SMALL CAP MOVERS: Deals and flotations continue to flow
SMALL CAP MOVERS: Broker Finncap “at a good moment” while flotations and deals keep flowing; List parsley box and caerus
In a week with announcements of upcoming IPOs flowing on, broker FinnCap announced that trading was well above expectations.
The city-based company announced that its capital markets operations saw the highest quarterly deal fees in the October-December quarter – the third quarter of its fiscal year – and continued to see good growth in revenue and trading volume.
The board now expects net income for the year in excess of GBP 43 million, which is almost two thirds more than in the previous financial year.
Broker FinnCap announced that its capital markets operations saw the highest quarterly deal fees in the October-December quarter
Shares rose 19 percent on a weekly basis, which was also helped by the CEO and chairman buying more shares after the trading update.
City corporations are clearly “in a good moment,” as overseas football executives like to say, and the mood on the Square Mile would have been boosted by confirmation of better-known IPOs on their way.
Car salesman Cazoo and Russian retailer Fix Price were the big beasts to announce initial public offerings, while in the small-cap world, Parsley Box, a convenience store, and Caerus Mineral Resources, with a focus on Cyprus.
Parsley Box intends to give its customers the opportunity to become shareholders in the IPO, which is expected to take place later this month or early April.
Parsley Box will be listed on AIM, while Caerus plans to list on March 19th in the Main Market.
The floating intent follows the acquisition of New Cyprus Copper, announced on Friday, a company with a number of copper-gold exploration licenses in Cyprus.
Elsewhere in the extractive sector, Chariot Oil & Gas rose 22 percent in a week in which the Moroccan authorities made a fundamental commitment to support the development of the Anchois Gas Development Project.
Petroneft was another energy stocks winner, up 33 percent after completing its well fracking program in the Sibkrayevskoye and Lineynoye fields in Tomsk Oblast, Russia.
The initial results from the wells were very encouraging, which resulted in production increases and opened the door for possible further developments.
Westmount Energy stocks went the other way, down 27 percent for the week after disappointing drill results from the Canje block at Bulletwood-1 in the Guyana-Suriname Basin.
The well-encountered quality reservoirs are, however, non-commercial hydrocarbons.
Westmount has an indirect stake in the Canje Block through its 7.7 percent stake in JHI Associates.
Parsley Box, a convenience food delivery company, has announced plans to list in the AIM market
Also down was Mosman Oil and Gas, which had significantly lower oil and gas production rates at Falcon-1, in which the AIM-listed company has a 50 percent stake.
The operator of the Falcon 1 well in East Texas recently reported an increase in water production and a pressure drop at the well. To achieve this, the wellhead restrictor size has now been reduced. The stock lost 16 percent of its value this week.
Away from the mineral world, investors boarded the Futura Medical train after the company received an injection of cash from a fund managed by Atlantis Investment Management.
Atlantis has agreed to provide £ 2 million to Futura in exchange for loan notes that can be converted into shares at 20p per resident. Futura stock rose 40 percent this week to 20.25 pence.
The drug delivery company has also signed a license agreement with Co-High Investment Management to exclusively develop and commercialize Futura’s topical, gel-based erectile dysfunction MED3000 in China and Southeast Asia.
Co-High will currently provide funding of up to £ 4 million for the development and regulatory approval of MED3000 in the area. Futura is entitled to 50 percent of the regional profit from the marketing of MED3000.
Another medical company, MyHealthChecked, was forced to issue a statement after its shares rose over the weekend on speculation that a significant potential contract was in the making.
The personalized healthcare company announced that it is having commercial talks with a number of parties to supply COVID-19 test kits, but no contracts have been signed to date.
That didn’t stop stocks from gaining 62 percent.