1st Aug 2024 11:21
(Alliance News) - The following stocks are the leading risers and fallers on AIM on Thursday.
----------
AIM - WINNERS
----------
Safestay PLC, up 8.8% at 21.75 pence, 12-month range 18.00p-27.00p. The company, which operates hostels in nations including the UK, Germany, Spain, Italy and Portugal, surrenders the lease for its 52-room hotel in Vienna. The move has been made by subsidiary Equity Point Prague sro. The lease has been surrendered to landlord Hotel La Prima GmbH & Co KG. "This strategic decision removes the only loss-making property in Safestay's portfolio and will enable the group to redeploy capital where there are stronger returns," Safestay says. Its plan to convert the asset into a hostel received a blow. "In October 2018, Safestay signed a 10-year lease for the hotel with the intention of converting the property into a hostel. Since then, the company has not been able to secure the licence required to do so and, as a result, the hotel has not benefited from the same synergies and economics of the group's wider hostel portfolio, resulting in a loss," Safestay adds.
----------
Futura Medical PLC, up 6.1% at 36.30p, 12-month range 23.28p-56.00p. The sexual health products company notes that UK consumer goods firm Haleon PLC expects the Eroxon erectile dysfunction product to be available in the US before the end of this year. The product is Futura's lead asset. It struck a licensing deal with Haleon for Eroxon in July of last year.
----------
AIM - LOSERS
----------
Orosur Mining Inc, down 7.7% at 3.55p, 12-month range 1.90p-5.80p. The South America-focused minerals explorer and developer says a deal to re-acquire 100% of the Anza gold project in Colombia has suffered "substantial delays to completion". Chief Executive Brad George says: "The parties remain committed to an outcome consistent with the agreed and previously announced terms, although the finer details of the transaction have proven more complex than initially anticipated." The CEO adds: "All parties are working in good faith to resolve these issues and complete the transaction." The project is currently subject to an exploration pact with Minera Monte Aguila, which is a joint-venture between Newmont Corp and Agnico Eagle Mines Ltd. That deal came into effect in September 2018 and the first phase, which saw MMA earn a 51% stake in Anza, concluded four years later. Work then moved to phase two, which was to include a USD2 million option payment being made to Orosur. However, Orosur was informed in May of last year that MMA was "reviewing its alternatives in respect of the project" and may not proceed with phase two. Orosur and MMA set up a deal which would see the AIM listing repurchase MMA's stake in Anza, in return for a 1.5% net smelter royalty and up to USD15 million in cash payments subject to production milestones.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.