Let’s check out some of the top risers and fallers on the junior market this week.
This week, a significant event unfolded for AIM-listed company Glantus Holdings PLC (AIM: GLAN).
Shareholders in the firm, which provides automation and analytic solutions for accounts payable, saw their share value nearly double from Monday’s opening to Wednesday’s early trading.
This was a commendable feat for a small-cap company that released disappointing earnings results the previous week.
At 10.40 am on Wednesday, when shares were soaring, a regulatory update shed light on the reason behind the rally: Glantus was officially in discussions with private equity firm Accel-KKR about a potential all-cash offer for the company’s total share capital.
These discussions remain preliminary, with no formal announcement made. Accel-KKR has a deadline of August 16 to place a formal offer.
As it stands, Glantus’ shares are 175% higher week on week, resulting in a market capitalisation of £11.2 million.
If only the overall junior market mirrored Glantus’ increase in market value.
The AIM All-Share Index dropped 1.8% to 740 this week, effectively reflecting the previous week’s poor performance.
Several macroeconomic factors impacted equities over the past five trading days.
Concerns over job data and inflation put pressure on stocks, with Thursday being a particularly rough day due to predictions of higher interest rates from UK financial analysts.
Additional pressure came from positive US jobs data, which caused a ripple effect on US equity markets.
Blue chip stocks faced a bigger sell-off than the lower end of the market, with the FTSE 100 closing the week 3.5% lower, compared to AIM’s 1.8% drop.
Despite a slow week, a few junior market members had encouraging performances.
Net Zero plc saw its shares spike up to 90% higher on Thursday after its investee, WasteFuel Global – a developer of bio-methanol from agricultural waste – received a US$10 million investment from BP and ended the week 92% higher at 26p.
Aptamer Group, a micro-cap life sciences firm, had a wild ride. The producer of Optimer binders experienced a near 25% rise on Friday after securing several contracts worth a total of £507,000. However, this followed a 40% drop on Monday due to an urgent need for additional funding to maintain the company’s operations.
In the creative sector, Zinc Media (AIM: ZIN) saw a 6% increase throughout the week following the release of a positive trading statement on Wednesday, revealing that the firm’s total revenues of £31 million for the first half had already exceeded the entire 2022 financial year.
Shares in Kooth PLC (AIM: KOO), a digital mental health firm, surged after landing a £148m contract to serve all 13-to-25-year-olds in California. The London-based company plans to hire over 200 staff within the next year to bolster its growing US operations.
In the energy sector, Petro Matad Limited (AIM: MATD, OTC: PRTDF) saw an approximately 60% increase in shares on Thursday following the receipt of a new permit from Mongolian authorities. By Friday, shares remained 30% higher.
Despite these highs, there were some lows in the resources sector. Quadrise shares fell 40% on Friday, following an open offer to raise a minimum of £1 million ahead of anticipated first commercial revenues from its main projects.
Zanaga Iron Ore Company Ltd’s shares also declined nearly 40% this week on what appeared to be a relatively harmless funding package meant to minimize dilution.
Vast Resources‘ shares also dipped after the announcement of a funding package – a £1.7 million deal for the placement of 486 million shares at 0.35p each.
