Truth be told it has been a relatively quiet week on the junior market, although there have still been several standout performers – some for better, some for worse.
Holding the torch for the small-caps over the past few days was Group, which went on a tear towards the end of the week, gaining the best part of 25% on Thursday morning.
The online estate agency revealed it was plotting an ambitious land-grab across the pond, with a plan to launch in a number of key states.
Investors reacted very favourably indeed to the news, so much so that Purplebricks was able to raise £50mln in less than 24 hours and at the going market price.
The US has been a graveyard for many big UK firms, including Marks & Spencer and , but Purplebricks doesn’t expect to be adding its name to that list, stating that the move is “the next logical step”.
The AIM-listed group said at the end of January that it had made a “good start” to 2017 – so has the share price having almost doubled in the year to date.
Generally speaking, most companies on the junior market will raise money at a decent discount to the prevailing share price.
So it is impressive, then, when a business is able issue stock at par value, and frankly stunning if it is issued at a premium.
The market is in something of a sweet spot for small-caps at the moment, and another to take advantage of it this week was SerVision.
The mobile video streaming group raised US$2mln from a group of New York-based investors, selling shares for 280% more than it was changing hands for.
The boss said the investment was “a very positive endorsement” and that it would help SerVision exploit the “increasing number of global opportunities” for its IVG400-N security video streaming device. The firm’s share price rocketed 150% to 5.5p following the cash call.
Another of the week’s key stories involved the Leeds United sponsor .
The online gaming company is set to be taken into Swedish hands after its larger rival Kindred Group agreed a £175.6mln takeover deal.
Kindred are paying 196p per share plus a 4p dividend (to be paid by 32Red).
Although the deal isn’t complete just yet, it seems it’s just a formality given that it needs the backing of 75% of the shareholders and it’s already got over 70%.
As has become a bit of a habit recently, the AIM All-Share got the better of its bigger cousin this week.
The FTSE 100, dragged lower by some of the big banks, lost 0.61% over the past few days to finish the week around the 7,256 mark.
By contrast, the junior market barometer edged 0.2% higher throughout the week to stand at 910 Friday afternoon.
It was a bit of a rollercoaster ride for online media group PCG Entertainment this week.
The company was buoyed at the start of the week after a big share overhang was cleared, with shares jumping by almost a third.
With the downward pressure on the stock now clear and some obvious buying interest, PCG decided it was a good time to drum up some cash.
It raised £750,000 at a discounted price of 0.14p a share, which brought the price back down to earth.
Forbidden Technology could only have wished for an up-and-down few days, instead it was more ‘down, down, deeper and down’ to quote Status Quo.
The video editing tech company slumped by 25% after its chief executive, Aziz Musa, unexpectedly resigned for personal reasons.
The group said it’s on the lookout for a replacement with current chairman David Main taking over from Musa in the meantime.
Another firm that struggled towards the end of the week was fitness-focused wearable tech group CloudTag, which raised £975,000 through a discounted share subscription.
The company issued 26mln shares at 3.75p a pop, below yesterday’s close of 4.82p.
CloudTag also told investors that its nominated advisor (nomad) – which is a regulatory requirement – has handed in its notice and will stop working with the company on 10 April.
The company said it was confident that a replacement nomad will be found before that date, otherwise its shares will have to be suspended.
Investors weren’t quite so certain, with the share price dipping almost 40% to 3p.