05/06/2023

Chill Brands Group (CHLL), the international consumer packaged goods company, provided an update on arrangements for the planned sale of its nicotine-free vapour products to US consumers via the Chill.com e-commerce website.  The company said it has now secured relationships with specialist carriers and fulfillment providers that will facilitate the home delivery of its products to customers in all 50 US states.

Comment: “Fulfillment providers”, a wonderful US phrase, could really do the trick here! Now that CHLL is all geared up for sales, it will be interesting to see what the actual level of buying on the vapes stack up to. It is all up to those pesky Gen Z vapers to get on the case.

Andrada Mining (ATM), an African technology metals mining company, updated on its shares commence trading today on the OTCQB® to access U.S retail investors and to broaden shareholder register, and the execution of documentation for the Development Bank of Namibia finance facility. The company said Admission to the OTCQB® Market is a key step in Andrada’s strategy to broaden the company’s investor base by making its shares more accessible to the North American institutional and retail investors.

Comment: Given the general lack of pizazz in the UK market, the OTCQB move seems wise for ATM, backed up by the appropriate level of US PR and IR.

Kromek Group  (KMK), a developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announce that it has secured a contract worth $1.5m in the civil nuclear market, which is to be delivered over the next 15 months. The company said it is great to have received the first order for this new product line as it commences the commercialisation phase. It reflects the strength of its business model as another example of customer-funded development work transitioning to a product delivery phase.

Comment: Although KMK has not been loud in saying that it has turned the corner in terms of contract wins, and proving the business model, today’s announcement reminds us that it has.

Oracle Power (ORCP), announced the signing of a MoU between its subsidiary Oracle Energy and PetroChina International (Middle East) Company Limited for cooperation and joint development of commercial avenues for Oracle Energy’s planned Green Hydrogen Project in Sindh, Pakistan.  ORCP said the signing of this MoU with PCME is another huge step forward as it lines up another significant potential offtaker. PetroChina is a large oil and gas trader and can potentially provide its Project a commercially viable route to market.

Comment: While the stock market continues to look the gift horse of latest developments at ORCP in the mouth, the deals being done here offer significant upside for shareholders, and on large projects.

Avacta Group (AVCT), a life sciences company, announced that a second milestone equity payment has been triggered resulting in an increase in Avacta’s shareholding in AffyXell Therapeutics, a joint venture to develop next-generation cell therapies between Avacta and Daewoong Pharmaceutical in South Korea. AVCT said it was delighted that such rapid progress has been made with the second target in our joint venture in South Korea. There is great potential for AffyXell’s novel, engineered mesenchymal stem cell platform incorporating Avacta’s Affimer® technology to deliver significant improvements to the standard of care for patients with serious diseases.

Comment: News like today’s could be just what shares of AVCT need to get them back off the floor of the trading range in the 100p – 110p zone. It is not usual in the biotech space that things happen ahead of schedule.

LifeSafe (LIFS), a fire safety technology business, reported that sales growth has continued to exceed the Board’s expectations in 2023 with revenue in the first four months to 30 April 2023 of approximately £2.1 million, over 200% higher than the same period last year and approximately 15% higher than internal budgets for 2023. The company said the outperformance of revenue against the Board’s expectations in the first four months of the year is very encouraging. To ensure the company is positioned to take full advantage of the growing sales potential of the second half of 2023 it must invest now in the procurement cycle to meet the expected demand. The new trade finance facility announced today will enable it to meet that growing demand more effectively.

Comment: Having to invest now to meet demand is a good place to be for LifeSafe, something which would be all the more appreciated perhaps if the market started to respond to the sales growth in terms of LIFS’s share price.

First Tin (1SN), a tin development company, announced that it has submitted the complete documentation for its mine permit application to the Saxonian Mining Authority for its 100% owned Tellerhäuser tin project in Germany, with a decision expected prior to the end of Q3 2024. The company said this submission to the authorities is an important next step in advancing its mining activities at its Tellerhäuser asset. The application describes in detail its plan to build a tin mine which sets a new standard for mining operations worldwide in terms of sustainability.

Comment: Recent operational progress at 1SN gives the impression that shares of the company are finally ready for recovery, after a soft period. We should be reminded that in Germany it is right in the box seat geographically in terms of the industrial base and demand.

Canadian Overseas Petroleum (COPL), an oil and gas company, updated on its operations and recent oil production. The company said it is progressing on all fronts outlined in its last Operations Update. It is pleased with the progress on the construction of its Gas Gathering System Upgrades and is fortunate to have been able to acquire the necessary high-pressure production equipment it requires in Alberta, avoiding supply chain and long lead times in the United States. The results from its first well conversion have so far exceeded its expectations. Production from the converted wells takes time to settle down to design and implement a well specific paraffin treatment regime. It is active on all fronts and will continue to update the market.

Comment: Fighting talks from Mr Mulholland in the latest update, so much so that all that is missing is for the share price to get back to the 15p – 20p zone where it was trading for much of 2022.

Hercules Site Services (HERC), a technology enabled labour supply company for the UK infrastructure sector, announce its unaudited interim results for the six months ended 31 March 2023. Revenue increased by 85% to £37.0m (H1 2022: £19.9m), gross profit increased by 71% to £6.9m (H1 2022: £4.0m), and adjusted EBITDA* increased by 83% to £1.1m (H1 2022: £0.7m).

Comment: A brilliant performance by HERC, as it rides the UK infrastructure gravy train, at a time of Brexit induced labour shortages. It has taken some skill for the company to hide its very bright light under a bushel, but so far this has been managed. Hopefully, today’s results will catch the eye of some in the market.

Greatland Gold (GGP) announced that the divestment of its Firetower and Warrentinna tenements (the Tasmanian Tenements) will formally complete on or around 9 June 2023 following the Flynn Gold’s Option exercise. GGP said this transaction provides for Greatland to realise immediate value from these tenements which are outside of its core focus locations while maintaining ongoing exposure to the upside potential of this prospective ground.  This is a particularly pleasing outcome at a time that Greatland is accelerating its exploration efforts within the Paterson Province.

Comment: As GGP underlines, the focus now is on Paterson, so the divestment from Tasmania is a helpful step in this direction.