Corporate: Capricorn director Timothy Kestell’s Neon Capital has bought $1.6m in shares in the last month
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The investment company which Capricorn Metals (ASX: CMM) director Timothy Kestell is a director and substantial shareholder of bought nearly $700,000 in Capricorn shares in a recent $6.9 million capital raising.
After Neon purchased $903k in April, both on market and in the placement ($707k between April 9-12, $131k between April 15-17 and $65k on April 26), its most recent purchase takes its purchases in the last month to $1.6 million.
While Capricorn’s capital raising was completed in April, it only raised $4.6 million. The shortfall was made up through issuing ‘top up shares’ and a $1.7 million underwriting. A Directors’ Interest notice filed with the ASX last night reveals Neon made up 40 per cent of that.
The notice also reveals Neon owns 31.4 million shares, which at Capricorn’s current share price of 8.7 cents would be worth over $2.7 million. Shares are up 64 per cent since December.
Kestell only joined the board in early March along with Douglas Jendry. At the time, three directors (Debra Bakker, Geoffrey Rogers and Peter Benjamin) were removed.
While Neon were substantial holders when it first bought in, it now only holds 3.36 per cent, even with this week’s purchases.
According to Bloomberg, Neon is the third largest shareholder behind private mining investors Hawke’s Point Holdings and Centrepeak Resources Group. Hawkes Point and Centrepeak hold 24 per cent between them even after the recent capital raise.
Fidelity ceased to be substantial holders of Actinogen Medical (ASX: ACW). On Tuesday, the company announced its anti-Alzheimer’s drug was ineffective and the stock fell 70 per cent. Fidelity sold 15 million shares for just over $200,000.
Fidelity last topped up their stake only last month, buying 12 million shares for $676k. But Tuesday’s announcement sent its stake into freefall and the investment company sold this parcel. While it still owns 4.87 per cent, the sale took it below 5 per cent and required it to file the ceasing to be substantial holder notice.
This isn’t the first time a biotech investment has not worked out for Fidelity. It also invested in Factor Therapeutics (ASX: FTT), and got literally nothing after its wound-dressing drug was shown to be ineffective and the stock was almost wiped out.
Reabold Resources, the strategic parters of ADX Energy (ASX: ADX), have put another £375,950 ($699k) into ADX’s Romanian subsidiary. ADX has an oil licence in Romania and is aiming to commence operations on an oil well in the applicable area. The purchase takes Reabold’s total investment in the project to £2.6m pounds. ADX told shareholders it was ‘delighted’ by Reabold’s continued investment.
Seafarms (ASX: SFG) has announced it has been granted a NT government Crown Lease for its breeding centre. The prawn breeder will now commence work at its Bynoe Harbour site; managing director Chris Mitchell has deemed the project to be ‘shovel-ready’. Initially eight people will be employed but the company anticipates this will grow over time. Mitchell thanked the state government for coming to an agreement quickly.