Small Cap Feast
Small Cap Feast – 03 April 2020
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
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.
MediaZest* 0.035p £0.5m (MDZ.L)
In the period from Oct 2019 to Jan 2020, the business performed well and trading was much improved from the first half of the financial year. For these four months alone, revenue was £1.2m and profit at the operating subsidiary MediaZest International was £167k at EBITDA level, generating a net profit of £127k after tax. At consolidated level, revenue was £1.2m with EBITDA profit of £58k and a small loss after tax of £5k.
Results for February and particularly March 2020 have been materially adversely impacted by the Covid-19 outbreak, as clients initially began to defer some projects and more recently temporarily close stores and other places of business. Whilst the UK and certain other countries remain in “lockdown”, all deployments and installations in progress are currently on hold until further notice. In particular this has affected key projects across the UK and in Milan, Copenhagen and Berlin, all of which are now expected to complete later in 2020.
It is expected that once a more normal business environment resumes, delayed projects, will be required to be completed and as such there will be an initial period when the Company will be extremely busy.
Beyond that, there are several ongoing roll-out programmes for clients with which the Group is engaged. These are currently on hold but also believed likely to resume promptly once the current restrictions on movement and store openings are lifted.
Bahamas Petroleum 1.5p £33.3m (BPC.L)
On 20 February 2020, the Company drew down £2.7 million of its £8 million convertible loan note facility with a substantial Bahamian based institutional family-office investor, the terms of which were announced at the time. On 17 March 2020 the Company announced the expansion of this Facility by a further £8 million, thus totalling £16 million, and, at the same time, drew down a further £2 million against this expanded Facility.
As announced on 26 February 2020, the investor has previously converted £1.44 million of the amounts drawn down by the Company into new ordinary shares. BPC has now received a conversion notice in respect of an additional £0.8 million, at a conversion price of 1.28 pence per share,.
Petrel Resources 5.25p £11.2m (PET.L)
Further to the November 2019 EGM, and subsequent Regulatory News Statements, Petrel Resources updates shareholders on its understanding with the Tamraz Group on a way forward:
The Tamraz Group, of Roger Tamraz, Michel Fayad, and Said Mehraik, will maintain their current interest of circa 32,086,538 ordinary shares. The High Court injunction over these shares will stay in place until all outstanding matters are resolved, to the satisfaction of the Court. It has not been possible to proceed with the finalisation of a second tranche of 64,035,976 shares due to the changed circumstances, taking into account the state of markets generally in the light of COVID-19, as well as oil price volatility. The Tamraz Group continues to work on possible investment proposals / deals to be presented to Petrel Resources plc. Should any of these proceed, it is envisaged that payment will be in the form of Petrel shares. The Board continues to review Michel Fayad’s position on the Board, and will make a further announcement in respect thereof in due course.
Elsewhere—Ghana— ready to initiate the Tano 2A work programme, as soon as the signed Petroleum Agreement is ratified, and subject to securing the necessary funding. Petrel continues as a 10% working interest partner with Woodside in Frontier Exploration Licence (FEL) 11/18, in the Irish Atlantic’s Porcupine Basin.
Joules Group 84.3p £75.35m (JOUL.L)
Joules, the premium British lifestyle brand, announced the completion of the placing announced yesterday. £15m at 80p.
As outlined in the launch announcement for the Placing, the proceeds of the Placing are expected to provide the Company sufficient liquidity headroom in a COVID-19-related downside scenario, as well as allow the Company to emerge relatively stronger from this unprecedented situation.
All Directors of the Company participated in the Placing, subscribing for 1,468,750 Placing Shares in aggregate, equating to 7.8 per cent. of the Placing.
Tanfield Group 3.1p £5m (TAN.L)
On 30 March 2020, the Company announced that despite ongoing attempts to resolve the dispute amicably, Snorkel and SKL filed the Motion in favour of their claims and against claims brought by Tanfield, without a trial, claiming that there were no genuine issues of material fact. The Board vehemently disagreed with the Motion and believed that it was without merit and subsequently opposed the Motion at a hearing held on 25 March 2020.
Following the hearing on 25 March 2020, the judge took the Motion under advisement. On 1 April 2020, after a review and consideration of the record, the court determined that, after reviewing the contract there appears to be genuine issues of material fact pertaining to the contract, its terms, and its execution and therefore denied the Motion brought by Snorkel and SKL. As a result of the Motion being denied, the US Proceedings will continue to progress, and the parties will now proceed in discovery.
Following the Loan of up to £700,000, as announced on 30 March 2020, the Board continue to seek advice in order to vigorously defend its position and will provide further updates to the market as and when appropriate.
Redcentric 103.5p £154m (RCN.L)
The UK IT managed services provider, announces the following changes to the Board. Dean Barber will step down from his position as Chief Financial Officer, effective immediately, and David Senior will join the board of directors and take over as Chief Financial Officer with immediate effect.
David has been with the Company in the role of Finance Director since 2017. He has been instrumental in building a strong finance team and made a significant contribution to the commercial successes of the Company over the last 3 years. David is a chartered certified accountant with 20 years of experience in finance, including in several senior positions with Wolseley plc.
Bango 117.5p £83.1m (BGO.L)
The mobile commerce company, has expanded its strategic partnership with South Korean big data business NHN Corp . NHN will invest £6.5M into the Audiens data platform business through an investment into Bango Deep Limited, the Bango subsidiary that owns Audiens. In addition, NHN is injecting its data science know-how and technology to accelerate the Audiens data platform business. Following this investment, NHN will own 60% of Bango Deep with Bango holding 40%.
The vision of the partnership is for Audiens to become a global data leader, through a technologically sophisticated, but easy-to-use Customer Data Platform (CDP), which enables brands of all sizes to plan, execute and analyze their online marketing activities. This expands on the initial relationship between Bango and NHN, announced in October 2019, which enabled app developers and marketers to access anonymized audiences of high value mobile and internet users in South Korea. What began as a further licensing deal (referred to in the Trading Update issued in December 2019) has evolved into this strategic partnership and investment agreement.
RA International 36.5p £63.36m (RAI.L)
The provider of services to remote locations in Africa and the Middle East has signed a further task order with IAP Worldwide Services, Inc for the provision of supply chain services.
RA International and IAP signed a Master Service Agreement (MSA) in March 2019 under which the Company is to provide supply chain services to IAP on a global scale. This is the second Task Order placed under the MSA and under the terms of the order RA International will provide services in an African country for a total value of up to USD 15.6 million. This order, which has already commenced, is currently anticipated to run until April 2023.
Soraya Narfeldt, CEO of RA International, commented: “We are excited to be working with IAP on another important project and based on previous work for this client, we believe our team is well placed to deliver on their requirements. This continued partnership is a true testament to our highly skilled and trusted teams and the quality of our service.”
Oilex 0.085p £2.9m (OEX.L)
The date for the satisfaction of the conditions precedent in regard to the acquisition of 27 Petroleum Retention Licenses in the Cooper-Eromanga Basins from Senex Energy Limited and certain of its related entities has been extended by a further six months to 27 September 2020, for nominal consideration
Salt Lake Potash 19p £55.6m (SO4.L)
SO4 has completed the civil earthworks at the process plant and non-process infrastructure site at the Lake Way Project. Early process plant construction work has now commenced and the Project remains on schedule for December 2020 commissioning. SO4 has implemented plans to minimise potential impact from COVID-19 on its site operations, and has seen no material impact to its suppliers.
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.
The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).
Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.
Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.
Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.
MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.
If you would like to unsubscribe, please email firstname.lastname@example.org with “unsubscribe me”.