Share Talk Weekly Small Cap Movers & Shakers, Sunday 4th December 2022

C4X Discovery Holdings PLC, (AIM: C4XD), shares surged more than 25% on Monday after the company announced that it had signed a worldwide exclusive licensing agreement with AstraZeneca totalling up to US$402mln.

This agreement will allow the development and commercialisation of the firm’s NRF2 activator programme.

AstraZeneca plans to develop an oral therapy for inflammatory and respiratory conditions, with a primary focus on chronic obstructive lung disease (COPD).

Aminex PLC, (LSE: AEX) shares rose close to 20% Monday morning, to trade at 1.2p after the Tanzanian authorities added a new clause to the agreements for gas projects.

After the explorer discovered gas in Tanzania’s Ruvuma Basin, he began to search for a partner to fund development. However, regulatory greenlights and corporate box-ticking have been the main hold-ups.

Investors welcomed Aminex’s latest statement, in which it advocated the benefits of new government commitments to the “development of gas resources as quickly as possible”. It will likely include support for infrastructure that it stated could be built within the next six-to-nine month.

Windar Photonics PLC, (AIM: WPHO) was the week’s early winner. Its shares resumed trading last month after it was suspended. This was despite delays in publishing its interim and full-year results.

After the acquisition by Location One Limited, a location supplies provider, vehicle hiring company Facilities (AIM: ADF), surged more than 13% Thursday.

After the signing of a reseller deal with Everdura Technology Company (based in Taiwan), Invinity Energie Systems PLC (AIM IES), a global leader in utility-grade energy storage, shares soared on Thursday.

To understand why shares of the AIM-quoted firm plunged sharply this week, one doesn’t have to look far beyond Mortgage Advice Bureau (Holdings), PLC’s name.

After revealing Kwasi Kwarteng’s disastrous min-budget that sent UK borrowing rates skyrocketing in October, the group plunged 30%.

Advisors and intermediaries revealed that October and November saw 50% less business activity than they expected. MAB expects that profit activity in 2023 will be significantly affected by the declines in mortgage approvals and the drop in lending rates since the Kwarteng crash.

The shares dropped more than 21%, falling to a low point of 497p before a slight rally on Friday.

Another small-cap wag a finger at Westminster, as Triad Group PLC, an IT contractor, claimed paralysis in government procurement was at most partly to blame for Thursday’s profit warning.

Triad’s interim results revealed declining revenues, tightening margins, and reduced cash reserves.

“Although I am disappointed with the first half of the results, I have to stress that they are completely due to external factors beyond my control,” Dr John Rigg, Triad’s executive chairman said.

The AIM-quoted company announced a 2p dividend, in line with 2021 payouts, despite its poor financial standing. Triad shares dropped almost a quarter in value since Friday’s start at 100p.

The market’s AIM All-Share Index finished the week half a point higher than the previous week. This was after a down-and-up week. The index reached a peak of 851, but it fell to 845 on Wednesday due to a series of losses.

AIM-quoted designer bag manufacturer Mulberry Group (AIM: MUL). is another company that is clearly in trouble amid worsening economic conditions this past year. Its interims on Wednesday show the effect of lower consumer interest for non-essential goods.

It reported a revenue dip of 1% in the first quarter, which led to shares falling 15% to 240p. UK retail sales fell 1% to £34.1mln while sales in China rose by 6% despite stricter COVID-19 restrictions.

Borders & Southern Petroleum (AIM: BOR) shares fell nearly 40% Wednesday after the company announced a dilutive equity raise of £2.5mln.

The Issue Price is an approximate 44% discount, the share dropped to 1.98p – versus Tuesday’s closing price of 3.15p, ouch.

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