Lung cancer diagnostics developer Lung Life AI (LON: LLAI) still plans to leave AIM following its US distribution deal, which requires shareholder approval. This will leave LungLife AI with the activities of running the LungLB test and collecting royalties. Circulogene will have exclusive rights to distribute and further development the LungLB lung cancer diagnostic in the US and the other countries it is involved in. It will also receive some of LungLife AI’s equipment. The royalty payment will be 20% of net revenues generated by the test in the first year, reducing to 15% in the second year. This is a two year agreement with potential for annual renewals. There is an option for Circulogene toacquire all the IP and licences for $6.2m less any payments already made. Circulogene is making an advanced payment of $375,000, which is returnable if the deal does not go ahead. There was $850,000 in cash at the end of March and costs are being reduced. An application has been submitted to a Medicare contractor for the technical assessment of LungLB. The share price soared 233% to 3p.
On Monday, Alba Mineral Resources (LON: ALBA) announced the second auction of a limited edition coin containing one ounce of Welsh gold. The first auction put a price of £20,000 on the coin, which was more than eight times the price of gold at the time. The estimate had been set at £20,000-£25,000. The second coin auction closed on 16 April and the share price jumped on the following day. According to the auction website the coin was not sold. The estimate was £22,500-£32,500, so the bidding probably did not reach that level. There is a third gold coin. Despite the fact the coin was not sold, the share price jumped 80% to 0.0315p.
Catenai (LON: CTAI) proposes a sub-division of capital because the share price is lower than the nominal value so no shares can be issued to raise money. The nominal value will be reduced from 0.2p to 0.01p. Catenai recently announced that it had raised £750,000 at 0.15p/share, including a £150,000 subscription by Sanderson Capital Partners. Director fees of £450,000 have been settle by the issue of 30 million shares. Catenai intends invest in Alludium, which has developed a platform for AI process automation. Subject to shareholder approval, £500,000 will be invested in Alludium and when cash is received from Klarian, or raised in a share issue, a further £450,000 may be invested. That would be a 13% stake in Alludium in total. The share price is 78.1% higher at 0.285p.
North Sea gas project developer Deltic Energy (LON: DELT) estimates gross 2C contingent resources of 174bcf at the Selene gas project – a one-third increase on the previous figure. Deltic Energy has a 25% interest in the Selene gas project and its share of post-tax NPV10 estimate is $83m net at 80p/therm. Modelling suggests enhanced production potential from the B-sand interval. A final investment decision could happen in early 2027. The share price improved 56.3% to 6.25p.
FALLERS
Jarvis Securities (LON: JIM) is selling its execution only broking business to Interactive Investor for £11m and winding down its clearing and settlement operations. Completion will happen when client agreements are transferred and that should happen in early July. The board believes that winding up the remaining operations and returning the remaining cash to investors is the best outcome. It will take 15 months to wind up the business. There are no plans to make an acquisition and shareholder approval will be sought for cancelling the AIM quotation. The share price slumped 70.2% to 12.5p, which is the lowest it has ever been. The market capitalisation is £5.6m.
Pantheon Resources (LON: PANR) says there were no signs of hydrocarbons at the first test zone of the Megrez well in Alaska. Pantheon Resources has tried to put a positive spin on the results by suggesting that higher hydrocarbon saturations and mobile oil in the shallower test zones. There will be a pause before the second test. The share price declined 29% to 37.05p.
Internet of Things investment company Tern (LON: TERN) is giving shareholders the chance to buy one share for every 16 held in an open offer at 1p/share that will raise £340,000. The open offer is underwritten and closes on 6 May. Disposals of investments are planned, and the cash will enable management to wait for the right time to sell. The share price slipped 22.4% to 1.125p.
Steel structures supplier Billington (LON: BILN) had an exceptionally good 2023, so it is not surprising that revenues fell from £132.5m to £113.1m in 2024. That meant that pre-tax profit fell from £13.4m to £10.8m. There was a special dividend of 13p/share last year, so the ongoing dividend was raised from 20p/share to 25p/share. Trading got tougher in the second half and management is focusing on contacts with sufficient margins rather than chasing sales. Even so, the order book remains strong. Trading will be second half weighted in 2025, and pre-tax profit is expected to dip to £7.3m, downgraded by 24% from the previous Cavendish estimate. Net cash is £21.7m and it should not fall significantly this year, even after higher capital expenditure, which should peak this year. NAV is 410p/share. The share price decreased 22.2% to 342.5p.