SMALL CAP MOVERS: Junior market in healthy shape as fundraisings continue; Helium One makes debut
It’s been another bustling week of fundraisings in the junior market as some uncertainty started to dissolve now that we have rough plans for a vaccine rollout and the US election is done and dusted.
‘With a solution to Brexit looming there are less reasons for investors to say “no”,’ commented Christopher Raggett, co-head of corporate finance at City broker finnCap.
‘Entrepreneurs are also looking to April and the potential increases in CGT which make it tempting to take some money off the table now. These ingredients lead to a lively secondary and IPO market with more issuances expected before the year is out.’
The AIM All-Share index continued its steady rise and added 2.9 per cent to 1,069 this week
Helium One floated to an immediate premium after sealing its hotly anticipated listing. It brings to AIM a novel and high-potential take on exploration, with a fully funded campaign in Tanzania kicking off in mid-2021.
Friday’s opening deals were marked at 5p, and, after giddy enthusiasm settled, was changing hands at around 4p – representing a gain of around 49 per cent from the 2p paid per share by investors in last month’s oversubscribed share placing.
Cybersecurity firm BrandShield Systems was another newcomer, raising £3million in its first day of dealings following the reverse takeover of Two Shields Investments.
This week’s secondary fundraisings also pointed to a healthy market, with geospatial technology firm IQGeo, corporate broker WH Ireland, engineer Pressure Technologies and entertainment firm Live Company raising cash to fund acquisitions.
Elsewhere, drug developer Redx Pharma, vanadium-flow battery manufacturer Invinity Energy Systems, oiler Block Energy and miners Orosur Mining and Strategic Minerals tapped investors to support existing projects.
Turning to the wider market, the AIM All-Share index continued its steady rise and added 2.9 per cent to 1,069 this week, just about outperforming a 2.7 per cent jump to 6,543 by the FTSE 100.
Sticking to the risers, retail promotions specialist SpaceandPeople rocketed 94 per cent to 8p after signing exclusive agreements with the owners of four former Intu shopping centres for promotional sales and temporary retailing.
Elsewhere, N4 Pharma soared 91 per cent to 10p after making progress with Nuvec, a delivery system for cancer treatments and vaccines, which it hopes will spark interest in Covid-19 vaccine developers.
Braveheart Investment Group climbed 54 per cent to 56p after revealing it will pay a special dividend of 42.75p per share that is higher than last week’s 37p closing price, following the sale of its stake in Remote Monitored Systems.
Meanwhile, gold explorer Panthera Resources glittered 43 per cent brighter at 17p after drilling started at its Paimasa project in Nigeria.
Eve Sleep ticked 43 per cent higher to 4p after once again raising its full-year forecasts after momentum was maintained thanks to advertisements on telly and a successful Black Friday weekend.
Eve Sleep ticked 43 per cent higher to 4p after once again raising its full-year forecasts
Among the fallers, Providence Resources and Lansdowne Oil & Gas both plummeted more than 40 per cent to 4p and 1p respectively after signing a farmout agreement with Norway’s SpotOn Energy. The latter will receive a 50 per cent working interest in the Barryroe field, located offshore Ireland, expected to go into production in 2023.
Fellow oiler Caspian Sunrise fell 32 per cent to 1p after saying it is making progress at its flagship BNG asset in Kazakhstan but none of the wells is currently producing at commercial quantities.
Miner Tri-Star Resources plunged 28 per cent to 2p after confirming it will delist and become a private company next week, while shareholder Odey Asset Management trimmed its stake to 67.18 per cent from 68.91 per cent.
Finally, Daily Mash website owner Digitalbox dropped 21 per cent to 5p after warning it will not meet current market expectations for revenue and profits due to a difficult digital advertising market amid Covid-19 volatility, though it expects to deliver profits in the full year.
Later this month, newly established life sciences investor Intuitive Investments Group is planning its debut on the junior market, having earmarked a £7.5million IPO.