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Quoted Micro 30 October 2023
AQUIS STOCK EXCHANGE
Natural language processing company Cykel AI (CYK) joined the Aquis Stock Exchange on Wednesday. It raised £1m at 3p/share and the shares ended the week at 10.25p. There was initially significant buying of the shares, but trading levels dwindled over the week so there was only one sale of 100,000 shares at 10p each on Friday.
Healthcare provider One Health Group (OHGR) generated 12% higher revenues of more than £11m in the first half. There was £3.6m in the bank at the end of September 2023. There is additional surgical capacity, and two new contracts were awarded in the first half. A new surgical hub could open in 2025. The second half is normally stronger.
Valereum (VLRM) says that US funding it secured in August is no longer available. The talks with the Gibraltar Financial Services Commission concerning the purchase of the Gibraltar Stock Exchange are dragging on. Richard Poulden, Jack Sun, Patrick Young and Alan Gravett have resigned from the board. James Formolli, who has links with Gibraltar, has been appointed chairman. Patrick Lyle Young has rejoined the board as chief executive. These changes may make it easier to gain regulatory clearance for the acquisition.
Gunsynd (GUN) investee company Omega Oil and Gas estimates maiden gross 2C contingent resources of 1.73 trillion cubic feet of gas in its area in Queensland’s Taroom Trough. The next phase of exploration includes a horizontal well. The $21m raised in August will finance this next stage of exploration.
Vulcan Industries (VULC) has sold 49.9% of Lithium battery storage project developer Forepower Lincoln (250) Ltd for £1.5m, which is payable on the sale of the project or on the fifth anniversary of the agreement. The buyer will loan £500,000 and this will be offset against the consideration when it is due. This will be drawn down as the project progresses.
Ananda Developments (ANA) made an interim loss of £990,000. There was cash of nearly £12,000 at the end of July 2023. Since the end of the period, operations at the cannabis cultivation facility were paused to reduce cash burn.
Cadence Minerals (KDNC) reported a reduction in loss from £5.05m to £1.95m. Net cash was £580,000 at the end of June 2023, while NAV was £19.5m.
Cooks Coffee (COOK) has appointed RSM as administrator to its Triple Two coffee shop franchise business. There are currently eleven stores, which are trading poorly. The Esquires chain is trading well and will not be affected.
SulNOx Group (SNOX) says that fuel savings of more than 5% have been verified for seagoing vessels with a two-stroke engine when fuel conditioner SulNOxEco. This will help to increase interest from shipping companies.
Arbuthnot Banking Group (ARBB) non-exec Jayne Almond has acquired 3,000 shares at 895p each and her husband bought 5,617 shares at 890p each.
AIM
After the market closed on Friday evening, SafeStyle (SFE) said that it intends to appoint administrators to three subsidiaries. Potential buyers of the replacement windows operations have withdrawn their interest and management already revealed it would not be able to raise additional finance. This means there is unlikely to be anything left for shareholders.
Fire Angel Safety Technology (FA.) has agreed a 7.4p/share bid from fire safety products manufacturer Siterwell Electronics, which already owns 17.5%. The share price has not been at that level for six months. The offer values FireAngel Safety Technology at £27.7m.
Mining investment company Starvest (SVE) plans to cancel the AIM quotation and commence a voluntary liquidation. This would involve the distribution of stakes in Greatland Gold (GGP) and Ariana Resources (AAU) to shareholders, while the other stakes will be sold. The share price improved by 77.8% to 8p, valuing Starvest at £4.7m. This is still a discount to the March 2023 NAV of £6.75m, although for one the Ariana Resources share price has fallen since then. Shareholder approval will be sought on 21 November and the AIM cancelation could happen on 29 November.
Northern Bear (NTBR) intends to launch a tender offer to buy up to five million shares (26.7% of share capital) at 62p each. The building services provider will ask for authorisation at a general meeting on 15 November and the tender will be funded by the company’s cash and an additional £1m of debt. This will be earnings enhancing. Some shareholders say they will not tender shares, which means that other shareholders can tender at least 35.6% of their holding. Shares have to be tendered by 22 November. Jeff Baryshnik will retire as chairman after the general meeting. Trading is ahead of the previous year and a trading update will be published in the next few days.
Angling Direct (ANG) improved UK sales and European online sales recovered. The fishing tackle retailer has plans to open its first store in Europe. Interim revenues rose 11% to £43.3m, while pre-tax profit recovered from £1.1m to £1.7m. Like-for-like store sales were 4.9% ahead. Net cash reached £17.6m at the end of July 2023, helped by a reduction in working capital. August and September sales were 14% higher than the same time last year, although the comparative was a weak period. Market share is still growing.
Argentex (AGFX) has appointed Jim Ormonde as interim chief executive. He replaces previous chief executive Harry Adams, who is the second largest shareholder with 12.3%. A strategic review has identified areas of the payments sector to focus on. Jim Ormonde was boss of Cardsave, which was bought by WorldPay, and he has been a consultant to Argentex. Current trading is in line with expectations even though activity levels have been lower.
Security products supplier Thruvision (THRU) has raised £3.2m at 23.5p/share. The money has been invested by Pentland Capital, which has taken a 10% stake, and existing shareholders. The cash will be invested in sales and marketing. Earlier this month, Thruvision revealed that it had not received the expected order from US Customs and Border Protection due to budgetary problems. Forecast revenues for 2023-24 were slashed by two-fifths to £8.1m – £3.5m has been generated in the first half. A full year loss of £3.2m is expected.
Bradda Head Lithium (BHL) interims show a $6.24m cash outflow leaving $1.5m in the bank at the end of August 2023. Since the year end, an updated mineral resource showing contained metal of more than one million tonnes triggered a Lithium Royalty Company payment of $2.5m to Bradda Head Lithium, which was received in October.
Fourth quarter trading at The Mission Group (TMG) has got tougher with clients spending less. This follows a relatively upbeat trading statement at the time of the interims. The cost base was raised in anticipation of additional demand and cost cutting will not be done until next year. Canaccord Genuity slashed its pre-tax profit forecast from £7.9m to £3.1m and net debt is set to rise to £24m, which contravenes debt limits. The interim dividend is cancelled. Interest will be covered just over two times.
Sustainable fuels technology developer Velocys (VLS) has launched its new technology facility in Ohio. Velocys contributed $2m of the $10m capital investment with the rest invested by a subsidiary of The Pagura Company. The equipment will be fully up and running by mid-2024. There should be enough capacity for projected orders stretching out to 2028.
Piling contractor Van Elle (VANL) has Rock and Alluvium for an initial £1.8m and agreed a new five-year trading deal with Galliford Try, which could add more than £10m/year to revenues. This increases the group’s presence in the residential market in Greater London.
MAIN MARKET
BATM Advanced Communications (BVC) investee company ADOR Diagnostics has secured funding of $7.5m and BATM is providing $3.5m of this cash. This is payable in two tranches, one immediately and the other after the achievement of milestones over the next six months.
First Tin (1SN) has published a definitive feasibility study (DFS) update for the Taronga project in Australia. The DFS should be completed in the first quarter of next year. It is already clear that the resource is significantly larger than previously estimated due to additional mineralisation and lower cut-off grade and that means processing capacity will need to be larger. The additional capital investment should improve recovery rates.
Cash shell Mining, Minerals and Metals (MMM) has entered into heads of terms with Georgina Energy, which is exploring for helium, hydrogen and hydrocarbon the Amadeus and Officer Basins in Australia. The transaction to acquire Narnia Mauritius Gas will not go ahead until the renewal of the company’s licences.
Intuitive Investments Group (IIG), which recently moved from AIM to the Specialist Fund Segment, is issuing 1.91 billion shares to acquire Hui10, a Chinese company that owns 33% of Beijing Huishi Dehua IT, which has a digital payment platform for the Chinese lottery and 60% of Lucky World, which has developed a platform that enables China’s lottery shops to access a wider range of consumer goods. The businesses are losing money. Hui10 will not be consolidated in the company’s figures. Investments Group currently has 86.9 million shares currently in issue and, at 11p/share, it is valued at £9.6m. A ten-for-one share consolidation is planned. There is already permission to issue more shares. Chief executive Rob Naylor bought 100,000 shares at 9.5p each.
BSF Enterprise (BSFA) has formed a separate subsidiary called Kerato to develop lab-grown corneas. This company can focus on advancing clinical trials.
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
Andrew Hore – Quoted Micro 7 December 2020
AQUIS STOCK EXCHANGE
Newbury Racecourse (NYR) has completed the sale of 1.2 acres of land on the northern perimeter of the racecourse for £1.5m. That is equal to book value.
NQ Minerals (NQMI) is able to draw down from its recently arranged $55m loan facility between its subsidiary Hellyer Gold Mines with ING. The cash is being used to pay off previous debt.
Wheelsure Holdings (WHLP) improved revenues from £178,000 to £235,000 in the year to August 2020, but there remain potential delays to sales. That is particularly true of Transport for London because of its financial problems. The loss was slightly reduced from £224,000 to £203,000. Wheelsure has moved from net liabilities to net assets of £7,000.
Four new directors have been appointed to the board of SulNOx (SNOX) following a general meeting and they have replaced the previous directors. Radu Florescu had previously been a director of the company. Shareholders have also given them permission to issue shares.
Trading has recommenced in Altona Energy (ANR) shares after £138,000 was raised at 6.5p a share. Further cash will be required in the next four months. Indications have been received from investors that a move to AIM or the standard list could enable Altona to raise £1m. Due diligence is being completed on the two rare earth acquisition targets in Malawi and Uganda. Christian Taylor-Wilkinson has been appointed chief executive.
Quetzal Capital (WENP) made a pre-tax profit of £276,000 in the year to June 2020. That was due to creditors accepting 7.5p in each £1 they were owed. Business opportunities are being assessed.
Wishbone Gold (WSBN) has applied for a new exploration licence in northern Queensland, which is 15km north west of the Ravenswood gold mine.
IOV Labs Ltd is investing £330,000 in Coinsilium Group (COIN) at 3p a share. One warrant will be issued for each two shares and the exercise price is 4.5p a share. IOV can appoint a director to the board, having increased its stake to 13.9%. Coinsilium says that it has enough cash until January 2022.
BWA (BWAP) reported an interim loss of £2.91m, which reduced net assets to £2.43m. The Cameroon business has marked out two licence areas and the first sampling has been undertaken with the lab results expected. BWA had written off its stake in the Prego prepaid debit card business, but there is a potential takeover by a Canadian listed company.
Belvedere Leisure (BELV) has issued £872,000 of 6.25% secured bonds, September 2025. This takes the number in issue to £979,000.
AIM
Floorcoverings manufacturer Victoria (VCP) produced better than expected interims. Peel Hunt increased its full year pre-tax profit forecast from £9.4m to £28.7m, while earnings are set to improve from 5.6p a share to 17.4p a share. There should be further significant recovery next year, but by then further acquisitions will have been made so the group will be different.
Springfield Properties (SPR) has gained planning approval for its first private rental development in Scotland. It is for 75 family homes at the company’s Bertha Park Village. Springfield will build the homes under a fixed cost contract and hand them to the PRS provider. This provides additional, predictable cash flow.
Online fashion retailer Sosandar (SOS) increased interim revenues by 52% to £4.3m even though marketing spending was reduced. Conversion rates are improving. Sales through John Lewis and Next started in August. The loss was reduced from £2.79m to £1.1m. Marketing has been stepped up and there has been further growth in revenues during the autumn. There was still £4m in the bank at the end of November 2020.
Digital TV software Mirada (MIRA) reported a 5% reduction in interim revenues to $5.5m due to Covid-19 related delays. Allenby forecasts a decline in full year revenues from $13.2m to $11.5m and the loss is expected to increase from $1.42m to $3.26m. Net debt could rise to $8.45m by the end of March 2021. Next year, the loss should be lower and Mirada should be cash generative so net debt would reduce by March 2022.
AssetCo (ASTO) has launched a tender offer for 6.53 million shares at 411p each. That will return £26.9m to shareholders. Following payment from former auditor Grant Thornton, AssetCo should have cash of around £55m.
Tavistock Investments (TAVI) has postponed a general meeting designed to pass a new long-term incentive plan for executive directors Brian Raven and Oliver Cooke. There has been unfavourable feedback from shareholders.
The Property Franchise Group (TPFG) has made a bid approach to fellow residential lettings business Hunters Property (HUNT).
Nucleus Financial (NUC) has received a bid approach from IntegraFin Holdings (IHP) and the offer is likely to be in cash. Aquiline Capital and Allfunds (UK) are also considering offers. Sanlam UK owns 52% of Nucleus.
DBAY Advisers has acquired shares in Telit Communications (TCM) at 194.8p each, so any potential bid will have to be at least at this price.
Invinity Energy Systems (IES) is raising £20.5m via a placing at 175p a share and up to £2m more could be raised through a one-for-64 open offer. The cash will help to scale up production of its vanadium flow batteries.
Pires Investments (PIRI) is subscribing for a 15% stake in decentralised finance company DeTech Studio and it will also be issued four million YOP tokens. YOP is the decentralised finance platform that DeTech is developing. The plan is to make it easier for non-experts to use. The yop token will facilitate engagement with smart contracts on the Ethereum network.
MAIN MARKET
Tirupati Graphite has launched its fundraising ahead of a standard listing on 11 December. It is raising £6m at 45p a share, which would capitalise the company at £33.6m. The cash will be invested in mining and processing of graphite.
Marwyn has launched three new shells on the standard list. Marwyn Acquisition Co I Ltd (MAC1), Marwyn Acquisition Co II Ltd (MAC2) and Marwyn Acquisition Co III Ltd (MAC3) are all seeking acquisition targets in media, technology and healthcare that can take advantage of digitalisation. Directors of past Marwyn shells are investors in the new shells. Each company has issued 700,000 shares at 100p each.
Standard list shell Mining Minerals (MMM) is in discussions with a potential strategic investor.
Andrew Hore