Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Frasers invests £75m into AO World
Symptomatic of a summer Monday and news is thin on the ground, but an announcement from Frasers LON:FRAS that it had taken a 18.9% strategic stake in online electrical retailer AO World was eye-catching. The deal is seen as symbiotic with Frasers gaining access to both knowledge and an existing two-man delivery network which will help it distribute its own larger items. The relentless evolution of the UK retail landscape continues.
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#2. Futura Medical granted FDA approval for OTC ED therapy
Futura Medical LON:FUM has announced that it has received approval from US regulators to sell its erectile disfunction gel on an over-the-counter basis in the country – the first such topical treatment to be granted the status. The therapy has already been approved and is on sale in both Belgium and the UK. Further territories across Europe, the Middle East and Asia will follow, although with an estimated 22 million sufferers, the US is seen as the largest global market for erectile disfunction.
#3. Capital Limited wins major African contract
Capital Limited LON:CAPD, the mining services company, has this morning announced that it has been awarded a new contract and an extension of its revolving credit facility. The contract in Gabon runs for five years and will generate $30m in annual revenues once fully operational. This is however coming at the expense of further CapEx, although the RCF has been extended to ensure sufficient headroom.
