There were some slightly heavy undercurrents in the small caps space. Part of this was attributed to the aftermath of IG’s move out of hundreds of stocks nearly a month ago, part of it some head scratching regarding the extend of some of the biggest small caps winners in recent months. The end of the tax year, and the usual end of month dip we have seen in the recent past may also have contributed.
Hot on the heels of its Rogue Baron (SHNJ) listing on Aquis earlier this month, we were treated to a new investment from fast growing investor Gunsynd (GUN). The latest here was that it has invested £125,000 in Anglo Saxony Mining Limited (ASM), a public unlisted tin development and exploration company. Gunsynd said its investment is a part of a of £5,000,000 capital raising supported by institutional and high net worth UK, German and Australian investors. The funds are to be used for resource expansion drilling, resource conversion, metallurgical test work and PFS & Optimisation studies. ASM has ambitions to carry out an IPO during 2021, with ties in with Gunsynd’s recent trend of delivering significant and frequent liquidity events for its shareholders.
In a RNS which was busy to say the least, environmental and life science AI company DeepVerge (DVRG) followed up its announcement from last month. The latest is that it has signed a full technical and commercial agreement with Microsaic Systems (MSYS) who will supply regulatory approved, CE Mark, miniaturised mass spectrometry equipment and services on a non-exclusive basis to DeepVerge. This will deliver portable solutions for environmental contamination detection and healthcare diagnostic evaluation of samples. For its part of the deal, DeepVerge will introduce AI data analytics into Microsaic’s existing Mass Spectrometry data capture capabilities to fast track the MicrotoxBT breathalyser, which is used to detect the Spike Protein of the SARS-CoV-2 virus, to deliver a “Point of Care” diagnostic solution at GP clinics and beyond. Considering that biomarker binding agents are capable of detecting up to 40 diseases on the human breath via the MicrotoxBT breathalyser, over and above COVID-19, including cancer, neurodegenerative, respiratory and metabolic conditions, it seems that so far the stock market has taken a relative nonchalant attitude with regard to the potentially ground breaking news from DeepVerge / Microsaic for the healthcare space. This is especially so in terms of time, cost and being a Back to the Future type of technological and diagnostics leap, and of course the potential market for the two companies.2021 has been the year to date when in the small caps space some things we thought we might never see, have actually happened. Perhaps Futura Medical (FUM) has taken the prize in terms of the waiting game finally ending in a positive result. However, we are still waiting on a sale at Eurasia Mining (EUA), and of course, a liquidity event at internet of things specialist Tern (TERN). Here the stock has been edging higher of late, enough to trigger the ire of the bears. The better tone to Tern shares has come in the wake of speculation that one of its investee companies may eventually be sold. Clearly, this is akin to rain eventually reaching a desert. However, the possibility of a liquidity event this year and it being related to Device Authority seems to be greater than previously, if only on the basis that the present boom in the tech sector means that someone would be happy enough to right a big enough cheque. Shares of Tern rose 13%.
Following the money / director dealings is the backbone of getting a handle on the stock market, especially in very often mystical small cap space. This point was underlined by the announcement of a £900,000 share value purchase by Jack Bai, executive director at GSTechnologies (GST). One would assume such a purchase might at least be a high conviction affair, especially as it relates to a company with a market cap of £25m. Earlier this month the the integrated information and communication technology infrastructure solutions provider said that 2021 would be a transformational year. Shares of GST rose 14%.
For those who perhaps shy away from the Aquis Exchange, it may be of interest to note that one of the highlights on the whole London stock market was the announcement from Altona Rare Earths (ANR) that it has entered into a Memorandum of Understanding with Ussokoti Investimetos Limitada to start a legal and technical Due Diligence period of 90 days with a view to acquiring up to 70% in the Monte Muambe Rare Earths Project via an earn-in arrangement. The tenement is located in Tete Province, Northwestern Mozambique. Shares of ANR were up nearly 100%, with the ironic aspect that the company is on its way to leaving Aquis once it has raised £1m.
Fully integrated, revenue generative, specialist graphite producer and graphene developer Tirupati Graphite (TGR) with operations in Madagascar and India, revealed that it has won CFI.co’s 2021 global award for Best Sustainable Value Creation Strategy. The company added that this achievement follows receipt of the Green Economy Mark accreditation from the London Stock Exchange, which also acknowledges it efforts in utilising green processes and technologies to develop green materials.
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