The junior market experienced a week with minimal activity. The AIM-All Share Index saw a slight increase, ending 4.5 points up at 702.12, translating to a gain of 0.66% and surpassing the main index’s performance.
Market movement was scant, but a strong opening on Wall Street on Thursday provided some upward momentum for London’s financial markets towards the end of the week.
The latest economic data from the UK on Friday did little to stir excitement, as the figures for the gross domestic product indicated only slight expansion.
According to the Office for National Statistics, the real GDP saw a 0.2% increase in September, a notch up from the 0.1% rise in August, which was adjusted down from an initially estimated 0.2%.
The FTSE 100 index, representing blue-chip stocks, responded negatively to these figures, with a sharp decline in early trading on Friday, concluding the week on a downward note.
Fusion Antibodies PLC (AIM: FAB) experienced a sharp decline of 25% on Friday following its announcement that the anticipated increase in investment for new drug discovery and development programs had not materialized.
The company reported that it continues to face difficult trading conditions, leading to revenues for this half-year falling short of market expectations, amounting to no less than £541,000.
Shares of advanced materials company Versarien plc took a significant hit, dropping nearly 50% over the week, despite raising £455,000 through a successful share placement.
Versarien’s CEO, Stephen Hodge, commented on the need for additional funds to progress the company’s recovery strategy, acknowledging the positive response from investors to the share placement.
In the realm of data and analytics, Merit Group saw its shares increase by one-third on Thursday, buoyed by the news of a pre-tax interim profit of £500,000, a notable improvement from a £300,000 loss in the previous year.
In the sector of heavy industries, Rainbow Rare Earths Ltd (LSE: RBW, OTC: RBWRF) enjoyed a 28% uplift in share value following the announcement that TechMet, a key metals investor supported by the US government, took an option on Rainbow’s Phalaborwa project in South Africa, with valuations ranging between $151 million and $333 million (£123 million and £272 million).
Anglo Asian Mining PLC (AIM: AAZ, OTC: AGXKF) saw its shares soar over 40% after it confirmed a deal with the Azerbaijan government, which will enable the reopening of the processing plant at its Gedabek gold and copper mine. The reopening comes after a pause in production due to an investigation into its tailings dam by the consultancy firm Micon.
Riverstone Energy Ltd (LSE: RSE) shares rose by 10% on the news that it is poised to divest its stake in the Canadian shale company Hammerhead, which is set to be acquired by Crescent Point Energy Corp (TSX: CPG) in a transaction valued at US$1.86 billion.
This week, OnTheMarket, which has been overshadowed by competitors such as Rightmove and Zoopla, released the formal scheme documents concerning its acquisition by CoStar, with the transaction being a cash offer of 110 pence per share.
This valuation is almost double the average share price observed in the three-month period before the announcement of the acquisition. However, potential activist investor Brett Stone was not convinced.
Stone argues that despite the premium, CoStar’s proposal grossly underestimates OnTheMarket’s value, pointing out that the £99 million offer only amounts to a 2.9x multiple of OnTheMarket’s revenue over the past year.
Previously, Stone had attempted and failed to secure a £50 million activist investment in OnTheMarket in July.
Stone has stated his intention to ensure that OnTheMarket and its stakeholders are more knowledgeable and prosperous, a sentiment he expressed during his activist efforts.
OnTheMarket has countered Stone’s criticism, asserting that CoStar’s acquisition proposal is favourable and unlikely to lead to substantially increased portal costs for UK estate agents.
The market seems to anticipate the completion of the deal, as evidenced by OnTheMarket’s stock price, which has surged by over 77% following the acquisition news on October 19.
Shares of Naked Wines plummeted by 35% after the company announced on Tuesday that CEO Nick Devlin had resigned effective immediately.
The announcement coincided with a mid-year trading update revealing a 20% drop in U.S. sales compared to the previous year, leading to a reduction in the company’s full-year sales forecast.
Rowan Gormley, the founder and current chairman who has temporarily taken on executive responsibilities, commended Devlin for his service.
Gormley praised Devlin’s leadership, under which Naked Wines saw a 50% revenue increase, and acknowledged his efforts in implementing significant changes and testing new customer initiatives that are currently underway. Gormley wished Devlin well in his future endeavours.
In related news, the junior market saw another abrupt departure when Argentex Group PLC‘s CFO Jo Stent resigned from her position on the board on Thursday, just two weeks after the departure of founding CEO Harry Adams.
On Friday, Argentex announced that it expects its full-year revenue and operating profit to fall short of current market predictions, which led to a 24% drop in its share price.
This week, eEnergy Group plc experienced a significant rise, leading the AIM market’s top performers, triggered by the announcement of a £1.75 million investment from electronics supplier Luceco PLC (LSE: LUCE).
As part of the investment deal, Luceco will be entitled to appoint a representative to the board of the net-zero energy services company.
Luceco expressed optimism about the investment, citing the ongoing shift towards sustainable energy technologies as a chance to broaden its market reach into emerging sectors. The company anticipates this will lead to enhanced collaboration with eEnergy.
The news was warmly received by the shareholders of eEnergy, resulting in a surge of over 50% in the company’s share price over the course of the week.
