SMALL CAP MOVERS: Filtronic shares skyrocket after SpaceX deal

Missile shot? Increased? Got up? Whatever word you choose, the news is that Elon Musk’s SpaceX could become a big one Filtronic The shareholder has definitely set a fire under the AIM-listed microwave technology company.

Filtronic confirmed Wednesday that it will supply ‘E-band Solid State Power Amplifier’ modules for SpaceX’s Starlink satellite constellation under a $19.7 million deal.

In conjunction with the strategic partnership, Filtronic will issue a total of 21.7 million warrants to SpaceX, allowing the US rocket group to acquire 10 percent of Filtronic’s equity base.

Delivery of the first modules is scheduled for 2025, and order flow is expected to continue thereafter to support the continued deployment of SpaceX’s Starlink constellation.

SpaceX’s vice president of Starlink engineering Mike Nicolls called Filtronic an “excellent supplier for Starlink.”

Filtronic’s previously little-heard shares took to the skies, soared to the stars and so on, rising 43 percent over the week to reach a record high of 47.34p.

The AIM All-Share Index had an extremely solid week overall, rising 1.5 percent over the five-day session to reach 756 on Friday.

However, this was only half as good as the FTSE 100 index. Great profits from domestic big caps, including AstraZeneca, LSEG, Barclays, Reckitt and more (not to mention a strong performance from Microsoft and Google parent Alphabet on the other side of the ocean), sent the blue-chip index to a series of record highs amid a 2.7 percent weekly rally .

Speaking of all-time highs, how many small caps can claim to be at all-time highs right now?

This reporter hasn’t done the required research, but there are now at least two.

AIM-listed cosmetics supplier War paint London plc’s sales, margins and profits reached a record last year following significant growth across all geographic regions. Warpaint shares spiked to a record high of more than 500 pence, ending the week 8.5 percent higher.

Filtronic was not the only AIM member to benefit from collaboration with major companies.

ANGLE PLC Shares rose 30 percent after announcing a strategic partnership with AstraZeneca that aims to advance cancer drug development by improving ANGLE’s DNA damage response test.

The collaboration will specifically focus on adapting ANGLE’s existing Parsortix-based assay to identify micronuclei in circulating tumor cells (CTCs), a critical step in studying DNA damage responses.

Shares of ANGLE fell back a bit later in the week, but still closed a respectable 23 percent higher.

Basic Resources Ltd topped the small-cap leagues with a 131 percent gain on its share price. The mineral sands miner announced a merger with US-based Energy Fuels to create a global critical minerals company.

Tim Carstens, managing director of Base Resources, said the deal is the result of 12 months of discussions and will see the group focus on developing the world-class Toliara project in Madagascar.

Solid-state battery technology group Ilika had what is technically known as a week-long blinder, news-wise.

A trading update early this week showed cash and cash equivalents for the year were higher than expected due to cost-cutting activities following the 10-year deal with US company Cirtec. On Friday, Ilika told investors it is working with Tata’s battery company Agratas for a solid-state battery project.

Ilika shares as a result, sales increased by approximately 7 percent over the course of the week.

Ferrexpo plc shares rose 8.5 percent as production at the Ukraine-based iron pellet maker reached its highest point since the Russian invasion, while exports from the country’s ports have also resumed.

Technology created, the provider of data and technology services to the public sector, reached the top of the movers list with a share price gain of 43 percent. The group was awarded a new £19.5 million contract with the Department for Leveling Up, Housing & Communities, continuing a strong five-year partnership with the government agency.

Video streaming solutions provider Aferian plc was among the biggest weekly decliners in the junior market, with shares falling 40 percent to an all-time low.

In a trading update, African said revenues and profits will be at the lower end of previous expectations. A ‘further deterioration’ in trading in the Amino division has forced a further restructuring of the business and the company is seeking a refinancing deal with lenders.

Destiny Pharma said it is exploring “strategic options” to advance the development of XF-73 nasal, a breakthrough gel to prevent post-surgical infections. Shares fell 24 percent.

Ironveld plc fell by 80 percent after signing a £125,000 working capital loan with shareholder Tracarta.