Small Cap Feast

Small Cap Feast – 02 April 2020

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Main Market (Premium)

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

 

Breakfast Buffet

Avacta 20.5p £35.2m (AVCT.L)

The developer of Affimer® biotherapeutics and research reagents, is pleased to announce a proposed Subscription to raise gross proceeds of £2 million at 18p, a 2% discount to 14 day volume weighted average of 18.4 pence. The two subscribers are Clare Hughes (wife of Richard Hughes, co founder of Zeus Capital) and Mahmud Kamani, co-founder of Boohoo.com.

The Company intends to utilise the net proceeds of the Subscription to continue to execute the strategy outlined last October. The Company’s key objectives are to enter the clinic with its first preCISION chemotherapy programme, to secure further significant drug development partnerships that help progress the Company’s technology platforms, and to continue to grow revenues and secure licensing partnerships for Affimer® diagnostics reagents.  Given the current economic climate the Board have deemed it prudent to take on a small amount of additional equity capital at this time to ensure that it is in a strong position to exploit progress after the coronavirus pandemic is over.

 

ULS Tech 34.35p £22.3m (ULS.L)

The provider of online B2B platforms for the UK conveyancing and financial intermediary markets, provides a trading update for FYMar20. During the Period, the Company continued to focus on the development and roll-out of its new flagship paperless conveyancing product, DigitalMove.

Despite some impact on conveyancing completions in the last few weeks of the Period due to COVID-19 making house-moving increasingly difficult, the Company expects to announce underlying pre-tax profits for the year ended 31 March 2020 in the region of £4.7 million, and to have generated significant levels of Operating Cashflow.

In the immediate term the Company expects to see a sharp fall in revenue and profitability while social distancing measures remain in place. Thereafter the Company expects to benefit from its robust, profitable business model, underpinned by strong cash generation and is confident in continuing to invest in DigitalMove to ensure that the business is able to move quickly as and when the housing market improves. In the meantime, there is an expectation that re-mortgaging volumes will hold up much better than transactional volumes providing some continuity of revenue in the short-term.

Gear4music 205p £42.9m (G4M.L)

The largest UK based online retailer of musical instruments and music equipment, announced a further FY Mar 20 trading update

As a result of the commercial and operational progress we have made during the last 12 months, we now expect profits for the financial year ended 31 March 2020 to be ahead of previous expectations.

Following the necessary Government restrictions put in place to tackle the spread of COVID-19, we are pleased to say we have been able to quickly reconfigure our operations to ensure that we are keeping our teams safe. This has been due to the huge effort our incredible staff have made during this very challenging time.

The health and safety of our employees and customers has been our absolute priority, and we have implemented fundamental changes across our business to ensure a safe environment in line with current Government guidance. Our call centre and administrative teams are successfully working from home, and we have implemented a wide range of social distancing measures and safety protocols designed to protect employees working in our distribution centres in the UK and Europe.”

 

Centamin 120.95p £1.4bn (CEY.L)

Appointment of Martin Horgan as Chief Executive Officer  and Director of the Company, effective 6 April 2020.

Martin is a qualified mining engineer with 25-years’ experience in multiple areas of the mining industry. In his career he has shown a strong strategic and operating acumen as well as demonstrating a longstanding commitment to environmental and social responsibility within mining, which is central to Centamin’s decision-making and corporate strategy.

From 2009 to 2019 Martin was the Co-Founder and CEO of Toro Gold, where he oversaw the discovery, development and operation of the Mako Gold Mine in Senegal.  Toro was acquired by LSE and ASX listed Resolute Mining in August 2019.   Prior to founding Toro, Martin was Executive Director of BDI Mining, an AIM listed diamond producer.

 

Corero 4.1p £20.3m (CNS.L)

New customer wins for its SmartWall DDoS protection product including a new Juniper customer, additional purchases from existing customers, a large Support and SecureWatch security services contract renewal, and continued momentum from the relationship with GTT Communications, totalling $2 million over the course of the contracts.

The new customer contracts, both of which are for a period of three years, are as follows:

a US regional service provider of internet and telephony services, for a DDoS protection as-a-service (“DDPaaS”) contract incorporating multiple SmartWall TDS 100Gbps solutions with supporting SecureWatch® services; and

the Japanese subsidiary of one of the world’s leading on-line brands, for a software subscription for the Juniper 10Tbps SmartWall TDD solution.

 

Tertiary Minerals 0.28p £2m (TYM.L)

Has raised £600,000 in a placing to Precious Metals Capital Group LLC, an institutional investor.

  • Termination of funding agreement with Bergen.

The proceeds will be used by the Company to fund ongoing exploration once the recently announced exploration programmes at the Pyramid Gold and Paymaster Polymetallic Projects in Nevada are completed and to ensure that the Company has sufficient working capital for the foreseeable duration of the Covid-19 pandemic .

 

Tekcapital 6.25p £4.93m (TEK.L)

 Portfolio Company Update: Salarius. Notes that the Mexican Ministries of Health issued a final rule ( NOM-051 ) that mandates a new front of package labeling (FOPL) system for all packaged foods. This FOPL is designed to warn consumers against products that exceed strict thresholds for sodium, caloric content, added sugar and saturated fats.

Under the new rule, salty snack brands will need to prominently add the warning “Excess Sodium” (“Exceso de Sodio”) if the product exceeds 350 milligrams of sodium per 100 grams of product.

MicroSalt®, an all natural, proprietary salt made with micron-sized particles that dissolve in the mouth significantly faster than regular salt, delivers an increased sensation of saltiness with approximately 50% less sodium. In light of this new regulation, the directors believe that MicroSalt provides a solution to reduce sodium content without compromising flavor, compared to other sodium reduction methods which adversely affect taste.

 

Mercia Technologies 18p £79m (MERC.L)

Two of its direct portfolio companies, The Native Antigen Company Limited (“NAC”) and Oxford Genetics Limited (“OXGENE”) have formed a new strategic partnership to scale up COVID-19 antigen production.

Current COVID-19 tests use the polymerase chain reaction that detects the virus’s genome. Although an important first step, these tests can only detect ongoing COVID-19 infections. NAC’s antigens, already supplied on a global basis, can be used to develop smaller, point-of-care antibody test kits that could also be used on a mass basis at the community level for the confirmation of historic COVID-19 infection and provide research agents for the development of vaccine candidates. This partnership will see both companies working together towards developing more scalable technologies for cost-effective infectious disease reagent production.  The partnership will enable large-scale production of high-quality COVID-19 antigens, which is a critical step toward the development of diagnostics and vaccines for this global challenge.

Mercia has backed both businesses from seed investment and currently holds fully diluted equity stakes of 30.6% in NAC and 30.2% in OXGENE.

 

e-therapeutics 8.35p £26.9m (ETX.L)

Appointment of Dr Laura Roca-Alonso as Chief Business Officer.

Dr Roca-Alonso brings a depth of strategic expertise in advanced therapeutics and platform technologies, encompassing corporate and business development, portfolio strategy, business planning, competitive intelligence and communications. From 2014 until 2019, she held positions of increasing responsibility at Silence Therapeutics, a publicly listed RNAi company, culminating in her role as VP, Head of Corporate Development.

 

Shearwater 230p £50.9m (SWG.L)

The organisational resilience group, provides an update for the financial year ended 31 March 2020. 

 

Reported unaudited underlying EBITDA1 is expected to be in excess of £3 million compared to a loss of £1.4 million in the prior financial year, with the Group posting its fourth consecutive quarter of profitable growth. Good cash generation in the period has resulted in an unaudited cash balance of £3.0 million as at 31 March 2020.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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