It has been a good week for drug developer Evgen (LON: EVG), which is partnering with Swiss biotech Stalicia for the potential use of SFX-01 for the treatment of autism spectrum disorder and other CNS disorders. This deal could generate up to $160.5m in milestone payments and double-digit royalties, although that is a long way away. The upfront payment is $500,000 with a further $500,000 once a volunteer study is completed in the first half of 2023. If the FDA approves an investigational new drug admission that will spark a $5m payment – possibly next year. Evgen is also undertaking an additional early-stage study for the treatment of glioblastoma using SFX-01. This could de-risk a phase II study and help to secure a partner. It will help to better target brain tumours. R&D costs will be lower and cash resources should lase best performer on the week with a 77.2% jump in the share price to 5.05p.
Identity management software provider Intercede Group (LON: IGP) says trading is in line with expectations and it is acquiring password security management software company Authlogics for an initial £2.5m, plus up to £3m depending on growth in annualised recurring revenues. This broadens the scope of the Intercede business. Net cash will still be £7.9m. The share price rose by 47.4% to 56p.
Powerhouse Energy (LON: PHE) rose 42.7% to 1.384p after it said that it expects to finalise the agreements for special purpose vehicle for the plastics-to-hydrogen project on the Protos Plastics Park before the end of the year. A new site for the company’s headquarters is under negotiation.
Tanfield Group (LON: TAN) has agreed a settlement for UK proceedings with Foulston Siefkin for £3.98m. This relates to the disposal of the Snorkel work platform business. It is continuing its proceedings against Ward Hadaway in the UK and US. The UK trial starts on 7 November. The share price rose 37.5% to 2.75p.
Escape rooms and bars operator XP Factory (LON: XPF) shares have been rising since the beginning of October and the improvement has accelerated this week with a 36.9% rise to 19p. In the first half of 2022, revenues were £8.12m and it is on course to be profitable next year. Finance director Graham Bird bought 100,000 shares at 13.25p each. John Story has reduced his stake from 8.7% to 4.88%.
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Fallers
Shares in DeepVerge (LON: DVRG) slumped 62.9% to 2.875p after the company admitted that it was seeking to raise cash via a share issue to repay a loan facility agreed in March with Riverfort Global Opportunities PCC and YA II. A £500,000 repayment was due on 16 October, but this can be delayed if the whole loan and interest is repaid immediately after a fundraising. DeepVerge also needs more cash for working capital. There are no firm details and management is still trying to secure the funding.
Europa Oil & Gas (LON: EOG) fell by 50% to 1.1p because the Serenity SA02 well in the North Sea was not oil bearing. The gross well cost is forecast to be £10.4m with £4.8m paid by Europa Oil & Gas and £5.6m by i3 Energy (LON: I3E). WH Ireland has reduced its estimate for i3 Energy from 66p a share to 49.35p a share. The i3 Energy share price fell 15.5% to 23.2p. John Festival, chair of i3 Energy bought one million shares at C$0.355 each and chief executive Majid Shafiq acquired 206,607 shares at 24.2p each.
Bion Holdings (LON: BION) has returned from suspension following the publication of results for the 16 months to April 2022. The operating business was sold at the end of the period and the company is a shell. Bion raised £1m in a placing at 0.3p a share and the cash was received after the balance sheet date. There was a two-fifths drop in the share price to 0.15p. It will not complete a reverse takeover by 20 October, so the shares will be suspended again.
Sierra Oncology Inc is returning the rights to SRA737, which was jointly developed by Sareum Holdings (LON: SAR) and the Institute of Cancer Research, to the CRT Pioneer Fund. It is a treatment that targets cancer cell replication. Sierra Onclology was acquired by GSK in July. The share price fell by 37.2% to 135p.
Property lending platform operator Lendinvest (LON: LINV) fell on the back of a trading statement. The share price declined 36.4% to 62p. Platform assets under management are one-third higher at £2.4bn, but finnCap has downgraded its full year forecast. Interest rate volatility is hampering margins. Chief executive Rod Lockhart bought 27,111 shares at 67.5p each and chief investment officer bought 60,000 shares at 63.75p each. The July 2021 placing price was 186p.
