Ondine Biomedical (OBI), the Canadian life sciences company, confirmed that interest from hospitals in Canada has accelerated its opportunity to address the Intensive Care Unit market. Already used in hospitals across Canada to reduce healthcare-associated infections in patients undergoing surgery, this move into the routine treatment of highly compromised patients in ICUs has the potential to significantly expand Steriwave® usage in hospitals. OBI said it has long known that the ICU is an epicenter of hospital infection due to the vulnerable population of critically ill patients and the high use of invasive procedures including intubation, catheters and ports. It believes that Steriwave can offer a far more effective solution to ICU infections than nasal antibiotics, and it is looking forward to capitalising on this large market segment. Ondine will be able to reach ICUs using its existing sales and marketing infrastructure, making this an obvious area for it to expand into.
Comment: A £20m market cap is peanuts for a company with the international, scalable potential that OBI has. When one adds in how much the company can save the cash strapped healthcare sector, the investment case and wider benefit of the offering become a compelling situation to watch.
Gunsynd (GUN) announced that it has disposed of holdings in some of its investee companies being Charger Metals NL (ASX: CHR); Pacific Nickel Mines Limited (ASX: PNM); and Rincon Resources Limited (ASX: RCR). Total proceeds were approximately £235,000.
Comment: It seems that it is not only exploration companies that are remembering that in an illiquid stock market investors appreciate liquidity events. GUN shares have already been anticipating today’s cashing in by the group, and there may yet be some gas left in the tank as far as the rebound is concerned.
i3 Energy (I3E), an independent oil and gas company with assets and operations in the UK and Canada, announced its 1st Quarter 2024 dividend totalling £3.084 million, equivalent to 0.2565 pence/share.
Comment: Shares of I3E have rallied some 20% over the past month, helped along by director buying below the 10p level. One would expect a further re-rate off the back of firmer oil prices, and the company reminding the market that it is a decent dividend payer.
Gulf Marine Services (GMS), a provider of advanced self‐propelled, self‐elevating support vessels announced its full year financial results for the year to 31 December 2023. Group net profits of US$ 42.1 million (2022: US$ 25.4 million), reflecting the strength of the Group’s recovery. Adjusted EBITDA increased to US$ 87.5 million (2022: US$ 71.5 million) driven by an increase in revenue. Adjusted EBITDA margin5 also increased to 58% (2022: 54%). GMS said in 2023, its business thrived amid industry tailwinds, showcasing year-over-year growth in revenues, utilisation, and day rates. It successfully reduced its net leverage ratio to 3.05 times from 4.4 times as of 31 December 2022. Looking forward, it will continue its deleveraging journey as it spares no efforts to continue to increase shareholders value.
Comment: It would appear that business is indeed booming at GMS, and just for a change the stock market has been onto the fundamental party. Shares of the company are 4x up over the past year, and one would expect further upside off the back of paying down debt.
REACT Group (REAT), the specialist cleaning, hygiene, and decontamination company, announced that it has been awarded three material contracts totalling over £1.3m annually. All three contracts have been or are being mobilised during the month of April 2024. REAT said it was delighted that the Company has continued its trading momentum winning new customers and expanding its services with existing ones. These three material contracts have been awarded in addition to a stream of small and medium sized wins which demonstrates both the demand and the cross selling opportunities for its services and as such, underpins its confidence in FY 2024 performance.
Comment: REAT continues to prove that where there is muck, there is brass. So much so, that in the wake of today’s contract wins, one would be looking for the shares to return to the best levels of the autumn through 85p, during Q2 2024.
Genflow Biosciences (GENF) the therapeutic longevity solutions group, announced it has raised, through its broker Capital Plus Partners, £715,000 by way of a placing at 1.25 pence. The net proceeds from the Placing will be used to continue development and associated clinical trials. The near-term clinical trials are aimed at a potential cure of the liver disease NASH, in addition to conference participation and an enhanced investor relations program.
Comment: Courtesy of our friends at Capital Plus, GENF extends its funding runway yet further, a point underlined by director participation. One looks forward to the enhanced investor relations program, especially if one is in that space.
Cavendish (CAV), a UK mid-market investment bank, issued a trading update for the year ended 31 March 2024. In H2, it saw significant growth with revenues expected to be approximately £34.5m, c.77% up on pro forma H1 revenue of £19.5m. As a result, statutory revenue for the full year is expected to be approximately £47.5m (FY23: £32.9m) up c.44%. On a full year pro forma basis revenue is expected to be c.£54m (FY23 pro forma: £50.5m). CAV said whilst the interest rate cycle appears to have peaked, conditions continue to impact demand for UK equities, making deal execution in ECM challenging across all market participants. However, private and public M&A has remained buoyant in H2 and its pipeline across both ECM and M&A remains good.
Comment: Interestingly, the merger of Cenkos and FinnCap appears to have created a company thriving in a parallel universe as compared to many of its peers, something which is clearly the result of more than just synergies. It would appear that the timing of the deal, right in the middle of one of the worst bear markets, was spot on.
Amaroq Minerals Ltd. (AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland, announced that the successful first underground mining blast at Nalunaq was initiated on Saturday, March 30, 2024 at the 720m level. AMRQ said it would like to congratulate the team on site at Nalunaq who, working alongside our contractor Thyssen Schachtbau, have reached a milestone moment. Work at Nalunaq is progressing to schedule, with rehabilitation works now complete as it prepares to commence trial mining between 100 and 150tpd from Mountain Block.
Comment: Shares of AMRQ have doubled over the past year, off the back of regular, significant newsflow such as we have been treated to today. Underpinning the value here is the prospect of unlocking the vast resources that remain largely untapped in Greenland.
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