Yesterday Pennpetro Energy (PPP), said it signed a very significant and transformative deal HOT with Globalvision International U. LDA, an energy trading business based in Madeira, whereby they will buy all of the shares in Pennpetro’s subsidiary in Texas Nobel USA Inc in exchange for a life of asset currently estimated at around 30 years oil sales revenues through a 12.5% Overriding Royalty Interest on the Texan oil wells.
Comment: After a rather tough time to date on the stock market, PPP delivers a genuine 1+1=3 deal, which saw the shares soar yesterday. It will be interesting to see how much of the gain the stock can keep, given the rabbit out the hat nature of the deal, and the runners and riders involved.
Fusion Antibodies (FAB), specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announced the launch of its new interactive investor hub which is accessible from the Company’s website. FAB said engaging with its shareholders has always been fundamental at Fusion. The launch of its new interactive investor hub marks an exciting step forward, providing a dynamic platform for current and potential investors to connect with it as well as to gain a comprehensive understanding of its mission, its technology and its business.
Comment: Given that to date FAB has been very good at not engaging with shareholders, the latest investor hub move is to be commended. But it should be remembered that just setting up the platform is one thing, putting in the hard yards in terms of the right comms is another and should not be regarded as a box tick as so many such services are.
Bluebird Merchant Ventures (BMV), a gold company primarily focused on bringing historic mines back into production, announced that it has signed a $2 million Farm-out Agreement for the high grade Kochang Gold & Silver Project in South Korea to fully fund bringing it back into production. BMV said the signing of a US$2 million investment to take the previously producing Kochang Gold and Silver Mine to production is fantastic news. This is the final JV structure to be implemented in the Company’s portfolio, providing a free carry on all three of its high-grade projects.
Comment: It has been a golden run already for shares of BMV since the beginning of May, and one would think that today’s farm-out news would be the icing on the cake for a rally which has already seen the shares triple in value.
Avacta Group (AVCT), a clinical stage life sciences company, announced that it has elected to settle in cash the upcoming July quarterly amortisation payment in respect of the Company’s unsecured convertible bonds. AVCT said after settlement of the quarterly repayment, the principal remaining under the Convertible Bonds will be reduced by £2.55 million to £33.15 million. AVCT said it remains on track to achieve its stated corporate objectives for 2H 2024, namely to update the clinical data in the AVA6000 programme, to initiate enrolment in the expansion cohorts of the AVA6000 Phase 1 trial and disclose the updated pipeline.
Comment: One of the main thrusts of the bear argument at AVCT was the rather chunky convertible bond, something which has been swept aside by the doubling of the share price in recent weeks in the run up to H2 2024 clinical data revelations.
Union Jack Oil (UJO), a UK and USA focused onshore hydrocarbon, production, development, exploration and investment company, announced a positive drilling update in respect of the Andrews 2-17 well, located in Seminole County, Oklahoma, United States. UJO said work continues on the gas export pipeline at the site of the commercial Andrews 1-17 well (Union Jack 45%) and as previously reported it expects to update the market on progress on this well in early August 2024.
Comment: We continue to look for shares of UJO to resume their recent recovery from under 16p at the start of this month, backed by progress at the Andrews 1-17 well. A return to the upper 20p’s by the end of the summer is expected.
Graft Polymer (GPL) announced the initiation of a review of the Company’s operations and on 7 June 2024, provided a progress update disclosing that the Board was evaluating a shortlist of five entities for potential future commercial collaboration. It has selected Awakn Life Sciences Corp. as the partner for its first commercial collaboration. GPL said today’s Collaboration Agreement aligns perfectly with its objective of leveraging its existing drug delivery system to enhance the effectiveness of therapeutic treatments.
Comment: The newsflow of late at GPL has been like a military operation, therefore it is somewhat surprising that the initial reaction today regarding a commercial collaboration has been greeted by a share price markdown.
URA Holdings (URAH) announced the acquisition of a majority interest in Prasinus Exploration Pty Ltd, the owner of the Curlew Emerald Mine located in the Pilbara Region of Western Australia. This acquisition represents a significant addition to URA’s asset portfolio, of producing emerald mines and enhancing its strategic position in the global gemstone market. In conjunction with the acquisition, URA has raised £425,000. URAH said it was thrilled to add a controlling interest in the Curlew Mine to its mining portfolio. This acquisition, and its current working capital needs, are now fully funded by the successful completion of an institutional Placing; and is a further testimony to the quality of URA’s emerald projects.
Comment: With Gravelotte under its belt and in production, it makes sense that URAH moves forwards to leverage up production with a new acquisition, turning it into a significant sector player.
Northern Bear (NTBR) report finals to March in line with the recent rain effected Trading Statement with Revenue marginally lower at £68.7m but PBT increasing to £2.2m compared to £1.9m. A 2p dividend is to be paid and the EPS improved 1p to 9.5p partly helped by buying back 5m share at 62p for cancellation. This is to enhance the capital structure, reduce the share overhang and allow it to fund strategic growth. After the wet H1, the outlook is improving at its 12 businesses across three divisions, Roofing, Materials Handling and Specialist Services. Soggy, organic growth may be helped by Government regulation in Decarbonisation as its customers invest in reducing cardon emissions. The net debt is £2.2m and operations are cashflow positive, so the organic growth is funded.
Comment; ( Jon Lev) At 61.5p the mkt cap is £8.46m the P/E of 6.5x with a 3.2% yield seems low, but the sizzle could come from opportunistic acquisitions helped by the tighter share structure.
AJ Bell (AJB), one of the UK’s largest investment platforms, issued a trading update in respect of the three months ended 30 June 2024. Assets under administration closed at £83.7 billion, up 20% over the last year and 4% in the quarter. Recent stock market performance has boosted confidence amongst D2C customers, resulting in higher levels of dealing activity in recent months, with international dealing activity being particularly strong.
Comment: It is perhaps a shame that those providing the picks and shovels for investors in terms of trading the stock market are making money hand over fist, whereas the small cap area remains as barren as the Gobi desert.
Contango (CGO), a company focused on the development of the +2 billion tonne Muchesu coal project in Zimbabwe, provided an update with respect to the binding transaction agreements entered into with Huo Investments (Pvt) Limited. CGO said it was delighted to provide this update. It is testament to the Investor’s faith in Muchesu that funds have already been advanced into both Contango and at the asset-level whilst we address the remaining conditions precedent for the formal closing of the Definitive Agreements. The Company has now submitted the prospectus pending FCA approval to approve the issue of the Subscription Shares.
Comment: Given how long it took for CGO to get over the line, every RNS of the type delivered today must surely delight shareholders.
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