(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Wednesday.
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AIM - WINNERS
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Egdon Resources PLC, up 85% at 4.25 pence, 12-month range 2.1p-10p. The oil and gas explorer and producer agrees to an all-cash takeover offer from Petrichor Partners at 4.5p per share. This values the company at around GBP26.6 million. The offer price is a 96% premium to Tuesday's closing price of 2.3p. Egdon's board intends to unanimously recommend the offer to shareholders at an upcoming general meeting. Petrichor is a wholly-owned subsidiary of Heyco Energy Group. The ultimate parent company of Heyco Energy and Petrichor is Explorers Petroleum Corp, which is controlled by George Yates. "Heyco Group believes the timing is right to acquire Egdon and take it private, as Heyco Group believes that the public market continues to undervalue its assets, including the impressive Wressle development," the release says. Petrichor says it has received irrevocable undertakings to accept the offer from Habour Energy PLC and Union Jack Oil PLC, fellow London-listed oil and gas companies.
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Xeros Technology PLC, up 29% at 3.99p, 12-month range 3p-79.8p. The laundry technology developer signs a technology license and distribution agreement for its Garment Finishing technology with KRM Tekstil Boya San Tic Ltd. The non-exclusive worldwide agreement is for a 10-year term. KRM, acting as a distributor for Yilmak Makine, will be licensed to distribute and sell machines made by Yilmak, which use Xeros' proprietary XDrum and XOrb technology. The technology will be used in denim processing, garment finishing and garment dyeing processes in Yilmak's garment finishing machines. Yilmak is a Turkish manufacturer of garment finishing machines. "The agreement allows Xeros to significantly increase its market access into new territories including Europe, Brazil and Mexico as well as strengthen its current access into Asia," Xeros explains, adding it has the potential to deliver "substantial" revenue over the 10-year term.
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AIM - LOSERS
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Circle Property PLC, down 67% at 3.3p, 12-month range 3p-258p. The buyer, developer and manager of regional office assets in UK confirms its final day of trading will be May 31, as it prepares to cancel its AIM listing. "Maintaining the company's admission to trading on AIM requires significant management time, legal and regulatory obligations and comes with material financial costs (such as professional fees, London Stock Exchange fees and other costs associated with being an AIM-traded company)," the firm explains. The directors maintain these costs are "disproportionate" to the benefits the company receives from its AIM listing. Circle currently holds around GBP3.2 million in cash, and plans to distribute a "modest" final return to shareholders of no more than GBP1.1 million, or 4p per share. The rest will be used towards costs and incentive payments to its executives. "As soon as possible following the cancellation and the final return of capital, it is the board's intention to liquidate the group solvently," Circle says.
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Purplebricks Group PLC, down 41% at 0.77p, 12-month range 0.6p-20p. The online real estate agent recommends to its shareholders a proposed sale of its trading business and assets to Strike Ltd for GBP1, with Strike to assume most of its liabilities. The transaction would mean the firm holds a cash balance of GBP5.5 million, and would return net cash proceeds of around GBP2 million to shareholders after certain costs. "I am disappointed with the financial value outcome, both as a 5% shareholder myself and for shareholders who have supported the company under my and the board's stewardship. However, there was no other proposal or offer which provided a better return for shareholders, with the same certainty of funding and speed of delivery necessary to provide the stability the company needs," says Chair Paul Pindar. CEO Helen Marston will leave the firm once the proposed sale is complete, with all other directs, save for CFO Dominique Highfield, to also step down once the firm's AIM listing is cancelled in due course. All other employees will be transferred to Strike.
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By Elizabeth Winter, Alliance News senior markets reporter
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