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Quoted Micro 4 November 2019

  • BY: Andrew Hore |
  • POSTED: 04/11/2019 |

NEX EXCHANGE

Chapel Down Group (CDGP) has managed to generate 92% of 2018’s record harvest in volume terms for the company’s wines. This was achieved even though the weather was not as good this summer. Some vineyards produced their first crop and are still maturing.

Belvedere Leisure Resorts plans to gain a quotation on the NEX Growth Market for its bonds on 22 November. The company is a subsidiary of Belvedere Leisure Park, which owns a site in Dumfries & Galloway with planning permission for a lodge park resort of 444 holiday lodges. The park will be built by Landal GreenParks. The bonds will offer a coupon 6.25%. An initial £10m of bonds will be admitted with a maximum of £25m expected to be raised.

First Sentinel (FSEN) is seeking shareholder approval to issue Green Finance preference shares, which would be quoted on NEX. The cash raised will be invested in the renewable energy sector. A general meeting will be held on 18 November. Warrants have been exercised at 10p a share and this has raised £400,000 for First Sentinel.

Mechanical and electrical design and installation company Field Systems Design Holding (FSD) reported a decline in revenues from £25.9m to £21.8m in the year to May 2019. Higher gross margins meant that the decline in the pre-tax profit was limited and it fell from £625,000 to £553,000. Water generated four-fifths of revenues, up from 48% the previous year. There are no solid spending forecasts, as yet, for the latest water capital investment period for between 2020 and 2025. This causes some medium-term uncertainty. The order book is worth £8.2m, compared with £12m one year earlier. There is a pension surplus.

KR1 (KR1) has made three more investments in blockchain-related tokens. A $100,000 cash investment and payment for advisory expertise will earn 1.017% of Vega tokens issued. Vega is developing a decentralised and censorship-resistant blockchain trading platform. A further $266,220 has been invested in Edgeware smart-contract platform tokens and they will be locked up for 12 months. KR1 will receive 1,000 Ether and this will translate into 3.8 million Edgeware tokens. KR1 has spent $50,000 on a minimum stake of 0.625% in Commonwealth Labs, which is helping to market the Edgeware platform.

Allenby Capital has published a research note on cannabis products supplier Sativa Investments (SATI) and it forecasts revenues of £1.64m in 2019 and £5.15m next year. This will not be enough to make Sativa profitable. Allenby believes that it may have to raise £6m next year to cover its cash outflows and maintain net cash. Sativa has changed the brand name from George Botanicals to Goodbody Botanicals.

Imperial X (IMPP) has raised £347,000 at 2.5p a share. This represents 27.3% of the enlarged share capital.

NQ Minerals (NQMI) increased lead concentrate production at the Hellyer mine from 5,452 tonnes in the second quarter to 6,656 tonnes in the third quarter, but zinc and pyrite concentrate production declined. However, recovery levels have improved for both lead and zinc.

BWA Group (BWAP) intends to sell its investments in Prepaid Card Services and a mining project in Cameroon. They are in the balance sheet at a value of £608,000. The focus will be gold explorer Kings of the North. St-Georges Eco-Mining is converting £300,000 of the £2.45m of convertible loan notes at 0.5p a share. This is equivalent to 23.75% of the enlarged share capital. The loan notes were issued to acquired Kings of the North Corp. BWA is still waiting for £88,000 of the £100,000 of convertibles issued for cash.

Black Sea Property (BSP) has published its 2018 accounts, but it will have to publish its interims before trading in the shares recommences. Management says that it is addressing the accounting concerns of its auditor BDO. The NAV was 0.95 cents a share at the end of 2018.

Asia Wealth Group Holdings (AWLP) reported a drop in revenues from $1.24m to $797,000. This meant that the company fell into loss. There is $726,000 in the bank at the end of August 2019.

Ganapati (GANP) improved its interim revenues from £2.19m to £2.33m, but higher admin expenses meant that the reported loss more than trebled to £8.5m. The company continues to develop its online gaming platform.

TechFinancials (TECH) has completed the sale of a loss-making asset for €100,000.

Queros Capital Partners (QCP) is asking shareholders to approve the ending of the NEX quotation. The general meeting will be held on 14
November.

AIM

Duke Royalty (DUKE) has made a follow-on investment in Lynx Equity, to help the company to finance the purchase of Denmark-based steel staircases supplier Sundby Trapper. This means that Duke has exposure of £12m in Lynx and it will receive annual distributions of £1.6m.

Space management software supplier Smartspace Software (SMRT) is paying £3.2m in cash and shares for Australia-based Space Connect, a provider of cloud-based workplace management software for room booking, desk management, catering and workspace analytics. This will save up to £1.2m a year on product development over two years. The software can be rolled-out in the UK. Smartspace made an interim loss of £4m.

An investor group intends to increase its stake in Petrel Resources (PET) from 29.99% to 51% via a share issue at 1.25p each. They will offer potential oil and gas-related investments to Petrel.

Cabot Energy (CAB) has decided to ditch its AIM quotation on 3 December, but it intends to have its shares matched on Asset Match. This will have to be approved by shareholders. The Canada-focused oil and gas company wants to reduce its overheads.

RedT Energy (RED) plans to merge with Avalon Battery Corporation and combine the best features of each company’s technology. Bushveld Minerals (BMN) is providing an interim loan facility prior to the raising of £23m of new funds.

Avingtrans (AVG) is already reaping the benefits of the acquisition of Booth Industries, thanks to a £7.2m safety doors contract from the government. That means that £12m of orders have been won since the purchase in June.

Safestay (SSTY) is buying a hostel in Athens for €1.5m. The hostel has been operating since 2008 and has an 18-year lease. Safestay has also completed the purchase of the Best Western Glasgow City hotel for £3.15m and this will be transformed into a 200-bed hostel.

MAIN MARKET

Stevia producer PureCircle (PURE) has won a legal decision in its patent litigation with SweeGen, which challenged the patent. It will pursue Federal District court litigation against SweeGen. The patent is for the process of producing Reb M stevia sweetener via bioconversion. The shares remain suspended because it has not published the results for the year to June 2019.

Meditor is considering a 5p a share offer for carpets retailer Carpetright (CPR) and without this offer thee would need to be a refinancing of £80m of debt and additional working capital.

Motor dealer Lookers (LOOK) has warned that its 2019 figures will be even worse than previously thought and chief executive Andy Bruce and chief operating officer Nigel McMinn have left the board. The pre-tax forecast has been cut from £38.7m to £15.5m, compared with £53.9m in 2018. Third quarter new car unit sales fell by 3.2% (on a like-for-like basis), compared with the market decline of 0.6%.

InnovaDerma (IDP) is launching a new topical product in Superdrug before the end of June. The full details will be announced nearer the launch.

The chairman and chief executive of Rainbow Rare Earths (RBW) have acquired 5.46 million shares at 3p each and they have a combined shareholding of 27.5%. Further cost reductions have been identified for the Gakara project in Burundi. A further 100 tonnes of rare earth oxides concentrate were shipped in October. Production levels will fall in the short-term as the production focus moves to a mechanised operation.

Cryptominer Argo Blockchain (ARB) has doubled its mining equipment order and changed the machines it is buying. The cost has been reduced from $13.1m to $9.51m. The machines are more efficient. The current machine orders will increase capacity by 240%.

Resources cash shell Mila Resources (MILA) is still seeking a deal. There was £429,000 in cash at the end of June 2019. Another shell, Bermele (BERM), is also still seeking a deal. It had £682,000 in cash at the end of July 2019.

Blencowe Resources (BRES) is acquiring the Orom graphite project in Uganda for £2m in shares at 6p each. This is subject to a fundraising.

Iconic Labs (ICON) slipped out its results for the 18 months to June 2019 at 6.28pm on 31 October. They show a £6.12m loss, of which, £308,000 was from continuing operations. Net liabilities were £1.67m.

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