A large diagnostics company has made a bid approach to kidney disease diagnostics developer, Renalytix (LON: RENX). This has sparked a formal sale process, so that the company can assess whether there are other potential bidders. It is also possible that there could be a decision to stay independent. Funding options are being reviewed. Costs have been reduced, but there is currently cash and securities of $3.7m and the cash outflows remain significant so this will only last until the end of April. A share issue and/or debt financing will be required. The share price soared 75% to 70p.
Molecular Energies (LON: MEN) subsidiary Green House Capital is making progress towards an AIM flotation. The three main investee companies are making progress with Dual Fuel showing that it can improve fuel efficiency and reduce the use of diesel. It was previously announced that EIS relief eligibility had been obtained. Molecular Energies owns 75% of Green House Capital. The share price recovered 29% to 24.5p.
In-content advertising services provider Mirriad Advertising (LON: MIRI) has secured a two-year agreement with a major US film and TV company, which will use Mirriad Advertising’s platform for virtual product placement opportunities. It is already going to use the platform for one of its highest rated programmes. There are talks with another US film and TV company. The share price increased 15.4% to 1.5p.
Block Energy (LON: BLOE) has revealed an increase in resources for the Rustavi and Teleti fields. An independent engineering report confirms 2C gas resources of more than 2.77 Tcf, which is more than double the previous figure. The NPV10 for the whole of the licence area is more than $1.6bn. This will help to attract potential farm-out partners. The share price is 11.1% higher at 1p.
FALLERS
Beowulf Mining (LON: BEM) has revealed the terms of its cash raising to invest in Kallak iron ore project in northern Sweden and the graphite anode materials plant in Finland. There is a rights issue of SDRs to raise £6.3m, of which £3.8m is underwritten, and a PrimaryBid retail offer at 0.61p/share raising up to £1.6m in the UK raising. Last year, the company raised money at 2.06p/share. A capital reorganisation will reduce the par value of the shares from 1p to 0.1p. The share price slipped a further one-quarter to 0.9p – it has fallen 30.8% this year.
Data analytics software developer Rosslyn Data Technologies (LON: RDT) will make a higher than expected loss in the year to April 2024 because of delays in orders. There are hopes that contracts can be signed before April, but most of these revenues would still be recognised in 2024-25. Cash should last until the end of 2024, but that depends on signing additional contracts. The share price slumped 24.6% to 12.25p. The August 2023 fundraising was at 25p/share.
URU Metals (LON: URU) has extended the repayment date for the convertible loan from Boothby Absolute Return Strategies to the end of May. The amount loaned is $500,000. The share price declined by one-fifth to 50p.
Caledonia Mining Corporation (LON: CMCL) met production guidance with 75,416 ounces of gold produced, but costs were higher than expected. Some of these additional costs were one-offs. This led to Cavendish slashing its earnings forecast from 68.6 cents/share to 15 cents/share. However, it still expects a total dividend of 56p/share in 2023 and 2024, when it may be covered be earnings. The share price fell 14.6% to 675p.
