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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Oriole Resources PLC, up 62% at 0.166 pence, 12-month range 0.07p-0.28p. The West Africa-focused signs two non-binding heads of terms with Ghana-based mining and civil contractor BCM International Ltd for earn-ins by BCM at its Mbe gold licence in central Cameroon, and its Bibemi gold project in the north of the country. BCM will earn up to 50% interest in both, in return for certain staged commitments. The Bibemi HoT will see a payment of $500,000 in cash from BCM to Oriole before the end of the year, and a commitment from BCM for $4 million in exploration expenditure. The Mbe license HoT will also see BCM pay $1 million cash, and commit $4 million to exploration expenditure. ‘The structure of the deal sees a significant inflow of direct investment into resource development which will help fast-track our pathway to development. Whilst Oriole will be the operators of the early works, BCM will supply equipment and drilling capacity, with both parties working on an open book system as true partners in the venture,’ says Oriole CEO Tim Livesey of the Bibemi deal.
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RUA Life Sciences PLC, up 47% at 23.2p, 12-month range 11.13p-67p. The medical technology holding company focused on implantable biostable polyurethane Elast-Eon reports developments across its various businesses. Its Contract Manufacture responded to a formal bid request for a product range within its ‘implantable textiles sweet spot’, which has a potential revenue value of around £1.5 million, with another bid request expected in the coming months for a value of £500,000. Its Structural Heart Unit is exceeding expectations in terms of the development and testing of its material for the creation of heart valve leaflets. It expects to formalise an agreement soon to provide the material to a large heart valve company for its own testing. Its Vasular unit is now fully prepared to begin the testing regime agreed with the US Food & Drug Administration to achieve 510k approval. The budget would be around £6 million, and it plans not to fund the trials itself, instead exploring other options for third party funding, given the current cost of capital.
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musicMagpie PLC, up 25% at 23.43p, 12-month range 14p-46p. The Stockport, England-based used-technology reseller confirms it is in ‘early stage discussions’ with telecommunications provider BT Group PLC and asset manager Aurelius Group for the pair to make a takeover offer for musicMagpie. Talks are ‘ongoing and remain at a very early stage’, musicMagpie says. There is no certainty that an offer will be made, it says, but BT and Aurelius have a deadline of December 18 to announce a firm intention to make an offer or walk away.
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AIM - LOSERS
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Velocys PLC, down 60% at 0.279p, 12-month range 0.2p-5.8p. The sustainable fuels technology company receives a non-binding all-cash takeover offer from a consortium led by Lightrock LLP and Carbon Direct Capital Management LLC. The offer forms part of ongoing discussions with potential strategic investors over long-term funding for the business. The consortium offers 0.25p per share, valuing the firm at £4.1 million. The price represents a substantial discount, 63%, to the firm’s closing price on Friday of 0.68p. The consortium has indicated its intention to provide ‘significant additional funding’ to meet growth capital needs, as well as any near-term funds needed to complete the proposed takeover. ‘The evaluation of the proposal by the board and its advisers is ongoing and the board recognises that it should assess the proposal as a whole in light of the company’s very near-term funding requirements and significant long-term funding needs...The board is continuing engagement and discussions with the consortium and its advisers with a view to progressing and recommending the proposal,’ Velocys says
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