What do you do when your company’s share price hits an all-time high? Cash out, of course. That seems to be the lesson from AIM-listed cosmetics supplier Warpaint London.
Last week, we reported on Warpaint spiking to an all-time-high of 500p on the back of record sales, margins and profits in fiscal 2023.
This Friday, it was reported that chief executive Samuel Bazini and managing director Eoin Macleod sold a combined £31.5 million worth of shares at 450p a pop, representing over 9% of issued share capital in the group.
The placing was “in response to strong investor demand following the release of the company's full-year results… and to increase the company's free float and broaden its shareholder register”, said Warpaint.
This strong investor demand was evident as the placing was upsized from the initial placing of six million shares.
As a non-dilutive bookbuild, it didn’t exert too much influence over Warpaint’s stock price, which was down around 5% heading into Friday.
Stocks rally
Stocks small and large had another successful week, particularly the FTSE 100 blue-chip index, which smashed another all-time high, surpassing 8,200 for the first time in history on Friday.
Across the pond, Apple’s (some might say surprisingly) strong second quarter and supersized $110 billion buyback announcement supported blue chips on Friday.
AIM, meanwhile, had to be content with hitting a 10-month high after rallying 1.8% to 770.
More risers and fallers
Electric Guitar PLC (AIM:ELEG) made its AIM debut on Friday after completing the acquisition of first-party data specialist 3radical and successfully closing a £1.32 million fundraiser.
3radical has created a software-as-a-service platform called Voco, which enables organisations to engage individuals and request their data directly using progressive and interactive digital experiences, at scale.
"Today marks an important milestone as our shares are admitted to trading on AIM,” said Electric Guitar’s chief executive John Regan. "Our decision to pursue this path reflects our confidence in the potential for growth that lies ahead.” Shares were up 1.25% at 2.02p following the debut.
The junior market also welcomed The Works, after the hobby, gifts and various knick-knacks dispenser completed its self-imposed demotion from the main market.
Chair Carolyn Bradley called AIM “a more appropriate market” for The Works, citing increasing costs and regulatory requirements of the main market as reasons for the move.
This week in the energy sector, Europa Oil & Gas said the totalitarian central African state of Equatorial Guinea presents better opportunities than the British North Sea.
Europa slammed the UK regulator’s approach to North Sea licensing, specifically how the North Sea Transition Authority proposed a “marriage” between Europa and a third party.
No dice, said Europa, adding that the NSTA had “reduced the economic and strategic attractiveness of the licence”. The group’s share price dipped 7% throughout the week.
Deltic Energy had similar things to say, stating that the politicisation of the North Sea has had a severely negative effect on the ability of UK Exploration and Production (E&P) companies to commit to long-term investments in the North Sea.
"The struggle to find a way forward on a project like Pensacola, which is one of the largest discoveries in the North Sea in recent decades, is a real-world consequence of our political leadership using the nationally important oil and gas industry as a political football at a time when energy security is of paramount importance,” Deltic chief executive Graham Swindells said in a statement.
Deltic said it could face tougher fundraising conditions and shares were slashed in half as a result.
Asiamet Resources took the lead in the mining sector with a 36% rally, vindicating recent research from broker Optiva Securities. The Indonesia-focused miners’ shares are oversold, declared Optiva, highlighting an unfair discount on “project delays and fluctuating investor sentiment”.
At just 1.15p per share, Asiamet still has a long way to go before closing in on Optiva’s 7.22p per share risked net asset valuation.
Trinity Exploration & Production bounced 47% higher after agreeing to be taken over by Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) in an all-share deal worth £24.1 million.
In the biotech space, Ondine Biomedical Inc (AIM:OBI, OTC:OBIMF) bounded 27% on Friday after announcing a £3 million equity round involving existing shareholders, with the kicker being a 36.6% premium to Thursday’s closing share price.
Ondine will use some of the funds to support the “rapid sales growth of its Steriwave nasal decolonisation therapy”.
Angle plc was another star riser in the biotech space. Shares shot up 20% on Friday after disclosing a supplier agreement with AstraZeneca to develop an androgen receptor (AR) detection assay to enhance prostate cancer studies.
With a contract value of £550,000, the project is scheduled for completion in the first quarter of next year.