California dreams have come true for AIM-listed biopesticides group Eden Research plc, which just received regulatory approval for Mevalone, its biofungicide targeting botrytis in grapes.
That’s a lot of big words, but the upside is clear as day: Eden has officially gained access to one of the most important grape-growing markets in the world.
To put things into context, Lodi has a vineyard footprint 10 orders of magnitude larger than Britain’s entire capacity. And that’s just one region within the Golden State.
Lodi has a vineyard footprint 10 orders of magnitude larger than Britain’s entire capacity
The approval is timely as global regulators move to ban traditional chemical pesticides, creating a demand for alternatives such as biopesticides. Mevalone offers a sustainable solution, maintaining crop yields without harming the environment.
Cavendish analysts called it a “significant milestone” for the sustainable agriculture group, so it’s not hard to see why Eden’s shares ran up over 20% earlier this week.
Eden’s stock did come down in the latter half, though it was still a net win, closing 7.4% higher from Monday’s opening price.
Standing back, the AIM All-Share Index was less eye-catching form this week, though stocks did stage a Friday recovery after figures showed the UK economy grew more than hoped in November.
Gross domestic product rose 0.3% month on month, following a 0.3% decline the previous month, according to data from the Office for National Statistics, stronger than the 0.2% growth forecast by economists.
ONS chief economist threw cold water on the party, calling the longer-term picture “one of an economy that has shown little growth over the last year”.
Nonetheless, the index bounced back from intra-week lows of 748 to close the week 0.25% lower at 748, thus outperforming the FTSE 100’s 78-basis-point loss.
Shares in the digital advertising group Dianomi fell off 9% as investors seemed to ignore the recovery narrative provided in an end-of-year trading statement.
While profitability improved per its year-end statement, the challenge for Dianomi has been the sharp decline in the traffic of the publishers it is working with, which it hopes will improve as we move towards the US elections later this year.
Mercantile Ports and Logistics Ltd sank 40% after the operator of the Karanja port near Mumbai said trading volumes in December were lower than expected and restoring its debt was taking longer than hoped.
Elsewhere in the heavy industries, Nostra Terra Oil and Gas Company plc shares tumbled to a new low after the company raised £300,000 at a 25% to help develop drilling opportunities around its Pine Mills asset in East Texas, US.
Potash development company Emmerson plc shot to the top of the small-cap movers list after announcing it had completed most of the planned optimisation workstreams ahead of development at the Khemisset potash project in Morocco, pending environmental approval.
Liberum analysts appeared bullish, particularly given Emmerson’s strong cash runway, and shares were lifted nearly 80% come Friday.
Other top risers in the resources sector saw Orosur Mining plc up 30%, Global Petroleum Ltd up 28% and Clontarf Energy Plc up 27%.
Katoro Gold plc, meanwhile, staged a 20% share price recovery after a missed joint venture payment sent it tumbling last week.
One of the more unique IPOs of recent years is planned by a company called The London Tunnels PLC, with management hoping to turn a largely unknown and unused subterranean network of Second World War walkways and shelters into an international tourist attraction.
Originally constructed in the 1940s for civilian protection during the Blitz, the Kingsway Exchange Tunnels lie beneath one of the busiest parts of the capital.
The company behind the project, which has already raised £10 million in pre-IPO funding, is looking to bring in up to another £30 million in investment at £2 a share, giving the business a market valuation of £123 million.
Ultimately, the focus is on creating a multi-sensory experience that melds arts, nature and sciences, while preserving the area’s historical significance related to WW2 and the Cold War.
However, initially, the cash will be put to use on preparatory work such as securing the permissions required to turn the dusty system into an international attraction capable of bringing in two million visitors a year.
Chief executive Angus Murray said: “This unique set of tunnels, owned by a British company, built by the British Government, for the defence of Britain, that can further enhance London’s reputation as a leading tourist destination, should be listed in London.”
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