Oil and gas projects developer Longboat Energy (LON: LBE) is exiting its assets in Norway and selling its 50.1% stake in Japex Norge joint venture stake for $2.5m and the assumption of $8,5m of debt by the acquirer. This should save $1.25m in costs in 2025. The cash will be invested in Malaysia and should last until next year. The main asset is the 52.5% owned Kertang gas prospect, offshore Sarawak. There is strong demand for gas in southeast Asia. A farm out process will be conducted in the second half of 2024. An updated competent person report is due at the end of the month. The share price is 55.2% higher at 11.25p.
Sound Energy (LON: SOU) shares have rebounded 26.5% to 1.0575p following the announcement after the market closed on Friday that it has sold most of its interest in its Moroccan assets to Managem. It is selling a subsidiary that holds most of these assets for up to $45.2m, but it will retain a 20% interest in the Tendrara production concession and a 27.5% working interest in each of the Grand Tendrara and Anoual exploration permits. Managem will provide funding for phase 2 of the Tendrara concession, including two exploration wells. The disposal proceeds include $13m of back costs and contingent consideration of $1.5m one year after first gas from the phase 2 development. The rest of the consideration is covered by the funding being provided by Managem for the concession and the two permits. The subsidiary being sold generated pre-tax profit of £1.3m in 2023.
Modular housing supplier Eco Buildings Group (LON: ECOB) says that its factory in Albania is fully operational. The automated production line has improved efficiency and quality. Production time has been reduced by one-third and this improves the outlook for profitability. The company’s product has passed safety testing in Chile and there are plans to move into the south American market. The share price rose 16.7% to 14p.
Inspiration Healthcare (LON: IHC) shares continue to recover after Mennen Medical increased its stake in medical ventilators supplier from 5.22% to 6.21%. Israel-based Mennen Medical is a developer of medical technologies, including static and wearable monitors. It is developing a new monitoring product for babies, which overlaps with Inspiration Healthcare’s focus. The share price increased 12.2% to 27.5p.
FALLERS
Training services provider Mind Gym (LON: MIND) reported an 18% decline in revenues and a slump into loss in the year to March 2024 and revenues are expected to continue to decline this year. Clients are putting off spending on developing the skills of employees. There was a loss of £12.1m after exceptional costs of £8.9m. There was a £6.6m write down on digital assets, restructuring costs of £1.8m and a £500,000 impairment of a US office lease. At the end of March 2024, cash was £1.4m. Liberum expects the underlying loss will be reduced from £3.3m to £1.7m in 2024-25. The new chief executive is updating strategy through further productisation of services. The share price slumped 22.1% to 30p, which is a new low.
Corcel (LON: CRCL) has raised £500,000 at 0.1p/share from high net worth individuals. The oil and gas company will use the cash to finance geological and geophysical work in Angola and business development in Brazil. This fundraising replaces the subscription money from a previous fundraising at 0.5p/share where subscribers, including largest shareholder Extraction, had not come up with the cash. Those shares will no longer be issued. The share price dipped 7.69% to 0.12p.
Dowgate has taken a 6.57% shareholding in Trellus Health (LON: TRLS). The company has developed technology to help manage chronic conditions. At the end of 2023, there was net cash of $12.2m and there was a cash outflow of $7.6m during the year. Agreements are being signed with US health insurance companies. The share price lipped 9.68% to 1.4p.
Electric Guitar (LON: ELEG) non-executive director David Eldridge has resigned less than two months after selling his digital marketing business 3radical to the company. The shares to acquire 3radical were issued at 2.1p each. The share price fell 6.67% to 1.05p.
