Shearwater Group plc (LON:SWG) saw its shares soar 16% higher in late afternoon trading to 4.5p after news the refocused cyber-security firm’s chairman, David Williams has today purchased 6.25mln ordinary shares in the company at that price.
The AIM-listed firm said, following this market purchase – made via the DW Pension Fund - Williams' holding in the company had increased to a total of 119,833,994 ordinary shares, representing 12.43% of the issued share capital.
There was also some profit-taking in two recent, well-received new issues, with Destiny Pharma plc (LON:DEST) losing 7.9% at 216.5p and appScatter Group PLC (LON:APPS) down 6% at 70.5p, both stocks having notched up good premiums on their first day of dealings earlier this week.
12:40pm - Fulham Shore and ThinkSmart top Wednesday’s small cap fallers
Small cap restaurant operator Fulham Shore PLC (LON:FUL) slumped around 22%, to trade at 13.45p, after warning investors of a slowdown during the summer holiday months of July and August.
ThinkSmart Limited (LON:TSL) shares dropped 21% to 10.25p after its results revealed that the point-of-sale lender saw a £10mln reduction in revenue, reported a £700,000 loss and highlighted that funding facilities had been extended.
Vectura Group PLC (LON:VEC) was down around 10% on the same day as it announced a new licence agreement with Pulmatrix Inc (NASDAQ:PULM), which comes with a drug development programme, and it announced interim results which included a £41mln operating loss.
Mountfield Group Plc (LON:MOGP), 7.6% to 1.4p, announced that it had landed a £750,000 contract from what it describes as ‘a leading client’.
Silence Therapeutics Plc (LON:SLN), up 11.6% to 208.25p, released interim results reflecting what chief executive Ali Mortazavi said was a “transformative and highly productive period”.
Elsewhere, other small caps like Empyrean Energy Plc (LON:EME), up 19.9% to 12.89p, and Sunrise Resources Plc (LON:SRES), up 29% to 0.247p, seemingly continued to see momentum following recent news flow.
11:00am - SDX Energy shares driven higher by oversubscribed equity raise
A positive reaction to a small cap equity raise is rare, and, a small cap equity raise being executed ‘at market’ prices is rarer still.
So, it’s perhaps little wonder that SDX Energy Plc (LON:SDX) was among Wednesday’s notable risers on AIM, up almost 4% to 45.4p in the morning’s dealing.
The Egypt and Morocco focussed oil and gas producer this morning announced it was raising US$10mln in an oversubscribed equity subscription – with some new shares issued at 43.75p each (Tuesday’s closing mid-market price).
It is the latest piece of good business from the SDX team, led by Paul Welch, following on from the opportune capture of Circle Oil’s distressed assets – acquired via Circle’s administrator last year – and the new injection of funds is earmarked for well drilling to further accelerate the group’s growth.
#SDX CEO: Additional wells have potential to pay back very rapidly. Entering high impact period of SDX's development. #oilandgas #aim $SDX
— SDX Energy (@sdxenergy) September 6, 2017
Stockbroker SP Angel, in a note, said: “There is no doubt that SDX's management team completed a great deal for its shareholders when it acquired Circle's assets for the price they did.
“Make no bones about it, the bid was a competitive one set in the context of the Circle’s then distressed situation.
“That SDX was able to raise the cash it did, and has gone from strength to strength on what is a higher-grade portfolio than its legacy portfolio, is testament to the deal that was done.”
9:30am - Sports Direct shares boosted ahead of AGM
Sports Direct International Plc (LON:SPD) shares raced to a near 3% lead in Wednesday’s early deals with a statement ahead of today’s AGM highlighting that efforts to revamp stores is paying off, with the new format stores trading ahead of expectations.
The retailer also revealed it had acquired 100% of designer store chain Flannels.
By around 9:30, Sports Direct shares were up 10.6p or 2.76% changing hands at 394.8p.
Seemingly positive sentiment towards housebuilders was all spent yesterday (in the wake of Redrow’s results) because Barratt Developments Plc (LON:BDEV) shares were down 3.53% at 602p despite what brokers see as “another strong year” for Barratt.
Budget airline Ryanair Holdings Plc (LON:RYA) was also on the back foot, with its shares down almost 1% at 18.02p, as it announced a new tightening of carry-on baggage terms – passengers now only get one free carry on, not two, but, at the same time it is reducing fees on check-in bags down to €25 from €35 (for 20kg luggage).
Ryanair reckons the changes will cost it €50mln (per year) in reduced checked bag fees, albeit, the airline believes the lower check in prices may increase the overall number of bags it is paid to put in the hold.
Rival EasyJet Plc (LON:EZJ), meanwhile, reported traffic stats and started positively with a 1% gain on the open, only to retreat to a 1% loss at 1,145p by around 9:30am.
Proactive news headlines:
Synairgen plc (LON:SNG) has reported significant industry interest in its new idiopathic pulmonary fibrosis treatment ahead of the start of clinical trials. Richard Marsden, Synairgen’s chief executive, said: "Based on PXS-5382A's potential across a number of disease areas and the promising data seen to date, we have received significant interest from companies looking to license the programme for multiple indications.”
An upbeat interim statement from gene therapy specialist Silence Therapeutics PLC (LON:SLN) sent its share price jumping 8% to 200p.Ali Mortazavi, chief executive, repeated his view that 2017 year will be the year that RNAi becomes a widely accepted therapeutic platform.
Shares in LoopUp Group PLC (LON:LOOP) jumped at the opening bell on Wednesday after the remote meetings technology firm reported solid first-half results and said the strong performance has rolled over into second half. Revenues, profits and margins in the opening six months of 2017 were all well ahead of last year, driven by “continued strong sales and customer loyalty”.
Cell therapy specialist ReNeuron Group Plc(LON:RENE) told investors its therapeutic programmes are “progressing to plan”. In an update ahead of the company’s annual meeting it confirmed it is putting the finishing touches to data packages that will be submitted as part of its application to start a US phase III clinical trial using its CTX cells to treat stroke victims.
Faron Pharmaceuticals Ltd (LON:FARN) is headed into a crucial and potentially transformational period with recruitment to its phase III trial for its lead drug set for completion later this year. A positive readout for Traumakine, used to treat acute respiratory distress syndrome caused by pneumonia, would pave the way for its launch in Europe and the US.
SDX Energy Inc (LON:SDX, CVE:SDX) has revealed a new oversubscribed US$10mln funding, with new equity issued at Tuesday’s closing mid-market price, of 43.75p. The injection of capital is earmarked for the acceleration of the group’s exploration and appraisal of the South Disouq asset, where a well last year confirmed a new gas discovery, in additional to the development drilling programmes in Morocco.
Aminex plc (LON:AEX) has confirmed a major project milestone at the Ntorya gas project, in Tanzania, where it has now submitted a field development plan to the authorities. The oil and gas firm explained that this is a ‘key step’ towards securing a development licence and the commercialisation of the Ntorya gas discovery. Aminex owns 75% of Ntorya, alongside partner Solo Oil PLC (LON:SOLO) with the other 25%.