Alien Metals (UFO) & Avacta (AVCT): Are these AIM stocks worth buying?

Highlights 

• Avacta suspended its covid-19 rapid antigen tests as of 1 November in accordance with new UK health department rules.
• Alien Metals completed a share placement of £4 million in gross proceeds from a share placement of 470.588 million shares at a price of 0.85 pence per placing share.

The London Stock Exchange’s junior market, Alternative Investment Market (AIM) has seen record levels of liquidity recently, with its average daily trading value rising by a whopping 46.5 per cent to £482,574 on a year-to-date basis in 2021, according to data from the UK chartered accounted company UHY Hacker Young.

The average daily trading value of AIM stocks stood at £329,409 in 2020. The rise has been attributed to investors increasingly seeking high growth companies (which is a key characteristic of AIM-listed firms) to invest in amid a market recovery following the pandemic induced slump seen last year.

In view of this, let us take a look at 2 AIM-listed stocks and how they have performed:

1. Avacta Group PLC (LON:AVCT)

FTSE AIM 100 index listed firm Avacta Group is a clinical-stage biopharmaceutical company.

The company said it suspended the sales of its AffiDX SARS-CoV-2 latest flow rapid antigen tests after the UK Health Security Agency's Medical Devices’ regulations came into effect as of 1 November.

The company is now awaiting approvals after its evaluation gets completed.

(Image source: EODHD/Others)

Image description: AVCT share price and volume

Avacta’s shares were trading at GBX 106.50, up by 0.47 per cent on 8 November at 10:06 AM BST. Meanwhile, the FTSE AIM 100 index was trading at 6,076.10, down by 0.13 per cent.

The company’s market cap stands at £268.94 million, and its one-year return is at negative 37.60 per cent as of 8 November.

2. Alien Metals Ltd (LON: UFO)

FTSE AIM All-Share index listed Alien Metals is a UK based international minerals exploration and development company.

The company recently raised about £4 million in gross proceeds from a share placement of 470.588 million shares. It was bought by some institutional and other investors at a price of 0.85 pence per placing share.

The company plans to use the net proceeds of this placing to help in the Phase 3 infill and other activities at its Hancock Iron Ore project, for its mining-related permitting and other planning activities at the Hancock project and also in several other areas.

(Image source: EODHD/Others)

Alien Metal’s shares were trading at GBX 0.83, down by 5.71 per cent on 8 November at 10:15 AM BST. Meanwhile, the FTSE AIM All-Share index was trading at 1,235.98, down by 0.10 per cent.

The company’s market cap stands at £30.01 million, and its one-year return is at negative 49.70 per cent as of 8 November.