IamFire (AQUIS:FIRE) announced that it extended the Discounted Capital Bond with Hawk Investment Holdings Limited until 25 September 2023. As announced on 27 August 2020, Fire entered into the DCB with the Bondholder pursuant to the terms and conditions of the DCB agreement.
The DCB agreement was for a period of 36 months which has now expired and the parties have agreed to extend the terms of the DCB agreement for a further period ending on 25 September 2023.
Comment: The market continues to miss FIRE’s holding in the growing social commerce group WeShop. In June WeShop’s fundraise gave it an implied valuation of approximately £130m.
Bidstack Group (BIDS) an-game advertising and video game monetisation platform, is entering a partnership with Venatus, a leading publisher monetisation and advertising platform for gaming & entertainment. They do seem well suited and Venatus will have exclusive access to Bidstack’s extensive video game advertising inventory across six key global markets. Since 2017, Bidstack has built an inventory of more than 400 high-quality video games across mobile and PC, with a total monthly reach of 100 million people. Bids lost £7.7m for the 12 months to June 2023 on £5.2m revenue but had £8.7m cash after a funding of £10m in October 2022 at 0.5p
Comment: No financial terms were given for the partnership but the commercially logical seems valid and should trigger interest.
Insig AI (INSG), the data science and machine learning group, has been notified that, Richard Bernstein, Executive Chairman of the Company, has purchased 100,000 ordinary shares at a price of 18p. Following the Purchase, Mr Bernstein’s shareholding stands at 15.39% of Insig AI’s total voting rights.
Comment: Bernstein is one of the few big investors apart from say Andrew Austin who have continued to flourish even in the current bear market. We see him leading from the front in terms of buying more shares in INSG.
Premier African Minerals (PREM) announce a conditional subscription for new ordinary shares by Canmax Technologies Co., Ltd to raise £5 million before expenses at an issue price of 0.35 pence per new ordinary share for the ongoing Zulu Lithium and Tantalum Project Pilot Optimisation where the Company is targeting revenue generating production by November 2023.
Comment: PREM seems to be taking over from Predator in delivering a new fundraise with every RNS at the moment. To do this in current stock market conditions is quite an achievement, and it is to be hoped that the company is close to having enough cash to start production in November. On this basis near to the fundraise level at 0.35p could be a lasting base for the shares.
Contango Holdings (CGO), the producing London listed natural resource development company, is announced the receipt of final approvals relating to the export of coal from the Muchesu Project in Zimbabwe from the Minerals Marketing Corporation of Zimbabwe. The company said it has now made its inaugural sale to TransOre International FZE, pursuant to its existing offtake arrangement.
Comment: CGO may be producing, but the market has thus far given it the rating of a company which is not, something which seems unfair. Ideally June support below 4p is the worst we shall see going forward.
Eco (Atlantic) Oil & Gas (ECO), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce its results for the three months ended 30 June 2023. The company said Q1 results serve as an important opportunity to remind investors of the strategic work which is happening across all areas of the portfolio. Recently announced deals in both South Africa and Guyana are examples of the team’s efforts to position the portfolio to continue creating high-impact catalysts for investors. I am excited for the future and look forward to progressing our work programmes across our entire Atlantic Margin portfolio.
Comment: The market continues to ignore the way that Eco is debt free and has a healthy cash position. On this basis one would assume that July’s low near 13p will be the low for the rest of the year and beyond.
Predator Oil & Gas Holdings (PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, announced an operations update. The company said the Sandjet rigless testing programme is on track and scheduled to be executed and completed in September. In parallel with the testing programme agreements for the sale of gas and sourcing and scheduling for delivery of long lead items required for the CNG development and an Environmental Impact Assessment are being progressed. Company strategy is to develop a revenue-generating business opportunity capable of being monetised under the right market conditions.
Comment: It is still quite a novelty to see a PRD RNS without a fundraise in it, and one that is just focused on operational progress. The highlights are the promise of a revenue generating business and the prospect of further opportunities in Trinidad.
Challenger Energy (CEG) updated regarding the establishment of a £3.3 million convertible loan note funding facility, to support business development, in particular continuing with accelerated technical work programs in Uruguay, for both the AREA OFF-1 block and the newly awarded AREA OFF-3 block; and progress business development opportunities in Trinidad. The company said in the last year, across the broader Challenger Energy business, it has completed value-enhancing technical work, improved production operations, high-graded its portfolio, secured new assets, and ensured a range of options are available to deliver additional funds into the business.
Comment: It would appear that the CLN will give CEG another throw of the dice as far as its portfolio, and the company appears proportionately bullish regarding how it will do with the funds.
Falcon Oil & Gas (FOG) announced the Shenandoah South 1H pilot hole in exploration permit 117 has reached a total vertical depth of 3,300 metres, intersecting approximately 90 metres of the Amungee Member B-shale with strong dry gas shows. The company said reaching TVD of 3,300 metres on the SS1H well in just 21.5 days is a great first step in the current year work programme. The preliminary results to date are all very promising as it commences the horizontal section before moving to the stimulation programme in Q4 2023.
Comment: FOG shares will require a few decent RNSs like today’s in order to undo the June sell off in the stock, which leaves it near year lows. Ideally, the newsflow will start to speed up from now.
Firering (FRG), an exploration and development company focusing on strategic minerals, to announce the successful commissioning of the crushing system to produce aggregates and the finalisation of the design work for the modification and commissioning of the lime kilns at the Zambian Lime plant owned by Limeco Resources Limited. Firering has an option to acquire up to 28.33% (RNS: 17 August 2023) of Limeco, which is expected to be profitable and delivering cashflow within 12-24 months.
Comment: Shares of FRG have managed to recover from July, quite an achievement given what a dull summer it has been for small caps. One would expect further recovery in FRG as the newsflow ramps up again over the autumn.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
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