Chill Brands Group (CHLL), the consumer packaged-goods distribution company, responded to proposals published by the UK Government relating to the regulation of disposable vape products. CHLL said it is an agile company, and it is prepared to adjust to any legislation that may be enacted. In the meantime, its existing high-puff count and rechargeable devices will continue to be sold by US and UK retailers who have demonstrated a strong appetite for products brought to market under the Chill brand.
Comment: Given that even if the axe falls on CHLL and its peers there is still a 6 months implementation period on any vape rule changes, there will be plenty of time for the long awaited sales figures to be revealed. At least the company got its £2.4m fundraise over the line last week, just before this latest bump in the road. The high-puff can continue for now.
Symphony Environmental Technologies (SYM) The final Judgement, is due from the EU Court on the alleged misclassification of SYM’s patented oxo-biodegradable additive. A written judgment this Wednesday 31st of January, has the possibility of awarding SYM substantial damages, as well as opening the door to the EU market. SYM supply and develop technologies that make plastic and rubber products smarter, safer, and sustainable. d2w is an additive that controls the shelf-life of plastic making it oxo-biodegradable (its rots like a leave) so reducing the impact of plastics on the environment but the EU classified it as not being bio-degradable. SYM recently raised a £1m CLN in anticipation of closing significant commercial contracts.
Comment: At 5.5p with a £10m Mkt cap there is the possibility of substantial damages and there is no downside on costs etc. which have been covered. The speculative tension should start to build. Win or lose we are interviewing Michael Laurier, the CEO on Thursday 1st February.
Loungers (LGRS), an operator of all day café/bar/restaurants across the UK, announced the opening of its 250th site. LGRS said the Pionero Lounge in Rochdale opens today and marks the latest landmark for Loungers as the Group continues its accelerated site opening programme across the UK. LGRS said in many ways, it feels like it is only just getting started and there is so much more for it to go after. It is on track to open 34 sites in the current financial year, which will be a record for it and will involve the creation of over 1,000 new jobs. In the longer term, it believes there is scope for over 600 Lounges alone across the UK.
Comment: Although the Pionero Lounge in Rochdale does not quite sound as glamorous as the Viper Room, West Hollywood, it is clear that the roll out at Loungers is doing well, and the share price has responded in kind. Perhaps it can consider opening in White City?
PYX Resources (PYX), the world’s third largest publicly listed zircon producer, provide operational results for the Full Year 2023 ended 31 December 2023. It reported a continued upswing in premium Zircon production with a second half 29% YoY increase and a total 31% increase in FY2023 compared to the corresponding period in FY2022. PYX said it was immensely proud to share the achievements PYX has attained in the past year. Its robust performance in Q4 FY2023, marked by a 31% increase in zircon production, a 24% rise in zircon sales and renewal of key licenses for Tisma and Mandiri.
Comment: Although it may be the case that the market still does not know what zircon is used for, the production increase at PYX should soon start to lift the shares off their recent lows.
RegTech Open Project (RTOP), the technology business specialised in regtech, announced a significant £0.2m agreement, representing more than 10% of the Company historical revenues, with a leading Italian cooperative banking group. RTOP said this agreement represents another significant milestone in the delivery of the Group’s strategy. This deal not only demonstrates the industry leading capabilities which RTOP offers its clients, but also highlights its ability to develop and grow value-based relationships with high profile, systemic European banking groups.
Comment: While today’s “significant” agreement may have cold water thrown at it by RTOP’s fervent array of bears, it should be just about enough to keep the shares from breaking back below recent support under 10p.
Europa Oil & Gas (EOG), the oil and gas company, said that it has received notification from the Irish Government’s consent to extend the Phase 1 of FEL 4/19 to 31 January 2026. The Company intends to use the extension to carry out further technical studies and allow more time to secure a partner to advance development of the licence. EOG said it was delighted that its application has been granted and that it can continue with further technical studies of the licence and seeking a project partner. FEL 4/19 contains the large 1.5 TCF, low risk Inishkea West gas prospect which is a strategic asset that can potentially provide a reliable source of low emission energy for Ireland.
Comment: Given that Ireland has been in the forefront of countries marred by green mania, today’s announcement seems to be a helpful acknowledgement that the Emerald Isle needs to build up some energy security, rather than bow to the Woke brigade.
Smarttech247 (S247), a cybersecurity services provider, announced its audited final results for the 12 months ended 31 July 2023. Adjusted EBITDA increased by 36% to €2.70 million (31 July 2022: €1.98 million). Adjusted operating profit of €2.15 million (31 July 2022: €1.76 million). S247 said it has entered into several new contracts during the period, and since the period end, with large, international organisations, and hopes to continue this momentum with its larger sales capacity to further increase its revenue and profit growth going forward.
Comment: While it is clear that S247 is going great guns, especially in respect to its non profitable peers, the message from the latest results and the share price, is that perhaps the market is looking for bigger metrics all round, especially given the company’s now international reach.
Oracle Power (ORCP), an international project developer, updated shareholders on the farm-in by Riversgold on the Northern Zone Intrusive Hosted Gold Project, near Kalgoorlie in Western Australia. ORCP said this is a highly exciting prospect, and it hopes to turn it into a lucrative source of value for Oracle investors, with Riversgold, its potential JV partner.
Comment: It is ironic and understandable that with all ORCP’s big scale projects, it is the smallest which has gotten over the line quickest, and been the sweetest. At least Northern Zone remains the part of ORCP which reminds the market that the project developer model can work well.
Beacon Energy (BCE), the full-cycle oil and gas company, announced an operational update on the Schwarzbach-2 (2)well in the Erfelden field. BCE said it remains fully focused on establishing optimal production from the SCHB-2(2.) well as quickly as possible through the rod pump and ultimately the installation of the ESP. Despite these operating challenges, the exceptional technical results of the SCHB-2(2.) well have materially increased the potential reserves of the Erfelden field and provided confidence on the productivity potential from this and future wells.
Comment: BCE shares are now at a quarter of the level that they were back in September, with the latest update not likely to deliver a rebound for the stock any time soon. At least the company raised £4m at the highs to progress its plans.
Union Jack Oil (UJO) announced details of its initial expansion into the United States of America, with the purchase of three Mineral Royalty packages brokered by the Company’s agent and adviser, Reach Oil & Gas Inc. UJO said it was announcing a strategic expansion into the United States by investments in Permian Basin focused royalties and an intended future collaboration, with Reach. Union Jack’s existing onshore UK conventional production, development and exploration activities will remain our core focus for the foreseeable future. This distinct strategy has transformed the Company in to a self-sustainable, dividend paying, profit making entity.
Comment: It is interesting to see that having secured its UK plans and payouts, UJO seems confident enough to don its JR Ewing Stetson and head Stateside. Ideally, this expansion marks a scaling up of the company.
Jersey Oil & Gas (JOG), an independent upstream oil and gas company, provided a corporate update following the successful delivery of its stated farm-out strategy during 2023. JOG said as a result of the 2023 transactions, JOG’s value and investment proposition has been transformed. The value of the business is firmly underpinned, with the planned FPSO development solution delivering robust economics and providing the route to full monetisation of the GBA portfolio.
Comment: Yet again in November the rally in JOG shares was sold into above 200p. One would imagine that in the wake of the latest update, and with the company fully cashed up, the next rally will finally have legs.
DG Innovate (DGI), the electric mobility and energy storage group, announced it has signed a Joint Development Agreement with a tier one commercial vehicle components company, to jointly develop systems for heavy goods vehicles applications utilising DG Innovate’s Pareta® drive technology. DGI said this agreement with a global leader in commercial vehicle components highlights the substantial and varied opportunities for the technology behind DGI’s Pareta® drive in a very large market.
Comment: The Tesla connection alone means that DGI has a punter X factor that few companies possess. Perhaps a little explanation of what the Pareta® drive technology is, and the market opportunity might help get the stock up another leg.
Amaroq Minerals (AMRQ), an independent mine development in Southern Greenland, provided additional exploration results from within the Nalunaq mine following its 2023 exploration programme. “A thorough underground exploration programme has enabled our team to identify further resource and mining potential at Nalunaq. These channel results highlight the continuity of the high grade at the Target Block beyond the last historic stopes. This significantly de-risks a designed underground rehabilitation and exploration programme aimed at advancing additional development faces, which should help the Company to progress towards its target production rate of 300tpd and increase the overall contained resource.
Comment: AMRQ has been a steady pair of hands, not only in terms of the share price rally since the summer, but operationally as the company proves up its resource and production capabilities.
Croma Security Solutions Group (CSSG) announced a positive update on trading for the six months to 31 December 2023, as well as a three year NHS Trust contract renewal. The Company said it has delivered a solid first half performance and is expecting to report in line with management expectations with revenue of £4.28 million (HY22: £3.77 million excludes non-continuing businesses) an increase of 13.5% on the equivalent period last year.
Comment: Shares of CSSG have had a solid run since November, and one would expect a fresh break to the upside given the latest positive update from the company, enjoying the NHS contract gravy train.
Coinsilium Group Limited (AQSE: COIN), the Web3 investor, updated in respect of its investee company Singapore registered Indorse Pte. Ltd and collaboration with Indorse on the Byzant Web3 Social Network Ecosystem. COIN said it sees a growing interest in the benefits of decentralised social networks and the Web3 applications enabling these networks, and the talented team at Indorse has the perfect technical skills to propel Byzant to a leading position in this emerging space.
Comment: It would appear that with its latest focus on Web3, COIN has finally captured the market’s attention and been rewarded in kind. At least Web3 is one of the more understandable aspects of the new economy.
Blencowe Resources (BRES) announce it has received a formal LOI from the US International Development Finance Corporation in which the DFC has indicated its willingness to participate in debt funding for the Orom-Cross graphite project in Uganda, subject to all necessary due diligence. BRES said its executive management team will be meeting DFC in the near term to evaluate the project implementation strategy and build on the momentum we have already created together. We believe this is a unique partnership that is significantly de-risking Orom-Cross and we will continue to showcase this exceptional asset as we deliver the DFS results this year.
Comment: It does not get much better than being intimate with the DFC if you are a mining company, something which makes BRES ongoing share price flat lining even more of a mystery, and perhaps an achievement.
Falcon Oil & Gas (FOG) announced the commencement of the 30-day initial production (IP30) testing at the Shenandoah South 1H well in EP117, operated by Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran B2 Pty Limited. FOG said it is looking forward to this next phase of operations with the initial production testing of the SS1H well in the Beetaloo and will continue to update the market as results become available.
Comment: Even though FOG is relatively under the radar, the rally in the stock since last month has been significant, and one would imagine a breakthrough one year resistance at 11p to be imminent and potentially large.