SMALL CAP MOVERS: Kanabo surges amid hopes for inhaler approval

It was a bad week for the lower echelons of the real estate market, resulting in five bad trading days for junior stocks compared to the broader positive trend.

Purple bricks fell nearly 15 percent on Friday after putting itself up for sale following a profit warning.

The online brokerage firm eventually came to the conclusion that an alternative ownership structure would work well and a strategic refocus is now underway.

Chief executive Helena Marston admitted that the implementation of her go-to-market strategy “caused more near-term disruption to our performance in Q3 than expected,” though she is confident of a return to positive cash generation in early 2024.

For the time being, annual turnover is expected to be lower than expected.

Elsewhere, Home REITwhich invests in sheltered housing for the homeless, said it received an unsolicited approach from Bluestar Group on Thursday regarding a possible bid.

The shares, which have been suspended since Jan. 23, have been hit hard as short sellers have slammed the company, finances and management.

On Thursday, it delivered a rather gloomy assessment of current trading and outlook, which will have cost the stomachs of those still holding stocks.

So Bluestar, which has until March 16 to make things formal, has plenty to think about before finalizing the offer, if one comes at all.

Turning to the broader small-cap market, the AIM All-Share Index finished the week 0.7 percent lower at 899.99 after moving inversely towards the FTSE 100, its blue-chip benchmark, which was released at the same time as It rose 1.3 percent over the period when it moved above 8,000 and into record territory.

It’s been a rollercoaster week for investors in Creo Medicalbut one that ended positively for both management and investors.

After asking the city to raise £25m through a new share placement at 20p, the med-tech group found resounding support for the cash call and raised £28.5m, leading the group break even.

It could raise a further £5.2 million from an open offering of shares at the same price.

Those who signed up for 20p currently have a 60 percent return on that investment.

The shares, which are currently exchanging hands for 32p, are worth 99p, according to the abacus rattlers at corporate broker Cenkos.

One of the other small cap highlights was listed by default Kanabowhich added nearly 17 percent to 4.04 pence during the weekly session as investors weighed the promise that its cannabis inhaler will receive European CE approval in the third quarter of 2023.

According to Tuesday’s company update, Kanabo’s entry was made in conjunction with its manufacturing partner and the group hopes to provide an update “in the coming months.”

Bidstack Shares rose more than 10 percent to 1.84 pence on Wednesday after the in-game advertising firm announced the appointment of Thomas Bullen as chief financial officer.

Chairman David Reeves mentioned Bullen’s “experience in mobile advertising technology and high-growth companies” in the announcement.

Moving to the mining and resources segments, Mkango Resources fell by more than 21 percent – although for the right reason (if that doesn’t sound contradictory).

On Monday, the rare-earth specialist said it would raise £3.5 million from an equity offering consisting of a placement and subscription of shares for 12.5 pence.

The money will be used to finalize plans for the Songwe Hill project in Malawi and to begin construction of a magnet recycling facility in Germany.

A number of companies posted impressive double-digit profits.

Harvest minerals received a double boost following an optimistic trading update and a positive court ruling that sent shares up 21 percent to 9.6 pence during Tuesday afternoon trading.

According to a trading update, the AIM-listed fertilizer producer reported unchecked cash of A$2.7 million in 2022 compared to A$1.7 million in 2021.

In a separate statement, the company said it will receive $463,000 in damages after a Brazilian court rules in favor.

Technology Minerals Stocks were stimulated by developments at its battery recycling partner, Recycling.

Recycling was issued a Schedule 5 Notice by the Environment Agency as part of the permit application for its lithium-ion recycling plant in Wolverhampton, the final stage before a license is determined. The group ended the week 20 percent higher at 1.38 p.

Finally, Power Metal Resources rose 7 percent to 1.20 pence on a report that drilling of the Berringa gold mine project in Victoria, Australia, was going well with visible gold found in all three holes completed to date.

“This is very encouraging,” said chief executive Paul Johnson, “and we look forward to receiving detailed test data as soon as possible.”

Power Metals is working on the Berringa project as a joint venture with Red Rock Resources.