AIM Weekly Movers: Appreciate the Deal
Point of payment (LON: PAY) make an offer for Appreciate (LON: APP) in a deal that values the prepaid vouchers and Christmas savings group at £83million – based on a PayPoint share price of 580p. The offer is 33p in cash and 0.019 of a PayPoint share for each Appreciate share. A stock dividend of 0.8pa will also be paid to Appreciate shareholders. PayPoint’s share price fell to 547p, so the bid isn’t worth that much now. PayPoint believes the acquisition will improve earnings. Appreciate’s share price jumped 60.1% to 41.7p.
Schroders increased its stake in musicMagpie (LON: MMAG) from 10.1% to 12.4%. This triggered a rise in the share price of 58.9% to 16.05p. The April 2021 IPO price was 193p. The company has completed the rollout of SMARTDrop kiosks in Asda stores. There are 290 stores with kiosks offering a way to recycle cell phones.
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Biome Technologies (LON: BIOM) increased third quarter revenue by 77% to £1.9m. The bioplastics and radiofrequency divisions have grown. Even so, Biome is more cautious about pre-commercial customer projects and full year revenue expectations have been reduced from £6.8m to £6.29m, which is still above expectations. £5.73m generated in 2021. 1.1m is expected. The share price jumped 50% to 72p.
Harland & Wolff (LON: HARL) secured a debt refinancing term sheet with Astra Asset Management. This would increase the available facility by £70m to £100m. The initial period would be two years. The financial close should take place before the end of the year. This will provide working capital for large contracts. There has been a postponement of the hearing date for the proposed gas storage project at Islandmagee. Even so, the share price rose 44.5% to 8.96p.
Other director buying from Specifications (LON: SPEC) helped the share price recover 43.8% to 69p. Chief executive Robin Totterman bought 850,053 shares for his pension fund at 47 pence each. He owns 18.3%. It sold 6.3 million shares at 195p each when the company went public in early 2020. The eyewear supplier warned of weak trading a fortnight ago.
Cash-strapped companies are finding it increasingly difficult to raise funds and they dominate the fallers this week. Applied Graphene Materials (LON: AGM) and PCF Group (LON: PCF) were both hit by sharp declines in the share price due to the inability to secure cash. Applied Graphene Materials was unable to raise funds through a share issue and more cash will be needed in early 2023. The share price fell 61.2% to 4.75 pence . PCF Group was also unable to raise funds or secure a strategic transaction, so PCF Bank withdrew from the UK banking market. The PCF Board of Directors seeks shareholder approval for the delisting of AIM. PCF share price is down 63.1% to 0.6p this week.
Sarreum (LON: SAR) says UK authorities have not approved the proposed SDC-1801 clinical trial. Further review of the non-clinical data will likely be required, so the safety and tolerability trial will not take place this year. The shares fell 34.5% to 90p.
fashion brand Joules Group (LON:JOUL) is still evaluating financing options, which includes planning for CVAs. Joules says trading took place over eleven weeks to October 30, 2022 and working capital is worse than expected. Bridge financing is required. Sales of outerwear and knitwear were affected by the warmer weather. Online sales were weak, but in-store sales were slightly better than expected. Higher levels of promotion squeezed margins. Net debt was £25.7m at the end of October 2022, leaving little room after other requirements. The share price fell 32.7% to 9.22p.