Cineworld Group (LON:CINE ) shares rose 8.97% to 28.1p as investors continue to offer light relief
Shares in Cineworld continue to see some light relief for the second day in a row today reaching highs of 28.37p during afternoon trading.
In recent weeks, shares in Cineworld Group have been trading over 87% lower than the start of 2020, meaning that the stock is sitting at its lowest level since markets crashed in March.
The cinema group now has net debt of almost $8.2 billion as recorded at the end of June.
IG Bank said a possible future takeover would rely on the buyer having belief in the long-term future of the cinema industry, ‘which is now in question as streaming sites gain traction.’
Recently, analysts at Bank of America have warned that Cineworld could run out of cash within weeks, forecasting that it could burn through £324m cash in the next six months.
According to the Evening Standard, the firm is also facing a High Court demand from AEW UK for £0.308m in unpaid rent between March and June this year during national lockdown.
While doors remain unlocked, the Cinema group has also continued certain developments, with its long-awaited IMAX extension continuing to progress in Ashford, KentOnline reported.
The online news site highlighted that work is continuing despite the closure of cinemasand that once major releases are due back on screen, the firm will bring its sites back into use.
However, for now, the cinema group remains closed until further notice in the UK and US.
Vela Technologies (AIM:VELA ) shares rose 21.57% to 0.0775p after acquiring interest in potential COVID-19 treatment for diabetics
The investment company announced that it has acquired an economic interest in a late-stage Phase II therapeutic project to develop a potential coronavirus treatment for diabetics.
The Company is investing £2.35m in the project, partly funded by a £1.25m raise via a placing of new ordinary shares at 0.065p for an interest in the potential asset from St George Street.
Under an agreement entered into back in August 2019, SGS acquired the right to develop and commercialise two assets from a major global pharmaceutical firm, one of which includes the licence to a drug that could benefit diabetic patients suffering with COVID-19.
Diabetics have significantly higher mortality compared with non-diabetic patients with COVID-19, and in clinical studies the drug, SGS002, has been found to be safe in almost 1,000 patients with diabetes and has a blood glucose lowering effect for four months.
Shares in Vela Technologies have increased 250% in value since August 2020.
“Vela looks forward to providing shareholders with news on the outcome of these trials as this highly regarded team pursues its quest for a drug to provide a therapeutic treatment for the effects of COVID-19 on diabetic patients,” said James Normand, Executive Director of Vela.
In a separate statement, the group posted its half-year results for the six months ended 30 September 2020 which it said represented ‘a significant period of activity’. Chairman, Brent Fitzpatrick, said Vela is positioned on ‘a stronger financial footing’ with a solid investment portfolio as well as a strong pipeline of near-term investment opportunities.
Vela is now debt free and well capitalised with a portfolio of six investments, holding cash on deposit as at 30 September 2020 of £1.628m. Post period end, Vela invested £0.25m in Mode Global Holdings plc, a UK-based fintech group, as announced on 5 October 2020.
Panthera Resources (AIM:PAT ) shares rose 30.23% to 14p as it awaits drilling results
The mining company took to noting a large rise in its share price this morning, confirming to investors that it has announced all material events as required under the AIM listing rules.
Panthera said it continues to build on its foundations in West Africa and grow its high potential gold portfolio in the region. Results from its planned fieldwork programme at its Bassala Project located in southwestern Mali are anticipated for December 2020.
As well as the work programme, a ground magnetic survey has been commissioned to cover the entire tenement area using geophysical contractor EurekaGeo Geoscientist Consultants which is due to commence in early November and to be completed that same month.
The aim of these work programmes is to define and rank drill targets for a drilling programme which is expected to commence in the first half of 2021.
Financial news source, The Armchair Trader, said the gold exploration and development group had increased 65% in value yesterday, pushing a market cap of around £9m by close.
‘As we’ve seen elsewhere in recent days, there’s no news out yet but expectations of drilling results in the near term are buoying sentiment,’ the publication wrote yesterday afternoon.
Caspian Sunrise (AIM:CASP ) shares rose 12.50% to 1.8p with offshore acquisition
Kazakhstan-focused group Caspian Sunrise announced yesterday that it had completed the acquisition of a semi-submersible drilling barge, marking its first step into offshore drilling.
The Company, which is mostly focused on onshore oil and gas activities, proposed the acquisition of the Caspian Explorer shallow water drilling vessel back in January 2020.
Caspian said yesterday that a $25 million headline consideration for the acquisition of the vessel would be satisfied by the issue of 160,256,410 new Caspian Sunrise shares at a price of 12p per share, which in January 2020 was a 28% premium to the prevailing share price.
‘Given the sharp decline in the Company's share price the Caspian Explorer purchase price for accounting purposes based on current prices is approximately $3.2 million,’ it noted.
‘To date there are no confirmed bookings for the Caspian Explorer. We believe however, that as exploration activities resume in the shallow northern Caspian Sea we shall over time see interest in chartering the drilling vessel,’ the company said.
The vessel is capable of drilling exploration wells to depths of up to 6,000 meters in extremely shallow water. The Company said it plans to use it in the North Caspian Sea.
The vessel was constructed in the Essay shipyard in Kazakhstan between 2010 and 2011 for a construction cost, according to Caspian Sunrise, believed to be around $170m. The total costs after fit-out are believed to have been around $200m, the Company noted.
Clive Carver, Caspian Sunrise Chairman said, "It is good to finally complete the acquisition approved by shareholders back in February. We look forward to the barge once again being active in the shallow northern Caspian Sea."
Trainline (LON:TRN ) shares fell 13.15% to 289.2p as investors react negatively to the stepping down of CEO Clare Gilmartin
Shares in the independent rail and coach platform slumped after it announced that its CEO, Clare Gilmartin, will be stepping down from the role at the end of February 2021.
Clare will remain involved as a Senior Advisor, supporting the management team and Trainline's wider industry partners in order ‘to drive industry digitisation and long-term growth.’
COO, Jody Ford, will succeed Clare as CEO. She was previously CEO at Photobox Group, encompassing the Moonpig and Photobox brands, and has led ‘global growth’ at eBay Inc.
"The decision to step down next year is a personal one; after seven years at the helm the time has come for me to spend more time with my family,” said Gilmartin this morning.
The trainline company suffered hard times during the COVID-19 pandemic, with net ticket sales down in the first quarter of the financial year as industry passenger volumes in the UK fell to c.5% of the same period in the prior year through April and May.
In a recent trading update, the group said it had also processed a significantly higher number of refund requests - more than 2 million in the UK alone. As a result, Group net ticket sales in Q120 declined to £79m, equivalent to 9% of the same period in the prior year.
According to financial news website, MarketWatch, Gilmartin sold 800,000 shares at £4 per share — some 38% above Tuesday’s price - at the end of August.