Shares in Orcadian Energy (LON: ORCA) were the best performer on the week and the price quadrupled to 14.25p following the announcement that it has entered non-binding heads of agreement with a North Sea operator to farm out the Pilot project for a full carry until first oil. Orcadian Energy would retain a 18.75% working interest. The agreement includes the drilling of five subsea wells. Orcadian Energy will receive $100,000 when the agreement is completed, plus $100,000 if it is awarded an additional licence. Field development plan approval would trigger a payment of $3m. The company joined AIM in July 2021 at a placing price of 40p.
Scancell (LON: SCLP) reports that early data from the phase II SCOPE study of SCIB1 in combination with checkpoint inhibitors as a treatment for advanced melanoma are positive. Tumour reduction at 13 weeks is 31-94%. This is for a relatively small number of patients, but it does indicate that there is strong potential for the treatment. The second stage of the study has a strong probability of success. This data will be available in the first half of 2024. Potential partners are likely to be interested. The share price improved 60.4% to 16.2p. This is the highest the share price has been since April.
Clean water technology developer MYCELX Technologies Corp (LON: MYX) increased interim revenues by 51% to $5.6m and reduced its loss. The momentum is continuing in the second half and this should continue as environmental regulations are tightened. Canaccord Genuity forecasts a full year loss of $1.6m and it expects at least breakeven in 2024. The share price jumped 49.5% to 72.5p.
Vela Technologies (LON: VELA) shares jumped 44.7% to 0.0275p on the news that Conduit Pharmaceuticals was completing its IPO and started trading on Nasdaq on Friday. This will trigger the option to sell the interest in AZD1656, which relates to a Covid application, to Conduit Pharmaceuticals for £4m.
FALLERS
Eqtec (LON: EQT) announced that the Billingham waste-to-energy project is not going ahead. Potential customers have closed facilities and the project is behind schedule. So far, £4m has been invested. There is a possibility of getting some of this cash back. Eqtec is also taking legal action against its partner in the Deeside project, seeking repayment of £4m of loans. The focus is other European markets. Forecast 2023 revenues have been slashed by more than three-quarters to €2-3m. Net debt is expected to be €5.7m and double that at the end of 2024. More cash will need to be raised. The share price dived 51.6% to 0.075p.
Trading has deteriorated since August at replacement windows supplier Safestyle (LON: SFE) and it is expected to lose £10m in 2023. Order levels are falling short of budget. Net debt could reach £6m at the end of 2023 – the credit facility is £7.5m. Management wants to strengthen the balance sheet. The share price slipped 39.9% to 4.81p.
Harvest Minerals (LON: HMI) reported interims showing a near-doubled loss as demand for fertiliser fell and pricing was lower in the period. The second half sales are normally much greater than in the first half, but they continue to be disappointing. Low crop prices mean that farmers are not investing to boost production. Cash has declined and the company has moved into net debt of £1.4m, partly due to a jump in inventories. The share price fell 39.5% to 1.3p.
Shares in Strix (LON: KETL) slumped on the decision to cut the interim dividend from 2.75p/share to 0.9p/share because of high borrowings. Acquisitions have pushed up net debt to £93.1m. There was a strong contribution from recent acquisition Billi, but the economic recovery has been slower than expected hitting kettle controls revenues. Revenues are recovering, but higher interest rates meant that interim pre-tax profit has dived from £11.6m to £5.7m. Chief executive Mark Bartlett bought 51,732 shares at 57.7p each, which helped the share price to recover at the end of the week, but it was still down 34.4% to 59.9p.
