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Quoted Micro 9 May 2022

AQUIS STOCK EXCHANGE

In 2021, Newbury Racecourse (NYR) is paying a special dividend of 89.6p a share. The £3m payment comes after the receipt of the final £10.7m from the sale of housing development land. Newbury Racecourse increased turnover by 75% to £14.8m as racing returned to the course. There is still potential for further recovery this year. Attendances increased from 12,000 to 105,000. The hotel reopened in January 2022. There was a swing from £2.17m loss to an underlying pre-tax profit of £333,000.

Quantum Exponential (QBIT) is investing £406,000 in Aegiq Ltd, a photonics company using quantum technologies in the cybersecurity market. That gives it a 4.06% stake. Helium Special Situations has reduced its stake from 4.57% to 1.52%.

Goodbody Health Inc (GDBY) reported better than expected revenues for 2021. The CBD products and testing company made an underlying loss of £900,000 on revenues of £17.1m. Arden forecasts a £5.1m profit this year.

VSA Capital (VSA) has received a settlement of outstanding fees of £153,000 from client Anglo African Agriculture in the form of 3.82 million shares. This gives VSA a 15.3% stake plus warrants and convertible loan notes.

Gunsynd (GUN) has terminated the disposal of Oyster Oil and Gas to Sajawin.

Clarify Pharma (PSYC) had net cash of £1.3m at the end of April 2022. Investment opportunities in the psychedelics market are being assessed.

Apollon Formularies (APOL) has acquired intellectual property and patents from Aion Therapeutic for £96,000 and 4.35 million shares. It will also pay a royalty fee of 4% on net revenues from products based on these patents. The patents cover potential cancer treatments.

ChallengerX (CXS) has appointed Olivia Edwards as chief executive and Nicholas Lyth as finance director.

Phase 1 assay results from the Monte Muambe project held by Altona Rare Earths (ANR) show significant levels of rare earths.

Coinsilium (COIN) has been appointed as adviser to Silta Finance and entered into an agreement to purchase $75,000 of future SILTA tokens. Silta is building a technology to connect decentralised finance to infrastructure project developers.

Capital for Colleagues (CFCP) has sold its remaining stake in builder’s merchant Merkko Group for £378,000.

Rogue Baron (SHNJ) has received the first UK order for Shinju and Shinju 8-year old whisky.

S-Ventures (SVEN) chairman David Mitchell bought 57,959 shares at 32p each. Chris Akers has increased its stake in Quetzal Capital (QTZ) from 19.1% to 20.1%. John Mahtani reduced his stake from 5.71% to 3.83%.

AIM

Online retailer of building materials CMO Group (CMO) continues to grow on the back of a buoyant market as well as gaining market share. The online share of the sector remains relatively low. The second half growth was not as fast as in the first half. In 2021, revenues grew 46% to £76.3m. There is organic growth supplemented by acquisitions. CMO moved from loss to an underlying pre-tax profit of £1.4m. Net cash was £6m. Following the acquisition of JTM Plumbing Plumbingsuperstore.co.uk is being launched later this year. First quarter trading has continued to be strong with like-for-like growth of 3%.

Neonatal intensive care medical devices supplier Inspiration Healthcare (IHC) increased full year revenues from £37m to £41.1m. Acquisition contributions offset the one-off Covid ventilator revenues in the previous year. Pre-tax profit improved from £3.13m to £3.96m, although earnings fell 12% to 6.1p a share because of the additional shares issued for acquisitions. The company’s order book is strong.

In 2021, targeted digital advertising services provider Dianomi (DNM) revenues grew from £28.4m to £35.8m, even though Asia Pacific revenues fell from £1.72m to £1.18m due to the ASX website stopping having advertising content. Underlying pre-tax profit moved from £2m to £2.9m – share based payment charges and float costs led to a loss being reported – and it is expected to increase to £3.6m this year. The average spend of the top 100 advertisers increased 27% to £280,000 each. Net cash was £10.3m at the end of 2021.

In 2021, Intelligent Ultrasound (IUG) reported revenues 47% higher at £7.6m, mainly from ultrasound simulation products, while the cash outflow from operations was £2.3m. AI revenues remain modest, and it will take time for them to build up. Cenkos upgraded its 2022 revenues forecast from £9m to £10m, but the cash outflow will be similar.

Plastics and packaging supplier Coral Products (CRU) is using some of its cash pile to acquire Film & Foil Solutions, a supplier of flexible packaging film used for food, books, carpets and for cable tapes. The initial payment is £1.35m in cash, plus £750,000 in shares at 15.5p each. There is just over £900,000 that could be payable based on the settlement of a contract dispute and an insurance payment. The acquired business made an underlying profit of £541,000 in 2021.

Energy efficiency as a service provider eEnergy Group (EAAS) has been hit by contract delays. That means that 2021-22 EBITDA could be £3m and not £4.4m as previously expected. A new finance director is being appointed.

Green hydrogen production developer ATOME Energy (ATOM), which was spun out of President Energy (PPC) at the end of 2021, has secured a major 60MW power purchase agreement with ANDE, the national power supplier in Paraguay. Hydrogen production could commence in Paraguay in the first quarter of 2023.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) will report revenues around £15m lower than expected due to overstocking. This will knock £10m off operating profit. Price rises are offsetting the effect of inflation.

Castings (CGS) 2021-22 results will be slightly ahead of expectations. Demand for commercial vehicles remains strong, but there is still uncertainty about the ability produce heavy trucks.

Kendrick Resources (KEN) was formerly AIM-quoted BMR Group, which left AIM in August 2018 after problems with the progress of the Kabwe project in Zambia. Kendrick still has a 11% royalty interest in Kabwe. Kendrick Resources has acquired Northern X Finland and Northern X Scandinavian. In Finland, there is an exploration licence at the Koitelainen project and two licences at the Karhujupukka project. There are two projects in Sweden: the Airijoki project and the Central Sweden project. There is also an option over three projects in Norway.

Gresham Technologies (GHT) has secured a contract with an existing bank customer worth up to £6.3m over a period of five years. The company’s Clareti software will be used across the whole UK business of the bank.

Andrew Hore

Quoted Micro 28 March 2022

AQUIS STOCK EXCHANGE

Arbuthnot Banking (ARBB) returned to profit in 2021 and it is paying a final dividend of 22p a share, having already paid 37p a share for the financial year. Net assets are 1315p a share. Slater Investments has a 7.05% stake.

S-Ventures (SVEN) is acquiring Market Rocket Ltd, which is a digital agency that helps brand owners to sell their products, for an initial £2.25m. There could be further shares issued if performance targets are met. In the year to March 2021, revenues were £500,000 and this year they will be much higher. This is a profitable business.

British Honey Company (BHC) has raised £540,000 after expenses at 80p each. This cash will finance product development, costs related to reducing expenses and fund growth. Mark Jones has been permanently appointed as chief executive. The company is changing its name to Union Distillers.

Vulcan Industries (VULC) is acquiring Aftech, a sheet metal fabrication company, for £1.55m in shares issued at 1.257p a share, plus 24.7 million warrants exercisable at 3p a share. Services provided include laser cutting, bending and forming and the acquired business fits well with existing subsidiaries. In the year to November 2021, Aftech generated revenues of £1.18m and EBITDA of £266,000 and it has debt of £155,000.

AIM-quoted Asimilar (ASLR) plans to join the access segment of Aquis on 4 April. The technology investment company focuses on areas including big data, machine learning and Internet of Things. The corporate adviser is Oberon Capital. Chris Akers has a 6.88% stake and Nigel Wray a 9.43% shareholding. Net assets were £41.5m at the end of September 2021.

VVV Resources (VVV) has signed a conditional agreement to acquire a company that owns the Mitterberg copper project in Austria and a 49% stake in the Shangri La polymetallic project in Western Australia, which takes VVV’s share to 100%.

EPE Special Opportunities (ESO) increased its NAV from 437.6p a share to 455.7p a share in the 12 months to January 2022. However, the Luceco share price has fallen back since then. The Luceco stake was reduced to 22.1% last year. Cash was £27.6m at the end of January.

Capital for Companies (CFCP) had cash balances of £4.19m at the end of February 2022. Net assets were 68.4p a share, following the payment of 1.5p a share dividend on 3 March.

Jason Brewer has joined the board of All Star Minerals (ASMO) and been appointed as chief executive. The acquisition focus has switched to near-term production and revenue generating mining assets.

AQRU (AQRU) has entered a partnership with institutional lending platform owner Maple Finance, which will offer AQRU customers enhanced yields in decentralised finance. Yields could be up to 15%. The offering will be integrated into the AQRU mobile and web-based platform.

Clean Invest Africa (CIA) has obtained a new strategic investor and there could be more to come. Ramin Salsali has invested £302,276 at 0.5p a share to take a 4.67% stake. He believes that the CoalTech technology can help to solve the problem of 33 billion tonnes of toxic coal fines. The technology can also pelletise other materials. Several testing phase projects are at an advanced stage.

AIM

Cyber security software supplier Kape Technologies (KAPE) reported 2021 figures in line with its trading statement with pre-tax profit of $75.2m. This was without any significant contribution from the ExpressVPN acquisition, which was made at the end of the year. Pre-tax profit could more than double to in excess of $150m this year.

Geospatial software provider IQGeo (IQG) beat expectations for 2021 with a much lower loss of £2.7m. Annualised recurring revenues were £8.2m. This year the company should move towards breakeven.

Restaurant operator Tasty (TAST) bounced back into profit last year. In the 52 weeks to 26 December 2021, revenues improved from £24.2m to £34.9m. There was £11m in the bank at the end of 2021 and there are £1.25m of borrowings to offset against this. Even if deferred payments are taken into account, then underlying net cash is still £6.8m. Net assets are £1.9m.

Peel Hunt has upgraded its 2022 forecast for promotional goods platform operator The Pebble Group (PEBB) following the recent 2021 figures. Even so, pre-tax profit is forecast to dip from £10.2m to £9.9m.

Leather processor Pittards (PTD) returned to profit in 2021, but cost increases mean that WH Ireland has reduced its 2022 pre-tax profit forecast. Pre-tax profit is expected to be flat at £500,000. Net assets are 101.9p a share.

AI-enabled wound imaging technology developer Spectral MD (SMD) has made excellent progress since floating last year. Studies of the DeepView system have been positive. The technology enables earlier intervention to help wounds heal quicker than they would have done. A validation study for patients with diabetic foot ulcers is planned and could lead to an application for FDA clearance by the end of the year.

Judges Scientific (JDG) increased pre-tax profit from £13.7m to £18.1m in 2021. Revenues recovered in all geographical regions. The order intake in the first eleven weeks of this year is slightly ahead of the 2021 figure. Net cash is £1.4m and cash generated from operations will mean that the cash pile will build up ahead of any acquisitions.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LSE: LUCE) reported an increase in 2021 underlying pre-tax profit from £28.7m to £37.4m on revenues increasing from £176.2m to £228.2m. The total dividend was raised from 6.2p a share to 8.1p a share and it is more than twice covered by earnings. Luceco has moved into the electric vehicle charging market with the purchase of residential EV charge point supplier Sync EV for £10m – it already had a 20% stake, so the latest outflow is £8m. Annual revenues are £4m.

LeakBot reversed into Spinnaker Acquisitions to form Ondo Insurtech (ONDO). The total cost is £9.8m made up of cash of £1.6m, loan notes of £6.4m and 15 million shares issued at 12p each, including 1.36 million shares issued to Ondo Insurtech chief executive Craig Foster. The LeakBot device uses internet of things technology to identify leaks and stop them before they become more substantial. The core client base is home insurers, which can save money on claims. The share price started at 10.5p and fell to 9p by the end of the week.

RC365 Holding (RCGH) was set up to acquire Hong Kong-focused Regal Crown UK, which has developed payment gateway technology and provides other IT services. The holding company raised £2.02m at 6.2p a share, although £800,000 went on float expenses. The shares ended the week at 7p.

Beacon Rise Holdings (BRS) is the latest standard list shell, and it is highly illiquid with most of the shares owned by nine shareholders. On Sharepad.co.uk there are no trades reported, and the bid/offer spread is 100p/400p. That suggest a mid-price of 250p or a notional 150% gain – although the bid price is equal to the subscription price. Pro forma net assets equal the cash of £744,000.

Andrew Hore

Quoted Micro 7 February 2022

AQUIS STOCK EXCHANGE

SuperSeed Capital Ltd (WWW) raised £2m at 100p a share in order to invest in UK based seed technology companies alongside a related fund. The share price ended the week at 70p (65p/75p). The directors can issue up to 50 million additional shares up until 27 January 2027.

Samarkand Global (SMK) says that trading conditions in China will hamper progress for the rest of this financial year. Covid restrictions have hit trading during the Chinese New Year period. Revenues will be lower than expected and higher investment will increase the expected loss. Recent deals will help Samarkand grow in the longer-term, but there are also forecast reductions for the next two years. VSA no longer expects Samarkand to make a pre-tax profit in 2022-23.

Gunsynd (GUN) investee company Low6 has raised $5m and the sports betting platform company agreed to reverse into a Canadian shell, which will list on the TSX Venture Exchange. Gunsynd has raised A$493,000 (£260,000) from the sale of part of its stake in ASX-listed Charger Metals Ltd. This has raised the initial investment and left Gunsynd holding three million shares.

Capital for Colleagues (CFCP) is selling its A ordinary shares in The Homebuilding Centre back to the company in five tranches. There will be a minimum payment of £50,000 a year. This guarantees Capital for Colleagues will receive its initial investment of £250,000. It still owns 15% of the ordinary shares.

Cadence Minerals (KDNC) has raised £4.2m at 20.5p a share via a placing and subscription. A one-for-20 open offer could raise up to £1.52m. Cadence has to invest $6m in two stages to take a 27% stake in the Amapa iron ore project in Brazil.

CBD products supplier Love Hemp Group (LIFE) is attempting to raise £2m at 1p a share and still plans to move to the Main Market in the first quarter of 2022. There are also plans to swap shares for debt. The company is moving to a new facility consolidating all the activities. Chairman Andrew Male and chief executive Tony Calamita, along with others, will accept their remuneration in shares until June 2022. This reduces the cash outflow.

Property investor Ace Liberty and Stone (ALSP) increased its interim pre-tax profit from £674,000 to £755,000. That is after a loss on disposal of £315,000, although fair value losses reduced from £200,000 to £100,000. Rental income fell 3% to £2.89m. There are £3.05m of assets held for sale. Net assets were 333.1m at the end of October 2021, while net debt is £50.4m.

AQRU (AQRU) has acquired Bison Exchange UAB for €30,000. The acquisition has changed its name to Accru Finance. The company can provide virtual currency exchange and wallet custody operations in Lithuania.

KR1 (KR1) has invested $5m in Starry Night Capital, which is building a portfolio of high-profile non-fungible tokens.

Pioneer Media Holdings (PNER) has completed the acquisition of Bark Ventures, a NFT play-to-earn game developer, for 2.86 million shares.

Western Selection (WESP) has cut its stake in Northbridge Industrial Services (NBI) from 6.21% to 4.74% while Harwood Capital has increased its holding from 20.4% to 22.56%.

Helium Ventures (HEV) had £704,000 in cash at the end of October 2021. That is after a A$400,000 investment in Blue Star Helium, which has exploration projects in North America.

Quantum Exponential (QBIT) is still talking to potential investee companies. It owns 199,993 shares in Arqit Quantum, which has a contract with Virgin Orbit that covers two satellite launches.

Minerals explorer Altona Rare Earths (ANR) plans to continue to develop its rare earths projects Mozambique and Malawi to bankable feasibility study stage, as well as reviewing another acquisition that could be completed by the summer.

BWA Group (BWAP) reports that exploration of the 90%-owned mineral sands projects in Cameroon shows promising returns of rutile, ilmenite, kyanite and zircon over continuous zones.

Valereum (VLRM) has secured a $10m funding facility and this will help to finance the acquisition of the Gibraltar Stock Exchange. It has drawn down $3m which has to be repaid in six months of it can be converted into shares at 36.82p each, which is just below the current share price of 38p. There were also 663,302 warrants issued exercisable at 33.47p.

Clean Invest Africa (CIA) has raised £100,000 at 0.5p a share, with each two shares granted one warrant exercisable at 1.5p each.

AIM

NWF (NWF) reported a jump in interim profit. The fuel and food distribution businesses traded strongly with the former benefiting from concerns about supply shortages last autumn. The feeds business fell into loss, partly due to the loss of a distributor, and there was a £8.4m asset write down. Stripping out that exceptional, underlying pre-tax profit jumped from £2.5m to £4.3m. NWF maintained its interim dividend at 1p a share. Net debt was £7.4m at the end of November 2021. Management is seeking fuel distribution acquisitions to add to the regional network.

Wynnstay Group (WYN) has continued its record of increasing its dividend with an 18th consecutive rise. The total dividend improved from 14.6p a share to 15.5p a share. In the year to October 2021, underlying pre-tax profit was 37% higher at £11.4m. NAV is 525p a share. Wynnstay has increased market share in the feeds market, particularly for dairy and egg production. Agricultural merchanting operations benefited from the improved spending power of farmers. There could be a dip in profit this year.

Piling contractor Van Elle (VANL) improved its interim results and this led to an upgrade in full year forecasts. First half revenues were 57% ahead at £60m and it moved back into profit. Equipment usage levels have risen sharply. Net cash is £3.5m and this is enabling an increase in investment in new equipment. Van Elle had an order book of £39m at the end of 2021. Peel Hunt has increased its full year pre-tax profit forecast from £3m to £3.3m.

Hercules Site Services (HERC) originally raised £4m at 50.5p a share. The existing shareholder also raised £4m. Cirencester-based Hercules Site Services provides construction workers with a wide range of skills including carpenters, bricklayers, ground workers, security and site engineers. It also hires out suction excavators and sometimes there are cross selling opportunities with the labour supply business. More suction excavators are being acquired this year and there should be 20 following this fundraising. Demand for staff for infrastructure projects is increasing.

Electra Private Equity has sold all but one of its core investments, changed its name to Unbound Group (UBG) and moved to AIM. The remaining core business is footwear business Hotter. This is a direct to consumer business, although there are still 23 retail stores, down from 78 three years ago. One of Unbound’s main assets is its customer database. It hopes that selling additional products to that customer base will significantly improve profitability. The first sales of third-party products through the company’s website will be in the second quarter of 2022. The plan is to generate 50% of profit from these products.

Franchised lettings and estate agency business Belvoir Group (BLV) enjoyed a strong end to the year even though the stamp duty holiday ended in the autumn. The 2021 pre-tax profit forecast has been raised from £9.6m to £10m, while the £8.9m forecast for 2022 is maintained at £8.9m.

The Property Franchise Group (TPFG) continued to make strong progress in the fourth quarter despite the ending of the stamp duty holiday. There was a like-for-like increase of 26% in revenues, while the acquisition of Hunters Property meant that they more than doubled to £24.1m.

Freight forwarder and logistics company Xpediator (XPD) achieved 2021 revenues of more than £300m, compared with forecasts of £250m. The pre-tax profit will be much more than £8.5m.

MAIN MARKET

Shipbroker Braemar Shipping Services (BMS) says that 2021-22 revenues will be at least £101m because the strong first half trading has continued into the second six months to February 2022. Operating profit should be at least £9.8m, up from £7.7m. Talks continue about the disposal of Cory Brothers.

Constellation Automotive has taken a 19.9% stake in motor dealer Lookers (LOOK) at the same time as it is completing its takeover of Marshall Motor. This will put Constellation in a strong position if there is a takeover battle for Lookers.

Hiro Metaverse Acquisitions 1 (HMA1) is a SPAC seeking acquisitions in video games, esports and other related areas. It raised £115m at £10 a unit (one share and 0.5 of a warrant).

Andrew Hore

Quoted Micro 31 January 2022

AQUIS STOCK EXCHANGE

NFT Investments (NFT) plans to acquire Pluto Digital Assets. NFT Investments has a non-binding letter of intent relating to the acquisition, which is valued at £96m – based on the issue of 2.4 billion NFT Investments shares at a nominal valuation of 4p each. That is equivalent to 9.3p a share. However, NFT Investments shares have been suspended at 2.475p (2.35p/2.6p). NFT Investments is lending £5m to Pluto, which is a crypto technology and operations company involved in decentralised finance and NFTs.

SuperSeed Capital Ltd (WWW) is set to join Aquis on 31 January, having raised £2m at 100p a share. SuperSeed is a Guernsey-based closed-ended collective investment scheme operating a fund of funds. Investments will primarily be in unquoted funds managed by SuperSeed Ventures. The initial funds will invest as a limited partner of SuperSeed Ventures II LP.

Capital for Colleagues (CFCP) has redeemed its A shares in investee company Bright Ascension and received the book value of £250,000. It still owns ordinary shares in the space software technology company worth £1.75m. Capital for Colleagues NAV was 70.9p a share.

Valereum (VLRM) has accelerated its purchase of the Gibraltar Stock Exchange. An option will be exercised to take the stake from 10% to 50%. Once change of control is allowed, Valereum will take its stake to 90%. The plan is to make the stock exchange one of the world’s first regulated integrated fiat and digital exchanges.

Samarkand Group (SMK) has become a FedEx alliance partner. FedEx clients will be able to use Samarkand’s Nomad ecommerce platform.

MiLOC Group (ML.P) says that one of its subsidiaries has received a claim for £202,000 that it says it is owed.

AIM

Hargreaves Services (HSP) reported a jump in profit thanks to a large contribution from German joint venture HRMS. In the six months to November 2021, revenues fell from £92m to £76.1m partly due to the past sale of the coal stocks to HRMS, although operating profit improved from £868,000 to £1.06m. Pre-tax profit was £10.4m, up from £1.08m, which includes a share of HRMS profit of £9.27m, up from £944,000. The interim dividend has been raised from 2.7p a share to 2.8p a share. Net assets are 462p a share.

Compliance and energy saving services provider Sureserve (SUR) is not paying a dividend even though net cash is £16.5m. The cash will be invested in acquisitions to grow the business. In the year to September 2021, revenues increased by one-quarter to £244m, while pre-tax profit was 77% higher at £13.8m. There was an improved profit contribution from compliance services, particularly the gas business, and energy services contribution recovered.

Acoustic and thermal insulation material manufacturer Autins Group (AUTG) continues to be hampered by electronic component shortages that have slowed car production. Demand from the automotive sector will return when these components are available. In 2020-21, revenues increased 9% to £23.4m. That is better than it appears because there was a £1m plus reduction in short-term PPE revenues. The main growth came in flooring sales.

Real Estate Investors (RLE) says occupancy is 85.75% and this could move to over 86% if expected lettings are secured. The total dividend for 2021 will be at least 3p a share, which is a yield of more than 7.5%.

Digital advertising services provider Dianomi (DNM) grew revenues by more than one-quarter in 2021. Growth is being supplemented by newer elements such as video and lifestyle. Underlying EBITDA will be slightly ahead of expectations and cash increased to £10.3m.

Velocity Composites (VEL) reported a slump in revenues in the year to October 2021, but the supplier of engineered kits for the aerospace sector is experiencing a recovery in demand. Airbus is likely to ramp up production and this could help revenues improve from £9.8m to £11.7m. It will still be loss making at that level. Longer-term, Velocity Composites has its sights on moving into the US aerospace model using the same model as in the UK.

Redx Pharma (REDX) is set to have three phase II clinical trials in process later in 2022. A 2mg dose has been selected for the RXC004 study for colorectal cancer and the other RXC004 study for pancreatic cancer and unselected biliary cancer. Both these studies have already commenced. There is also a phase II study for use of RXC007 as a treatment for idiopathic pulmonary fibrosis (IPF) starting later this year.  These studies mean that costs will increase. There was £29.6m in the bank at the end of September 2021 and a further $19m in milestone payments have been received since then.

M and C Saatchi (SAA) independent directors have rejected a revised offer from AdvancedAdvT (ADVT). The offer was 2.245 AdvancedAdvT shares for each Saatchi share or an alternative of 1.633 AdvancedAdvT shares plus 40p in cash for each share. The alternative is worth less than the all share offer. AdvancedAdvT says that it would move to AIM.

MAIN MARKET

ACP Energy (ACPE) is a standard listed cash shell seeking oil and gas acquisitions. It raised £830,000 at 5p a share. The share price ended the first day at 6.5p (5p/8p). The focus is the upstream oil and gas industry, particularly projects where oil and/or gas has already been discovered, which may be producing assets or ones where there has been some development spending. A minimum market capitalisation of £30m after the first acquisition is being targeted.

Air Partner (AIR) is recommending a 125p a share cash bid by Wheels Up Experience Inc, a provider of on demand private aviation in the US. This values the aviation services provider at £84.8m.

Associated British Engineering (ASBE) did not generate any revenues in the year to September 2021. NAV is 43p a share, including £489,000 in cash, although a Nasdaq investment has subsequently fallen in value. The trading business was sold in 2020.

Sivota (SIV) has entered into a conditional deal to acquire a majority stake in digital marketing platform Apester. There has been $36m invested in the technology and revenues were $9.2m in 2021.

OTHER MARKETS

FOS Holdings (FOS) has switched its listing from Vienna to the Cyprus Emerging Companies Market. FOS has decided to build film studios in Cyprus as part of a joint venture with Dias Media. The company’s subsidiary FOS Film Studios will have a 75% stake in the joint venture. The plan is to build a complex of three film and TV studios, plus additional facilities. There are plans to seek a loan from the EU and the Cyprus government is keen to have film infrastructure on the island. The first studio could be finished by the end of 2022. FOS has three films in early-stage development.

IPSX-listed building owner Mailbox REIT (MBOX) has declared a dividend of 1.75p a share for the fourth quarter of 2021. This is the first step in paying an annual dividend total of 7p a share. Mailbox REIT owns a single building in Birmingham and plans to switch 50,000 square feet of retail space into office accommodation. NAV is 101.9p a share.

Andrew Hore

Quoted Micro 13 December 2021

AQUIS STOCK EXCHANGE

Gibraltar-based RentGuarantor (RGG) provides a rent guarantee service to tenants in the private rental sector. It has joined the Access segment having raised £125,000 at 200p a share. Chief executive Paul Foy has agreed to lend the company £200,000. The business is currently loss-making and has to grow much bigger to get to the point where it is breaking even. The share price ended the week at 210p, although there were no reported trades.

Incathera (INC) continues discussions with two global cosmetics companies about the commercialisation of the Sol skin cancer treatment and started talks with two more. There was £627,000 in the bank at the end of £627,000 and this should last well into next year.

Capital For Colleagues (CFCP) has raised £1.95m at 64p a share and all the directors are participating in the placing. This will provide additional cash for investment. The company had £1.91m in the bank at the end of August 2021. NAV was 69.71p a share at the end of August 2021. A final dividend of 1.5p a share is payable on 3 March.

Lombard Capital (LCAP) lost £228,000 in the quarter to September 2021. The company requires cash, and the Gaskell House waste and recycling property is up for sales. Those proceeds will not be enough to pay off the bonds when payment is due at the end of January 2022. The plan is to try to extend the redemption date.

TECC Capital (TEC) had £1.1m in the bank at the end of September 2021, which is the same as the NAV. Acquisitions are being evaluated.

Clean Invest Africa (CIA) more than halved its interim loss to £553,000. Net liabilities have increased to £3.22m. More cash is required to get the most from the CoalTech technology.

Coinsilium Group Ltd (COIN) says investee company Greengage is withdrawing the application for a Gibraltar banking licence. The plan is to pursue an e-money licence and then apply for a UK bank licence.

KR1 (KR1) has paid the performance fee of £4.15m to Reflexivity Research, which is owned by the executives of KR1. There will be £830,000 paid in cash and the rest in shares. KR1 contributed 350,000 Poldadot in the Astar, formerly Plasm, crowdloan.

Sativa Wellness Inc (SWEL) generated record revenues in one week and that takes revenues for the eleven months to November 2021 to £13.8m. The growth is coming from the testing clinics.

Kevin Soltani has stepped down as chieve executive of Semper Fortis Esports (SEMP) and Keith Harris will be interim executive chairman.

Chris Akers has raised his stake in Quetzal Capital (QTZ) to 17.2%. Burns Singh Tennent-Bhohi increased his stake in Gledhow Investments (GDH) to 8.26%. Scwiar Capital has raised its shareholding in Helium Ventures (HEV) to 10.9%.

EPE Special Opportunities (ESO) had net assets of 511.93p a share at the end of November 2021. Share buybacks are planned and 150,000 shares were acquired at 350p each.

Pioneer Media Inc (PNER) has raised a further C$400,000 at C$1 a unit (one share and one warrant). This takes the total raised to C$1.5m. Vulcan Industries (VULC) has raised £383,000 via placings at 1.6p a share and 1.5p a share.

NFT Investments (NFT) is applying to list on the NEO Exchange in Canada.

AIM

Cloud video editing platform developer Blackbird (BIRD) is raising £8m at 28p a share with chief executive Ian McDonough investing £380,000. This will finance further technology development and add to the technical staff. There will also be cash for market testing advancements and new products. The potential market is enormous, and Blackbird has only just started to exploit new areas.

Windward Ltd (WNWD) has developed AI-based software that enables real-time information about seafaring vessels to be transmitted to their owners. Israel-based Windward raised £26.3m at 155p a share and it ended the week at 204p. The market capitalisation of £166.5m is high considering the progress made. In the six months to June 2021, revenues improved from $7.11m to $8.09m, while the loss jumped from $1.53m to $4.04m. Annual contract value is $19.7m with 99% of revenues from subscriptions.

Ondine Biomedical Inc (OBI) has returned to AIM and raised £22.3m at 53.41p a share. The share price ended the week at 58.5p. Canada-based Ondine develops photodisinfection-based therapies for drug resistant infections. The light-based technology can reduce inflammation and eliminate pathogens. It originally floated on AIM on 9 August 2004, then focused on dental treatments, and left in 2011. In the six months to June 2021, revenues increased from C$213,000 to C$1.98m, while the loss fell from C$7.48m to C$4.58m.

Redx Pharma (REDX) has received another $10m milestone payment from Jazz Pharmaceuticals as the research collaboration reaches the two year mark.

Antimicrobial technology developer Byotrol (LSE: BYOT) fell back into loss following the Covid-19 boosted revenues in the corresponding interim period. Revenues more than halved from £6.7m to £3.2m. There was £1.9m of cash at the end of September 2021.

4GLOBAL (4GBL) provides sports consultancy services to governments and other organisations, as well as subscription data products. It raised £4m at 91p when it joined AIM.

Nexus Infrastructure (NEXS) returned to profit last year as revenues improved from £125.7m to £137m. Civil engineering services provider Tamdown continued to lose money but the eSmart Networks EV charging installation division moved into profit. Management is considering floating eSmart Networks on AIM or bringing in a strategic investor. The money that Nexus would raise can then be used to acquire a business to broaden the range of services offered by the TriConnex utilities connection division.

MAIN MARKET

Sivota (SIV) has found a potential reverse takeover candidate in the form of Israel-based Apester, which has an interactive digital platform. The plan is to pay $12m for a 53.9% stake in Apester. Sivota wants to raise £11m.

Urban Logistics REIT (SHED) has moved from AIM to the Main Market following a £250m fundraising.

MENA Land (MENA) has lost its listing, trading having been suspended since 2 November 2020.

Argo Blockchain (ARB) has resolved its litigation with Celsius by terminating the lease agreement and paying $6.32m to Celsius, which is handing over title to equipment and paying bitcoin to Argo. November revenues were £8.29m with Argo mining 185 bitcoin.

Andrew Hore

Quoted Micro 6 December 2021

AQUIS STOCK EXCHANGE

Hydrogen Future Industries (HFI) was set up to make investments in the hydrogen sector. It raised £2.23m at 10p a share. This will finance the investigation of investment opportunities.

Field Systems Design Holdings (FSD) reported a lump in revenues from £19.8m to £9.98m in the year to May 2021, due to Covid-related problems. This meant that the mechanical and electrical design company moved into loss. The AMP7 water sector investment programme did not start as expected. Other projects have also been delayed, but power generation and transport infrastructure business held up better than the water business, which continues to be delayed. Field Systems Design is also being more selective about energy from waste projects. There was £6m in cash at the end of May 2021.

EPE Special Opportunities (ESO) is investing €10m in the €150m offer by new SPAC EPIC Acquisition Corp, which will be listed on Euronext Amsterdam. The target company would be involved in the consumer sector. EPE has published a prospectus for the issue of up to 20 million zero dividend preference shares at 100p each.

Capital for Colleagues (CFCP) has concluded a partial disposal of its investment in TPS Investment, which distributes pipes and valves. There was an initial £200,000 and £121,000 will be received from a share buyback about the company. That leaves a stake in TPS valued at £510,000.

Aquis Stock Exchange-quoted non-fungible tokens (NFTs) investor NFT Investments (NFT) has swapped its £500,000 investment in Kodoku Studios for a 3% stake in Pioneer Media (PNER) valued at £2m and £125,000 in cash. Mike Edwards is a director of NFT and Pioneer. NFT has invested $1m in NFT Studios Ltd in return for a 20% stake.

Watchstone Group (WTG) has filed a claim against KPMG totalling £13.73m plus interest. This relates to the audit of the 2013 accounts of the company, then known as Quindell. These accounts were restated and the FRC fined and reprimanded KPMG.

Quetzal Capital (QTZ) has invested £1.5m in a convertible loan to TAP Global Ltd and it has an option to acquire 100%. TAP Global is a regulated (by the Gibraltar Financial Services Commission) Crypto-Fiat exchange services provider, which plans to provide a bridge between traditional and crypto assets. TAP Global is already generating revenues.

Altona Rare Earths (ANR) has completed the 2021 drilling programme at the Mozambique Monte Muambe project. Chief executive Christian Taylor-Wilkinson bought 66,560 shares at 11.3p each and he owns 6.3% of the company.

South Africa-based social impact company Inqo Investments Ltd (INQO) raised cash from selling land and this has strengthened the balance sheet. Inqo continues to lose money.

Belvedere Leisure (BL03) has taken control of the 160 acre Barnsoul caravan park, which was near to full capacity during the peak season. Development of the park is continuing ahead of a reopening next spring.

Evrima (EVA) has elected to maintain its project level interest of between 8.86% and 9.26% in the Molopo Farms complex. Kavango Resources (KAV) is exercising its option to take a stake of more than 50%.

Dispersion Holdings (DEFI) has launched a new platform called AQRU, which is a platform that enables institutional investors simple access to crypto yields available in DeFi. Recently purchased Accru Finance developed AQRU, which will not be open to UK-based investors until it is approved by the FCA.

Fuel additives supplier SulNOx Group (SNOX) has signed a distribution agreement with LocoSoco Group.

MiLOC Group Ltd (ML.P) has raised £23,000 at 28.5p a share.

Slater Investments has increased its stake in Arbuthnot Banking (ARBB) from 3.05% to 5.15%.

Rogue Baron (SHNJ) managing director Ryan Dolder bought 32,477 shares at 12p each and 58.827 shares at 9.5p each, taking his stake to 10.5%.

Sativa Wellness (SWEL) has appointed Arden as corporate adviser. It hopes that the broker can help to improve the share price.

AIM

Battery technology developer Gelion (GELN) raised £16m at 145p a share when it joined AIM. The share price has soared to 265p. Australia-based Gelion is a zinc-bromide battery storage technology developer. It is also developing battery additives for use in lithium-ion and lithium-sulfur batteries. Gelion Endure zinc-bromide batteries are suited for harsh environments and the non-flow zinc-bromide technology means that they can be smaller than rival lithium-ion and lead-acid technologies and are recyclable. The cash will be used to accelerate development spending.

Skillcast Group (SKL) provides content and software to companies for their training and compliance requirements. Skillcast has joined AIM to raise further cash to invest in cloud technology and training content. It raised £3.5m in a placing at 37p a share and the share price ended the week at 43p. Revenues are generated from professional services and SaaS subscriptions and the main growth comes from the latter. There were annual recurring revenues of £5.06m at the end of June 2021. Clients include Schroders and GKN. The shares are tightly held.

A trading statement from franchised lettings and estate agency Belvoir Group (BLV) led to a 3% upgrade in forecast 2021 earnings to 20.3p a share.

IPTV technology developer Mirada (MIRA) grew interim revenues by 10% to $6m thanks to increasing installations for izzi Telecom. Mirada has buit up a 5% global share of the Android TV market. The increasing use of resellers in different regions of the world should help Mirada to grow more quickly than it could relying on direct sales. There was a recent partnership agreement with North America-focused Shift 2 Stream.

Vector Capital (VCAP) says 2021 revenues and pre-tax profit will be better than expected.

Interim revenues of Coral Products (CRU) were 58% ahead at £7.1m and pre-tax profit improved from £494,000 to £698,000. The interim dividend is 0.5p a share. Plastic lotion pumps supplier Global One-Pak was hit by the ill-health of its boss and problems importing from China, but trading is improving.

Human capital services provider Mind Gym (MIND) increased its interim revenues by two-thirds to £24.1m and it returned to profit. Revenues are back to the levels in the first half of 2019, although the profit is much lower. Digital revenues account for 81% of the latest revenues.

Online fashion retailer Sosandar (SOS) nearly trebled its interim revenues, helped by maintaining high stock levels following the fundraising earlier this year. Strong trading, both from the company’s website and through third parties, continues to be strong. October was a record month and November was even better. The full year revenues forecast has been raised by 11% to £27.1m. Sosandar could move into profit next year.

Cenkos has upgraded its free cash flow forecast for Duke Royalty (DUKE) following the latest interims. It is expected to be 2.3p a share, which will cover the forecast dividend of 2.2p a share. There is a record deal pipeline

Lekoil Nigeria is offering to acquire the 60% of Lekoil Ltd (LEK) that it does not own for double the suspension price of 0.95p or for a share exchange.

MAIN MARKET

Guernsey-registered technology shell Hambro Perks Acquisition Company Ltd (HPA1) raised £140m through a placing at 1000p per unit (one public share and 0.5 of one public warrant). The price went to premium and fell back to 1000p. An attractive market, innovative product or service, scalability and strong management will be required in any target. The target business would be valued at £800m or more. The Hambro Perks Ltd advisory business has expertise in investing in early-stage technology businesses and could have potential targets in its funds.

Town Centre Properties (TOWN) maintained its underlying NAV at 284p a share. Net debt was reduced to £145.6m and LTV is 51.3% at the end of June 2021. The full loss was significantly reduced, although there was cash generated from operations. The final dividend is 1.75p a share, taking the total for the year to 3.5p a share, down from 5p a share.

Telecoms services provider Toople (TOOP) is raising £380,000 at 0.045p a share. The previous placing was at 0.11p a share during October 2020.

Rebel shareholders in beverages supplier East Imperial (EISB) have withdrawn their general meeting requisition following the appointment of Alistair McGeorge as chairman and Colin Henry as a non-exec. Rabindra Lal Soni has resigned as chairman.

Andrew Hore

Quoted Micro 25 October 2021

AQUIS STOCK EXCHANGE

Lush co-founder Andrew Gerrie plans to float a new shell called Silverwood Brands on the Aquis Stock Exchange. The strategy is to acquire and develop consumer brands and pay with shares and cash. Hotel Chocolat (HOTC) founder Angus Thirlwell is an adviser. Silverwood Brands was formed in August. There are currently 100 shares, which were issued at par value of 1p. A pre-IPO subscription of £1m recently closed.

Boanerges (BNRG) has agreed to acquire the business and assets of digital ecommerce company WeShop, where AIM-quoted Brandshield Systems (BRSD), Vela Technologies (VELA), Primorus Investments (PRIM) and IamFire (FIRE) are shareholders. The payment will be 33.33 million shares at 75p each, compared with a market price of 77p, following a May flotation at 20p a share. Boanerges intends to leave Aquis and join the JP Jenkins matched bargain facility. Boanerges is offering to acquire any shares bought since the Aquis flotation at 75p each. Boanerges believes it has the cash it requires to develop the WeShop business, and it may seek a listing in the future.

Arbuthnot Banking (ARBB) says customer deposits have increased by 19% to £2.8bn so far this year, while loans have risen by one-quarter to £1.97bn. Assets under management are 14% higher at £1.3bn.

Capital for Colleagues (CFCP) has sold its investment in Office for Public Management for £469,000, having invested £250,000.

Dispersion Holdings (DEFI) has acquired Accru Finance for £8.75m in the form of 250 million shares. The vendors will own 29% of Dispersion and the founders Philip Blows and Digby Try will join the Dispersion board. The former will become chief executive. Accru is developing cryptocurrency trading platform, which is yet to get FCA approval.

Altona Rare Earths (ANR) has agreed to acquire a 51% interest in the Chambe rare earths project in Malawi and this new deal is likely to delay the move to the standard list. An initial payment of one million shares will be held in escrow until the exploration licence is transferred to a new company in which Altona can increase its interest to 70%.

Vulcan Industries (VULC) reported revenues of £5.23m in the year to March 2021. There was a loss of £3.42m. Net debt is £3.4m.

There was a £891,000 cash outflow at Semper Fortis Esports (SEMP) in the six months to July 2021. There is still £1.77m in the bank.

AIM

Bens Creek Group (BEN) has acquired coking coal mining assets in West Virginia, and it believes it can restart production before the end of 2021. The estimated coal resources are 17.2 million in-place tons with proven and probable reserves of 2.34 million tons. Bens Creek raised £5.8m, after expenses, at 10p a share when it joined AIM. Bens Creek announced an offtake agreement for washed Hi-Vol-B metallurgical coal with Integrity Coal Sales, which has agreed to take 22,000 US short ton of coal each month for a 12-month period. This deal starts in January and covers 50% of expected production volumes. The current market price is $277/short ton and the price paid will depend on the market price at the time. This deal sparked an uptick in the share price, which reached 13.25p by the end of the week.

Devon-based Tungsten West (TUN) is developing the Hemerdon tungsten and tine mine near Plymouth and it joined AIM during the week. The share price ended the week at 63p, up from the 60p at which £39m was raised before expenses. Hemerdon was previously owned by Wolf Minerals, which went into administration, and acquired by Tungsten West two years ago. There had previously been more than £170m invested in the mine. There is an estimated mineral resource of 325Mt at 0.12% tungsten. A bankable feasibility study was completed in March.

Disinfection products supplier Tristel (TSTL) reported lower revenues and profit but that was down to stockpiling in the comparative period. Revenues were 2% lower at £31m, while pre-tax profit fell by one-quarter to £5.4m, which is similar to the 2018-19 level. Profit growth should recommence this year, but it will take time to beat the 2019- 20 figure. Tristel is shedding non-core products, which will reduce costs. Progress continues with US product approvals.

ASX-listed Future Metals (FME) did not raise any cash when it gained a secondary quotation on AIM. The share price ended the first day of trading at 12.25p and then fell to 10.5p. The company was previously quoted on AIM as Red Emperor Resources and has returned following the acquisition of 100% of the Panton PGM project in Western Australia. There is definitely a resource. A bankable feasibility study was completed by previous owners in September 2003, and it was reviewed in 2011. There is a JORC mineral resource of 14.3Mt at 5.2g/t PGM and 2.4m ounces of gold. There is also nickel, cobalt and copper mineralisation.

Solid State (SOLI) has an order book at record levels. The order book has increased by 48% to £61.5m with orders stretching further ahead than in the past. Interim pre-tax profit is estimated to have risen from £2.6m to £3.3m. Operating margins benefited from a change in product mix.

Internet domain name registry and services provider CentralNic (CNIC) is continuing to perform ahead of expectations. Organic growth was 29% in first nine months of this year. CentralNic expects full year EBITDA of at least $32m, up from $22.1m in 2020.

MAIN MARKET

LED lighting and wiring accessories supplier Luceco (LUCE) is trading in line with expectations of achieving a full year underlying operating profit of at least £39m. Revenues are 36% higher than the 2020 figure. Gross margins are slightly lower due to cost pressures.

Andrew Hore

Quoted Micro 27 September 2021

AQUIS STOCK EXCHANGE

Michael Williams has stepped down as chairman and chief executive of British Honey Company (BHC) and non-exec Philip Seers has also resigned. Robert Porter-Smith has rejoined the board and Alex Maurice becomes chief operating officer. This follows the general meeting requisition, and it is unclear what will happen with that.

Ecotricity has accelerated its 400p a share bid for rival renewable energy supplier Good Energy (GOOD) and it will close on 8 October.

St Mark Homes (SMAP) had net assets of 120p a share at the June 2021. Interim turnover was flat at £108,000 and the loss was reduced from £84,000 to £49,000. The residential development in Sutton will be marketed later this year.

Japanese whisky supplier Rogue Baron (SHNJ) generated revenues of $505,000 in the first half of 2021. There was a loss of $150,000 before flotation costs. Net cash is $139,000. A marketing push is planned for next year.

Rural Broadband Solutions (RBBS) has 2,650 monthly paying connections and expects 2,800 by the end of the year. Interim revenues were £395,000 and the loss was £401,000. Costs have increased due to the strengthening of management to boost the sales and marketing operations. Net cash was £341,000.

Western Selection (WESP) made a reduced loss in the year to June 2021 and no dividend is being paid. Net assets are £10m.

Yooma Wellness Inc (YOOM) is acquiring US-based sparkling water brand Big Swig for $2.5m, minus anticipated liabilities, in shares. This will increase the number of retailers the group deals with in the southern US.

KR1 (KR1) has participated in the Basilisk crowdloan and Kusama (KSM) parachain auction. It contributed 11,111.1 KSM to the crowdloan.

TruSpine Technologies (TSP) has raised £650,000 at 10p a share and Oberon Capital has been appointed as broker. An FDA 510k application for spinal stabilisation system Cervi-LOK should be lodged before the end of the year.

Rutherford Health (RUTH) has opened a community diagnostics hub in partnership with Somerset NHS Foundation Trust. There are up to five community hubs planned.

Capital for Colleagues (CFCP) had net assets of 69.71p a share at the end of August 2021.

IamFire (FIRE) has raised £396,000 at 3p a share. It issued broker Peterhouse with 200,000 warrants at a strike price of 10p a share. John Taylor, a director of AIM and Aquis companies, and Sandy Barblett, who is a director of Rogue Baron, have joined the board. Burns Singh Tennent-Bhohi is leaving the board.

Oscillate (MUSH) director Burns Singh Tennent-Bhohi has bought one million shares at 2.072p each. He owns eight million shares. The sister of the chief executive of S-Ventures (SVEN) has sold 600,000 shares at 27p each.

AIM

Judges Scientific (JDG) is improving its order book and some of the benefits will show through in the second half. In the six months to June 2021, revenues increased from £37.4m to £43m – the 2019 figure was £40.2m. Underlying pre-tax profit improved from £6.4m to £8.5m, which is slightly higher than 2019 interim figure. To put this in perspective, there have been three acquisitions since the first half of 2019, but it does show a strong recovery.

SourceBio International (SBI) says that updated Covid-19-related travel requirements, that mean that inbound fully vaccinated people will not need PCR tests on days two and eight, will hamper progress in the fourth quarter. Testing volumes had been growing and they will fall back. So far this month, the figure is 14,000 per day.

IT recruitment and services provider Parity Group (PTY) has been increasing investment in its business but that has led to an interim loss. In the six months to June 2021, Parity revenues declined from £29.9m to £26m, which was also below the second half 2020 revenues. Revenues are continuing to decline. A small interim profit has become a small loss and the loss is set to increase in the second half. Parity has swung from net cash to net det of £1.1m, excluding lease liabilities, at the end of June 2021 and a further cash outflow is expected in the second half.

Pennant International (PEN) growing its software revenues and plans to increase its exposure to the rail sector in order to lessen dependence on aerospace and defence. The first half was tough. Revenues did improve from £6.26m to £7.43m, but Pennant remains loss making. There are more than £1m of annualised savings. The three-year order book is worth £26m and there is also a significant pipeline of potential projects for the technical training business.

Cyber security firm ECSC (ECSC) increased interim revenues by 15% to £3m and there was a small reduction in loss to £207,000. Utilisation levels of consultants are increasing, and the recurring managed detection and response revenues grew by 17%. A full year loss is expected.

Cosmetics supplier Warpaint London (W7L) has done well with the roll out in Tesco stores and next year there will be a further boost from a Boots roll out. Interim revenues rose from £13.5m to £18.4m even though there was a decision to reduce close out activity. Profit quadrupled to £1.6m and it was higher than the 2019 figure. The interim dividend is 2.5p a share. Sales in the eight months to August were £27m.

Steel structures supplier Billington (BILN) improved interim revenues by 15% to £37.7m and pre-tax profit was one-quarter higher at £763,000. Net cash was £12.1m at the end of June 2021. Structural steel operations were near to full capacity in the period, while the safety products business increased revenues by one-fifth.

Kettle controls and water appliances manufacturer Strix (KETL) produced record interim figures, even though new product launches were too late to make a difference. The new factory has opened in China with plenty of capacity to handle growth.

Employee benefits services and insurance provider Personal Group (PGH) is growing its SaaS-based business. The deal with Sage is also starting to generate more significant revenues following a free pilot stage. Group revenues fell because of the lack of face-face insurance sales, but there should be a recovery next year.

MAIN MARKET

Maternity wear supplier Seraphine Group (BUMP) says that first quarter trading was strong, but it has been tougher in the second quarter because of supply issues. That means that first half profit will be lower. Full year profit should be at least in line with the 2020-21 figure.

Path Investments (PATH) has provided a loan facility of up to £600,000 to DG Innovate, which Path has conditionally agreed to acquire. DG Innovate is developing electric motor and energy storage technologies.

Serum Life Sciences is investing £50m in Oxford Biomedica (OXB) in return for a 3.9% stake. The cash will be invested in developing the company’s manufacturing facility.

NMCN (NMCN) plans to move from the premium to the standard list. This is part of Svella’s requirement to extend its commitment to subscribe for shares in NMCN. A circular is required to convene a general meeting that should be held by 1 November. Lloyds Bank has extended the company’s overdraft facility to 5 November.

Andrew Hore

Andrew Hore – Quoted Micro 6 September 2021

aquis stock exchangeAQUIS STOCK EXCHANGE
Rutherford Healthcare (RUTH) says a UK investor has agreed to acquire 19 million shares at 65p each. That will raise £12.35m. Rutherford is also issuing 64 million shares to acquire UAE-based Proton Partners International Health Care Investments, which owns the Gulf International Cancer Center in Abu Dhabi.

Capital for Colleagues (CFCP) has made a new investment in Craft Prospect, a Glasgow-based satellite engineering business. There will be £800,000 invested in ordinary shares for a 11.3% stake. The cash will be used for recruitment and product development.

VSA Capital Group plans to join the Aquis Stock Exchange on 9 September. It was previously quoted on AIM, although it cancelled the quotation in April 2013. London-based VSA provides corporate finance and broking services and has an office in Shanghai. In the year to March 2021, the main subsidiary VSA Capital increased revenues from £2.14m to £2.98m and pre-tax profit jumped from £278,000 to £746,000. Group net assets were £4m at the end of March 2021.

Polygon Global Partners has increased its bid for Watchstone Group (WTG) to 38p a share, up from 34p a share, which values the company at £17.5m. Watchstone still believes the bid is too low. In the middle of August 2021, there was £14.1m in the bank and £1.8m in escrow. There are potential litigation claims on top of that.

KR1 (KR1) has participated in the Moonriver (MOVR) crowdloan and Kusama (KSM) parachain auction. KR1 contributed 5,000 KSM to the crowdloan auction. In return KR1 has received 19,666,35 MOVR and will receive a further 45,888.15 over 48 weeks. KR1 has already sold 15,643.19 MOVR in return for 5,162.25 KSM. KR1 also invested $500,000 in return for Exponent (XPN) tokens. Exponent is an open source platform.

In the year to December 2020, MiLOC Group Ltd (ML.P) increased revenues from HK$15.4m to $20.5m and it moved from loss to a profit of HK$6.22m. The healthcare company sharply reduced its distribution costs and other admin expenses. This reflected the termination of an endorsement agreement and a write-back of a previous over provision for fees.

First half revenues of Yooma Wellness Inc (YOOM) were $2.78m, with $2.18m generated in the second quarter. The interim loss was $5.5m.

Wishbone Gold (WSBN) has identified seven targets at the Cottesloe project in Western Australia.

Eight Capital Partners (ECP) has launched an issue of €25m 4.8% five-year bonds that will be listed on the Vienna Stock Exchange. They will help to refinance existing bonds.

Evrima (EVA) is raising £720,000 at 5p a share plus warrants to subscribe for shares at 10p each. This will finance investments in existing investee companies and new investments.

Vulcan Industries (VULC) has raised a further £163,000 at 1.7003p a share.

AIM
Capital equipment manufacturer Mpac (MPAC) had a strong first half with a combination of acquisitive and organic growth in the Americas. Revenues were one-fifth higher at £44.2m, with organic growth of 2%. Pre-tax profit was 88% higher at £4.7m. Net cash was £10.3m at the end of June 2021. Healthcare and food have been the main markets for the company’s packaging and automation equipment, but a new contract has been signed to supply battery cell assembly equipment. The full year pre-tax profit forecast has been upgraded to £8.2m.

Bigblu Broadband (BBB) is returning £26m to shareholders following the recent disposal of Quickline. That will be 45p a share in cash via the issue of B shares by October. There should still be net cash of £1.7m at the ned of November 2021 with deferred consideration due next year. Interim revenues from continuing operations improved from £10.6m to £13.1m. Growth is coming from Australasia, but the Nordic region is expected to return to growth next year.

Mercia Asset Management (MERC) has made a £1.6m direct investment in Locate Bio, which had previously been backed by the manager’s funds. Locate Bio’s products help to accelerate the repair of bone and cartilage. The total of £10m raised by the company will be used to support trials of its technology.

Pennant International (PEN) says interim revenues improved by 17% thanks to a strong performance by the software division. The three-year contracted order book has fallen to £25m, but there are potential contracts in the pipeline. Pennant should return to profit this year.

Interim revenues have trebled to £820,000 at in-game digital advertising firm Bidstack (BIDS), but there is still a long way to go before it reaches profitability. Losses will continue in 2021 and 2022, although there is enough cash in the bank to cover these, following a £10.8m fundraising.

Trading at Manchester-based Northcoders (CODE) has been strong since the software training company joined AIM during the summer. Applications are 162% of 2019 levels and there is 90% revenue visibility for 2021. There are plans to open a new office in Birmingham.

Real-time financial data software provider Arcontech (ARC) reported flat full year revenues and pre-tax profit of £3m and £1.1m respectively. Even so, the dividend was raised by 10% to 2.75p a share.

Bangladesh Bank has approved the acquisition of a majority stake in Sanofi Bangladesh by Beximco Pharmaceuticals (BXP).

MAIN MARKET
Innovaderma (IDP) has completed its product portfolio review and medical device products have been classed as non-core. Packaging of core personal care products has been refreshed and they are available via Amazon. There are plans to use influencers to build sales.

Dealings have commenced in Caracal Gold (GCAT) following its acquisition of Kilmapesa gold mine. There are plans to increase production to 50,000 ounces of gold each year.

One Heritage Group (OHG) has become aware of financial issues with owned associate company One Heritage Maintenance, where it owns the equivalent of a 34% stake. The stake was valued at £285,000.

Andrew Hore

Andrew Hore – Quoted Micro 28 June 2021

AQUIS STOCK EXCHANGE

Good Energy (GOOD) says it is perming better this year than in the same period last year which included the start of the lockdown. Forward buying has improved margins. The smart meter rollout is accelerating.

Dispersion Holdings (DEFI) has invested C$200,000 at 18 cents a share in Defi Yield Technologies Inc. This gives it a 3.5% shareholding in the company that is developing a platform for decentralised financial services.

Altona Rare Earths (ANR) has raised £178,000 at 12p a share, which was a premium to the market price. Altona subsequently acquired up to 70% of the Monte Muambe rare earths project. It will take a 1% stake on signing the deal and increase it to 20% in phase 1 when £40,000 in cash is paid and one million shares are issued. In order to take a 70% stake a total of £240,000 in cash will be paid and three million Altona shares have to be issued. On top of this there are minimum expenditure commitments over three phases of the project.

Rogue Baron (SHNJ) says its bar in Washington DC increased sales by 38% to $225,000 in the three months to May 2021 even though capacity has halved. Trading in the shares has started on OTCQB.

Tectonic Gold (TTAU) is preparing to drill the Specimen Hill project in Queensland. There have been positive results from sampling and the structural modelling of the site has been completed.

Capital for Colleagues (CFCP) had net assets of 64.06p a share at the end of May 2021. It sold his investment in Anthesis Consulting for £1.15m during the period. There was cash of £2.65m at the end of May 2021.

DiscovOre (ORE) is changing its name to Oscillate. and it will focus on the medical psychedelic industry. This includes treatments for drug-resistant depression, anxiety, addiction and post-traumatic stress disorder.

Ananda Developments (ANA) expects to begin construction of a research facility in July. Strains of medicinal cannabis have been selected for research. Liberty Herbal Technologies has received a US patent for its vaping device.

CBD products supplier Sativa Wellness Group Inc (SWEL) has opened its 40th testing clinic for travellers and has introduced blood testing for Covid-19 immune response through some clinics. The clinics will be listed on the NHS Patient Access service.

Valereum Blockchain (VLRM) has raised £1m at 70p a share.

Virgata Services has extended its offer for Walls & Futures REIT (WAFR).

Tim and Charlotte Syder have increased their stake in Newbury Racecourse (NYR) from 4.5% to 8.7% and they appear to have been bought from Andy and Judith Stewart.

AIM

Printed circuit technology developer and supplier Trackwise Designs (TWD) has disappointed the market due to electric vehicle contract delays. Interim revenues more than doubled from £2.91m to £6.07m thanks to the initial contribution from Stevenage Circuits. A pre-tax profit of £200,000 in 2019 was turned into a loss of £400,000. There is currently net cash of £2.87m. The new factory should open later in the year.

Demand for Accoya wood continues to be strong, but Accsys Technologies (AXS) will not be able to increase production capacity until a new reactor is installed in the Netherlands later in the year to March 2022. In 2020-21, Accsys moved into profit and cash generation improved. A decision is awaited about how Accsys will make progress with the Hull Tricoya plant, where the contractor has resigned. Cash was raised in May to finance the US joint venture, but more cash may be required.

First Property (FPO) had to reduce the valuations of its owned Polish properties last year and that hit net assets. Management says that some of that valuation reduction should be reversed following a restructuring of the finance lease on one of the properties. NAV fell 22% to 42.8p a share at the end of March 2021 and it could improve to 48.8p next March. Loan to value is 45.3%. There is no final dividend.

In 2020, Dekel Agri-Vision (DKL) reported revenues of €22.5m and a reduced loss. The palm oil supplier will benefit from the higher palm oil price this year, enabling it to move into profit. The cashew plant will also make a contribution.

Musical instruments retailer Gear4Music (G4M) performed strongly last year, and revenues improved from £120.3m to £157.5m, while pre-tax profit jumped from £3.1m to £14.6m. This year will be tough, though. Pre-tax profit is forecast to fall back to £7.5m even though current trading is better than expected. The company has started buying existing brands. Premier is a drums brand and Eden is a bass amp supplier. Further acquisitions are likely.

Packaging manufacturer Robinson (RBN) says that revenues in the first five months of 2021 are 17% ahead of the same time last year. This is mainly due to an initial contribution from the Schela acquisition and passing on raw material costs – volumes are 1% ahead.

Jade Road Investments (JADE) had a net asset value of 67p a share at the end of 2020. There was an improved valuation of quarry company Future Metal Holdings. The three-year mining licence has been renewed and an independent assessment of the business will be published later this year.

Tristel (TSTL) has gained approval for foam-based surface disinfectant Jet from the EPA in the US. This will enable approvals to be sought with individual states. Tristel Duo, the disinfectant for ultrasound devices, has been approved in Canada and South Korea.

Vector Capital (VCAP) has raised £1.5m at 47p a share and this will be used for marketing and increasing the loan book. The cash raised at the end of 2020 has been deployed.

Location Sciences (LSAI) has given 12 months notice to its chief executive and finance director. They are continuing to work in the business.

MAIN MARKET

Nottinghamshire-based construction and infrastructure services provider NMCN (NMCN) has secured a highly dilutive rescue fundraising after falling into financial difficulties The company continues to lose money and the terms reflect the dire financial position. A £14m subscription is proposed, with a up to £5m more to come from an open offer. There is also a £10m convertible bridging loan – convertible at 20p a share and with fees and interest it equates to 62.4 million shares. Svella, which is run by former Stobart boss Andrew Tinkler, will subscribe for up to £7.4m of the subscription shares and provide the loan.

Fasteners supplier Trifast (TRI) reported slightly better than expected 2020-21 figures. Industrial activity is recovering. This year pre-tax profit is expected to improve from £11m to £12.9m.

Tirupati Graphite (TGR) has increased sales of its graphite products CarboflameX and GrafEN 45545 with trial and sample orders received. Land has been secured for a dedicated product development facility.

Cizzle Biotechnology (CIZ) has signed a deal to develop a companion diagnostic with St George Street Capital for certain of its potential autoimmune treatment assets that it has licensed. This deal takes Cizzle into a new area, but lung cancer remains the focus.

Zegona Communications (ZEG) is paying an interim divided of 2.6p a share. That is based on the dividend from Euskaltel and does not reflect the proceeds from the telecoms company’s takeover.

Andrew Hore

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