RNS Hotlist with Zak Mir: DRUM, ROCK, POLX, PAT, AEG, SCLP, MKA, BIDS, AVCT, IOG & EST via Vox Markets

Drumz (DRUM) announced that Acuity Risk Management Limited, an investee company in which Drumz has a 25% shareholding has won contracts with two significant new customers to use its software platform, STREAM® Integrated Risk Manager.

Author @ZaksTradersCafe

The first contract win is with a North American bank and the second contract is with a cybersecurity solutions and services, headquartered in Europe with operations in Europe, North and South America which is adopting STREAM® for cyber security and IT risk management. The aggregate initial order value for these two contracts is c.£300,000 over three years, equivalent to £100,000 per annum.

Comment: While Drumz has already had its fans among the small cap trading cognoscenti, the latest announcement validates its software platform, both financially, and geographically, especially in the key North American market.

Rockfire Resources (ROCK), the base metal, gold, and critical mineral exploration company, updated the market of recent exploration activity at the Company’s 100%-owned Molaoi zinc deposit in Greece. The company said it was pleased with the progress of its geotechnical drilling at Molaoi, and particularly thrilled with the quantity of sulphides being encountered. Multiple lodes are still being encountered in each hole, which bodes well for bringing these multiple lodes into our next resource upgrade. The market will continue to be informed of drilling progress and assay results as they are received.

Comment: Rockfire continues to re-habilitate itself via Molaoi in general and the “multiple lodes” identified and announced today. One would expect the recent share price re-rate to accelerate as the drilling progress unfolds.

Polarean Imaging (POLX), the medical imaging technology company, announced that following the approval by the FDA for its drug device combination product, XENOVIEW, it intends to pursue a dual strategy of using its current cash resources to maximize commercial sales of XENOVIEW, whilst also pursuing collaborations with pharmaceutical companies, magnetic resonance imaging companies, Contract Research Organizations and other strategic partners to fund the future commercial applications of the company’s technology.

Comment: It is and has been quite an achievement for the market to keep a lid on shares of POLX, despite all the FDA action the company has achieved in the recent past. This is in contrast of course to the negative reaction of approval delay in the autumn.

Panthera Resources (PAT), with assets in West Africa and India, advised that its joint venture partner DFR Gold Inc has commenced a 10,000 metre drilling program on the Cascades Project in Burkina Faso, West Africa. The Drilling Programme will be in two phases. The first 5,000 metres target extensions to the current resources and several new targets.

Comment: It is to be hoped that after a persistent share price decline over the past year for PAT, today’s news may inspire the market that some positive news is finally in the offing.

Active Energy (AEG), the biomass based renewable energy business, announced it has been awarded multiple patents for turning forest waste into clean energy. In the US, the United States Patent and Trademark Office has issued two Patents, No. 10,647,935 and No. 10,858,607, and in Canada, the Canadian Patent Office has issued Patent No. 2,999,447, for treating and preparing biomass to be used as fuel. The company said it was delighted to have received three further Patents for its CoalSwitch® technology. The Patents add further protection to its pellet, which it believes is a revolutionary product in the biomass market.

Comment: Once again, this is a company where the market’s somewhat churlish reaction to its newsflow perhaps needs to change. The shares are near major support, in the 4p zone.

Scancell Holdings (SCLP), the developer of novel immunotherapies for the treatment of cancer and infectious disease, announced preliminary immunogenicity data from its Phase 1 COVIDITY clinical trial which was conducted at the University of Cape Town Lung Institute in South Africa. The objectives of the trial were to assess the safety and immunogenicity of two vaccine candidates. The company said these results are highly encouraging. Not only do they provide clinical proof of concept for the COVIDITY COVID-19 vaccine programme itself, more broadly they also provide important further validation and learnings for Scancell’s ImmunoBody® and AvidiMab® platforms. The success of a human trial demonstrating that an AvidiMab® modified DNA vaccine, delivered via a needle free injection, can induce both T cell and antibody responses, with no safety concerns, is a pivotal proof point for Scancell’s clinical strategy.

Comment: This announcement is something of a throwback to the pandemic era, when companies were in a frenzy either to find the magic bullet for Covid, or applying potential treatments for Covid, to other pathologies. The second part of the strategy may now be the one to go with.

Mkango Resources (MKA) said it has conditionally raised gross proceeds of £3.5 million (C$5.7 million) through its joint brokers SP Angel Corporate Finance LLP and Alternative Resource Capital, together with Merlin Partners LLP, with proceeds focused on catalysing near term milestones for the company’s mining and recycling assets.

Comment: There are two main scenarios when a stock price improves, and Mkango illustrates the second one, when there is a rise ahead of a fund raising. We look forward to those milestones being achieved.

Bidstack Group (BIDS), the native in-game activation platform, is publishing a trading and operational update. Following a preliminary hearing in the District Court in Amsterdam, Azerion has provided Bidstack security in respect of the initial part of Bidstack’s claims. The company said it has been advised that a full hearing in Amsterdam on the merits of its case and wider claims against Azerion will likely take place in late Q3 2023. Given Azerion’s purported termination of the agreement with Bidstack, the company does not expect to recognise any amounts ultimately paid by Azerion in respect of its FY23 and FY24 obligations as revenue. In addition, unaudited revenue for FY22 up +103% to c.£5.3m (FY21: £2.6m). Unaudited gross margin for FY22 at c.70% (FY21: 36%). Unaudited cash balance at 31 December 2022 up 21% at £8.7m (31 December 2021: £7.1m).

Comment: It will be interesting to see what the company’s swivel-eyed critics make of today’s announcement, particularly the massive improvements in revenue and margin.

Avacta Group (AVCT), a life sciences company, announced it has received a Notice of Conversion in respect of £2.85 million of the £55.00 million unsecured convertible bond. As a result of the conversion, Avacta will issue and allot 2,400,000 new ordinary shares of 10 pence each in the Company. After settlement of the conversion, the principal remaining under the convertible bond will be reduced by £2.85 million to £49.40 million.

Comment: Hopefully, conversion notices like this will not impede the progress of the latest share price breakout for Avacta. Less that £50m to go on the principle.

IOG (IOG) provided updated guidance on drilling plans for 2023. The company said that in light of the Southwark A2 results, it is prudent to pause well activities on Southwark. With this in mind, the JV has elected to drill the Blythe H2 infill well ahead of Southwark A1. As a conventionally completed well, H2 has a lower risk profile, lower cost and can be brought into production quicker than A1. H2 can materially increase the production rate which would underpin cashflow this year. As a new management team, it has assembled a multi-disciplinary taskforce to conduct a thorough root and branch review of A2, from planning and design through to execution.

Comment: If IOG can walk the walk as well as it can talk the talk, with its “multi-disciplinary taskforce” channelling the Falklands War, recent bottom fishers in the stock may be onto something.

East Star Resources (EST), the Kazakhstan-focused mineral explorer, provided results from diamond drilling on the Apmintas Licence of the Chu-Ili Orogenic Gold Belt in Kazakhstan. Results show anomalous gold mineralisation in all three target areas with potential economic grades in the Eshkilitau II and Southern Shabdar targets. The company said the results of the drilling demonstrate gold bearing systems in all three target areas. Eshkilitau II shows potential for an extensive mineralised system with a strike of more than 1 km along a fault zone. High-grade intersections at Southern Shabdar (32.15 g/t Au) and Eshkilitau (14.01 g/t Au) demonstrate the existence of high-grade zones within the mineralised systems while gold occurrences mapped over 10 km of the Eshkilitau trend demonstrate the exploration upside within the region.

Comment: This may be the announcement that proves to the market that EST really is onto a significant and varied set of assets in Kazakhstan. At least, with the share price still at modest levels, those coming to the party now would appear well poised.

Author @ZaksTradersCafe

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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