(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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Firering Strategic Minerals PLC, up 33% at 11.51 pence, 12-month range 606p-15.28p. The critical minerals explorer agrees to advance the Atex Project and adjacent Alliance licence in the Ivory Coast, in a USD18.6 million deal with Ricca Resources Ltd. Ricca to invest in the project, and partner with Firering on its plans to fast-track exploration at the project, secure funding, and deliver its maiden mineral resource estimate and feasibility studies. "The investment by Ricca will reduce our funding risk through studies and towards production. The partnership also reduces capital costs and brings with it the support of a management team at Ricca with highly relevant recent experience developing a West African lithium asset," Chief Executive Yuval Cohen says.
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Hurricane Energy PLC, up 24% at 8.30p, 12-month range 3.23p-72.92p. The oil and gas firm receives a takeover offer at an indicative price of 7.7p cash, which is a premium of 13% compared to its closing price of Tuesday. The board chooses not to recommend the offer to shareholders. Notes Crystal Amber Fund Ltd, which holds a 29% stake in the firm, has indicated "its desire to monetise the value of its shareholding". Thus, the board decides to launch a formal sale process, "in order to establish whether there is a bidder prepared to offer a value that the board considers attractive". Shares in Crystal Amber rise 7.5%.
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AIM - LOSERS
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Bonhill Group PLC, down 12% at 3.30p, 12-month range 3.16p-11.97p. The financial services media firm says trading conditions have softened since its update in early October, especially in regard to the marketing spend for Cop 27 in November. Reduces revenue guidance for 2022 to GBP14.5 million from GBP15.0 million previously, and expects a wider loss before interest, tax, depreciation and amortisation of GBP600,000 million, compared to GBP350,000 previously forecast. Says it has received a "strong level" of interest in its formal sales process, and will make a further announcement in due course.
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boohoo Group PLC, down 8.8% at 43.08p, 12-month range 30p-204.8p. The online fast-fashion retailer slides after Liberum downgrades the stock to 'sell'. "Boohoo is facing several headwinds; its consumers are under pressure, Shein is a fierce competitor which will only get worse, cost headwinds are real and the need to invest in marketing and service may hold back profit delivery for longer than expected," the broker said. Liberum says its net debt position will limit long-term investment, and scupper the firm's return to pre-Covid growth rates and margins "for quite some time, if ever".
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By Elizabeth Winter; elizabethwinter@alliancenews.com
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Firering Strat (FRG)
Boohoo (BOO)