The following stocks are the leading risers and fallers on AIM in London on Monday.
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AIM - WINNERS
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Wentworth Resources PLC, up 20% at 30.06 pence, 12-month range 19p-32.9p. The Tanzania-focused natural gas producer agrees on the terms of a potential takeover by Etablissements Maurel & Prom. The offer is for 32.5p per share in cash, valuing Wentworth at around £61.7 million. Wentworth’s directors consider the offer to be ‘fair and reasonable’, and recommend its shareholders vote in favour of the takeover at the upcoming court and general meetings.
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Petro Matad Ltd, up 13% at 2.10p, 12-month range 1.6p-5.1p. The Mongolia-focused petroleum explorer notes progress in the Mongolian government’s certification of its Block XX exploitation license area. Petro Madad also reports that Mongolia has announced 14 new blocks are available in a new exploration tender. ‘With its extensive database, technical expertise and operational experience Petro Matad has a significant competitive advantage as the country’s leading explorer and intends to participate in the licencing round with a view to signing some new production sharing contracts,’ the firm says. In addition, the firm notes that negotiations with DQE drilling have continued, with discussions over the multi-well development drilling programme contract ‘in the final stages’.
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AIM - LOSERS
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Fulcrum Utility Services Ltd, down 44% at 1.89p, 12-month range 1.89p-14.71p. The multi-utility infrastructure and services provider’s stock hits a 12-month low as it agrees a £6 million convertible loan facility with Harwood Capital Management Ltd and Bayford & Co Ltd. Fulcrum notes the proceeds from its December fundraise were used to repay its existing debt and as working capital, rather than the initial goal of supporting its entry into the smart meter infrastructure market. This was due to a shift in priorities amid wider market pressures due to inflation and supply chain issues. ‘Clearly the situation that the company has found itself in is disappointing. Whilst it was known that the company had legacy operational issues, these were deeper and more longstanding than anticipated,’ says Chair Jennifer Babington.
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RBG Holdings PLC, down 22% at 65.15p, 12-month change 58.51p-106p. The professional services firm notes its litigation finance subsidiary, LionFish, has lost two of the cases that it has invested in. ‘Following a review, the Board has now concluded that any further appeals on these cases are no longer viable,’ RBG says. Consequently, Lionfish will incur a non-cash write-off of £4.0 million this year, meaning it will miss board expectations of £2.3 million profit. ‘I am very disappointed with the LionFish position. We are taking steps to address the ongoing exposure to this subsidiary,’ says Chief Executive Officer Nicola Foulston.
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