Cannabis-related investment company Greencare Capital (GRE) joined the NEX Exchange Growth Market last Monday. Greencare raised £514,000 at 25p a share. The rest of the shares were issued at 1p each, raising £100,000. The pro forma NAV is just over 4p a share. The largest shareholder is E Value One with 66.3%, which is owned by Dominic White, who is chairman of fellow NEX Exchange quoted company Eight Capital Partners (ECP) which has a 21.2% stake. Eight Capital acquired 1.5 million of its shares at 1p each and 1.06 million at the subscription price – just over 50% of the subscription shares. Greencare has already identified its first investment, which is a consumer-focused distribution business that has a leading position in one of the larger European markets. The distribution activities cover 30,000 points of sale and that could increase to 45,000. The plan is to acquire an initial 10% stake. Due diligence is being carried out and the investment could be made early in 2020.
European Lithium (EUR) has agreed €7.5m of debt financing that lasts two years and has an annual interest charge of 5%. This is secured on the Wolfsberg lithium project in Austria. The cash will fund the completion of the definitive feasibility study and repay the existing convertible note facility. The Wolfsberg mining and exploration licences have been extended.
BWA Group (BWAP) says that its subsidiary has been awarded an exploration licence in central Cameroon. This will enable the assessment of commercial exploitation of rutile sands, kyanite, ilmenite, zircon and other minerals. The permit lasts for three years with a financial commitment of £650,000 over the period. This has taken four years to negotiate.
Walls and Futures REIT (WAFR) has completed the redevelopment of its Didcot property and it has been let on a 25-year lease to a large care provider. NAV was £3.3m at the end of September 2019.
VI Mining (VIM) has secured a partnership with an established operator in Peru so that commercial operations can commence at the Cushuro mining concession in the second quarter and the Oro Pesa plant can be up and running in the third quarter. They will be owned by 50/50 joint ventures. The Minaspampa and Rosario de Belen concessions are being returned to the previous owners, although VI Mining will have a buy-back option.
Healthcare professionals recruiter SG Recruitment Ltd (SGRL) grew interim revenues by 13% to £386,000, while operating costs were halved. There was still a £379,000 loss. SG has secured a contract with Leeds Teaching Hospitals NHS Trust covering seven hospitals. Further mandates are expected from the NHS and in the Middle East.
Adnams (ADB) director Guy Heald has increased his B shares stake from 15.1% to 17.15%.
Alexander David Securities has resigned as corporate adviser to EcoVista (EVTP) and trading in the shares has been suspended until a replacement is appointed.
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