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Simigon rockets on news of merger deal with Maxify ahead of planned Nasdaq IPO

Last updated: 13:43 14 Jan 2022 GMT, First published: 08:57 14 Jan 2022 GMT

Minds + Machines Group Ltd -

Simigon (AIM:SIM) has rocketed over 100% higher to 9.33p, its highest since 2019, after announcing that it has agreed to merge with Power Breezer Sub Ltd and Maxify Solutions Inc.

The "global leader" in modelling, simulation & training solutions, said that the deal attributes a consideration to Simigon (AIM:SIM) shareholders expected to be $0.165 per share, valuing the company at US$8.5mln.

Assuming shareholders approve the deal, it is proposed that the company will cancel its admission to trading on AIM of its shares, as otherwise SimiGon's shareholders then holding shares in Maxify, which will be a private company with no liquidity in its shares.

Simigon said it is Maxify's intention "to provide shareholders liquidity by consummating an initial public offering and listing of its shares on NASDAQ as soon as practicable following the merger".

Ami Vizer, SimiGon's chief executive and executive chairman, said: "This merger is an achievement for the company and its shareholders. The merger presents a compelling opportunity to achieve superior shareholder value and liquidity than SimiGon currently believes is possible as an independent company listed on AIM."

He said the company's software would gain "significant market potential that far exceeds our current target markets", with Maxify's adoption of SimiGon technologies leading "to the fully maximized value and capabilities of our software for the benefit of the company and its shareholders".

11.45am: Bonhill rows back

Shares in Bonhill Group PLC (LSE:BONH) have tumbled after the corporate events and business information tiddler said its revenues and profits would be weaker than previously expected. 

Just weeks after highlighting weaker US digital sales in 2021 compared with 2020 that led to a downgrade of guidance for the calendar year to £16.5mln of revenue and £0.8m of underlying earnings (EBITDA), the group now says revenue will in fact be nearer be £16.4mln and EBITDA down at £0.2mln.

On the upside, year-end cash was £1.4mln rather than the £1mln expected in November, while the group also boasted total annual costs of were cut by £3.9mln.

Bonhill said there had been a further impact from the Omicron variant, "which resulted in unexpected, last-minute reductions in margin for its final events of the year in both the UK and US, as well as reduced bookings in the final part of the year compared to the prior year".

Earnings were hit by unexpected reductions in customer spending as their budgets moved to 2022, and order cancellations.

Looking to 2022, a new management team in the US has "started to make progress in changing the US digital model and this transition is expected to continue for the first six months of 2022", with a "strong start" reported for 2022 with bookings £1mln ahead of a year ago.

9.05am: Quiz answers some questions 

Quiz PLC (AIM:QUIZ) shares perked up on Friday, rising 7% to 16.85p, as the embattled fashion chain reported a 20% improvement in sales last month.

Revenue was up 64% for the group's UK stores and concessions, boosted in comparison with a prior period in 2020 when many concessions were closed.

Online sales fell 26% due to the previous ending of third-party relationships, though direct sales from its website were said to be "consistent with the previous year", while international sales grew 11%.

Bolstered by a net cash balance of £6mln, the group was confident on the outlook, encouraged by the positive performance in December, and saying "in the absence of any further substantial disruption from COVID-19, this demand will support continued profitable revenue growth and deliver a full year to 31 March 2022 performance in line with Board expectations".

Elsewhere, Minds + Machines Group Ltd (AIM:MMX, OTC:TLVLF) shares are enjoying a last hurrah, rising 15% to 9.5p after the company said it had decided to return its £19mln to shareholders.

The former top-level internet domain specialist, which sold its business to GoDaddy (NYSE:GDDY) last year, said it will return the cash via a tender offer at 10.4p per share. 

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