Telit Communications Plc (LON:TCM) shares fell 2.85% to 350.0p in late afternoon trading as it the internet of things specialist raised £39mln to fund an acquisition spree.
The company said it has already identified companies in the IoT services sector that it was looking to buy and with the new money will seek to execute deals in the near to medium term.
The money was raised through a placing at 340p per share, or around a 5% discount to the closing price yesterday. The new shares represent 10% of shares currently outstanding.
"These additional funds will provide us with further resources to continue to make complementary acquisitions - particularly to support the rapid growth of our IoT Services division," said chief executive, Oozi Cats.
In contrast, shares in Diversified Gas & Oil plc (LON:DGOS) grew 2.33% to 66.0p as it completed its “transformationa”acquisition of assets in North America’s Appalachian Basin.
DGOC has paid US$84.2mln to pick up the assets in Ohio, Pennsylvania, New York state and Tennessee which will take the group’s gross production to around 18,300 barrels oil equivalent per day.
In total, it adds some 7,300 producing oil and gas wells. And the enlarged group will now have some 60.5mln barrels of Proved Developed Producing reserves, up from 36.7mln barrels.
2.19pm...Falcon Oil & Gas on the front foot
Falcon Oil & Gas Ltd (LON:FOG) shares jumped more than 10% on Friday boosted by news that Aussie major Origin Energy has doubled its stake in the exciting Beetaloo shale project in the Northern Territory.
Origin has agreed to buy-out partner Sasol and as a result its stake doubles to 70%, while Falcon retains a 30% stake plus the same commitments pledged by both Origin and Sasol back in a 2014 farm-out deal.
Details of the deal value were not announced and the transaction is subject to a number of conditions, including government approval.
Changing hands at 27.75p, Falcon shares were up 3p or 12% on the day.
Elsewhere, shares in Hurricane Energy Plc (LON:HUR) were down around 4.5% trading at 63.94p, reversing some of Thursday’s speculative gains.
The West of Shetland focussed oil and gas firm is up nearly a third in the year to date thanks to continued success with its new discoveries, but, since the drill programme ended recently attentions have turned to desk-top and corporate activities.
On Thursday, without any discernible news, Hurricane shares advanced around 12% to close at just shy of 67p each.
11.44am...Management Resource Solutions tumbles as it resumes trading
Shares in Management Resource Solutions plc (LON:MRS) plunged 65.44% to 5.23p after it resumed trading on AIM.
The Australian-based company’s shares were suspended from trading last October during an investigation into funds raised last August that were not applied to the working capital of its MRS Services Group plant hire business.
It clarified that the funds were used for the creditors of subsidiaries that are no longer in operation.
The group, which supplies maintenance support to workshop operations and resources to the mining sector, raised £3.5bn in two placings in April during its suspension to avoid entering administration.
The placings have now taken effect following the company’s return to trading. Shareholder URU Metals Ltd said as a result of the placings, its stake in the group has increased to 10.7% from 8.8%.
In April, Management Resource reported it had swung to a pre-tax loss of A$3.2mln in the six months to December 31 from a A$522,000 profit a year ago.
ValiRx Plc (LON:VAL) shares are also under pressure, down 4.18% to 2.18p, as it widened its full year losses to £4.17mln from £2.7mln the previous year. The pharmaceuticals company blamed a 54% increase in research and development costs for clinical trials of its drugs: VAL201 for prostate cancer; and VAL401 for lung cancer.
The group said it was continuing discussions with potential partners over funding for the next stage of clinical studies for its two lead cancer drugs after good progress in 2016.
More positively, Amur Minerals Corporation (LON:AMC) shares increased 3.01% to 6.16p after kicking off its 2017 drill programme at the Kun-Manie nickel-copper project in Russia’s far east.
It marked an earlier than scheduled start to the programme, for the second year in a row. The programme will take place at strategic locations along the 16 kilometre length of the project’s Detailed Exploration and Production Licence (DEPL).
Proactive news headlines..
Kibo Mining PLC’s (LON:KIBO) listing of its Imweru and Lubando gold mining assets in Tanzania is to take effect on 23 May. A reverse takeover of Opera Investments is the method for the deal with the name of the company to be changed to Katoro Gold PLC to reflect the new business focus.
Pizza franchise group DP Poland Plc (LON:DPP) has told investors it is trading in line with expectations, with a 21% increase in like-for-like system sales during the first quarter. DP Poland, in a statement ahead of today’s annual general meeting, highlighted that it has opened eight new stores in the year to date, taking its tally to 43 stores across 16 towns and cities.
ReNeuron Group Plc (LON:RENE) has presented encouraging new data relating to the characterisation and scale-up of its CTX cell-derived exosome therapy candidates at a leading scientific conference in London. Exosome therapy is being explored by ReNeuron both as a potential new nanomedicine targeting cancer and as a delivery system for gene therapy treatments.
Internet of things specialist Telit Communications Plc (LON:TCM) is set for an acquisition spree after a £39mln cash call. Telit said it had already identified companies in the IoT Services sector that it wanted to buy and with the new money will look to execute deals in the near to medium term.
09.26am...Sepura slides as German authorites probe Hytera takeover plans
Sepura plc (LON:SEPU) shares slumped 25.97% to 11.66p after the maker of radio terminals said German authorities are reviewing a proposed takeover by Chinese company Hytera Communications.
The Federal Ministry of Economic Affairs and Energy in Germany has decided to probe the acquisition on “public policy and/or national security grounds relating to Sepura Deutschland GmbH”.
The company said it is in the process of assessing any potential impact of the review and will be engaging with the Germany authorities.
Hytera’s £74mln acquisition of Sepura was approved by shareholders earlier this year but it still needs approval from regulators.
Sepura, a communications technology business based in Cambridge, supplies equipment and devices to emergency services, public transport and military sectors across the globe.
On the upside, Strategic Minerals plc (LON: SML) shares rose 4.94% to 2.47p as it said it was taking full control of Central Australia Rare Earths Pty Ltd (CARE).
The company has bought the remaining shares it does not already own in CARE from joint venture partner Rarus Limited for £522,500. The deal will be completed on 1 June.
CARE will become a 100% subsidiary of SML but Andrew Spinks, the geologist associated with Rarus, will continue his involvement in projects through the provision of strategic professional advice, at market rates.
"Under existing arrangements, SML was due to move to a 75% ownership of CARE. However, it has become clear that to fully explore the resource potential indicated in CARE's tenements, larger amounts of funding would be required,” said John Peters, managing director of Strategic Minerals.
Frontier Smart Technologies Group Ltd (LON:FST) advanced 8.98% to 91.0p after the maker of digital radio and smart audio devices said it expects full year underlying earnings to be materially ahead of expectations.
The group also said first half revenue was significantly ahead of the last year as its digital radio business benefitted from strong demand in continental Europe and the smart radio division was supported by better-than-expected growth in Germany
SDX Energy Inc (CVE:SDX) fell 1.79% to 1.10p after saying it had not found a “sufficient” amount of hydrocarbons to warrant further testing at the SD-1X well at its South Disouq concession in the Nile Delta area of Egypt.
“Whilst it is disappointing not to have made a second commercial discovery in SD-1X's deeper target, evidence of a working petroleum system within this interval is extremely important to the prospectivity of the concession,” said Paul Welch, SDX Energy chief executive.