MOVERS OF THURSDAY 22 OCTOBER 2020
(LON:MAB ) shares rose 7.23% to 151.5p despite outlook
Shares in the restaurants and pub operator saw some light relief despite recently reporting a slump in sales and facing an outlook that remains ‘challenging and uncertain’. Reports also emerged last week that said the group was opening redundancy consultations for staff.
The London-listed Company which owns around 1,700 pubs and restaurants and has 44,000 employees on its payroll has not yet disclosed how many jobs are at risk of being cut.
In a trading update, Mitchells said total sales for 51 weeks ended 19 September 2020 fell more than 35% due to a sharp slump in demand caused by coronavirus-led store closures.
Despite sales rebounding in August following the chancellor’s Eat Out to Help Out discount scheme and the VAT cut, growing by 1.4% compared to 2019, the All Bar One owner has now said that current financial support from the UK government remains insufficient and would not offset losses as a result of more local lockdowns and 10pm curfew.
“The future remains both challenging and uncertain, with only this week a curfew and other additional restrictions being imposed on how and when we can operate. However, we believe we are well placed to meet that challenge and to keep Mitchells & Butlers at the forefront of the eating and drinking-out market,” said Phil Urban, CEO of M&B in a previous statement.
Shares in the company have more than halved in value since the beginning of 2020.
(AIM:AST ) shares rose 21.08% to 5.6p with potential settlement breakthrough
The natural resources company rose as high as 26% to 5.85p in early morning trading after announcing that it may have found a solution in order to settle a dispute in Slovenia.
The onshore Caribbean, Hispanic American and European firm said it was entering into direct negotiations with the Republic of Slovenia to settle the dispute amicably. It said all such negotiations will be carried out on a strictly confidential, without prejudice and privileged basis.
The Company previously served notice of its dispute with Slovenia in July 2020 under the terms of the UK-Slovenia bilateral investment treaty and the Energy Charter Treaty.
Ascent further confirmed that negotiations with the Government of the Republic of Slovenia shall not prejudice its rights to pursue its investment treaty claim under the BIT and ECT.
(AIM:DDDD) shares rose 15.56% to 108p with proposed merger
The pharmaceutical company announced this morning its intention to merge with Longevity Acquisition Corporation where it will receive a cash injection of US$14.6 million as a result.
The enlarged group expects to launch a new American Depositary Receipt programme and will apply to admit its American Depositary Shares for trading on NASDAQ under 'LBPS'. Meanwhile, 4D will also maintain its current listing on AIM, under the ticker symbol 'DDDD'.
Longevity shareholders will own c.13.1% of the merged company’s equity while 4D will own the rest. The enlarged listing on NASDAQ is expected to become effective in early 2021.
“Despite the tremendous operational and economic challenges in 2020 created by the global pandemic, 4D has made significant strides on a number of fronts,” said CEO, Duncan Peyton.
He highlighted that the Company believes that a NASDAQ Listing will allow 4D to capitalise on increased interest from US healthcare investors in recent years and provide access to a much larger pool of specialist capital, thereby increasing our global profile and exposure.
“The Merger will accelerate and de-risk 4D's admission to NASDAQ, while providing immediate access to additional funds to support our pipeline,” said Peyton, acknowledging that NASDAQ is “an attractive market for growing, innovative biotech companies.”
(AIM:FUM ) shares rose 16.67% to 15.75p as it seeks FDA approval
The pharmaceutical firm is seeking marketing approval for its breakthrough, topical gel formulation for treatment of erectile dysfunction (ED) in Europe and the US, and potentially other regions, for use as a clinical treatment without the need of a doctor’s prescription.
The group said it continues to work proactively with the FDA to confirm the design of the requested supplemental clinical trial to provide the necessary reassurance of MED3000's efficacy for up to six months.
The group’s previous 1,000 patient study (FM57), which reported results in December 2019, met all its primary endpoints against a pre-treatment baseline and across all ED severities for efficacy for up to three months and also provided extensive safety reassurance.
The Company is pleased to confirm that following its third pre-submission meeting with FDA, there was preliminary agreement on the design and scope of this small supplementary study, known as "FM71" subject to the issue of the final meeting minutes.
The final study protocol can only be completed once the FDA minutes have been received.
The Company said detailed planning for the study has commenced and Futura is targeting Q1 2021 patient enrolment depending on completion of the final study protocol for FM71.
"We are happy to see continuing, positive regulatory progress for MED3000 in parallel with advancing commercial discussions and the board is hopeful of signing at least one agreement with a third party,” said James Barder, Chief Executive of Futura Medical.
(LON:SHB ) shares fell 15.38% to 421.2p with intention to raise £307m
Shares in the British real estate investment trust which invests exclusively in the heart of London's West End fell this morning after it asked shareholders for a lifeline of £307m.
It said the proceeds will ensure it maintains the financial flexibility and resources to navigate the unprecedented near-term operational challenges caused by the Covid-19 pandemic.
Commenting on the Capital Raise, Brian Bickell, Chief Executive said that it would also mean Shaftesbury wild be “well-placed to benefit from the gradual return to more-normal patterns of life and activity that have always made London's West End an unrivalled global destination.”
‘Until the current Covid-19 pandemic situation is brought under control, there is a risk that the Government may implement further measures or tighten existing restrictions,’ said the FTSE 250 group. The group told investors last month of its concerns on facing tighter restrictions.
Although the West End has a long-term availability/demand imbalance, the Group said it has seen a decline in portfolio occupancy over this unprecedented period with lettings and lease renewals during this period amounted to £22m, compared with £33.5m in the previous year.
With London currently under a Tier 2 alert system, which means enforcing a 10pm curfew, the rule of six and furthersocial distancing, a significant reduction in trade is expected.
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