Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF), the purveyor of nicotine-free vaping products, has found itself the subject of an activist campaign from its largest shareholder.
Jonathan Swann of CFC Underwriting, who holds a 13.45% stake in the London-listed group, wants to oust two of Chill’s boardroom members- chief commercial officer Antonio Russo and chief operating officer Trevor Taylor.
He’s seeking the appointment of Graham Duncan and Aditya Chathli in place of Russo and Taylor, but what he hopes to achieve from the potential coup is unclear.
While it’s true that Chill’s shares are down by a third this year, that has more to do with a regulatory clampdown on disposable vaping products. Chill said it was “deeply concerned” by the development and management “stands by its directors”.
There was a positive market reaction to the news though, with shares rallying as much as 40% to 3.8p come Wednesday, though they have since retreated to 3.04p.
Middle East conflict hits stocks
Speaking of conflict, escalating tensions in the Middle East hammered the broader stock market this week, particularly on Friday after Israel bit the bullet and launched missile strikes on Iran.
The FTSE 100 blue-chip index and the AIM All-Share junior index fell more than 2% each over the five-day trading period, with lacklustre retail sales figures for March released on Friday adding to the bearish trading environment.
Commodities, on the other hand, fared well, with gold nearly reclaiming its all-time high amid a ‘flight to safety’ and Brent crude jumping 4.4% to US$90 a barrel on Friday before falling back to US$88.25.
Metals prices in general are in good shape at the moment, so it was unsurprising to see mining companies rally.
More risers and fallers
Tungsten West PLC (AIM:TUN, OTC:TNGWF) led the charge with a 57% gain on its share price, while Metals One shot higher in anticipation of the results from the un-assayed intersections at its P5 target at the Black Schist Ni-Zn-Cu-Co Project in Finland in May.
Brazil-focused Serabi Gold (AIM:SRB, TSX:SBI) added 9/.5% over the week after a better-than-expected first-quarter production report - with the outperformance driven by the success of its Coringa operation.
Greenland-focused graphite, titanium and iron ore miner Greenroc Mining plc shot up over 37% while Cornish Metals added 40%.
The latter reiterated the preliminary economic assessment for the South Crofty mine in Cornwall is on track for completion in this quarter while noting a rally in the price of tin.
Refurbishment of New Cook's Kitchen (NCK) shaft is progressing as planned, said Cornish, with the two winders and cages now installed, fully commissioned and certified to allow for safe transport of equipment and workers within the shaft.
Ken Armstrong, interim chief executive, said: "The timing of this important work coincides with a strengthening tin price, which reached over US$30,000 per tonne this past week, and an emerging recognition of tin as a critical metal by the United Kingdom and other national governments.
AIM-quoted SEED Innovations Ltd (AIM:SEED, OTC:FFRIF), which invests in early-stage health, wellness, and medical cannabis companies, shot up 29% following an update of its portfolio company Little Green Pharma.
Little Green posted record quarterly revenues of £3.7 million, up 34% sequentially and over 36% year on year.
Ed McDermott, chief executive of Seed Innovations, called the results “outstanding… highlighting its growing reputation in the medical cannabis space”.
“Not only is LGP solidifying its foothold in Australia with increasing revenues there, but it is also expanding its presence and sales in the European markets, positioning itself to potentially capitalise on the recent cannabis legislative change in Germany,” added McDermott.
88 Energy shares were off 29% this week, despite a flurry of good news emerging from the Alaska-focused oil and gas exploration and production company.
The group told investors it is undertaking post flow test studies for the Hickory-1 well in Alaska with a view to upgrading estimates of contingent resources.
At the same time, 88 Energy is to progress commercialisation options for the project.
Horizonte Minerals was the week’s worst performer though, plummeting 45% after conceding it was unable to secure interest in the full financing needed to complete its 100%-owned Araguaia Nickel Project.