It was an interesting end to the week as far as the small cap space, and especially with regard to investors being reminded which companies are doing things the right way, and which are perhaps falling short of the mark. Indeed, a couple of companies who came to market within days of each other and both are in the natural resources space were in focus. Both Helium One (HE1) and Tirupati Graphite (TGR) have just raised money on the same day, to accelerate their growth strategy and as such save money. This was shown in the case of Helium One, where the raise of £10m at 10p enables the Tanzania focused group to deliver a continuity in its exploration programme and hence save costs.
For Tirupati, another company which has had a textbook start to its life on the stock market since December, there was also an over-subscribed £10m raise. This time it was to accelerate the Company’s modular medium-term development plan to take advantage of the strong market demand for its products and to accelerate development of the next 18,000 tpa module at the Sahamamy primary flake graphite project in Madagascar and redevelop hydro power facilities there. Tirupati will also increase capacity of the Company’s downstream specialty graphite projects from 1,200 tpa to 16,200 tpa by H1 2022 with the setup of an integrated, multi-product 15,000 tpa Speciality Graphite Project.
Shares of investment group Gunsynd (GUN) have been squeezing higher ahead of the latest trading update, with the company delivering an update on its various holdings. A recent win has been Rogue Baron (AQSE: SHNJ) a premium spirits company which listed on the Access segment of the AQSE Growth Market on 12 March 2021. On admission, Gunsynd held 28% of its issued share capital. For Gunsynd’s Eagle Mountain asset the latest highlight has been a recent update at the end of March 2021, in which assay results from outside the existing Mineral Resources Estimate have returned the highest grades ever recorded at Oracle Ridge in terms of copper mineralisation. In early April 2021, Rincon, another Gunsynd investment, announced the commencement of its Maiden Drill Programme on the company 100% owned Laverton project. Gunsynd owns 28% of the Australian gold and base metals exploration company. Another investment, Low6 provides a white-labelled mobile platform to sports teams/franchises that enable them to offer a pooled sports betting experience to users of their fan-based apps. Its IPO could be on track for the end of H1 2021.
There was also a trading update from Chill CBD brands specialist Zoetic International (ZOE) which has recently had the pleasure of withstanding spurious bearish comments from malevolent shorting players on the market. The latest here is that there has been progress in the UK, with the launch of Chill-brand CBD smokes. Zoetic said that the timing for the launch is ideal as it has recently received news that its CBD products passed the Food Standards Agency’s administrative check, which all CBD brands in the UK must now pass before they can be sold.
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