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Serica Energy rises on regulatory green light, but PhotonStar LED Group shares fall sharply

A look at some of the big winners and losers in the UK equity market on Wednesday

oil rig
Serica this summer sought approval for its North Sea Columbus Development plan

3.20p: Serica wins regulatory OK for development plan 

Serica Energy PLC (LON:SQZ) rose 5.8% to 110.00p as the oil and gas explorer said the UK’s Oil and Gas Authority approved a field development plan for the North Sea Columbus Development.

The AIM-listed company sought approval for the plan in June. Serica said peak production is expected to be 7,800 gross barrels of oil equivalent per day. Serica operates the Columbus Development with a 50% interest.

Also in the green, shares of i3 Energy PLC (LON:I3E) marched up 29% to 53.48p after  the O&G explorer said it’s not planning an equity financing.

AIM-quoted i3 said it has sufficient cash resources whilst it conducts a joint venture farm-out process for the Liberator oil field and undertakes to upsize a development credit facility with UK-based lenders. Shares of i3 had fallen over the past month on market speculation that the company would embark on fundraising efforts.

READ: i3 Energy confirms it has no plans for an equity financing

But Wednesday’s decliners included PhotonStar LED Group PLC (LON:PSL), which shares sliding 69% to 0.04p as the company seeks to put its Photonstar LED subsidiary into liquidation.

PhotonStar said the subsidiary, which handles the legacy light-emitting diode (LED) fixed lighting side of the business, ceased trading as of Wednesday. The group’s directors believe the assets and the vast majority of the liabilities of PhotonStar LED are ring-fenced from the group's other operations.

READ: PhotonStar LED to put its fixed lighting subsidiary into administration

 

12.15p: DekelOil wins cashew-project contract 

DekelOil Public Limited (LON:DKL) shares added on 5.9% to 3.60p as the Côte d'Ivoire-based palm oil producer said its subsidiary won a €6.5 mln contract in Côte d'Ivoire.

In a statement, AIM-listed DekelOil said its Capro CI SA subsidiary signed a contract with Overseas Projects & Services Limited to construct a large-scale cashew-processing project at Tiebissou. The project will have an initial capacity to process at least 10,000 tonnes of raw cashew nut per year, but it can be scaled up to process about 30,000 tonnes each year.

Gainers also included Concepta PLC (LON:CPT) as shares popped up 6.2% to 3.93p as the company said it will soon launch its myLotus product in the UK.

AIM-quoted Concepta said its myLotus product range, which helps women monitor their fertility levels, will be launched at the Fertility Show in London taking place on November 3 and 4. The product received CE-mark certification from regulatators earlier this week, paving the way for UK sales.

READ: Concepta to launch myLotus in UK at Fertility Show

On the flipside, Cradle Arc PLC (LON:CRA) shares tumbled 18% to 0.98p after the metals explorer said it raised £396,000, before expenses, through the placing of new shares to help complete improvement of processing facilities at the Mowana mine.

Cradle Arc said the placing of 44,000,000 new ordinary shares at a price of 0.90p each was made with certain new and existing shareholders. Net proceeds of the placing will be used alongside funding from a US$2.0mln loan facility provided to Leboam Holdings, Cradle Arc’s 60% owned subsidiary.

READ: Cradle Arc raises £396,000 via placing

11.00am: FastJet shares plunge 

Fastjet PLC (LON:FJET) shares slid 29% to 1.65p as the struggling African budget airline said it’s still in funding talks with its major shareholders and creditors.

The AIM-quoted company said it will be able to operate beyond the end of October because of some improvement in trading and cash generation. Fastjet, which is majority-owned by easyJet PLC (LON:EZJ), is negotiating with key creditors to reduce its outstanding balances. As of October 24, fastJet had cash balances of US$ 3.4mln, of which US$2.7mln is restricted cash held inside Zimbabwe.

Also trading in the red, ULS Technology PLC (LON:ULS) slumped 20% to 88.00p following a trading update.

The AIM company, whose platforms put estate agents in touch with dozens of approved conveyancers, said market data indicates there was further slowing in the UK housing market in the autumn, which is likely to have some impact on the group’s second-half results. ULS said revenue during the first half of the financial year is expected to be up 3% from a year ago, to $15.8 mln, even as there was a fall in the number of transactions across the UK market.

At the same time, Oncimmune Holdings PLC (LON:ONC) shares tumbled 20% to 96.45p, with the early- stage cancer detection test developer posting an annual pretax loss that was wider than last year’s result.

AIM-quoted Oncimmune said its annual pretax loss was £6.34mln compared with £5.32mln a year ago. Administrative expenses rose to £4.76mln from £3.86mln in the year-ago period, but revenue increased to £240,000 from £215,000.

Defenx PLC (LON:DFX) shares climbed 13% to 790p in early morning trade on Wednesday after the cyber-security firm said it now has a platform to rebuild shareholder value and implement its strategic plan. 
 
The AIM-quoted company said it's planning for a model of Software-as-a-Service to smaller customers, and for direct sales to large corporates and the public sector, as the strategy reflects growing demand for cloud-based services. Defenx said it expects 2018 results to show significantly lower revenues than in 2017, but because of initiatives put in place, the board believes the business will become cashflow positive during 2019. Defenx's partner and largest shareholder, BV Tech, is committed to returning Defenx to profitability, said Defenx. 
 
Also landing in the winners' column, Sunrise Resources PLC (LON:SRES) shares climbed 15% to 0.19p as the metals explorer said it found more perlite at its NewPerl project in Nevada. 
 
AIM-listed Sunrise said it has now staked an additional 40 claims at NewPerl, which has more than trebled the size of the project claim area. The company has sent additional samples from the new discovery areas to a lab in Greece. 

READ: Sunrise Resources finds more perlite at NewPerl project in Nevada

But on the downside, GYG PLC (LON:GYG) dropped 35% to 43.04p following a revenue and profit warning from the superyachts services provider. 
 
GYG, which is AIM-listed, now expects to report revenue and profit for the year ending December 31, 2018 "significantly below current market expectations". It expects revenue to come in around €44.0 mln, resulting in an underlying earnings (EBITDA) loss of about €1.2 mln. GYG also said its board believes it is in the company's best interest not to pay a dividend in the current financial year. The board is aiming to pay a dividend "at the earliest appropriate opportunity."

Proactive news headlines:

Sunrise Resources PLC (LON:SRES) has discovered further extensive areas of perlite at its NewPerl pozzolan-perlite project in Nevada.

Europa Metals Limited (LON:EUZ) has hailed the results of the said Phase I drilling programme at its Toral project in Spain. The reverse circulation (RC) drilling programme performed at the eastern end of the Toral deposit successfully confirmed both the extension of the deposit and the continuity of the mineralised structure at the eastern margin of the resource.

Futura Medical PLC (LON:FUM) said it has dosed the first patient in its Phase III clinical study of MED2002, a gel used to treat erectile dysfunction. Headline data from the trial is expected next year.

hVIVO PLC (LON:HVO) said its vaccine for mosquito-borne diseases “warrants further development”. The company made the assertion following the release of partial data from a Phase I trial related to safety and humoral response (which relates to the drug’s potential to induce immunity).

Concepta PLC (LON:CPT) will launch its myLotus product in the UK at the Fertility Show in London, to be held on the 3rd and 4th of November.

Coinsilium Group Limited (NEX:COIN) has updated on the establishment of its private crypto investment fund, Flowstone Capital Limited (FCL).

Lighting group PhotonStar LED Group PLC (LON:PSL) is considering selling off or closing down its struggling light-emitting diode (LED) fixed lighting business.

Horizonte Minerals PLC (LON:HZM) (TSX:HZM) saw its shares bounce higher on Wednesday after the firm announced the appointment of Endeavour Financial, a leading financial advisor in the mining sector, to advise on the arrangement of the project financing for the Araguaia Ferronickel Project.

Chaarat Gold Holdings Limited (LON:CGH) has withdrawn its proposed offer to buy Centerra Gold, the owner of the Kumtor mine in Kyrgyzstan.

Cradle Arc PLC (LON:CRA) has raised £396,000, before expenses, via a conditional placing to help complete the rehabilitation and improvement of the current processing facilities at the Mowana copper mine in Botswana.

i3 Energy PLC (LON:I3E) has provided a financial and operational update in which it confirms that, contrary to rumours in the market, it is not planning an equity financing.

Metal Tiger PLC (LON:MTR) has increased its stake in Kalahari Metals Limited to 34% from 18% after exercising an option to do so at a cost of US$500,000 in cash.

Higher vanadium and coal prices again boosted mining royalty specialist Anglo Pacific Group PLC (LON:APF). Income rose 27% to £12.1mln in the three months to September for a nine-month total of £32.9mln (£28.9mln).

Alba Mineral Resources PLC (LON:ALBA) shares rose on Wednesday morning after the explorer identified “significant areas” of polymetallic mineralisation at its Inglefield project in Greenland.

Thor Mining PLC (LON:THR) has switched its efforts to financing its Molyhil tungsten project following the recent definitive feasibility study (DFS) upgrade.

European Metals Holdings Limited (LON:EMH, ASX:EMH) saw its shares rise in early trading Wednesday after it updated on its Cinovec project in the Czech Republic. The miner said in the third quarter, additional roast optimisation testwork had been completed and sustained improved recoveries meant lithium carbonate production was predicted to increase to 22,500 tonnes per annum (tpa) from 20,800 tpa previously.

WideCells Group PLC (LON:WDC) said that following the convertible bonds financing agreement entered into with the European High Growth Opportunities Securitization Fund, it has now received a third notice of exercise of its conversion rights from the investor for the principal amount of £5,000.00, resulting in the issue to the Investor of 2,000,000 new ordinary shares in the company.

appScatter Group PLC (LON:APPS), the intelligent app management platform, has announced the appointment of finnCap Ltd as its nominated adviser and broker with immediate effect.

Motif Bio PLC (LON:MTFB) (NASDAQ:MTFB), a clinical-stage biopharmaceutical company specialising in developing novel antibiotics, has said it will participate in the Jefferies London Healthcare Conference on 14-15 November 2018, hosting one-on-one meetings.

Bushveld Minerals Limited (LON:BMN) has said it will host an Energy Storage 101 interactive webinar for the investment and media community on Tuesday, 13 November 2018 at 12:00 GMT. The group said investors can pre-register, access the webinar and submit questions on the following website link: http://webcasting.brrmedia.co.uk/broadcast/5bd2eae5b01efb6b20c2f9eb

 

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