We still have the run up to the end of tax year / beginning of the new ISA on April 6 as a factor in the small cap market. The effect of this has been to cause extra retracements in some of the best and worst performing shares of the past year, as well as highlighting situations which are so in demand they keep on rallying regardless.
A good example of one of the relentless risers has been Ferro Alloy Resources (FAR), the vanadium play which now has ex Xstrata supremo Sir Mick Davis as Chairman. With the company being mentioned as potentially sitting on an asset which is as key to vanadium as Saudi Arabia’s assets are in crude oil, it would appear that professional investors regard FAR as the next big thing. This is particularly the case as the “punters” seemingly exited for good at far lower prices than the present 40p. The latest rise for the stock has been a 16% jump, not really looking back since CEO Nick Bridgen’s Share-Talk interview on Friday.
In some ways the story of the day in the small caps space came once from the Aquis market. Newly listed Rogue Baron (SHNJ), a premium spirits company, announces it has agreed to allow Gunsynd (GUN) to sell 3,000,000 shares in the company to serial entrepreneur Chris Akers, arguably the most influential investor on the London stock market. Clearly, the “Akers Effect” will be to draw investor attention and trading volume to Rogue Baron, in addition to the validation he provides to the company’s business model. He is already disclosable on the Gunsynd shareholder list. Indeed, Gunsynd itself was in focus off the back of investee company Eagle Mountain announcing High-Grade Results at Oracle Ridge, with 34.4% Cu, 367g/t Ag, and 26.2g/t Au over 0.4m in massive chalcopyrite zone, the highest grade assay ever recorded at the project.
Also on Aquis, Love Hemp Group (LIFE) the investment company with a focus on developing business opportunities in the regulated cannabis industry in Europe, announced its interim results for the six months ended 31 December 2020. In many ways the main thing to focus on here were the financials: Gross revenue for the six-month period ended 31 December 2020 was £2,379,144 (six months ended 31 December 2019: £426,465) representing a 557% increase. Expectations would be that in the wake of the recently announced multiyear, category exclusive marketing relationship with Ultimate Fighting Championship, the Love Hemp Group will gain access to a global marketplace.
Inventory monetisation Supply@Me Capital (SYME) seemed to be trying to prove that no news is good news, as the company tweeted out that it would be offering a RNS update the following morning at 7am – after lodging a long awaited trading update after the market close. That the announcement will now be released on April Fool’s day was not lost on some bright sparks on social media.
Shares of multi-faceted environmental and life science AI company, DeepVerge (DVRG) benefitted from a well-received investor presentation by CEO Gerard Brandon, and project updates with regard to Labskin, Skin Trust Club, and the Modern Water – Wastewater & Breath Test. There was a near 5% rise in the stock, something which was not surprising given the reiteration of FY 2021 guidance at £10m. This forecast was underpinned by the revelation that £3.6m has already been received in Modern Water orders in Q1.
The long anticipated update from Canada / UK dual listed i3 Energy (I3E) hit the newswire, as it said it has allocated CAD$2 million (£1.16 million) in relation to its planned Q1 2021 dividend. i3 said it expects to shortly distribute a special resolution and circular to its shareholders which will specify the exact amount of the proposed reduction in share capital and explain the background and reasons for the reduction. Upon approval of the special resolution at the general meeting, i3 will apply to the UK courts to confirm the reduction and will immediately thereafter distribute the abovementioned dividend payment to its shareholders. CEO Majid Shafiq said the Canadian production assets continue to perform well, and the company is actively advancing projects to maintain and grow production as well as evaluating a number of production acquisition opportunities. In the UK, Shafiq said negotiations with counterparties for a farm-out of Serenity appraisal drilling continue to be advanced.
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