Blencowe lower after the old good news/fundraising one-two punch


Blencowe Resources PLC (LON:BRES) got the traditional response from market makers after it issued new equity; the shares were marked down, by 9.3% to 6.125p.

Hot on the heels of yesterday’s results of metallurgical test work, the company has gone with the old one-two punch of good news/fundraising and bashed out 3.93mln shares at 6p a pop to raise GBP235,000.

The dosh will be used to advance the development of the Orom-Cross Project and the pre-feasibility study that is due to commence following confirmation of the updated JORC resource, expected towards the end of the third quarter.

2.50pm: Substitution at Guild Esports

Carleton Curtis has made the personal decision to step down as executive chair of Guild Esports (LON:GILD), sending the shares tumbling 8.8% to 7.35p.

Derek Lew, currently a non-executive director, has been appointed non-executive chair and will lead the board’s oversight of the executive management team and direct the company’s strategy. Kal Hourd remains as chief executive officer.

Lew has 25 years’ capital markets experience in North America and the UK and is an active esports investor.

1.55pm: Warm wlecome for two new listings

Two newly listed companies, Seraphim Space Investment Trust PLC (LON:SSIT) and LendInvest PLC (LON:LINV), have both received a warm welcome from investors in their first day’s dealings.

Seraphim, which calls itself the world’s first space tech investment fund, saw its shares reach an orbit 3.5% higher than the issue price of 100p at which it raised almost GBP180mln from investors including Sir Richard Branson.

Chairman Will Whitehorn, former president of Virgin Galactic, said: “Space is the final investment frontier but our team has boldly invested where virtually no one has invested before and proved that there are returns out there above the atmosphere.”

It could be said that excitement around the burgeoning space sector is only surpassed in the UK by interest in the property market, which is perhaps why LendInvest, which is focused on property finance, has done a bit better, with its shares up 9% to 202.5p.

In its IPO funding, LendInvest raised GBP40mln at 186p, which comes on top of another GBP500mln drummed up from the likes of JP Morgan, HSBC, Citigroup and National Australia Bank earlier in the year.

Chief executive Rod Lockhart said today: “The capital that we have raised through this IPO will enable us to accelerate our technology roadmap, expand into new areas of property finance, and attract new investors, brokers and borrowers to our platform.”

With 35 new arrivals on London’s junior market in the first half of 2021, more are still queuing up to list, including Congo and Zambia focused developer and explorer Central Copper Resources Limited, US lithium explorer Bradda Head Holdings Limited and capital-light drug developer Poolbeg Pharma PLC.

12.58pm: Rurelec jolted to life

International power generation tiddler Rurelec PLC (LON:RUR) is the top riser on Wednesday afternoon, with its shares fizzing 35% higher to 0.675p.

This was on the back of the company saying it has now received a further payment US$480,000 from joint venture Patagonia Energy (PEL), of which Rurelec is a majority owner, though repayment of some loan notes.

Since November 2019, when the loan notes were issued, PEL has received repayments from Argentinian powerplant Energia del Sur of US$4.4mln and to date made repayments to Rurelec of US$4.3mln.

There is a US$19.6mln outstanding balance on the loan notes and it has been agreed that Rurelec will get 80% of the next payment of US$0.7mln and then a 72% share of the balance.

The total amount owing to Rurelec is US $14.1mln, it said, but added there was no guarantee as to when any further loan repayments will be made and the AIM company’s working capital position remains “under review pending the resolution of the Argentine spot energy tariffs for electricity”.

11.58am: Tern flaps lower

Tern PLC (LON:TERN) is the biggest faller in morning trading, after the internet-of-things investor completed a discounted fundraising.

The AIM-listed company completed a GBP4mln share issue priced at 18.8p per share, down from highs above 22p last month and a two-and-a-half-year high above 31p earlier in the year.

A retail offer via PrimaryBid was completed overnight, raising a gross GBP1.99mln, adding to the subscription of a similar size.

Chief executive Al Sisto said Tern intends to use the proceeds “to maximise the value to our shareholders of our portfolio and I look forward to providing further updates in due course”.

8.32am: 7digital Group lifted by contract extension

7digital Group PLC (LON:7DIG) was one of the bright spots in early trading, jumping 4.6% to 0.97p after the company said it has signed an extended contract into 2023 with a global technology company customer.

The digital music specialist said the customer will use its platform to access a world-wide music catalogue from rights-secured labels as well as tracking and reporting services.

Meanwhile, plastics specialist Symphony Environmental Technologies PLC (LON:SYM) rose 12.3% to 21.3p after saying it has received approval from the US Food & Drug Administration (FDA) for its d2p antimicrobial food contact technology alongside much greater loading of the technology and the wider use of its original bread-packaging approval announced in February last year.

The AIM-listed firm said that the FDA’s approval applies to all types of polyolefin and polyester film for wrapping bread, instead of just linear low-density polythene (LLDPE),. As a result, it expects an “acceleration of the commercial process in the near term”.

Also on the rise was Kanabo Group PLC (LON:KNB), which climbed 1.5% to 16.7p after it passed a significant commercial milestone with the shipment of its first medicinal cannabis cartridges to the UK, as set down in its IPO prospectus in January.

The cartridges will be sold by the LYPHE Group’s clinics and dispensaries to be used with Kanabo’s VapePod device.

Proactive news headlines

Open Orphan PLC (LON:ORPH) has won two new lines of business. Through its Breda office in the Netherlands it has landed a EUR900,000 contract for clinical trial services with an unnamed existing client which it describes as a “world leader in vaccine and antiviral testing”. And in a separate announcement, it said the government is expanding a COVID-19 characterisation study with the recruitment of a further 20 healthy volunteers “to answer further questions” that can help in the fight against the virus.

Recently listed Arecor Therapeutics PLC (LON:AREC) said it is making progress in line with expectations outlined at the time of its flotation in early June.

Base Resources Limited (LON:BSE, ASX:BSE) is boosted by comments made at a conference by a government official who said an extension to the Kwale Special Mining Lease (SML 23) has been approved.

Ariana Resources PLC‘s (LON:AAU) chairman has hailed the dawn of a “new age” into the 2020s as the company continued to advance a strategy that he said will allow it to “pay dividends over the long term”.

Alien Metals Limited (LON:UFO) said its planned drilling programme at the Donovan 2 copper-gold project in Mexico remains little changed after reviewing new data.

Guild Esports PLC (LON:GILD) said Carleton Curtis has made the personal decision to step down as executive chair and following discussions with the board has left the company.

Kromek Group PLC (LON:KMK) is on course to deliver record revenues after it received new contracts and repeat orders across all of its target segments.

88 Energy Ltd (LON:88E, ASX:88E, OTC:EEENF) told investors that further geochemical analysis of core samples from the Merlin-1 have again shown the presence of hydrocarbons.

Challenger Energy Group PLC (LON:CEG) said logging and analysis confirmed some 300 feet of net oil bearing reservoir sands in the Saffron-2 well in Trinidad and it is now being prepared for a production test later this month.

Seeing Machines Limited (LON:SEE) said trading of its shares in London has moved to the Stock Exchange Electronic Trading System (SETS). Previously, the shares were trading from SETSqx, the exchange’s quotes and crosses trading platform.

Iconic Labs PLC (LON:ICON) said joint administrators continue to work with the board and a potential funder with a view to determining whether there is a potentially viable financial proposal which could be proposed to creditors, and if relevant to shareholders. As the administrators will be issuing their report and proposals to creditors shortly, its delayed general meeting has been further adjourned to 10 August.

Anglo Pacific Group PLC (LON:APF, TSX:APY) announced that it received notification that chief executive Julian Treger’s Kings Chapel International vehicle sold 100,000 ordinary shares at an average price of 140.12p per share, reducing his stake to 79% of its pre-existing level, or 1.77% of the company’s ordinary share capital.

Bidstack Group Plc (LON:BIDS) said shareholders are still strongly advised to complete proxy forms ahead of its general meeting on 19 July, with attendance strictly limited to those shareholders whose names appear in the register of members at the close of business on 16 July and who have an NHS COVID pass.


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