Small Cap Feast

Small Cap Feast – 01 April 2020

Dish of the Day:

Digital Landscape Group (Formerly Landscape Acquisition Holdings) – Completion of RTO on the Official List..  A global cell site lease investment firm focused on the acquisition and ownership of property (ground, tower, rooftop and in-building) underlying wireless sites. Transaction of $860m (cash, shares and debt assumption) including a $100m private placement.  DLGI.L As of December 31, 2019, the target had in-place annualized revenue pursuant to existing lease agreements of US$62.1 million.  Mkt cap £411m.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m.  Timetable now extended.

 

Breakfast Buffet

Touchstar 25p £2.1m (TST.L)

 Trading  update and Covid-19 assessment.

First quarter trading was broadly on budget with growth from continuing businesses up 40% compared to the first quarter of last year.  During this period, with support from the Government’s Coronavirus Job Retention Scheme, TST intends to maintain employment of all staff for as long as is practicable. TST remains committed to providing the best customer service and support to  clients that it can, ensuring that they can function effectively.

“We, like other businesses, have seen a reduction in new business enquiries and are planning that this rate of decline will increase. We also expect the Government advice on business activity to become more strident in the coming weeks.

We have had a good first quarter, and we still have outstanding orders to ship to customers over the coming months.”

Remains debt free and is  “reducing cash expenditure to protect our liquidity in the short term whilst continuing with a few key long-term strategic programs. In our supply chain we will only spend where necessary to deliver confirmed orders.”

 

Botswana Diamonds 0.55p £3.7m (BOD.L)

The Botswana Government has awarded six new Prospecting Licences PL 017 -18 of 2020 and PL 066 – 069 of 2020 to Sunland Minerals (Pty) Ltd, a wholly-owned subsidiary of BOD.  The licence tenure is for a period of three years until 31 March 2023. The licences cover an area of 4,319 square kilometres in the Central and Kgalagadi Districts, colloquially known as the Kalahari.

Furthermore, the Botswana Government has renewed four existing Prospecting Licenses PL001 – 004 of 2017 to Sunland covering a total of 1,406 square kilometres. Airborne and ground magnetic surveys from previous work conducted by Sunland Minerals on these licences have revealed well defined targets and subsequent soil sampling over the targets identified heavy concentrations of Kimberlitic Indicator Minerals (KIMs) over these targets particularly Chrome Diopsides strongly suggesting an underlying kimberlite source. An environmental study is in progress to pave the way for the drilling of these high priority targets.

Notswana lockdown beginning 2nd April for 28 days.  Work will commence on the licenses following lifting of the state of emergency and lockdown.

 

Myanmar Investments 0.81p £30.8m (MIL.L)

MIL, together with each of the other shareholders of Myanmar Finance  International Limited, have accepted an offer to sell the entire share capital of MFIL to Thiti korn  Plc (TK) ,a consumer  finance  company incorporated in Thailand and listed on the Stock Exchange of Thailand .  The Offer is binding only on TK.  MIL holds a 37.5% interest in MFIL, a Myanmar focused microfinance business.

The Offer is subject to a number of conditions precedent including the receipt of TK shareholder approval, executing definitive agreements, regulatory approval from the Myanmar authorities and lenders to MFIL.  It is currently anticipated that TK will seek its shareholder approval at its AGM to take place on 23rd April 2020 with regulatory approval excluding any delay caused by COVID-19, normally expected to take between 2 and  6 months to obtain. The minimum consideration for this transaction will be calculated based on a pre-agreed formula of  2X the audited book value of MFIL. This sale is expected to lead to a modest uplift in the NAV.

 

RedT Energy 1.025p £9.75m (RED.L)

On 16 March 2020, the Company announced a proposed Open Offer of a maximum of 380,500,174 Open Offer Shares at 1.65p per share. The Open Offer closed for acceptances at 11.00 a.m. on 31 March 2020.

Valid acceptances have been received from Qualifying Shareholders in respect of 7,063,690 Open Offer Shares together with applications for a further 2,344,234 Open Offer Shares under the Excess Application Facility, equating to £155,231 raised.

Subject to approval by Shareholders at the Extraordinary General Meeting to take place later today and subject to Admission, the Company will have raised a total of £8.065 million (before expenses) as a result of the Placing and Open Offer.

Subject also to approval by Shareholders, the Company will change its name to Invinity Energy Systems plc and the Ordinary Shares will be consolidated into Consolidated Ordinary Shares at the rate of 1 Consolidated Ordinary Share for every 50 Ordinary Shares.

 

Agronomics 4.9p £17.4m (ANIC.L)

Agronomics has  completed a Subscription in Seattle Food Tech, Inc., trading as Rebellyous Foods for US$ 99,999.43 for 92,438 Series A Preferred Stock. The Subscription will increase Agronomics existing stake from 1.00% to 1.23% on a fully diluted basis .

Since the Company’s initial investment, announced on 15 October 2019, Rebellyous has moved to a new 21,000 sq. ft. headquarter facility in West Seattle, WA, USA, allowing for innovative product development and rapid scaling of its production capacity. The team has also had recent success expanding its client base, selling its plant-based chicken nuggets to schools, cafeterias and hospitals across the USA. Rebellyous is also continuing the development of its optimised production machinery to improve the efficiency of plant-based protein manufacture at scale.

 

Ariana Resources 2.86p £30m (AAU.L)

Completion of a detailed independent assessment of the Kiziltepe, Tavsan and Salinbas projects by international consultants of the Proposed Partner, following completion of the Memorandum of Understanding  announced on 25 November 2019.

Highlights:

 

  • Initial draft due diligence report has been completed by the technical consultants to the Proposed Partner.

 

  • The Proposed Partner, Proccea and Ariana have completed a further extension to the MoU, to 30 April 2020, to enable sufficient time to review due diligence information.

 

  • Results of the draft report are being evaluated by the Proposed Partner and draft definitive legal agreements are also under review by the Parties.

 

Greatland Gold 4.6p £168m (GGP.L)

Update on Newcrest’s activities at Greatland’s Havieron Project in the Paterson region of Western Australia.

Newcrest has implemented measures to mitigate the risks of the COVID-19 pandemic to its project workforce and stakeholders and is continuing to closely monitor developments.

  • Newcrest has successfully completed Stage 2 of the Farm-in Agreement (US$20 million in expenditure to date) and has commenced Stage 3 of the Agreement.

To complete Stage 3 of the Farm-in Agreement, Newcrest must spend an additional US$25 million and deliver a Pre-Feasibility study for the Havieron Project. Newcrest will provide updated Havieron drilling results in its Quarterly Exploration Report to be released on 30 April 2020.

Due to COVID-19 related issues, Greatland’s exploration activities in the Paterson, which were originally scheduled to commence in April 2020, are being temporarily delayed. Greatland is in a strong financial position and remains well financed to conduct all planned activities during calendar year 2020.

 

Diurnal Group 30.5p £37.1m (DNL.L)

Diurnal, announces that the Marketing Authorisation Application (MAA) for Chronocort® (modified release hydrocortisone) as a treatment for the rare condition congenital adrenal hyperplasia (CAH) in Europe has passed validation with the European Medicines Agency. The EMA validation of the MAA confirms that the submission is sufficiently complete to begin the formal review process.

CAH is an orphan genetic condition caused by a block in cortisol production, an essential adrenal steroid hormone required for healthy life. A lack of cortisol in turn causes the over-production of male steroid hormones (androgens). Cortisol deficiency and over-production of androgens can lead to increased mortality, infertility and issues during sexual development, including ambiguous genitalia, precocious puberty and short stature. Sufferers, even if treated, remain at risk of death through an adrenal crisis. The condition is estimated to affect a total of approximately 41k adult patients in Europe, with over 400k in the rest of the world.

 

7digital Group 0.245p £6m (7DIG.L)

The global leader in B2B end-to-end digital music solutions, is pleased to announce that it has signed a contract renewal to continue providing music streaming content to GrandPad Inc., the first purpose-built tablet for people over the age of 75.  GrandPad is delivered to seniors ready to use, right out of the box. The design is ergonomically friendly for older adults, with enhanced sound and video quality, intuitive buttons, and key applications pre-installed to overcome potential physical challenges (such as hearing or vision loss and dexterity issues) and fear of technology.

 

Frontier IP 66p £33.45m (FIPP.L)

Portfolio company Exscientia, a world leader in AI-driven drug discovery, is to progress compounds that could rapidly become viable drugs for treating COVID-19 in a joint initiative with Diamond Light Source and Calibr, a division of Scripps Research (USA). Through the transatlantic alliance, Exscientia has gained access to Calibr’s collection of 15,000 clinically-ready molecules, those which have already been shown to be safe for use in humans or have passed pre-clinical safety studies.

Exscientia will start by rapidly screening the entire collection to identify existing compounds that could be repurposed to tackle COVID-19. In the longer term, the Company plans to use its AI to design even more effective compounds.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

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