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Andrew Hore – Quoted Micro 26 April 2021

AQUIS STOCK EXCHANGE

Shepherd Neame (SHEP) in common with other brewers and pub companies has been hard hit by the closure of pubs. Monthly cash burn during pub closures is £1.5m-£2m. Unsurprisingly, interim revenues slumped from £79m to £55.3m, while an underlying pre-tax profit of £4.88m was turned into an underlying loss of £4.81m. Bottled beer sales were one-quarter higher as people bought the bottles for home consumption. Net debt was £92.4m at the end of December 2020 and had reached £96.5m by the end of March. More than 200 pubs with gardens have reopened and all 316 will be open by 17 May.

Revenues fell by one-third to £50.7m at brewer Adnams (ADB) in 2020. Online sales were 245% higher. This led to a loss of £4.3m. Beer volumes fell by 23% and spirits volumes by 31%. There is no dividend and reduced investment meant that net debt was reduced.

Gunsynd (GUN) has invested £50,000 in the unquoted Media Tech SPAC at 4p a share. The SPAC raised £1.64m and it plans to float in the second half of 2021. Riverfort Global Capital and Sure Valley Ventures are involved in the SPAC, which is focused on media and technology investments, and the latter might want to reverse one of its investments into the company. The sale of shares in Empress Royalty and Eagle Mountain raised £218,000 for Gunsynd.

John Mahtani, who is chief executive of Media Tech SPAC, has increased his stake in Quetzal Capital (QTZ) to 6.08%, while Chris Akers has raised his stake to 15%.

NFT Investments (NFT) has made its first investment. A $1m investment has been made in AEON International, which develops technology for the luxury fashion industry. Hong Kong-based AEON has a customer base that includes Gucci and Louis Vuitton. The AUTHENTIQUE subsidiary offers NFT-based verification technology in order to combat counterfeit goods. A product is being developed that would use unique fashion NFTs and smart contracts to enable fashion brands to earn royalties when a product is resold. NFT is paying its board and management in cryptocurrency.

NQ Minerals (NQMI) says the Hellyer mine generated gross revenues of $17.9m and net profit of $4.8m in the first quarter of 2021.

Interim sales of Wheelsure Holdings (WHLP) more than halved from £116,000 to £56,000, although management expects the second half to be stronger. The interim loss increased from £75,000 to £117,000. Since the end of the interim period, a further £50,000 has been raised and a government loan of the same amount secured. Management is seeking new markets for its rail safety equipment.

Chapel Down Group (CDGP) has completed the disposal of Curious Drinks and each of the minority shareholders will receive 1.57 Chapel Down shares for each Curious share they owned. This has resulted in 1.26 million additional shares being issued.

Watchstone Group (WTG) is seeking to switch from AIM to the Apex segment of Aquis. This should happen on 30 April. Watchstone is classified as a cash shell and trading in the shares would be suspended on AIM on 4 May if no acquisition had been made. The board is pursuing litigation relating to past businesses. This could result in cash being returned to shareholders. Watchstone is also seeking new investments.

Valereum Blockchain (VLRM) has purchased bitcoin mining hardware and they should be up and running in the US within one month. The plan is to have mining operations in a range of geographies.

Indorse, in which Coinsilium (COIN) has a 10% stake, has released a digital analysis tool, which scans the data on NFTs and their underlying assets. Coinsilium also owns 14.12% of the IND tokens in circulation.

Wishbone Gold (WSBN) has filed its drilling plans for the Red Setter project in the Pilbara region of Western Australia. There could be up to 30,000 metres of drilling over four years.

Tyndall Investment Management has taken a 6.85% stake Oncology treatments developer Incanthera (INC) and directors and employees have also added to their stakes at process between 13p a share and 13.5p a share.

Arbuthnot Banking (ARBB) has generated £3m from the sale of shares in Secure Trust Bank (STB) at £12 a share. The stake has been reduced to 4.4%.

Veni Vidi Vici (VVV) has raised £220,000 at 50p a share. Vulcan Industries (VULC) has raised an additional £30,000 at 3.9p a share. A subscription at 85p a share has provided Startup Giants (SUG) with £190,000.

SulNOx Group (SNOX) has moved to the Apex segment of the market.

AIM

Grease management services provider Filta (FLTA) has been hit by the closure of restaurants and venues, particularly in the US. Revenues fell by one-third last year and the company fell into loss. Trading levels are moving back to previous levels, but the progress depends on the reopening of some of the larger US venues and stadia. There should be a return to profit this year, but it will take until 2022 for a profit to exceed past levels.

The was another positive trading statement from telecoms billing and customer relationship management software provider Cerillion (CER) following a first half of record orders.

Nu-Oil and Gas (NUOG) will lose its AIM-quotation on 5 May because it has not completed a takeover. There is a proposed acquisition of Guardian Barriers IP and Guardian Maritime, but if this goes ahead the plan is to obtain a standard listing. Guardian has developed a product that can be retrofitted to ships in order to prevent pirates from boarding vessels.

Churchill China (CHH) was still profitable in 2020, but pre-tax profit slumped from £11.2m to £800,000. There was £1.8m of cash generated from operations and net cash was £14m at the end of 2020. There is no dividend. Sales of hospitality ceramics halved during the year.

Cora Gold Ltd (CORA) has announced results from its latest drilling campaign at the Sanankoro gold project in southern Mali. The initial results suggest that there could be a significant increase in the DCF valuation of the project, which was £37.8m. The drilling should be completed by the end of July and there will be continuing news flow over the coming months.

MobilityOne (MBO) is not going ahead with the proposed acquisition of Tanjung Pinang Resources.

Team (TEAM) has decided not to make an offer for Tavistock Investments (TAVI).

MAIN MARKET

MGC Pharmaceuticals (MXC) is acquiring Israeli clinical research company MediCaNL in shares for up to A$6m and it will be used to run the company’s clinical trials. That will reduce costs and lead times. Three clinical trials are planned for cannabis-based treatments in 2021.

Town Centre Securities (TOWN) has collected or deferred 92% of the due rent of £5.1m in the latest quarter. The deferred element is £600,000. The other £400,000 remains due and discussions with tenants are ongoing. Since last March, there is £1.8m of rents that remain due. The company has sold the Thornton’s Chambers property in Leeds.

Interim revenues of J Smart Contractors (SMJ) declined from £9.25m to £5.75m, but costs declined at a higher rate so pre-tax profit improved from £265,000 to £890,000. Net cash was £11.1m at the end of January 2021. The interim dividend is unchanged at 0.95p a share. Building materials costs are rising and a lull in contracting work will hit profit. Management believes that property assets should have retained their value even though a valuation will not take place until the end of the year. NAV is £99.6m, while the market capitalisation is £52m.

Standard list shell Marwyn Acquisition Company III (MAC3) has raised £12m from an issue of A shares and is considering a £200m fundraising.

Tirupati Graphite (TGR) has opened its second mine at the Vatomina project in Madagascar. The processing plant will be commissioned in the second quarter of 2021. Last week. £10m in and oversubscribed placing at 90p a share. That is double last year’s flotation price.

Wildcat Petroleum (WCAT) has signed two memoranda of understanding. The first is with Crown Energy for its participation in a future initial coin operation by Wildcat. A model to monetise hydrocarbon blocks based on blockchain technology. Crown has blocks in Madagascar, South Africa and Iraq. Nabirm Global has a Namibian exploration licence and the deal is the same as with Crown.

Andrew Hore

Andrew Hore – Quoted Micro 22 March 2021

AQUIS STOCK EXCHANGE

Rogue Baron (SHNJ) has sold a shipment of 857 cases of Shinju Japanese whisky in the US. Each case of six bottles sells for up to $150. There was a total of 9,000 bottles of Shinju sold in 2020. US sales are growing so quickly that the company has decided to focus on the market and delay moves into other markets.

KR1 (KR1) has invested a further $150,000 in Vega Protocol in exchange for 194,999.17 VEGA tokens and made an initial $200,000 investment in the Starks Network. KR1 has also generated a further 77,542.92 Polkadot tokens and they were sold for $1.85m. KR1 still has nearly 3.5 million Polkadot tokens. Mona Elisa has been appointed as a non-executive director.

Block Commodities (BLCC) and Century Cobalt Corporation have entered an option agreement to acquire a 70% interest in a medicinal cannabis licence granted to Magnus Cannabis Group in Zimbabwe. Each of the buyers will hold a 35% interest. The option fee is £50,000. The payment for the interest will be £1.5m in Block shares at 0.07p each and £1.5m of Century Cobalt shares. Block no longer intends to acquire Sierra Leone-based Greenbelt Company.

Chris Akers has increased his stake in Quetzal Capital (WENP) from 9.4% to 15.2%.

Love Hemp (LIFE) has signed a five-year sponsorship agreement with UFC.

David Rigoli is joining the board of Veni Vidi Vici (VVV) and he has an interest in electric vehicle commodities.

AfriAg Global (AFRI) is holding a general meeting on 12 April to gain shareholder approval for the reverse takeover of Apollon Formularies Ltd. AfriAg will change its name to Apollon Formularies.

Wheelsure Holdings (WHLP) has raised £25,000 at 13.5p a share.

AIM

Online fashion retailer In The Style (ITS) joined AIM last week. The share price increased from the 200p placing price to 235p. Existing shareholders raised £46.8m from share sales, while there was £9.1m net raised by the company. There will be more investment in the technology platform and there are plans for an international version of the company’s app.

Underlying 2020 revenues at digital payments business Boku (BOKU) were one-fifth higher at $56.4m helped by a six-month contribution from Fortumo. Profit grew even though there was a higher loss from the identity division. There was net cash of more than $50m at the end of 2020, although that includes cash held on behalf of others. In 2021, there should be further growth in digital payments and an improved performance by the identity division.

Trading at document management and technology recycling business Restore (REST) has continued to improve since the second quarter of last year. In 2020, revenues fell from £216m to 3183m, while pre-tax profit dipped from £36m to £23m. This year pre-tax profit should be getting back towards the 2019 level. There are opportunities for further add-on acquisitions.

Futura Medical (FUM) says that erectile dysfunction topical gel formulation MED3000 should be certified as a class 2B medical device which can be obtained without a prescription. This could happen by May. US approval is also progressing.

Diagnostic data provider and analyser Diaceutics (DXRX) was able to launch its DXRX platform at the end of 2020 and it is already winning projects and building up recurring revenues. In 2020, revenues declined from £13.4m to £12.7m and Diaceutics fell into loss. It should return to profit this year.

Renewable energy company Bion (BION) has opened an office in the UK in order to expand in Europe. Two biogas plants in Malaysia are selling electricity generated from biogas produced from palm oil mill effluent. Another two plants will be generating electricity in the next few months.

Trans-Siberian Gold (TSG) has recommended a 118p a share mandatory cash offer from Horvik, which has already agreed to acquire a 51.2% stake.

Telit Communications (TCM) is releasing DBAY Advisers from its restriction on making a bid within six months of previously ending bid talks.

Waterford Finance and Investment is making a mandatory offer for former AIM company Gulfsands Petroleum having bought the stake previously owned by ME Investments for £3.43m. Waterford is also taking ownership of the convertible loan notes owned by ME. Waterford had a 37.3% stake in Gulfsands and it is deemed to be acting in concert with Blake Holdings, owned by Richard Griffiths and James Ede-Golightly. The Waterford stake in the Syria-focused oil and gas company has increased to 52.45% and the combined stake is 83.93%. The bid is 4.035p a share.

CEPS (CEPS) subsidiary Hickton Group has acquired gas and electrical safety consultancy Millington Lord for up to £1.1m.

Dye and Durham no longer intends to bid for IDOX (IDOX), which has sold its Netherlands grants consultancy.

Tremor International (TRMR) has made a filing with the SEC ahead of a potential US listing. Tremor believes it would get a rating more in line with US Ad Tech companies.

Kodal Minerals (KOD) has raised £3.5m at 0.125p a share. This will be used to develop the Bougouni lithium project in Mali and to fund exploration of three gold projects.

MAIN MARKET

Caerus Mineral Resources (CMRS) joined the standard list last Friday after raising £1.92m net at 10p a share. The share price rose to 13p. Caerus is exploring for copper, gold and silver in Cyprus, having acquired New Cyprus Copper, which owns 70% of a company with 12 exploration licences in four project areas in Cyprus. Completion of a work programme will earn a further 20% stake in the subsidiary with the opportunity to acquire the other 10% within 12 months of the work programme for A$2m.

Supply@ME (SYME) has signed heads of agreement to acquire Singapore-based commodities trade enabler TradeFlow Capital Management.

Standard list shell Marwyn Acquisitions Company 1 (MAC1) is raising £130m at 100p a share. Vin Murria has joined the board and she will be investing £17.5m for a 13.1% stake. Murria is likely to seek a large international software acquisition for this vehicle.

Sanofi is terminating its licence agreement with Oxford Biomedica (OXB) but there should not be any significant impact on medium-term revenues.

Toople (TOOP) continues to reduce monthly cash burn. The proceeds of a sale of 1.05 million shares at 0.06p each by the wife of the boss of a subsidiary will be used to repay a £462,000 loan.

OTAQ (OTAQ) has invested $150,000 and converted its loan notes in Minnowtech, which has developed an imaging product using OTAQ sonar technology. This gives OTAQ a 15.2% stake.

CML Microsystems (CML) says shareholders should receive 50p a share in cash by 26 March. Net cash will be more than £30m after this payment, which comes out of the proceeds of the disposal of the storage division. The continuing communications business generated slightly higher revenues in the second half than in the first half. Orders are improving.

Antimicrobial materials technology developer HeiQ (HEIQ) has signed a five-year contract with ICP, which develops thin film coatings for packaging. ICP will use HeiQ Viroblock in its coatings. This could be worth $8m in the first two years. Over five years the royalty revenues should be $30m. This follows a deal with Berger Paints, which could generate $600,000 over one year.

BATM Advanced Communications (BVC) has received around $29m for the completed disposal of NGSoft. The cash will be reinvested in network function virtualisation and molecular diagnostics.

Andrew Hore

Andrew Hore – Quoted Micro 15 March 2021

AQUIS STOCK EXCHANGE

Rogue Baron (SHNJ) joined the Aquis Stock Exchange on Friday. The company is a spirits brand developer, and its focus is the Shinju Japanese whisky brand and specialist tequila Copa Imperial Tequila. The idea is to build these and other niche brands to the point where larger drinks companies will want to acquire the brand. There was £755,000 raised at 7p a share. The share price ended the first day of trading at 8p (7p/9p).

Gunsynd (GUN) has already more than trebled the value of its investment In Rogue Baron, which was worth more than £1.8m, including accrued convertible interest, at the time of flotation. Gunsynd holds a 28.5% stake. Chris Akers has increased his stake in Gunsynd from 5.36% to 6.19%.

Sativa Wellness (SWEL) has taken more than £1.1m of bookings for its Covid-19 testing clinic business. This has been achieved by the Bath clinic and a further clinic has opened, plus 13 in-pharmacy and two mobile clinics. There could be 30 clinics by the end of April, ready for the easing of lockdown.

KR1 (KR1) has invested $200,000 into Automata Network’s seed funding round.

IamFire (FIRE) made a loss of £162,000 in the six months to October 2020. During the period, investments were made in WeShop and Bio2pure.

Upper Thames Holdings (UPPT) has net liabilities of £83,000 at the end of 2020 and since then £516,000 has been raised. The board will seek approval to change the company’s name to Valereum Blockchain.

Quetzal Capital (WENP) is raising £3m at 4p a share and issuing enough warrants exercisable at 8p to raise a further £3m. This will help to fund a reverse takeover or investment. NQ Minerals (NQMI) has raised a further £255,000 at 7p a share. Bluebell Investment and Consulting has invested £25,000 in Wheelsure Holdings (WHLP) at 13.5p a share, which represents a 4.9% stake. Altona Rare Earths (ANR) has raised a total of £800,000 at 6.5p a share from placings.

Western Selection (WESP) has increased its stake in Bilby (BILB) by 698,737 shares at an average share price of 35.11p each. This takes the stake to 12.2%.

All Star Minerals (ASMO) has appointed SP Angel as broker.

AIM

AMTE Power (AMTE) raised more than initially expected in the flotation and this should provide the cash required for investment in the battery cells development business. AMTE raised £11.3m at 175p a share. The share price jumped to 233.5p on the first day of dealings. The battery cells nearing commercialisation are aimed at the high-performance vehicles, oil and gas equipment and energy storage markets. There are currently 16 potential clients that products are being developed for.

Engineer Avingtrans (LON: AVG) is raising £35m from the sale of the Peter Brotherhood business that came with the £52.7m acquisition of Hayward Tyler in September 2017. Peter Brotherhood was estimated to be worth £9.3m of that cost. Borrowings will be paid off. Net cash is expected to be £22m at the end of May 2021.

Kape Technologies (KAPE) is acquiring Webselenese for $149.1m. This provides the group with a consumer platform for privacy and security content, which will generate information and data on consumer trends. In 2020, the acquired business generated revenues of $64.5m and EBITDA of $30.7m. In 2021, Kape is expected to increase earnings from 15.8p a share to 25.4p a share.

Billing and customer relationship management software provider Cerillion (CER) has won a Middle East contract worth £5m over five years. The implementation will take up to 18 months.

Getech (GTC) is raising up to £6.25m via a placing and open offer at 22p a share. The cash will be invested in developing hydrogen products and services.

Online merchandising technology provider Attraqt (ATQT) improved its full year revenues by 8% to £21m, helped by an initial contribution from AI firm Aleph. The loss was reduced from £4.4m to £2.6m. Annualised recurring revenues were £21.1m at the end of 2020. A £500,000 loss is forecast for 2021 before a move into profit in 2022.

Cloud-based PCI payment services provider PCI Pal (PCIP) is gaining momentum in the US. In the six months to December 2020, revenues rose by 56% to £3.2m. More of these revenues are coming via channel partners. Total annual contract revenues were 59% ahead at £8.3m. There should be enough cash in the bank to get the company to the point where it is generating cash.

Shoe Zone (SHOE) says that it does not expect to pay a dividend until at least 2025. The footwear retailer expects to continue to lose money this year. The stores are closed at the moment.ch

Online women’s fashion retailer Sosandar (SOS) has agreed to sell a specialist collection of its products through Marks and Spencer (MKS). This follows deals with Next and John Lewis.

Coral Products (CRU) is repaying its £1.6m property mortgage out of the proceeds of its recent disposal. The £2.5m valuation of the Haydock site is expected to be increased in the next accounts. Coral has also repaid £500,000 of its CBIL loan with the other £433,333 likely to be paid before the year-end.

Business restructuring company Begbies Traynor (BEG) is acquiring of David Rubin & Partners for up to £25m. This takes the group’s market share to 12%. There is an initial £12m payable and the rest depends on performance over five years. Begbies raised £22m at 105.5p a share to help finance the deal, which should be immediately earnings enhancing.

Arden has upgraded its Dekel Agri-Vision (DKL) forecasts due to higher crude palm oil and palm kernel oil prices. This means that Arden expects Dekel to be profitable in 2021.

MAIN MARKET

Avation (AVAP) is raising £7.5m at 110p a share and this provides additional cash at a difficult time for the airline industry. NAV was previously 174p a share. Avation could continue to lose money for the next two years Net debt will still be more than $1bn.

Challenger Acquisitions (CHAL) is entering into a deal to acquire Cindrigo Energy, which owns Cindrigo Ltd, the company where a previous offer lapsed. The business is a developer of renewable energy projects using Swedish expertise in waste-to-energy and biomass. The shareholders of the target company will own 96.5% of the enlarged business.

Kanabo (KNB) has signed a production and supply agreement with PharmaCann Polska for cartridges containing Kanabo’s medicinal cannabis formulations. The initial production capacity is up to 36,000 cartridges. FastForward Innovations (FFWD) has sold its stake in Kanabo for a profit of £140,000. FastForward has also sold its Cellular Goods (CBX) for a £54,000 gain.

Argo Blockchain (ARB) has raised £26.8m at 200p a share and this cash will fund the purchase of a further stake in Pluto Digital Assets. The £7.3m investment in Pluto will maintain the Argo stake at 25%. AIM-quoted Pires Investments (PIRI) owns 6.4% of Pluto.

The Financial Reporting Council has started an investigation into the audit of motor dealer Lookers (LOOK) by Deloitte for 2017 and 2018.

Wheaton Precious Metals (WPM) is increasing its first quarterly dividend by 30% to 13 cents a share. The strategy is to pay 30% of average cash generated by operating activities in the previous four quarters.

Pharmaceuticals developer Nuformix (NFX) is raising £1.565m at 2p a share. This cash will finance preclinical studies for the NXP002 inhaled formulation for lung disease and further research and development of formulations. Nuformix is waiting to see whether Oxilio will option the NXP001 cancer treatment. This option expires on 24 March.

Andrew Hore

Andrew Hore – Quoted Micro 7 December 2020

AQUIS STOCK EXCHANGE

Newbury Racecourse (NYR) has completed the sale of 1.2 acres of land on the northern perimeter of the racecourse for £1.5m. That is equal to book value.

NQ Minerals (NQMI) is able to draw down from its recently arranged $55m loan facility between its subsidiary Hellyer Gold Mines with ING. The cash is being used to pay off previous debt.

Wheelsure Holdings (WHLP) improved revenues from £178,000 to £235,000 in the year to August 2020, but there remain potential delays to sales. That is particularly true of Transport for London because of its financial problems. The loss was slightly reduced from £224,000 to £203,000. Wheelsure has moved from net liabilities to net assets of £7,000.

Four new directors have been appointed to the board of SulNOx (SNOX) following a general meeting and they have replaced the previous directors. Radu Florescu had previously been a director of the company. Shareholders have also given them permission to issue shares.

Trading has recommenced in Altona Energy (ANR) shares after £138,000 was raised at 6.5p a share. Further cash will be required in the next four months. Indications have been received from investors that a move to AIM or the standard list could enable Altona to raise £1m. Due diligence is being completed on the two rare earth acquisition targets in Malawi and Uganda. Christian Taylor-Wilkinson has been appointed chief executive.

Quetzal Capital (WENP) made a pre-tax profit of £276,000 in the year to June 2020. That was due to creditors accepting 7.5p in each £1 they were owed. Business opportunities are being assessed.

Wishbone Gold (WSBN) has applied for a new exploration licence in northern Queensland, which is 15km north west of the Ravenswood gold mine.

IOV Labs Ltd is investing £330,000 in Coinsilium Group (COIN) at 3p a share. One warrant will be issued for each two shares and the exercise price is 4.5p a share. IOV can appoint a director to the board, having increased its stake to 13.9%. Coinsilium says that it has enough cash until January 2022.

BWA (BWAP) reported an interim loss of £2.91m, which reduced net assets to £2.43m. The Cameroon business has marked out two licence areas and the first sampling has been undertaken with the lab results expected. BWA had written off its stake in the Prego prepaid debit card business, but there is a potential takeover by a Canadian listed company.

Belvedere Leisure (BELV) has issued £872,000 of 6.25% secured bonds, September 2025. This takes the number in issue to £979,000.

AIM

Floorcoverings manufacturer Victoria (VCP) produced better than expected interims. Peel Hunt increased its full year pre-tax profit forecast from £9.4m to £28.7m, while earnings are set to improve from 5.6p a share to 17.4p a share. There should be further significant recovery next year, but by then further acquisitions will have been made so the group will be different.

Springfield Properties (SPR) has gained planning approval for its first private rental development in Scotland. It is for 75 family homes at the company’s Bertha Park Village. Springfield will build the homes under a fixed cost contract and hand them to the PRS provider. This provides additional, predictable cash flow.

Online fashion retailer Sosandar (SOS) increased interim revenues by 52% to £4.3m even though marketing spending was reduced. Conversion rates are improving. Sales through John Lewis and Next started in August. The loss was reduced from £2.79m to £1.1m. Marketing has been stepped up and there has been further growth in revenues during the autumn. There was still £4m in the bank at the end of November 2020.

Digital TV software Mirada (MIRA) reported a 5% reduction in interim revenues to $5.5m due to Covid-19 related delays. Allenby forecasts a decline in full year revenues from $13.2m to $11.5m and the loss is expected to increase from $1.42m to $3.26m. Net debt could rise to $8.45m by the end of March 2021. Next year, the loss should be lower and Mirada should be cash generative so net debt would reduce by March 2022.

AssetCo (ASTO) has launched a tender offer for 6.53 million shares at 411p each. That will return £26.9m to shareholders. Following payment from former auditor Grant Thornton, AssetCo should have cash of around £55m.

Tavistock Investments (TAVI) has postponed a general meeting designed to pass a new long-term incentive plan for executive directors Brian Raven and Oliver Cooke. There has been unfavourable feedback from shareholders.

The Property Franchise Group (TPFG) has made a bid approach to fellow residential lettings business Hunters Property (HUNT).

Nucleus Financial (NUC) has received a bid approach from IntegraFin Holdings (IHP) and the offer is likely to be in cash. Aquiline Capital and Allfunds (UK) are also considering offers. Sanlam UK owns 52% of Nucleus.

DBAY Advisers has acquired shares in Telit Communications (TCM) at 194.8p each, so any potential bid will have to be at least at this price.

Invinity Energy Systems (IES) is raising £20.5m via a placing at 175p a share and up to £2m more could be raised through a one-for-64 open offer. The cash will help to scale up production of its vanadium flow batteries.

Pires Investments (PIRI) is subscribing for a 15% stake in decentralised finance company DeTech Studio and it will also be issued four million YOP tokens. YOP is the decentralised finance platform that DeTech is developing. The plan is to make it easier for non-experts to use. The yop token will facilitate engagement with smart contracts on the Ethereum network.

MAIN MARKET

Tirupati Graphite has launched its fundraising ahead of a standard listing on 11 December. It is raising £6m at 45p a share, which would capitalise the company at £33.6m. The cash will be invested in mining and processing of graphite.

Marwyn has launched three new shells on the standard list. Marwyn Acquisition Co I Ltd (MAC1), Marwyn Acquisition Co II Ltd (MAC2) and Marwyn Acquisition Co III Ltd (MAC3) are all seeking acquisition targets in media, technology and healthcare that can take advantage of digitalisation. Directors of past Marwyn shells are investors in the new shells. Each company has issued 700,000 shares at 100p each.

Standard list shell Mining Minerals (MMM) is in discussions with a potential strategic investor.

Andrew Hore

Andrew Hore – Quoted Micro 15 June 2020

AQUIS STOCK EXCHANGE

Wheelsure Holdings (WHLP) has published results for the year to August 2019 and the subsequent interims. Following these announcements, trading in the shares has resumed. There was strong growth in the interim figures with revenues of £116,000 but there was still a loss of £75,000. The working capital facility has been increased to £500,000.

Cannabis products supplier World High Life (LIFE) says it intends to list on the Canadian Stock Exchange. Revenues were £1.05m in the nine months to March 2020. Write-offs meant that the loss was £11.3m. Subsidiary Love Hemp’s online sales in May were double the level in January. Sales have switched from high street to online. There will be a rebrand in September

Engineering businesses consolidator Vulcan Industries (VULC) has raised a further £179,000, including £65,000 raised by share issues to employees at 2p a share. There were also shares issued at 4.25p each. The placing price was 3p a share and creditors are taking shares at that price valued at £175,000 in lieu of flotation costs. The current share price is 4.5p (4p/5p).

Gunsynd (GUN) is raising £600,000 at 0.65p a share and this will be used for further investments.

KR1 (KR1) has participated in the Plasm token distribution. KR1 has 1,232 Ether (ETH) valued at $253,000 which it has agreed to be locked up. Access will be obtained in three intervals over 1,000 days. In return for the lockup KR1 receives 66.3 million Plasm tokens. Plasm is launching a platform on the Polkadot blockchain.

Cadence Minerals (KDNC) has raised £650,000 at 9p a share. The cash will be used to help develop the Amapa iron ore project and pay off loan notes. The stockpile of iron ore should be shipped during the summer. Cadence and the joint venture partners are in discussions with creditors. A scoping study will be commissioned.

The Australian government has approved the acquisition of the Beaconsfield gold mine in Tasmania by NQ Minerals (NQMI). This will enable the mine to be reopened. NQ Minerals has raised £119,000 at 7.5p a share.

Walls and Futures REIT (WAFR) has sold a residential property in Wimbledon Park for £656,000, so that it can reinvest the cash in the core supported housing business. The sale was at a 3% discount to book value.

British Honey Company (BHC) has launched a Special Charity Edition Premium Vodka to raise money for COVID-19 research. One-quarter of sales revenues will go towards funding this research.

Lombard Capital (LCAP) has completed the purchase of a property in Preston. Barry Fromson has been appointed as chief executive and Barry Fitzpatrick as non-executive chairman. Trading in the shares has been suspended.

Sport Capital Group (SCG) had an investment property and nearly £12,000 in the bank at the end of 2019. NAV is £206,000.

AIM

Bahamas Petroleum (BPC) and Columbus Energy (CERP) are merging. Columbus shareholders will receive 0.803 of a BPC share for each share they own. Columbus was valued at £25m when the deal was announced. Columbus will generate cash to help finance exploration by BPC.

Escape Hunt (ESC) is raising up to £4m via a placing and one-for-four open offer at 7.5p a share and a convertible loan note issue of £340,000. The escape rooms operator says all the directors are buying shares. The intention is to spend £2.5m on rolling out more sites and the rest will go on operational improvements and working capital. Five or six new sites are planned in the next 12 months. UK sites were growing revenues prior to lockdown.

Hummingbird Resources (HUM) intends to acquire the Kouroussa gold project from Cassidy Gold Corp. First gold production could be within two years. There is a gold resource of 1.18Moz at >3g/t.

Hawkwing (HNG) plans to move to a standard listing. Formerly TLA Worldwide, trading in the shares is suspended because the shell has not found a suitable acquisition. Hawkwing would lose its AIM quotation in September without an acquisition. There is no time limit on acquisitions for shells on the standard list.

Ilika (IKA) had cash of £14.9m at the end of April 2020. The battery technology developer is choosing a fabrication facility for the manufacture of its batteries. Four potential partners are in the running. A tool that will increase productivity has been ordered and should be delivered by the end of 2020.

Dekel Agri-Vision (DKL) produced less crude palm oil during May because of a decline in fruit delivered to the mill. There were 3,316 tonnes of crude palm oil produced in May, down from 5,316 tonnes in May 2019. However, more was sold during the month because of the much higher production in April. The average price received per tonne increased.

Be Heard (BHRD) has received a bid approach of 0.5p a share from MSQ Partners.

MAIN MARKET

Lower energy prices have led to a fall in the net asset value of JLEN Environmental Assets (JLEN) but it continues to generate cash and pay dividends. NAV has fallen from 104.7p a share to 97.5p a share. Total dividends were 6.66p a share last year and the target for this year is 6.76p a share. JLEN is joining the FTSE 250 index on 22 June.

Air Partner (AIR) is raising £7.5m at 75p a share. Profit was ahead of budget in the four months to May 2020 with strong freight demand. There is also recovery in the private jets market. The cash will fund organic growth including the opening of offices in new locations.

Seafox International has attempted to requisition a general meeting at Gulf Marine Services (GMS) in order to appoint its representatives to the board. GMS says that the requisition is not valid in its current form. Hassan Heikal and Hesham Helbouny are the proposed directors.

Boston International Holdings (BIH) has secured a new £200,000 loan facility from a major shareholder. The plan is to acquire invoice factor Alexanders Discount.

Associated British Engineering (ASBE) is selling its interest in British Polar Engines and this will mean that it will no longer have any commitments to the pension fund. There will be no debt if the deal goes ahead.

Small Cap Awards 2020

The shortlist for the 2020 Small Cap Awards has been published. The awards are for quoted companies with a market capitalisation of less than £200m. This year the awards dinner has been cancelled. Instead, there will be a live virtual awards ceremony held via Zoom on 25 June. There are eleven awards for companies and individuals.

 

Company Of The Year

Yourgene Health

Volex

Renalytix AI

SDI Group

Ergomed

Judges Scientific

 

IPO Of The Year

Diaceutics

Brickability Group

Essensys

Argentex Group PLC

Loungers

Pebble Group

 

Executive Director Of The Year

Matt Jones – CEO of Blancco Technology Group

Giulio Cerroni – CEO of Ixico

Lyn Rees – CEO of Yourgene Health

Jennifer Winter – CEO of Animalcare

Peter Harrison – CEO of Bioventix

David Cicurel – CEO of Judges Scientific

 

Transaction Of The Year

Centralnic Group – Team Internet

Rockrose Energy – Marathon Oil and Marathon West of Shetland Limited

Kape Technologies – Private Internet Access

Amryt Pharma – Aegerion

Totally – Greenbrook Healthcare

Inspiration Healthcare acquisition of Vio Holdings

 

Technology Company Of The Year

SRT Marine Systems

Oxford Metrics

Blackbird

Avacta

Blancco Technology Group

Reneuron

 

Innovative Financing Of The Year

Yu Group PLC

Simec Atlantis Energy

1pm PLC

Symphony Environmental

 

Impact Company Of The Year

Good Energy

Eden Research

ITM Power

Inspired Energy

Jubilee Metals

Ilika

 

Analyst Of The Year

Kartik Swaminathan, Arden Partners

Peter McNally, Panmure Gordon

Jens Lindqvist, Investec

Lorne Daniel, Finn Cap

Kai Korschelt, Canaccord Genuity

George O’Connor, Stifel London

 

Journalist Of The Year

Simon Thompson – Investors Chronicle

Michael Taylor – Investors Chronicle

Mark Shapland – Evening Standard

Joanne Hart – Mail on Sunday

Emma Agyemang – Financial Times

Hannah Godfrey – Professional Adviser

 

UK Smaller Companies Fund Manager Of The Year

ASI UK Smaller Companies – Harry Nimmo

JPM UK Smaller Companies – Georgina Brittain and Katen Patel

M&G Smaller Companies – Garfield Kiff and Rory Alexander

Invesco UK Smaller Companies Equity (UK) – Jonathan Brown

TM Cavendish AIM B – Paul Mumford

Kames UK Smaller Companies – Elaine Morgan

 

VCT Manager Of The Year

Amati AIM VCT PLC – Dr. Paul Jourdan, David Stevenson, Anna MacDonald

Unicorn AIM VCT PLC – Chris Hutchinson

Octopus AIM VCT 2 PLC – Kate Tidbury

Maven Income and Growth VCT 1 PLC – Bill Nixon

Seneca Growth Capital VCT PLC – John Davies

Hargreave Hale AIM VCT 1 – Oliver Bedford

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 10 February 2020

NEX EXCHANGE

Wheelsure Holdings (WHLP) is in discussions with providers of additional finance. Sales increased and costs were reduced in the year to August 2019. Two-fifths of sales come from Transport for London, where the Tracksure locking device is mandatory for one application.

The transfer of the exploration licence for the area surrounding the Hellyer gold mine to NQ Minerals (NQMI) has been approved.

Gunsynd (GUN) says that its 6.18%-owned investee company Brazil Tungsten is short of cash and needs to raise money at a discounted share price or go into administration. The value of the investment has already been written down and it is in the balance sheet at £400,000, which is 17% of Gunsynd NAV. This could be written down to nil.

Smaller company investor Gledhow Investments (GDH) made a £110,000 gain on disposals after overheads. The NAV was £884,000 at the end of September 2019, compared with a market capitalisation of £500,000 at 0.95p/1.25p. There was cash of £125,000 at the end of September 2019. This was before the £95,000 gain (£220,000 proceeds) on the disposal of shares in Yolo Leisure and Technology, now Asimilar (ASLR), and the takeover proceeds of £81,000 for Netalogue Technologies.

Rutherford Health (RUTH) has treated more than 100 cancer patients at its proton beam therapy centres.

IamFire (FIRE) has reduced non-core costs and is seeking acquisitions that do not require a lot of capital. The hydrocarbon licences in Botswana have been relinquished. An interim profit was reported, but there was a £88,000 cash outflow from operating activities because trade payables were reduced.

Gowin New Energy 2% preference shares (GWPT) have been admitted to NEX. Up to £5m of preference shares will be issued. The cash will be loaned to the tea business of 15%-owned Goyoung International.

AIM

Telecoms hardware manufacturer Filtronic (FTC) reported lower interim revenues from continuing activities but margins improved because of a change in product mix. Capacity is being increased at the Sedgefield factory. There was £121,000 in the bank at the end of November 2019. That is before the $5.5m from the disposal of the antennas business. Growth is coming from defence and mmWave (X-Haul products) that are used in the 5G mobile market.

More good news from Touchstone Exploration Inc (TXP) as the results of the test well at Cascadura were better than expected. The rate during the test was more than 5,000 barrels of oil equivalent per day. There will be a pressure build up test. There should be further news in March. Shore has increased its risked NAV estimate by one-fifth to 48p a share.

Andalas Energy and Power (ADL) has appointed Leslie Peterkin as chief executive and Mark Rollins as chairman. They have experience in the oil and gas sector. Andalas also raised £525,000 at 0.15p a share, which was a 20% premium to the market price, and most of the cash came from the two men. Dr Robert Arnott and Simon Gorringe have stepped down from the board. The company is changing its name to Advance Energy.

DP Poland (DPP) increased system sales by 13% last year with 3% like-for-like growth. The pizza stores operator improved its performance during the year and there was an acceleration of growth in the second half. DPP has 69 stores with six opened last year. There was still £3.6m left in the bank at the end of 2019.

Volvere (VLE) has made another food manufacturing acquisition. Essex-based Indulgence Patisserie is in administration and the desserts maker is costing £1.25m. Freehold premises and equipment is being acquired. The business lost £230,000 on revenues of £3.3m. Volvere already owns pie maker Shire Foods, which has an overlapping customer base.

PCI-Pal (PCIP) says interim revenues were 70% higher at £2m. Total annual contract revenues are £5m. There is a small net debt figure with a further £1.25m of facilities. The PCI compliant payment services provider will still lost money this year.

Mergers adviser K3 Capital (K3C) reported improved interim figures even though trading conditions remained tough. A full year pre-tax profit of £7.4m, similar to two years ago, is forecast. The interim dividend was raised from 3.6p a share to 3.7p a share and the total dividend is expected to increase from 7.6p a share to 11.4p a share. If K3 can maintain its interim margins, then the full year outcome could be better.

Argentina-based oil and gas producer President Energy (PPC) had a disappointing 2019 with revenues declining by 13% to $41m because of an oil price cap. The company traded at breakeven. A return to a significant profit is expected in 2020.

Greatland Gold (GGP) says that maiden drilling at Derby North on the Warrentinna project in Tasmania has intersected high-grade gold mineralisation. This is more good news following the plans to announce a maiden resource for Havieron before the end of this year. NCM has spent enough money to earn a 30% stake in Havieron. This will be increased to 40% after another $10m of spending.

MAIN MARKET

Nuformix (NFX) says that it still has not received the £2.5m it is owed by NSB. Despite assurances the money has not been paid and the therapeutics company’s contact has been dismissed. Dave Tapolczay has resigned as chairman.

Standard list shell Stranger Holdings (STHP) had £100,000 in the bank at September 2019 and it has started the fundraising process for the reverse takeover of two companies with technology mineral assets in Africa and the US.

Social media company Iconic Labs (ICON) is generating revenues and has relaunched the Gay Star N website, which is trading better than expected. Icon is still trying to sort out its historic financing agreements and difficulties. Additional facilities have been provided by the existing finance provider, which has agreed to reduce previous amounts owed by 30%. Again, though, the new finance is in the form of convertibles, so yet more shares are likely to be issued.

Landscape Acquisition Holdings (LAHL) expects the proposed acquisition of AP WIP Investment, which generates rental income from wireless telecom assets, in early 2020. There is $501m in the bank and the acquisition should cost $333m.

Andrew Hore

Andrew Hore – Quoted Micro 8 July 2019

NEX EXCHANGE

AIM-quoted Aquis Exchange (AQX) is acquiring NEX Exchange from CME Group Inc, which bought it as part of its £3.9bn takeover of NEX Group. Aquis will pay £1, plus £2.7m for working capital requirements. The deal requires FCA approval so it is unlikely to complete before the autumn.

Arbuthnot Banking Group (ARBB) is purchasing a residential mortgage portfolio for £258m. The loan portfolio has £266m outstanding and the yield is 3.6%.

Equatorial Mining and Exploration (EM.P) is raising £1.3m via a share issue at 0.1p a share and loan notes worth £904,000, which are convertible at the same share price. The cash will be used to acquire Rwanda-based Eastinco.

MESH Holdings (MESH) has reached an early agreement to exercise the option to acquire Sentiance. MESH will issue 4,000 shares for each Sentiance share. Sentiance will have €19m in cash when the deal completes. More than 404 million MESH shares will be issued, which is nearly two-thirds of the enlarged share capital. Trading in the shares is suspended until a circular is published in order to gain shareholder approval.

The forecast 2018-19 loss for health and community care properties developer and modular buildings supplier Ashley House (ASH) has been increased from £1m to £1.6m following clarity about what deals were signed prior to the year end. A return to profit is expected this year.

Ace Liberty and Stone (ALSP) has announced a third interim dividend of 0.84p a share. The ex-dividend date is 11 July.

NQ Minerals (NQMI) has extended its A$4m loan facility to 5 September. The two month extension cost A$160,000.

Gunsynd (GUN) has invested a further $130,000 in Oyster Oil and Gas, taking its stake to 30%.

Trading in Ganapati (GANP) shares has been suspended because accounts for the year to January 2019 have not been published.

Wheelsure Holdings (WHLP) has appointed Cairn as its corporate adviser.

AIM

Science Group (SAG) has launched a 35p a share cash bid for Frontier Smart Technologies (FST) and that is higher than the indicative offer of 30p a share. Frontier advises that shareholders take no action and says that it has received approaches from other parties and there are discussions with one of them about the structure and pricing of any deal.

Independent directors of FFI Holdings (FFI) are recommending a bid of 25p a share, which values the film completion insurance provider at £39.5m. The mandatory offer comes two years after FFI floated at 150p a share.

IMImobile (IMO) continues to grow strongly in the Americas and Europe with 42% growth in revenues last year. The cloud and mobile services provider increased total revenues by 28% to £142.7m, with organic growth of 14% on a constant currency basis. Net debt was £7.5m at the end of March 2019 and cash generation is strong. Thee was £14.6m generated from operating activities last year.

Plastic components and packaging producer Synnovia (SYN) has refinanced its debt. The maximum amount available is £25.3m. The maturity has been extended from June 2021 to June 2023. The full year results will be published on 9 July.

Bango (BGO) has partnered with appScatter (APPS) in order to help the latter’s app development clients to grow in-app revenues.

Gfinity (GFIN) has generated better than expected revenues in the year to June 2019. The esports company expects to breakeven by 2021.

Mirriad Advertising (MIRI) is raising £14.18m via a placing at 15p a share, while an open offer could raise up to £3.94m. Revenues remain modest and the cash is required to cover continuing losses. Cash consumption is running at £1m a month and 2019 revenues of £1.1m are anticipated.

Churchill China (CHH) has generated higher than expected revenues in the hospitality sector, particularly in Europe. Full year trading will be ahead of expectations. The interims will be announced on 29 August.

Mirada (MIRA) is raising £2.1m from the sale of its Mirada Connect car park payment services business to part of VW. The business generated revenues of £633,000 and pre-tax profit of £122,000 in the year to March 2019. This will enable Mirada to concentrate on its digital TV business, where annual revenues are approaching $12m. Mirada had net debt of $4.9m at the end of March.

LightwaveRF (LWRF) has signed an agreement with Google to jointly market Lightwave compatible smart speakers that provide voice-controlled lighting.

Intelligent Ultrasound (MED) has secured its first OEM agreement for its AI-based imaging software and the share price nearly doubled on the back of the deal. The technology will be integrated into ultrasound systems. Initial royalties are expected in 2021.

Cellcast (CLTV) plans to sell its operating subsidiary to its management team, but it is unlikely to generate a good price because of its poor performance. The company will become a shell. Fraser Cropper of e-cigarette company Totally Wicked has taken a 3.7% stake.

MAIN MARKET

InnovaDerma (IDP) has reassured investors that it is on course to more than double pre-tax profit to £1.5m in the year to June 2019. The pharma and beauty products supplier had £1.7m in the bank at the end of June 2019, which is better than expected. It is still down from £1.9m one year earlier.

Associated British Engineering (ASBE) has appointed FRP Advisory to find a buyer for loss-making British Polar Engines Ltd. There is a deficit of £1.35m on the pension scheme.

Argo Blockchain (ARB) has announced further outperformance by its crypto mining activities as the bitcoin price continues to recover. The company had £3.07m of crypto assets in the balance sheet at the end of June 2019, which is more than £200,000 more than expected. Additional equipment is being acquired.

Rainbow Rare Earths (RBW) is raising £4.3m at 3p a share. The money will finance production growth at the Gakara rare earth project. There should be some cash left to pay for additional drilling.

Papillon Holdings (PPHP) has revised its 2018 accounts. The original version did not reflect two transactions with director James Longley.

Gulf Keystone Petroleum (GKP) has paid an initial dividend of 5.68p a share with a further dividend double that level (depending on exchange rates) due to be paid after the interim figures are published.

Boston International Holdings (BIH) has returned from suspension following the termination of the reverse takeover of Cornhill FX, which was first announced in August 2017. Boston could not raise the cash required. Management is assessing future strategy. The costs of the proposed transaction mean that cash is below £150,000, which is less than 50% of share capital.  

Andrew Hore

Andrew Hore Quoted Micro 24 June 2019

NEX EXCHANGE

Proton Partners International (PPI) has set up a partnership with Northumbria Healthcare NHS Foundation Trust, which means that the company’s Rutherford Cancer Centre North East will treat 120-150 patients a year. Woodford Investment Management has a 46.15% stake in Proton.

AfriAg Global (AFRI) intends to increase its stake in medicinal cannabis company Apollon Formularies to 2.34%. The long-term plan is to make an all share offer for Apollon. The Jamaican operation of Apollon has completed its third cannabis harvest. AfriAg has raised a further £250,000 at 0.1p a share. Sativa Group (SATI) has appointed Cenkos as its corporate adviser and broker, replacing Peterhouse. Stanford Capital has been appointed as joint broker of medicinal cannabis products developer Ananda Developments (ANA) and Peterhouse is staying on as corporate adviser and joint broker. Stanford has been issued with 3.33 million warrants exercisable at 0.45p each.

First Sentinel (FSBN) has published its 2018 figures, which were hit by a loss on its investment in Curzon Energy (CZN) and this led to a halving of NAV to £671,000. There are plans for a £7m bond listing on Euronext. Trading in First Sentinel shares has recommenced.

Since the year end, rail safety products developer Wheelsure (WHLP) has received further orders from London Underground, DLR and Siemens in Germany. Wheelsure may need additional working capital.

Gunsynd (GUN) will receive 225 shares (22.5%) in Oyster Oil and Gas Ltd as part of a settlement with creditors. Oyster requires additional cash in order to finance work on exploration assets.

Skills verification platform Indorse, where Coinsilium Ltd (COIN) has a 10% stake, will receive an investment of up to $6.5m from Brand Capital, the investment arm of India media company Times Group. Indorse has been valued at $15m for this investment, which means that Coinsilium’s stake has increased in value by 350% to $1.5m.

AIM 

ULS Technology (ULS) has maintained its share of conveyancing transactions and reported flat pre-tax profit of £5.4m in the year to March 2019. This year will also be one of consolidation. Investment is being put into launching DigitalMove, which is an online platform that will make the business more efficient and provide access to additional customers. It can also be used to add new products and services.

Castleton Technology (CTP) is paying a maiden dividend of 1p a share. The provider of software and managed services to the social housing sector is expected to grow revenues by 7% this year and this could be supplemented by acquisitions. Strong cash generation means that there are spare debt facilities that can be used for acquisitions. This year pre-tax profit is forecast to improve from £5.6m to £6.4m.

Malvern International (MLVN) says that an unsettled claim means that there will be a profit shortfall in 2018. Originally a profit of £400,000 was expected but it will end up being just above breakeven. Trading in the first four months of 2019 is ahead of budget but the second half is the most important.

ClearStar Inc (CLSU) is on track this year even though the US market has softened. US unemployment has edged up, but the US remains the key market for the background checking services provider.

Telecoms marketing services provider Pelatro (PTRO) has won a contract with a large telecoms company in Asia. The contract is for the mViVa contextual marketing platform on a licence fee model. This contract and other recent work will add $1.5m to revenues. This provides an underpinning for the full year revenues forecast of $10.5m.

Diaceutics (DXRX) has acquired 16 million patient records a year to add to its patient data. Diaceutics has invested £1m to expand this global data.

Totally (TLY) has completed the acquisition of Greenbrook, which means that 90% of revenues will be generated by urgent care services. This deal should make Totally significantly profitable and enable it to start generating cash.

Some good news for Quartix (QTX) as subscriptions and new installations are increasing. This has led to a 5% upgrade in forecast 2019 revenues for the telematics business to £25.3m, although the profit forecast is unchanged at £6.5m.

Paragon Entertainment (PEL) intends to appoint an administrator following discussions with its bank, HSBC. There is not enough cash to pay all creditors.

MAIN MARKET 

Sports Direct International (SPD) is making a mandatory offer for GAME Digital (GAME) at 30p a share. The offer is open until 11 July. Sports Direct already has a 38.5% stake and it does not believe GAME can prosper on its own.

A major US customer is not going ahead with a contract with Nanoco (NANO) lasting until the end of 2019. The ending of the deal has nothing to do with the performance of the nanomaterial technology. Nanoco should have £6m in cash at the end of 2019.

BigDish (DISH) says its food booking platform is going live in Reading and Brighton, which is a particular region where expansion is targeted. BigDish says that it is fully funded to 2021.

Andrew Hore

Andrew Hore – Quoted Micro 3 June 2019

NEX EXCHANGE

BWA Group (BWAP) has conditionally agreed to acquire share capital of a company with rights to five mining projects, predominantly in Quebec. The company is majority owned by Canadian Stock Exchange listed St-Georges Eco-Mining Corp and the total cost of the deal is C$7.5m (£4.3m). This will be paid in unlisted, convertible, interest-free loan notes. The repayment date will be three years after issue. The notes are convertible at 0.5p a share, or the market price of a share if it is higher. BWA will subscribe for C$300,000 (£170,000) of shares in St-Georges. BWA needs to raise at least £500,000 to go ahead with the deal.

Chapel Down Group (CDGP) increased 2018 sales by 10% to £13m. Turnover from wine and spirits and from Curious Drinks grew by similar percentages. However, a pre-tax profit of £253,000 to a loss of £850,000 as overheads were doubled to £5.57m. There is still £12.8m in the bank even though there was a cash outflow from operations and £8.37m of capital investment. There are 635 acres of vineyards that have been planted and a further 388 acres will be planted on the North Downs.

Wealth management firm AFH Financial (AFHP) increased interim revenues by 61% to £36.6m and underlying earnings per share were 49% higher to 14.9p a share. AFH continue to acquire IFA firms. Funds under management totalled £5.4bn and that is expected to nearly double within five years.

St Mark Homes (SMAP) has net assets of 130p a share, which is a discount of around one-third to the share price bid/offer of 85p/90p. The dividend was maintained at 5.5p a share, providing a yield of more than 6%. In 2018, revenues increased from £120,000 to £294,000, but underlying pre-tax profit declined to £80,000, because of higher overheads and a lower contribution from joint ventures. The regional housebuilder intends to release capital from existing developments to fund other opportunities in the outer London Boroughs.

Coinsilium (COIN) reported near-trebled revenues of £1.68m in 2018, but a pre-tax profit of £121,000 was turned into a loss of £982,000. That is due to much higher overheads and a £973,000 impairment of current assets. There was £592,000 in the bank at the end of 2018. Most of the revenues came from advisory services to blockchain companies. That business has moved to Gibraltar.

KR1 (KR1) made reduced realised gains in 2018 and there was an unrealised loss on investments, compared with an unrealised gain in 2017. The total pre-tax loss was nearly £11m. The NAV fell from £13.6m to £6.11m.

Capital for Colleagues (CFCP) increased the value of its investments by around £630,000, which reflects performance and prospects. Even without that unrealised gain, the loss declined. The NAV of the employee-owned businesses investor rose from 41.5p a share to 48.1p a share at the end of February 2019.

European Lithium (EUR) is commencing a drilling programme to confirm part of the inferred resource at the Wolfsburg lithium project in Austria. This data will be used in the definitive feasibility study.

In the six months to February 2019, Wheelsure Holdings (WHLP) reduced its loss from £181,000 to £126,000. Revenues remain small but they grew from £44,000 to £61,000. There were orders from Germany in the period, but Netherlands and Austria were delayed. Lower overheads helped to reduce the loss.

Cancer therapy provider Proton Partners International Ltd (PPI) generated revenues of £1.47m in the year to February 2019. There was cash generated from operations but that was dwarfed by £42.3m of capital investment. Additional cash has been raised since the year end.

In 2018, the revenues of Chinese treatments supplier MiLOC (ML.P) dipped from HK$11.6m to $10.7m, while the reported loss more than doubled to HK$37.9m. That was mainly due to a royalty fee related to AKFS Plus haircare brand. There was HK$2.75m in the bank at the end of 2018. Since then, HK$3.45m (£334,000) has been raised in a placing at 28.5p a share.

Cannabis investor Sativa Investments (SATI) has secured a commercial offtake agreement with a Portuguese supplier of cannabis oil. This will be included in products produced in Somerset.

Barkby Group (BARK) has secured a new six-year lease for the Rose and Crown Inn, near Swindon. This is the second lease from Arkell’s Brewery.

TechFinancials Inc (TECH) says 75%-owned Footies Ltd has completed its sports ticketing system demonstration product. This will enable it to approach potential football club clients. It is still hopeful that it can sign one up this year. Ian Ayre has stepped down from the Footies board.

Investment company Eight Capital Group (ECP) had net assets of £668,000 at the end of 2018. The investments include shell companies Abal Investments (ABAL) (formerly Imaginatik) and Sport Capital Group (SCG) which has net assets of £206,000 at the end of 2018.

Investment fund manager Startup Giants (SUG) still had £646,000 in the bank at the end of 2018.

Trading in the shares of Angelfish Investments (ANGP), London Capital Group (LCG), Black Sea Property (BSP) and Gamfook Jewellery (GAMF) is suspended because they have not published their 2018 accounts. Gamfook has replaced its auditor and will not publish accounts before the middle of July. Allenby has ceased to be nominated adviser and broker, as well as NEX corporate adviser, to PCG Entertainment. Trading in PCG shares is already suspended because of a potential reverse takeover.

AIM  

Ramsdens (RFX) has acquired another four stores trading as The Money Shop and 12 loan books from Instant Cash Loans. This takes the number of stores acquired to 22 and the loan books to 17. Ramsdens says that there will be a small contribution to profit in the first year. The additional stores will be rebranded as Ramsdens and it has 163 stores. The 2018-19 figures will be published on 12 June.

Ideagen (IDEA) has gained a new £1.2m, three-year SaaS contract with an airline. The software will be used for safety incident reporting. Ideagen is expected to report a 2018-19 pre-tax profit of £12.2m.

Volvere (VLE) is returning up to £16.6m via a tender offer at 1290p a share, a premium of 12% to the market price when it was announced. Recent disposals have generated £25.6m, which took the cash pile to £36.2m. Management says it requires around £20m of cash for ongoing requirements.

Stride Gaming (STR) has received a bid proposal from Rank Group. A 151p a share offer is being considered. Stride floated four years ago at 132p a share.

TSX Venture Exchange company Hunt Mining Corp is offering 10.76 shares for each share in Patagonia Gold (PGD) and this values the target at £17.2m. The bid is recommended, and Patagonia shareholders will own 80% of the enlarged company. Hunt is producing silver and gold in Argentina and Patagonia has assets in the same region.

Nautilus Mineral Services (NAUT) wants to cancel its AIM quotation. A general meeting has been set for 24 June and shareholders owning 73.4% agree with the proposal. A matched bargain facility is planned.

Suits manufacturer Bagir (BAGR) still has not received the remaining cash investment of $13.2m from Shangdong Ruyi, which has requested an extension and wants to change the terms of the deal.

AfriTin (ATM) says that it expects to ramp up production at the Uis tin mine in the fourth quarter. The initial phase of the plant will be able to produce 60t/month of tin concentrate.

AssetCo (ASTO) says that Grant Thornton has been granted permission to appeal the judgment against it relating to the auditing of past AssetCo accounts.

Tavistock Investments (TAVI) has ended its strategic alliance with Lighthouse Group (LGT) because of the Quilter takeover of the IFA.

MAIN MARKET 

Aptitude Software (APTD) plans to sell Microgen Financial Systems for £51m. Previously, this business was going to be demerged on AIM. There should be £48.4m after expenses and a majority of this will be returned to shareholders.

Standard list shell Fandango Holdings (FHP) has ended acquisition discussions with Konnect Mobile Communications because it could not raise the funds it required. There was £8,000 in the bank at the end of February 2019.

Novo Holdings has exercised its option to subscribe for 6.57 million Oxford Biomedica (OXB) shares at 690p each. Novo will own 10.1%.

Summerway Capital (SWC) had £5.69m in cash at the end of February 2019. Potential acquisitions have been identified.

Toople (TOOP) has raised £662,000 at 0.35p a share and it will use £150,000 as final settlement of £601,000 of loans from David Brieth. There was £1.15m in the bank at the end of March 2019. There was a cash outflow of nearly £1m in the previous six months. Last September’s placing was at 0.3p a share.

Cathay International Holdings (CTI) has been fined £411,000 by the FCA due to a breach of listing principles. These relate to the preparation of forecasts and monitoring of financial performance, as well as a failure to provide information in a timely manner. Chief executive Jinyi Lee and finance director Eric Siu were both deemed to be involved in the breaches but they are considering an appeal.

Andrew Hore

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