It would appear that the stock market has acquired a dynamic investing duo in terms of the small caps, as the company formerly known as Nakama was once again top of the pops in terms of trading interest in the wake of the latest trio of TR1 announcements. Indeed, Ridgecrest (RDGC) shares rose by 27%, as speculation grew regarding the acquisition vehicle with James “AAA / VELA” Normand on board as NED. Added interest has been provided by John Mahtani and Ashok Patel – lately of Pires (PIRI) fame jumping on the RDGC share register, it is very much a case of “watch this space” as they build up a track record of identifying undervalued / special opportunity situations. Existing shareholder Barry Reynolds added to his stake, edging up from 9.5% to 10.1%.
While there is very often a kneejerk negative reaction to companies raising money on the stock market, those who throw stones on such occasions seem to forget that the purpose of the stock market is for companies to raise money. In the wake of copper-gold mining development group Xtract Resources (XTR) it raised £5m at 4.5p, with it being noticeable that like many recent stock market fund raises, the shares remained above the placing price on the day of the announcement. If nothing else, this is an indication not only of investor appetite, but massive stock market liquidity currently.
There seem to be quite a few minnows where we are waiting for THE deal. In the case of under the radar Intuitive Investments Group (IIG), a closed-end investment company focussed on the life sciences sector, it was able to announce its investment in BioQ Pharma of $1 million by way of unsecured convertible loan notes. BioQ is a commercial-stage, medical device and pharmaceutical company, addressing the infusible drugs market. Intuitive’s Chairman, David Evans said that the investment demonstrates IIG’s ability to act quickly and opportunistically when compelling opportunities arise, with the shares rising 3p to 25.5p.
Recent weeks and months have seen stocks which had previously been on the back foot return to form. This has recently been seen with laggard Edenville Energy (EDL), and it would appear that after an extended consolidation, it is the turn of Strategic Minerals (SML) to step into the limelight. Indeed, the shares were up by a third to 0.6p, hopefully enough to render the move more than just a one day wonder. Backing the idea of a sustained new bull run was an esoteric mix of Tin (now at multi year highs) being a favourite of President Biden in his green agenda, and the run up to Strategic’s Leigh Creek Copper mine due later this year. In October the company said its Redmoor asset in Cornwall is a “world-class” tungsten, copper, and tin mine
Pharma services group Open Orphan (ORPH) was back in focus off the back of an article in Drug Discovery Today, exploring what can be learned from using the method of human challenge trials to support vaccine development. It focuses on the role Open Orphan’s hVIVO plays in this, in particular in relation to COVID-19. hVIVO has been delivering human challenge studies at its quarantine facility in East London, especially in the wake of the pandemic.
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