Small Cap Market Report: Featuring i-nexus Global, Hydrogen Group, Arix Bioscience, Verona Pharma and Seeing Machines
i-nexus Global plc shares skyrocket 87% to 6.28p as the Company achieves Break Even
i-nexus Global (AIM:INX) has rebuilt its sales pipeline to pre-coronavirus levels which it said comprises live opportunities with a potential estimated total ARR value of around £1.8m.
The software solutions specialist issued a positive trading statement confirming it had lowered costs by reducing its monthly operating cost base, from over £0.85m to £0.36m.
As a result, i-nexus is now operating at a monthly break-even. The group also reported trade debtors exceeding £0.8m and a positive cash balance of around £0.19m at end July 2020.
Meanwhile, the Company said its new summer product which was launched last week has been ‘positively received’ and that it has secured a new customer on a multi-year contract.
‘While this level is ahead of its year-to-date nadir of 3.25p seen in May, it is far behind where it started the year, with the price of 16.50p through January,’ reported UK Investor Magazine.
Hydrogen Group Plc shares soar 37.50% to 38.5p on News of a MBO
Hydrogen Group is to delist from AIM and buy out shareholders at 40p a share, offering investors up to 56% of the company’s issued share capital which has sent shares upwards.
The group also released a half-year report in which it stated that its first half performance was ‘significantly hurt’ by the COVID-19 pandemic, leading to a 93% slump in pre-tax profit.
As a result, the company said it has been unable to fully utilise its quotation on AIM to issue ordinary shares either as consideration or to raise fresh capital to execute acquisitions.
The Board said forward visibility continues to be very poor and it remains mindful of the impact that a second wave of the pandemic may have on demand levels for the business.
Arix Bioscience shares increase 29.30% to 101.5p following strong progress
The venture capital group has published its half-year results for the six months to 30 June showing a 24% increase in NAV and entering 2H20 with “strong momentum.”
The company’s gross portfolio value rallied to £203.4m from £149.2m at the end of 2019 which it said was achieved by solid clinical and financial progress of its portfolio companies.
Arix is targeting an annual IRR of 15% to 25%, generating a NAV of up to £500m by 2023.
On the Analyst Call, Dr Naseem Amin, Executive Chairman of the group, said he views the target NAV as ‘challenging but achievable’ due to several factors, including the relatively nascent status of its portfolio as well as the targeted therapeutic areas which the pirtfolio has exposure to, particularly Oncology.
Amin also cited future potential for M&A, strategic partnerships and other financing events which he said could significantly increase the value of its portfolio, and in turn its NAV.
He added, “Whilst the development of important new medicines always carries risk, over the next three years we expect to see at least two additional IPOs across the portfolio and at least two exits.”
Verona Pharma plc shares jump 24.00% to 77.5p after kick-starting pilot study
Clinical-stage biopharmaceutical firm focused on respiratory diseases, Verona Pharma (AIM: VRP), has initiated a pilot study to investigate US patients hospitalised with COVID-19.
The group will use the study to investigate the efficacy and safety of its ensifentrine product delivered via a pressurized metered-dose inhaler (“pMDI”) formulation in the patients.
“The need for effective COVID-19 treatments to reduce the disease burden is clear and we believe ensifentrine, with its novel mechanism of action, could help to improve patient outcomes,” said David Zaccardelli, Pharm. D., President and CEO of Verona Pharma.
He added, “If the pilot study is successful, we are committed to progressing ensifentrine as a treatment for COVID-19 and, if approved, increasing supplies to meet public health needs.”
Verona recently reported “significant progress” in its Q2 2020 and noted that it remains on schedule to kick-start two clinical trials of lead drug, ensifentrine, before the end of 2020.
The group met its objective of securing financing after a £159m private placement. As a result, Verona ended the six months to June 30 2020 with net cash of just over £18m.
Seeing Machines shares were up 9.03% to 3.925p after signing MOU
The group has inked a MOU with a global semiconductor company as the formal terms of engagement are finalised in order to licence its Occula Neural Processing Unit.
The group, which specialises in AI-powered monitoring systems, said the collaboration represents the third pillar of its recently launched embedded product strategy.
“Licensing our unique IP in this way allows us to distribute our technology through major auto and technology suppliers onto complementary platforms,” said CEO, Paul McGlone.
Shares in Seeing Machines have increased over 160% since lows of 1.45p in March 2020 and were trading 9.72% higher at 3.95p in early morning trading following the announcement.
According to Stockopedia, the upward trend in the group’s share price over the past three months (on a relative price strength basis, the price is up by 26.9%) is ‘a promising sign.’