Here are the key ASX small cap winners and losers at 12pm AEST Wednesday.

The ASX Small Ords was up 0.3 points at 2812 by lunch.

In the green

Cobalt miner Highlands Pacific (ASX:HIG) has struck a deal with Canadian miner Cobalt 27, sending its share price up 34 per cent to 12.5c at midday.

The two have agreed to a private placement of $15 million at 10.5c a share as well as a $150 million “streaming” deal in respect of future production from its Ramu Nickel cobalt mine.

Streaming refers to an agreement where an investor agrees to purchase a percentage of a company’s future production at a fixed price below market value.

New funds mean Highlands can fully repay its debt on the project, and will increase its interest in the project to 11.3 per cent.

The deal was a fundamental transformation for the company, said boss Craig Lennon.

Melbana Energy (ASX:MAY) is one step towards drilling its Giant Beehive prospect today, after receiving environmental approval for its 3D seismic survey.

Beehive, which sits in the Joseph Bonaparte Gulf off the coast of the Northern Territory, is one of the biggest, undrilled hydrocarbon structures in Australia.

The news sent the stock up 30 per cent to 1.3c at midday.

Melbana expects to start survey activity in July and have it completed by the end of August.

The Beehive 3D Seismic Survey is operated by Australian energy company Santos and is fully funded by French major Total and Santos (ASX:STO).

Coconut-based non-plant fabrics from Nanollose (ASX:NC6) have sent it shares up as high as 34 per cent in morning trade.

The stock settled up 24 per cent to trade at 18c at lunch.

Nanollose debuted its Nullabor fibre, the world’s first plant-free rayon fibre made from coconut by products at the a textiles conference in Canada overnight.

It says the fabric shows its microbial cellulose-to-fibre technology is scalable and demonstrates the ability to produce fibres suitable for fabrics in textiles and clothing.

Smart light-switch maker Quantify (ASX:QFY) has jumped 17 per cent to 4c on no news.

Earlier this month the company signed a deal with US-based Electronics Caregiver for development, sales, marketing and distribution using its hardware in the US and Australia.

Miner Minrex Resources (ASX:MRR) rose 16 per cent to 5.8c on no news.

Last week, the company announced the potential for standalone scandium deposit at its Pacific Express project based on historic leaching.

Director Simon Durack described the find as a “prospective game changer” for the prospect.

In the red

Organic fast food chain Oliver’s Real Food (ASX:OLI) plunged as much as 56 per cent on news of  a significant drop in expected earnings.

The shares settled down 44 per cent at 13.5c by lunch.

It’s the second time in a year Oliver’s has announced a downgrade — this time full-year EBITDA earnings are expected at $3 million to 3.3 million, as opposed to $4.8 million.

Sales revenue had been forecast to hit $41.9 million in the prospectus after Oliver’s listed in June last year.

It’s now expected to be in the range of $36 million to $37 million.

Oil and gas play Octanex (ASX:OXX) has dropped 43 per cent to 1.7c on no news.

After reporting outstanding drill results yesterday, Lodestar Minerals (ASX:LSR) slipped back 20 per cent to trade at 3.5c.

The company was the biggest gainer yesterday — up as much as 70 per cent on the news — but still remained above its Tuesday open price.

The explorer reported its best ever drill results at its Contessa site — which it says extends well beyond current drilling — as well as its highest grades to date at Gidgee Flat.

The results required immediate follow up, with more diamond drilling planned.

AI healthtech Resonance (ASX:RHT) fell 17 per cent to 2.3c on no news.

The company announced a deal to distribute its diabetic retinopathy AI tool earlier this month — which sent it to highs of 3c but today way was back at its pre-deal levels.

Bryah Resources (ASX:BYH) was trading down 16 per cent at 12.5c with no news.

Yesterday its Gabanintha joint venture partner Australian Vanadium (ASX:AVL) reported cobalt at the project – of which Bryh holds no mineral rights.