Tekcapital (TEK), the UK intellectual property investment group announces that Innovative Eyewear, Inc. (NASDAQ: LUCY; LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, has filed a patent on a key product innovation, flexible spring hinges for smart eyewear. Innovative Eyewear said the development of compact spring hinges for smart eyewear is another positive advent in our mission to build the global standard in the category. It believes this new component will improve the all-day comfort and durability of its eyewear.
Comment: While we all love a good flexible spring hinge, the sizzle in today’s RNS is that once again it reminds the market of the discount to NAV TEK is trading at, and how the recent recovery in the stock may still have legs.
Image Scan (IGE), specialists in the field of X-ray imaging, confirmed orders so far in its financial year ending 30 September 2023 to over thirty countries. Some of the highlights include orders for the portable security x-ray ThreatScan in Spain and Indonesia and an important supply to an international intergovernmental agency undertaking valuable peace keeping operations in Africa. The company said it was pleased not only with the wide geographic spread of orders and sales in the year to date but with the efforts of the whole team to make them happen. Hopefully this year’s DSEi will generate further interest.
Comment: Shares of IGE are well up on where they were in the autumn of last year, and it may be that today’s news is enough to deliver a fresh leg to the upside for the stock over the autumn of 2023 as well.
Blackbird (BIRD), the technology licensor, announced a contract win with an OEM partner for use at a global Summer Games in 2024. The company said it was delighted to announce that Blackbird will again be deployed on this world recognised international sporting event next year. An event of this scale and complexity requires unremitting reliability in its partners and it has a successful track record in delivering on tournaments of this stature.
Comment: BIRD serves up an added bonus to potentially deliver fresh momentum for share price recovery, ahead of the Special Event later this week.
Cora Gold (CORA), the West African focused gold company, confirmed the extension of certain convertible loan rights due to mature on 09 September 2023 to 12 March 2024. The company said it was very pleased with the ongoing support received from Cora’s Noteholders and long-term shareholders. The Company currently has balances of cash and cash equivalents in excess of $17.25 million.
Comment: While today’s news may not be much of a surprise, it will help assure investors that CORA is capable of delivering on its milestones and is in a strong position cash wise.
Chill Brands Group (CHLL), the consumer packaged-goods distribution company, announced that on 8 September 2023, the Company’s Board of Directors issued a grant of share options to the Company’s three Executive Directors, subject to the passing of certain resolutions at the Company’s Annual General Meeting to be held on 19 September 2023. The Options are over a total of 21,600,000 ordinary shares of 1 pence each, have an exercise price of 4p and a term of 6 years.
Comment: It is alright for some, may be the initial reaction to options for the board at 4p and for 6 years. But if the company’s goal is achieved, sales galore, then few would begrudge the latest move.
Bushveld Minerals (BMN), the integrated primary vanadium producer, announced that it has entered into a binding term sheet with the investment fund SPR GP1 (Pty) Limited. The highlight here is of a cumulative proposed investment of $69.5- $77.5 million. BMN said it was pleased to announce this comprehensive transaction which will place the Company in a much stronger financial position once complete – by providing necessary near term working capital, reducing overall debt and assisting the business in meeting its short to longer term capital expenditure and optimisation requirements.
Comment: BMN serves up the surprise good news of the day, something which should wrong foot the naysayers, and delight bulls who have bought recently at the lower levels. Ideally, the stock should be back where it was at the start of the year through 5p.
Union Jack Oil (UJO), a UK focused onshore conventional oil and gas company, announced its unaudited results for the Half Year ended 30 June 2023. The company said it remains in a strong financial position with a combination of consistent cash flows, principally from its flagship asset at Wressle, plus significant future upside potential from its balanced portfolio, giving Union Jack the confidence to support a forward drilling and development programme on our key projects that is being planned for the remainder of 2023 and beyond. Union Jack continues to be cash flow positive.
Comment: The market has been rather harsh on UJO of late as far as the share price is concerned. Nevertheless, it does appear that being cash flow positive should be enough to provide support near current 20p share price levels.
Golden Metal Resources (GMET), a mineral exploration company, announced the identification of a significant 10km2 conductive zone at its Kibby Basin lithium project in Nevada, USA. The company said it has been watching lithium with great interest, especially in Nevada where some of the largest deposits in the U.S. are found – and with the 100% owned Lithium Properties now secured, as well as the Review results in hand, it can swiftly move to determine next steps in order to further advance this exciting acquisition.
Comment: The message in current bear market conditions for small cap companies is that they have to pull rabbits out of the hat. This is what today’s announcement from GMET has underlined, as it advances in a way that most in the market were not expecting. Given the way that the shares are still only near their listing price, a decent move to the upside is likely over the course of the autumn.
Beacon Energy (BCE), the full-cycle oil and gas company, announced an update on the Schwarzbach-2. The company said the SCHB2(2.) well has been a challenging well from an operational perspective, with hole stability issues encountered in the initial and sidetracked hole sections, however it has encountered an excellent oil-bearing reservoir with thickness and properties that are far in excess of pre-drill prognosis.
Comment: Shares of BCE have already been rallying to new near term highs, and one would expect this latest news to take them towards 0.30p and beyond with relative ease.
Barkby, (BARK) notes recent media speculation and announced that it is exploring options to maximise shareholder value from its subsidiary, Cambridge Sleep Sciences, the science-based sleep technology business behind SleepEngine®.The company delighted with the progress made by CSS over the last three years. The market opportunity for its technologies is clearly significant and it looks forward to providing further updates on CSS’s progress in due course.
Comment: Fame at last, on Sky News for Barkby. While it was not the cover of the FT, it was quite a coup, and perhaps underlines that we are not exactly in M&A heaven on the stock market at the moment.
WANdisco (WAND), the data activation platform, announced its Interim unaudited results for the six months ended 30 June 2023. The company said that since its appointment, the new and existing Management team has worked tirelessly to steady the ship, deal with and resolve the significant difficulties the Company faced, and stay focused on the significant growth opportunity that it knows lies ahead.
Comment: While punters have been driving themselves into a frenzy regarding jobbing in and out of WAND shares, and are likely to continue to do so, we have typical management speak of how terrible things were before (nothing to salvage, and no incentive to do so), and how they have bravely taken things forward (but it will not be easy.)
Rainbow Rare Earths (RBW) announced that it has entered into a strategic supply agreement with Less Common Metals Ltd to be a supplier of the magnet separated rare earth oxides neodymium and praseodymium, dysprosium and terbium. The company said securing a buyer of its separated rare earth oxides that shares its values and aspirations was of strategic importance to Rainbow. It is dedicated to establishing an independent, responsible and ethical supply chain of the rare earth elements that are driving the green energy transition.
Comment: RBW has delivered quite a head of steam in terms of newsflow over the summer, something which has and is likely to continue to deliver a decent rally for the shares, one which should, if anything, accelerate.
Arrow Exploration (AXL), the operator with a portfolio of assets across key Colombian hydrocarbon basins, announced the results of its maiden Carrizales Norte reserves evaluation by Boury Global Energy Consultants Ltd. as at August 31, 2023. The company said the Carrizales Norte field is a material discovery for Arrow as the reserves report confirms. The Carrizales Norte reserves have doubled the 1P, 2P and 3P total reserves and value of Arrow. It is pleased with the results of the BouryGEC reserves evaluation, which reinforces the significant value of its Carrizales Norte asset at Tapir.
Comment: Once AXL moves to differentiate itself from all the other non efficient, non producing, non significant hydrocarbon plays, we should be treated to the long awaited re-rate for the shares. Indeed, it is amazing that this has not happened already, especially given current oil prices.
SEED Innovations (SEED), the AIM-quoted company investment company, announced the sale of 2,900 share units of Avextra AG, a German-based, European vertically integrated medical cannabis company, representing 56.4% of SEED’s holding in Avextra for gross proceeds of €2.9 million (£2.45 million). The company said the opportunity arose for a partial exit of its Avextra holding and the board agreed that generating another c.£2.45 million via a premium asset sale was the right decision. The Sale represents a 60% premium to our entry point.
Comment: The smart money has been on the case as far as seeing the value in SEED shares due to the disconnect between the market cap and NAV. Today’s news will hopefully see this re-rate continue.
Cobra (COBR), a gold, rare earth and IOCG exploration company, advised that metallurgical testwork carried out by the Australian Nuclear Science and Technology Organisation confirms Rare Earth Elements mineralisation at the Boland palaeo-channel prospect to be cost-efficient, easily recoverable ionic adsorption rare earth clays. The company said these metallurgy results place it amongst the handful of projects which can attest to having highly desirable ionic rare earth mineralisation.
Comment: After an extended quiet period, we have COBR re-emerge with significant news regarding REE. This should allow the stock to gather increasing interest, given the magnitude of today’s announcement.
ENGAGE XR (EXR), a Metaverse / Spatial Computing technology company, announced its unaudited interim results for the six months ended 30 June 2023. Group revenue has continued to grow with H1 2023 revenue of c.€2.1 million, an increase of 18% (H1 2022: €1.8 million). ENGAGE said revenue is the main driver of the increase with revenue in the period of c€1.9 million, up 30% (H1 2022: €1.5m).
Comment: Any tech company which is growing revenue is something of a rarity, in a good way. One would expect to see EXR shares start to turn around from current lowly levels.
Guild Esports (GILD), a gaming-focused media business, announced that Sky Glass, the streaming TV from Sky, has been appointed as Guild’s Official Television Partner, effective immediately. GILD said that in addition to their existing commitments, Sky has invested a six-figure sum into the refurbishment of the entire Sky Guild Gaming Centre. The refurbishment is expected to be completed in Q4.
Comment: There has been a tentative recovery in shares of GILD, and one would expect this to continue on the basis that Sky is pumping significant money into the gaming area.