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Andrew Hore – Quoted Micro 21 December 2020

AQUIS STOCK EXCHANGE

Employee ownership investor and adviser Capital for Colleagues (CFCP) increased its NAV by 21% to 52.69p a share in the year to August 2020. There were realised gains of £307,000 and a £1.35m increase in the fair value of investments. There was cash of £388,000 at the end of August 2020. Management hope to pay a 2020-21 dividend of at least 1p a share. Cobrio Fund Partners has increased its stake from 4.58% to 7.55% and they were nearly five months late in announcing this.

Gunsynd (GUN) has made a £200,000 investment in Low 6, a sports betting platform. Low 6 partners with sports teams and plans to float in 2021. Gunsynd has invested a further A$800,000 in Rincon Resources at 20 cents a share as part of its ASX listing on 21 December.

A successful planning permission application for a Sutton development St Mark Homes (SMAP) has led to the announcement of an interim dividend of 3p a share. The ex-dividend date is 29 December. Approval has been gained for additional retail space, which could be let to a large retailer, at an existing development in Sutton plus a new building with 30 apartments. There are also new developments in Hanwell, Finchley and Muswell Hill.

KR1 (KR1) has made two new investments. There was $150,000 invested in 15 million Lido tokens and $200,000 in 797,043.48 Swarm tokens. KR1 has also generated a further 141,564.69 Polkadot tokens since August. These have been sold for $797,000. KR1 still owns 3.5 million Polkadot tokens.

Good Energy (GOOD) has announced three strategic partnerships for its mobility as a service offer. Mina Energy has technology to make home charging more effective. Home Energy Infrastructure can arrange funding for installing EV charging infrastructure. Select Car Leasing can lease the vehicles.

Sativa Wellness (SWEL) says the EU has concluded that CBD is not a drug within the meaning of the UN single convention on narcotic drugs 1961. It therefore qualifies as a food. The company is preparing a novel food dossier for the UK Food Standards Agency in parallel with the EU. The UN has voted to remove cannabis from Schedule IV, the category of the world’s most dangerous drugs, while in the US there has been a bill passed to decriminalise cannabis at the national level.

World High Life (LIFE) has secured a listing for Love Hemp with Boots.

SulNOx Group (SNOX) shareholders have signed an option agreement with Rigworld Group, which could purchase 20 million shares at 40p each up until 31 March. This includes the whole of Nistad Group’s 14.6% stake.

Shareholders in Black Sea Property (BSP) have voted against four resolutions at its AGM, although they did vote for four other resolutions including one to retain the Aquis quotation. The two resolutions relating to Alex Borrelli were withdrawn and he has resigned from the board. Trading in the shares has been suspended until a new non-executive director is appointed.

Imperial X (IMPP) has 450,000 shares in Canada-based Imperial Helium and has subscribed for C$110,000 convertible debentures, which will be converted at a 20% discount to the IPO price.

Vulcan Industries (VULC) has raised £365,000 at 5.5p a share.

AIM

DP Poland (DPP) has agreed the acquisition of rival Poland-based pizza restaurant group Dominium for £22.7m in shares and loan notes of €7.5m. DP Poland raised £3.5m at 8p a share, while 21.8 million of the consideration shares were sold at the same price. The combined group will be one of the top three pizza chains in Poland.

Radio frequency communications networks developer CyanConnode (CYAN) has managed its cash well and continues to grow revenues. In the six months to September 2020, revenues were £1.5m and the loss was £1.37m. In the two months since the period end, revenues have been around £1m. The order book in India is worth £19m, which is equivalent to one million units, and these orders could be deployed over the next two years. There are also orders in Thailand and Sweden.

Construction dispute and property services provider Driver Group (DRV) maintained its profit in the second half of the year to September 2020. Underlying pre-tax profit still declined from £3m to £2.5m on revenues 9% lower at £53.1m. The higher margin Diales expert witness business continues to grow. Net cash was £8.2m at the end of September 2020. The final dividend is 0.75p a share.

Codemasters (CDM) has withdrawn is recommendation of the Take-Two Interactive bid and switched its support to the Electronic Arts offer of 604p a share.

Two companies have decided not to make an offer for Telit Communications (TCM) and that leaves u-blox as the only potential bidder left.

K3 Capital (K3C) is trading strongly and finnCap has upgraded its 2020-21 earnings forecast from 11.4p a share to 11.9p a share. There have been cross-selling benefits from recent acquisitions. The acquisitions business has performed well and there is longer-term potential from the Quantuma insolvency business.

Carpets retailer United Carpets (UCG) has decided to leave AIM and it is launching a tender offer of 6.25p a share for up to 29 million shares.

Property services provider Fletcher King (FLK) fell into loss in the six months to October 2020. Revenues from asset management and fund management clients was steady, but other revenues were weak. There is £3.1m of cash in the bank.

NWF (NWF) says that the fuels division has traded positively, and it has recommenced the process of assessing acquisitions. The new food warehouse is fully utilised, but the volatile demand has hit profitability. Feed volumes were slightly lower than the year before.

Summerway Capital (SWC) is switching its investing policy to the software sector and Vin Murria, who has built up AIM-quoted software companies in the past, is joining the board.

Yourgene Health (YGEN) had a steady first half with Covid-19 testing revenues helping to offset lower demand for other products.

Kodal Minerals (KOD) is acquiring the Fatou gold project in southern Mali. There is a mineral resource of 350,000 ounces of gold and potential to increase the figure.

Touchstone Exploration (TXP) has secured a gas sales agreement covering all production from the Ortoire block in Trinidad.

Trinity Exploration (TRIN) has signed an agreement with the National Gas Company of Trinidad to develop new projects in the Caribbean. This includes renewable energy, stranded gas and a micro liquefied national gas business.

MAIN MARKET

BATM (BVM) is investing $3m in Ador Diagnostics as part of a $10m funding. This will be spent on further develop its technology. BATM has a 36.7% stake.

Contango Holdings (CGO) has a potential 1.8 million ounces gold resource at an average grade of 1g/t at the Garolo gold project in Mali. There is further gold at greater depths. The first gold production could be before the end of 2021.

Spinnaker Opportunities (SOP) has conditionally agreed an all-share acquisition of Kanabo Research and has advanced a further £100,000 to the medicinal cannabis company.

Kin and Carta (KCT) has sold healthcare communications business Hive for £13.8m. The business contributed pre-tax profit of £1.2m last year.

Andrew Hore

Andrew Hore – Quoted Micro 26 October 2020

AQUIS STOCK EXCHANGE

Truspine Technologies (TSP) says that the latest tests of Cervi-Lok, which is a spinal stabilisation device, have been positive. The tests used a computer-generated model and it showed that Cervi-Lok had a reduction in range of motion that was better than existing screw-based fixation systems. FDA clearance is expected early next year.

Vulcan Industries (VULC) is acquiring the business and assets of Romar Process Engineering for £550,000 in cash and shares. Romar is a metal fabrication business and in the nine-months to July 2020 it made a pre-tax profit of £202,000 on revenues of £732,000. The group will be able to undertake larger contracts and some production will be transferred to the Romar facility. The exclusivity period for the proposed acquisition of E Lowe has been extended.

Early Equity (EEQP) has bought a 1% stake in Lotto Studios for £50,000. Lotto licences entertainment and sports brands for lottery and casino games. Early Equity believes that it can help with opportunities in Asia.

Gunsynd (GUN) has sold its 600,000 shares in Bunker Hill Mining raising £164,000. The investment company has reinvested £146,000 in Empress Royalty Corp.

Graham Lyon has stepped down as non-executive chairman and Majken Korsgaard has resigned as non-executive director of SulNOx Group (SNOX) and this means that trading in the shares has been suspended because there is no independent director. Nicholas Nelson has been reappointed as a director. Shipleys has resigned as auditor. Resolutions allowing the company to issue more shares were not passed at the AGM.

Tectonic Gold (TTAU) says that it is progressing towards drilling at the Specimen Hill prospect in Queensland. Samples have returned assays of more than 3.5g/t gold and more than 45g/t silver.

Chairman Robert Sutcliffe has been buying shares in DXS International (DXSP).

Rural Broadband Solutions (RBBS) has started trading following the reverse takeover of Secure Web Services by SAPO. Chris Akers has a 3.29% stake.

Shares in Coinsilium Group Ltd (COIN) have started trading on OTCQB Venture Market in the US.

AIM

Vianet (VNET) says that interim trading was ahead of Covid-19 revised expectations. There has been a month-on-month improvement in cash and profit during the period. New restrictions on hospitality outlets could hamper progress. The interims will be published on 8 December.

Full year figures from Tristel (TSTL) were slightly better than anticipated. The disinfection products supplier increased revenues by 21% to £31.7m and a 27% rise in underlying pre-tax profit to £7.1m. Profit growth will be held back this year by additional investment in the US, where there should be positive news about FDA approval of products.

C4X Discovery (C4XD) has raised £15m at 14p a share. This has nearly doubled the number of shares in issue. The cash will provide a strong financial position for C4X when it is negotiating with potential partners and strategic collaborators. It will also fund the development of potential drugs. that The cash should last for at least 12 months. Indivior has started a phase I clinical trial for C4X_3256 for the treatment of opioid dependence. The trial will last until the end of the year and there will be data in 2021.

Judges Scientific (JDG) is acquiring Korvus Technology, which supplies vapour deposition systems, for an initial £2.64m. This has sparked a small upgrade to the 2021 pre-tax profit forecast taking it to £15.2m.

Gold recovery services company Goldplat (GDP) has increased profit from activities in South Africa and Ghana. The sale of the Kilmapesa mine should be completed by December.

Rare books supplier Scholium (SCH) made a small interim loss. Shapero Rare Books increased its online activity. There will be annual savings of more than £100,000 from moving to new premises.

Orchard Funding (ORCH) has decided to withdraw its application for a banking licence.

Seeing Machines (SEE) has signed a memorandum of understanding with L3 Harris Technologies that could take the company’s computer vision technology into the flight simulator market.

Immunodiagnostic Systems Holdings (IDH) released its normal interim trading statement at 4.35pm on Friday. Covid-19-related sales are still small.

MAIN MARKET

Strong third quarter trading has helped LED lighting and wiring accessories supplier Luceco (LUCE) to increase its guidance for full year operating profit from £23m to between £28m and £30m.

Contango Holdings (CGO) has raised £1.8m at 5p a share and acquired the Garalo gold project in southern Mali for $1m, with $100,000 paid and the rest due in February. The rest of the cash will finance the development of the project so that gold production can start before the end of 2021. Capital costs of $1.2m are expected with further finance of $4m being sought to build up production. Target production is 30,000 ounces per year. The non-independent resource is 320,000 ounces of gold at an average grade of 1.5g/t. Costs should be less than $1,000/ounce.

Aircraft lessor Avation (AVAP) increased revenues by 14% to $135.3m and there was a full year pre-tax profit of $14.6m after a net impairment charge. Mitigating lender agreements have been made with clients.

Edale Capital has sent a requisition notice to InnovaDerma (IDP) in order to force an AGM re-election vote for two existing directors and to propose a new director.

Property investor Town Centre Securities (TOWN) says that it collected 75% of rents in the latest quarter with 10% deferred. Since June, £41.2m has been raised from retail property disposals.

Andrew Hore

Andrew Hore – Quoted Micro 22 June 2020

AQUIS STOCK EXCHANGE

Cancer treatment developer Incanthera (INC) had cash of £392,000 at the end of March 2020, following its fundraising when it joined the Aquis Stock Exchange. The company has a call option on more than £350,000 of additional cash. That should fund this year’s requirements and make the company’s cash last until next summer. The initial focus is topical cream Sol, which prevents sun damage turning into skin cancer.

European Lithium (EUR) has obtained initial funding from the EU-backed Greenpeg programme to support lithium sourced from Europe. The cash goes towards to the Wolfsburg lithium project in Austria.

Cadence Minerals (KDNC) says that the Yangibana rare earths joint venture has commenced drilling at the project. The plan is to increase the existing 21.25Mt JORC resource. The drilling will continue until October. The Amapa iron ore project, where Cadence will own a 20% stake, is set to start shipping its stockpile early in the third quarter of this year.

Angelfish Investments (ANGP) intends to change its investment strategy to one focused on healthcare.

TechFinancials (TECH) had cash of $672,000 at the end of 2019. However, write-offs mean that net assets have fallen to $309,000. Management is uncertain about the future of the Footies ticketing technology operation.

Altona Resources (ANR) had net liabilities of £353,000 at the end of 2019. There is a bank overdraft of £100,000.

Globe Capital Ltd (GCAP) is currently being supported by one of its shareholders Toddbrook Investments and the company’s loan note provider. Net assets were turned into net liabilities of £88,000 at the end of 2019.

AIM

Digital payments and fraud prevention services provider Boku (BOKU) is buying rival Fortumo Holdings for an enterprise value of $41m. Boku has raised £20.1m at 85p a share to finance the acquisition. In 2019, Fortumo made EBITDA of $2.3m on revenues of $7.2m. Fortumo is focused on smaller businesses than Boku.

International pensions administrator STM (STM) has made a good start to 2020, but profit is still set to decline this year, although that is partly due to the lack of one-off income. The current share price reflects this with the prospective multiple of eight, but that could fall to less than five in 2021.

Trans-Siberian Gold (TSG) has increased the JORC compliant mineral resource estimate at the Asacha gold mine to 452,000 ounces of gold at an average grade of 14.7g/t and 1.33 million ounces of silver at an average grade of 44g/t. Three-quarters of this is in the measured and indicated category. The mine life should extend to 2027. More drilling is planned in the east zone. A final dividend of $0.023 a share is proposed, and the shares go ex-dividend on 9 July.

Best of the Best (BOTB) has received tentative bid approaches and management is exploring strategic options. This follows the announcement of the competitions organiser’s full year figures. A 3p a share final dividend and 20p a share special dividend were announced.

Feedback (FDBK) is raising up to £5.59m via a placing and open offer at 1p a share in order to invest in the development and marketing of its Bleepa medical imaging communications platform. This could double the number of shares in issue. A one-for-ten open offer will raise up to £540,000 depending on the take-up. Stanford Capital was the bookrunner.

VR Education (VRE) reported a 43% increase in 2019 revenues and the loss was reduced. COVID-19 has increased interest in virtual reality-based conferences and this has probably pushed VR Education much further ahead than it would have been. The benefits of this will show though in the next couple of years as revenues grow faster than previously expected. The cash injection from HTC means that VR Education has plenty of cash for its requirements.

Omega Diagnostics (ODX) is raising up to £11m at 40p a share in order to finance further COVID-19 testing opportunities and to increase production capacity.

Inspiration Healthcare (IHC) is acquiring SLE, which makes ventilators for neonatal intensive care, for £18m in cash and shares. A £16.5m placing at 65p a share and an open offer raising up to £500,000 at the same share price will fund the cash element of the acquisition price.

Urban Exposure (UEX) says that Randeesh and Danjit Sandhu have resigned and will receive settlement payments, while Ravi Thakar has been made redundant. They can also sell their shares. This is because of the decision to stop taking new property loan business. NAV is estimated at 84p a share at the end of 2019. An orderly wind down should produce 70p-83p a share. A loan book sale is not currently attractive. There should be quarterly cash distributions as cash comes into the company.

Information management services provider IDOX (IDOX) made a strong recovery in the first half. Revenues were 13% ahead at £35.1m, while there was a small pre-tax profit from continuing operations. More than 90% of full year revenues have been contracted. Net debt fell from £26.4m to £14.3m over the six months to April 2020.

MAIN MARKET

Fasteners supplier Trifast (TRI) has raised 315m at 120.5p a share. An initial £5m will be invested in projects to enhance growth and the rest will provide additional working capital. Trading in the year to March 2020 was in line with forecasts adjusted for COVID-19 effects. There have been improving activity levels since May.

Seafox International has lodged a second requisition for a general meeting at Gulf Marine Services (GMS) and it has been accepted. Seafox proposes Hassan Heikal and Hesham Helbouny as directors.

Contango Holdings (CGO) has completed the acquisition of a 70% stake in the Lubu coalfield project and been readmitted to the standard list.

Spinnaker Opportunities (SOP) is still waiting for the listing requirements relating to its acquisition of Kanabo Research. There is still uncertainty over listing regulations for cannabis-related companies. The acquisition was announced 16 months ago.

LED lighting supplier Dialight (DIA) says it is experiencing improving but volatile demand. The order book is better than expected and overdue deliveries are being made. Crucial component stocks are being built up. Net debt was 317.3m at the end of May 2020.

Andrew Hore

Andrew Hore – Quoted Micro 25 May 2020

AQUIS STOCK EXCHANGE

Daniel Thwaites (THW) closed its pubs and hotels on 20 May and it will not pay a final dividend for 2019-20. Net debt was £65.4m at the end of March 2020 and there are £16.6m of spare bank facilities. Trading had been strong, and the predominance of freehold properties means that rent payments is not as big a concern as it is for some pub operators.

Housebuilder St Mark Homes (SMAP) had a NAV of 127p a share at the end of 2019. The share price is 87.5p. There is cash of £4.8m and the company intends to pay off its bond, which has a 6% coupon. In 2019, pre-tax profit dipped from £117,000 to £114,000.

KR1 (KR1) has raised $353,000 from the sale of RPL tokens, relating to the Rocket Pool, which is developing a proof-of-stake infrastructure service using Ethereum 2.0. The tokens were acquired for $0.21 each and sold at $1.67 each. The majority of the RPL tokens acquired are still held by KR1 even though there was a buyer for all of them. The takeover of digital asset custodian Volt Ltd has generated a further $244,000.

Rutherford Health (RUTH) has signed a framework agreement that will enable it to provide cancer treatment services to NHS trusts. The deal lasts an initial period of two years.

Altona Energy (ANR) has cancelled its open offer because the minimum amount was not raised. Instead, management is in discussions with three companies that could reverse into Altona. Cash will be required to cover the costs of a reverse takeover.

Trading has resumed in Lombard Capital (LCAP) shares. Lombard’s waste and recycling subsidiary is acquiring land in Preston for £1.08m. Lombard needs to issue more bonds in order to fully fund the purchase. Existing bond holders are swapping £507,000 worth into shares at 25p each and £320,000 has been raised from the exercise of warrants at 10p each. The current share price is 27.5p and it is more than five times the level it was two months ago. The site was previously used for recycling and Lombard will reapply for an environmental licence. It will be used for a waste to energy project and a plastic recovering plant.

Coinsilium Group Ltd (COIN) has been appointed as adviser to Kesholabs, a Kenya-based blockchain technology developer. Kesholabs is developing three applications that could be launched within 12 months.

Clean Invest Africa (CIA) says that CASA is set to resume limited operations after the lockdown in South Africa. CASA will produce test work and production of anthracite samples.

Ananda Developments (ANA) subsidiary DJT plants has met with the MHRA to discuss its plans to grow strains of cannabis. This is part of the licence application to grow medicinal cannabis. There will be further consultation with the UK authorities.

World High Life (LIFE) says that subsidiary Love Hemp has increased capacity for its LH Botanicals business.

IWEP is swapping part of its loan to Eight Capital Partners (ECP) into a 29.8% stake at 0.025p a share. Shares have also been issued to creditors to satisfy money owed.

First Sentinel (FSEN) has invested £270,000 in Stabiltech Biopharma as part of a £6m fundraising. The corporate finance subsidiary is advising the investee company on further fundraisings. The vaccine developer is developing a potential vaccine for COVID-19. Clinical trials should start in June.

Secured Property Developments (SPD) is still seeking property investments. There is £514,000 in the bank and net assets of £470,000.

All Star Minerals (ASMO0 has raised £80,000 at 0.02p a share and a further £170,000 is being sought. Ian Harebottle and Richard Lloyd, who both have mining experience, are joining the board.

NQ Minerals (NQMI) has raised £189,500 in placings at 7p a share and 7.5p a share. NQ has raised £340,000 in the past fortnight.

Shareholders have passed the resolution to consolidate 100 existing Wheelsure Holdings (WHLP) shares into one new share.

Sport Capital Group (SCG) has appointed Peterhouse as joint broker.

Engineering businesses consolidator Vulcan Industries is seeking admittance to the Aquis Stock Exchange. The focus is profitable metal fabrication and precision engineering businesses. First Sentinel is corporate adviser. The expected admission date is 1 June.

AIM

Renalytix AI (RENX) plans to gain a Nasdaq listing. The renal diagnostics company has not decided how much money it wants to raise. Renalytix AI has launched a joint venture to develop and produce COVID-19 antibody test kits.

STM (STM) subsidiary Carey has won a court case brought by a client. Adams v Carey related to a non-advisory SIPP taken out by Adams and an investment that he asked to be put in the SIPP. The investment performed poorly, and Adams claimed for loss of value. This case has been going on for more than two years.

Employee background checks provider ClearStar (CLSU) has launched a COVID-19 testing service that will help employers with back to work planning. That could attract additional clients for ClearStar’s services.

Imaging services provider IXICO (IXI) increased interim revenues from £3.43m to £4.56m and that helped to more than double profit from £215,000 to £475,000. There was cash of £6.66m at the end of March 2020. The order book is strong. It was £15.3m at the end of the interim period and more has been added since then. Data analysis from existing trials is continuing during the lockdown.

Tiziana Life Science (TILS) intends to demerge its genomics-based personalised medicine businesses into a separate quoted vehicle. This will enable the business to raise cash to develop the StemPrintER technology for the prediction of disease recurrence in breast cancer patients.

Tissue products developer Tissue Regenix (TRX) raised £14.6m at a share price of 0.25p. This was much-needed cash because existing funds were about to run out.

A share placing by Open Orphan (ORPH) at 11p a share raised £12m after expenses. This will help to finance services for COVID-19 vaccines and tests, as well as more laboratory facilities.

Digital TV technology provider Mirada (MIRA) has extended the term for its revolving credit facility by 12 months to the end of November 2021. Earlier this month, Mirada launched a lower cost version of its technology. Iris in Swift Mode is a pre-packaged platform.

Eddie Stobart Logistics (ESL) has acquired the Eddie Stobart brand from Stobart Group (STOB), which will have to change its name, for £10m. An annual fee of £3m was payable for the brand. This will be saved from now on. There have been some reductions in activity due to COVID-19, but grocery and e-commerce demand remain strong.

Cash shell Summerway Capital (SWC) has £5.55m in the bank as it continues to seek an acquisition.

MAIN MARKET

Contango Holdings (CGO) has published a prospectus relating to the acquisition of the Lubu coal project. The potential deal was announced more than one year ago. A £1.4m placing at 5p a share in January will finance costs and initial investment in the Lubu project. Readmission is expected on 18 June.

The Takeover Panel Executive has denied Moss Bros (MOSB) bidder Brigadier’s attempt to lapse its offer. Brigadier has asked for the ruling to be reviewed.

Pure Gold Mining Inc (PUR) has secured a $15m investment at $1.52 a share. This will be invested in the Red Lake Mine.

Loans to Shefa Gems (SEFA) totalling £1.25m have been converted at a premium to the market price. The shares issued account for 14.5% of the enlarged share capital.

Andrew Hore

Andrew Hore – Quoted Micro 27 January 2020

NEX EXCHANGE

Results from IFA group AFH Financial (AFHP) indicate the success of the acquisition policy. In the year to October 2019, underlying pre-tax profit improved from £10.3m to £17m and earnings per share rose by more than two-fifths. The dividend was one-third higher at 8p a share. Assets under management were £6.2bn. AFH plans to grow to annual revenues of £140m and assets under management of £10bn in five years. Cash generated from operations was held back by the protection division predominantly generating non-indemnity business, where the payment is spread over the term of the package. Non-indemnity business will reduce in order to have a higher proportion of revenues that gets paid upfront. Cash generation will improve, and this will mainly go on deferred consideration.

Corporate adviser First Sentinel (FSEN) has raised £220,000 at 27p a share in order to provide working capital for the business. That was a small discount to the market price the day before the placing was announced, but the price fell to 19p/22p on the day. On the day, there were 25,000 shares traded at 20p each and 186,370 shares traded at 20.09p each.

NQ Minerals (NQMI) has appointed New York-based Ortoli Rosenstadt as the law firm to help it with a potential ADR listing in the US.

Broadband-focused shell SAPO (SAPO) has announced the death of its executive chairman Michael Meyer, who was the founder of Emess Lighting. He and his wife own 43.4% of SAPO. Michael Langoulant is the only remaining director of SAPO.

Eight Capital Partners (ECP) has placed an additional €90,000 of 7% July 2022 bonds, which are traded on the Vienna Stock Exchange. A total of €3.64m of bonds have been issued, which is 73% of the total that can be issued.

BWA Group (BWAP) has issued 3.26 million shares at 0.5p each to settle directors’ fees for the fourth quarter of 2019. The current share price is 0.2p/0.4p. Richard Battersby’s stake is 16%, Alex Borelli holds 9.48% and James Butterfield owns 15.8%.

Juliet Adelstein will become chief executive of Ganapati (GANP) on 1 February. She previously worked at Japanese advertising agency Dentsu. Hiroki Hasegawa and Toshitaka Nakajima are stepping down as chief executive and finance director respectively.

Via Developments (VIA1) 7% debenture stock 2020 has been withdrawn from MEX. Trading was suspended on 21 October 2019 because of a delay in appointing an independent non-executive director.

Former NEX-quoted company MESH Holdings still plans to acquire AI business Sentiance and Mike Power has taken over as chairman. MESH has also appointed two new directors. Corporate finance professional Lindsay Mair and Ireland-based former broker Rory O’Sullivan.

AIM

Last year was a tough one for agriculture and feed products supplier Wynnstay (WYN) and pre-tax profit fell from £9.5m to £7.9m, but the dividend was still raised. Profit is expected to be flat this year. There was net cash of £3.8m at the end of the year, as lower commodity prices reduced working capital requirements, but there will be £7m of lease liabilities included as debt in the next balance sheet. Seasonality means that there will be a net debt figure at the interim stage and the leases mean it will be much higher than it would have been. Net cash could still be £6m by the end of next October.

Concrete levelling equipment Somero Enterprises (SOM) had a better than expected fourth quarter and this led to an upgraded 2019 earnings forecast from 33.7 cents a share to 36.5 cents a share. That is still lower than 2018 and a further dip is expected in 2020 due to higher marketing spend. The expected total dividend for 2019 is 24.6 cents a share.

United Oil and Gas (UOG) says that the ASH-2 well that is part of the interests being acquired in Egypt has been producing more than 3,000 barrels of oil per day since the beginning of the year. United’s share is 660 barrels of oil per day. The acquisition of the Egypt interest from Rockhopper Exploration (RKH) will not be completed until February.

Nostra Terra Oil and Gas (NTOG) says a general meeting requisition is valid and it will announce a date for the meeting by next week. Eridge Capital wants to remove Matt Lofgran from the board and replace him with Andrew Morrison.

Regenerative medical products developer Tissue Regenix (TRX) says that revenues grew 12% last year, but the cash will not last much longer. There was £2.4m at the end of 2019 and this will last until the end of April. More funding will be required before then.

Peel Hunt has halved its dividend forecast for construction services provider Van Elle (VANL) to 1p a share, although it has maintained its 2019-20 pre-tax profit forecast at £4m. The interim dividend was cut by four-fifths to 0.2p a share. A sharp drop in interim profit means that two-thirds of the forecast needs to be made in the second half. Net debt was £10.4m at the end of October 2019.

IPTV technology company Mirada (MIRA) has completed the cancelation of the share premium account.

Gear4Music (G4M) had strong Christmas trading and gross margins improved. Revenues grew by 7% to the end of 2019 and gross profit was 18% ahead. Earnings of 3.9p a share are forecast for the 2019-20 financial year.

Agronomics (ANIC) has raised a further £5.5m at 7p a share. That is a one-third discount to the market price. At the end of last year £7.7m was raised at 5.5p a share. Agronomics has invested some of the cash it previously raised in cultivated meat businesses developing meat and fish that is produced without animals, but It will have £9.9m in the bank after the cash raising.

Cyber security software provider Kape Technologies (KAPE) generated slightly better 2019 margins than anticipated. EBITDA grew by 40% to $14.5m in 2019 and it will more than double this year.

Touchstone Exploration Inc (TXP) believes that the best possible outcome was achieved from the initial production tests of the Cascadura well in Trinidad, which appears to have oil and associated gas. The Coho-1 well should be in production by June.

Trinidad-based oil and gas producer Trinity Exploration and Production (TRIN) increased production by 5% in 2019 and exited the year with daily production of 3,400 barrels. The current forecast for 2020 is 3,260 barrels per day. There was cash of $13.8m at the end of 2019.

Fuel cells developer Proton Motor Power Systems (PPS) has received a €400,00 order from E-Trucks Europe for fuel cells for refuse collection trucks. They will be delivered by the end of 2020.

MAIN MARKET

Standard list shell Spinnaker Opportunities (SOP) still intends to acquire medicinal cannabis company Kanabo Research but there are still conditions to be satisfied. The deal was announced 11 months ago.

Contango Holdings (CGO) is another cash shell and it has been in the process of acquiring the Lubu coal project since April. A £1.4m placing at 5p a share puts Contango in a position to publish a circular for the acquisition.

Tex Holdings (TXH) says it has a record order book. It is responding to matters raised by the FCA and trading in the shares remains suspended. Trading was suspended nine months ago and it has reported its late annual figures, although there still appear to be doubts about the financial state of the company. The overdraft has been repaid.

Andrew Hore

Andrew Hore – Quoted Micro 30 December 2019

NEX EXCHANGE

Rutherford Health (RUTH) has called for a further subscription by Woodford as laid out in the flotation prospectus. A further £15m has been raised at 176p a share. These shares go into the LF Equity Income Fund and its stake rises to 25.1%. Further cash will be required to open a fourth clinic in Liverpool. The current share price is 227.5p (210p/245p).

Greencare Capital (www.greencare.capital) is set to join NEX. This is an investment vehicle that will invest in medicinal cannabis and other cannabis-related products. NEX-quoted Eight Capital Partners (ECP) is set to own a 12.5% stake. E-Value One will own two-thirds of the company.

Bulgaria-focused property investor Black Sea Property (BSP) has agreed o cancel the sale of 23 plots of land in Byala. There has been a rise in value of the plots since the 2014 deal to sell the land for €1.02m. It is costing €1.15m to get the land back.

Medicinal cannabis company Sativa Group (SATI) says that BMAK Investments and Ken Lawrence has increased their combined stake from 4.27% to 7.96%.

Trading in European Lithium Ltd (EUR) shares has been halted on the ASX. This is ahead of an announcement for the financing of a definitive feasibility study for the Wolfsberg lithium project.

Compton Beauchamp Estates has raised its stake in Newbury Racecourse (NYR) from 31.9% to 40.9%. The shares were acquired for 775p each from non-executive director Erik Penser, who also controls Compton Beauchamp Estates. His interest remains at 40.9%.

AIM

Harwood Wealth Management (HW.) is recommending a 145p a share cash bid. Shareholders can opt to take a combination of cash and securities. Management believes that it needs greater financial backing to make more acquisitions. Carlyle and Hurst Point are working together on the bid.

Adamas Finance Asia (ADAM) says that 85%-owned Future Metal has commenced dolomite production and it is on course to reach the daily production target of 800-1,000 tonnes over the next three months. That could double by the middle of the year. This will depend on signing up customers. Adamas has bought back 2.4 million shares at 16.1p a share.

Wealth management firm Kingswood Holdings (KWG) is acquiring a 85% stake in US wealth management firm Chalice for £3.1m. Kingswood could make a pre-tax profit of £4m in 2020.

Internet domains manager Minds + Machines (MMX) has renegotiated its onerous contract and it will cost $5.1m in cash. The estimated liability was $7.9m. The contract could still generate $500,000 in revenues. There will be a trading update in January.

Regency Mines (RGM) is setting up a partnership with Ion Ventures to identify and prioritise its most commercially attractive battery metals projects. Regency will issue shares to Ion in return for consultancy. James Parsons has become executive chairman and Regency. A one-for-100 share consolidation has been completed.

MAIN MARKET

Sure Ventures (SURE) says that Sure Valley Ventures (25.9%-owned by Sure Ventures) investee company Artomatix is being acquired. The company automates 3D content creation and the original investment was 14 months ago. Sure Ventures share of the sale proceeds is €1.6m, which is five times the original investment.

Contango Holdings (CGO) has advanced a total of $356,314 to develop the Lubu coal project in Zimbabwe. The plan is to acquire the project, where mining could commence in the second half of 2020, and if the acquisition is not completed by next Christmas Eve the cash will be returned. Contango believes it can complete the fundraising to acquire Lupu in January.

Cobra Resources (COBR) has raised £613,000 and filed a prospectus for the reverse takeover of Lady Alice Mines, which owns an exploration licence for an area in South Australia including the former Prince Alfred copper mine, as well as a 75% interest in five gold exploration tenements near Wudinna. The prospectus should be published in January.

Zenith Energy (ZEN) is acquiring 80% of the Congo subsidiary of AIM-quoted Anglo African Oil and Gas (AAOG). This company owns 56% of the operator of the Tilapia oilfield in the Republic of Congo. Production is 30 barrels of oil per day. Multiple potential productive reservoirs have been identified. Zenith will fund its share of up to $5.5m of a work programme, plus a renewal payment of up to $2m. The Congo subsidiary owes Anglo African Oil £12.5m and it will retain 20% of the debt and novate the rest to Zenith.

James Ritchie has been appointed chief restructuring officer and interim finance director of stevia sweeteners developer PureCircle Ltd (PURE).

Andrew Hore

Andrew Hore – Quoted Micro 11 November 2019

NEX EXCHANGE

Ecommerce technology developer Netalogue Technologies (NTLP) is recommending a 11.2p a share cash offer from TrueCommerce, which values the company at £5.73m. That is nearly double the share price of the most recent share deal. Netalogue clients include Transport for London, Greene King and Bunzl. The deal will bring together ecommerce and supply chain software in one platform and provide cross-selling opportunities. US-based TrueCommerce is a global connectivity business, which also has a B2B client base. The UK part of the business has revenues of £13.8m, but it is losing money. The group as a whole has revenues of $95.2m and made a net loss of $157,000. In the year to March 2019, Netalogue made a pre-tax profit of £300,000 on revenues of £1.35m. There should be potential cos savings from duplication of development spending and overlapping roles.

AFH Financial (AFHP) is acquiring the client portfolios of Warwickshire-based Groom Associates from the two retiring advisers. The initial cost is £321,000 and a further £294,000 could be payable depending on the performance of the acquired assets over 26 months.

AfriAg Global (AFRI) is selling its African operations and consolidating 100 shares into one new share. It can then concentrate on cannabis business Apollon Formularies.

Proton beam therapy firm Rutherford Health (RUTH) grew interim revenues from £197,000 to £2.5m, but the loss increased from £9.17m to £14.9m as the initial proton beam therapy centres get up and running. Since August, a further £12.5m has been raised and a £20m debt facility agreed. The focus is building up patient numbers for the three fully operational cancer centres. At the end of October, 412 shares were traded at 245p each. There is still the Woodford share overhang.

Two months after floating World High Life intends to consolidate every ten shares into one new share. The investment company plans to acquire businesses involved in medicinal cannabis and related products, including nutraceuticals and cosmetics. World High Life has announced plans to acquire Love Hemp in return for £4m in cash and the issue of 30 million (existing) shares. A further £2m could become payable in the next three years depending on the achievement of turnover targets.

Trading in Black Sea Property (BSP) shares has recommenced following its interim results announcement. Interim revenues improved from €272,000 to €312,000, but there was a €1.9m write-down on investment properties. The overall loss was €2.58m. NAV has fallen from 0.95 cents a share to 0.75 cents a share over a six months period.

Eight Capital Partners (ECP) has converted the €2m it is owed by Finance Partners Group into shares that take its stake in the investment company, which has an investment in Italy-based Avantgarde Group, to 40%. Avantgarde owns inventory finance fintech company Supply Me (www.supplyme.tech), which may list on the London market. Eight Capital Partners has paid £1,500 to John Treacy, one of its directors, for a further 30% of Epsion Capital, giving it 100% ownership. It has also invested a further £95,000 in the company, which is applying to the FCA for full regulatory status.

VI Mining (VIM) says that talks with the vendors of the Minaspampa and Rosario de Belen projects are likely to end with them taking back the projects because there is still $42.4m of the payment outstanding. VI will focus on generating cash from tolling operations. David Sumner is waiving the $1.61m of salary owed to him. Sumner, who already provides loans to the company, is raising money via a security token offering and cash raised will be used to finance VI.

Former NEX-quoted company MESH Holdings (MESH) is proposing to gain admission to the standard list. There is a timing extension to the acquisition of AI business Sentiance and the acquisition of additional shares and the exercising of an option has taken the Sentiance stake to 16.8%. The acquisition of a majority stake is dependent on ZASAi and related interests not having to make a bid for MESH after they receive shares in return for the Sentiance stake. MESH will then own 80.1% of Sentiance and be able to issue a prospectus for the listing.

AIM

In the year to June2019, Frontier IP (FIPP) made an unrealised profit of £3.85m on its investee company portfolio, up from £2.06m last year. NAV was £17.6m at the end of the year. A placing has raised £3.8m at 50p a share. This will help to develop and commercialise investee companies.

Rose Petroleum (ROSE) is acquiring a 10% of Captiva Energy Holdings II (CEH) Inc’s 89.5% net working interest in the 317-acre McCoy lease in Colorado. It will also have an option to acquire up to a further 80% of that net working interest. CEH is owned by the chairman and chief executive of Rose. Drilling should happen within one year and there are discussions about a funding partner. Rosehas raised£1.25m at 1.1p a share to provide finance to develop assets. This is expected to be the first in a series of deals. The Morton family trust has taken a 3.84% stake in Rose.

Zoo Digital (ZOO) was hit by a faster than expected decline in Blu Ray and DVD business, but the core localisation and dubbing business did grow its revenues. A stronger second half is expected, and Zoo should return to profit this year. New streaming services from Apple and Disney provide a strong back drop for demand.

Shares (SHRE) subsidiary The Share Centre won two awards at the Shares Awards 2019. They were best stocks and shares ISA provider and best customer service.

Competitions organiser Best of the Best (BOTB) is trading ahead of market expectations. This has sparked a 2019-20 profit forecast upgrade of 16% to £2.2m. The interims will be published on 30 January.

Faron Pharma (FARN) has raised £7.48m at 190p a share. This will finance the clinical programme for potential cancer treatment Clevegen.

Defenx (DFX) is seeking to cancel its AIM quotation. Strand Hanson will continue as nominated adviser until the cancellation. BV Tech, which owns 67.1% of Defenx, will vote for the cancellation.

LIDAR wine sensor technology developer Windar Photonics (WPHO) has been hit by the slow conversion of interest into orders. Revenues in the ten months to October 2019 were €1.2m. Full year revenues will be below expectations. There is limited working capital available. BDO resigned as auditor during October. A share swap has left the interests of Windar director Jorgen Jensen with a 11.2% stake and O-Net Communications with 4.5%.

MAIN MARKET

Nanoco (NANO) has entered into early discussions with potential buyers of the company. This has sparked a review of strategic options for the business. That includes potential additional funding. There are also talks with potential customers in the displays and infra-red sensing markets.

InnovaDerma (IDP) executive chairman Haris Chaudry has stepped down the day after the beauty products supplier’s AGM. He has reduced his stake from 28.6% to 0.2%. The shares were sold at 52.4p each. Edale Capital has taken a 9.11% stake. Revenues have grown by 38% in the first four months of the financial year. A new skincare product will be launched in 2020.

Robbie Rayne does not want Gresham House Asset Management to be reappointed as external manager of LMS Capital (LMS) and he and his family intend to vote their 42% shareholding against the reappointment at a general meeting. He wants a return to internal management of the portfolio of assets and a £7.5m distribution to shareholders.

Standard list shell Contango Holdings (CGO) intends to try to raise £1m at 5p a share in order to help finance the acquisition of the Lubu coalfield project in Zimbabwe. Contango has advanced $310,000 to the project. If the acquisition does not go ahead by Christmas Eve, then the money should be returned.

Zenith Energy (ZEN) is planning an all share offer for Nordic Petroleum. One Zenith shares will be offered for every 100 Nordic shares. This will require the issue of up to 9.1 million shares. Nordic is involved in heavy oils in Canada. It has tax credits in Norway and a legal claim against a UK party, the rights to which will be retained by Nordic shareholders. A prospectus has been approved for an issue of up to €25m of Euro Medium Term notes at par.

Andrew Hore

Andrew Hore Quoted Micro 15 April 2019

NEX EXCHANGE

High Growth Capital (HASH) is increasing its stake in Sentiance to 15% and is negotiating an option to acquire a majority stake in the artificial intelligence and machine learning business. The additional 5% stake will cost £7m in shares issued at 0.8p each. The option would enable an increase in the total stake to between 51% and 84.8%. The company would offer 100,000 of its own shares for each Sentiance share and the option is subject to High Growth Capital raising at least £25m. High Growth Capital has also acquired the intellectual property of Malta-based BDD, a company founded by Chris Akers, for £4m in shares at 1p each. The project involves an annual blockchain raffle that would raise money for social impact and environmental initiatives.

EPE Special Opportunities (ESO) had a net asset value of 205.2p a share at the end of January 2019, which was 12.5% lower than the year before. The stake in fully listed LED lighting products manufacturer Luceco (LUCE) is a significant part of the portfolio and its valuation fell by 27.7%. There has been a recovery in the Luceco share price since the end of January, even though there was a decline of three-quarters in 2018 pre-tax profit to £3m. The EPE NAV had risen to 232.8p a share on 9 April on the back of Luceco share price rise. The EPE share price is 180p.

Angelfish Investments (ANGP) is subscribing £150,000 for a 9.14% stake in Just Bee Drinks and is also providing a loan facility of up to £100,000 at a annual interest charge of 10%. Just Bee has developed a natural juicy water drink sweetened with honey. This means that there is no added sugar. More than one million bottles were sold last year, and revenues doubled. The drink is already sold in Waitrose and Boots. Just Bee had net assets of £83,000 at the end of March 2018. Angelfish has also provided a £100,000 debt facility at the same interest rate to Wallet Ads. The previous loan of £150,000 was converted into a 20% stake.

NQ Minerals (NQMI) nearly doubled zinc concentrate production at the Hellyer mine in Tasmania to 3,015 DMT in the first quarter of 2019, while lead concentrate production increased by 18% to 4,712 DMT. Pyrite concentrate production jumped by 331% to 18,488 DMT.

AIM  

Video games developer and services provider Sumo (SUMO) reported better than expected 2018 revenues of £38.7m and pre-tax profit of £9m. Sumo has been acquiring businesses to give it extra capacity as well as opening new studios. There is plenty of demand for Sumo’s services so utilisation rates are high and there is further upside from performance-based royalties and its own IP.

Destiny Pharma (DEST) had £12.1m in the bank at the end of 2018 and this will last into 2020. That should be long enough for the phase IIb study of XF-73 for the prevention of post-surgery infections.

Maiden full year results from legal services and credit hire business Anexo (ANX) have led to an upgrade by its broker Arden. The 2019 pre-tax profit forecast has been edged up from £17.8m to £18.1m, up from £16.1m in 2018, and the 2020 figure is 4% higher at £20.1m. Net debt is expected to increase from £17.3m to £26.3m in order to finance the growth of its legal business.

RA International (RAI) continues to win contracts, but larger contracts are taking longer to secure. RA provides services to remote locations in nine countries in Africa and the Middle East. Having joined AIM last summer, RA has $27.8m in the bank and this is helping it to tender for and win larger contracts. The average contract term is 4.4 years. This makes revenues relatively predictable and they are expected to rise by 10% this year to more than £60m.

Property investor Safeland (SAF) intends to leave AIM and secure a matched bargain facility on Asset Match. It is tendering for shares at 42.5p each, which compares with an NAV of 140.2p a share at the end of September 2018.

Having sold the RTLS SmartSpace business, the continuing revenues of geospatial software and services provider IQGeo (IQG) fell from £16.5m to £9.98m, although recurring revenues were 22% higher, and gross margin improved. There were lower software revenues, but the main decline was in the sale of third party products. There is a significant market for the company’s products and new modules are being launched. However, the full benefits of changes being made by management will probably not show through until next year. There is £30.9m in the bank and some of this will be returned to shareholders after a capital reorganisation is completed.

Interim revenues generated by LightwaveRF (LWRF) have more than doubled to £2.5m which is nearly as much as the £2.8m generated in the previous 12 months. Direct sales, e-commerce and telesales have contributed to the growth, as has the development of retail clients.

Legal firm Gordon Dadds (GOR) has acquired Gibraltar-based Rampart Corporate Advisers for up to £1.34m depending on performance. Rampart specialises in e-gaming, fintech and distributed ledger technology, and made a profit of £400,000 in the year to June 2018. Five former Ince network firms are joining Ince Gordon Dadds, although they remain independent. This would add £23m to existing group annual revenues of £77m. The firms are based in Hong Kong, Singapore, Dubai, Greece and Germany. This will boost profitability.

Strategic Minerals (SML) says the Cobre magnetite operations generated cash of $206,000 in the first quarter and the group cash balance was $1.24m at the end of March 2019. Volumes were lower because customers were undertaking plant maintenance and the continued suspension of a major client’s contract. There should be seven years of magnetite stockpile. The company expects to acquire the other 50% of the Redmoor tin/tungsten project by the end of May. This will cost £2.66m.

PhotonStar LED (PSL) says that it has enough cash for its immediate needs, but the blocking of the issuing of more shares by shareholders means that there is not enough cash to follow the strategy to find a reverse takeover target. The company may launch an open offer or ask shareholders for a second time for the authority to issue shares without offering them to existing shareholders a second time. Having become a cash shell, the company has been dropped from the FTSE AIM All Share index. It has six months to find an acquisition. A number of potential acquisition targets have been met by the board. Additional directors will be appointed.

Rose Petroleum (ROSE) has raised £275,000 at 1.1p a share in order to finance the appraisal of projects. The shares are being acquired by new executive chairman Robert Bensh, who has experience of the US oil and gas sector. Chief executive Matthew Idiens has more than doubled his stake to 2.52% by acquiring two million shares at 1.75p each. The finance director Chris Eadie has also more than doubled his stake to 1.2% at 1.67p a share. New non-executive director Tom Reynolds also bought shares.

Concepta (CPT) is raising £2.3m at 3p a share to finance marketing and further development of its myLotus fertility test.

MAIN MARKET 

Cadmium-free quantum dots developer Nanoco (NANO) had £6.2m in cash at the end of January 2019. There was a total cash outflow of £4.57m in the latest six month period. The main capital investment at the Runcorn site is almost complete. Non-executive director Chris Batterham has bought 125,000 shares at 47.354p each. Miton has reduced its stake to 4.96%.

Bonmarche (BON) says the mandatory cash bid of 11.445p a share by Spectre undervalues the retailer. Bonmarche is reducing costs. Cavendish Asset Management has edged its stake up to 10%.

Standard list shell Contango Holdings (CGO) has entered into an agreement to acquire the Lubu coalfield project in Zimbabwe for £6.45m in shares at 5p each. Once regulatory approvals have been gained the acquisition should go ahead and trading in the shares can recommence. That should happen by the end of June. There will be a placing to raise cash to fund initial trial mining.

Telecom services provider Toople (TOOP) says that it had more than £1.1m in the bank at the end of March 2019. That is a £1m reduction on the level at the end of September 2018, when there was also a shareholder loan, which was assigned a value of £572,000 in the balance sheet but has a cash value of £607,000. There is no indication if this loan has gone down. Last year, admin expenses were £1.55m, net of other income, and that was more than revenues. Revenues have grown but even if gross margin were to improve there will still be a significant first half loss.

Nuformix (NFX) has signed an agreement for cannabinoid therapeutics development, licensing and commercialisation for an initial upfront payment and other research and development and milestone payments that could total up to £51m. Canada-based Ebers Tech Inc will use Nuformix technology to develop a range of consumer and pharma products.

Zegona Communications (ZEG) has increased its stake in Euskaltel to 21%.

European High Growth Opportunities Securitization Fund has transferred 35.4 million shares in WideCells (WDC) to David Sefton and Linton Capital, which has promised to hold them for 12 months. European High Growth Opportunities still owns 18.2% of WideCells.

Andrew Hore

Andrew Hore: Quoted Micro 17 September 2018

NEX EXCHANGE        

Renewable energy supplier Good Energy (GOOD) reported a 19% increase in interim revenues to £61.8m. Pre-tax profit has more than trebled to £2.4m, if discontinued activities, including the investment in the proposed Swansea Bay Tidal Lagoon, are excluded. The interim dividend is unchanged at 1p a share. A brand relaunch is planned for the second half.

Eight Capital Partners (MORE) has made its first investment in the financial services sector. It is acquiring €111,100 worth of 8% corporate bonds 2020 in Italian financial services company Finance Partners Group. Management believes the link up with the Italian company will fit well with other potential investments.

EPE Special Opportunities (ESO) has completed its migration from the Isle of Man to Bermuda. Trading in the shares has been suspended. Trading should be restored by 21 September.

KR1 (KR1) continues to invest in new token issues. A $200,000 investment has been made in Foamspace Corp for 3.63 million FOAM tokens. This business intends to develop a protocol for a network of beacons providing location services. A further $100,000 has been invested in the Althea Mesh project tokens. This enables decentralised internet service providers to be set up. There has been $100,000 invested in Etherisc tokens. Etherisc is developing a blockchain service for the insurance sector.

Sandal (SAND) has launched an installer service for its MiHome smart home range. The service will be provided by Icon Heating Solutions.

Tectonic Gold (TTAU) has initiated a ten hole drilling campaign at the Specimen Hill discovery in Queensland. Four holes have been completed. The drilling should be complete in four weeks.

Panther Metals (PALM) has acquired the Bear Lake project, which is a package of gold and base metal prospects in north wester Ontario. The consideration is C$133,000 (£77,000) in cash and shares.

AIM  

Manx Telecom (MANX) reported relatively flat interim figures but a deal by one of its developing investments could mean that the business could become significant in a couple of years time. The interim dividend was raised by 5% to 4.1p a share. Full year pre-tax profit is expected to edge up to £15.2m with a similar increase in the final dividend. Investee company Goshawk has developed a hearing loss product and signed up BT’s mobile subsidiary EE, which could provide a potential market of 3 million people.

Property Franchise Group (TPFG) grew all its letting brands in the first half of 2018 and its online estate agency eweMove went from loss to profit in the period. Full year profit is expected to increase from £4.3m to £4.6m.

Anexo Group (ANX) has reported growth in interim revenues and profit although the cash raised in the recent flotation has yet to be put to use. The legal services and credit hire provider is expected to increase full year pre-tax profit from £13.8m to £14.7m in 2018, and then to £16.4m in 2019.

STM Group (STM) increased interim revenues by 6% to £10.8m and pre-tax profit by 11% to £2.1m. The interim dividend was increased by 17% to 0.7p a share. The main growth has come from the pensions business.

K3 Capital Group (K3C) continues to go from strength to strength. The mergers and acquisition adviser increased revenues by 53% to £16.5m and net cash more than doubled to £7.5m by the end of May 2018. Pre-tax profit could dip from £7.3m to £7m, which would lead to a small reduction in dividend from 11.2p a share, but there is scope for upgrades in expectations.

Gatemore continues to build up its stake in TLA Worldwide (TLA) by taking advantage of the share price decline following TLA’s latest profit warning, which was released in the morning for a change, but there is no news about a replacement nominated adviser. The shareholding has been increased from 12.2% to 13.7%. No news about a new nominated adviser.

Audio visual equipment distributor Midwich Group (MIDW) increased its interim, constant currency, revenues by 24% to £264.1m. Organic growth was around 9%. Underlying pre-tax profit was 22% higher at £9.78m. A full year pre-tax profit of £28.4m is forecast.

Potatoes producer Produce Investments (PIL) is recommending a 193p a share cash bid by Promethean Investments. This values the company at £53m.

Orosur Mining (OMI) has secured a $2m investment from Newmont Mining at more than treble the pre-deal market share price. This will provide investment for the Anza project in Colombia. Orosur had been profitable and cash generative but it fell into loss in the year to May 2018 as gold production costs were in excess of the selling price.

Education services provider Malvern International (MLVN) made a small first half loss but it is on course to move into profit in the full year. The number of students signing up for courses means that enough revenues should have been secured for a full year pre-tax profit of £300,000. There will also be a second half contribution from the recent Manchester acquisition.

MAIN MARKET  

Photovoltaic silicon wafers supplier PV Crystalox Solar (PVCS) had net cash of €39.6m at the end of June 2018. This could be returned to shareholders or used to finance an acquisition. The decision will be made before the end of this year. Multicrystalline silicon wafer production ceased in April 2018 and the focus is cutting of quartz and glass. Interim revenues more than halved to €6.2m.

Toople (TOOP) is raising £2.2m at 0.3p a share, following its recent contract news. This is no surprise, but the share price has fallen back from just over 0.9p near the end of August.

Contango Holdings (CGO) continues to undertake due diligence on a near-term producing asset in Zimbabwe. This potential deal was announced last December. There was nearly £638,000 in the bank at the end of May 2018.

Standard list cash shell Auctus Growth (AUCT) had £962,000 in the bank at the end of June 2018. The NAV is 35.5p a share.

Andrew Hore

Andrew Hore – Quoted Micro 27 December 2017

NEX EXCHANGE  

Good Energy (GOOD) has sold two operational 5MW solar farms in Devon and south Wales, plus further development rights, for £5.83m and £5.6m respectively. This should yield a profit of £750,000 on each solar farm. The south Wales site has additional land and development or sale of this land could yield an additional payment. Good will still acquire the energy from both sites.

OneLife Technologies Corp is acquiring One Media Enterprises Ltd, which has agreed to pay back the investment and loan made by Angelfish Investments (ANGP). There will also be management fees payable. This is dependent on the acquisition going ahead. In total, Angelfish will receive $1m in cash and 200,000 shares. Most of the investment has been written off, bar nearly $42,000, so the payment is nearly all profit.

BWA Group (BWAP) expects to be granted mining licences for the extraction of rutile sands in Cameroon. It would then enter an agreement with investee company Mineralfields Group, which would operate the mining concessions. BWA would increase its stake from 12% to 25%. BWA and its directors would own the majority of the shares. BWA has issued 8.37 million shares at 0.5p each in order to pay creditors of Mineralfields. BWA is also issuing £300,000 of 14% convertible unsecured loan stock 2020. The cash interest payment is 4% and the rest will be rolled up and the total loan converted into 36 million shares at 0.5p each.

Malcolm Burne has taken advantage of the sharp rise in the Coinsilium Group Ltd (COIN) share price to reduce his stake to below 3%. He owned 5.7 million shares in April. The share price reached 20p and has fallen back to 15p. Earlier this month, Coinsilium raised £720,000 at 9p a share.

AIM-quoted, spread betting business London Capital Group (LCG) has announced its intention to leave AIM having joined the NEX Exchange Growth Market on 15 December. Glio Holdings Ltd owns 78.1% of London Capital and it will vote in favour of the cancellation of the quotation.

Capital for Colleagues (CFCP) had an NAV of 42.12p a share at the end of November 2017. The provider of capital to employee-owned businesses is switching its investments from debt to equity.

Wheelsure Holdings (WHLP) reported an increased loss in the year to August 2017. Revenues declined from £290,000 to £226,000 and the loss rose from £262,000 to £330,000. An order from Italy was delayed and there were lower orders from London Underground. There was nearly £304,000 in cash at the end of August 2017. Wheelsure raised £630,000 last year. There have been initial orders for high speed rail infrastructure.

EPE Special Opportunities (ESO) has invested in David Phillips Holdings, which supplies furniture and furnishing services to the UK property sector. The business is benefiting from the growth of the private rental sector.

Gunsynd (GUN) has invested £130,000 in a 9% convertible loan note in Human Brands, which supplies Copa Imperial Tequila and Shinju Whiskey. US-based Human Brands made a pre-tax profit of $90,000 on revenues of $1.04m.

Trading in the shares of China CDM Exchange Centre Ltd (CCEP) has been suspended because of issues with the annual returns for the Jersey Registry.

Black Sea Property (BSP) has raised €3.53m at €0.01 a share. This will help to finance the acquisition of a property on the Black Sea coast. Via Developments (VIA1) has issued a further £70,000 of debenture stock.

AIM    

The TLA Worldwide Award for contempt for investors goes this year to Real Good Food (RGD) after it announced it requires substantially more cash at 1.04pm on 22 December. That is the last half day of trading before Christmas. The three main shareholders will subscribe for £3m of loan notes with an annual interest of 10%. This should be refinanced via a share or convertible issue. Net debt was £35.8m at the end of September 2017. Hugh Cawley will become an executive director. The interim loss was £6.66m. Food ingredients returned to profit, helped by the acquisition of Brighter Foods, but the performance of the other parts of the business slumped.

Golden Saint Resources (GSR) intends to change its business by acquiring EMS Wiring Systems for shares and selling the mining assets. Trading in the shares is suspended ahead of due diligence and a share consolidation. EMS is a profitable supplier and installer of cabling, WiFi, CCTV, displays and building management systems in Asia and it intends to expand in Africa and South America. The new name would be Golden Saint Technologies Ltd.

Cradle Arc has a 60% stake in a producing copper mine in Botswana and a gold development project in Zambia. The expected admission date to AIM is 10 January.

Mirriad Advertising (MIRI) was valued at £63.2m at its placing price of 62p. The in-video advertising technology company raised £24.2m net of expenses. Potential customers are expressing interest in the technology and the cash will finance an increasing rate of growth. In 2016, revenues were £700,000.

Antibody development services provider Fusion Antibodies (FAB) raised £5.5m at 82p a share and by the end of the week the share price had doubled. Belfast-based Fusion will invest in the expansion of laboratory space and additional sales and marketing.

Close-ended investment company CIP Merchant Capital Ltd (CIP) raised £55m at 100p a share prior to Christmas. CIP will focus on quoted companies with a market value of less than £500m that have good fundamentals, which need help to improve operational effectiveness or management support to enhance growth. There should also be potential for a future exit. No more than 20% of funds will be invested in an individual company.

Software supplier Pelatro (PTRO) raised £3.8m at 62.5p a share when it joined AIM on 19 December. That valued the company at £15.2m. The company’s mViva software is developed in India and used for marketing by telecommunications companies.

An introduction at 20p a share valued Panthera Resources (PAT) at £12.4m. The main asset is a 70% stake in the Bhukia gold project in India. The company’s share of the JORC inferred resource is 1.22 million ounces. There are also gold exploration assets in Burkina Faso and Mali.

Video games development services provider Sumo Group (SUMO) floated on 21 December at 100p a share and ended the week at 113.5p a share. Sumo raised £38.5m and it was valued at £145m at the placing price.

Fletcher King (FLK) reported a dip in revenues from £1.68m to £1.49m, while pre-tax profit declined from £163,000 to £148,000. The interim dividend is unchanged at 1p a share. There were lower revenues from rating appeals and valuations but one or two SHIPS properties should be fully-let and sold by the end of the financial year.

NWF Group (NWF) says that its feeds division is benefiting from the recovery in the milk price and past capital investment. The fuels division continues to make progress but food distribution performance has been below the first half of last year. The interims will be published on 30 January.

Online gaming firm Nektan (NKTN) is raising £1.76m at 21p a share. That was a one-fifth discount to the market price. There are £10m convertible loan notes 2020, where the conversion price is a 25% premium to the previous placing, so it is currently 26.25p a share. The cash will be invested in technology and geographic expansion. In the year to June 2017, Nektan more than doubled its net gaming revenues to £13.3m.

Telecoms infrastructure equipment supplier Filtronic (FTC) expects a sharp fall in interim revenues from £21.6m to £12.8m and operating profit halved to £900,000. There have been delays in defence orders. Net cash was £2.9m at the end of November 2017. The interims will be published on 30 January.

Kodal Minerals (KOD) says that initial results from its drill programme at the Bougouni lithium project are expected very shortly. There was £4.09m of cash at the end of September 2017.

Tlou Energy Ltd (TLOU) has completed core-hole drilling at two locations at the Lesedi project and a third hole will be completed early next year. Coal samples are being assessed. The results will help to plan the first phase of development drilling. The Botswana Public Officers Pension Fund has taken a 5.84% stake.

Tri-Star Resources (TSTR) is raising up to £4.42m via a 2.250106-for-one open offer at 0.01p a share. That is a 92% discount to the market price and excess applications can be made. The cash is required for part pre-payment of $6m of loan notes issued to Odey Asset Management that carry an annual interest rate of 25%. That cash was used to finance a $6m mezzanine loan to the Oman antimony roaster project. First production should be in the second quarter of 2018. The cost of the project has increased from $96m to $110m. There should be £250,000 left for working capital for Tri-Star and $740,000 of loan notes still in issue. The first dividend from the Oman antimony roaster is expected for the year to December 2020.

Legendary Investments (LEG) has acquired a 9.7% stake in Crowd for Angels in return for 248.3 million Legendary shares at 0.145p each. Crowd for Angels intends to launch a £50m Liquid Crypto Bond. Legendary is swapping its interest in Manas Resources for a 2% stake in Circle Oil Tunisia, formerly a subsidiary of AIM-quoted Circle Oil, which has been liquidated. The stake in Manas was valued at £100,000.

Ambrian (AMBR) has failed to secure short-term financing or defer payment of interest on its convertible loan notes. Grant Thornton will be appointed as administrator. In October, a general meeting removed former chief executive Jean-Pierre Conrad as a director, having been given three months notice in August by subsidiary Ambrian Metals because he had lost the confidence of the board. Conrad was a large holder of convertibles. Ambrian has cement interests in Mozambique and there have been problems in moving cash.

Kromek (KRK) is on course to achieve full year revenues of £12.5m. This is without any contribution from the framework contract from the US authorities for radiation detector systems, which could be important in the future. There should be £14m of cash left by the end of the financial year.

Uranium Resources (URA) has sold its mining assets and is changing its name to URA Holdings. Melissa Sturgess and Peter Redmond have joined the board and £900,000 raised at 0.45p a share.

Redhall Group (RHL) says that its subsidiary Jordan Manufacturing has won business for specialist handling and containment systems for nuclear material at Sellafield. This could be worth £18m over three years.

Prospex Oil and Gas (PXOG) is acquiring up to 49.9% of the Tesorillo gas project in southern Spain. The purchase is in three stages and will cost €2.05m in total.

Problems with labelling in China have held up the fulfilment of demand by Concepta (CPT) for its fertility products. This means that 2017 revenues will be around £100,000 and sales delayed until the first quarter of 2018.

Integumen (SKIN) has raised £500,000 at 1.5p a share. This will help to fund the recently acquired Stoer range of male cosmetics and the commercialisation of the Visible Youth cosmeceutical range. Management is assessing all the group product lines because some are taking longer to generate significant revenues. Integumen intends to set up a joint venture to distribute Champion Shave products in the UK and Ireland.

The One Media iP (OMIP) share price more than doubled to 10p following the news that Lord Michael Grade and former Pinewood boss Ivan Dunleavy are joining the board as non-executives. They are also investing £375,000 at 2.5p a share.

Cross-border payments technology provider Earthport (EPO) says that 2017-18 revenues could be up to 15% lower than expected due to contract delays and a change in strategy by a client. Cash flow breakeven is still achievable during 2018-19. Hank Uberoi is moving from chief executive to executive chairman and a permanent replacement as chief executive has yet to be found.

Escape the Room experiences provider Escape Hunt (ESC) is adapting its strategy to focus on city centre sites. Five leases have been signed and three are being negotiated.

The People’s Operator (TPOP) has successfully raised £2.82m at 0.1p a share. Aidan O’Hara acquired an 8.78% stake prior to the placing. Trading in the shares has been suspended because of concerns over trading prior to the completion of the placing.

A €51 a share cash bid has been recommended by Taliesin Property Fund Ltd (TPF) and this values the company at €260m. The bid enables investors to liquidate their holding in the Berlin property investor at a premium to NAV. Taliesin floated in 2006 at €10 a share.

West African Mineral (WAFM) is disposing of its iron assets through a share distribution of the company holding the assets to its shareholders. They will receive one share in Ferrum Resources Ltd for each West African Mineral share they own. A general meeting will be held on 18 January to agree to the plan. Loans to Ferrum have already been written off but a sale of the assets could spark all or part of the repayment of the $4m loan. West African Minerals will have £2.1m in the bank and it wants to move to the standard list and seek life sciences acquisitions. The company will change its name to OKYO Pharma Corporation.

Property investor Caledonian Trust (CNN) increased its NAV from 152.9p a share to 161.7p a share in the year to June 2017.

TechFinancials Inc (TECH) will receive a total of $1.46m in dividends from two subsidiaries. One of these subsidiaries is part of the previously announced disposals that should generate $400,000.

All bar one of the directors of BOS Global Holdings (BOS) has left the board. Trading in BOS shares has been suspended because of the uncertainty of its financial position and because the annual report has not been published.

MAIN MARKET  

Contango Holdings (CGO) is moving ahead with the possible acquisition of Consolidated Growth Holdings’ interest in a near-term producing mining asset in Zimbabwe. The purchase would be funded at 5p a share, which is a 33% premium to the suspension price. Contango hopes to complete the reverse takeover by the first quarter of 2018. Contango floated on the standard list on 1 December.

Shefa Yamim (SEFA) has joined the standard list. The Israel-based gemstones explorer raised £4.15m at 110p a share and was valued at £15.3m on flotation. The cash will be used to fund further exploration of the Kishon Mid Reach project and production could commence within 24 months.

Dukemount Capital (DKE) reported an interim loss of £113,000 due to the costs of being a listed company. There was £230,000 in the bank at the end of October 2017. Supported living property developer Dukemount has completed a 50-year agreement to lease on the first property it acquired with a supported living housing association. This should generate £234,000 a year and is linked to CPI. It will take 18 months to complete the development but institutions may acquire the lease before then. A second project has also been secured with more under negotiation.

Spinnaker Opportunities (SOP) has raised a further £170,000 at 5p a unit. The unit is one ordinary share and 0.5 of a warrant exercisable at 7.5p a share. The current NAV is 4.2p a share. SI Capital has been appointed as joint broker.

Standard list shell Fandango Holdings (FHP) still had £468,000 in the bank at the end of August 2017. There is currently no industrial or services acquisition under consideration.

Avocet Mining (AVM) has agreed the sale of its Burkina Faso assets for $5m. There will be $2.5m paid on completion and the rest will be deferred over seven years. Avocet will have no trading business. Given Avocet’s debt, if it is wound up there will be little or nothing for shareholders.

Bluebird Merchant Ventures Ltd (BMV) has returned from suspension following publication of its annual report. Chief executive Colin Patterson says he will fund the Gubong gold project through to the completion of the report on feasibility. He and fellow director Aidan Bishop are taking their remuneration in shares.

Andrew Hore

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