The following stocks are the leading risers and fallers on AIM in London on Wednesday.
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AIM - WINNERS
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Horizonte Minerals PLC, up 27% at 10 pence, 12-month range 7.53p-172p. The nickel mine development company secures a $20 million interim funding package from OMF Fund III (F) Ltd, La Mancha Investments Sarl, and Glencore International AG. The package is comprised of a $15 million senior secured loan facility - with $5 million from each lender - and the release of $5 million from OMF which was previously segregated for the Vermelho mine. The funds will be used to progress ‘critical construction streams’ at its flagship Araguaia nickel project in Brazil, as well as for general working capital purposes. ‘This funding package is a demonstration from the company’s largest shareholders on their commitment towards finding a solution to complete the Araguaia nickel project construction. We are actively engaging with our cornerstone shareholders and senior lenders with the goal of unlocking a funding solution in Q2 2024,’ says Interim CEO Karim Nasr.
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AIM - LOSERS
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Tern PLC, down 24% at 3.23p, 12-month range 3.01p-11p. The investor specialising in supporting early-stage ’internet of things’ technology businesses notes a series B fundraising round for Device Authority Ltd, in which it holds a 53.8% stake. Device Authority agrees up to $7.0 million in new equity investment from Ten Eleven Ventures and $300,000 from Alsop Louie Capital 3, via the conversion of short-term loans. The first tranche of the fundraising is $4.0 million and is expected to complete before the end of the year, with the second tranche contingent on UK approvals. Tern says it will convert $2.1 million of convertible loan notes into equity in the firm. Device Authority will repay in cash $175,000 of short term loans provided by Tern, as well as accrued interest. After the first tranche, Tern’s holding will reduce to 35.7%, and then will fall to 29.5% once the second tranche completes. ‘Whilst the valuation of the Device Authority fundraising reflects the current venture capital market conditions, importantly we believe that it will provide the growth platform that will enable a premium valuation on exit and a substantially greater return for Tern’s shareholders in the future,’ says Tern Chair Ian Ritchie.
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Mobile Streams PLC, down 12% at 0.60p, 12-month range 0.06p-0.16p. The mobile content provider says its pretax loss in the financial year ended June 30 widens to £3.8 million from £2.5 million a year before. Revenue rises to £1.8 million from £1.0 million, however cost of sales jumps to £1.8 million from £572,000, dragging the firm’s gross margin down to 1% from 44%. This reflects ‘the inclusion of significant upfront royalties on [non-fungible token] contract revenues’, it says.
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