News blog

Quoted Micro 17 October 2022

BY: Andrew Hore |
POSTED: 16/10/2022 |

AQUIS STOCK EXCHANGE

Invinity Energy Systems (IES) is having a good week. Early in the week it announced a sale of a a 0.8MWh Invinity VS3 flow battery system to Equans Belux and then it won a California Energy Commission project as part of a consortium developing a large solar-plus-storage microgrid. Invinity Energy Systems will provide a 10MWh vanadium flow battery system. Delivery is expected in 2023. There is also a new relationship with US Vanadium, which could lead to a joint venture.

Vulcan Industries (VULC) is acquiring Peregrine X, which has developed diagnostic technology and the initial market will be oil well-head analysis. There are also medical uses. The initial consideration will be £1m of zero-coupon convertible loan notes with a further four tranches of £1m depending on progress. The total number of loan notes would be converted int a 46.2% stake in the company. The seller will also receive 500 million warrants exercisable at 1p a share. They will also receive 70% of post-tax earnings generated by Peregrine up until 2,000 tests have been contracted and 200 delivered. There are currently no revenues. This deal marks a move away from the engineering sector.

British Honey Company (BHC) has launched a strategic review of the business and sources of finance. A sale of the company is an alternative. Management expects to publish its 2021 results and 2022 interims before the end of October. More cash is required for working capital by the end of November.

Consumer businesses operator Silverwood Brands (SLWD) has announced a loss of £300,000 for the period to August 2022. The UK consumer market is tough and Silverwood is trying to increase its sales overseas.

Semper Fortis Esprit (SEMP) has ended all its contracts with esports players, and it is seeking other ways to exploit the market.

Capital for Colleagues (CFCP) has sold its holding of A shares in Hire and Supplies Ltd for £970,000 and reinvested £1.21m in new ordinary shares, giving it a 20.8% stake.

Hydrogen Utopia International (HUI) has signed a memorandum of understanding with Poland-based Elkard in relation to a plastic waste processing plant producing energy. They will start looking for a suitable site and the two companies will share the costs.

Arbuthnot Banking Group (ARBB) has completed the sale of Arbuthnot Latham’s West End office. The offer was previously indicated as £60m. Chairman and chief executive Sir Henry Angest bought 25,000 shares at 820p each.

Igraine (KING) has bought a 10.2% stake in Oscillate (MUSH) and its executive director Stephen Winfield has joined the Oscillate board.

MiLOC Group Ltd (ML.P) has raised nearly £40,000 at 20p a share. BWA Holdings (BWAP) has been unable to raise up to £500,000 via share issue and it may have to sell assets or issue more loan notes. A holder of £516,000 of RentGuarrantor Holdings (RGG) loan notes has converted them into 312,495 shares, which is just short of 3% of the enlarged share capital.

EPE Special Opportunities Ltd (EO.P) had net assets of 242.3p a share at the end of September 2022.

Valereum (VLRM) has appointed First Sentinel Corporate Finance as corporate adviser.

AIM

Energy and water efficiency equipment provider Eneraqua Technologies (ETP) grew its interim revenues from a combination of organic growth and a contribution from recent acquisition Welltherm, which provides drilling services for heat pump installation. Revenues were 92% higher at £24.2m, while underlying pre-tax profit was £3m. Full year expectations are covered by contracted orders as are nearly three-quarters of next year’s forecast revenues. A full year pre-tax profit of £10.6m is forecast. There are plans to move into the consumer market, but that will not make a meaningful contribution until next year – although there will be £500,000 of marketing costs.

Drug developer Evgen (EVG) is partnering with Swiss biotech Stalicia for the potential use of SFX-01 for the treatment of autism spectrum disorder and other CNS disorders. This deal could generate up to $160.5m in milestone payments and double-digit royalties, although that is a long way away. The upfront payment is $500,000 with a further $500,000 once a volunteer study is completed in the first half of 2023. If the FDA approves an investigational new drug admission that will spark a $5m payment – possibly next year. Evgen is also undertaking an additional early-stage study for the treatment of glioblastoma using SFX-01.

Interior design and furnishings supplier Sanderson Design Group (SDG) improved its interim profit, but trading was weaker in August. In the six months to July 2022, revenues edged up by 0.7% to £57.9m, although that does reflect the ending of business in Russia. Underlying pre-tax profit improved from £5.6m to £6.3m, helped by additional high margin licence fee income. The interim dividend is maintained at 0.75p a share.

Faron Pharmaceuticals (FARN) completed a placing raising €8.4m at €1.85 each. The cash will be used for the acceleration of the bexmarilimab, which is an immunotherapy treatment for difficult-to-treat cancers, clinical development programme and manufacturing.

Data analysis software provider WANdisco (WAND) has generated bookings of $61.2m so far this year with the majority coming in the third quarter. This is already higher than expectations for the full year and there is more to come. There was $26.3m in the bank at the end of September 2022, helped by upfront cash payments on contracts. Losses continue, though.

Property lending platform operator Lendinvest (LINV) reported platform assets under management one-third higher at £2.4bn, but finnCap has downgraded its full year forecast. Interest rate volatility is hampering margins. Chief executive Rod Lockhart bought 27,111 shares at 67.5p each and the chief investment officer bought 60,000 shares at 63.75p each.

Coral Products (CRU) has acquired Ecodeck Grids, which supplies building and landscape products for driveways and shed bases. There is an initial payment of £3.35m in cash and shares, with up to £1.25m more potentially payable. The products use 100% recycled plastic.

Beeks Financial Cloud (BKS) reported an improvement in full year underlying pre-tax profit from £1.6m to £2.1m. It is forecast to increase to £3.2m this year.

Sierra Oncology Inc is returning the rights to SRA737, which was jointly developed by Sareum Holdings (SAR) and the Institute of Cancer Research, to the CRT Pioneer Fund.

Investment publisher Bonhill (BONH) has commenced a strategic review that could lead to the sale of the company or separate businesses. Trading remains difficult and shareholder Rockwood Strategic (RKW) is providing a £800,000 loan facility.

MAIN MARKET

OTAQ (OTAQ) is raising £2m via a placing at 4p a share, while a four-for-five open offer could raise up to £1.2m more. It is also moving from the standard list to the Access segment of the Aquis Stock Exchange. There is also a broker option that could raise up to £400,000 if there is enough demand. In order to raise the cash, the nominal value of the shares is being reduced from 15p to 1p. Every four new shares taken up will come with a warrant exercisable at 12p. The fundraising is dependent on shareholders agreeing the move to Aquis, which is planned for 9 November. In aquaculture, OTAQ has developed sonar technology that scans shrimps, live plankton analysis systems and water quality monitoring software. The geotracking operations have developed a rail personnel and asset safety and sports trackers.

Raj Unnikandeth is stepping down as a director of Zamaz (ZAMZ) six weeks after it floated. Zamaz believes that its technology platform can help to efficiently build brands via e-commerce. Earlier in the week, Zamaz acquired 70% of Italy-based food and wine retailer Eccellenze through its existing food platform subsidiary Bella Dispensa. This follows the purchase of Italian meat products supplier Ecocarni.

HeiQ (HEIQ) has filed a complaint in the US against ICP Industrial Inc for breaching exclusive agreement terms. The agreement relates to the use of HeiQ Viroblock in printing processes. ICP has failed to pay royalties or minimum fee payments, as well as not providing timely reports.

AIM Micro

News blog

Quoted Micro 17 October 2022

Quoted Micro 20 March 2023

Quoted Micro 13 March 2023

AIM 50 Digest 10 March 2023

Quoted Micro 6 March 2023