SMALL CAP MOVERS: Blockchain firm GSTechnologies soars on Canadian acquisition

There is life in the cryptocurrency sector yet, so it may seem.

At least for GSTechnologies, the London-listed financial technology small cap historically focused on the esoteric blockchain and stablecoin industries.

GSTechnologies has been trying to get its stablecoin project through the relevant UK regulators this year, with the group in June noting ‘significant’ progress on its application for admission to the UK Financial Conduct Authority (FCA)’s Regulatory Sandbox.

GSTechnologies wants to become the first issuer and service provider of stablecoins listed on the London Stock Exchange

For the uninitiated, a stablecoin refers to a digital currency hard pegged to something else; more often than not the US dollar, but sterling-, Mexican peso- and euro-backed stablecoins also exist.

GSTechnologies wants to become the first issuer and service provider of stablecoins listed on the London Stock Exchange.

While that journey endures, the group recently extended its tentacles into the Canadian financial sector by signing a legally binding agreement to acquire PAYPT Finance, a Canadian company holding a Canadian Money Services Business (MSB) licence.

GSTechnologies plans to rename PAYPT to Angra Global. Investors seemed to like this development, with GST’s shares soaring over 46 per cent to 0.77p on the standard segment.

Small caps had a good run in general this week, with the AIM All-Share Index adding 1.9 per cent to 765.79p since Monday’s open.

A bullish mix of mercifully softer inflation data on Wednesday and solid retail sales figures on Friday provided some tailwinds.

Make no mistake. Year-on-year inflation is still exceptionally high at 7.9 per cent, but this was better than the 8.2 per cent forecasted by the market.

A number of small-cap mining companies put on a good display.

Empire Metals surged another 40 per cent, bringing month-to-date gains to 133 per cent in total. The group has had a bumper July operationally speaking, having disclosed promising updates on its titanium mining projects in Western Australia.

CleanTech Lithium‘s resource estimate upgrade at its Chilean Lagunda Verde project laid the groundwork for a strong trading week. The AIM-listed group proceeded to add 40 per cent.

Powerhouse Energy Group ripped 45 per cent higher following Tuesday’s announcement that the energy technology group’s European patent for its non-recyclable waste conversion technology is making headway.

Outside of heavy industries, alternative investment fund manager Gresham House turned heads with what appears to be a generous takeover offer from private equity firm Searchlight Capital.

Gresham agreed to Searchlight’s £470million bid at 1,105p per share, placing a 63 per cent premium on Friday’s closing price of 680p.

Anthony Townsend, chairman of Gresham House, said the offer is four times the amount shareholders would have invested back in 2014 when management bought in.

Gresham shares proceeded to hit an all-time high of 1,065p on Monday before closing the week slightly lower at 1,058 (that’s still a 55 per cent return since last Friday’s close).

Shield Therapeutics led the life sciences sector. The commercial-stage pharma group said its Accrufer iron deficiency treatment saw 173 per cent growth in prescriptions in the second quarter, or a 50 per cent improvement on the first.

Shield’s shares were knocked 41 per cent higher as a result.

As for the fallers, native advertising company Dianomi posted a particularly grim trading update warning of a significant decline in traffic volumes across its client base of financial services websites.

Traffic levels across the key publishers Dianomi works with were down by up to 30 per cent in the six months to June 30 compared to the same period in 2022.

Dianomi told shareholders to expect an 18 per cent decrease in revenues when audited results are released. Shares tanked 40 per cent as a result.

Lookers plunged 14 per cent after the London-listed car dealer announced shareholder Cinch intended to block its proposed sale.

Having withdrawn a letter of intent to back Global Auto Holdings Limited’s takeover of Lookers, 19.2 per cent-stakeholder Cinch will now vote against the takeover.

‘Lookers is re-engaging with other shareholders to understand whether [resolutions] to implement the acquisition are capable of being passed,’ Lookers said in a statement.

Bowleven finished a rollercoaster week with more big swings on Friday.

The company put out a statement stating there was no reason it knew why its shares had jumped to 1.75p from 1.05p the day before.

That was enough to send the price down by a third on opening, but in true bulletin-board favourite style, no amount of denials will ever convince the punters and by mid-morning a good chunk of the losses had been recouped.

Chalk that one up as this week’s AIM-listed mystery.

To read more small cap go to Proactive Investors website.

This post first appeared on Dailymail.co.uk