This post was written by Zak Mir, a Technical Analyst, Events Host, Presenter, CEO Interviewer and established Market Commentator.
Avacta Group (AVCT), a life sciences company, announced that the first patient has been dosed in the fifth cohort of the first-in-human phase I trial (ALS-6000-101) of AVA6000. This follows the approval of an amended clinical trial protocol by the Medical and Healthcare Products Regulatory Agency (MHRA) to allow for higher levels of dosing. The company said it is very much encouraged by the positive safety and tolerability data emerging from the dose escalation phase 1a study of AVA6000. Following the recommendation from the SDMC, and approval by the MHRA, we are pleased to commence dosing in the fifth patient cohort of this trial.
Comment: While the price action of Avacta continues to be frustrating to say the least, we do know from the past year that anywhere near 100p represents a support zone. The progress reported today suggests that Avacta’s many fans remain on track.
Drumz (DRUM), the investing company focused on building value in technology, announced that it has conditionally agreed terms to acquire Acuity Risk Management Limited (ARM), a supplier of Governance, Risk, Compliance software and services. Drumz currently owns 25 per cent. of the issued share capital of ARM and it is proposing to acquire the balance of the issued and to be issued share capital. DRUM said it was delighted to announce Drumz’s acquisition of Acuity Risk Management Ltd (Acuity). Over the past two and a half years it worked closely with the Acuity team. Since it invested the business has taken greater control of its activities particularly sales and marketing resulting in consistent growth and improvement in the Key Performance Indicators. It believes this is a very exciting time and stage in the company’s development as it expands its activities in North America, the world’s largest market for Governance, Risk and Compliance (GRC). GRC is a large market – $14bn in 2022 rising to $27bn in 2027.
Comment: Drumz recent land grab focusing on fast growing niche markets in the U.S. continues, and there is an added kicker with ARM given that the GRC market is set to almost double over the next few years. Once the market starts to appreciate the merits of the DRUM strategy we should see the shares revisit the best levels of last year through 1p, well before the end of this year.
Pennpetro Energy (PPP), an independent oil and gas company focusing on production and development in Gonzales County, Texas, USA, announced that drilling operations have progressed smoothly on the Whistling Straits well with the drill bit now being at a vertical target depth of -7,303 feet TVDSS and has now commenced drilling the planned 4,800 feet lateral within the Austin Chalk target interval. The company said it was very pleased with the progress made this week with drilling our first development well in the Peach Creek Oil Field in partnership with Millennium. It is now drilling fresh ground in the Austin Chalk horizontal side-track heading towards the primary oil target. It has high expectations for the well and looks forward to updating shareholders in the coming days as it progresses towards reaching total depth and completion.
Comment: The rebooted PPP hits the ground running with today’s drilling news regarding its Texas Oil and Gas JV announced just last month, something which should fire up a share price turnaround imminently given the modest £2.7m market cap currently.
Marula Mining (MARU), an African focused mining and development company, provided an update on recent exploration activities at the Bagamoyo Graphite Project, in which the company has a 73% interest, located in the Bagamoyo District in the Pwanai Region of Tanzania. The company said Phase 1 Program exploration activities have already successfully identified two major areas of high-grade and large flake graphite mineralisation. Both its partners, KGIP and the management team at Marula are excited by the results and commencing the next phase of work at Bagamoyo. The next phase of work will incorporate all of the recommendations from Geofields and focus on defining the resources at these two prospects, as well as expanding the project scope to include a number of additional granted mining licenses that KGIP are looking to incorporate into the Bagamoyo Project.
Comment: The stellar run for Marula shares continues to be underpinned by the newsflow from the company, which if anything, is accelerating. The prospect of additional mining licenses only serves to add extra sizzle to the latest news.
Tissue Regenix (TRX), the regenerative medical device company, announced that on 4 April 2023, Daniel Lee, Chief Executive Officer, and David Cocke, Chief Financial Officer each purchased 1,428,570 of the company’s shares.
Comment: Given how little director buying we are seeing these days, the intervention by TRX directors today is significant. They are effectively buying a dip in the recovery the stock has managed over the past year.
Sovereign Metals (SVML), announced that Kasiya Indicated Resource now stands at 1.2 Billion tonnes at 1.0% rutile and 1.5% graphite. The updated Mineral Resource Estimate (MRE) moves over 0.5 Billion tonnes from Inferred to Indicated – an increase of 81% to the Indicated category. Over 66% of total MRE now in the Indicated category. The Kasiya’s global MRE is over 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite. Kasiya remains the world’s largest natural rutile deposit and second largest flake graphite deposit. The company said the increase of over 80% in the Indicated component at a one-for-one conversion from Inferred is an outstanding outcome. The conversion rate confirms the very consistent geological and grade continuity and is testament to the high-quality and robustness of the deposit.
Comment: It is interesting that thus far SVML has been proving up more and more resource without an equivalent or appropriate share price reaction. Today’s news should be the start of such a re-rate process, given the quantum of the upgrade to the MRE.
Futura Medical (FUM), a pharmaceutical company, focused on sexual health and pain, announced its audited results for the year ended 31 December 2022. The company said 2022 has been a year of significant progress as we have moved steadily towards the initial launch of Eroxon® which commenced in March 2023. It is proud and excited for Eroxon® to have now commenced launch for what it believes will become the world’s first fast-acting clinically proven topical gel treatment for ED available without the need of a doctor’s prescription. It continues to focus on achieving US regulatory approval in the near term.
Comment: A point which perhaps the company could highlight is the implication that a topical treatment, without needing a prescription, should receive regulatory approval that much more quickly than drugs administered internally.
GoldStone Resources (GRL) provided a comprehensive update on recent diamond drilling at the former Akrokeri Underground Mine and the soil and auger geochemical programmes within the Akrokeri and Homase prospecting licences. The company said further to the release of initial drilling results on 27 September 2022, it has received the assay results of the diamond drilling programme at AUM, which confirmed the company’s belief that the Akrokeri mineralization occupies a significant structural corridor that extends to both the south and north of the historical underground mine. The company said these results on Akrokeri spur it forward to discovering further deposits in order to secure a long-term pipeline of resources.
Comment: It could be the case that the latest update from GRL starts to turn around the negative trend in the shares over recent months. This is especially the case if line of sight is provided on a “long term pipeline of resources.”
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.
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