The news that digital payments giant Square is to pay – some would say overpay – US$20bn for “buy now pay later” platform operator Afterpay, lit a fire under the share price of ThinkSmart Limited (LSE:TSL), the UK digital payments platform business.
ThinkSmart shares soared 55% this week thanks to a slightly complicated relationship with Afterpay.
ThinkSmart has an agreement with Afterpay relating to the sale of Thinksmart’s remaining holding in Clearpay Finance that would be triggered by a change of control of Afterpay.
The acquisition of Afterpay is expected to complete in the first quarter of next year after which Afterpay will have the right to exercise its call option to purchase the remaining shares in Clearpay from ThinkSmart at any time.
Furthermore, if the shares of Afterpay are no longer quoted on a recognised stock exchange at the time of the exercise then Afterpay may only elect to pay the exercise price in cash.
So, long story short: ThinkSmart looks to be in line for a cash infusion from Afterpay.
Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, FRA:ZMK, OTC:MKNGF) was “running up that hill”, rising 48% after it said it raising £5.2mln and will acquire the remainder of the Songwe Hill rare earths project that it doesn’t already own.
The company is also acquiring all of the Maginito business, which is a rare earth recycling business already part-owned by Mkango, as it seeks to take control of and accelerate an integrated mine, refine, recycle strategy.
It is paying £13mln for the acquisitions, paid in paper to partner Talaxis Limited (part of the Noble Group), with the equity placing set to fund the forward plan, which will include the completion of feasibility in early 2022.
Sector peer Cora Gold Limited was also in demand this week, rising 30% on the back of the latest drilling results from its Sanankoro gold project in Southern Mali.
The company said the results to date have been extremely encouraging with good widths and high-grade results in generally shallow oxide ore.
Live events agency Aeorema Communications (AIM:AEO) PLC was up 21% at 34.5p, after a trading update.
The group, which has adapted to the pandemic by switching to the provision of consultancy services and meeting the demand for virtual and hybrid events, said its gross margin improved in the first half of 2021.
The outlook for the start of the new financial year is very strong, Aeorema said, with revenues for the second half of 2021 anticipated to be greater than any previous half-year period on record.
Another company on the comeback trail is Seeing Machines Ltd (AIM:SEE, OTC:SEEMF, FRA:M2Z), which said it expects its automotive royalty revenues to “increase sharply” over the next two to three years as production of vehicles containing its driver monitoring system technology ramps up.
CyanConnode Holdings PLC (AIM:CYAN) shares were on a charge after the company announced a contract win with a new Indian customer.
The specialist in narrowband radio frequency smart mesh networks – that’s smart meters to thee and me – said Schneider Electric has commissioned it to deploy smart meters in Northern India.
The company also declared full-year results in which it revealed sharply reduced losses. Adjusted loss before interest, tax, depreciation and amortisation (LBITDA) in the year to the end of March narrowed to £1.9mln from a loss of £4.9mln in the 15 months to the end of March 2020.
Catenae Innovation PLC (AIM:CTEA, FRA:NZS0) said it has signed a collaboration agreement with material science and medical innovations specialist ProMake Ltd to become the exclusive provider of data management services.
Under the deal, Catenae said it will provide its services to ProMake to fulfil its position on the Public Health England National Microbiology Framework, which is designed to support the newly formed UK Health Security Agency and the government's effort to provide a broad range of medical testing and diagnostic services for people in the UK.
Shares in Catenae were up 19%.