29. December 2020 | 11:01 CET
Nordex, Fokus Mining, Global Fashion Group - to the next level with full coffers
The fuel for corporate growth is often an investment. With new products or the development of previously untapped potential, the next expansion steps can be taken. But first, the initial step must be taken, i.e., raising or acquiring the necessary funds. We present three companies that have raised a lot of money this year and have excellent prospects in 2021.
time to read: 3 minutes by Carsten Mainitz
NORDEX SE - high order backlog
Nordex Group develops, produces and distributes onshore wind turbines. The range of services extends from the production of one turbine to the turnkey installation of an entire wind farm. The Nordex Group has installed more than 30 GW of wind power capacity in over 40 markets.
At the beginning of December, the Company raised EUR 200 million as part of a capital increase. These funds are intended to achieve the Company's medium-term strategic goals and strengthen its balance sheet. In the past fiscal year, the northern German Company generated sales of EUR 3.3 billion. The current order backlog of EUR 7.9 billion underlines the momentum of business development. In addition, a higher margin can be achieved by using the latest product platform.
Since the capital increase, the share price has gained almost 20%. Investors are convinced of the Group's growth prospects. The high order backlog shows that Nordex can continue to increase its sales substantially.
FOKUS MINING CORPORATION - The share price has multiplied, what now?
Fokus Mining is a Canadian exploration Company dedicated to finding precious metal deposits in the province of Quebec. Focus is on the Galloway project and in particular the exploration of the so-called Golden Triangle. The shares have made a brilliant rally this year and rose from CAD 0.05 to currently CAD 0.33, the high in summer was even CAD 0.46.
Given the sharp rise in the share price, the warrants with an average exercise price of CAD 0.27 are now in the money. As a result, the diluted (i.e. when the warrants are exercised) market capitalization is approximately CAD 29 million compared to a market capitalization of approximately CAD 19 million without this effect.
The Galloway property is located less than 30 km west of the Rouyn-Noranda mining district and has good infrastructure. The project comprises 3 concessions and 95 claims totalling 2,668 hectares. The property is located on the Cadillac-Larder Lake fault, a zone that the Company says has enabled numerous mines to produce more than 100 million ounces of gold over the past 100 years.
Within the project, Fokus Mining has defined four zones. The Morris, GG and Hendrick zones form the "Golden Triangle" due to their arrangement. The fourth zone, Hurd, is located 1.7 km away.
A total of 40,000 meters of drilling are scheduled to be drilled in 2020 and 2021 to evaluate the property's economic potential. The Company has raised sufficient funds for this purpose this year. We are eagerly awaiting new drilling results.
GLOBAL FASHION GROUP SA - targeting regional markets
Global Fashion Group addresses different regional markets through four established e-commerce platforms. The Luxembourg-based Company aims to establish itself as a leading fashion and lifestyle provider in growth regions, with a total of one billion potential consumers. Currently, the product range comprises 10,000 global, local and own brands. The customer base is growing dynamically and comprises presently 15.4 million people.
The strategic logic is to position the Company in markets with large populations that have below-average e-commerce penetration. The regions defined are LATAM (Brazil, Argentina, Chile and Colombia), CIS (Russia, Ukraine, Kazakhstan, Belarus), SEA (Indonesia, Singapore, Philippines, Malaysia, Brunei, Taiwan, Hong Kong) and ANZ (Australia, New Zealand). The regional focus markets are assigned the different platforms Dafiti, Lamoda, ZALORA and THE ICONIC, adapted to regional specifics.
In order to drive further growth, a capital increase with a volume of EUR 120 million was placed in mid-November. Investors who took advantage of the price of EUR 7.30 per share at the time were already almost 30% ahead yesterday. The market capitalization of the SDAX-listed Company is EUR 2 billion. In the current fiscal year, the Group could achieve sales of around 1.3 billion and a small operating profit. According to corporate planning, the Group should then also be in the black next year.