Avacta Group (AVCT), a life sciences company developing innovative, targeted oncology drugs and powerful diagnostics, announced its preliminary results for the twelve months ending 31 December 2023. Adjusted EBITDA loss (before non-cash and non-recurring items) of £20.14 million (2022: £15.1 million). Operating loss reduced to £28.36 million (2022: £32.6 million). AVCT said it had appointed a new Chief Executive Officer, Christina Coughlin, MD PhD.
Comment: With the recent share price plunge, a larger EBITDA loss, and retail investors receiving a kick in the teeth, one would imagine that replacing Humza Yousaf as Scotland’s First Minister would be a more popular gig than becoming the new CEO at AVCT. But presumably if anyone can turn the company around, Christina can.
Poolbeg Pharma (POLB), a biopharmaceutical company, announced that it has entered into an exclusive 12-month option agreement with Silk Road Therapeutics Inc, for a nominal fee, to acquire a novel topical muco-adherent formulation of Pentoxifylline (tPTX) for the treatment of oral ulcers in patient’s suffering from Behçet’s Disease. POLB also announced its audited results for the year ended 31 December 2023 and a new joint broker: Shore Capital. POLB said it had made excellent progress and hit multiple key milestones in 2023, the most important of all perhaps was filing patent applications which will give it international protection over the use of POLB 001 as a preventative therapy for cancer immunotherapy-induced CRS, in addition to the existing severe influenza indication.
Comment: With £12.2m in the bank, a new product in its pipeline, new joint broker, and moves to protect its IP, it can be seen that POLB is firing on all cylinders. The only thing left is for this to be accurately reflected in the share price.
SysGroup’s (SYS) new management report a trading update for the year-end March. It’s a story of two halves as the 5% increase to £22.7m resulted from a 14% increase in the second half. The new board lead, by Heejae Chae, who owns 14%, formally with the £0.5billion IP Group, has renewed the product development and service strategy. The new focused is on Artificial Intelligence and Machine Learning by investing in a team of ML engineers from AWS, JP Morgan, Validus and McLaren. The ambitious plan is to become the premier end-to-end data solution provider for small and medium sized businesses embarking on their AI/ML journey. It has landed the second largest contract in SysGroup’s history, totalling £2.2m of revenue over three years, providing cyber security managed services to a leading challenger bank. The debt is £3.4m and an equity placing to accelerate the growth seems likely to be well supported. Adjusted EBITDA1 of approximately £2m for an EBITDA/ EV ratio of 9x.
Comment: An ambitious new team and at 30p with a £15m mkt cap one would be a supporter.
Greatland Gold (GGP) provided an update on activities and developments at Havieron, the world class gold-copper project located in the Paterson Province, for the March 2024 quarter. GGP said that overall, it is confident there is currently significant option value in Greatland with Newmont’s 70% interest in Havieron considered non-core and its existing last right of refusal on any sale. If an opportunity to consolidate ownership of Havieron were to arise it would be highly focused on delivering an accretive outcome for its existing shareholders with a view to delivering a world-class Australian gold copper asset.
Comment: While we are convinced that GGP is set to be a company delivering a world-class Australian gold copper asset, we still wonder why even with gold at record highs and a bid for Anglo American, this is not reflected in the GGP share price.
Good Life Plus (AQSE: GDLF), an innovator in the luxury prize draw and rewards sector, is pleased to announce the following update. GDLF said that following a successful public listing in December 2023, and a subsequent further subscription raising £2.03 million by Winforton Investments Limited, a private investment vehicle associated with Mark Blandford, Good Life Plus has experienced strong customer acquisition growth, reaching the significant milestone of 30,000 subscribers, increasing from a base of 21,000 as at 31 December 2023.
Comment: The luxury prize draw and rewards sector should be a scalable and highly profitable business for GDLF. One would bet that Zakstraderscafe.com is the only venue covering this potential high growth company today.
Sovereign Metals (SVML) provided its quarterly report for the period ended 31 March 2024. SVML said it is currently conducting an optimisation study prior to advancing to the DFS. The Company aims to become the world’s largest, lowest cost and lowest-emissions producer of two critical minerals – titanium (rutile) and graphite. The Company plans to update the market on further appointments to owner’s team to build on the Company’s execution capabilities and the results of graphite product development, downstream and qualification test work.
Comment: It would appear that the share price is finally, slowly responding to the massive potential of SVML, with it perhaps being that the graphite angle may actually be the catalyst for a better appreciation of the company.
GreenX Metals (GRX) provided its quarterly report for the period ended 31 March 2024. GRX said that as at 31 March 2024, it had cash of A$8.1m placing it in a strong financial position to progress with exploration activities in Greenland and to pursue additional business development opportunities in the resource sector to complement its current projects.
Comment: Greenland is already proving to be a winning jurisdiction for companies such as Amaroq (AMRQ), and one would expect this to be mirrored at GRX. A potential win against Poland is in the share price for free.
URA Holdings (URAH), the gemstone mining company, announced its final audited results for the year ended 31 December 2023. URAH said that following the successful commissioning of its processing and sorting plants, phased production at GEM has commenced as scheduled and within budget. Over the coming months, production will be increased and systems, processes, and equipment will be optimised leading to its first trial sales event in the second half of 2024. It is proud and excited about this transition from an exploration company to a producer of the increasingly popular gem, emeralds, on an increasing scale.
Comment: The speed at which URAH has turned into a producer from a developer has not been appreciated by the market, but one would assume that when the sales come in heads will be well and truly turned.
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