Tech and cannabis lead this week’s ASX small cap winners and losers
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MGC Pharma shareholders applauded this week as the cannabis producer announced a deal that would make it Australia’s highest paid cannabis supplier.
MGC (ASX:MXC) doubled to 7.5c on Friday following news it would supply 15,000kg a month of cannabidiol cosmetic products to Korean cosmetics maker Varm Cosmo.
The deal will deliver $40 million in annual revenue for MGC.
“It marks the culmination of much work in building our operations and our brand within this emerging market,” MGC chief Roby Zomer said.
It was a great week for newly christened tech stocks with SenSen Networks, Mobecom, and Nanollose all enjoying strong starts to life on the ASX.
Robo-parking cop provider SenSen Networks – which floated via a back-door listing through Orpheus Energy, hit 20c in its Wednesday debut — double its offer price of 10c.
(Sen Sen changed its code from OEG to SNS on Friday.)
The shares closed Friday at 17c – up 75 per cent for the week.
SenSen develops car-mounted “smart sensors” that can automatically read number plates at normal driving speeds. They can also be installed at fixed locations to catch offenders in school zones or clearways.
Mobecom (ASX:MBM) started trading at a premium on the ASX Tuesday after raising $5.1 million at 20c a share and completing a back-door listing through Waratah Resources.
Mobecom manages a loyalty platform called airBux, which allows points from an airline, bank, or daily coffee order to be redeemed for rewards at other businesses such as a dry cleaner, restaurant or travel agent.
Mobecom closed up 50 per cent for the week at 30c.
Nanollose — an innovative Aussie outfit that makes plant-free fibres from liquid bio-mass such as beer, wine and food waste — enjoyed a 30 per cent jump on its first day of trading.
The group is tapping into a trend for sustainable fashion which “is transforming product design and manufacturing”, McKinsey’s 2017 State of Fashion report found in December.
In some markets, more than 65 per cent of consumers actively seek out sustainable fashion and products, McKinsey reported.
Nanollose closed the week at 35c – a 75 per cent premium to its issue price.
Peel Mining timed its discovery of the new Southern Nights prospect perfectly with the zinc price at 10-year highs.
Mineralisation at the prospect ranked as the best the company had encountered to date, Peel told investors. Subject to tests it could be the best intercept encountered since Peel’s inception a decade ago.
The Pilbara rush continued apace, with Sayona Mining and Korab Resources both enjoying big price jumps after gold-related announcements.
The Fortescue Group is made up of mafic volcanic rocks found in the Fortescue Basin in the Pilbara Craton which are known to host gold and other minerals.
The stock (ASX:SYA) jumped 31 per cent to 1.7c, with more than 150 million shares changing hands.
Meanwhile Korab Resources snapped up seven exploration licence applications prospective for Witwatersrand-style conglomerate gold.
Witwatersrand refers to the Witwatersrand Basin in South Africa — a geological formation that houses the world’s biggest known gold reserves, producing 2 billion ounces or about half of gold ever mined.
Korab (ASX:KOR) jumped as much as 43 per cent to an intraday high of 4c before cooling to 3.5c — still up 25 per cent for the day.
Korab finished the week at 2.8c.
Here are the best performing ASX Small Cap stocks for Oct 16-29:
At the other end of the table, Netccentric shares fell 29 per cent to 2c after a fight boardroom fight spilled into the public.
A fight that’s been brewing for months among the co-founders of Netccentric exploded, with legal threats and calls to rid the board of the ex-CEO.
The Netccentric (ASX:NCL) board wants shareholders to vote out Cheo Ming Shen, who resigned as chief executive in January.
Here are the worst performing ASX Small Cap stocks for Oct 16-29: