Global (GBP) announced its financial results for the year ended 30 June 2024. GBP said it was filled with optimism about the transformative journey Global Petroleum is undertaking. The advancements in the Namibian offshore sector in the Walvis Basin and particularly the significant developments surrounding Licence PEL 0094 with its progressing talks with a commercial farm-in partner, position us as significant early movers in the Basin. This is coupled with its strategic diversification into mineral resources in Western Australia, where it was not only enhancing its asset portfolio but also working with its distinguished Joint-Venture Partner Callum Baxter in project Juno, where the work program is well underway.
Comment: 2024 has been the year when GBP became something of a punters’ favourite, something which the RNS statement today underlines. We await the big rally in the stock so many are clearly waiting on.
Ondine Biomedical Inc. (OBI), a Canadian life sciences company, announces the following updated related party transaction and continued financial support from its Founding Shareholders with interim funding. On 30 October 2024, Carolyn Cross, CEO, provided a loan (the “Loan”) of C$400,000 to the Company for additional working capital ahead of securing longer term financing. The Loan has no interest and no specific terms of repayment. The Loan is deemed to constitute a related party transaction for the purpose of AIM Rule 13. The Company remains confident in its ability to secure longer term finance in Q4 this year to execute its growth plans.
Comment: Anything that allows the rollout of the Steriwave product should be welcomed, including the loan from the CEO. Leading from the front in this way underlines the merit of the opportunity here.
EDX Medical Group (AQSE:EDX), which develops innovative digital diagnostic products and services, announced that warrant holders who were issued with a total of 5,370,000 warrants in 2021 have each agreed to waive and cancel their rights to subscribe for Ordinary Shares in EDX Medical in accordance with the terms of the Warrant Instruments. EDX said the cancellation now of warrants issued at 5p prior to the creation of the EDX Medical Group will enhance stability and reduce future potential dilution for existing shareholders. During the course of this year, the Company has raised significant capital which has enabled it to progress at pace its development of class-leading diagnostic products and also take steps such as the cancellation of these legacy warrants.
Comment: As well as the obvious operational progress being made at EDX, one can say that the clearing of the warrants should allow the share price to resume the rebound we were treated to earlier in the year.
Last month Minoan (MIN) announced that agreement had been reached to exchange certain outstanding loans to the Company into new convertible loans. MIN said it is now in advanced discussions with a strategic partner to provide significant new funding into the Company. Whilst there can be no certainty on the timing or terms of any such fundraising, nor can there be any certainty that a fundraising will be completed successfully, both Minoan and the proposed investor have agreed that should such a fundraising go-ahead, completion will not require a change to the Company’s current 1p per Ordinary Share par value.
Comment: After what seems like an eternity, it could very well be the case that MIN finally has the financial structure and backing to reward its shareholders in the manner to which they deserve.
Hummingbird (HUM) updated on ongoing discussions with its primary lenders, Coris, and CIG SA, together with Nioko Resources Corporation, the Company’s largest shareholder and a wholly owned subsidiary of CIG (which is controlled by the same principal as Coris), concerning its liquidity position and the grant of short-term waivers. HUM said it was in advanced discussions with Coris to partially restructure its outstanding debt and to reschedule payments due under its agreements with Coris. Following progress made in these discussions to date, Coris has agreed to defer payments totalling approximately $30 million (including accrued interest) due on 31 October 2024, pending agreement on the wider restructuring being concluded on or before 6 November 2024.
Comment: The funding trials and tribulations of HUM have been a distraction from both the soaring gold price, and the company’s production of the commodity. One would hope that the settlement of the debt issue this month, will draw a line under the funding issues and allow the market to deliver HUM the share price it deserves.
Kodal Minerals (KOD), the mineral exploration and development company, updated on the transfer of the Bougouni Lithium Project mining licence from Future Minerals SARL to the Mali registered mining company Les Mines de Lithium de Bougouni SA. KOD said the MoU with the State for the transfer of the Bougouni mining licence is the final legal step required as it rapidly progresses the construction of the Project, with production on track for the first quarter of 2025. The transfer of the mining licence to the mining company LMLB confirms the good standing of the Project and provides certainty of State support and ongoing stability of Bougouni. The strong partnership built between Kodal and the State has allowed discussions to be accelerated, culminating with this landmark MoU.
Comment: Shares of KOD have been in a holding pattern for much of the year to date, with the base generally towards 0.4p. It could be the case that the latest announcement is significant enough to get the shares back on an upward trajectory towards the 0.6p zone and beyond as we head into 2025.
Emmerson (EML) said it has formally notified the Government of the Kingdom of Morocco that there is an investment dispute between Emmerson and the Government. The Company has engaged Boies Schiller Flexner LLP as its litigation counsel and is examining various funding avenues for an investment dispute. EML said it has always conducted its business in Morocco to the highest environmental and ethical standards, often well in excess of the local regulatory requirements, adhering strictly to local laws. The Khemisset Potash Project is one of the most strategically valuable fertiliser assets on the African Continent, especially for Morocco, which currently imports significant quantities of potash to its global fertiliser company, OCP.
Comment: Alas, so far the story of EML has been the typical story of what might expect in a developing country, where the locals either take back an asset for themselves once proven up, or in this case, do not let the development company go forward in the first place by blocking its development, and then presumably taking it for themselves.
DG Innovate (DGI), the advanced research and development Company developing pioneering solutions in sustainable mobility and energy storage, announced the successful delivery of a cutting-edge 450kW prototype motor to ATF funded Pareta® project partner, Meritor Electric Powertrain Systems. DGI said this significant milestone underscores the exceptional capabilities of its engineering team and reaffirms DGI’s position at the forefront of motor innovation. The delivery of this advanced drive unit to Cummins-Meritor stands as a testament to the dedication and expertise of its engineering team. Its relentless pursuit of excellence guarantees that its clients receive the most advanced technology, along with the reliability and performance they have come to expect from DGI.
Comment: After a long run of neutral to negative RNS’s we see DGI step up to the plate in the way that its fans would have wished. Whether it will be the inflection point for the share price after months of drifting is perhaps still not yet a done deal, but it is certainly a start.
ECR Minerals (ECR), the exploration and development company focused on gold in Australia, announced that it has entered into an exclusivity agreement with one of the companies that previously signed a non-disclosure agreement for the potential sale of ECR’s subsidiary, Mercator Gold Australia Pty Ltd, a non-core asset within the Company’s portfolio in Victoria. The potential sale would include the Company’s circa A$75 million of tax losses. This follows the Company’s announcement of 2 July 2024 and subsequent announcements in relation to the potential sale of the Company’s tax losses.
Comment: One of the problems that the London stock market’s myriad explorers have is that the more they find, the more money and dilution the market fears is on its way. In the case of ECR the sale of a non-core asset, and perhaps most importantly, massive tax losses, is perhaps the bazooka the share price needs to get towards 0.4p and beyond.
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