AIM movers: Evgen drug deal and no oil at Serenity for Europa and i3 Energy

Drug developer Evgen (LON: EVG) is partnering with Swiss biotech Stalicia for the potential use of SFX-01 for the treatment of autism spectrum disorder and other CNS disorders. The share price jumped 63.2% to 4.65p. This deal could generate up to $160.5m in milestone payments and double-digit royalties, although that is a long way away. The upfront payment is $500,000 with a further $500,000 once a volunteer study is completed in the first half of 2023. If the FDA approves an investigational new drug admission that will spark a $5m payment – possibly next year. Including what is already in the bank, cash should last until the end of 2024.

Identity management software provider Intercede Group (LON: IGP) says trading is in line with expectations and is acquiring password security management software company Authlogics for an initial £2.5m, plus up to £3m depending on growth in annualised recurring revenues. This broadens the scope of the Intercede business. Net cash will still be £7.9m. The share price rose by 38.2% to 52.5p.

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Shares in PipeHawk (LON: PIP) increased 18.5% to 16p after winning a contract to provide a manufacturing assembly system for a rotor component in an aerospace e-motor. The value is £1.6m over 12 months.

Helium One Global (LON: HE1) has completed an engineering audit on the preferred drill rig for phase II drilling at Rukwa in Tanzania. The rig will be imported from Kenya and drilling could start by February. That sparked a 9% rise to 6.65p.

Frasers Group (LON: FRAS) has acceptances totalling 48.6% for its 2p a share bid for MySale Group (LON: MYSL) – once settlement is completed. The share price improved by 9.76% to 2.25p.

Subsea rental equipment supplier Ashtead Technology (LON: AT.) says higher utilisation and pricing means that 2022 results will be much better than expected. The share price rose 7.83% to 268.5p. Ashtead Technology floated last November at 162p a share.

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Subsea cable protection services provider Tekmar Group (LON: TGP) is exploring approaches from interested parties as part of its strategic review. The maturity date of a £3m CBILs loan has been extended to the end of October 2023. The share price edged up 6.1% to 8.75p.

Europa Oil & Gas (LON: EOG) is the worst performer on the day with a 37.5% decline to 1.375p because the Serenity SA02 well in the North Sea was not oil bearing. The gross well cost is forecast to be £10.4m with £4.8m paid by Europa Oil & Gas and £5.6m by i3 Energy (LON: I3E). WH Ireland has reduced its estimate for i3 Energy from 66p a share to 49.35p a share. The i3 Energy share price fell 12.1% to 24.125p.

Acoustic materials supplier Autins Group (LON: AUTG) says second half sales were similar to those in the first half, but the fourth quarter was weak because of production disruption at a major customer. Higher costs have put pressure on gross margins. Autins hopes to reduce its loss in the short-term through operational efficiencies. Net debt was £2.4m at the end of September 2022. The share price declined 35.7% to 9p.

Property lending platform operator Lendinvest (LON: LINV) says platform assets under management are one-third higher at £2.4bn, but finnCap has downgraded its full year forecast. Interest rate volatility is hampering margins. Earnings have been downgraded from 12.6p a share to 8.9p a share. Volatile The dividend forecast is maintained at 4.6p a share. The share price slumped 27.7% to 70.5p. The July 2021 placing price was 186p.

Investment publisher Bonhill (LON: BONH) has commenced a strategic review that could lead to the sale of the company or separate businesses. Trading remains difficult and shareholder Rockwood Strategic (LON: RKW) is providing a £800,000 loan facility. Restructuring should reduce costs by £700,000 in 2023. In 2018, InvestmentNews was bought for £21.3m and in 2019 Bonhill acquired Last Word for £8m in cash and shares. The shares are 26.1% lower at 4.25p, which values Bonhill at £4.2m.  

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