Proactive Investors - Run By Investors For Investors

RedT Energy Storage shares plunge as it announces strategic review and equity raise

A look at some of the top risers and fallers in London on Thursday.
Capital & Regional was hit by negative sentiment towards retail assets

RedT Energy Storage PLC (LON:RED) was in the red after announcing a strategic review of the business and an equity raise.

The energy storage solutions company said the review would explore all options available to fund the business going forward.The review will be funded by a £940,000 share placing and an associated open offer to raise up to a further £2.26mln.

The company said it remains in active discussions with a number of interested parties to finance the business but there is insufficient time to finalise the talks within the "constraints imposed by its cash position and continuing cash requirements".

Shares fell 43% to 2.05p in afternoon trading.

ECR Minerals PLC (LON:ECR) shares gained 10.3% to 0.9p each after reporting significant high-grade gold assays from the reverse circulation (RC) drilling programme recently completed at the Blue Moon prospect in Australia.

The precious metals company said, following its announcement reporting visible gold from hole number BBM007 on 28 February 2019, assay results received for holes BBM007, BBM006 and BBM004 have shown both high-grade intervals and significant widths of anomalous gold grades.

Bacanora Lithium shares soar as it confirms talks with potential investors for Sonora lithium project

Bacanora Lithium shares surged after saying it is in discussions with a number of potential cornerstone investors as part of the process to secure full funding of US$460mln for the Sonora lithium project in Mexico in the second-quarter of 2019.

In a statement noting recent press speculation, the AIM-listed lithium company said these discussions are ongoing and added that it will provide an update to the market as appropriate.

Shares jumped by 47% to 25.75p in afternoon trading.

Kin and Carta PLC (LON:KCT) shares dropped 8.5% to 86p after the marketing services firm reported weaker interim revenue and adjusted profit.

Revenue declined 5% to £87.2mln in the six months to January 31 and adjusted pre-tax profit fell 4% to £8.0mln, led by a weak performance in its strategy and communications units.

“Whilst we remain mindful of current political uncertainty, we currently do not expect revenue to decline in our Strategy and Communication pillars in the second half,” the group said.

Capital & Regional shares under pressure as it swings to full-year loss amid tough retail market

Capital & Regional PLC (LON:CAL) shares are under pressure after the shopping centre owner swung to a 2018 loss amid a tough retail market.

The company said 20 retailers entered into company voluntary arrangements – a process that allows a business to close stores and negotiate lower rents to avoid entering administration. This hit net rental income by £1.5mln.

However, like-for-like net rental income was flat due to the “affordability and appeal of our assets to retailers”.

The group made a loss of £25.6mln last year, compared to a profit of £22.4mln, due to a fall in property valuations as Brexit uncertainty and struggles on the high street hit sentiment towards its regional retail assets.

Shares dropped 9.2% to 28.95p in morning trading.

Cadence Minerals Plc (LON:KDNC)  shares rose 14.2% to 0.12p after saying potential targets at the Torrens East copper project in South Australia have been identified.

Auroch Minerals, in which Cadence holds a 6.6% stake in, has completed a review of historical geophysical, geological and drilling data for the Torrens East project it recently acquired.

It said it found highly-prospective gold, iron oxide and copper targets and is now keen to begin exploration work

Stilo International shares slump as it warns of another challenging year after 2018 profits plunge

Stilo International Plc (LON:STL) shares slumped after the software developer posted a 94.3% drop in 2018 profit.

The company, which makes software tools and provides cloud services, said profit after tax fell to £177,000 last year from £313,000 a year ago as revenue dropped 21.4% to £1.49mln.

The decline was led by a reduction in revenues a major customer of its OmniMark propriety software.

Stilo added that 2019 would be a “challenging year” with “potential demand, as always, difficult to predict at the current time”. 

Shares fell 17.5% to 2.3p in morning trading.

Impellam Group PLC (LON:IPEL) was also on the back foot after the managed services and specialist staffing provider reported a 14.4% decrease in like-for-like adjusted earnings for 2018.

Adjusted earnings (EBITDA) fell to £50.2mln, due to investments in IT and challenging market conditions in the UK healthcare, education and retail markets.

Like-for-like revenue rose 5.7% to £2.28bn, driven by managed services growth.

Shares dropped 14.15% to 470p.

Touchstone Exploration and Paragon Entertainment in positive territory 

On the upside, Touchstone Exploration Inc (LON:TXP) shares edged higher as revealed strong production for the first two months of 2019.

Touchstone said production presently (based on seven preceding days in March) stands at approximately 2,358 barrels of oil per day, boosted by eleven wells drilled in 2018.

It reported oil sales of 1,994 barrels of oil per day in January, and, an increase to 2,179 bopd in February.

Shares rose 2.1% to 12p.

Paragon Entertainment Ltd (LON:PEL) shares rose 15% to 0.75p after saying management team bought holdings in the visitor attractions company.

Chief executive Mark Pyrah bought an 11.8% stake, non-executive chairman Mark Taylor took a 7.8% interest and chief financial officer Neil Jefferies purchased a 1.5% holding.

Paragon raised £150,000 in aggregate through the subscription of shares at 0.8p each, a 23% premium to the closing price on Wednesday. 

Proactive news headlines:

NetScientific PLC (LON:NSCI) has said it is unaware of any reason behind a 247% surge in its share price on Wednesday to 12.5p.

Tests on ore from Horizonte Minerals PLC’s (LON:HZM) Vermelho nickel project in Brazil have confirmed the quality is high enough for stainless steel production and potentially for electric vehicle batteries. Metallurgy testwork on saprolite samples indicated they can be processed using a rotary kiln plant, which is the type being built by Horizonte at its neighbouring Araguaia nickel deposit.

Touchstone Exploration Inc (LON:TXP, TSE:TXP) highlighted a degree of strength in terms of production as new wells drilled during 2019 continue to boost oil sales. Ahead of 2018 results, due to be released on 27 March, the company has updated on its performance during the first two months of the current financial year.

Synairgen plc (LON:SNG) is to include patients with more severe chronic obstructive pulmonary disease (COPD) in the second part of the mid-stage study of its SNG001 drug. The move comes after a successful interim safety review by the independent Data Safety Monitoring Committee (DSMC) which did not identify any safety concerns for patients currently enrolled in the trial.

ImmuPharma PLC (LON:IMM) continues to engage with potential corporate partners for Lupuzor, its late-stage treatment for Lupus, as well as progressing potential collaboration opportunities on its other projects.

Shefa Yamim (ATM) Ltd (LON:SEFA) is targeting further exploration at its Kishon Mid-Reach project in Northern Israel after making “excellent progress” in its first full year as a listed firm.

Anglo Asian Mining PLC (LON:AAZ) has confirmed its underground gold mine at Gadir in Azerbaijan has sufficient material for at least five years of production. A JORC-compliant estimate put gold reserves at 70,000 ounces with 300,000 oz of silver and 1,400 tonnes of copper.

Europa Oil & Gas Holdings PLC (LON:EOG) has announced that it will transferred operational control of the Holmwood project  to partner UK Oil & Gas PLC (LON:UKOG), which has hands-on experience with the Horse Hill success in the licence next door.

The hope among the Holmwood partners – which also include Union Jack Oil PLC (LON:UJO) and Egdon Resources Plc (LON:EDR) – is that the change may give fresh impetus to a project that had stalled somewhat due to issues connected to planning permission.

PCG Entertainment Plc (LON:PCGE) said it has received notice of a County Court Judgement against the company for £25,456.48 issued on 30 January 2019.  The group pointed out that its board of directors did not receive notice of the hearing and does not believe the amount is due and have therefore engaged solicitors with a view to having the judgement set aside.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use