Image Scan (IGE) whose revenue to Sept 2023 was £2.96m with a £120k profit has today announced a £3m contract with UK defence contractor, NP Aerospace to supply of its ThreatScan® portable X-ray system after a three-month trial. Subject to the finalisation of commercial terms will commence the testing process expected to commence in September 2024. The estimated contract value is c.£3m over a 36-month period and will start being recognised in the 2025 year-end. There was news last year that its Hong based major shareholder had reversed her 2018 decision to veto an acquisitive growth strategy, so activities are underway to identity strategic acquisition opportunities. The net cash at the year-end was £0.9m.
Comment (Jon Lev): At 1.325p and a £1.8m mkt cap it is sub-scale so any M&A deal would be a game changing RTO, while in meantime its won a relatively large contract.
Mosman Oil and Gas (MSMN) the helium, hydrogen and hydrocarbon exploration, development and production company, noted the recent update from Mining Minerals & Metals plc regarding the proposed acquisition of Georgina Energy plc. Georgina’s subsidiary company Westmarket Oil & Gas Pty Ltd is Mosman’s farmin partner in Exploration Permit 155 application. Mosman’s subsidiary company Oilco Limited is the applicant for the exploration permit 155. Oilco entered into a Farmout Agreement with Westmarket Oil & Gas Pty Ltd on 11 May 2020. The Farminee will earn a 75% working interest and Mosman will retain a 25% working interest in the permit.
Comment: Shares of MSMN have now more than tripled since the beginning of May, with today’s announcement only adding fresh fuel to the fire. The charting target of 0.07p gets ever closer.
Eco Buildings Group (ECOB), the UK-listed modular housing company, said it has completed and sold its first full building. This benchmark for the Company comes on the heels of its recent announcement of an upgrade to fully automated production at its panel manufacturing facility in Durres, Albania that allows the Company to produce panels at a higher rate and a lower cost than previously forecast. The manufacture and sale of its first modular building showcases the Group’s new facility, with fully automated production enhancing the Company’s competitive edge in this high-growth industry. ECOB said the construction and sale of its first complete building to a customer in Albania is an important milestone for Eco Buildings. Its dedicated management and engineering teams in Durres have delivered innovation, increased productivity and reduced cycle times. This important step underscores its ability to deliver on its pipeline of contracted projects.
Comment: For ECOB the first full building being completed is as symbolic as putting a man on the moon. Although the shares have already had a recovery in recent weeks, there should be plenty more upside on offer as the company scales up production.
Tirupati Graphite (TGR), the specialist flake graphite company and supplier of the critical mineral for the global energy transition, announced progress on financing arrangements and the engagement of Musst Investments LLP and ViTa-Connect LLC as its financial advisers. TGR said it was continuously progressing potentially comprehensive solutions for financing the operations and development of the Company’s business having established our abilities to bring two new projects into operations simultaneously.
Comment: It is clear that TGR has not been sitting on its hands since overcoming the requisition. Any whiff that the company has sorted out its cash position could lead to a decent re-rate.
i3 Energy (I3E), an independent oil and gas company, announced that the court order cancelling i3 Energy’s deferred A shares and the amount standing to the credit of the share premium account, along with the associated court approved statement of capital, has been delivered to the Registrar of Companies. The Capital Reduction will become effective upon the registration of the court order by the Registrar of Companies, which is expected to occur in the next few days. The company also announced a i3 announces a 2nd Qtr 2024 dividend totalling £3.084 million. I3E said the Capital Reduction has resulted in the creation of distributable reserves which will give maximum flexibility to consider the payment of dividends and otherwise to return value to Shareholders.
Comment: The capital reduction is another piece in the jigsaw, not only in terms of I3E returning more value to shareholders, but also giving the company a chance of seeing its shares rebound to the kind of levels above 20p we saw a couple of years ago.
Light Science Technologies (LST), provided a trading update for the six months ended 31 May 2024. Revenue for the Period is expected to be c.£5.2m (H1 2023: £4.4m), up by approximately 19.3% year-on-year, with consistent growth through all divisions of the business. LST said it had entered the period with a strong platform for growth and a realigned cost base having successfully navigated considerable global pressures.
Comment: LST shares had their big rally last summer. But it is perhaps the case we should see another re-rate now in the wake of what is a punchy revenue forecast, and evidence of the business moving to cruising altitude.
Fusion Antibodies (FAB), specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, provided an update on trading, commercial and research progress. FAB said it was on track and on plan. It is particularly encouraging to see the continuing improvement in revenue recognition rates which are supported by further new orders and work in progress. This validates its strategy and puts it on track to meet its plans to ensure that Fusion is not only sustainable but becomes the thriving business which it deserves to be.
Comment: FAB shares should finally turn around on significant evidence of the company delivering the big transformation its fans have been looking forward to. If this is the case there is plenty of catching up to do to get the stock even where it was above 6p at the start of the year.
itim Group (ITIM), a SaaS based technology company that enables store-based retailers to optimise their businesses to improve financial performance, announced that it has signed a five-year multi-million-pound contract with Assaí Atacadista, the largest Brazilian wholesaler, with more than 300 stores. ITIM said it was delighted to have been selected by Assaí to help power their pricing optimisation initiatives. This is a significant endorsement of itim’s product set.
Comment: Shares of itim have been on the front foot since the beginning of the year, with today’s announcement only helping the recovery process.
East Star Resources (EST), the Kazakhstan focused copper exploration and resource development company, announced that it has received a number of verbal and written offers pursuant to the formal process announced on 3 April 2024 with regards to the Company’s 100%-owned Verkhuba copper deposit in the Rudny Altai VMS Belt. While the Board has not formally accepted an offer, the process of vetting counterparties has begun. EST said it was pleased with the level of interest in the Verkhuba asset, with some parties’ interest going beyond Verkhuba to working with East Star more broadly. It now looks forward to finalising this offer process.
Comment: Shares of EST have been in bull mode since the transformational announcement that Verkuba cou ld be sold. The closer this event get, the higher the stock should squeeze.
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