Small caps are often prone to dramatic price fluctuations. Such is the nature of securities on the lower end of the value spectrum.
But rarely do we see a surge in value the likes of which AIM-listed Mirriad Advertising PLC (AIM:MIRI, OTCQX:MMDDF) enjoyed this week.
The advertising technology group more than tripled its market capitalisation by the time Friday rolled around (and in fact briefly surged as much as 500% on Thursday), and for good reason.
Announced on Wednesday, Mirriad has been chosen to collaborate with none other than Microsoft to build a new application programming interface (API) for integrating the Microsoft Azure cloud-computing platform and its AI capabilities for various client-driven use cases.
Mirriad’s patented SceneFinder technology is a touch of genius.
Using digital post-production techniques, Mirriad enables companies to insert product placements into existing visual content, all optimised to reach the widest set of eyeballs possible.
Say you want your sauce brand digitally placed on the kitchen table of a morning cooking show, or your telecoms company’s billboard inserted into the background of a televised football match. SceneFinder makes this possible.
Mirriad’s partnership with Microsoft intends to scale and expand these possibilities.
Chief executive Stephan Beringer said that “partnering with Microsoft is an important milestone for the further development of our in-content advertising platform, proposition and business”.
He added: “The wide-ranging agreement with Microsoft can unlock significant benefits and opportunities for both parties as we continue to develop our technical capabilities and scale the creation and delivery of contextually relevant ad experiences in content.”
Judging by the way shares skyrocketed, investors seem to agree.
Longboat joins the party
Mirriad wasn’t the only 2x on the AIM market this week. Longboat Energy soared 126% to 21.5p after the Norwegian North Sea explorer struck a deal with Japan Petroleum Exploration Co (Japex) to form a joint venture.
Tokyo-listed Japex intends to invest up to US$50mln (£40mln) cash into Longboat’s Norwegian subsidiary and rebrand it to Longboat JAPEX Norge.
Longboat called it a "growth-led strategy to create value predominantly through the acquisition of development projects, growing 2P reserves and reaching a significant production level within three to five years".
Sticking with the resources sector, Bushveld Minerals Limited (AIM:BMN, OTC:BSHVF) surged 20% on Friday, bringing shares to 4.39p after the vanadium producer signed a non-binding term sheet with Orion Mine Finance to refinance its existing convertible loan note of approximately US$45mln due in November 2023.
On the downside, Orosur Mining Inc (AIM:OMI, TSX-V:OMI) saw around a third of its market value wiped following the release of its Thursday operational update.
Investors appear to be worried over the dual Toronto and AIM-listed, South
American-focused gold producer’s progress on the Anzá Project in Colombia after Colombian company Minera Monte Águila advised Orosur that it had reduced exploration expenditures on the project, effectively placing it in “care and maintenance”.
The gambling sector saw a bout in volatility, with Zytronic (AIM:ZYT) plc, which manufactures touch screens for slot machines among other things, plummeting 27% in the week following the release of the UK’s new gambling white paper last Thursday.
Culture, media, and sports secretary Lucy Frazer said new proposals would focus on six key areas - online protection, marketing, the gambling commission's power, protecting children, on-premises operations, and dispute resolutions, calling it “an important step towards having a robust regulatory framework that is fit for the digital age and creates a level playing field for all operators”.
However, Zytronic’s profit warning this Thursday appeared to be caused by other factors.
Firstly, an over-stocking situation with one customer led to lower-than-expected first-half revenues and potential delays to orders. Secondly, Zytronic was impacted by a Chapter 11 bankruptcy filing by Aruze Gaming America, which was the end-customer to multiple clients of Zytronic.
The automotive segment of the AIM market sent mixed signals this week.
Auto sector in both lanes
CT Automotive Group PLC (AIM:CTA) shares closed around 9% lower at 36.5p after the company warned that its underlying loss before tax in 2022 could be around US$15mln.
The group, which designs, develops and manufactures bespoke automotive interior finishes, chalked the losses up to adjustments made during an ongoing statutory audit.
Taking the fast lane was TI Fluid Systems PLC (LSE:TIFS), a global leader in automotive fluid systems, which saw its shares surge 18% higher to 125.4p after an “encouraging start” to the year, per chief executive Hans Dieltjens first-quarter earnings commentary on Wednesday.
Revenue for the three months ended 31 March 2023 was €869.8mln, a 15.2% year-on-year increase.
Finally, Aptamer Group PLC (AIM:APTA) in the life sciences sector had a shocker on Friday. The developer of Optimer binders for the life sciences industry warned that its full-year revenues will be materially lower than expected, with its existing business pipelines taking longer than expected to convert, including licensing and royalty-based contracts, amidst market headwinds.
Aptamer shares crashed more than 50% as a result.
The AIM All-Share Index ended the week in the green, albeit only modestly, adding 0.6% to 826.77p.
Encouragingly, there were no noteworthy delistings on the AIM market in the past five days. This typically wouldn’t be a newsworthy occasion, but given the events in the past month, it’s a small blessing!