Global Leader in Rare Earths Empyres Emerges on the AIM Market
In the ever-evolving world of technology and innovation, two British companies are making significant strides in their respective fields. Mkango, a global rare earths company, and Solvonis Therapeutics, a life sciences group, are capturing the attention of investors and industry experts alike.
Last week, the AIM All-Share index outperformed other markets, rising 1%, with Mkango contributing to this growth. The company is advancing a transformative merger to form a Nasdaq-listed, vertically integrated rare earths company focused on mining and refining, while maintaining separate recycling operations. This move is positioned to accelerate growth and strengthen Mkango’s role in the global rare earths supply chain with an emphasis on sustainability and critical material demand.
Mkango’s Songwe Hill project in Malawi and the Pulawy separation plant in Poland, both strategic under the EU Critical Raw Materials Act, will be spun off into a new company named Mkango Rare Earths (MKAR). The combined company, expected to list on Nasdaq under the ticker MKAR, has a pre-expense pro forma valuation of approximately $400 million, excluding PIPE financing proceeds or funds in CPTK’s trust.
Meanwhile, Solvonis Therapeutics has more than doubled in value since acquiring Canada-listed Awkn Life Sciences last month. Under CEO Anthony Tennyson, Solvonis has been transformed from a failing polymers firm into a vibrant life sciences group working on cutting-edge treatments for conditions such as post-traumatic stress disorder. Solvonis's chief scientific officer is Professor David Nutt, one of the UK's most eminent researchers. The company also has a phase III asset developed to treat alcohol use disorder.
The group of 17 metals known as rare earth elements, including neodymium, dysprosium, and lanthanum, are seldom found in concentrated forms, making them expensive and environmentally challenging to extract. Neodymium, for instance, is used in the magnets that power electric vehicles and various electronic devices, such as iPhone speakers. Lanthanum, on the other hand, is used in camera lenses and hybrid batteries. Other rare earth elements are essential for polishing glass, refining oil, and coloring TV screens.
In the age of artificial intelligence, rare earth elements are increasingly strategic due to their use in data centers and advanced computing systems. China controls over 80% of the global processing of rare earth elements, giving it significant geopolitical leverage. However, with the emergence of companies like Mkango, the balance may begin to shift.
Elsewhere in the market, the small-cap index showed increased investor confidence, with numerous fundraisings occurring last month. However, not all companies have fared well. The sports data firm, unnamed in the paragraph, is de-listing from AIM on July 7 due to rising costs, regulatory burdens, and limited access to fresh capital. Versarien, the graphene materials specialist, is nearing the end of its cash runway and warned it may be unable to pay its debts by August without additional restructuring action and fundraising.
In contrast, Thruvision Group, a walk-through security specialist, ended the week a third higher due to a fundraiser that will bring in at least £2.5million, extending its cash runway to 2027. As the market continues to evolve, these companies will undoubtedly play a crucial role in shaping the future. It seems that the market is only just beginning to recognize Solvonis's true potential.
[1] Mkango Resources Ltd. (2021). Mkango Resources Limited Announces Extension of Exclusivity Period for Proposed Business Combination with Crown PropTech Acquisitions Corp. Retrieved from https://www.mkango.ca/news/mkango-resources-limited-announces-extension-exclusivity-period-proposed-business-combination-crown-proptech-acquisitions-corp/
[2] Mkango Resources Ltd. (2021). Mkango Resources Limited Announces Proposed Business Combination with Crown PropTech Acquisitions Corp. Retrieved from https://www.mkango.ca/news/mkango-resources-limited-announces-proposed-business-combination-crown-proptech-acquisitions-corp/
[3] Mkango Resources Ltd. (2021). Mkango Resources Limited Reports Extension of Exclusivity Period for Proposed Business Combination with Crown PropTech Acquisitions Corp. Retrieved from https://www.mkango.ca/news/mkango-resources-limited-reports-extension-exclusivity-period-proposed-business-combination-crown-proptech-acquisitions-corp/
[4] Mkango Resources Ltd. (2021). Mkango Resources Limited Announces Extension of Exclusivity Period for Proposed Business Combination with Crown PropTech Acquisitions Corp. Retrieved from https://www.mkango.ca/news/mkango-resources-limited-announces-extension-exclusivity-period-proposed-business-combination-crown-proptech-acquisitions-corp/
Investing in stocks of Mkango, a company focused on rare earths, is gaining attention due to its pending merger with Crown PropTech Acquisitions Corp., aiming to create a Nasdaq-listed, vertical integrated rare earths company. This move is expected to strengthen Mkango's role in the global rare earths supply chain, particularly in the tech sector where elements like neodymium and lanthanum are crucial for smartphones, technology, and data centers.
Investors are also interested in Solvonis Therapeutics, a life sciences group that has more than doubled in value since acquiring Awkn Life Sciences. The company is working on cutting-edge treatments for conditions like post-traumatic stress disorder and alcohol use disorder, with Professor David Nutt, one of the UK's most eminent researchers, as its chief scientific officer.
Amidst the small-cap index showing increased investor confidence, not all tech companies have fared well. Some companies in the market, like the unnamed sports data firm, are facing challenges due to rising costs, regulatory burdens, and limited access to fresh capital, leading to delisting from AIM. In contrast, Thruvision Group, a walk-through security specialist, has shown resilience through a successful fundraiser, extending its cash runway to 2027.
