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TRADING UPDATES: Gym Group bulks up with placing; 88 Energy debt free

Thu, 1st Jul 2021 19:26

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

Gym Group PLC - low cost gyms operator - Proposes placing to raise GBP31 million. Net proceeds to strengthen rollout of new sites, targetting 40 over next year-and-a-half. "The company has typically opened 15-20 sites per year with the rate of growth limited by the availability of high-quality sites at suitable levels of rent. The company has historically faced strong competition for sites from retail and leisure operators," Gym Group says. "The net proceeds of the placing will allow the company to accelerate its site rollout programme and take advantage of the current favourable commercial environment." In addition, Gym Group notes membership numbers improve to 734,000 from 547,000 in February. Back in December 2019, membership numbers stood at 794,000.

88 Energy Ltd - Alaska-focused oil exploration & appraisal company - Completes sale of Alaskan Oil and Gas Tax Credits. Says USD16.1 million of USD18.7 million proceeds go towards repaying outstanding debt. Company is now debt free.

IronRidge Resources Ltd - Australia-based minerals exploration company - Secures deal with Piedmont Lithium Inc to fully fund and fast track Ewoyaa lithium project in Ghana for USD102 million. Piedmont supplies industrial materials for electric vehicle industry. Piedmont will subscribe for GBP10.8 million worth of Ironridge shares at 20 pence each. Piedmont will also fund additional regional exploration for definitive feasibility study, to tune of USD17 million, and will also fund full USD70 million capex at asset.

Salt Lake Potash Ltd - Western Australia-focused organic sulphate of potash miner - Process plant at Lake Way asset in Australia completed. "Plant commissioning continues with first SOP product expected in the weeks ahead," Salt Lake says.

Bacanora Lithium PLC - developer of Sonora lithium project in Mexico - "Put Up or Shut Up" deadline for possible offer from Ganfeng International Trading (Shanghai) Ltd extended to July 29.

Cornish Metals Inc - Vancouver, Canada-based investment firm - Reaches deal with Galena Special Situations Ltd and Tin Shield Production Inc to restructure deferred consideration for Cornish's South Crofty tin project buy in 2016. Says 7.0 million shares in Cornish to be issued upon shareholder backing, USD4.8 million worth of shares once South Crofty is dewatered or when financing is sealed and USD5.0 million in shares on closing of development or construction of financing of mine at the project. Shareholders to vote on proposals at July 30 annual general meeting.

President Energy PLC - energy company with assets focused primarily in South America - Says hydrogen and ammonia production unit Atome enters in to pact with state-owned power generation company in nation in Americas, identity undisclosed for now. "The country is a stable, western facing, economically open democracy which has a stated objective to de-carbonise its economy and promote sustainability in line with the sentiments of the Paris Agreement of 2015 as well as in accordance with that country's own national strategic energy plan," President Energy says. Atome eyes becoming first industrial scale hydrogen and ammonia producer in the country. "Whilst at an early stage the progress made by Atome so far is viewed optimistically as an important first step towards Atome's business objective," President Energy adds. In addition, says Atome has appointed Strand Hanson as financial advisors in relation in relation to possible London float. President has 85% stake in Atome.

Phoenix Copper Ltd - US-focused base and precious metal emerging producer and exploration company - Idaho, US-registered unit Konnex Resources Inc files plan of operations at Empire mine open pit to local regulators. "Plan of Operations is a key step in moving the Empire Mine towards production," Phoenix notes, adding: "no significant environmental issues have been identified on the Empire property and the company anticipates a straightforward permitting process."

Rambler Metals & Mining PLC - Canada-focused copper and gold producer - Strikes agreement for offering of unsecured, subordinated convertible note up to USD30 million with investors including Riverfort Global Opportunities PCC Ltd and YA II PN Ltd. "The company has requested the initial advance of USD2.0 million today and expects to receive this shortly," Rambler adds.

Chesterfield Resources PLC - London-based company focused on discovery and development of copper deposits - Proposes placing to raise GBP750,000, at 10p per share. "The use of proceeds are primarily to fund the forthcoming field programme on the Adeline project, as well as for general working capital purposes," Chesterfield says.

ECR Minerals PLC - Gold explorer with assets in Australia, Argentina and the Philippines - Notes promising find at Bailieston gold project, Australia. "Structural logging of three diamond holes now confirms a steep south-plunging anticline," ECR says.

Hurricane Energy PLC - Surrey, England-based oil and gas company - Monitoring potential default of convertible bond repayments. Says lock-up agreement with holders of USD230.0 million 7.5% convertible bonds terminated on Wednesday. Eyes "unblocking" convertible bonds, allowing bonds to trade again.

Cloudbreak Discovery PLC - natural resource project generator - Investee Imperial Helium Corp begins lease and road construction at the Steveville Helium property, Canada. "Additionally, Imperial has received all required permits and approvals to commence drilling operations as soon as practicable," Cloudbreak adds. It has 1.3% stake in Imperial.

Trident Royalties PLC - growth-focused mining royalty and streaming company - Enters into USD10 million secured loan facility agreement with banking syndicate. "The facility will support the company's already strong balance sheet by providing additional capital to promote continued growth and diversification of the company's royalty portfolio following completion of the Thacker Pass lithium royalty transaction in March," Trident says.

AEX Gold Inc - miner in Greenland - Applies for new exploration licence in the Kobberminebugt region of South Greenland. "The area hosts numerous copper-gold showings including the small past-producing Josva copper mine, which was last worked in 1914 with reported grades up to 5% copper, 1.5 grammes per tonne gold and 250 g/t silver," AEX says.

Genedrive PLC - Manchester, England-based molecular diagnostics firm - Updates on molecular test for SARS-CoV-2 detection. Genedrive says: "The company has overcome significant technical hurdles and also further improved performance specifications alongside evolving marketplace requirements. Key specifications of sensitivity, specificity, speed, ease of use, and scalability have all been improved or addressed." Unlike other tests, Genedrive's detects two genes of SARS-CoV-2 genome and can spot all current Variants of Concern.

Sareum Holdings PLC - drug development company - Says results from UKRI grant-funded Covid-19 project were "encouraging". Research designed to probe effects of Sareum's SDC-1801 candidate, a TYK2/JAK1 inhibitor, on cytokine following Covid-19 infection. "It was also designed to confirm whether an over-active inflammatory response (known as a 'cytokine storm') via the Interferon Type 1 pathway can be blocked in this disease by SDC-180," Sareum adds. "The results of the project found that SDC-1801 reduced the levels of cytokines associated with Acute Respiratory Distress Syndrome in human lung cells infected with SARS-CoV-2 and demonstrated a profile that was superior to the anti-inflammatory steroid dexamethasone and similar to baricitinib, a JAK1/JAK2 inhibitor."

Cambridge Cognition Holdings PLC - Cambridge, England-based digital neuroscience company - Completes spin-out of drug development company Monument Therapeutic Ltd. Jenny Barnett named as chief executive of Monument, will stay on as chief scientific officer of Cambridge on part-time basis. Cambridge CEO Matthew Stork says: "By establishing Monument Therapeutics, we have created an exciting new venture to develop stratified medicine in CNS drug development that could help many patients with unmet clinical needs. It leverages Cambridge Cognition's intellectual property and provides the potential for considerable royalty payments in the future. In addition, it gives the company greater focus on the development and commercialisation of its cutting-edge digital health technologies."

Hutchmed (China) Ltd - Hong-Kong-based pharmaceutical company - Says US Food & Drug Administration accepts filing new drug application for Surufatinib to treat advanced neuroendocrine tumors.

Immunodiagnostic Systems Holdings PLC - Tyne & Wear-based diagnostic testing kits and instruments maker - Says takeover by PerkinElmer backed at court and general meetings. Cancellation of Immunodiagnostic shares expected on July 13.

Franchise Brands PLC - Macclesfield-based multi-brand franchise business - To buyback up to GBP260,000 worth of shares over next six months. In six months ended June, company purchased 145,593 at average of 138p each.

Supreme PLC - maker of fast-moving consumer goods - Buys brands belonging to SCI-MX Nutrition Ltd, sports nutrition and supplements firm. Supreme buys GBP1.3 million worth of SCI-MX and PRO2GO products. Supreme says: "The acquisition adds a number of leading and long-established retail brands to the group's growing Sports Nutrition & Wellness category across protein powders and supplements. It will also enable Supreme to leverage the SCI-MX and PRO2GO brands to grow existing relationships with retailers, as well as cross-sell these brands into Supreme's significant client base and through the group's online platform."

Apollon Formularies PLC - London-based medical cannabis company - Extends option to acquire 90% of Doc's Place International Inc Wellness Center in Jamaica for extra six months to end of 2021. "The company has extended the RPU on Doc's Place so that Apollon could focus on expanding its operations to Kingston, where it has signed long-term lease for its first International Cancer Institute in the Jamaican capital," Apollon says.

Bidstack Group PLC - London-headquartered in-video game advertising firm - Proposes GBP10 million fundraise through issue of 500.0 million shares at 2.0p each. Cash to go towards funding development of a platform which allows commercial rights owners, including bodies such as sports teams and leagues, to have control over licensed intellectual property. In addition, Bryan Neider as agreed to join as non-executive director, subject to completion of fundraise. "He brings more than 25 years of experience during his tenure at Electronic Arts, a global leader in digital interactive entertainment. He served a variety of leadership roles including managing global business development, EA Partners, corporate finance and CFO and COO for EA.com, CFO of Worldwide Studios, COO for EA's global development organisation and SVP of Global Operations," Bidstack says.

Petards Group PLC - Guildford-based developer of security and surveillance systems - Wins GBP500,000 export contract to supply ProVida in-car speed enforcement systems to new customer. Petards adds: "The equipment is expected to be fully delivered during the second half of 2021 and will be installed by the end user in its fleet of police vehicles."

Water Intelligence PLC - Palm Springs, California-based water leak detection company - Reacquires Northeast Florida franchise for its American Leak Detection unit. "Northeast Florida is a significant franchise delivering water infrastructure solutions to three cities: Jacksonville, Daytona Beach and Gainsville," Water Intelligence says. "Financially, the acquisition will be earnings enhancing for shareholders." Company to fork out USD2.8 million.

Safestay PLC - London-based hostels operator - Completes sale of Edinburgh hostel to a&o Hotels & Hostels for GBP16 million, 22% premium to GBP13.4 million book value. Safestay adds: "Part of the proceeds of the disposal will be used to reduce debt by 35% whilst providing the group with sufficient cash reserves as the business moves back out of lockdown towards positive cash generation over the coming months."

International Public Partnerships Ltd - London-based infrastructure investor - Reaches financial close on new police headquarters in South-East Hesse, Offenbach. IPP invested EUR9.5 million for 45% stake in project.

Caledonian Trust PLC - Edinburgh-based property investment company - Terminates proposed sale of St Margaret's House, Edinburgh. Property was to be sold to Drum Property Group Ltd. Remaining suspensive condition was for Drum to obtain pre-let agreement for student accommodation to be built at property. This was needed by June 30. Condition has "not proved to be possible and as such the agreement between Drum and Caledonian Trust has now lapsed", Caledonian adds.

Atlas Mara Ltd - Sub-Saharan Africa banking investor - Requests shares to be suspended due to delay in publishing annual results as well as ongoing strategic review.

Panoply Holdings PLC - London-based IT consulting - Buys Nudge Digital, a digital services agency aimed at pharmaceutical firms and wider health sector. To pay GBP5.0 milllion in total, GBP1.8 million in cash and remainder in shares, and explains acquisition will be immediately earnings enhancing.

Xeros Technology Group PLC - Rotherham, UK-based developer and licensor of technologies which reduce the environmental impact and cost of clothing and fabrics - Strikes partnership deal with Hanning Elektro-Werke Gmbh & Co KG. Deal to test and market XFiltra to domestic washing machine manufacturers.

Duke Royalty Ltd - London-based provider of alternative capital solutions to businesses in Europe - Enters into EUR10 million financing deal with Fairmed Healthcare AG, a Zug, Switzerland-based generic prescription medicines provider. "Duke was selected as Fairmed's capital partner because of the long-term nature of its capital and because it was able to structure a non-dilutive solution for management while maintaining its required internal rate of return," Duke says. "The EUR10 million royalty is a 30-year senior secured financing, with monthly payments commencing immediately in July 2021 on Duke's typical investment terms."

Octopus Renewables Infrastructure Trust PLC - investment firm - Says 48 megawatt Ljungbyholm wind farm in Sweden now operational. Says total cost of construction and acquisition was GBP59 million.

Genesis Emerging Markets Fund Ltd - investment firm - To appoint FIL Investment Services (UK) Ltd as investment manager. Also plans to change investment policy and name. To switch up policy to allow for investments in "diversified portfolio of equity, equity-linked securities and derivative instruments". These will provide Genesis Emerging with exposure to companies whose income largely come from emerging markets, "ranging from small and medium sized to large and mega cap, both listed and unlisted". Plans name change to Fidelity Emerging Markets Ltd. In addition, company announces tender offer to provide cash exit at 2% discount of net asset value per share in respect to 25% of company's capital.

TMT Investments PLC - venture capital investor in high-growth technology companies - Says value of investment in PandaDoc lifted 26% following the automation and contract management software provider's new equity funding round. Investment in UK challenger bank 3S Money Club Ltd rises more than four-fold, also after investee's funding round. And in influencer marketing platform Klear, valuation up more than three-fold. Klear was bought by media intelligence and social analytics firm Meltwater BV for USD17.8 million. "The above revaluations will result in a combined increase in the company's NAV equivalent to approximately USD0.43 per share," TMT says.

AssetCo PLC - Monmouth-based investor in wealth management stocks and activities - Reaches deal with Preservation Capital Partners Ltd to acquire 30% stake in Parmenion Capital Partners LLP for GBP27.8 million. "Parmenion is a market leading investment and advisory platform. The business has a great opportunity to build on its strong IT and client focused foundations, given the digital transformation we are seeing within the asset and wealth management industry. The company has the people and expertise to grow and to continue to deliver for advisers and customers, as they seek to achieve their long-term investment objectives," AssetCo CEO Peter McKellar says.

Gresham House Energy Storage Fund PLC - London-based utility-scale battery storage fund - Signs contracts to buy further 425 megawatts of projects from Gresham House Devco Ltd. Company adds: "275MW are proceeding into construction with commissioning targeted for Q1 2022 and the remaining 150MW will be built subject to funding and other conditions. Today's acquisition fully commits the equity funds raised in November 2020."

Valereum Blockchain PLC - Gibraltar-based AQUIS-listed firm which links mainstream currency products denominated in USD and GBP into crypto currencies - Seals GBP1 million placing at 70p per share.

Pires Investments PLC - London-based investor - Investee VividQ, a deep technology firm, announces GBP11 million seed extension round. Cash to go towards scaling up team and advancing in Asia Pacific region.

Logistics Development Group PLC - investing firm - Disposes of stake in Greenwhitestar Acquisitions Ltd, which is held through 49% stake in MArcelos Ltd. Greenwhitestar is holding company of Eddie Stobart, The Pallet Network, IForce, Eddie Stobart Europe and The Logistics People businesses. "LDG expects to receive a net cash inflow of not less than GBP120 million," company adds.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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