Some assembly required: ScandiVanadium’s return to the ASX fails to excite
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The ASX has welcomed back furniture-assembler-turned-vanadium-explorer ScandiVanadium — but the reception from investors hasn’t been as warm.
The company (ASX:SVD) lit up the boards on Monday, but immediately fell below the 2.7c issue price of shares in its recent $3m capital raising.
ScandiVanadium closed its first session down more than 11 per cent at 2.4c, with nearly 13 million shares changing hands.
The stock slipped a further 8.3 per cent on Tuesday to an intra-day low of 2.2c on the exchange of another 5.1 million shares. It ended its second trading day at 2.3c.
ScandiVanadium rose out of the failed online furniture assembly platform business AssembleBay, but the company has reskinned itself a number of times over the years.
It was biofuels business Agri Energy up until 2011 before it acquired oil and gas exploration assets and became Sirocco Energy.
That became AssembleBay (ASX:ASY) in 2016, which threw in the towel in December 2017.
The company has since picked up a vanadium project in Sweden called “Skåne”.
ScandiVanadium, which plans to kick off a maiden drilling program in early 2019, wants to take advantage of the expected growth in demand for vanadium used in vanadium redox flow battery (VRFB) applications.
Based on very limited historic exploration, the company has estimated an exploration target of 610 million to 1.2 billion tonnes at an average grade of 0.5 per cent to 0.8 per cent vanadium pentoxide.
Holding out hope for a pre-Christmas debut
There are still a few IPOs and re-listings to get across the line before the end of the year.
Norwest Minerals is hoping to make its debut this week after closing its $6.6m IPO.
Other companies penned in for this week include coking coal play 3G Coal, gold explorer Expose Resources, therapeutic goods company Fiji Kava, software provider AXS Group, and precious and base metals explorer XS Resources.
Here’s a list of upcoming IPOs:
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