Oil, gold and Bitcoin rarely appear in the same sentence. Yet this week, London’s small-cap companies have made them unlikely bedfellows.
Union Jack Oil is eyeing early monetisation at its West Newton gas field by channelling natural gas into Bitcoin mining, in partnership with Texas-based 360 Energy.
A feasibility study is complete, and a formal deal is on the cards, with the aim of turning surplus gas into power for crypto data centres. The shares ended flat on the week.
Elsewhere, ECR Minerals, the London-listed gold explorer, is preparing for production in Australia by adopting a digital asset treasury strategy.
The company can now allocate up to half its surplus cash and gold production proceeds to Bitcoin, seeing it as both a hedge and a store of value. Investors welcomed the pivot, with the stock rising 17 per cent.
Digital assets are also reshaping the way capital is raised.
A feasibility study is complete, and a formal deal is on the cards, with the aim of turning surplus gas into power for crypto data centres.
Satsuma Technology has secured a record £163.6million in a convertible loan note, settling much of the raise in Bitcoin, an unprecedented step for a London-listed firm.
Meanwhile, The Smarter Web Company’s Bitcoin-denominated convertible bond attracted $21million in backing, blending traditional funding with cryptocurrency exposure.
Together, these moves show how small-caps are using Bitcoin as both a financial tool and a funding source, giving old sectors a distinctly new twist.
Now to the wider small-cap market. After a couple of weeks in the doldrums, AIM rediscovered its mojo, posting a 0.6 per cent gain to 761.34, marginally outperforming the FTSE 100.
The stand-out performer, up 133 per cent on Friday, was Trellus Health, which surged on no news. How long this remains the case is unclear.
The last update, over a month ago, focused on efforts to reduce cash burn and extend its runway to November.
The group, which has a platform to help manage chronic conditions such as inflammatory bowel disease, is being trialled by Johnson & Johnson. Perhaps we are soon to hear an update on this collaboration.
SIMEC Atlantis Energy ended the week 76 per cent higher.
The catalyst was the financial close of its AW1 battery storage project at Uskmouth.
This is a key step in advancing the UK’s low-carbon energy ambitions, with the facility expected to deliver annual revenues of around £13million and average earnings of £9million over its first five years.
Up 70 per cent, Europa Oil & Gas investors were cheered by news it has struck an outline deal with a major energy company to farm out an interest in the EG-08 offshore block in Equatorial Guinea.
Chief executive Will Holland said he was ‘confident’ of inking a definitive deal, which would pave the way for drilling of its primary prospect, Barracuda, thought to host significant gas accumulations.
Now to the week’s casualties. Leading the pack was restaurateur Tasty, mentioned in last week’s columillion.
It was down 27 per cent, but for the right reasons, if that makes sense. Having brought on David Page, the driving force behind Pizza Express, the task was then to recapitalise the business.
It has raised £9.6million, which will be used to upgrade the existing portfolio, including the Wildwood chain, and implement new technology. The group is also on the hunt for deals.
ImmuPharma results on Wednesday appeared innocuous, but were used by some backers as a cue to lock in profits. Such is the illiquidity of the market at the growth company level, this resulted in a barely justifiable 19 per cent fall in the stock.
Still, if you had invested at the start of the year, you would be sitting on a 30 per cent gain. The company told investors it is deepening talks with potential partners for its autoimmune platform, which bodes well for the future.
Finally, some of the froth came off Premier African Metals as the miner said it had begun the second phase of test runs at its Zulu lithium and tantalum plant.
The company said changes have been implemented and commissioning issues are being addressed, with positive results reported so far.
A decision is expected within seven days on whether to proceed with purchasing a secondary spodumene float section.
Off 16 per cent this week, PAM shares have enjoyed a decent run over the last six months, adding 22 per cent to the company’s value.
For all the UK’s breaking mid and small-cap news go to www.proactiveinvestors.co.uk
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