AIM movers: Rurelec sells interests in Argentina and Tower Resources discounted placing

Rurelec (LON: RUR) is selling its Argentinian power generation interests for $5m (£4m), which will leave it as a shell. The assets had a book value of $4.76m. Sterling Trust, which owns 54% of Rurelec is in favour of the deal. There is an initial payment of £2.4m on completion. This deal will enable a 0.2p a share dividend to be paid and leave £1.14m in the company. The share price is 50% ahead at 0.6p.

Accounting software provider Glantus (LON: GLAN) has issued a first quarter update, even though 2022 accounts have not been published. There was positive cash flow on revenues of €3.47m, following cost reductions. Management is hopeful that it can extend payment terms for a €5m loan. Cash remains a concern. The appointment of a new finance director may improve sentiment towards the company. The share price is recovering from the depths with a 13.3% gain to 8.5p.

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Sabien Technology (LON: SNT) has signed a memorandum of understanding bringing City Oil Field in as an equal one-third shareholder in b.grn with Sabien Technology and Parris, which will be granted the right to manufacture its regenerated green oil systems under licence. There is also an option for b.grn to take a 10% stake in City Oil Field. Sabien Technology will also have the right to undertake research projects for the regenerated green oil technology. Sabien Technology set up b.grn with Parris Group to develop waste plastic recycling sites in the UK. The share price has risen 11.3% to 17.25p.

Online retailer boohoo (LON: BOO) reported a 11% decline in revenues to £1.77bn, which was slightly better than expected. The biggest decline was in the US. There was still a small full year loss, but the cash position was stronger than forecast with net cash of £5.9m thanks to a working capital inflow. A higher loss is expected this year. The share price improved by 10.2% to 42.385p, which remains below the flotation price.

Tower Resources (LON: TRP) is raising £2.3m at 0.05p a share. This will fund the preparation of drilling of the NJOM-3 well in Cameroon. It will also fund work on interests in Namibia and South Africa. The share price slumped 54.4% to 0.0525p.

Anglesey Mining (LON: AYM) is another company where the share price has been hit by a fundraising. It fell 22.5% to 1.55p following the £1m placing at 1.5p a share. Every two shares have a warrant attached that is exercisable at 2.5p. This will finance drilling at the Parys Mountain mine in Anglesey, as well as studies for the Grangesberg iron ore mine in Sweden.  

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Shoe Zone (LON: SHOE) increased interim revenues by 8% to £75.4m even though there are fewer stores, but margins declined. Pre-tax profit fell from £3.1m to £2.5m. The interim dividend is unchanged at 2.5p a share. Net cash was still £12.9m, even after dividends and share buybacks. Full year pre-tax profit is forecast to slip from £11.2m to £8.5m. The share price slipped 15.6% to 202.5p, which is still higher than at the beginning of 2020.

Building technology supplier SmartSpace Software (LON: SMRT) reduced its loss in the year to January 2023 and there should be a further reduction this year to a point where the business is cash neutral. The hardware business is being sold. The share price fell 14.2% to 45.5p.

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