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Quoted Micro 18 November 2024
AQUIS STOCK EXCHANGE
Aquis Exchange (AQX), which operates the Aquis Stock Exchange, is recommending a bid from rival exchange trading business SIX Exchange. SIX is mainly interested in the technology that Aquis has developed, but it suggests that there is potential to develop the Aquis Stock Exchange as a pan-European market. The offer for Aquis Exchange is 727p/share in cash, which values the company at £225m. There had been several previous proposals from SIX.
Aquaculture technology developer OTAQ (OTAQ) says delays in orders mean that 2024 revenues will be lower than expected. Dowgate forecasts a drop from £4.4m to £3.1m (previously £4.2m) this year and a £1.8m loss, up from £1.2m in 2023. There should still be net cash of £100,000 by the end of the year. The orders should fall into 2025. Costs continue to be reduced and annualised savings of £500,000 have been made. The board is seeking shareholder approval to leave Aquis.
Pubs operator Daniel Thwaites (THW) increased interim revenues by 5% to £63.5m and although pre-tax profit declined, excluding gains on interest rate swaps and property disposals or income on pension assets, it improved from £6m to £6.7m. Net debt was £71.2m at the end of September 2024 and it continues to invest in its pubs and hotels. The dividend was raised from 0.85p/share to 0.9p/share. There has been weaker consumer confidence since the summer. The National Living Wage and National Insurance hikes, along with the reduction in business rate relief, will hit the business and there is limited scope to increase prices. That is a problem for the next financial year.
Crypto app developer Tap Global Group (TAP) has appointed Peter Wall as strategic adviser, and it is intended that he will become chairman. He used to be chief executive of Argo Blockchain. In the year to June 2024, unaudited revenues were £2.67m and they continue to rise. Chief executive Arsen Torosian will take on the same role at the Gibraltar-based subsidiary once regulatory approval is received.
Asia Wealth Group (AWLP) moved back into profit in the first half. A loss of $94,000 was turned into a pre-tax profit of $13,000. The company is seeking investment opportunities in the UK and Asia.
Mendell Helium (MDH) has completed the sale of health business. M3 Helium, which Mendell Helium has an option to acquire, says the potential flow rates from the Rost 1-26 well in Kansas could exceed previous expectations.
Ananda Developments (ANA) chief executive Melissa Sturgess bought 2.02 million shares at an average price of 0.32p each. She has a 9.92% shareholding.
Transport electrification technology developer Equipmake (EQIP) says Tony Ratcliffe will leave his role of finance director at the end of the month.
EPE Special Opportunities Ltd (EO.P) had net assets of 294.9p/share at the end of October 2024.
AIM
Film vehicles and services provider Facilities by ADF (ADF) has been hit by filming delays and the cancelation of projects. It had appeared that there would a strong recovery in the second half following the Hollywood writers’ strike. Revenues have been reduced from £48.6m to £35.1m and margins have been hit by competition for limited contracts. This means that Facilities by ADF will not do much better than breakeven in 2024. There should be a recovery in 2025, but revenues have been cut from £67.3m to £56.8m – including a 12-month contribution from Autotrak. Rockwood Strategic has a 3.7% stake and related investment entities have a further 7.6%, while Octopus has taken a 6.49% stake. Downing and Otus have reduced their holdings. Chairman John Richards bought 200,000 shares at 30.5p each.
Duke Capital (DUKE) is asking for more money from shareholders. A placing has raised £17.2m at 27.5p/share, which is more than the initial amount sought. A retail offer could raise up to £3m more. The cash will be used for new and follow-on investments. There could also be some stakebuilding in existing investee companies. There will also be additional debt funds that can be used. The retail offer closes on 22 November.
Investment manager Tatton Asset Management (TAM) increased assets under management and influence by 13% to £19.9bn. It will be difficult to continue this momentum. Pre-tax profit was 29% ahead at £11.4m. This was held back by additional investment in mortgage business Paradigm. The interim dividend was raised by 19% to 9.5p/share.
Programmatic advertising services provider Nexxen International (NEXN) plans ask shareholder permission at its AGM for a departure from AIM and change its Nasdaq listing from ADRs to ordinary shares. Third quarter figures show 12% growth in revenues, while EBITDA is 49% ahead at $31.6m. The 2024 EBITDA forecast has been raised by 7% to $107m, which is still well below the 2022 level.
Phoenix Copper (PXC) says NIU Invest is reviewing the Empire mine project ahead of setting out a new drawdown schedule for the $80m corporate copper bond. So far, $5m has been drawn down. The company is talking to other potential bond investors. There is enough cash to reach the second quarter of 2025.
SRT Marine Systems (SRT) is raising £8.5m at 35p/share, including £5.36m from Ocean Infinity, which has also underwritten a retail offer to raise £2m of the cash. Ocean Infinity is providing a $21.4m guarantee for the performance bond relating to a $213m marine systems contract. There are other potential contracts in the pipeline and management says that SRT Marine Systems should be significantly profitable in 2025-26.
Great Western Mining Corporation (GWMO) says the anomalous copper zone at the West Huntoon porphyry copper prospect has been expanded from 2 square km to over 3 square km. There have been some high grades of copper, gold and silver in samples. The anomalous zone appears to trend towards the company’s M2 copper resource.
Deltic Energy (DELT) says Shell has provided an updated total well cost estimate of $48m for the Selene well site in the North Sea. Deltic Energy is carried for costs of up to $49m. There are plans for a second licence term as the partners move towards a final investment decision. This news and the full inclusion of tax losses has led Canaccord Genuity to increase its NPV10 share price target from 30p to 38p.
Gold explorer and producer Ariana Resources (AAU) has secured a $5m financing agreement with RiverFort Global Partners and $2m has been received. No new shares will be issued. This will fund feasibility studies for the Dokwe gold project in Zimbabwe. RiverFort Global Partners will be the cornerstone investor for the ASX listing.
There has been plenty of news from cancer diagnostics developer Angle (AGL) this week. The DNA analysis of circulating tumour cells using Parsortix has been shown to identify EGFR-mutated non-small cell lung cancer patients that are developing resistance to treatment with AstraZeneca drug Osimertinib. Uses of the Parsortix technology are being showcased at an American Association for Cancer Research special conference. Angle is presenting a talk on PD-L1 status in circulating tumour cells isolated by its Parsortix diagnostics technology from blood samples of lung cancer patients. Data produced has high analytical sensitivity and specificity and suggests that this technology can be used for personalised treatment of lung cancer patients. Additionally, there is a report on progress of developing a system to classify HER2 protein expression for breast cancer. This is being developed with BioView. Parsortix-based assays were showcased at the European Association for Cancer Research (EACR) Liquid Biopsies Conference in France.
Delays to defence orders have hit Solid State (SOLI) and profit will be much lower than expected this year. Cavendish has downgraded 2024-25 earnings by 58% to 5.5p/share and next year’s by 48% to 7.9p/share because it is uncertain when the order will come through. The UK government has paused spending on a major defence order ahead of a strategic defence review next summer. The dividend could be maintained at 4.3p/share.
Touch sensors manufacturer Zytronic (ZYT) has completed a strategic review and decided to sell assets and return any cash to shareholders. This might involve the sale of the trading subsidiary Zytronic Displays or its assets. Net cash was £3.3m at13 November. The share price
Power generator OPG Power Ventures (OPG) is being investigated by the Indian authorities for alleged non-compliance relating to the Foreign Exchange Management Act. This regulates foreign exchange transactions. Management believes that everything they have done have been in compliance with laws. The power plants continue to operate.
MAIN MARKET
Ground engineering and piling business Keller (KLR) is trading in line with expectations, but it is cautious about European operations. Competitive pricing means that profitability has been hit. There is still one loss making problem contract. North America and Asia Pacific remain strong regions in most sectors.
Critical Metals (CRTM) says copper ore off-taker OM Metals has sent the first truck load of ore to its processing plant. Critical Metals has further extended the repayment of its loan facility. A $646,000 payment has ben deferred to 20 December and could be further extended until the end of January. Cost savings, including a voluntary salary deferrals of 25% for executives, are being undertaken.
Like-for-like foundry sales volumes were one-fifth lower at Castings (CGS) as European heavy truck sales declined. Interim revenues also fell by one-fifth to £89.2m and cost savings are not fully showing through so pre-tax profit was three-fifths down at £4.1m. The interim dividend is 2% ahead at 4.21p/share. There are opportunities in off-highway, wind energy and infrastructure and that would reduce reliance on heavy truck demand. The assets acquired from Chamberlin are profitable.
Andrew Hore
Quoted Micro 29 August 2022
AQUIS STOCK EXCHANGE
Thixotropic gels manufacturer Unigel Group (UNX) joined the Access segment of the Aquis Stock Exchange. The gels are used in the fibre optic industry. There was £800,000 raised at 64p a share. The share price ended the day at 65p.
Aquis Stock Exchange has issued a disciplinary notice to Love Hemp Group (LIFE) after omitting information in a fundraising announcement in February. It was not stated that not all the cash had been received and one investor did not pay the £1.2m it was supposed to for the shares. There was no update until May, thereby creating a false impression of the cash position. The £100,000 fine has been cut to £70,000 for early settlement. Trading in the shares remains suspended following the resignation of Peterhouse as corporate adviser. The board has been strengthened. A new corporate adviser is required for trading to recommence.
Hydrogen Utopia International (LON: HUI) is planning to enter a 50/50 joint venture with AIM-quoted Powerhouse Energy (LON: PHE) to develop a plant using non-recyclable waste plastic to produce hydrogen in Poland. Hydrogen Utopia International will be allowed to recover its costs of €250,000 with a €250,000 premium. This agreement is similar to the one between the companies for the proposed Tipperary plant, which will be built on a site leased by Trifol Resources. DXSP
British Honey Corporation (BHC) hopes to report its 2021 results before the end of September. This year’s trading has been tougher and the 2022 figures will be worse than expected with revenues of £6m.
Wishbone Gold (WSBN) has secured an option to acquire the Anketell gold copper project, which is north of the company’s Red Setter project in Western Australia. The option payment is £25,000. The consideration would be £50,000 in cash and 2.17 million shares at 14.75p each.
BWA Group (BWAP) has been granted a three-year licence for Nkoteng 2 at the Nkoteng heavy mineral sands project in Cameroon. This covers an additional 60km of strike length.
Evrima (EVA) has increased its holding in Eastport Ventures to 6.85%. Eastport also owns shares in another investee company, Premium Nickel, which has confirmed that saleable nickel and copper concentrates can be produced at the Selkirk mine in Botswana.
Capital for Colleagues (CFCP) has received an initial payment of £92,629 for the disposal of the stake in The Homebuilding Centre. This is higher than the £50,000 minimum payment because of strong trading.
Watchstone Group (WTG) had cash of £10.2m and £1.8m in escrow on 19 August.
Quetzal Capital (QTZ) says investee company Tap Global Ltd has launched a Crypto-as-a-Service product. This will enable regulated banks and financial service companies to offer cryptocurrency trading services to clients.
Diesel emission reduction additives supplier SulNOx Group (SNOX) increased revenues from £18,000 to £34,000 in the year to March 2022. There was £1.07m in cash in the balance sheet, although this fell to £604,000 by the end of June 2022.
Goodbody Health Inc has become Goodbody Health Ltd (GDBY) following the redomicile to Guernsey. Trading commenced in the new entity on Wednesday.
AIM
Rail and events software and services provider Tracsis (LON: TRCS) beat forecasts in the year to July 2022. finnCap has upgraded its earnings forecast from 33.2p a share to 34.5p a share. There was a sharp recovery in the events and traffic data business, while the other businesses continue to grow. Implementations of Tracsis software continue despite the rail strikes. The full year results will be published on 9 November.
Alumasc (ALU) is selling the poorly performing solar shading manufacturer and installer Levolux to Talrus Ltd, which is owned by Rcapital, for £1. Levolux has around £1.4m in cash and that is part of the disposal. There is deferred consideration of £1m which will be paid out of the proceeds of a disposal of the Levolux business. The impairment charge for Levolux will be £14.9m, while the £2m operating loss will be reported as a discontinued activity.
Corporate finance adviser Marechale Capital (MAC) increased pre-tax profit from £246,000 to £2.56m in the year to April 2022. That was mainly down to an increase in the value of investments and warrants. Fundraisings by Future Biogas, which postponed an AIM flotation, Chestnut Group and the Burgh Island Hotel were all at a premium to Marechale’s existing holdings. There was a cash outflow from operating activities of £131,000. NAV increased from £686,000 to £3.63m, or 3.8p a share.
First Property (FPO) has sold a property in Tureni, Romania for £3.05m, which is a book profit of £981,000. That leaves one fully owned property in Romania.
Rockwood Strategic (RKW) is planning to move to the Main Market in order to improve the tax efficiency by converting into an investment trust. The prospectus should be published by 6 September and the AIM cancellation could happen before the end of September.
Aquaculture products supplier Benchmark (BMK) increased third quarter revenues by 28% to £36.3m with a particularly strong performance by the genetics division. Sales of salmon eggs were 39% higher and shrimp sales were 164% ahead from a lower base. Investment in additional capacity in Iceland and the US is beginning to pay off. In the nine months to September 2022, underlying operating profit fell from £7.3m to £5.6m.
Australia-focused explorer Artemis Resources Ltd (ARV) says no significant nickel or copper mineralisation was shown from drilling samples at the Osborne nickel prospect. The approach to exploration will be reassessed. Two drill holes at its Greater Carlow project have not shown any sign of mineralisation, but that was not a surprise. A mineral resource estimate for Greater Carlow is expected in September and new targets have been identified. Two drill holes have been completed at the Apollo target at Paterson Central and it has re-entered a previous hole to drill deeper. This is near to the Greatland Gold (GGP) Havieron project.
Greatland Gold is raising £29.7m at 8.2p a share following Newcrest Mining’s decision not to take up the option to buy a further 5% stake in the Havieron gold project in Western Australia. Greatland Gold retains a 30% stake in Havieron. The price for the 5% stake had been set at $60m and much of that cash was earmarked to pay off loans from Newcrest Mining. The money raised will help to fund Greatland Gold’s share of further drilling and development expenses at Havieron, plus providing cash for other exploration activities in the Paterson region.
Alba Mineral Resources (LON: ALBA) has agreed to acquire the 10% minority interest in the company that owns the Clogau gold mine and plans to dewater the Llechfraith mine shaft. It is also buying back a 3% net smelter return royalty leaving a 1% net smelter royalty and £72,000 of loans held by the vendor. The total cost is £400,000 in the form of 200 million Alba shares at 0.2p each, which was a 25% premium to the closing price. There are also 81.9 million warrants exercisable at 0.4p each.
Haydale Graphene Industries (HAYD) is raising £5m at 2p a share and there is going to be an open offer at the same price that could raise up to £510,000.
Education provider Malvern International (MLVN) is benefiting from a recovery in student numbers following the easing of Covid restrictions. Interim revenues were 60% higher at £2.3m. Pre-booked and delivered revenues mean that full year revenues should be at least £5.3m.
Great Western Mining Corporation (GWMO) assay results for drilling at four prospects in Nevada. Results from the 2022 drill programme will start arriving in September. The drilling was completed under budget.
MAIN MARKET
Motor dealer Lookers (LOOK) generated a 4% increase in interim revenues to £2.23bn with lower used vehicle volumes offset by higher selling prices. Underlying pre-tax profit dipped from £50m to £47.2m, although that was higher than expected. Also, there was £12.7m of government support in the previous period. Full year pre-tax profit is expected to fall from £90.7m to £67m.
Oxford Cannabinoid Technologies (OCTP) is delaying the phase I trial of OCT130401 and concentrating on its first programme, OCT461201, where a phase I trial will start in January. This means that cash will last until the fourth quarter of 2023. There should be initial results from the phase I trial before then. Karen Lowe is stepping down as finance director.
BATM Advanced Communications (BVC) reported a decline in profit in the first half of 2022 after a sharp fall in diagnostics revenues because of Covid-boosted comparisons. Networking division revenues increased. Ongoing group revenues fell from £64.2m to £57.5m.
Packaging manufacturer and distributor Macfarlane Group (MACF) increased interim revenues by 14% to £139.2m, while pre-tax profit edged up from £8.59m to £8.86m. The growth in profit came from the manufacturing division. The interim dividend is 3% higher at 0.9p a share. Net debt is £9.7m.
Andrew Hore
Quoted Micro 4 April 2022
AQUIS STOCK EXCHANGE
In 2021, Good Energy (GOOD) revenues were 12% higher at £146m, while underlying pre-tax profit recovered from £500,000 to £2.6m. Since the year end the sale of the generating assets has boosted the balance sheet making it debt free. A final dividend of 1.8p a share takes the total for the year to 2.55p a share. Investment in billing platforms will help improve efficiency. The Zap-Map EV charging services business remains a focus of growth, along with an accelerating smart meter roll out. Even though trading conditions are tough, Good Energy could improve its profit this year.
Brewer Shepherd Neame (SHEP) is returned to profit at the interim stage, and it is paying an interim dividend of 3.5p a share. In the six months to December 2021, revenues increased by 55% to £78.7m, which is similar to the six months to December 2019. A loss of £7.2m was turned into a profit of £5.4m. Net debt is £82.4m after paying delayed VAT liabilities. Net assets are 1176p a share, excluding property revaluations. In the 13 weeks to 26 March 2022, like-for-like managed pub sales are 10% ahead, but it is a weak comparative. Costs are increasing and Peel Hunt has trimmed its full year pre-tax profit forecast from £8.6m to £7.2m.
ProBiotix Health (PBX) started trading on the Access segment having raised £2.5m at 21p a share. The share price ended the week at 21.5p, valuing the company at £26.2m. The company has been spun-off by OptiBiotix Health (OPTI), which retains a 44% stake after issuing ProBiotix shares to its own shareholders. They will not be able to deal in the shares for nine months. The core product developed by ProBiotix is LP-LDL ®. Studies have shown that the product can reduce cholesterol levels.
AIM-quoted European equities exchange operator Aquis Exchange (AQX) joined the Apex segment of the Aquis Stock Exchange on the same day as it reported full year figures. In 2021, revenues were 42% ahead at £16.2m, while pre-tax profit jumped from £470,000 to £3.22m. Net cash is £14.1m, after spending £1.1m on buying back shares. The company’s market share of pan-European trading improved from 4.7% to 5.2% and the purchase of the non-displayed matching pool of UBS could add a further 0.6% of market share. Liberum forecasts further growth in pre-tax profit to £4.2m this year.
Oberon Investments (OBE) is raising £3.4m at 6p a share in a significantly oversubscribed placing. The broker and investment manager wants to spend the cash on expanding its corporate finance and wealth management operations.
Pharma C Investments (PCIL) invested £100,000 in AIM-quoted Celadon Pharmaceuticals (CEL), formerly Summerway Capital, at 165p a share. Trading started on 28 March and the share price subsequently fell to 130p. Vertigrow, which was established in 2018, reversed into Celadon and it grows indoor hydroponic, high THC cannabis, which will be used for medicines to treat chronic pain. A Home Office licence to legally grow medicinal cannabis was received in July 2021 and it has been renewed until January 2023.
KR1 (KR1) has invested $1.5m in Subspace Labs Inc and it will receive a yet-to-be determined number of tokens. Subspace Network is an eco-friendly blockchain that enables scalable chain storage and computing.
Gunsynd (GUN) owns 1.25 million shares in Media Tech SPAC, which is acquiring Scandinavia-based Drylab A/S, which has developed a subscription-based film and TV production platform. The technology allows reviewing and sharing of filmed takes in real-time, uploads those filmed takes to a cloud-based platform and saves time and costs. The service is designed to work without internet access.
Vulcan Industries (VULC) has sold M and G Olympic Products, which manufactures architectural metalwork, for £1. This is part of refocusing on fabrication businesses.
Cadence minerals (KDNC) has agreed to sell its 31.5% stake in Lithium Technologies and Lithium Supplies in return for £3.72m.
The attempt to remove the chairman and the other resolution put forward at a requisitioned general meeting of Love Hemp (LIFE) were heavily defeated.
Pioneer Holdings Inc (PNER) has acquired Crowdform, which creates apps and websites for brands and start-ups.
Trading in Hot Rocks Investments (HRIP) shares was restored after it reported 2020-21 results and interims to September 2021. There was cash of £93,000 and net assets were £788,000 at the end of September 2021.
Tectonic Gold (TTAU) had £396,000 in the bank at the end of 2021 and management says that it is well funded even though there have been delays to exploration.
Lombard Capital (LCAP) had net liabilities of £2.29m at the end of 2021. The directors are trying to refinance the company.
Hydrogen Future Industries (HFI) has incorporated a subsidiary to develop wind and water-based hydrogen production systems.
Evrima (EVA) has replaced corporate adviser Keith Bayley Rogers with Novum Securities.
Kasei Holdings (KASH) says that its chair Jane Thomason Abigail subscribed £150,000 for new shares at 20p each.
AIM
Digital payments business Boku (BOKU) improved its underlying pre-tax profit from $8.8m to $11.8m in 2021. Longer-term, eWallet activity will help to accelerate growth. Monthly average cash balances are running at $50.8m. Boku will be hit by the loss of Russian revenues that were likely to be around $1.5m.
NWF (NWF) says that its fuels business is making a profit of 2p a litre, compared with 1p a litre under normal circumstances. This will boost cash flow, but it is not likely to be repeatable. Full year profit will be much better than expected.
Artisanal Spirits (ART) achieved strong growth in the UK, China and the US last year. Member lifetime value increased from £932 to £1,445, helped by retention rates improving to 77%. The investment in casks of whisky is paying off with the value of the stocks increasing by 26%. Current year revenues are growing by 30%.
EKF Diagnostics (EKF) increased 2021 revenues by 25% to £81.8m. Even stripping out one-off Covid business, the growth was 14%. Pre-tax profit improved from £15.4m to £21.4m. Net cash was £19.6m at the end of 2021, although that was prior to an additional investment in Verici Dx (VRCI). Some of the cash pile is being invested in expanding the fermentation capacity in Indiana. There are plans to buy back up to nine million shares.
Employee benefits services and insurance provider Personal Group (LSE: PGH) beat expectations with 2021 even though pre-tax profit declined from £8.8m to £4.7m as the effects of the original lockdown showed through in the figures. There will also be a delay in the recovery coming through in better profit. The total dividend was reduced from 18.4p a share to 10.6p a share. Net cash is £20.3m.
Brand Architekts (BAR) is making a recommended bid for fully listed InnovaDerma (IDP), which has regularly disappointed investors. The offer is 7p in cash and 0.3818 of a Brand Architekts share for each InnovaDerma share, which values the skincare company at £13.6m. Brand Architekts has a strong balance sheet and will be able to improve the marketing for the combined group’s products.
Windward (WNWD), which supplies AI-based software for real-time marine and shipping information, doubled its customer base last year. There is an increased need for information to stop breaches of sanctions following the Russian invasion of Ukraine, as well as the ongoing requirement to track sea cargos. Windward is loss-making, but revenues should build up significantly as marine compliance requirements become more stringent. Net cash is $39m and this will provide the funds for Windward to achieve its growth forecasts.
SIPPs admin services provider Curtis Banks (CBP) improved pre-tax profit from £13.4m to £14m in 2021. The growth was held back by delays in technology projects. The dividend is maintained at 9p a share. This was achieved despite a decline in interest income. The higher interest rates will not make a significant difference until 2023. Investment in systems will improve efficiency.
Construction and building software supplier Eleco (ELCO) grew revenues from £25.2m to £27.3m, while pre-tax profit improved from £4.9m to £5.3m. Eleco is transitioning to a SaaS-based model and that will hold back short-term revenues growth. Eleco increased its full year dividend from 0.4p a share to 0.6p a share.
Great Western Mining (GWMO) has completed the road to its Mineral Jackpot properties in Nevada and that will help it to exploit spoil heaps. There are also plans to drill five shallow exploration holes in the area.
MAIN MARKET
Repair and maintenance services provider Mears (MER) reported a 2021 pre-tax profit of £25.6m on revenues of £878m as local authority repair and maintenance activity returned to normal levels. Mears made a loss in 2020. The order book is worth £2.4bn.
Beacon Rise Holdings (BRS) joined the standard list with nine shareholders owning most of the shares. Prior to flotation £1.07m was raised at 100p a share. The current bid/offer spread is 100p/400p. Beacon Rise Holdings is seeking acquisitions involved in primary and secondary related education technology. This could be software or hardware that facilitates active learning. Pro forma net assets equals the cash of £744,000.
Rockpool Acquisitions (ROC) has terminated its proposed acquisition of Greenview Gas. Another party will acquire the business. Rockpool has received £1.2m from Greenview, which is a small premium on the loan provided plus interest.
Telecoms services provider Toople (TOOP) says first quarter revenues are 9% ahead of the previous fourth quarter, while gross profit is 17% higher.
Andrew Hore
Andrew Hore – Quoted Micro 17 May 2021
AQUIS STOCK EXCHANGE
United Win Asia has invested £3.15m in Samarkand (SMK) at 115p a share, which is the same as the original placing price but well below the market price. United Win Asia is part of a logistics group and this fits well with Samarkand’s ecommerce platform.
Clarify Pharma plans to raise £5m at 3p a share, which would value the life sciences company at £10.5m. The focus is psychedelic-based substances that can be used to treat PTSD, Alzheimer’s and depression. Investments will be identified in the UK and Canada. The board is dominated by the same team, including Michael Edwards, that floated decentralised finance (DeFi) focused investment company Dispersion Holdings (DEFI) and NFT Investments (NFT), which is investing in a portfolio of non-fungible tokens (NFTs).
Michael Edwards is also chairman of Pioneer Media Inc. This is a company that has floated on the Canadian Stock Exchange and plans to gain a quote on Aquis. Pioneer is seeking investments in eSports and mobile gaming. The expected admission date is 25 May.
Pharma C Investments is an early-stage investor in the medical cannabis sector. The focus will be on markets that already have legislation and regulations. The plan is to raise £1m and the expected admission date is 26 May.
Greencare Capital (GRE) has appointed Richard Tonthat as chief executive. The cannabis-focused investment company recently made its first two investments after its original acquisition fell through. Richard Tonthat has worked at Grant Thornton and British American Tobacco, when it made a large cannabis acquisition in Canada.
ASX-listed Pacific Nickel has completed the acquisition of 80% of Kolosori Nickel and Gunsynd (GUN) has received 682,790 Pacific Nickel shares at 8 cents each for its stake. The current Pacific Nickel shareholding is 1.95 million shares. There will be deferred consideration if a mining lease is granted, and the mineral resource is confirmed. Gunsynd could receive a further 1.14 million shares if this is achieved.
Eight Capital Partners (ECP) is acquiring corporate finance adviser Innovative Finance Srl for an initial €2.45m with a further €2.45m payable depending on performance over three years. Eight Capital Partners previously had an option to acquire a 60% stake. Concreta Srl will own 9.9% of Eight Capital Partners and chairman Dominic White will own 29.9% – he is also loaning the company €1.1m.
Cadence Minerals (KDNC) says that a second batch of iron ore has been shipped from stockpiles at the Amapa project in Brazil. The cash will be used to pay creditors, including ex-employees. The remaining creditors need to be paid before Cadence acquires a 20% stake in Amapa. A further investment of $3.5m would take the stake to 27%.
R Oldfield has been buying shares in Shepherd Neame (SHEP). He bought 6,356 shares at 1032p each, a further 2,500 shares at 1038p each and 16,144 shares at 1035p each.
Incanthera (INC) is presenting at the Shares and AJ Bell investor evening webinar on 19 May.
Vulcan Industries (VULC) has raised £70,000 at 1.5p a share. Vulcan subsidiary Orca Doors is gaining orders, which cover six months of capacity. Ananda Investments (ANA) has raised £15,000 from the exercising of warrants at 0.45p a share.
EPE Special Opportunities Ltd (ESO) had a NAV of 495.69p a share at the end of April 2021.
AIM
Motor dealer Vertu Motors (VTU) performed In the year to February 2021, revenues fell from £3.1bn to £2.5bn, while underlying pre-tax profit improved from £23m to £24.6m. Net cash, excluding leases and vehicle stocking loans, was £1.4m at the end of February 2021. The net tangible asset value is 50.2p a share. At the beginning of May, CIP Merchant Capital (CIP) bought 1.55 million Vertu Motors shares at just over 40.3p each.
Business restructuring company Begbies Traynor (LSE: BEG) has acquired Midlands-based MAF Property, which is a finance broker. The deal could cost up to £11.75m, with £3m in cash and shares upfront and the rest depending on profit growth. The pre-tax profit forecast for the year to April 2022 has been raised from £16.5m to £17m.
Nightcap (NGHT) has raised £10m at 23p a share and strong demand meant that existing shareholders Raymond Blanc and David Moore sold part of their stakes. The original plan was to raise £4m.
e-Therapeutics (ETX) has raised £22.5m, including £920,000 via Primary Bid, at 24p a share. The cash will be used to expand the company’s drug discovery and development operations. There are plans to complete a first in human clinical study for one RNAi asset and advance two or three other RNAi therapeutic programmes through preclinical development.
Great Western Mining (GWMO) has completed an initial six-hole drilling programme at the Trafalgar Hill project in Nevada. All six holes intercepted intercepted the main shallow structure. In the next few weeks there will be further drilling and more analysis and news about these drilling results.
Gaming Realms (GMR) has extended its SLINGO agreement with Scientific Games. The four-year licensing deal includes the opportunity to launch SLINGO digital lottery games.
Trellus Health has the rights to technology that can be used to manage irritable bowel syndrome. It can reduce unplanned hospital visits by 85%. The US-based company expects to join AIM on 28 May.
STM (STM) has sold its Jersey trust and company services business for net cash of at least £1.4m. That reduces the 2021 profit forecast by £100,000 to £2.5m.
Dekel Agri-Vision (DKL) says April crude palm oil production was lower against strong comparatives, but that was offset by higher prices. Arden still expects a move into profit this year – €600,000 is forecast.
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Medica Group (MGP) reported a one-fifth reduction in full year revenues to £36.8m. The lack of elective surgery meant that demand for teleradiology services was reduced. However, demand for emergency services slightly increased. There was an initial contribution from the Irish business bought last year. The 2020 underlying pre-tax profit fell from £11m to £4.74m. The US business was acquired this year and an Australian joint venture has been launched.
LED lighting and wiring accessories supplier Luceco (LUCE) expects interim operating profit to double to £18m. Operating margins are being maintained even though costs of some components are increasing. Net debt should remain at around £18.3m.
Haysmacintyre and a partner have been reprimanded and fined for its audit of the Associated British Engineering (ASBE) accounts for 2017-18. This was not undertaken in the appropriate manner.
Cizzle Biotechnology (CIZ) has reversed into standard list shell Bould Opportunities. Cizzle is is developing a test that could make diagnosing lung cancer more accurate by preventing false positives. A placing raised £2.2m at 10p a share. Pro forma cash is £1.89m, which is slightly higher than the NAV. The cash will be used to make progress towards gaining CE marking for the biomarker test.
Andrew Hore