88 Energy (LON: 88E) says the flow test of the Hickory-1 well in Alaska showed peak flow of 70 barrels of oil/day. This is a step towards showing that the well is commercial. Results from tests of the SMD-B reservoir are expected by mid-April. The joint venture partner Burgundy Xploration has paid its $1.75m contribution leaving 88 Energy well-funded for its immediate requirements. The share price jumped 40.1% to 0.365p.
ImmuPharma (LON: IMM) has commenced a new IP strategy for the P140 technology platform for autoimmune diseases. The patent portfolio is being expanded. This will support patient studies and help discussions with potential commercial partners on existing indications for systemic lupus erythematosus, which is starting a phase 3 trial, and chronic idiopathic demyelinating poly neuropathy. The share price is 25.9% higher at 2.675p.
Horizonte Minerals (LON: HZM) says senior lenders have agreed to further waivers on interest payments until the end of April. If it is not extended further deferred interest payments for the past two quarters will become immediately due. The company’s Brazilian subsidiary is in a 60-day stay period against the enforcement of debt and security held by lenders and creditors and Horizonte Minerals is a guarantor of the debt. Any claim could force Horizonte Minerals into administration. The share price recovered by one-third to 2p.
Video games publisher Frontier Developments (LON: FDEV) is trading in line with expectations before the benefit of the profit from the sale of RollerCoaster Tycoon 3 publishing rights. Those rights returned to Frontier Developments in 2018 under the original publishing agreement. The game has been generating $1.5m profit/year. Atari has acquired the rights for $7m with an initial payment of $3m. There was no value in the books for the game. This has boosted the cash position to £23.4m. The share price rose 15.3% to 162.5p.
FALLERS
Redx Pharma (LON: REDX) is the latest AIM company that has decided to leave. A plan to reverse into a Nasdaq shell fell through and there is limited liquidity for the shares. There are already enough votes to guarantee that the proposal is passed at the general meeting on 19 April. The share price dived 59.5% to 7.5p. Last October, £14.1m was raised at 26p/share. Management believes that it will be easier to raise money as a private company.
Perpetual has reduced its stake in semiconductors designer Sondrel (LON: SND) from 3.95% to less than 2.3%. The share price slumped 47.5% to 3.15p. Siemens sold its stake at 6p/share at the end of 2023.
Portable oxygen technology developer Belluscura (LON: BELL) has suffered from the distraction and delays in the acquisition of standard list shell TMT Acquisition. This delayed the launch of the DISCOV-R product until June and the acquisition of components. Manufacturing is being moved to InnoMax in China. Cash flow breakeven has been delayed until the first quarter of 2025. A line of credit is being sought to cover non-recurring expenses. There is $3m in cash at the end of March 2024. The 2024 revenues will be lower than the previous range of $16m-$19m. There will be impairment charges in the 2023 accounts. The share price is 46% lower at 10p.
Plant-based polymers developer Itaconix (LON: ITX) has not been able to agree terms with one of its main merchandising customers in North America. Management has been trying to improve gross margins and this is lower margin business. This means that 2024 revenues will be in the range of $6m to $6.5m, compared with $9.5m previously and $7.9m for 2023. Gross margins will be better, but the loss will be higher than the $1.12m previously forecast. The share price fell 23.7% to 200p, but it is still 68% higher than at the beginning of the year.
