Although we would probably like to hear from companies that do have exposure to Federal Reserve induced collapse Silicon Valley Bank, rather than those who do not, we start this week with four companies breathing a sigh of relief in this matter.
Avacta Group (AVCT), a life sciences company, confirmed that it has no banking relationship with either Silicon Valley Bank or Silicon Valley Bank UK and therefore no cash on deposit with them.
Tap Global Group (AQSE: TAP), the regulated crypto app, noted that Silicon Valley Bank UK is to enter insolvency following the same action being announced by its parent company in the USA, and confirms the Company has no exposure to Silicon Valley Bank, Silicon Valley Bank UK, Silvergate Bank US or the associated Silvergate Exchange Network. Additionally, the company has no exposure to Signature Bank.
Fiinu (BANK), a fintech company including the fully owned Fiinu Bank Limited, creator of the Plugin Overdraft®, notes the recent announcements and press coverage in relation to Silicon Valley Bank and confirms that it has no direct exposure or affiliation with Silicon Valley Bank or its UK subsidiary.
THG (THG), the proprietary technology platform specialising in taking brands direct to consumers globally, notes the evolving situation in relation to Silicon Valley Bank. THG confirms that it does not have any exposure to SVB, either in relation to cash deposits or debt facilities.
Comment: Having been hit by a variety of own goals, Black Swans, and other unfortunate events, it is pleasing to see that THG has dodged this particular bullet.
Hydrogen Utopia International (HUI), a company specialising in turning waste plastic into carbon-free fuels, announced that it has entered into an option to lease a 2.5 acre greenfield site in the 78-acre Fisherstown Energy Park at Fisherstown in County Longford, Ireland. This is expected to lead to HUI’s first operational full scale waste plastic to hydrogen facility in the European Union. The company said it is now working hard to move the planning and permitting of the site forward as rapidly as possible. Ireland is a very attractive EU country in which to pioneer our first European waste plastic to hydrogen plant.
Comment: HUI’s move in Ireland would appear to be about as much a plug and play for the first waste plastic to hydrogen plant that could be achieved. In addition, we are looking at an EU country which can be subject to a large chunk of subsidy for the plant via the Just Transition Fund. The move should underline to the market how fast HUI is moving towards the all important first of a kind unit.
Anglo Asian Mining (AAZ), the AIM listed gold, copper and silver producer primarily focused in Azerbaijan, announced it has identified significant copper mineralisation at Xarxar. An initial exploration model of the mineralisation has been prepared. A geological block model and open pit mining study are currently being developed and will be published in the coming weeks. The company said it was very excited about the acquisition of Xarxar and the potential copper that it can bring to the Anglo Asian production pipeline. Surface drilling and underground exploration tunnelling is ongoing, and the company looks forward to reporting the results soon.
Comment: A company which has been exemplary on the fundamental front, reveals news which should ensure that the share price recovery we have seen since October is likely to gain further momentum.
Dekel Agri-Vision (DKL), the West African focused agriculture company, announced its February Palm Oil and Cashew Operation update. The company said that following a slow start to the Palm Oil Operation high season it is pleasing to see indications in the early March that FFB volumes are lifting. With CPO prices and CPO extraction rates remaining strong it is keen to capitalise on these supportive factors and look forward to reporting stronger results next month for the Palm Oil Operation as well as it first quarterly production report for the Cashew Operation. The company also announced that following the commencement of his employment contract on 16 March 2020, Aristide Achy Brou, a non-executive director, elected to receive shares in Dekel rather than cash for all remuneration that became due for the period 1 January 2022 to 31 December 2022. The company said Aristide’s continuing request to receive shares in Dekel rather than cash in settlement of remuneration in its view represents an endorsement of the company and its prospects.
Comment: A busy morning for DKL with a couple of RNS announcements. What is pleasing here is the upbeat forecast for Palm Oil, and the run up to maiden cashew numbers. This along with a NED choosing shares rather than cash, implies to the market that the share price here should finally start to re-rate in a significant fashion.
First Tin (1SN), a tin development company, provided an update on its drilling, DFS and Environmental Impact Studies at its Taronga Tin Project in Australia. The project is owned by First Tin’s 100% owned Australian subsidiary, Taronga Mines Pty Ltd. The company said First Tin has made considerable progress over the last six months and the project is shaping up well. No red flags have been identified to date and we are pleased to confirm that results so far underpin our previous hypotheses. The drilling has confirmed the previous Newmont results and has also extended the known mineralisation by approximately 400m to the south.
Comment: Today’s announcement from First Tin is the kind of release that the market needs in order to break the recent bearish run for the share price. Extending the known mineralisation by 400m is notable, and should at least help sentiment towards the company.
Polarean Imaging (POLX), the medical imaging technology company, announced that the company has sufficient cash outside of SVB to meet its immediate liquidity needs. The company had a total cash balance of $13.9M on 28 February 2023. $1.5M of this cash is held at Wells Fargo. $12.4M of this cash is held through Silicon Valley Bank. The company has requested that the listing of the company’s ordinary shares on AIM be temporarily suspended while it seeks further clarification.
Comment: Given the way that POLX was being under loved by the market even before the SVB debacle, the latest developments here appear almost cruel. Ideally, there is a swift return to normal trading, with the SVB money returned.
Diaceutics (DXRX), a technology and solutions provider to the pharmaceutical industry, today provides an update in relation to its exposure to Silicon Valley Bank. As of 9 March 2023, the company held £22.2m in cash and cash equivalents (31 December 2022: £19.8m). Of this balance, approximately £22.0m was held in SVB accounts. Despite immediate efforts by the company to move available funds to other banks before SVB was closed, these transactions remain pending and the company has been unable to access any of its funds held by SVB. Having requested that its shares be suspended from trading on AIM, the company said it hopes to be in a position to lift the suspension of its shares as soon its funding position is secured.
Woodbois (WBI), the African focused forestry, timber trading, reforestation and voluntary carbon credit company, announced gross proceeds of £3 million have been raised by way of a conditional placing at a price of 1.2p.
Comment: The company was rather canny in raising money into the temporary strength in the shares earlier this month. It will presumably take a while for the market to churn through this placing, after which it is to be hoped we shall see the big Woodbois masterplan pan out.
Condor Gold (CNR) announced that the sales process is now entering the end of its first phase with various parties having conducted site visits and others ongoing. Three formal expressions of interest including 2 non-binding offers have been received by the company and further offers are expected as nine companies are under a NDA. The company said it is confident that a binding agreement will be reached. Investors will be updated in due course.
Comment: It would appear that there is far better interest in CNR now that it is up for sale, that when it was going about its everyday project development work. Perhaps it should have done this earlier?
Kavango Resources (KAV, the Southern Africa focussed metals exploration company, announced completion of relogging of drillhole DITDD004 at the Ditau Project. The company said Dr. Hamid Mumin’s report has highlighted the gold potential at Ditau and proposed a new deposit model. Relogging of the core by Kavango has identified a number of features that could be consistent with this. It looks forward to logging the additional drillholes it has identified over the I10 Target at the end of this month and using the results to expand its exploration program.
Comment: The impression in the market is that Kavango could pull a rabbit or two out of the hat with Ditau. Today’s announcement is likely to bolster such an impression.
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