Pharma IT systems supplier Instem (LON: INS) is recommending an 833p/share cash bid by Ichor Management, which is controlled by funds managed by Archimed SAS. The share price jumped 39.8% to 825p. The bid is still below the share price peak of 905p in September 2021. Instem is valued at £203m. The board believes that private ownership will provide greater access to capital to fund acquisitions and growth.
Portable oxygen technology developer Belluscura (LON: BELL) has entered into an exclusive licence and distribution agreement with global manufacturing partner InnoMax Medical Technology. It starts on 1 October and minimum royalties could be $55m over ten years, plus net profit share on sales of accessories. Minimum royalties will be $27.5m if the licence becomes non-exclusive from the sixth year. First sales should be before the end of the year. Belluscura is expected to move into profit in 2025. The share price increased 20.7% to 49.5p.
In-game advertising company Bidstack (LON: BIDS) has signed up Venatus as the exclusive direct seller of video game advertising inventory in the US, UK, Germany, Canada, Australia and South Korea. This covers more than 400 video games. The share price is 13.3% higher at 0.85p.
Chip maker EnSilica (LON: ENSI) has won a €2.5m contract for its satellite broadband chip. There is an initial order for 50,000 chips. There is scope of sales of much larger quantities of chips. The share price improved 3.82% to 68p. The May 2022 placing price was 50p.
FALLERS
Challenger Energy (LON: CEG) has secured a £3.3m convertible loan note facility and already drawn down £550,000. The notes are redeemable at a premium to par value. The cash will fund oil and gas exploration in Uruguay. Management is still waiting for approvals to complete the sale of the Cory Moruga asset in Trinidad. There will be 315 million shares issued to creditors. Chief executive Etyan Uliel intends to buy 60 million shares. The share price fell 14.7% to 0.0725p.
Woodbois Ltd (LON: WBI) has been hit by concerns about the political situation in Gabon. It has facilities in Mouila where production has been suspended to enable workers to travel to vote. A full operational update will be provided with the interims in September. The share price declined 12.4% to 0.6p.
Rx3 is still considering making an offer for Kinovo (LON: KINO). It points out that there remains uncertainty due to the spending requirements relating to commitments made when DCB Kent was sold. Currently a loss of £4.3m is provided for. The total contracts are worth £18m and they will not all be completed until the end of 2025. Rx3, which already has the backing of 29.9% of Kinovo through its owner Tim Scott, says that Kinovo requires more funding to continue to grow. The share price fell 5.77% to 49p.
CanMax is subscribing £5m for shares in Premier African Minerals (LON: PREM) at 0.35p each. The share price slipped 3.26% to 0.445p. CanMax will own 17.4% of the company. The cash will be used to fund further development of the Zulu lithium concentrate plant, which should produce 1,000t/month from November.
