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AQUIS STOCK EXCHANGE
Kent-based brewer Shepherd Neame (SHEP) has been profitable since the beginning of July when pubs were allowed to reopen. However, like-for-like sales were lower, particularly in city centres. Own brand beer volumes fell by 2%. Net debt was £82.4m on 26 September, with deferred payments of £6.9m.
There was a reduction in full year revenues generated by National Milk Records (NMRP) from £22.8m to £21.6m. Earnings per share halved to 4.7p.
Wishbone Gold (WSBN) has an exclusive 45-day option to acquire 100% of mineral tenements in the Patersons Range region of Western Australia. The option payment is £50,000. A dividend of 1.25p a share is proposed.
In the year to April 2020, property investor Ace Liberty and Stone (ALSP) increased revenues by 26% to £6.39m. Pre-tax profit was £9,252, including a lease breakage fee of £173,000. There were £800,000 of fair value reductions. Net cash generated by operating activities was £1.88m. Since the year end, £3.14m has been spent on properties.
British Honey Company (BHC) generated revenues of £1.04m in the five months to August 2020, with £500,000 from sanitiser. More recently alcohol sales have recovered, and sanitiser generates around 10% of sales. There was a £435,000 loss in the period because of higher admin expenses.
VI Mining (VIM) is terminating the Minaspampa and Rosario de Belen project acquisitions. Unpaid deferred consideration of $42.2m has bee cancelled. A joint venture is being discussed for other group projects.
Good Energy (GOOD) has launched the UK’s first dedicated heat pump tariff. There is no standing charge in the winter months.
European Lithium (EUR) intends to leave the Aquis Stock Exchange on 6 November.
Peterhouse has resigned as corporate adviser to Imperial X (IMPP).
Early Equity (EEQP) has raised £94,000 at 0.5p a share.
Omega Diagnostics (ODX) is involved with the initial UK-RTC order for one million Covid-19 rapid antibody tests. Omega is set to manufacture 175,000 of these tests. This is the first order and Omega plans to increase capacity to 200,000 tests per week by the beginning of November. finnCap believes each test could generate 150p and the gross margin is 50%. The current revenue forecast of £12.6m for the year to March 2021 does not include the Covid-19 tests which could generate a further £5.7m. Omega should be profitable without any contribution from the tests.
Xpediator (XPD) has acquired Yorkshire-based freight business Nidd Transport for £4.6m. The owner is retiring, and the purchase price is covered by Nidd’s cash and property assets -where there is already an agreement for a sale and leaseback. The deal is earnings enhancing. The logistics business does not have a significant presence in northern England and there will be cross-selling opportunities with other parts of the business. Nidd also has operations in France, Spain and Portugal. In the year to April 2020, Nidd made and operating profit of £500,000 on revenues of £11m.
Hormonal disease treatments developer Diurnal (DNL) has raised £7.5m after expenses at 60p a share and there is an open offer to raise up to £2m.
Plutus PowerGen (PPG) plans to demerge its generation assets and become a cash shell. A placing at 0.02p a share will raise £490,000 after expenses and this will pay money owed to directors and provide working capital. Debt of £266,000 will be capitalised. Plutus tried to sell its co-investee assets but there was no buyer found. Plutus Energy is being demerged and there are plans to demerge the Plutus energy investment portfolio, but this is currently being blocked by Rockpool.
Vanadium flow batteries developer Invinity Energy Systems (IES) is involved in four energy storage products funded by the California Energy Commission. These total 7.8MWh of batteries and they should be delivered next year. Commercial terms are still be agreed with partners. This follows a £1.1m order during June.
Dekel Agri-Vision (DKL) increased third quarter crude palm oil produced by 10% to 5,280MT, thanks to a higher extraction rate. The cashew nut processing plant should still be commissioned next spring.
Caledonia Mining (CMCL) has increased 2020 guidance following third quarter figures showing gold production of 15,200 ounces and nine-month production of 42,900 ounces. Full year guidance is between 55,000 and 58,000 ounces. Caledonia has secured an agreement with the Zimbabwe government that will enable it to assess other gold projects. A solar plant is being built that will provide 27% of the electricity needs of the Blanket mine.
Fintech firm Mode Global Holdings (MODE) joined the standard list on 5 October. Mode raised £7.5m in a placing at 50p a share. Trading commenced. The share price has fallen back to 48.5p. The cash will help to finance the launch of a payments service powered by Open Banking that would replace the need for cards.
Ingredients supplier Treatt (TET) had net cash of £1m at the end of September 2020 and it intends to pay a final dividend. Pre-tax profit of £14m is in line with pre-Covid-19 expectations. Health and wellness revenues grew by 16%, although total revenues fell by 3% due to the lower orange oil prices.
Argo Blockchain (ARB) plans to acquire the two data centres in Quebec housing its cryptocurrency mining equipment that are owned by GPU.one. September mining revenues were £1.1m.
BATM (BVC) has secured an initial order for its Covid-19 Real-Time PCR diagnostic test kits and they will be delivered in the fourth quarter.
AQUIS STOCK EXCHANGE
SAPO (SAPO) has agreed to acquire Secure Web Services (SWS) and it will change its name to Rural Broadband Solutions. SAPO is paying £1.6m in cash and shares and £236,500 of the cash paid will be used to subscribe to a fundraising. SAPO wants to raise £2.5m. SWS is based in Shropshire and had revenues of £730,000. There are 2,300 customers and this could be doubled in three years. A buy and build strategy will expand the group across the UK.
Specialist social housing developer Walls and Futures REIT (WAFR) swung from loss to profit in the year to March 2020. The pre-tax profit of £626,000 includes a gain on revaluation of £798,000. The underlying loss was similar to the year before. Net assets increased from £3.3m to £4m, equivalent to 107p a share. There are plans to dispose of the remaining London residential units and reinvest in specialist supported housing. The Wimbledon Park property was sold for £656,000 in June, which was a 3% discount to book value.
S-Ventures (SVEN) has made an investment in vitamin fortified, smoothies and juices provider Coldpress Foods. It has taken an initial 3.3% plus an investment in a convertible that could take the stake to 6.2%. The total investment is £60,000. Coldpress has revenues of more than £1.6m.
Oncology treatments developer Incanthera (INC) says that skin cancer technology Sol has exceeded expectations in a recent study. Sol has been shown to be effective in penetrating the skin barrier.
A requisition for a general meeting at Primorus Investments (PRIM) has been withdrawn following the proposed board appointments of Rupert Labrum, Hedley Clark and Matthew Beardmore. Donald Strang will leave the board.
SulNOx Group (SNOX) says Nicholas Nelson has resigned from the board but remains as chief executive. Shareholders had requisitioned a general meeting to remove him from the board, but there is no need for this to happen. Nouryon has agreed to manufacture SulNOx’s HFO emulsifier and a diesel conditioner, which will be sold under the brand SulNOxEco diesel conditioner.
Altona Energy (ANR) is seeking to raise up to £500,000 at 6.5p a share. Existing and new investors can subscribe for shares via www.nrprivatemarket.com. The offer is set to last until 15 October. The cash will go towards financing the two rare earth element projects in Malawi and Uganda.
Belvedere Leisure Resorts (BELV) has signed an agreement with Landal GreenParks UK for an exclusive partnership for the leisure park at the Barncosh site until the end of the year. Belvedere will deliver the first 50 units and then the 20-year arrangement will take effect. Belvedere has agreed to acquire the land for the 50 units at a cost of £500,000. Belvedere continues to seek new funds.
Gunsynd (GUN) has invested a further £75,000 in copper/gold explorer Eagle Mountain Mining. Gunsynd owns 1.54% of the ASX-listed company.
AfriAg Global (AFRI) believes that the FCA guidance has given it confidence that its deal with medicinal cannabis company Apollon Formularies will go ahead.
European Lithium (EUR) has raised A$2.1m at 4.5 cents a share and this will be spent on metallurgical test work at the Wolfsberg lithium project. Early Equity (EEQP) has raised £193,000 at 0.5p a share.
Sativa Wellness Group Inc expects to gain admission to the Aquis Stock Exchange on 30 September.
Newbury Racecourse (NYR) non-executive director Dominic Burke has bought 20,000 shares at 700p each. He owns 127,365 shares.
Gold production in Azerbaijan fell in the first half but Anglo Asian Mining (AAZ) is confident it can still hit its full year target of 75,000-80,000 ounces of gold equivalent, which would be slightly lower than the previous year. The higher gold price offset the decline in production from 39,905 ounces to 32,501 ounces. Even though the cost of production increased because of lower volumes and the reduction in grades at the Ugur open pit, pre-tax profit improved from $10.3m to $11.8m. There was $21.4m of cash generated from operations. There is plenty of cash to invest in Azerbaijan and the new venture in Ireland with Conroy Gold and Natural Resources (CGNR). The interim dividend was increased by 29% to 4.5 cents a share and the possibility of a special dividend next year. There was cash of $29.2m at the end of June 2020.
Specialist IFA Frenkel Topping (FEN) has made an indicative all-share offer for personal injury claims generator NAHL (NAH). Frenkel Topping has already acquired 6.11% of NAHL. finnCap forecasts an improvement in Frenkel Topping pre-tax profit from £1.8m to £2.3m in 2020.
NWF (NWF) says that trading is in line with expectations. Fuel volumes are lower than the same time last year because of reduced economic activity, but they are as anticipated. The food distribution trading has been hit by volatility in demand and lower demand from the catering sector. The feeds division has benefited from a stable dairy market.
Spinger-Verlag has increased its stake in DeepMatter (DMTR) from 2.9% to 7.4% following the issue of deferred consideration.
Cyber security services provider ECSC (ECSC) grew managed services and consultancy revenues in the first half, although there was lower utilisation in consulting during lockdown. Consultancy revenues are improving in the second half. There was cash of £1.6m in the middle of September.
Battery technology developer Ilika (IKA) has signed a framework agreement with the UK Battery industrialisation Centre for the production of Goliath solid state pouch cells. This will help with the scale up of production for the batteries aimed at domestic appliances and electric vehicles.
Critical Metals (CRTM) is raising £800,000 at 5p a share. That will more than double the number of shares in issue. Critical wants to buy or acquire stakes in natural resources assets in Africa. The focus will be near-term brownfield projects that can be brought into production. Chief executive Russell Fryer is a former investment adviser in the natural resources sector and founder of Western Uranium Corporation.
Gulf Marine Services (GMS) has received another general meeting requisition letter from Seafox. The removal from the board of Mike Turner, David Blewden, Mo Bississo and Dr Shona Grant is Seafox’s wish. It wants Rasid Al Jarwan, Mansour Al alami and Saeed Mer Abdulla Khoory to replace them.
Auctus Growth (AUCT) is in discussions to acquire HeiQ Materials AG, which is a materials innovation company focusing on the apparel, medical and home textile markets. Trading in the shares has been suspended.
Hawkwing (HNG) is switching from AIM to the standard list on 30 September and raising £1.2m after expenses at 3p a share. That values the shell, which has failed to secure a technology acquisition in the time required by AIM, at £1.5m.
Digital Landscape Group (DLGI) is cancelling its standard listing on 2 October. Trading will begin on the Nasdaq Global Market on 5 October.
Challenger Acquisitions Ltd (CHAL) has received 73.94% acceptances from shareholders in Cindrigo Energy. When other conditions are satisfied the remaining shares will be mopped up and a prospectus prepared for a reintroduction to the standard list.
AQUIS STOCK EXCHANGE
Daniel Thwaites (THW) had net debt of £65.4m at the end of March 2020 and this increased to £71.8m at the end of June following the closure of the company’s pubs and hotels. There is £12m of headroom in the current facilities but management is considering increasing the borrowing facilities. The sites were reopened on 4 July or shortly after. There has been steady growth in sales.
Altona Energy (ANR) has signed heads of agreement to acquire up to 75% of the Chambre rare earth project in southern Malawi. There is a backlog of exploration licence applications following recent elections. The trading suspension will end when new funds are raised. A funding will be launched via investment platform www.NRPrivateMarket.com once an exploration licence is granted in Malawi or heads of agreements are signed for another deal.
SulNOx Group (SNOX) has received a requisition from two shareholders (James Redman Jr and Sungold Escrow Nominees Ltd) for a general meeting. They own more than 5% of the company. A date for the general meeting has to be announced within three weeks.
European Lithium (EUR) has appointed Kimon Gkomozias to the board as part of its strategic agreement with EV technology metals project developer Talaxis. He will help European Lithium obtain funding. A placing is planned to raise $2m at 4.5 cents a share.
Cadence Minerals (KDNC) has obtained agreement in principle for the bank creditor settlement relating to the Amapa iron ore project.
EPE Special Opportunities (ESO) has made a £1.9m investment in Atlantic Credit Opportunities Fund (ACOF), a distressed credit fund. EPE’s investment advisor Epic Private Equity intends to acquire a controlling stake in Atlantic Capital Management, which manages ACOF.
Forbes Ventures (FOR) has set up Forbes Ventures Cell 1 Ltd to acquire UK-issued litigation funding loans. The rights to these loans will be assigned to and securitised by Malta-based Forbes Ventures CC1, which is planning to raise money via a bond issue. A Forbes subsidiary will receive a fee of 2% of the funds raised.
World High Life (LIFE) is assessing investment targets in the medicinal cannabis sector. This includes areas such as synthetic cannabinoids.
Trading in the shares of Sativa Group (SATI) has been suspended while Stillcanna awaits the approval of the Canadian Stock Exchange for the takeover of Sativa. The enlarged group plans to gain readmission to the Acquis Stock Exchange as Sativa Wellness Group Inc.
Alfred Henry Corporate Finance has been appointed as Eastinco Mining and Exploration (EM.P) corporate adviser.
Sumner Group Health Ltd (SGRL) has confirmed its withdrawal from the market on 8 September.
Capital equipment supplier Mpac (MPAC) has continued to secure orders even with the disruption caused by COVID-19. Interim revenues fell by one-fifth to £36.6m, but services revenues continue to grow. Underlying pre-tax profit fell from £4.5m to £2.5m. The order book is worth £45.4m. Net cash was £22.5m at the end of June 2020. Full year pre-tax profit is expected to fall from £7.5m to £5.2m.
CyanConnode (CYAN) was hit by delays to contracts in the 15 months to March 2020, but it appears to have a strong base for the current financial year. The smart meter technology developer is still losing money, but it has shown that it can manage its cash effectively by gaining advance payments on orders. Net cash was £1.2m at the end of March 2020.
Mattress supplier eve Sleep (EVE) says current trading is ahead of expectations and the full year loss is expected to be slightly lower than previously. Net cash of £5m is forecast for the end of 2020.
Cake Box (CBOX) has made a strong start to the new financial year. The franchised retailer of egg-free cakes is even offering a special dividend of 3.2p a share. Equity Development forecasts a rise in earnings per share from 7.8p a share to 9p a share in the year to March 2021.
7Digital (7DIG) has raised £6m at 2.25p a share, having sought a minimum of £5m. The streaming technology developer will be able to take advantage of opportunities in areas such as home fitness and social media.
Musical instruments retailer Gear4Music (G4M) has continued its sales momentum in the new financial year. There will be an interim trading statement on 22 October.
Driver monitoring systems developer Seeing Machines (SEE) has unveiled a new product strategy. This involves a focus on a chip whose performance is optimised by a neural processing unit called Occula. It will be made easier for automotive clients to integrate this technology. There are also plans to licence the Occula technology.
Nostra Tera Oil and Gas (NTOG) is acquiring a 100% working interest in the Caballos Creek oil field in Texas, which has an economic life of between 16 and 32 years. The cost is $425,000 and there should be a two-year payback. There are proved reserves of 92,100 (69,300 net) barrels of oil equivalent. Current production is 30 (22 net of royalties) barrels of oil per day, which increases Nostra Terra’s production by 25%.
Matthew Freud increased his stake in Reach4Entertainment (R4E) to 19.99% before trading on AIM ended.
Omega Diagnostics (ODX) has CE-marked Mologic’s lateral flow antibody test for COVID-19, which picks up infection at an earlier stage than most tests.
Allergy Therapeutics (AGY) has in-licensed the virus-like particle vaccine technology from Saiba and DeepVax for use in solid tumours, atopic dermatitis, asthma and psoriasis. This broadens the scope of the group, but it continues to focus on allergy treatments.
Consumer products supplier Creightons (CRL) increased full year revenues by 9% to £47.8m, while an improved profit margin meant that pre-tax profit increased from £2.87m to £3.55m. A final dividend of 0.5p a share is proposed.
Papillon Holdings (PPHP) has signed heads of agreement to acquire gold assets in Africa. It plans to acquire 100% of Kilmapesa in Kenya and 70% of the Kakamoeka gold project in Congo Brazzaville. They could provide near-term gold production.
Newbury Racecourse (NYR) says that it is confident that it has the resources to trade through the current economic difficulties. Significant losses are expected this year and into next year. There was £1.27m in the bank at the end of 2019. Net assets were £50.9m. Newbury increased revenues by 3% to £19.8m in 2019, while underlying pre-tax profit fell by two-thirds to £490,000.
Blockchain technology and tokens investor KR1 (KR1) reported realised gains of £694,000 in 2019, while staking yields and advisory fees generated £422.000 in income. There was also a net unrealised gain on all investments of nearly £1m. Reported pre-tax profit was £1.36m, compared with a large loss the previous year because of a significant unrealised loss. NAV was £7.47m at the end of 2019.
NQ Minerals (NQMI) is raising a further £447,500 at 7p a share. This also helps to extend the shareholder register. The cash will finance the reopening of the Beaconsfield gold mine.
Cadence Minerals (KDNC) says that the capex on the Yangibana rare earths project, where Cadence has a 30% interest, will be reduced by A$68m (13% of the total) due to the relocation of the processing plant.
Clean Invest Africa (CIA) has secured a contract to produce 10,000 tonnes of ilmenite pellets from tailings sludge. This will increase the effectiveness of the ilmenite and get rid of the sludge. This indicates that there is a broader market for the pelleting technology than just coal.
Eight Capital Partners (ECP) is restructuring its investment in Financial Innovations Team because of a disappointing performance. The investment will be unwound, and the funds invested should be recovered. The stake has been returned to the vendors and a vendor loan has been cancelled and Eight Capital bonds returned. That totals €750,000 out of the aggregate consideration of €1.2m, with a further €100,000 to come. A £1 payment has secured an option to take a 60% stake Innovative Finance.
Incanthera (INC) has filed a new patent for its Sol skin cancer technology. This should extend the life of the Sol patents to 2041.
European Lithium Ltd (EUR) has received the A$1m balance of the $10m finance facility with Winance Investment.
Floorcoverings manufacturer Victoria (VCP) traded strongly in June following a tough three months. There was limited impact on the figures for the year to March 2020 with revenues of £621.5m and like-for-like growth of 0.4%. Higher interest charges held back pre-tax profit to £50.7m. Net debt was £365.9m, with most debt in the form of quoted bonds. There is £174.7m of cash in the balance sheet. This could be used to finance further acquisitions. Pre-tax profit is forecast to decline to £27m this year before improving to £54m next year. The outcomes will depend on the strength and consistency of the recovery.
Peter Gyllenhammar continues to build up his stake in Brand Architekts (BAR) and it has reached 6.1%. He owned less than 3% just over a fortnight ago. This follows the reduction in the stake held by Gresham House Strategic (GHS) to below 3%.
Fortiana Holdings has launched a recommended 300p a share bid for Highland Gold Mining (HGM) and that values the gold miner at £1.09bn. The Highland share price has not hit 300p since 2006.
At the end of March 2020, the NAV of Wynnstay Properties (WSP) was 792p a share. In the first quarter, 100% of rents were received.
Harwood Capital is offering 37.5p a share for property manager HML Holdings (HMLH) and this valued it at £19m.
Goldplat (GDP) says its gold recovery processing operations in South Africa and Ghana have increased profitability in the year to June 2020. South Africa more than doubled its profit contribution and Ghana moved from loss to profit. The higher gold price has offset shutdown periods. here was £3.2m in the bank at the end of June 2020. The loss-making Kilmapesa mine is being sold for an initial payment of $1.5m plus up to $1.5m via a 1% net smelter royalty. An unnamed UK listed company plans to make the acquisition if it raises at least $4m and gains shareholder approval.
Gemfields (GEM) reduced cash operating spending to below $5m in June and that left net cash of $9.3m. There is uncertainty about whether gemstone auctions will be held. If not, more cash is likely to be needed
Coro Energy (CORO) is not going ahead with the disposal of its Italian oil and gas assets Zenith Energy (ZEN) because regulatory approval has not been received.
Shareholders of cash shell Safe Harbour Holdings (SHH) have voted to wind up the company, although one-fifth of the votes were against the resolution. A 74p a share distribution will be made by the end of September and a final distribution is planned by next July.
Tex Holdings (TXH) says it needs additional working capital and is talking to its major shareholder. The plastics division is trading at 70% of expected levels, while engineering is having a difficult year, although orders improved in June. Other parts of the business are suffering delays in orders.
Books publisher Quarto (QRT) reported a slump in revenues from $56.4m to $46.9m, although the underlying loss dipped from $3.7m to $3.3m due to lower interest charges. Cash generated from operating activities was $8.38m. Pre-publication costs fell from $11.9m to $10.3m. Net debt was $36.6m at the end of June 2020.
Spinnaker Opportunities (SOP) says that it believes that the UK review of regulatory requirements for cannabis-related companies is near completion. When this happens Spinnaker should be able to complete the acquisition of Kanabo Research.
A gain on a disposal of an investment by Sure Valley Ventures has helped Sure Ventures (SURE) to increase its NAV to 92.6p a share.
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.
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.
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.
Newbury Racecourse (NYR) says that it plans to host racing during June and July, although there will be no crowd. There will be income from media rights and betting shops are set to reopen on 15 June. The Rocking Horse nursery reopens on 1 June, although the hotel at the racecourse will remain closed. The £2.75m loan from Compton Beauchamp Estates has been extended to April 2022. David Wilson Homes is expected to make the next land payment of £10.98m by then. The 2019 audited accounts should be published by the end of July.
First Sentinel (FSEN) is making an investment in proposed Aquis Stock Exchange company Vulcan Industries. It will pay £234,000 for shares at 3p each and is also providing a convertible loan facility of up to £500,000 with an interest rate of 12%. There is an arrangement fee of £50,000 in shares. The initial stake is 4.56% of Vulcan, which plans to be a consolidator in the engineering sector. First Sentinel has raised £117,000 at 21p a share.
SG Recruitment Ltd (SGRL) is supplying hand sanitiser to the NHS and that should generate £650,000 in gross profit in this financial year. The contract lasts for an initial 11 weeks. In the six months to September 2019, gross profit is £288,000.
Cannabis-focused shell Greencare Capital (GRE) says that it remains in discussions with its principle potential acquisition and other opportunities. As lockdown conditions ease the discussions should gain momentum.
Employee-owned businesses investor and adviser Capital for Colleagues (CFCP) doubled unrealised gains from £630,000 to £1.33m at the interim stage and this helped pre-tax profit improve from £585,000 to £1.28m. NAV was 50.17p a share at the end of February 2020, although this figure has subsequently declined. TG Engineering went into administration in April, but this investment had already been written-off.
European Lithium Ltd (EUR) has secured an agreement with Talaxis for help with completing the definitive feasibility study on the Wolfsberg lithium project. Talaxis has expertise in developing electric vehicle technology metals. An introduction fee of 5% is payable for a debt or equity raising, plus a total of up to 36 million shares depending on the achievement of milestones. There is a minimum one-year non-exclusive period. Creditors and short-term loans of $743,000 have been converted into shares.
KR1 (KR1) investee company Argent Labs has raised a further $12m and this puts a value of $260,000 on the stake in the mobile crypto wallet developer.
Formation Group (FRM) has swung from an operating loss of £137,000 to a profit of £175,000 at the interim stage. This was supplemented by a £766,000 gain on financial assets to generate a £941,000 pre-tax profit. There is £5.18m in the bank and net assets were £21.7m at the end of February 2020.
Investment company Forbes Ventures (FOR) says that it expects its litigation funding project to male progress over the next few months. This should generate cash for the business and other projects are being assessed.
Early Equity (EEQP) increased its interim loss from £68,000 to £344,000. Early Equity has suspended its application to the standard list.
Safestay (SSTY) ended 2019 with 20 hostels across 12 European countries. In 2019, revenues increased by one-quarter to £18.4m and 49% of this comes from outside of the UK. There was a small pre-tax loss, which will increase this year due to closures because of COVID-19. Liberum believes that net bank debt will be £26.3m by the end of 2020. The share price is less than one-third of the NAV of around 56p a share.
In-game advertising technology develop Bidstack (BIDS) has received its first advertising bookings in the US. The company expects significant second half revenues.
Mattress retailer eve Sleep (EVE) says demand improved in April and May putting it in a position to meet full year expectations. A loss of £3.6m is forecast. The online focus has helped because high street retailers have closed. There have also been opportunities to buy TV advertising at attractive rates. The Woodford stock overhang has been cleared.
First quarter trading at fryer management services provider Filta (FLTA) started well and margins were improving. The catering customer base has been hit by the COVID-19 lockdown and Filta is offering additional services. Last year, organic revenue growth was 16%. Net debt was £2.1m at the end of 2019.
Motor dealer Caffyns (CFYN) says it still expects to make a profit in the year to March 2020. Aftersales have restarted and showrooms are set to reopen. There is an annual salary ceiling of £37,500 for all active employees in April. This is being unwound.
Moss Bros (MOSB) bidder Brigadier has decided to withdraw its appeal to the Takeover Panel and the bid needs to be approved by the courts to be finalised.
Path Investments (PATH) has found a new acquisition target to replace the purchase of FineGems. Path is buying a 75% stake in the DT Ultraviolet technology owned by AIM-quoted Zoetic International (ZOE). Path will also acquire the nitrogen reserves and assets owned by Zoetic. The DTU refracking well stimulation technology is cheaper than existing technologies. Path will issue 15 million shares, and 15 million warrants exercisable at 1.5p each, to pay for the assets. Path will also pay a royalty of 5% on DTU revenues.
Cash shell Fandango Holdings (FHP) says the prospectus for the acquisition of an oil well services company is currently being prepared. There will also be a placing.
Avation (AVAP) has ended its formal sales process. Disruption to the aviation sector means that a realistic bid is unlikely.
Cathay International Holdings (CTI) is planning to transfer from a premium to a standard listing even though shareholders did not pass the resolution when it was previously tabled.
Nanoco (NANO) has signed a quantum dot material supply agreement with STMicroelectronics. Initial purchases will generate cash during the rest of 2020.
Seafox international says that is has no longer intends to bid for Gulf Marine Services (GMS).
Brewer Shepherd Neame (SHEP) edged up its interim profit helped by a strong performance from tenanted pubs and lower interest charges. In the six months to end December 2019, revenues were 3% higher at £79m, while underlying pre-tax profit improved 5% to £6.2m. Cost pressures held back the performance of the managed pubs. There was a fall in profit contribution from brewing. Net debt was £84m at the end of 2019. The interim dividend was increased by 2% to 6p a share. Brewing volumes have increased since the period end and like-for-like pub revenues continue to grow, although the rate is slower for managed pubs. Coronavirus has not had an impact yet but it is likely to.
Altona Energy (ANR) is raising up to £400,000 through an open offer to existing shareholders at 6.5p a share. That is a one-third discount to the previous mid-price. The cash is required to acquire a new petroleum exploration licence application in South Australia and the maximum will provide 12 months working capital. This will enable assessment of an in-situ gasification project. There is also potential for wind and solar projects in the area. There was an overdraft of £96,000 at the end of June 2019. The latest time for acceptance is 31 March.
European Lithium (EUR) reported a dip in interim income in 2019 from $23,817 to $3,365, while the loss was flat at $2.3m. There was $32,000 in cash at the end of 2019. There are convertible notes valued at $1.1m, some of which have been subsequently converted, but more have been issued.
KR1 (KR1) has been hit by weak Bitcoin and other cryptocurrency prices, but it had already banked some of its profit. The value of the remaining portfolio has dropped sharply. There will be an update shortly.
Rutherford Health (RUTH) has requested a subscription of £9.64m at 176p a share under the Woodford Commitment at the time of the company’s flotation. LF Equity Income Fund, formerly LF Woodford Equity Income Fund, will own 28.8% of the proton beam therapy company. This is the final subscription under the agreement.
Former investment banker Dr Keith Harris has been appointed as executive chairman of SAPO (SAPO) and Selwyn Lewis is joining the board as an executive director.
Fuel emulsification company SulNOx Group (SNOX) has filed an international patent application for its technology. It has already filed for the patent in the UK. The technology can be used for many fuels but the focus is diesel and heavy fuel oil.
Cannabis investment company World High Life (LIFE) has raised £2.36m from two issued of convertible loan notes with a 10% coupon. The conversion price is 100p a share.
Trading in First Sentinel 7% bonds, February 2023, First Sentinel preference shares and EPE Special Opportunities 7.5% unsecured loan stock, 2022 has been suspended because of the market maker temporarily withdrawing from market making activities.
OnTheMarket (OTMP) has ended its litigation with Connells and its subsidiary Gascoigne Halman. The property portal had already won a judgement in a Competition Appeal Tribunal and it was seeking the recovery of further damages. Earlier in the week, Ian Springett was dismissed as chief executive of OnTheMarket. He has a 12 month contract and earns £250,000 a year.
Geospatial software provider IQGeo (IQG) reported an increased loss last year, but that masks the progress made. Third party revenues declined. In 2019, total revenues fell from £9.98m to £7.81m, however, own product revenues increased from £4.74m to £5.55m, while recurring revenues contributed £1.63m, up from £918,000. More people were employed in sales and product development and operating expenses jumped from £6m to £9.5m. That is why the loss increased from £1.6m to £6.17m. There was still £13m left in the bank at the end of 2019, following £11m spent on buying back shares.
Mass spectrometry instruments developer Microsaic Systems (MSYS) continues to add to its partners. Last year, revenues rose 51% to £870,000 with the benefit of the newer agreements still to come. Higher development spending meant that the loss edged up to £3.1m. There was £2.62m in the bank at the end of 2019 and management admits it is assessing its options in terms of raising more cash.
Concrete levelling equipment supplier Somero Enterprises Inc (SOM) had a stronger second half, following the profit warning in the first half due to bad weather. The outcome in 2019 was slightly better than the previously downgraded expectations. Even so, revenues fell 5% to $89.3m and pre-tax profit was down by a similar percentage. The dividend was reduced by 1% to 18.75 cents a share. The additional dividend relating to excess cash (net cash was $23.8m) is 7.7 cents a share. Increased costs mean that there could be a further decline in profit this year.
Mark Greenwood has further increased his stake in Richland Resources (RLD) by buying the market and acquiring shares in a placing at 0.12p a share, which raised £100,000 for the company. Greenwood’s stake is 18.5%. The share price is one of the few AIM risers this month.
The Panoply Holdings (TPX) has acquired consultancy Ameo Professional Services, which generates 9-% of its revenues from the public sector. Ameo made a pre-tax profit of £1m last year and is being acquired for £7m in cash and shares, plus the distribution of £1.3m in excess cash.
Molecular diagnostics developer Yourgene Health (YGEN) is acquiring its French distributor and this will be immediately earnings enhancing. Yourgene will still make a loss in 2020, but the following year earnings per share will improve from 0.18p to 0.23p.
Open Orphan (ORPH) has reported positive results for the phase IIb field study of FLU-v vaccine, which has been developed by a 49%-owned joint venture. The results have been published in a journal. IP Group has cut its stake to below 3%.
Redx Pharma (REDX) says it has received a bid approach from Yesod Bio-Sciences, which is considering offering 15p a share. Redmile Group is making a mandatory offer of 15.5p a share, following its purchase of the 39.5% stake owned by Moulton Goodies, which obtained most of its shares at 5.25p each when it capitalised its £2.5m loan. Redmile owns 45.5% of Redx, which is valued at £29.5m. The board recommends the bid.
Brickability (BRCK) has made its second acquisition in one month. It is paying £6m for plastic fascia and guttering merchant U Plastics, which made a pre-tax profit of £1.3m in 2019.
Moss Bros (MOSB) has agreed a 22p a share bid that values the suit hire and retail company at £22.6m. The bid vehicle is owned by people involved in the apparel sector, including Michael Shina of Crew Clothing. The main executives will be retained.
Motor dealer Lookers (LOOK) has discovered accounting irregularities. The fraudulent transactions in one of the operating divisions mean that the 2019 figures will be delayed until late April. These transactions should not be significant for the group. Chief operating officer Cameron Wade has resigned.
Standard list shell Hertsford Capital (HERT) has agreed the acquisition of oil services provider OTAQ Group for £12.4m through an issue of shares at 57.5p each (post-consolidation). A placing will raise £1.5m at the same price. OTAQ designs and supports products for the aquaculture and offshore oil and gas sectors. The focus is on growing the aquaculture operations. The company will change its name to OTAQ and be readmitted on 31 March.
Sure Ventures (SURE) is raising £250,000 at 100p a share, which is a premium to NA of 95.74p a share. This followed news of an investment by 25.9%-owned Sure Valley Ventures in AI security company Getvisibility. The fund has invested €750,000. The cash will be used to expand the business internationally.
Spinnaker Opportunities (SOP) has spent more than one year trying to finalise the acquisition of cannabis processor Kanabo Research and a commitment to invest £1.4m has been secured. At the end of 2019, there was £597,000 left in the bank.
Dev Clever (DEV) is acquiring Phenix Digital, a digital agency focused on the educational sector. It is paying £100,000 in cash and 3.57 million shares. There is an existing relationship between the two companies.
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%.
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.
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).
Netalogue Technologies (NTLP) increased its revenues by 26% to £1.35m in the year to March 2019. Pre-tax profit jumped from £82,000 to £300,000 thanks to the ecommerce technology provider keeping overheads flat. There is £770,000 in the bank. Netalogue will consider paying a dividend when it reports its interim results. Netalogue focuses on the B2B market and it continues to win new customers.
European Lithium Ltd (EUR) has secured a A$10m finance facility in the form of convertibles from Winance Investment, which replaces the existing facility. The company is still seeking a strategic investor to help finance the development of the Wolfsburg lithium project.
None of the three Morgan Ashley extra care schemes that Ashley House (ASH) was expecting have closed. They could close over the next couple of months, but Ashley House was hoping to get the cash and it is investigating additional funding.
Trading in the shares of Equatorial Mining and Exploration (EM.P) was restored after the annual report was published. There was a £221,000 loss in 2018 but the business is very different now. A placing has raised £400,000 at 0.01p a share. The date for completing the acquisition of tantalum business Eastinco has been extended until the end of September. This is a part of the strategy to consolidate mining operations in Rwanda. Align Research believes that Equatorial could generate revenues of £1.19m this year, rising to £9.19m in 2020, which would enable it to make a pre-tax profit of £1.77m.
Social impact company Inqo Investments Ltd (INQO) increased its revenues from R23m to R23.8m in the year to February 2019, while additional finance income and fair value adjustments meant that the loss was cut from R5.99m to R2.5m. There was also an increased share of revenue from Bee Sweet Honey in Zambia. Trading is improving at Kuzuko Lodge with room rates and occupancy rising thanks to the weak Rand.
Coinsilium Group (COIN) says that its Gibraltar-based blockchain consultancy has signed a new advisory agreement with IOV Labs Ltd. This involves supporting the RSK Smart Contract Network and RSK Infrastructure Framework blockchain services. These are focused on Asia.
Eight Capital Partners (ECP) has launched a bond to raise up to €5m and it will be traded on the Vienna Stock Exchange. The interest rate is 7% and the redemption date is 26 July 2022.
Transport services provider Xpediator (XPT) has not performed as well as hoped this year and earnings estimates have been cut by one-quarter. There has also been some additional investment in the business, which will double central costs.
Information management software provider IDOX (IDOX) has raised £7m via a placing at 28.5p a share, which will be used to finance the acquisition of Northern Ireland-based Tascomi for up to £7.15m. Tascomi is a cloud-based software supplier to local authorities.
Beximco Pharmaceuticals (BXP) has launched a fifth product in the US. Blood pressure drug Nadolol is the generic equivalent of Corgard tablets. The market is worth $63m.
Elektron Technology (EKT) is selling its original Bulgin electricals business for £105m, £94m after costs, and intends to return a substantial amount of the cash to shareholders. Net cash will be £95m after the transaction. The company will change its name to Checkit and become a Software-as-a-Service business.
The Property Franchise Group (TPFG) says that its lettings brands grew revenues by 3% in the first half. Online estate agency EweMove increased revenues by 11%. Group revenues were £5.5m in the first half. Net cash was £2.8m at the end of June 2019. Ian Wilson will step down as chief executive at the end of 2020.
Property adviser Fletcher King (FLK) reported an improvement in full year pre-tax profit from £274,000 to £282,000 on slightly lower revenues. Management says that market conditions will make it difficult to maintain profitability, although there are substantial funds available for investment when the uncertainty ends. The total dividend is maintained at 1.75p a share. There is £2m in the bank.
Digitalbox (DBOX) subsidiary Daily Mash will publish video content from NextUp on its site. This will enable the company to generate advertising on the back of the videos.
A US customer has released Nanoco (NANO) from the obligation to pay back £4.25m of capital funding. This relates to the investment in the Runcorn facility where demand for nanomaterials has not come through from the customer. The book value of the facility, after depreciation, is £3.7m and may be written down further, along with the value of some materials. The facility is available if Nanoco can secure demand from customers.
BATM (BVC) has completed the sale of its stake in a new fibre optic network being developed in Israel. This should generate cash of $3.4m and add $3m to profit. Net cash could be $38m bythe end of 2019.
Oil and gas company Zenith Energy (ZEN) has secured the financing it requires for its drilling programme. A placing in Canada has raised the equivalent of £1.2m at C0.04 a share.
Trading in the shares of Associated British Engineering (ASBE) has been suspended because it has not published its accounts. This should happen this week.
Standard list shell Landscape Acquisition Holdings (LAHL) still has more than $496m in cash and it has done well to preserve the cash it raised when it floated at the end of 2017. There is a broad remit, but the main focus is a property-related/backed business in Europe or North America.
Stranger Holdings (STHP) is still seeking to close a reverse takeover after its first deal fell through. The shell is in talks to acquire local government supplier HCS. There is no cash in the bank and Stranger has net liabilities.