Upstream Share Discussion Threads

[master rsi] 04/3/2024 09:09

MARKET REPORT
LONDON MARKET OPEN: Review cuts Hipgnosis Songs Fund valuation

(Alliance News) - Stock prices in London opened mostly lower on Monday, as investor attention remained primarily on the release of the UK Spring budget on Wednesday.

The FTSE 100 index opened down 15.31 points, 0.2%, at 7,667.19. The FTSE 250 was down 39.07 points, 0.2%, at 19,315.31, and the AIM All-Share was up 1.16 points, 0.2%, at 742.47.

The Cboe UK 100 was down 0.3% at 768.30, the Cboe UK 250 was down 0.1% at 16,685.40, and the Cboe Small Companies was down 0.1% at 14,501.53.

In European equities on Monday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.1%.

Monday's economic calendar is quiet, but the week picks up pace with the UK's budget announcement on Wednesday.

UK Prime Minister Rishi Sunak hinted at a cut to national insurance in next week's spring budget as he spoke to journalists at the Scottish Tory conference.

The prime minister initially refused to be drawn on potential tax cuts to be announced by Chancellor Jeremy Hunt, but stressed his dislike for high national insurance.

"There are two other factors to consider alongside this budget. The chancellor is not going to want to do anything that could make an interest rate cut from the BOE less likely, as this could be more important for winning votes than future tax giveaways. This means that we don't expect any major changes on Wednesday. Also, the OBR forecasts will be worth watching. Will they revise down growth forecasts to bring them more inline with the BOE? Could inflation be revised up? Either way, the OBR forecasts may paint the UK economy in an unflattering light," said Kathleen Brooks, research director at XTB.

The pound was quoted at USD1.2668 early on Monday in London, up compared to USD1.2641 at the equities close on Friday. The euro stood at USD1.0840, higher against USD1.0827. Against the yen, the dollar was trading at JPY150.23, lower compared to JPY150.25.

Meanwhile, Moscow, Riyadh and several other OPEC+ members on Sunday announced extensions to oil production cuts first announced in 2023 as part of an agreement among oil producers to boost prices following economic uncertainty.

The plan to extend cuts to mid-2024 comes on top of previous cuts to both oil output and exports as some of the world's largest energy producers drive to push up market rates.

Saudi Arabia's energy ministry said it would cut its production by one million barrels per day from April to June, while Russia announced 471,000 bpd of cuts in the same period.

The news, however, did little for oil prices. Brent oil was quoted at USD83.84 a barrel early in London on Monday, down from USD84.08 late Friday.

Amongst London's blue-chips, oil major BP rose 1.5%, whilst Shell lost 0.1%.

BP got a boost after Jefferies raised its stock to 'buy' from 'hold'.

In London's FTSE 250 index, Hipgnosis Songs Fund fell 9.6%.

In December, the London-listed music investment company said Shot Tower Capital would conduct due diligence on the Hipgnosis Songs Fund's assets as part of a strategic review.

HSF has faced shareholder scrutiny recently. In October, two key votes on the firm's future, including a poll on its continuation, did not go its way. Roughly 83% of votes cast were against the company's continuation. In addition, Hipgnosis said around 84% of votes rejected a planned portfolio sale.

In September, it said it would be selling off 29 of its music catalogues for USD440 million to Hipgnosis Songs Capital, which is a partnership between HSF's investment adviser Hipgnosis Song Management and funds advised by New York-based alternative asset manager Blackstone.

On Monday, HSF said Shot Tower Capital has provided an independent valuation of assets.

HSF noted its fair market value of portfolio is estimated at USD1.80 billion to 2.06 billion, after deducting bonus provision the fair market value is between USD1.74 billion and USD2.00 billion. It said the Shot valuation compares to a fair value of USD2.62 billion on September 30.

Chair Robert Naylor said: "The newly constituted board is making good progress with the due diligence work that will underpin its strategic review. We are disclosing the valuation at this time given its material difference to valuations previously disclosed. The board will provide further detail on this when the due diligence is complete. The Board remains focused on identifying all options to deliver shareholder value."

Amongst London's small-caps, PensionBee rose 10%.

It said it has entered into an exclusive, non-binding term sheet with a large, US-based global financial institution in order to expand into the US.

The company explained that the US has the "world's largest defined contribution pension market", representing approximately 80% of the global total and USD22.5 trillion in assets.

"Given the context of the enormous US market opportunity, PensionBee sees the potential for its US business to grow rapidly, becoming at least the size of its UK business over the next decade," it added.

In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong was up marginally in late dealings. The S&P/ASX 200 in Sydney closed down 0.1%

In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.1%.

Gold was quoted at USD2,084.49 an ounce against USD2,075.33.

[master rsi] 04/3/2024 08:54

SNR - Senior sees aerospace boost as aircraft demand grows

(Sharecast News) - UK aerospace engineer and Boeing supplier Senior reported a jump in 2023 profits and said it had been asked to maintain supply levels of parts for the US plane maker's B737-Max aircraft.

The company on Monday almost doubled adjusted pre-tax profit to £38.3m for the 12 months to December 31, on revenues of £963.5m, up 14%. The full-year dividend was lifted 77% to 2.30p a share.

Civil aerospace, which makes up 42% of the group's market, is starting to recover from the impact of the Covid pandemic, with passenger traffic volumes increasing sharply.

However, Boeing has been dogged by technical issues with the 737-Max variant with two fatal crashes and the recent blow out of a panel from a plane operated by Alaska Airlines in January.

Senior said Boeing had confirmed that production of the B737-Max would stay at 38 aircraft until any increase was approved by the US Federal Aviation Administration (FAA).

Boeing has previously said that they plan to increase B737 production to 50 per month over the 2025/2026 timeframe.

Looking ahead, the group maintained guidance and said it was benefiting from increasing aircraft build rates "which we expect will lead to higher sales in 2024 and beyond".

[master rsi] 04/3/2024 08:22

BREAKOUT
BTC
Not long ago has started spiking up again reaching $64.662 +1,486 and still rising ......

Mar 03, 2024 18:40 - Bitcoin Shines, Dogecoin Sparkles, Dogwifhat Skyrockets: The Week In Retrospect
Benzinga - Bitcoin (CRYPTO: BTC) led the way in a big week for cryptocurrencies, which saw the highest-ever monthly gain for the king of crypto.

Cryptocurrency Gains +/- Price (Recorded 9:00 a.m. EST)
Bitcoin (CRYPTO: BTC) +0.85% $62,400
Ethereum (CRYPTO: ETH) +0.5% $3,430
Solana (CRYPTO: SOL) -0.7% $128.75
What Happened: The total market capitalization of cryptocurrencies stands at $2.33 trillion, over 17% up from last Sunday's $1.98 trillion per CoinMarketCap data.

Bitcoin's weekly gain tallied to 19.5% while Ethereum (CRYPTO: ETH) rose by 12.4%.

Memecoins were the strongest vertical, with an astonishing 94% increase in market capitalization per CoinGecko data.

As covered in the Benzinga memecoin mashup, Dogwifhat (CRYPTO: WIF) was the standout performer, with a 400% weekly surge. Established memecoins like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) also gained significantly, up 57% and 122%, respectively.

Fundamental developments were dominated by the record inflows into spot Bitcoin ETFs. BlackRock's iShares Bitcoin ETF (NASDAQ: IBIT) dominated flows, recording its two biggest trading volume days thus far, which brought its bitcoin holdings to over $7 billion.

Price predictions for Bitcoin continue to target significant six-figure valuations. Edward Snowden predicted that a national government will disclose having purchased Bitcoin by the end of the year. Republican senators introduced a bill that is to ban the introduction of CBDCs.

Elsewhere, Dogecoin recorded its first-ever use as a means of transaction for a property sale.

Top Gainers (24 Hours)

Cryptocurrency Gains +/- Price (Recorded 9:00 a.m. EST)
Dogwifhat (CRYPTO: WIF) +39.85% $1.77
Floki Inu (CRYPTO: FLOKI) +33.0% $0.000148
Pepe (CRYPTO: PEPE) +29.0% $0.000005449
Bitcoin dominance stands at 49.9%, down from last week's 51.2%. The Crypto Fear & Greed Index is firmly in the "Extreme Greed" zone at 86.

Read Also: RFK Jr. Blames Big Banks For Turning Congressmembers Against Bitcoin: 'We Need To Make Sure That People ... Have Transactional Freedom'

What Happened In Traditional Finance: The Nasdaq 100 gained 2.04% on the week to trade at $18.302. The Dow Jones Industrial Average is down 0.11%, closing at 39,087.39. The S&P 500 is up 0.95% at $5,137.07.

In further news, Apple Inc (NASDAQ: AAPL) sank on news that Goldman Sachs removed Apple from its Conviction List of top stocks.

Ross Gerber, the president and CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla Inc bull and investor, is optimistic about the future of electric vehicle manufacturer Rivian Automotive Inc (NASDAQ: RIVN).

Meanwhile, Bill Ackman, the founder of Pershing Square Capital Management, is optimistic about Alphabet Inc. (NASDAQ: GOOG), the parent company of Google.

What's Next: Crypto traders and analysts continue to be bullish on Bitcoin, predicting a cycle top only towards the latter end of 2025:

#Bitcoin Cycle Top Date
According to my Time & Cycles theory, the bull market would end in December 2025, 21 months from now.

Do you see it ending sooner this cycle and why? pic.twitter.com/n8rhmmo0z3

— Titan of Crypto (@Washigorira) February 27, 2024

CryptoSlate Lead Analyst James van Straten sees Bitcoin at "a third of the FOMO" it recorded in 2021. He concluded there is no reason why Bitcoin cannot go to $100,000 if ETF inflows remain strong and there is "a similar retail FOMO."
With memecoins recording exponential gains, it remains to be seen if this marks a local top or if the remarkable crypto surge leads Dogecoin and others higher

[master rsi] 04/3/2024 08:12

FTSE

Opening down 8 points

[master rsi] 03/3/2024 22:33

UPS

BOOM 250p ( 245 v 255p )

The latest update was bullish on every part from Revenue to Cash flow. The high growth of the podcast business will attract extra advertisers. No Debt, Cash on hand, cutting costs . The director bought it late last month and for some time. The chart has been on uptrend for some time and the latest good news is in an Inverted Head and Shoulders.
----------------- Intraday ------------------------------------------ 2 months ------------------------------- 1 year -------------------
INDICATORS

[master rsi] 03/3/2024 22:10

BOOM 250p - Rising late on Friday and making an INVERTED HEAD an SHOULDERS.
The inverse head and shoulders signals exhaustion among sellers.

[master rsi] 03/3/2024 21:57

SUNDAY PAPERS

Share tips, comment and bids

Mail on Sunday (Midas share tips): BUY Elixirr.

Mail on Sunday (Midas share tips update): BUY Bank of Georgia.

The Sunday Telegraph: Rachel Reeves has revealed she has impartiality concerns over the attempt by a UAE-backed fund to take over The Telegraph.

The Sunday Times: Mike Ashley’s Frasers Group has bought online bicycle retailer Wiggle out of administration as the retail giant continues to capitalise on the distress coursing through the industry.

The Sunday Times: The former UK Olympian Robert Lemieux and his wife are geared up for a bumper payday as LeMieux, the equestrian goods retailer they founded nearly two decades ago, goes under the hammer for more than £150m.

The Sunday Telegraph (Comment): Chancellor faces struggle to defuse Britain’s ticking debt time bomb.

The Sunday Times (Comment): Are Ocado and M&S running out of road?

The Sunday Times (Comment): Google’s AI disaster heaps pressure on Alphabet heir Sundar Pichai.

The Sunday Times (Comment): Elon Musk’s battle with OpenAI triggers memories of Napster.

The Sunday Times (The Tipster): Share tip: Shoe Zone is taking steps to grow.

[master rsi] 03/3/2024 21:31

SUNDAY PAPERS

Business and economics

The Sunday Telegraph: The chief executive of European electric car maker Polestar has claimed drivers ‘scared of change’ are to blame for the slowing uptake of electric vehicles (EVs).

The Observer: US stock markets closed at record highs on Friday powered by investors’ continued enthusiasm for artificial intelligence (AI).

Mail on Sunday: British savers are at risk of losing out in a crisis that is threatening the existence of a popular and low-cost way of building a nest egg, campaigners have warned.

The Sunday Telegraph: Underperforming pension funds will be barred from winning new business under a crackdown to be announced by Jeremy Hunt in the Budget.

The Sunday Times: ITV and Channel 4 have backed legislation that could force big tech companies such as Google and Meta to pay media groups for news.

The Sunday Times: Half of the zero-emission vehicles benefiting from a £3bn ‘buy British’ government bus-building programme are being made in China and overseas, new analysis reveals.

[master rsi] 03/3/2024 21:05

SUNDAY PAPERS

Top stories

The Sunday Times: The Body Shop administrators are closing dozens of stores despite them being profitable as the company dramatically collapsed last month just weeks after it was acquired by the private equity firm Aurelius for £207m.

The Sunday Times: The easyJet founder Stelios Haji-Ioannou has called a truce to his longstanding dogfight with the airline’s ‘scoundrelR17; chiefs that culminated in a failed boardroom coup.

[sunshine today] 02/3/2024 08:41

OPTI.

Had a good week , for those with the time they may be worth a look.

£25M market cap.

Funded

Shares in two other companies knock £5M off that price.

First Generation products selling well.

Second Generation sugar replacement made with fibre, no aftertaste, low or no calories and natural to top the lot.!!

The potential growth through the world’s major food and drinks companies is off the scale.


If you don't believe me, note the general size of the population as you walk down the high Street this weekend.

Then watch a uk film made prior to 1975.

[master rsi] 01/3/2024 22:36

MARKET REPORT
LONDON MARKET CLOSE: Stocks rise despite mixed US manufacturing data
Fri, 01st Mar 2024 16:53Alliance News

(Alliance News) - European equities had a solid end to the week, and a stellar run for US markets continued, with focus turning to a key week of fiscal and monetary policy updates.

On Wednesday, the UK government delivers its latest budget, expected to be the final one before a general election. On Thursday, the European Central Bank announces its latest interest rate decision.

The FTSE 100 index rose 52.48 points, 0.7%, at 7,682.50. It fell 0.3% this week, however.

The FTSE 250 surged 299.51 points, 1.6%, at 19,354.38, and added 0.9% this week. The AIM All-Share rose 4.81 points, 0.7%, at 741.31 but lost 0.9% this week.

The Cboe UK 100 ended up 0.6% at 770.40, the Cboe UK 250 closed up 1.4% at 16,696.98, and the Cboe Small Companies added 0.4% to 14,517.04.

In European equities on Friday, the CAC 40 in Paris closed 0.1% higher, while the DAX 40 in Frankfurt rose 0.3%.

Across the Atlantic, New York stocks are called to open lower. The Dow Jones Industrial Average was up 0.1%, the S&P 500 index up 0.3% and the Nasdaq Composite 0.6% higher.

AJ Bell analyst Russ Mould commented: "Big name stocks like Palo Alto, Advanced Micro Devices, Salesforce, Micron Technology and Tesla have all delivered strong gains over the past week, and even market darling Nvidia has managed to push higher again which helps to support positive investor sentiment. The momentum seen across the pond spread to Europe at the end of the trading week."

There was some mixed US data to round off the week.

Readings of the US manufacturing economy painted a mixed picture on Friday, with one survey signalling stronger-than-expected growth, and another showing the sector suffered a greater decline than expected.

According to the S&P Global measure, the manufacturing purchasing managers' index climbed to 52.2 points in February, from 50.7 in January, and above the flash estimate of 51.5.

Rising further above the 50.0 no change mark, the latest reading suggested the pace of growth picked up.

The Institute for Supply Management PMI was not as robust.

The PMI fell deeper into contraction territory, coming in at 47.8 for February, from 49.1 in January. According to FXStreet cited consensus, a rise to 49.5 points was expected for last month, however.

The pound was quoted at USD1.2641 late Friday in London, slightly higher compared to USD1.2636 at the equities close on Thursday. The euro stood at USD1.0827, higher against USD1.0811. Against the yen, the dollar was trading at JPY150.25, higher compared to JPY149.82.

Consumer price inflation in the eurozone cooled last month, according to an official flash estimate on Friday, though by less than market expectations, giving the ECB some food for thought.

Eurostat said it estimates yearly harmonised consumer price inflation cooled to 2.6% in February, from 2.8% in January. The reading was slightly higher than FXStreet-cited market consensus of 2.5%.

"The disinflationary process continues gradually. That allows the ECB to start discussing the conditions for, and likely path of, the future cutting cycle. We still see signs of sticky underlying inflation, and we expect this to delay the start of easing," analysts at Rabobank commented.

Elsewhere in the central banking space, the Bank of England's top economist has said he believes a cut to UK interest rates is still "some way off".

Huw Pill, chief economist at the central bank, also warned that the economy is currently weak and said policymakers should not feel a "false sense of security" if inflation falls below the 2% target rate in the coming months.

Brent oil was quoted at USD84.08 late in London on Friday, up from USD82.13 late Thursday, as a ceasefire in Gaza remains scarce.

SP Angel analysts commented: "Crude oil prices edged higher on expectations that Opec+ would agree to extend production cuts, which are starting to be reflected in physical markets, together with increased tensions in Gaza."

Gold was quoted at USD2,075.33 an ounce, higher against USD2,045.84.

In London, Ocado shares fell 7.0%, as investors continue to mull over a spat with joint-venture partner Marks & Spencer.

Ocado on Thursday had said legal action against M&S could be an option. CEO Tim Steiner said he is confident the fellow retail firm owes it "a substantial amount of money" but hopes to secure a settlement over the dispute, PA reported.

M&S is due to pay Ocado a final instalment of GBP190.7 million as part of the payment for the GBP750 million Ocado Retail JV.

Ocado had said in its annual results: "Ocado Retail failed to meet the performance measures for the FY23 financial year that were required for automatic payment of the contingent consideration. However, the contractual arrangement with M&S expressly provides for the target to be adjusted for certain Ocado Retail management decisions or actions that differ from the assumptions used in the discounted cash flow model which underpinned the sale transaction."

M&S shares ended 1.0% lower.

Pearson climbed 5.4%. For 2023, the company delivered GBP3.67 billion in sales, down 4.3% from GBP3.84 billion in 2022. Pretax profit, however, was up 53% to GBP493 million from GBP323 million.

The provider of digital and virtual learnings materials proposed a final dividend of 15.7p, above 2022's 14.9p dividend, bringing the total amount returned to shareholders up to 22.7p from 21.5p in 2022.

ITV jumped 14% as investors responded well to the offloading of its entire interest in the BritBox streaming platform.

On Friday, the London-based television broadcaster and content producer said it was selling its 50% stake in Britbox to its joint venture partner, BBC Studios for GBP255 million.

ITV said it will return all the cash to shareholders through a share buyback, which will start after it releases full-year results on Thursday next week.

Elsewhere in London, eEnergy rose 29% after it announced an "exciting" funding deal with NatWest Group.

The London-based energy services provider said NatWest's National Westminster Bank PLC will provide up to GBP40 million in project funding. This facility will finance energy efficiency and onsite generation technologies for eEnergy's public sector customers.

"We are extremely pleased to announce this GBP40 million facility with NatWest, marking the beginning of a new collaboration between our two organisations," proclaimed Chief Executive Officer Harvey Sinclair. "This facility is the result of significant investment in honing our proposition to public sector customers and...has been structured to allow us to scale rapidly in a large addressable UK market."

Monday's economic calendar is quiet, but the week picks up pace with the UK's budget announcement on Wednesday.

UK Prime Minister Rishi Sunak hinted at a cut to national insurance in next week's spring budget as he spoke to journalists at the Scottish Tory conference.

The prime minister initially refused to be drawn on potential tax cuts to be announced by Chancellor Jeremy Hunt, but stressed his dislike for high national insurance.

Meanwhile, Sunak announced a press conference outside of his Downing Street residence at 1740 GMT on Friday.

Monday's local corporate calendar has annual results from shipping services firm Clarkson.

[master rsi] 01/3/2024 22:18

COMMODITIES

Bitcoin - BTCUSD $62,582.33 +1,384.35 (2.26%)

Gold $2,083.545 +39.59 (1.94%)

OIL Brent $83.28 +1.31 (1.60%)

[master rsi] 01/3/2024 21:59

DOW

Finishing 90 points higher ...

Investors appeared to shrug off a note of caution from Richmond Federal Reserve President Thomas Barkin, who said U.S. price pressures still exist and it is too soon to predict when the Fed will cut rates.

On Wall Street, the S&P 500 closed at a record high for the second day in a row, with a strong boost from the technology sector and falling Treasury yields adding to bullishness.

The Dow Jones Industrial Average rose 90.99 points, or 0.23%, to 39,087.38,
the S&P 500 gained 40.81 points, or 0.80%, to 5,137.08
and the Nasdaq Composite gained 183.02 points, or 1.14%, to 16,274.94.

[master rsi] 01/3/2024 17:14

How the UPS are performing during last month

[master rsi] 01/3/2024 16:58

How the UPS are performing today

[master rsi] 01/3/2024 16:31

Cut to interest rates "some way off", says Bank of England economist
(Alliance News) - The Bank of England's top economist has said he believes a cut to UK interest rates is still "some way off".

Huw Pill, chief economist at the central bank, also warned that the economy is currently weak and said policymakers should not feel a "false sense of security" if inflation falls below the 2% target rate in the coming months.

Pill, who has been in the role since 2021, made the comments during a speech at Cardiff University.

The UK interest rate is currently at 5.25% after 14 increases, made in an effort to thwart rampant inflation, took it to the highest level since the financial crisis.

Economists and banks have widely predicted that the Bank of England's monetary policy committee could opt for its first cut since the start of the Covid-19 pandemic in the first half of this year.

However, Pill became the latest Bank of England rate-setter to appear cautious about potential future rate cuts.

"In my baseline scenario the time for cutting bank rate remains some way off," he said.

"I need to see more compelling evidence that the underlying persistent component of UK consumer prices index inflation is being squeezed down to rates consistent with a lasting and sustainable achievement of the 2% inflation target before voting to lower bank rate."

The rate cuts have helped to move the rate of UK inflation closer to 2%, the target level set by the government.

It was most recently recorded at 4% in January, the same as the previous month.

Nevertheless, Pill stressed that meeting the inflation target would be "good news" but cautioned policymakers not to take their eyes off the ball.

He said: "I expect to see headline consumer price inflation continue to fall in the coming months, and likely to approach or even fall below the 2% inflation target this spring. Of itself, that is good news.

"But the drivers of this decline in annual headline inflation are a combination of base and external effects.

"We need to guard against being lulled into a false sense of security about inflation developments over the medium term by the mechanical effects of high monthly inflation a year ago dropping out of the calculation of annual rates and/or the impact of downside surprises in international commodity prices, notably for energy and food."

[master rsi] 01/3/2024 16:24

UK PM hints budget may contain further cut in national insurance
(Alliance News) - UK Prime Minister Rishi Sunak has hinted at a cut to national insurance in next week's spring Budget as he spoke to journalists at the Scottish Tory conference.

The prime minister initially refused to be drawn on potential tax cuts to be announced by Chancellor Jeremy Hunt, but stressed his dislike for high national insurance.

Hunt announced in his autumn statement last year that the levy – which is paid by workers across the UK – would drop from 12% to 10% in January.

"The chancellor and the UK government chose to cut national insurance, there were lots of reasons for that, but first and foremost it is a tax on work," he said when asked if there could be further reductions announced next week.

"I believe in a country and society where hard work is rewarded – that's something that's really important to me … and all the people in the government, and cutting national insurance is rewarding hard work."

It is also important to him, the prime minister said, that his government "delivers for people in every part of the UK".

The Scottish government, he said, was "making life harder for working people" by increasing taxes.

"I want to make life easier for people, I want to give them the peace of mind there's a brighter future for them and their families," he said.

MSPs passed the final budget for the next financial year this week, including a new income tax band being created, which will see those on a salary between GBP75,000 and GBP125,140 paying 45%; while a 1% increase to the highest rate of tax – for those earning more than GBP125,140 – will take it to 48p in the pound.

In passing the budget, Deputy First Minister Shona Robison insisted Scotland's tax system was "progressive" and will provide GBP500 million in funding for the NHS.

[master rsi] 01/3/2024 16:17

BOOm 247.50p +13p

Up and then retracement today is up again

[master rsi] 01/3/2024 15:06

SND 10.25p (0.50 / 5.13%%) / Sondrel talks over capital injection at 'advanced' stage

(Sharecast News) - Semiconductor designer and consultant Sondrel updated the market on its ongoing discussions with a potential capital provider on Friday, to address its immediate working capital needs.

The AIM-traded firm said the discussions had progressed significantly towards being finalised.

It said the proposed solution would involve a secured 15% convertible loan note (CLN) of £0.9m.

Under the terms being negotiated, on completion of a broader fundraising effort aimed at generating net proceeds of £6m, the CLN would be mandatorily convertible into new shares in Sondrel at a price of 10p per share.

The capital provider was also expected to contribute a substantial equity investment as part of the broader fundraising initiative, which was targeted for completion by the end of March.

Sondrel said the anticipated fundraising effort was crucial for Sondrel as it looked to secure the necessary working capital resources to sustain its operations until achieving a positive trading cash flow position by the end of the 2024 financial year.

However, the company said provision of the CLN remained contingent on reaching a final agreement between the parties, adding that it would not be able to meet its February payroll obligations in full until the proceeds from the CLN were received.

[master rsi] 01/3/2024 14:47

DOW

Opening lower with 34 points but now is worse with 63 points down