Metals One (MET1), which is advancing strategic minerals projects in Finland and Norway, announced that it has entered into a CLN and, conditionally, an equity fundraise pursuant to a warrant instrument to raise up to £5.0 million in gross proceeds in aggregate, net £3.0 million after associated costs, with a syndicate of investors in two stages. The Company also intends to conduct a retail offer to existing shareholders for up to a further £100,000. MET1 also announced the results of PEA for Finland – Black Schist Project.
Comment: Given the lay of the land for small cap London explorers, today’s news from MET1 is as brave as it is necessary for it to get the flagship Black Schist Project over the line. This should finally mark a fundamental inflection point for the company.
Ondo Insurtech (ONDO), a company in claims prevention technology for home insurers, announced an agreement with Northumbrian Water Limited to help drive water efficiency within their area in the North East of England. ONDO said it was seeing increasing interest from water companies who have seen the positive impact LeakBot can have on reducing leaks and water wastage within a customer’s home. We have a proposition which could scale quickly and really do something positive for both households and the environment too.
Comment: It was guessed only days ago that ONDO was due a deal announcement, and here it is right on cue. Sector interest in ONDO’s offering remains encouraging.
Ondine Biomedical (OBI), a Canadian life sciences company pioneering light-activated antimicrobial treatments, announced that Margaret Shaw, Non-executive Director, has bought 30,000 shares in the Company at a price of 12 pence per Common Share on 29 January 2025. Following this transaction, Margaret Shaw holds 243,853 Common Shares representing 0.0552% of the issued share capital of the Company.
Comment: Shares of OBI remain near one year highs after recent significant funding news, something which provides a solid basis for today’s director buying, in the wake of recent gains.
Prospex Energy (PXEN), the AIM quoted investment company focused on European gas and power projects, provided an update from the Selva Malvezzi production concession in Italy. Gross revenue for the quarter of €3.38 million (Q4‑2023: €1.77 million), with €1.25 million net to Prospex (Q4‑2023: €656,122), a 23% increase on the previous quarter Q3‑2024 (€2.76 million with €1,020 net to Prospex) and 91% increase on Q4‑2023.
Comment: PXEN continues to tick along nicely on an operational basis, something which at long last is being reflected in the share price performance. Indeed, more than enough has been achieved for the stock to be trading on the right side of 10p.
Celadon Pharmaceuticals (CEL), a UK-based pharmaceutical company focused on the development, production and sale of breakthrough cannabis-based medicines, updated on its financial position. The Company announced on 2 January 2025 that it had received £897k from its £1m draw down request, under its Committed Credit Facility. The Company is therefore due a further £103k. Following correspondence with the Committed Credit Facility provider the Company now expects this payment during February 2025. The Company has sufficient working capital up to March 2025.
Comment: While the regular updates regarding the company’s cash position are most welcome, the vibe remains “one day at a time” which is of course far from ideal.
Reabold Resources (RBD), the investing company focussed on developing strategic gas projects for European energy security, is pleased to announce that, further to its announcement on 12 December 2024, Reabold has completed its acquisition of Rathlin Energy (UK) Limited shares from Connaught Oil & Gas Ltd for a total cash consideration of £700,000. This increases Reabold’s equity interest in Rathlin to approximately 79.8%.
Comment: The volatility in RBD shares has ground to a halt in such a severe way that it is difficult to glean the market reaction to any news the company releases. Fans here are most likely still reassured by RBD’s cash position.
Fusion Antibodies (FAB), specialists in pre-clinical antibody discovery, provided an update on the OptiMAL® validation project being performed under the collaboration agreement with the National Cancer Institute. FAB said we are excited by the prospect of analysing the antibodies from these OptiMAL® cells selected by Dr. Mitchell Ho’s group at the NCI. The cells have shown positive binding activity to their target of interest and Fusion will now work on the validation of the antibody binding.
Comment: Although one would guess that most of the punters in the stock are not one hundred percent au fait with the science behind OptiMAL®, the turnaround in the stock since the autumn has had legs and appears to be set to continue in the same vein.
Tribal (TRB), a provider of software and services to the international education market, is pleased to provide an update on trading for the year ended 31 December 2024. Tribal expects to deliver a positive trading performance in FY24 with adjusted EBITDA substantially ahead and revenue ahead of current market expectations. A strong performance by the software-led Student Information Systems has offset a softening in markets for the Group’s education consultancy business, Etio.
Comment: TRB shares have been on the back foot since the summer, something which should be turned around in the wake of today’s market beating update. This of course underlines the way that the London market enjoys looking on the negative side as far as small caps are concerned unless proven otherwise.
Smiths Group (SMIN) announced a number of strategic actions to unlock significant value and enhance returns to shareholders: “We start from a position of strength and as we execute this strategy, we will become a more focused business with significant potential for future growth and value creation. Focusing on our world-class John Crane and Flex-Tek businesses and carefully managing the separation of Smiths Interconnect and Smiths Detection, we will deliver significant value for all stakeholders.
Comment: Shares of SMIN have already risen sharply since November, and followed through on confirmation of the break up plans. If only it was as easy for other UK listed companies to release value and improve their rating.
WeCap (AQSE: WCAP) announced unaudited results for the period of 1 May 2024 to 31 October 2024. WeShop said its filing of SEC Form 1 and its proposed listing on a recognised stock exchange is a very significant event and we congratulate the WeShop team on achieving this major milestone. The Directors believe that a successful listing of WeShop would represent a transformational value event for WeCap.
Comment: The proposed listed for WCAP is clearly the main current driver for the stock, along with the US expansion, and hitting the £100m Gross Merchandise Sales in the UK.
Alkemy Capital Investments (ALK), the 100% owner of Tees Valley Lithium, announced that an agreement has been signed with Veolia, a world leader in water technologies and circular economy. This collaboration aims to support the development of TVL’s first lithium hydroxide refinery train at Teesside, UK.
Comment: With shares of ALK already rising strongly of late on funding hopes, the latest tie up with Veolia should strength such hopes, as well as providing the obvious validation to the company given the credibility of the blue chip counterparty.
Blencowe Resources (BRES), the natural resources company focused on the development of the Orom-Cross Graphite Project in Uganda, announced its audited financial results for the year ended 30 September 2024 and its notice of AGM. BRES said this has been another busy year and the DFS continues to keep the management team occupied. Despite many challenges in the macro-market Blencowe has managed to keep the project moving forward and hopes to complete the DFS around mid-2025.
Comment: Ideally, BRES can be seen to have put the bulk of its challenges, both operationally and with regard to funding behind it, something which would allow the shares to rebound from current modest levels near the low end of the range.
Lift Global Ventures (AQSE:LFT), an investment company focused on financial media, technology and the energy sector, provides an update on its investment portfolio company, Trans-Africa Energy Limited. TAE is in advanced discussions with a Southern African state investor in relation to an investment into TAE. The Investor is looking to invest in oil and gas infrastructure and has undertaken extensive due diligence in relation to the TAE gas pipeline projects. In support of TAE’s efforts to finalise the investment the Company has agreed to extend the Redemption Date from 31 January 2025 to 30 April 2025.
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.
