Northern Bear (LON: NTBR) intends to launch a tender offer to buy up to five million shares (26.7% of share capital) at 62p each. The share price jumped 25.8% to 56p. The building services provider will ask for authorisation at a general meeting on 15 November and the tender will be funded by the company’s cash and an additional £1m of debt. This will be earnings enhancing. Some shareholders say they will not tender shares, which means that other shareholders can tender at least 35.6% of their holding. Shares have to be tendered by 22 November. Jeff Baryshnik will retire as chairman after the general meeting. Trading is ahead of the previous year and a trading update will be published next week.
Another positive update from Ondine Biomedical Inc (LON: OBI). The Steriwave photodisinfection technology helped to reduce spine surgery infection rates by two-thirds at Vancouver General Hospital. This is based on an eight-year study and there was a net annual cost saving of C$2.5m. The share price improved 15% to 11.5p.
Europa Metals (LON: EUZ) has completed an application for a mining licence at the Toral lead, zinc and silver prospect in Spain. The estimated mine life is 15 years. The share price is 10.8% ahead at 2.05p.
Plexus Holdings (LON: POS) raised £549,000 by selling 2.75 million treasury shares at 19.97p/share. This will provide working capital. There are still 2.2 million shares left in treasury. This helped the share price rise 10.8% to 20.5p.
OptiBiotix Health (LON: OPTI) has done a deal with Tata Chemicals to include its Fossence technology into SlimBiome and LeanBiome for the Indian market. Fossence is a known brand in India. The share price increased 7.48% to 28.75p.
FALLERS
Fourth quarter trading at The Mission Group (LON: TMG) has got tougher with clients spending less. This follows a relatively upbeat trading statement at the time of the interims. The cost base was raised in anticipation of additional demand and cost cutting will not be done until next year. Canaccord Genuity has slashed its pre-tax profit forecast from £7.9m to £3.1m and net debt is set to rise to £24m, which contravenes debt limits. The interim dividend is cancelled. Interest will be covered just over two times. The share price slumped 58.8% to 14p. That is less than five times prospective earnings.
R&Q Insurance Holdings (LON: RQIH) announced after the market closed on Friday that it is selling its program management business, and this should generate $300m of net proceeds. This will be used to pay down debt. The group chief executive and finance director will leave with the disposal. The reaction is negative with a 24.7% decline in the share price to 37.7p.
Sustainable fuels technology developer Velocys (LON: VLS) has launched its new technology facility in Ohio. Velocys contributed $2m of the $10m capital investment with the rest invested by a subsidiary of The Pagura Company. The equipment will be fully up and running by mid-2024. There should be enough capacity for projected orders stretching out to 2028. The share price fell 13.1% to 1.025p.
Trinity Exploration and Production (LON: TRIN) has updated 2023 production guidance from 2,800 bopd – 3,100 bopd to 2,800 bopd – 2,900 bopd. Third quarter sales volumes fell because of downtime at a well in the Trintes field. The total cost of drilling and testing wells at the Jacobin-1 discovery, onshore Trinidad, will be higher than previous estimates. The share price slipped 9.63% to 61p.
