AIM weekly movers: PetroNeft Resources set to sell Russian assets

PetroNeft Resources (LON: PTR) says that chief executive Pavel Tetyakov is a potential buyer for its Russian assets. This will require shareholder approval. The share price increased 133% to 1.05p. There is no indication of how much could be raised. Given current macroeconomic conditions the price PetroNeft can get for these assets may not be as much as investors hope. The current market capitalisation of £11.3m is well below the company’s $42.7m NAV at the end of June 2022. Much of that asset value is based on loans to WorldAce Investments.

Songtradr Inc launched an agreed bid for music streaming technology developer 7digital Group (LON: 7DIG) and the 0.695p a share offer values the company at £19.4m. The share price jumped 108% to 0.675p and it has not been at this level since September 2021. Songtradr is a music licensing company with a platform and technology that connects music rights holders to brands and content creators. Combining the businesses will simplify licensing and potentially accelerate growth. The acquirer has the cash to fund growth at 7digital.

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Managed IT and networking services provider AdEPT Technology (LON: ADT) is being acquired by a private equity backed Wavenet, which also provides telecom services. The 201p a share bid is a 75% premium to the previous market price it is still well below past levels. However, shareholders will not get the 2.5p a share interim dividend. The bid values AdEPT Technology at £50.3m. The share price improved by 65.2% to 190p.

Clinical communications technology developer Feedback (LON: FDBK) shares improved by 37.1% to 162.5p, which is the highest they have been since last April. Revenues are still modest, but they are starting to gain momentum. The £450,000 contract with a Sussex community diagnostic centre is up for renewal and should be worth much more when it is renewed. This contract will help to show other potential clients that the technology works. Other NHS trusts are showing interest in the company’s services. There was cash of £9.23m at the end of November 2022, so Feedback can finance further development and cover losses.



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Credit provider Morses Club (LON: MCL) has cancelled its AIM quotation and the share price fell a further 52.6% to a new low of 0.21p ahead of this. Asset Match will provide a matched bargains facility for the shares.

Oil and gas producer IOG (LON: IOG) admits that the Southwark A2 well in the southern North Sea was not commercial because of a disappointing gas flow rate and the share price is slumped by 41% to 4.72p. A second well on the licence area may be delayed. The 2023 capital investment programme for all the group’s projects is being reassessed. A €100m Nordic bond matures in September 2023 and this will need to be refinanced. Premier Miton has cut its stake from 10.5% to 4% and Lombard Odier reduced its shareholding from 7.97% to 2.96%.

esports company Gfinity (LON: GFIN) requires more cash in March so management wants to raise £1.5m via a share issue. That will finance a corporate restructuring, invest in the Athlos technology platform and help the company to move towards breakeven. The share price dived by 34.7% to 0.235p. Gfinity has a market capitalisation of £3.1m, so the proposed share issue will be highly dilutive.

Julian Baines has returned to an executive role at EKF Diagnostics (LON: EKF) on an interim basis and chief executive Mike Salter will step down from the board and concentrate on the fermentation capacity expansion in Indiana. The cost of the project has risen from $9.7m to $14.2m. The 2022 profit is lower than expected and net cash of £11.4m, including £2.4m in Russia, is below expectations. A new chief executive will be recruited. The share price is 27.4% lower at 28.5p.

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