Hummingbird (HUM) provided an operational and exploration update, including recent drilling results. In its placement update the Company confirmed an additional conditional subscription of c.US$2.0 million, including US$1.0 million from Ernie Nutter a Non-Executive Director of the Company. Further, the Company is offering an open offer to its existing shareholders to raise up to c.US$5.0 million. HUM said that in late November it became increasingly evident that the slower than expected ramp-up at Kouroussa was placing increasing strain on the Company’s balance sheet. As such, the difficult decision was made to inject additional funds into the business through an equity offering. This was aimed not only to fortify its balance sheet, but also to provide capital support for the Group’s operations.
Comment: While HUM’s ramp up may have been slower than expected, leading to the fund raise, the company should now be in a position to deliver for shareholders through its sprawling portfolio.
Helium One Global (HE1), the primary helium explorer in Tanzania, announced that, following the announcement on 20 December 2023 regarding the launch of a proposed placing, it was oversubscribed to raise approximately £6.0 million and a Subscription to raise approximately £18k. The Issue Price represented a discount of approximately 72 per cent to the closing price of 0.09 pence per Ordinary Share on 19 December 2023. HE1 said it was pleased with the response received during its oversubscribed Placing and Offer. These funds are essential and enable it to complete the drilling of the Itumbula West-A well now, whilst it still have all equipment and third party services mobilised.
Comment: HE1 gets its latest fundraise away via a jaw dropping discount, one that effectively gives the company another / last throw of the dice in terms of finding helium. Given the share price, if it does succeed at Itumbula one could say the risk / reward may be attractive to high octane punters.
Greatland Gold (GGP) provided an updated Mineral Resource Estimate for Havieron, its flagship gold-copper project located in the Paterson Province of Western Australia. GGP said it was delighted by the continued growth in the Havieron Mineral Resource Estimate. The growth journey in the resource has been very significant with the total gold equivalent Mineral Resource content having increased from 4.4M oz in the October 2021 MRE, to 6.5M oz in the March 2022 MRE, and now to 8.4M oz in 2023.
Comment: Given the latest resource growth news, one would regard the recent pullback for the shares from 11.5p as being overdone, and providing an value entry point for the stock.
LifeSafe Holdings (LIFS), a fire safety technology business, announced its intention to raise gross proceeds of up to, in aggregate, approximately £370,000 by means of a placing of new Ordinary Shares to certain institutional and other investors at a price of 16 pence per share.
Comment: LIFS has underpinned its fundamentals with the news regarding fluid for industrial use, something which should markedly expand the business from its current retail focus. The latest fundraise is a logical accelerator for growth.
Incanthera plc (AQSE:INC), the company specially focussed on innovative technologies in dermatology and oncology presented its interim results for the six months ended 30 September 2023. Following the period end, Incanthera announced, on 18 December 2023, a commercial skincare deal for Incanthera’s dermatological technologies with Marionnaud, part of the world’s largest health, beauty and lifestyle brand retailer A.S. Watson Group. The post-balance sheet event of the commercial skincare deal is expected to transform Incanthera into a company with significant revenues and profits, generating free cash flow from roll out in Q2 2024.
Comment: The deal with Marionnaud will indeed be transformational for INC, given the company’s unique precision targeting technology. Even in current stock market conditions investors will always be keen to back a rollout that will deliver free cash flow.
GSTechnologies (GST), the fintech company, announces the Company’s interim results for the six months ended 30 September 2023. GST said the period was again one of significant progress for the Group as it focused on developing a borderless neobanking platform providing next-generation digital money solutions, both organically and through complementary acquisitions. This is being undertaken under the Company’s GS Money banner, primarily through the Group’s Angra Global and GS20 Exchange businesses.
Comment: GST continues to be a much followed company, in a space which has been one of the most solid growth areas of fintech. One would expect a return to November’s share price highs earlu in the new year.
Concurrent Technology (CNC), reports winning a £2.2m contract to supply a major multi-national European Defence Prime Contractor with VME Processor Boards for its air-defence systems. VME Boards are designed and tested to operate in and withstand harsh environmental factors and meet all technical and security requirements and well supported. The multi-year contract is to be fulfilled in-line with the manufacture of air-defence system and highlights the potential current generation VME boards in a substantial market opportunity. In the last Trading Statement, revenue for the six months to 31 December 2023 is expected to be substantially higher than is the company’s history as its driven by the strength of order intake after significant investment in product development. A funding for an acquisition and WC raised £6.6m at 65p, mainly with institutions but a small retail offer. An Interims dividend was not declared, however it could be resume at the finals and historic P/E of 56x should drop sharply.
Comment: At 76.5p with a £65m mkt cap the growth rating is starting to be deserved.