Electric Guitar (ELEG), the digital marketing and advertising company providing first-party data solutions, announced the completion of its acquisition of 3radical Limited, Fundraising and the admission of its enlarged share capital to trading on AIM today. ELEG said today marks an important milestone as its shares are admitted to trading on AIM. Its decision to pursue this path reflects its confidence in the potential for growth that lies ahead. With this enhanced access to growth capital for further investment and acquisitions alongside its initial acquisition of 3radical, coupled with a successful fundraising today, it has made a robust start on its strategy of building a leading provider of first-party data solutions for the digital marketing and advertising industry, in the context of the seismic shift in online marketing away from third-party cookies.
Comment: With many companies wimping out of being on the stock market altogether, it really is a show of strength and confidence that ELEG is joining AIM. With data being everything these days in tech, we may have a company which has a decent chance of being a UK unicorn down the line.
Ondine Biomedical (OBI), a Canadian life sciences company, announced a proposed fundraising to raise not less than c.£3 million (C$5.15 million) from primarily existing shareholders. The fundraising is being implemented by way of a proposed placing and a subscription. The Fundraising involves the issuance of common shares without par value in the capital of the Company at the price of 7 pence.
Comment: The key here for OBI is to have the fundraise under its belt so it can get on with sales of Steriwave®, which appears set to transform the medical / hospital space in terms of infection. Given that shares of OBI closed at 5.1p yesterday, the 7p raise is a show of strength.
DG Innovate (DGI), the research and development company developing pioneering solutions in sustainable mobility and energy storage, announced that ex-Tesla electric motor design engineer Pierre Pellerey is joining the Company as a consultant. DGI said it was delighted to have another former Tesla colleague onboard. Pierre’s motor designs have helped revolutionise the industry and with the addition of his skill set, it believes DGI will be able to deliver on start of production of its Pareta® electric drives on an accelerated timescale.
Comment: After recent share transaction revelations at the company, it might be the case that even if Elon Musk joined the board from Tesla the stock might not get the intuitive boost it deserves. It will be interesting to see whether DGI can regain its previous sizzle.
Mirriad Advertising (MIRI), a virtual in-content advertising and virtual product placement company, announced it has conditionally raised gross proceeds of £6.12 million through the successful placing by Allenby Capital Limited and Baden Hill.
Comment: With the latest Invinity raise and now a chunky one for MIRI, one might be tempted to suggest that the liquidity crisis for small caps is over. The operative word is of course might.
Zephyr Energy (ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announced that the Company has retired US$3.88 million (£3.11 million) of existing debt through the issuance of US$3.88 million (£3.11 million) of equity. ZPHR said it continues to make good progress on the drilling of the State 36-2R well and remain on track to complete the well within our forecast thirty-day period. The debt for equity exchange will further strengthen its balance sheet, while increasing future cash flows for reinvestment into its growing asset portfolio.
Comment: Having SGRI as a cornerstone equity investor is clearly a win for ZPHR, and dove-tails well with the recent share price rise and improvement in sentiment towards the company.
Graft Polymer (GPL) said that the 2023 Accounts revealed that a full impairment of the investment in the Slovenian manufacturing facility had been necessary due to the slow pick up of revenue and ongoing constraints, and with a forecasted negative cash position in the near future. The Board has disposed of the Company’s Slovenia entity (Graft Polymer d.o.o) to a private consortium in Slovenia for nominal consideration. GPL said that the Slovenian Polymer facility and Graft Polymer d.o.o had, in the opinion of the Board, become untenable and it has had to divest this to enable the other core business to flourish.
Comment: City stalwart Nick Nelson and the team are clearly kitchen sinking the GPL situation. The interest here will be once this clearing of the decks is completed.
Angle (AGL), a liquid biopsy company, announced that it has signed a supplier agreement to develop a Parsortix-based Androgen Receptor1 (AR) detection assay for use in prostate cancer studies. The supplier agreement reported here is with AstraZeneca (LSE/STO/Nasdaq: AZN). AGL said this is further validation of ANGLE’s Parsortix system which shows potential for long-term large-scale revenues in bringing innovative new cancer drugs to the market. It anticipates that success in this first phase of assay development may lead to much larger contracts for use of the assay in clinical trials.
Comment: Shares of AGL have been intriguingly volatile at the lower levels, as if someone was attempting to keep a lid on the price. Presumably today’s news will give us a re-run of the January spike for the stock.
Prospex Energy (PXEN), the AIM quoted investment company focused on European gas and power projects, provided an update from the Selva Malvezzi production concession in Italy following the publication by Po Valley Energy Limited of its Q1 2024 activity report. PXEN said it was actively advancing the necessary activities to facilitate development drilling programmes at Selva Malvezzi with the target of converting the contingent resources at Selva North and Selva South and the prospective resources at East Selva and Riccardina into proved, developed and producing reserves in the near term.
Comment: Although there have been a number of false dawns for the PXEN share price, it does appear that we are finally seeing a turnaround, with the assumption that today’s news will help the potential revival.
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