Hummingbird (HUM) provided an update on the results of its open offer to its existing shareholders to raise up to c.US$5.0 million (£4.0 million). The Open Offer is additional to the conditional placement of c.US$22.2 million, which includes a conditional investment by the Company’s largest shareholder and strategic investor CIG SA of US$20.2 million, and the US$5.5 million already raised pursuant to the first tranche of this fundraising. The Company announced the closing of the Open Offer, and that it has received valid applications, in respect of a total of 2,369,119 new Ordinary Shares, totalling c.£0.27 million (c.US$0.34 million). Should the Resolutions be passed at the General Meeting, the sum of the CIG Subscription, the Subscription and the Open Offer would result in total gross proceeds for the Company of c.US$28.1 million (c. £22.2 million).
Comment: HUM is looking to put itself in a strong financial position ahead of production ramp ups this year. With gold looking firm about $2,000 an ounce, and the company having the backing of CIG as a strategic investor, we can expect 2024 to represent a significant fundamental inflection point. This should ensure that the current share price under 10p represents a value entry point for those new to the stock.
Cornerstone FS (CSFS), a foreign exchange and payments solutions company, provided an update on trading for the year ended 31 December 2023. Revenue growth of 100% to c. £9.6m (2022: £4.8m. Adj. EBITDA of not less than c. £1.4m (2022: £0.9m adj. EBITDA loss). CSFS said with a highly scalable platform, along with careful management of its cost base, it is also benefitting from the operating leverage within its business and 2023 has seen it report its maiden full year adjusted EBITDA.
Comment: CSFS has been a winner both in terms of the share price more than tripling since the start of the autumn, but also with the backing of heavy hitters on fintwit. Given the excellent metrics, and scalability of the business, the £15m market cap is still relatively modest.
Advanced Medical Solutions Group (AMS), the specialist in tissue-healing technologies, announced its unaudited trading update for the year ended 31 December 2023. The Group said Full Year 2023 results are expected to finish towards the middle of its published guidance ranges of £124-127 million for revenue and £25-27 million for adjusted profit before tax. AMS said the completion of the new US LiquiBand® route to market strategy, the US Connexicon acquisition and the roll-out of LiquiBand® XL will support the delivery of record US LiquiBand® revenues in 2024 and sets its up strongly to deliver our target of doubling our market share over the next five years.
Comment: AMS shares are still attempting to regroup after the September profit warning. It will be key that the stock climbs back above pre-warning support above 220p early in 2024.
ECR Minerals (ECR), the exploration and development company focused on gold in Australia, provided an overview of its Lolworth Project in Queensland. ECR said alongside the gold, it also found the presence of the sought after Niobium-Tantalum Rare Earth minerals and, whilst this is only an initial indication, it expects this story will continue to develop. Its work for the 2024 season in Queensland is likely to include trench sampling and drill target generation. Additionally, it looks forward to updating shareholders as operations continue In Victoria.
Comment: It is evident that Mike Whitlow and the rest of ECR really have the bit between their teeth in terms of turning the company around, with the latest sizzle being the rare earth angle at Lolworth. It really does look like anything under 0.3p will be regarded as a value zone for the stock as 2024 progresses.
CAP-XX (CPX), a company involved in the design and manufacture of supercapacitors and energy management systems, updated regarding its IP and appeals process. CPX said it believes that the Delaware District Court judgment will not have a materially adverse effect on CAP-XX’s ongoing business, which remains in line with the update provided on 21 December 2023. The Company looks forward to proceeding with its current product range, supported by a strong portfolio of current IP, to focus on the key short-term actions to maximise sales and deliver profitability.
Comment: There were four main sharp rally attempts for CPX shares during November and December, and all were sold into within 24-48 hours. This may suggest that although the company is putting a brave face on the Delaware judgement, it needs to do more to convince investors.
Neometals (NMT) announced that Primobius GmbH has received a PO for supply of a hydrometallurgical refining Hub from Mercedes for installation at its Kuppenheim operation in Germany. Primobius is an incorporated battery recycling JV, company owned 50:50 by Neometals and SMS group GmbH. Primobius is commercialising a patented LiB recycling process via a plant supply and technology licensing business model. The PO value is ~ €18.8M (~ A$30.8M) and was awarded as part of a cooperation arrangement with Mercedes. NMT said it was proud to partner with Mercedes in its journey to lead the closed-loop recycling of lithium batteries. The relationship exemplifies some of the unique aspects to Primobius’ business model.
Comment: One would have thought that today’s Mercedes news would be treated with a celebratory rally of some magnitude by the market. Should this not be the case a re-think of what investors are looking for at NMT may be in order by the company.
Creo Medical Group (CREO), the medical device company, announced that its latest device, Speedboat® UltraSlim, has now been successfully used in Latin America for the first time, with 12 patients treated in three days. CREO said the procedures done at IECED have shown the full potential of the new Speedboat UltraSlim. It was thrilled to witness the successful execution of the F-POEM procedure using solely the Speedboat device, a task that traditionally requires three separate instruments. This not only showcases the device’s efficiency but also enhances the cost-effectiveness of the procedure, underscoring the economic advantages Creo’s technology can deliver to its valued customers.
Comment: Shares of CREO have already delivered a pleasing rally ahead of today’s news, something which should at the very least enable a decent consolidation at the higher levels. That said, they are still below 50p, versus 150p plus in early 2022. There is still plenty of upside possible in the recovery here.
Proton Motor Power Systems (PPS), the designer and producer of hydrogen fuel cells and hydrogen fuel cell electric hybrid systems, announced the introduction of its new HyModule® S4 fuel cell system solution. PPS announced the introduction of its HyModule® S4 system, developed to deliver hydrogen solutions to smaller power generation needs. The successful presentation of this new product reaffirms the Company’s commitment to commercialisation, through the continuous development and refinement of its hydrogen technology, as well as the increasing interest in innovative hydrogen technology to support the energy transition.
Comment: Given that the shares have been bumping along the bottom at best in the recent past, it really will be evidence of commercialisation that is needed to get the stock on the front foot any time soon.
Sanderson Design Group (SDG), the luxury interior design and furnishings group, is pleased to announce that its Morris & Co. brand has signed a licensing agreement with ENVOGUE International, a New York designer and distributor of fashion-forward products for the home. The first products from the agreement will be launched during the coming months for Spring/Summer 2024. Accelerated licensing income of £0.7 million will be recognised by the Group in the current financial year to reflect the minimum guaranteed revenues in the agreement.
Comment: Shares of SDG have risen well since the autumn, and one would expect this process to continue in the wake of the latest licensing income news. A return to last year’s best levels through 140p by the end of Q1 should be in order.
Valereum (VLRM), the Gibraltar technology group is pleased to announce that the EGM to ratify approval of the acquisition of GSX Group will take place on Tuesday 30th January 2024. Nick Cowan has officially joined the Board as Chief Executive Officer. Formerly serving as GSX Group CEO and founder of the Gibraltar Stock Exchange and GSX Group. Simon Brickles has officially joined as a Non-Executive Director to the company. Simon, the current group Chairman of the GSX Group.
Comment: It is interesting that VLRM has gone from having its previous board attempting to buy the Gibraltar Stock Exchange, to former GSX personnel becoming directors of the company. Gamekeepers turning poachers, or vice versa. Presumably now things will progress in the way that the previous board was hoping for.
Equipmake (AQSE:EQIP), the UK-based engineering specialist, announce that the Company’s contract with Big Bus Tours Limited has been doubled to repower a fleet of 20 buses for a total of £3.5 million. EQIP said this contract extension will increase their repowered fleet by 100% and demonstrates both the quality and efficacy of our products, and also the level of investment being made by businesses across the transport spectrum as they move towards a net zero future.
Comment: EQIP is by quite a margin one of the most promising companies on Aquis, and even though this may not be saying much, any exchange is only as good as the companies on it. EQIP already bears all the hallmarks of being a future blue chip.
Cellular Goods (CBX), a UK-based company pioneering the use of lab-based and biosynthetic production methods, announced that Michael Edwards (Executive Director of Cellular Goods) has purchased a total of 2,500,000 shares at 0.417p. He now holds a total of 8,000,000 Ordinary Shares, representing 1.33 per cent of the Company.
Comment: Very impressive that Mr Edwards has bought in the market, showing he means business, and making it highly likely that the latest rebound and changes at CBX will have legs.
Renalytix (RENX) announced publication of Real World Evidence after 12 months of follow-up in 2,569 patients with Type 2 diabetes and diabetic kidney disease at a major U.S. health system in Primary Care and Community Health. RENX said this published real world evidence puts KidneyIntelX at the intersection of multiple established diabetes, kidney and cardiovascular care guidelines. This data is compelling and shows the importance of adopting KidneyIntelX across primary care networks to help control these unsustainable chronic diseases that unnecessarily effect millions of patients.
Comment: RENX shares have delivered a brutal sell off since the beginning of the autumn, something which news like today’s needs to turnaround. That said, it may still take a while for the market to get over the news of revenue halving at the Q1 stage.
Nightcap (NGHT), the owner and operator of 46 premium bars, announced a positive trading update for the four week 2024 Christmas period as well as the 13 weeks and 26 weeks ended 31 December 2023, with record trading weeks across several of the Group’s sites. This positive trading is despite the ongoing challenges of train strikes, inflation and the cost of living crisis. NGHT said it could not be prouder of the entire Nightcap team as it continues to build the UK’s leading premium bar group. To achieve half yearly growth of 40.9% in revenue and 11.9% growth on a like-for-like* basis for the important four week Christmas period is a monumental effort.
Comment: Although the company appears to be quite skilled at attracting the odd detractor, even the cynics may have to recognise that merits of the revenue growth. This should at least deliver a temporary rally for the shares off recent lows.
KEFI Gold and Copper (KEFI), an explorer in the Arabian Nubian Shield, announced that it has received confirmation of conditional final credit committee approval from the lead lender for its “shovel-ready” Ethiopian development project, the high-grade Tulu Kapi Gold Project and the $320m finance package. KEFI said the targeted value-add from Project implementation is many times today’s KEFI share price, as illustrated from the various industry-standard valuation benchmarks historically reported in its corporate presentations.
Comment: If KEFI can get its $320m one can indeed say that shares of the company should be “many times” current levels. Otherwise the recent holding pattern remains, although one would guess that if there is even a sniff of the funding being delivered things will start to move quickly.
Oxford Cannabinoid Technologies Holdings (OCTP), the biotech company developing prescription cannabinoid medicines, announce that it has filed a European application in its own name, directed to Programme 2. OCTP said today’s announcement is testimony to its ongoing research and development strategy and its commitment to generating new intellectual property as a pathway to commercialisation. This European patent application further embeds its progress in relation to Programme 2’s potential, which initially targets Trigeminal Neuralgia.
Comment: OCTP’s share price has been disappointing since the summer, even though news like today’s underlines the way that the journey to commercialisation may not be a long one. In the meantime the company is moving to underpin its IP.
IQ-AI Ltd (IQAI) said its subsidiary Imaging Biometrics, LLC (IB) is launching an intermediate population cohort expanded access program (EAP) for oral gallium maltolate (GaM), subject to FDA approval. IQAI said along with providing immediate access to GaM for the potential benefit of some patients, the EAP will accelerate data obtained from a broader, real-world, patient population. This data would advance the development process on many levels including maximizing the full benefit of the Fast Track Designation. Pending FDA approval, it expects the EAP to start in Q2.
Comment: IQAI shares have already been rewarded as the market looks forward to FDA approval. One would expect this re-rate to accelerate as the thumbs up event draws nearer.
1Spatial (SPA) since the interims to July losses of £0.3m on £8m revenue an RNS reiterating the strategic global need for Location Master Data Management software and solutions. Today it announced a total of $3.4m new multi- year contracts with a two-year expansion contract to support the Californian Department for Transportation, a three-year contract extension with a Global Utility headquartered in France and a four-year contract with ATKIS-1Gen.These wins are with major organisations, expand its presence in Europe and the US with the likelihood of further opportunities for its patented technology. Currently, around 53% of its revenue is recurring and Gross Profit margins are a respectable 50% and in July net cash was £0.3m after increasing R&D costs.
Comment: At 51.5p and a £57m Mkt cap the rate of long-term growth is improving but it already seems adequately reflected in the P/E of 51x.
Great Western Mining Corporation (GWMO), which is exploring and developing gold, silver and copper targets in Nevada, updated on its 50% owned process mill in Mineral County, Nevada. The company said Western Milling has achieved its objective of completing construction of the process mill by the end of 2023, within 12 months of project start-up. The joint venture is ready to commission the plant and start operations as soon as the environmental permit has been issued.
Comment: It is encouraging that we have been treated to a rebound in GWMO shares, even though we are waiting on the environmental permit. This suggests that sentiment towards the company is finally changing, after quite a frustrating journey.
Light Science Technologies (LST), provided a trading update for the 12 months ended 30 November 2023. During the Period, the Group saw revenue increase by approximately 13% to c.£9.25m (2022: £8.17m), driven by growth across each of the trading divisions, as LSTH made solid organic and acquisitive progress. LST said the core focus for the Group remains on growing revenue and margin, controlling overhead costs and ultimately becoming operationally cash self-funded. LSTH has a group of businesses that is targeting large growth markets and offers near to medium and long-term opportunities.
Comment: 2023 was a turnaround year for LST, as the market started to appreciate its niche, and the prospect of the company becoming self-funded. The key here is getting back above last year’s 3p resistance zone for the stock.
Sondrel (SND), the fabless semiconductor business, provided a further update in respect of the financial year ended 31 December 2023. SND said the end of FY23 was clearly a challenging period. Importantly, its operating model and its growth ambitions remain the same . Whilst it is disappointing to see the FY23 financial results impacted by the previously announced delays in this project, the expectation remains that the project will be completed in Q1 2024 and the Company remains encouraged by significant new ASIC business opportunities in the final stages of negotiation.
Comment: Although there is little doubt that SND is a falling knife opportunity, finally any dips below 5p do appear to be genuine and lasting entry points for those who believe management can turn this situation around.
Totally (TLY), a provider of frontline healthcare services, announced it has been awarded a contract extension by NHS England to provide national NHS 111 contingency services for a further year. The contract, awarded to Vocare Limited, part of Totally Urgent Care, will run for 12 months from 16 February 2024 at a value of c.£13 million per annum. TLY said the extension of this contract for a further year means that Totally continues to be a core partner in the delivery of NHS 111 services until February 2025.
Comment: Given that TLY appears to have a window seat in first class on the NHS gravy train, the ongoing share price weakness seems to be overdone, even for a bear market.
Sosandar (SOS), a UK fashion brand, provided a trading update covering the three-month Period ended 31 December 2023. This included a record quarter with revenue of £14.3m, up 23% year-on-year (Q3 FY23: £11.6m). SOS said it is a business towards reaching its strategic goal of delivering £100m+ revenues and a pre-tax profit margin of at least 10% in the medium term. The Board confirms that the Company continues to trade in line with market expectations for the current financial year and further expects the current momentum to be sustained over the final quarter.
Comment: Having hit the lows in October, SOS’s latest record quarter should mean that the tentative re-rate we have already been treated to in recent weeks continues towards at least the 20p level.