SMALL CAP MOVES: East Imperial Toasts On US Bottler Deal; Real Good Food gets recovery funding
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Based in New Zealand eastern imperial had had a rough year, but rose higher this week after naming a US bottling partner to meet its growing demand in the United States.
The ‘ultra-premium drinks’ maker said US-based Lion Brewery will bottle its entire range, including its grapefruit tonic, Mombasa ginger beer and Yuzu lemonade, starting in early 2023.
This will result in “significant” logistics savings and lower capital costs of the expansion, it added, which will “form a key part” of its plans to improve profit margins and provide flexibility to react to demand. The shares rose 14 percent to 2.79 pence.
Beverage group East Imperial saw its shares rise 14% this week after securing a bottling deal
Very good food was another of London’s AIM bands to soar 51 per cent to 1.75p after receiving additional turnaround funding.
The food manufacturing company said Hilco Private Capital provided the new money for a period of 12 months and supplements its existing £6.3m facility with Leumi.
“We are delighted that new funding has been raised to support RGF’s sweeping reform, which aims to reduce costs, protect revenue and preserve the group’s inherent value,” said Chief Executive Mike Holt.
And financing is increasingly the main issue for small publicly traded companies.
deep matter led the declines, plunging 60 percent, after announcing plans to delist AIM following talks with shareholders and potential investors about long-term financing.
The digital chemistry data and software company said being a private limited liability company would provide greater opportunities to raise additional capital, adding that its major shareholders agreed.
Struggles to raise money were also the topic in Applied Graphene Materials, which said it was launching a strategic review after it was unable to raise capital funds due to the difficult stock market environment. Shares fell a fifth on the news.
Even when companies are able to raise funds, discounts can be punitive.
Drink Osirian Technologieswhich fell 32 per cent to 2.7p following a placement that raised £1.53m for working capital purposes.
As a cloud-based cybersecurity software specialist, he issued shares at 2 pence and directors chipped in £255,000.
Health Diagnostic Device Manufacturer gene drive it was another drop, down 23 percent to 9.7p as annual losses deepened and revenue fell.
Sales collapsed to £50,000 from £690,000 a year earlier, while the group reported a loss of £4.7m from £700,000.
David Budd, chief executive, said that despite the finances, the group had made good progress in pharmacogenetics and had an opportunity to be a leader in establishing acute point-of-care genetic testing.
of the streetThe run of disappointment also continued with the ticket printer plummeting 21 percent to 78 pence after another warning.
Underlying interim earnings fell 46 per cent to £9.3m, in line with previous guidance given in July, but it was lower-than-expected full-year guidance that really spooked investors.
London’s small-cap indices had a reasonable week despite the declines, with the AIM All-Share rising 0.8 percent to 844 and the AIM 100 also higher, though once again comfortably outperformed by the Footsie.