• S&P/ASX 200 closes up 0.35% ending three day losing streak, Emerging Companies index up .10%
  • Limeade surges more than 300% after announcing $112 million takeover by by US-based Web Health Services
  • MQR and MinRes accelerate their farm-in agreement over the lithium rights at MQR’s West Spargoville project

 

The Aussie share market has ended a three-day losing streak with the S&P ASX 200 index closing up 0.35%. The S&P ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies –  was 0.10% higher.

The local bourse was boosted by US stocks overnight with the S&P 500 entered a new bull market with the index gaining 0.62%. The index is up 20% from its lows in October 2022, which is a marker of a bull market.

A rally in tech stocks saw the NASDAQ up +1.02%.  Big tech names like Apple, Alphabet, Microsoft all rose after a big jump in US weekly jobless claims signalled a cooling jobs market.

Of the 11 ASX sectors, eight were in the green today.  Following the NASDAQ’s lead to top today’s winners was the IT sector, up 1.63% followed by materials rising 1% and consumer discretion adding 0.56%.

Utilties led the laggards today, down 0.42% followed by industrials which dropped 0.33% and energy down 0.26%.

Asian markets have also been up today, despite investors digesting key economic data coming out of China.

While much of the developed world is dealing with sticky inflation China’s consumer price index saw a 0.2% rise in May and its producer prices fell 4.6% year on year on the back of lower commodity prices along with weaker domestic and foreign demand.

Watchful eyes are now on China’s central bank – The People’s Bank of China – to see if it lowers interest rates on the weaker economic figures to give a boost to the country’s economy, which is still recovering from prolonged Covid-19 lockdowns.

At 4pm (AEST) Hong Kong’s Hang Seng was up 0.61%, while in mainland China the Shanghai Composite was up 0.30%.

In Japan, the Topix was rose 1.56%, while the Nikkei 225 was up 2.01%.

On Monday we can all enjoy a little reprieve from this week’s volatility with the Aussie bourse closed as all states and territories except Queensland and WA enjoy the King’s Birthday long weekend.

 

TODAY’S ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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Up on the winners list today is Limeade (ASX:LME), which has surged more than 300% after it will be acquired by US-based WebMD Health Services, part of WebMD Health Corp for an all cash deal valuing the employee wellbeing company at ~$112 million.

WebMD will acquire 100% of the shares/CDIs for cash of $0.425 per share/CDI. The offer price represents a 325% premium to the last traded price of Limeade and a 217% premium to the 30-day volume-weighted average price (VWAP) to June 7, 2023.

The offer price implies a fully diluted market capitalisation for Limeade of ~$111.5 million and an enterprise value of ~$112 million.

Also on the winners list today is Marquee Resources (ASX:MQR) after announcing it will accelerate the farm-in agreement over the lithium-only rights at MQR’s West Spargoville Project (WSP) with the $13.5 bn capped miner MinRes (ASX:MIN).

WSP is in the Southern Yilgarn of WA, which also hosts the 26Mt Bald Hill mine, MIN’s own 71Mt Mt Marion mine, Liontown Resources’ (ASX:LTR) 15Mt Buldania project and Essential Metals’ (ASX:ESS) 11.2Mt Pioneer Dome project.

As Stockhead’s Reuben Adam’s reported MIN recently built a blocking stake in ESS to prevent the tiddler from being acquired by IGO (ASX:IGO) and its partner in arms, China’s Tianqi.

Chris Ellison’s firm has now acquired an initial 25% interest in the lithium rights at WSP by funding ~$4.8m on exploration in less than 12 months.

 

TODAY’S ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks:Rio Tinto (ASX:RIO) 

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LAST ORDERS

With a focus on LiB recycling and associated activities Hannan’s (ASX:HNR) has found a new CEO, today announcing the appointment of Brett Salt to the top job.

HNR said Salt has a career spanning close to three decades in the resources industry, including more than 22 years with Rio Tinto (ASX:RIO), and has held a variety of senior roles across Asia-Pacific, North America and Europe.

More recently, Salt also held senior executive positions with Turquoise Hill Resources, South Gobi, Ferrexpo and Fremantle Ports.

HNR was re-admitted to trading on the ASX in December 2022 with a focus on LiB recycling and associated activities.

The company has rights (via licensing arrangements) to commercialise the lithium battery recycling technology developed by  Neometals, which is HNR’s largest shareholder (26.09%).

“I’m very excited to be embarking on what promises to be a rewarding journey for Hannans and its stakeholders. With world leading battery recycling technology to be deployed within highly supportive regulatory environments in Europe and the UK, I’m convinced that the Hannans model possesses huge potential,” Salt said in an announcement. 

For the gig Salt will be paid $300k annually, comprising base salary and super contribution plus there’s short term and long term incentives comprising of an impressive amount of shares in HNR.

Small cap medical device and digital health technology company Artrya Limited (ASX:AYA) announced this afternoon that it’s heading in the right direction as it pursues US regulatory clearance for its Salix Software System product.

AYA said it has completed a successful submission meeting with US Food and Drug Administration (FDA).

During the Q-Sub meeting, AYA and the FDA agreed on a pathway to 510k regulatory clearance for the Salix Software System, which aids radiologist and cardiologists in the analysis of 2D/3D coronary images acquired from Coronary Computed Tomography Angiographic (CCTA) scans.

AYA  discussed their multi-reader, multi-site study with the FDA and received feedback on the study design in preparation for their 510k submission.

CEO Mathew Regan said the Q-sub meeting enabled AYA to obtain invaluable feedback on its regulatory strategy, product definition, intended use, product performance and testing along with clinical validation requirements.

 

TRADING HALTS

Avenira (ASX:AEV) – Pending announcement on a land access agreement in the Northern Territory

IXUP (ASX:IXU) – Pending update on acquisition of Betstop National Self-Exclusion Register Contract and convertible note capital raising

Navarre Minerals (ASX:NML) – Update on company’s financial arrangements

Alvo Minerals (ASX:ALV) – Capital raise

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