Chill Brands (CHLL), the consumer packaged-goods distribution company, announced a new equity fundraising of approximately £2.4m at a price of 3.75 pence per share. CHLL said its uptake of its Chill vape products continues to exceed expectations and sustained demand for reorders from our current independent retailers is a clear indicator that our products are resonating well with consumers. It is now equipped to scale the Company’s operations to meet the growing appetite for its products. Over the coming months it will engage with further leading stores and drive brand awareness through targeted marketing campaigns as Chill ZERO launches into mainstream retail.
Comment: It may be that some followers of CHLL were thinking that the company would not need to raise cash given the sheer size of uptake for its vapes. That said, it could be that given how well flagged the latest raise was by some of the company’s more sociopathic detractors, this actually helped in getting the placing away and takes the pressure off having to talk up sales.
Phoenix Copper (PXC), the AIM-quoted USA-focused base and precious metals emerging producer and exploration company, announced a retail offer via BookBuild of new ordinary shares up to the value of £200,000 at an issue price of 11.5 pence per Retail Offer Share. PCX In the event that the Bond Financing does not complete and a new facility is not put in place before 23 March 2024, the Company will be required to seek alternative sources of funding to fund the future working capital and capex requirements of the Company, and to repay the Facility.
Comment: It should be the case that the bond financing does go ahead, if only on the basis of the quality of what PXC is sitting on Idaho. This should mean that any further weakness in the stock is indeed a decent risk/reward opportunity.
Predator Oil & Gas (PRD), the Jersey based Oil and Gas Company with near-term operations focussed on Morocco and Trinidad, provided a corporate update. PRD said it was pleased to be finally making progress on the rigless testing programme. The initial phase is important to it for designing and implementing the Sandjet rigless testing programme which will follow on after the Sandjet operational planning work is completed.
Comment: While one might not instinctively think that PRD’s rigless testing programme is big in the scheme of things, the run up to this has witnessed an improvement in the share price. In the near term it is all about cracking post summer 13p resistance. Perhaps that would be another fundraising zone.
Global Petroleum (GBP), an oil and gas upstream exploration company presently focused on Africa and the Mediterranean, announced that the Company has entered into a Partnership Agreement with Cynergy East Med LLC. Under the terms of the PA Cynergy and Global will look to explore energy opportunities in the East Mediterranean. GBP said that on appointment it would aim to maximise shareholder value and deliver a pathway to profitability. It was excited by the opportunity with Cynergy to evaluate the prolific Eastern Mediterranean basin. It believe that this partnership has the potential to assess some very exciting assets.
Comment: No doubt today’s update from GBP should continue to ensure that this stock is one of the main micro cap punting situations on the London market. It should also ensure that the recent rebound in the shares has legs.
SkinBioTherapeutics (SBTX), the life science business focused on skin health, announced that it has completed the acquisition of the issued share capital of Dermatonics Limited, a specialist in innovative topical and dermatological products in the skincare/woundcare space. SBTX said it was delighted to have completed the transaction with Dermatonics. This acquisition aligns directly with the inorganic growth strategy it outlined in its FY results last year. This is an accretive deal that provides immediate benefits through synergies and accelerated routes to market. Its focus now is to integrate the two businesses and build value for its shareholders.
Comment: Although in theory engaging in accretive deals is a good idea if you are on the stock market, since the end of October shares of SBTX have more than halved, so it may be that the company needs to polish up its comms with investors.
Orosur Mining (OMI) the minerals developer and explorer with operations in Colombia, Argentina, Nigeria and Brazil announced its unaudited results for the quarter ended November 30, 2023. On January 23, 2024, the Company announced that discussions with Monte Aguila are currently focussed on exploring options whereby Orosur would acquire MMA’s interest in the Anza Project. Such an outcome, if achieved, would see the Company returning to having a direct or indirect interest of 100% in the Anza Project. Negotiations are progressing towards this objective; however, these are not final and as such there is no certainty that such a transaction will be agreed, and if so, on what terms.
Comment: It is interesting that shares of OMI rebounded this week despite the no doubt Nomad friendly and Nomad induced cold water statement regarding “no certainty” in terms of Anza.