Dukemount Capital rallies as shareholders vote against unwanted loan facility

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Dukemount Capital PLC (LON:DKE) shares are striding higher after a display of shareholder power at its annual meeting, with the board losing two key votes.


The long-dated income provider’s shares were heavily sold off last month on news that the board had arranged GBP6.5mln of loan note funding from Global Corporate Finance Opportunities for an entry into the green energy market via a gas peaking venture.


Investors have been venting their anger on social media at what they saw as a highly dilutive facility and at the meeting the main board listed company was roundly defeated on the votes.


“As a result of the voting of the general meeting, the company will not now be able to pursue its agreement,” Dukemount said, adding that it will continue to look for alternative funding options.


Hopes now rest on the company announcing a better financing deal to get them started in the fast-moving flexible power market.


10.58am: Immedia Group immediately plunges on return after suspension


Immedia Group PLC (LON:IME) is the biggest faller this morning as its shares are released from suspension, tumbling 48% to 18.5p as it said talks over a potential reverse takeover have been binned.


The shares had been suspended since March as talks seemed to make progress with property data specialist Sprift Technologies.


But the negotiations have been terminated “as a result of due diligence and subsequent valuation discussions”, with Immedia said it is recouping GBP150,000 of costs for a GBP0.9mln secured loan facility granted to Sprift that has become repayable with the end of the talks.


Another big faller on AIM is the junior market’s largest company, ASOS PLC (LON:ASC), down 16% to 3,961p after it reported good sales growth but said profit margins were being squeezed by rising freight costs from global supply chain disruption.


Growth in the UK also slowed in the final weeks of June, ASOS said, putting the blame on “continuing COVID uncertainty and unseasonal weather”.


Broker Peel Hunt said this creates a good ‘buy the dip’ opportunity for investors, as analysts “see a business with a well-invested global distribution platform, customer relevant offer, primed for a global recovery in apparel sales”.


“The shares are trading on a discount to many of the structural growth multi-channel stocks in PE terms, with a FCF yield to match.”


9.17am: Nanoco tops up coffers


Nanoco Group PLC (LON:NANO) rose by a reasonable quantum in early trading after the nanomaterials company provided a positive trading update and said it had raised GBP3.2mln in a loan note funding from major shareholders.


Shares in the maker of cadmium-free quantum dots, which have potential uses in a variety of industries, were up 15% to 21.9p in early trading as the company said it was making “excellent progress” in expanding its product and customer portfolio, with “active” talks with five customers on eight different products.


Management said “confidence remains high” in the strength of the Manchester-based company’s lawsuit against Samsung over the alleged wilful infringement of Nanoco’s IP, with hopes that a “favourable and transformative outcome for shareholders” can be achieved.


The proceeds from the loan note subscription – where the notes are unsecured and are repayable three years from completion – extend Nanoco’s organic business cash runway “beyond the point of visibility on commercial production orders and key dates in the Samsung litigation process”, it said.


Another early riser was SEED Innovations Limited (LON:SEED), formerly known as FastForward Innovations, as it reported an increase in net assets per share to 11.72p from 8.82p in the year to end-March.


Looking ahead, chairman Ian Burns said the investment company is “increasingly streamlining our investment focus into areas where we have significant expertise, namely primarily health, wellness and medical cannabis.


“We have a solid track record in the medical cannabis space and are confident that with the recent guidance from the FCA there are a number of both early and late stage opportunities that have the potential to deliver value for our shareholders.”

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