Share Talk Weekly Small Cap Movers & Shakers, Saturday 3rd June 2023

Looking at the broader small-cap stock market, the AIM All-Share index dropped 0.55% to 789 points over the trading week, performing slightly worse than its FTSE 100 benchmark, which remained stable.

The healthcare sector took a hit, with Oncimmune‘s shares falling 45% to 21.2p due to a corporate reorganisation aimed at focusing on its ImmunoINSIGHTS business. This restructure should improve its balance sheet, with about £6.7 million in cash reserves, which could potentially lead to a bounce back in the future.

The week’s biggest losers were largely health and wellness companies, with Advanced Oncotherapy, Oxford Biodynamics, Deltex Medical, and Provexis seeing 17%-23% drops in their share prices.

However, the natural resources sector also experienced the ‘risk off’ sentiment among investors, with any negative news triggering massive sell-offs. Companies like Capital Metals, Enwell Energy, Empyrean Energy, and Kefi Gold and Copper saw their shares fall between 23%-38%.

Nevertheless, there was a glimmer of hope from the mining sector as Rockfire Resources surged by 55% to 0.33p on the news of striking a rich vein of zinc at its Greek project site.

Versarien, a company focused on creating graphene-based products, successfully raised funds and saw its shares climb 44% to 2.64p over the week.

Edenville Energy, an Africa-based mining company, saw its shares jump 45.5% to 8.06p after securing almost £1.5 million in funding from two strategic investors, and subsequently announced its rebranding as Shuka Resources.

Active Energy, whose shares rose by 17% this week to 6.87p, and by 62% year to date, also witnessed a positive development. The company received a permit from Player Design to construct a CoalSwitch manufacturing facility in the US.

CoalSwitch is an innovative procedure developed by Active Energy, which converts residual low-value wood into biomass fuel pellets. These pellets can subsequently be utilized in conventional coal-based power plants.

Active Energy has stated that it is vigorously pursuing more collaborative production licenses in the US to boost production capacity. Additionally, the company has noted a rising interest in CoalSwitch.

This week has been quite an unpredictable ride for those who invested in Amur Minerals Corporation.

Immediately after the completion of the mining company’s departure from Russia, a takeover bid from a rival company was submitted. Based on recent updates, it seems that other entities have also shown interest in the company.

Over the past ten years, Amur has been focused on developing the Kun-Manie nickel-copper project in the far east of what used to be the Soviet Union. Considering Russia’s global ostracism following the invasion of Ukraine, it’s no surprise that Amur decided to let go of this valuable asset.

Mining entrepreneur Vladislav Sviblov, owner of Highland Gold (previously listed in London), is the buyer. Investors are set to receive a payout of £28 million, translating to 1.8p per share. This is a solid return for those who bought shares in March at less than half that price. However, it’s a significant loss for those who have held onto their shares since June 2015, when the price soared to 37p.

What’s next for CEO Robin Young and his team at Amur? They’re considering an offer from Ascent Resources, but are currently advising shareholders not to take action. On Thursday, an all-share offer was submitted, amounting to 0.175p per share, a bit lower than the current 0.2p share price (this gives the company a value slightly under £2.9 million).

At the end of the week, the company’s share price had dropped by around 88%, reflecting the fact that the shares are now trading without the one-time dividend payment.

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