Traders Cafe with Zak Mir: Asimilar, Bens Creek, GRIT, Zoo, Zoltav
It can be interesting on the stock market does not always act quickly on good news, while on the negative side there is usually an instant reaction. This former is what we have been witnessing at Asimilar (ASLR). The AIM quoted investing company focused on technology is a significant shareholder in All Active Asset Capital, who announced yesterday it was acquiring MESH. AAA said it was going to update shareholders on MESH, Sentiance, and AAQUA, as well as new listing plans. A delayed positive reaction on ASLR saw its shares up more than 15%.
There was some stock market pixie dust at Global Resources Investment Trust (GRIT) as it was announced that Richard Lockwood and Malcolm Burne will join the Board as Chairman and Executive Director respectively with immediate effect. This was of note for a couple of reasons, the first being that both Lockwood and Burne have extensive experience in the natural resources space, and second, that both are happy to be referred to as “veteran” fund managers. Shares of GRIT rallied over 50% during the session, taking the market cap to the £1m mark.
Those who like to live on the edge, may have been looking at Zoltav Resources (ZOL), the Russia-focused oil and gas explorer and producer. Earlier this month the company said that its main operating subsidiary, Diall, needs to cut costs and it may be "challenging" to maintain its licence obligations with regards to the Koltogor Licences, its offshore corporate structure, and the listing of shares on AIM beyond the next few months. Clearly, the latest 19% price suggests that some in the market enjoy the prospect of a binary bet, and are expecting a positive resolution to the situation.
B2B end-to-end digital music solutions group, Zoo Digital (ZOO) announced a £1m increase to its revolving credit facility with Investec Bank, bringing the total facility to £2m. The Enlarged RCF will mature in September 2023. Zoo said the enlarged credit facility provides low-cost capital that will satisfy its cash requirements as it transition to becoming EBITDA positive. It also stated that it has new contracts representing significant revenue that are “just awaiting signature”. The company expects to generate positive EBITDA for the full year of 2022. Shares of Zoo were up slightly by 1%.
Shares of market newbie Bens Creek (BEN) were up nearly 10% in the wake of news yesterday that the US-focused metallurgical coal miner has signed its first offtake agreement for wished Hi-Vol-B metallurgical coal with Integrity Coal Sales Inc. The agreement is for 22,000 short ton of product a month for a 12-month period from January 2022 until December 2022, and covers around 50% of the expected production volumes of Bens Creek's annual production under the existing mine plan. The company’s shares firmed up in the wake of a Vox Market interview with CEO Adam Wilson, who said he was looking for production to kick in November or early December.
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