Small Cap Movers: Junior market in healthy shape as fundraisings continue

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It was another bustling week of fundraisings in the junior market as some uncertainty started to dissolve now that we have rough plans for a vaccine rollout and the US election is done and dusted.


“With a solution to Brexit looming there are less reasons for investors to say ‘no’,” commented Christopher Raggett, co-head of corporate finance at City broker finnCap.


“Entrepreneurs are also looking to April and the potential increases in CGT which make it tempting to take some money off the table now. These ingredients lead to a lively secondary and IPO market with more issuances expected before the year is out.”


Helium One Global Ltd (LON:HE1) floated to an immediate premium on Friday after sealing its hotly anticipated listing. It brings to AIM a novel and high-potential take on exploration, with a fully-funded campaign in Tanzania kicking off in mid-2021.


Friday’s opening deals were marked at 5p, and, after giddy enthusiasm settled, was changing hands at around 4p – representing a gain of around 49% from the 2p paid per share by investors in last month’s oversubscribed share placing.


Cybersecurity firm BrandShield Systems (LON:BRSD) was another newcomer, raising GBP3mln on its first day of dealings following the reverse takeover of Two Shields Investments.


This week’s secondary fundraisings also pointed to a healthy market, with geospatial technology firm IQGeo (LON:IQG), corporate broker WH Ireland (LON:WHI), engineer Pressure Technologies PLC (LON: PRES) and entertainment firm Live Company (LON:LVCG) all raising cash to fund acquisitions.


Elsewhere, drug developer Redx Pharma (LON:REDX), vanadium-flow battery manufacturer Invinity Energy Systems plc (LON:IES), oiler Block Energy (LON:BLOE) and miners Orosur Mining (LON:OMI) and Strategic Minerals (LON:SML) tapped investors to support existing projects.


Turning to the wider market, the AIM All-Share index continued its steady rise and added 2.9% to 1,069 this week, just about outperforming a 2.7% jump to 6,543 by the FTSE 100.


Sticking to the risers, retail promotions specialist SpaceandPeople PLC (LON:SAL) rocketed 94% higher to 8p after signing exclusive agreements with the owners of four former Intu shopping centres for promotional sales and temporary retailing.


Elsewhere, N4 Pharma PLC (LON:N4P) soared by 91% to 10p after making progress with Nuvec, a delivery system for cancer treatments and vaccines, which it hopes will spark interest in coronavirus (COVID-19) vaccine developers.


Braveheart Investment Group PLC (LON:BRH) climbed 54% to 56p after revealing it will pay a special dividend of 42.75p per share that is higher than last week’s 37p closing price, following the sale of its stake in Remote Monitored Systems.


Meanwhile, gold explorer Panthera Resources PLC (LON:PAT) glittered 43% brighter at 17p after drilling started at its Paimasa project in Nigeria.


Eve Sleep PLC (LON:EVE) ticked 43% higher to 4p after once again raising its full-year forecasts after momentum was maintained thanks to TV advertisements and a successful Black Friday weekend.


Among the fallers, Providence Resources (LON:PVR) and Lansdowne Oil & Gas Plc (LON:LOGP) both plummeted more than 40% to 4p and 1p respectively after signing a farmout agreement with Norway’s SpotOn Energy. The latter will receive a 50% working interest in the Barryroe field, located offshore Ireland, expected to go into production in 2023.


Fellow oiler Caspian Sunrise PLC (LON:CASP) fell 32% to 1p after saying it is making progress at its flagship BNG asset in Kazakhstan though none of the wells is currently producing at commercial quantities.


Miner Tri-Star Resources PLC (LON:TSTR) plunged 28% to 2p after confirming it will delist and become a private company next week, while shareholder Odey Asset Management trimmed its stake to 67.18% from 68.91%.


Finally, Daily Mash website owner Digitalbox dropped 21% to 5p after warning it will not meet current market expectations for revenue and profits due to a difficult digital advertising market amid COVID-19 volatility, though it expects to deliver profits in the full year.


Later this month, newly established life sciences investor Intuitive Investments Group is planning its debut on the junior market, having earmarked a GBP7.5mln IPO.

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