Empire Metals (EEE) has achieved a 91% extraction rate of titanium dioxide at the Pitfield project in Western Australia. The test work results suggest that the processing method is straightforward. Development of the processing flowsheet is continuing, and further refining could increase recovery. The main titanium-bearing minerals are anatase and rutile.
Surveillance technology developer Thruvision (THRU) says potential contracts have been delayed. This means expected 2024-25 revenues will be between £5m and £6m. The previous expectation was £9m. Cash should last until May and talks have commenced with potential acquirers or providers of additional cash.
Surgical instruments manufacturer Surgical Innovations (SUN) has returned to profit in the second half of 2024, although the full year loss could still be £300,000. Trading was broadly in line with expectations. Net debt was £300,000 at the end of 2024. Brent Greetham has been appointed as finance director. The business restructuring of the business will benefit the 2025 figures.
Wound healing technology developer AOTI Inc (AOTI) says 2024 revenues will be in excess of $58.1m, up from $43.9m. The Veterans Association accounted for less than three-fifths of revenues as new markets are developed, and they will become increasingly important. However, payments are slower. The full figures will be published on 26 April. Growth is expected to be more than 30% in 2025.
Strategic Minerals (SML) has identified additional mineralisation at the Redmoor tungsten and copper project in Cornwall. This will add to a future update of the mineral resource estimate, which is six years old. The total inferred resource was 11.7 million tonnes at 0.82% tungsten equivalent. Further drill core from 2017 will be relogged to support the remodelling of the deposit.
MAIN MARKET
Fintech Asia has completed the reverse takeover of Mongolia-based ICFG and changed its name to ICFG Ltd (ICFG). The payment was 177.84 million shares at a valuation of 64p each, which was higher than the market price. The main subsidiary InvestCore NBFI is listed on the Mongolian Stock Exchange, but ICFG owns more than 80%. This subsidiary has operations in Mongolia and Kyrgystan and is opening additional operations in Kazakhstan and Uzbekistan. There are plans to open up in other countries in Asia. Investment in software and AI helps ICFG to be competitive. Other operations include investment banking and property investment. Trading in the shares resumed and the share price ended the week at 50.5p.
ACG Metals (ACG) is planning a cash tender offer for 30% of warrants in issue. The offer is 50 cents for each warrant. It already announced an offer for the other 70% of warrants of 0.1 of a share for each warrant. Both tenders close on 28 February. The Gediktepe mine increased gold equivalent production by 49% to 57,000 ounces. Costs fell 2% to less than $1,150/ounce.
Shares in royalty company Cloudbreak Discovery (CDL) returned from suspension following publication of the accounts for the year to June 2024.
Andrew Hore
Quoted Micro 6 June 2022
AQUIS STOCK EXCHANGE
VSA Capital (VSA) has launched the AQSE Apex Index, which has a base of 1,000 at the beginning of 2021. There are 21 constituents of the Apex segment of the Aquis Stock Exchange, including its owner Aquis Exchange. The index is weighted by market capitalisation and the total market capitalisation is around £1bn. New admissions to the Apex segment and companies moving from the Access segment to Apex are eligible for inclusion in the index at the next quarterly review. The index was 835.16 on 26 May 2022.
Gledhow Investments (GDH) made an interim loss of £293,000, due to a net unrealised loss of £435,000 offsetting realised gains. Net assets ware £2.37m at the end of March 2022. One-third of the current portfolio is invested in Aquis companies.
Interim revenues of rail track fastening technology supplier Wheelsure Holdings (WHLP) recovered from £56,000 to £93,000, while the loss was reduced from £117,000 to £105,000. The first order was received from the Barcelona Metro. The product range has been broadened and this will provide additional growth opportunities.
Probiotix Health (PBX) says that its partner in Uruguay is launching a probiotic yoghurt called Yo-Life, which includes the company’s cholesterol-reducing ingredient. There were more then t3wo years of product development prior to the launch.
First quarter revenues generated by Yooma Wellness Inc (YOOM) increased from $604,000 to $3.2m, partly tanks to acquisitions. There was a small rise in pre-tax loss from $2.38m to $2.5m. Yooma is reviewing its strategy.
There was a $367,000 cash outflow from operating activities at medicinal psychedelics investment company Oscillate (MUSH) in the year to March 2022. Net assets were $3.12m. Investments include Psych Capital, which is about to join Aquis. There are still resources and technology companies in the portfolio.
Eight Capital Partners (ECP) is holding a bondholder’ meeting to gain approval to extend the life of the bonds until 3 September 2026 and to set an annual interest rate of 4.8%. If approved bondholders will be issued warrants equal to the par value of their bond holding at a strike price of 0.05p a share.
Quetzal Capital (QTZ) is extending the deadline exercise date for a subscription of £500,000 of convertible loan notes in TAP Global to 30 June.
TruSpine Technologies (TSP) has raised £700,000 at 5p a share and issued shares at the same price to pay creditors of £77,500. Directors’ fees of £97,200 were converted into shares at 15p each. Rhe cash will be used to finance the FDA approval process.
AIM
Coral Products (CRU) is using some of its cash to acquire Runcorn-based Alma Products for an initial £1.5m in cash with additional consideration depending on the EBITDA for the year to April 2023. The maximum earn-out payment is £1.5m, which would mean that EBITDA had reached at least £600,000. Alma produces sheet extrusion, volume vacuum forming and container printed products for the food packaging and personal care markets. Alma owns the freehold of its factory, and it has up to date capital equipment.
Cancer diagnostics developer ANGLE (AGL) has signed a deal with MidLantic Urology, which will evaluate the Parsortix system for use in prostate cancer studies. There is also a master clinical study agreement with Solaris Health Holdings. MidLantic Urology is an affiliate of Solaris, and it is one of the largest providers of specialist urology services in the US. Initial results are expected in 2023.
Digital media company Digitalbox (DBOX) is acquiring the web and mobile assets of TVGuide.co.uk for £550,000, which includes payment for £180,000 of transitional services. This is an immediately earnings enhancing deal and it fits with the company’s Entertainment Daily brand. In 2021, the assets generated an operating profit of £150,000 on revenues of £490,000.
Escape room company XP Factory (XPF) increased revenues by 163% to £7m in 2021, which includes an initial contribution from Boom Battle Bar, which is a more food and drink-focused activity venue operator. The loss was sharply reduced. This year the venues will be operating from the start of the year and more outlets are being added. There are some combined Escape Hunt and Boom sites that are operated by the company, while other boom sites are franchised. There was £6.9m in the bank at the end of April 2022 and that will help to finance site opening plans. Management is able to find suitable locations at attractive rents. Current trading is ahead of expectations.
Technology investment companies Tern (TERN) and Pires Investments (PIRI) are merging to create a larger, more attractive investment proposition. Tern is offering 0.51613 of one share for each Pires share.
Data driven digital services provider Silver Bullet Data Services (SBDS) increased full year revenues from £2.79m to £3.81m, but growth is slower than previously thought. The company has developed a product that can replace the use of cookies, but the take-up has been slow. The loss remains significant. Silver Bullet is raising £2.39m at 100p a share and £2.11m through convertible loan notes, which are convertible at 110p a share.
MAIN MARKET
Cloudbreak Discovery (CDL) is providing a $2m debenture to G2 to help finance the Masten Unit energy project in Texas in exchange for a 3.25% overriding royalty interest. There is a 12% interest rate which can be paid quarterly in cash or shares. G2 has issued 6.5 million warrants exercisable at 30 cents each.
Hawkwing (HNG) has £2.3m in cash and an investment in Internet Fusion Group valued at £14.4m. The potential reverse takeover of that company is not going ahead and Hawkwing wants to unwind the loan. After taking account of the convertible loan notes in issue, net assets were £2.51m at the end of 2021. Hawkwing is seeking acquisitions in digital marketing or medical or business services.
Mining, Minerals and Metals (MMM) has £200,000 in the bank at the end of January 2022. This will be used to help fund the due diligence on the proposed acquisition of Narnia Mauritius Gas, which owns a gas exploration licence in South Africa.
Toople (TOOP) founder Andrew Hollingworth and Greg Bryce is taking over as chief executive.
First Tin (1SN) has £2.5m in the bank prior to raising £20m in its standard list flotation. Arlington Partners Fund has acquired 808,228 shares at 19.055p each.
Andrew Hore
Quoted Micro 14 March 2022
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX) has announced that it will be joining the Aquis Apex segment with VSA as its corporate adviser. Aquis Exchange will retain its AIM quotation. This follows Invinity Energy Systems (IES), which joined the Aquis Apex segment on 9 March. This includes the ordinary shares that are quoted on AIM, as well as quotations for short-term warrants and long-term warrants that are not traded on any other markets. VSA also plans to create an index that includes all the companies on the Aquis Apex segment called the VSA Capital AQSE Apex Index.
Majestic Corporation (MCJ) is a recycler of electronic waste with a focus on extracting the precious metals from the equipment and it was introduced to the Aquis access segment on Thursday. The share price opened at 30p and then fell back to the introduction price of 25p (20p/30p). The reason for the flotation is to gain access to potential funding via share issues. Gold, silver, copper and other metals can be extracted from the electronic waste. Most of the materials that the company recycles are sent to Japan for processing and re-use in manufacturing. In the six months to June 2021, revenues increased from $14.4m to $15.5m, while pre-tax profit improved from $312,000 to $766,000. There was $1.89m in the bank at the end of June 2021 and an additional $233,000 owed by the chief executive. There are also import loans of $2.11m.
Good Energy (GOOD) investee company Zap-Map has linked up with the RAC so that it can be better placed to help electric vehicle drivers. Zap-Map will be used by 1,600 RAC patrols. The 2021 figures will be published on 29 March.
Goodbody Health Inc (GDBY) says 2021 revenues are expected to be around £17m, helped by PCR testing. That will drop off, but the revenues in the first two months of 2020 were £3.8m. There is likely to be a dip in interim revenues, but new products and services will help growth in the second half. Blood testing services have been launched in the clinic network.
Ananda Developments (ANA) says five seeds of each of 13 strains of cannabis have been planted by DJT Plants. Nine cuttings will be taken from each plant and then replanted. The shareholder circular for the acquisition of the 50% of DJT that is not owned by Ananda should soon be completed.
BWA Group (BWAP) has raised up to £500,000 at 0.6p a share. The cash will be used for exploration programmes at the Nkoteng and Dehane heavy mineral sands areas in Cameroon. This should produce initial mineral resources.
KR1 (KR1) is participating in the Interlay crowdloan and Polkadot (DOT) parachain auction. Interlay is building interBTC a Bitcoin-backed asset that enables interoperability between multiple blockchains while being resistant to censorship. KR1 contributed 250,000 DOT and this will be returned after 96 days. INTR tokens will then be issued. KR1 has also invested $509,224 in Interlay Seed-2 shares. It already owns 1,060 Seed-1 shares.
Altona Rare Earths (ANR) is not going ahead with the Malawi-based Chambre rare earths project joint venture and the potential partner’s representative on the Altona board Hilton Banda has resigned.
Walls and Futures REIT (WAFR) has launched Pax Homes, which provides homes for people with autism and their families.
AIM
Destiny Pharma (DEST) has raised £6m, with a possible £1m more to come from an open offer, at 50p a share. The companies c.diff prevention treatment NTCD-M3 addresses a market worth more than $1bn. There is a good chance that a partner can be secured this year. There is more than one pharma company that is interested. The XF-73 treatment for the prevention of post-surgical infections requires further feedback from the FDA for its phase 3 trial in the US.
MTI Wireless Edge (MWE) is closing its Russian business and that will slow progress this year, but profit should still grow. In 2021, revenues increased 6% to $43.2m, while higher transport costs and exchange rate movements meant that pre-tax profit was flat at $4.04m. Russia accounted for 6% of revenues and 5% of profit. In 2022, pre-tax profit is expected to be $4.55m.
Delivered ready meals company Parsley Box (MEAL) is raising raised £5.9m at 20p a share – 90% of the original placing price less than one year ago. An open offer could raise up to £1.1m. Revenues are expected to be flat this year, but if the cash is invested successfully then growth could accelerate.
Restaurants and bars operator Various Eateries (VARE) says trading continues to follow an improving trend following lockdowns in the past two years. In the year to 3 October 2021, revenues were 36% ahead at £22.3m and the total loss was £3.7m. That was after £2.5m of insurance proceeds. One consequence of the Covid lockdowns is that there are more potential sites available at lower rents than in the past. Coppa Clubs are hybrids that offer a bar, restaurant, event space and, on some sites, hotel rooms and more sites are being opened. As yet, Italian restaurants brand Tavolino has not opened any more sites. A new pasta restaurant concept called Noci is being launched in Islington and the prospects will be assessed.
Harvest Minerals (HMI) says that it had fertiliser orders totalling 30,161 tonnes by the end of February 2022. That is one-fifth of the sales target for the whole of 2022. There are plans to increase capacity to 200,000 tonnes a year.
Managed IT services provider CloudCoCo (CLCO) reported flat revenues of £8.1m in the year to September 2021 and reduced the loss. Contributions from recent acquisitions and organic growth will help the figures to improve this year. Monthly profitability is targeted by the end of the current financial year. A contract worth £3m over three years has been secured. Further acquisitions should supplement growth.
ThinkSmart (TSL) reported a small underlying profit in 2021. Net cash is £7m, although the main asset is 618,750 shares in Block Inc following its takeover of Afterpay. The legacy lending business is being wound down and there is still income from operating a call centre for Afterpay. Net assets were equal to 75p a share, but in recent months the Block share price has been in decline, so the NAV is lower.
Concrete levelling equipment supplier Somero Enterprises Inc (SOM) reported profit in line with expectations. Revenues increased from $88.6m to $133.3m with strong growth in North America. The supplemental dividend is 22 cents a share and the total dividend for the year is 50.7 cents a share. Growth is likely to slow this year.
NWF (NWF) is benefiting from the volatility of the oil price and additional demand for the fuels division. There have been no supply problems. Feeds price rises are covering cost increases and raw materials have been forward purchased, while the food distribution business is performing as planned. Full year figures will be significantly ahead of expectations.
MAIN MARKET
Gresham Technologies (GHT) increased full year revenues from £24.8m to £37m in 2021, including a £5.6m contribution from last year’s acquisition Electra. Underlying pre-tax profit improved from £1.8m to £4m. The final dividend was maintained at 0.75p a share. There is cash of £9.1m. The core Clareti financial control and data integrity software generated organic growth of 28%. New customers and existing clients spending more is combining to enable strong increases in Clareti revenues. Contracted revenues for 2022 have already reached £37m compared with a full year forecast of £42m. A 2022 pre-tax profit of £5.1m is forecast.
Codex Acquisitions (CODX) did not get off to a good start when it joined the standard list on Wednesday because its website was not working. Codex raised £850,000 at 10p a share. The share price did go to a premium, but the bid/offer spread was 10p/20p. It appears that there were 50 shares traded during the week. The cash shell has effectively been set up by Codex Capital and most of the shares are owned by eight shareholders, including one of the non-exec directors. The NAV is 8.2p a share. The focus of the cash shell is clean and renewable energy assets, particularly infrastructure assets.
Online furniture and housewares retailer Made.com (MADE) increased full year gross revenues by 38% but it still lost money. A 2022-23 pre-tax profit of £8.3m is forecast, even though revenues growth is likely to be slower than previously thought.
Cloudbreak Discovery (CDL) has secured an option on the Icefall project in British Columbia with 1311516 BC Ltd, which will spend C$700,000 over three years to secure a 75% interest in the project. It will also pay Cloudbreak a total of C$120,000 in cash and issue two million shares.
Fragrant Prosperity Holdings (FPP) is not going ahead with the proposed acquisition of cannabis company CiiTECH.
Andrew Hore
Andrew Hore – Quoted Micro 7 June 2021
AQUIS STOCK EXCHANGE
Chapel Down Group (CDGP) is raising up to £6.88m at 59.5p a share via a placing and crowdfunding offer. The directors and Michael Spencer have invested £1.43m in the placing. The rest of the cash will come via the crowdfunding with Seedrs. The financing will only go ahead if a minimum of £3m is raised. The wine maker wants to increase the scale of its winery so it can process more fruit and complete the planting of new acreage. Management also wants to improve the e-commerce capabilities. A new asset-based financing facility of up to £15m has been secured and it will refinance the HSBC debt. Chapel Down increased its revenues from continuing operations from £10.1m to £13.3m in 2020. The underlying pre-tax profit was trebled from £308,000 to £955,000.
TECC Capital (TEC) is a new shell that is seeking to buy technology or cannabis businesses. There is a wide list of potential sub-sectors that will be considered, including artificial intelligence and machine learning, telematics, life sciences, including cannabis products, cyber security and e-commerce, which includes the Internet of Things. TECC raised £1.1m, after expenses at 5p a share. There is pro forma cash of £1.15m, which is equivalent to just over 3.8p a share. Even so, the share price ended the week at 10p. Chris Akers owns 9.9%.
Pioneer Media Holdings Inc (PNER) is a Canada-based investment company with investments in eSports and mobile gaming businesses. It already has a portfolio of ten companies and a Canadian Stock Exchange listing. The shares floated at 45p each and they closed the week at 48p each.
Gledhow Investments (GDH) is raising £850,000 at 1.75p a share. That is at a 12.5% discount to the market price. Gledhow had net assets of £2.35m at the end of March 2021, including £374,000 in cash. That means it is a significant discount to net assets of nearly 4.8p a share. That figure will be significantly diluted by the new share issue. Gledhow does need to become bigger to warrant the quotation, though. Although it has a portfolio of investments, Gledhow would make a good shell for a business. Burns Singh Tennent-Bhohi has taken a 3.26% stake in Gledhow.
Non-executive director Dominic Burke has bought 10,000 shares in Newbury Racecourse (NYR) at 582.5p each. The racecourse will be able to have spectators at its 10 June meeting and if there is further easing of lockdown then the hotel and events businesses can reopen. Newbury Racecourse will continue to be loss making in the first half of this year. A joint venture has been set up with a subsidiary of Compass to provide catering for the racecourse and other businesses.
KR1 (KR1) has invested a further $200,000 in Automata, as part of a $2.4m financing. KR1 will receive five million ATA tokens and it already owned ten million tokens.
Startup Giants (SUG) increased revenues from £45,000 to £87,000 in 2020. Higher costs meant that the loss increased. However, there was a £9,000 cash inflow from operating activities. There was net cash of £651,000 at the end of 2020.
Wishbone Gold (WSBN) says that initial drilling of the Cottesloe silver project, which is close to the Red Setter project.
MiLOC Group Ltd (ML.P) has raised nearly £80,000 at 28.5p a share.
Capital for Colleagues (CFCP) directors Alistair Currie and Ed Jenkins have each bought 18,400 shares at 43.25p each. Currie owns 3.67% and Jenkins holds 0.75%. Chairman Jonathan Bixby has bought 1,000 shares in NFT Investments (NFT) at 2.9p each. Iain Livingston, the father of S-Ventures (SVEN) chief executive Scott Livingston, has sold 150,000 shares at an average price of 23p a share. Scott Livingston owns 49.1% and his family a further 3.5%.
AIM
Arecor Therapeutics (AREC) takes existing pharma products and reformulates them for new uses or to make them more effective. A placing raised £18.3m, after expenses, at 226p a share. The main focus is diabetes. Arecor’s insulin program AT247 is an ultra-rapid acting meal-time insulin product, while AT278 is an ultra-concentrated rapid acting insulin development, which could be used with miniaturised insulin pump delivery devices. AT299 is a co-formulation of pramlintide and insulin. These fast-acting insulins have an addressable market worth $6.4bn. There have been positive clinical studies for AT247. A phase II study should provide results in 24 months and that would be the point when a partner would be secured.
Artisanal Spirits Company (ART) owns the Scotch Malt Whisky Society (SWMS) and it raised £13.2m after expenses at 112p a share, which was at the bottom of the 112p a share to 121p a share price range. First quarter sales in 2021 improved from £2.9m to £3.4m, even though venues and events revenues continued to be well down during the period. There was cask whisky and bottled stock of £21.7m at the end of 2020. That is the main asset in the balance sheet and an independent valuation believes that this stock is worth £9m more than book value – based on an orderly liquidation.
Franchised lettings agency Belvoir (BLV) has acquired The Nottingham Building Society’s mortgage and protection services business for £600,000. This year’s operating profit is expected to be £175,000. The deal could add 1% to earnings in a full year.
Coral Products (CRU) had £3.8m in the bank at the end of April 2021. That should be boosted by the Haydock freehold sale, which should be completed in the second half. In the year to April 2021, revenues from continuing operations increased from £8.7m to £10.7m. Even excluding the profit on disposals of £2.3m, the pre-tax profit was £700,000. There will be a final dividend of 0.5p a share.
CyanConnode (CYAN) has raised £3.15m at 9.5p, taking advantage of the strength of its share price. This was a small premium to the market price. CyanConnode could have made progress in the smart meter market without the additional cash, but this will help to accelerate its growth.
Cleantech company Verditek (VDTK) is raising up to £500,000 through a bond offering 7% interest, secured against the assets of the company. The offer is via Crowd for Angels, which is underwriting the first £225,000 of the two-year bond. Verditek wants to expand its Italian facility so that it can satisfy international contracts for its lightweight, flexible solar panels. The focus is the solar operations, but there are also minority stakes in BBR Filtration and Industrial Climate Solutions Inc.
Housebuilder Springfield Properties (SPR) says that its 2020-21 revenues and profit will be better than pre-Covid-19 levels. This was helped by two land sales. N+1 Singer forecasts an improvement in pre-tax profit from £10.2m to £18m.
Internet domain name registry and services provider CentralNic (CNIC) generated organic growth of 16% in the first quarter of 2021. Total revenues jumped from $56.9m to $84.4m, helped by acquisitions. Net debt is $79m.
MAIN MARKET
Sportech (SPO) and CML Microsystems (CML) both intend to switch to AIM. Sportech believes that the junior market is more suitable for its size and it will make it easier to complete transactions. CML also believes that AIM is more suitable following the sale of one of its divisions and it also expects its shareholders to benefit from the tax breaks.
Tarek Taksch has reduced its stake in Oxford Cannabinoid Technologies (OCTP) from 7.75% to 5.43%. The company has entered a consultancy agreement with Voisin Consulting, which will help with regulation and development plans for OCT461201, a treatment for ailments associated with IBS.
Shefa Gems (SEFA) is demerging its gems business, because it will take longer than expected to exploit the assets, and turning itself into a shell. Existing shareholders will receive shares in the gems business. There will be a 100-for-one share consolidation and then the company will raise $1.05m (£756,000) at 3.53p a share. The name will be changed to Alef Bet Advanced Technologies and seek an acquisition in web technology and software.
Imperial X (CDL) has raised £2m at 3p a share as part of its move from Aquis to the standard list. The resources company is changing its name to Cloudbreak Discoveries.
Motor dealer Caffyns (CFYN) manged to improve its underlying profit from £251,000 to £1.88m last year, even though revenues fell from £195.8m to £165.1m. Net debt was £10.3m at the end of March 2021. There has been a property valuation that shows the portfolio is worth £12.3m more than book value. Excluding that surplus, NAV is £27.6m.
National Word (NWOR) has already secured annualised savings of £4m from the JPI Media acquisition and is on course to secure savings of at least £5m. The online audience is increasing, and monthly content revenues are being generated from Google and Facebook. Overall revenues increased by 18% in April and May. The fastest growth is from digital.
Andrew Hore