Small Cap Feast

Small Cap Feast – 06 February 2020

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What’s Cooking in the IPO Kitchen?


Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Ninety One –proposed demerger and public listing of  Investec’s  global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march.

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

NEX Exchange 

Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market.  The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.


Breakfast Buffet

ImmuPharma (IMM.L) 14.5p £24.2m

Update on activities with Avion Pharmaceuticals LLC  following the successful licence and development agreement signed with Avion in November 2019 for the exclusive rights to Lupuzor™ in North America. Key activities completed since November 2019

First joint steering committee (“JSC”) completed in December 2019 to identify and agree the optimised Phase III study design for Lupuzor™ including a focus on those patients presenting with the biomarker anti-dsDNA autoantibody positive

Confirmation that the JSC wish to progress Lupuzor™  into its second international Phase III clinical trial as soon as possible this year

Avion and ImmuPharma to meet with the FDA in Q1 2020 to discuss guidance on a new optimised international Phase III trial protocol

Positive discussions with a number of potential commercial partners of Lupuzor™ outside of the US


Dillistone (DSG.L) 31.5p £6.2m

The supplier of software for the international recruitment industry through Ikiru People, is issued a trading update for the 12 months ended 31 December 2019.

The Board currently expects pre-tax losses before acquisition related items and one off adjustments to be broadly in line with market expectations of a loss of £0.30m (2018: profit £0.02m). 

The Company is confident that it will deliver a pre-tax profit prior to exceptional items in both H1 and H2 of 2020.  However, the strategic decisions taken mean that this will be delivered on a lower revenue base than previously anticipated, with faster growth than expected from 2021 onwards.


Warpaint (W7L.L) 83p £63.7m

New collaboration with a leading UK supermarket group to sell a core range of over 100 of the Group’s W7 branded products, in over 50 stores across the UK.  W7 products will be displayed in bespoke free-standing display units located in the store’s cosmetics aisles.

On FYDec19 trading  the Company expects to report revenue of £49.3m and adjusted profit before tax (excluding amortisation in connection with acquisitions, share incentive scheme costs and exceptional items, which the board expects to total approximately £2.8m) of £5.2m for the year ended 31 December 2019, in line with the guidance provided in the Company’s trading update on 20 December 2019.


Kropz (KRPZ.L) 7.5p £21.3m

The emerging African phosphate explorer and developer, advises that, further to the announcement on 18 December 2019, the appeal hearing against Elandsfontein’s valid integrated water use licence (“WUL”) resumed today following a request by the Tribunal for a continuation.

The Company would like to advise the market that, in order to allow the Tribunal the appropriate opportunity to fully review the matter, it will not be providing further comment on the official proceedings until the Tribunal has announced its decision. Three days have been scheduled for the hearing. The timing of the decision is currently unknown.

Pending the Tribunal’s decision, there is no legal impediment to the continuation of the water use activities authorised in the integrated WUL.


Samuel Heath & Sons (HSM.L) 280p £7.1m

Samuel Heath and Sons Plc announces that its Managing Director, David Pick, will be retiring on 31 December 2020. The Board, after careful consideration, has appointed Sales Director, Martyn Whieldon, to the position of Deputy Managing Director with immediate effect for the transitional period, following which he will become Managing Director on Mr Pick’s retirement.  A further announcement will be made in due course.

The Company uses its long-established skills and investments in manufacturing metals to produce high-quality products for the bathroom and door hardware markets.


Image Scan Holdings (IGE.L) 2.3p £3.1m

The  specialist in the field of real-time X-ray imaging for the security and industrial inspection markets, provides an update ahead of its Annual General Meeting.

Key Points:

  • Trading in the year to date has been robust
  • Order intake in line with management expectations
  • First X-ray images taken with prototype of new Axis X-ray system
  • UK distribution agreement signed with Italian X-ray company Gilardoni
  • New initiative to develop sales in North America


IGas (IGAS.L) 40.5p £49.5m

Reserves and Trading Update for FY Dec 19. 2P up from 14.56 to 16.05 MMboe .

 Significant 2P reserves replacement ~277% (1P ~192%)

  • 2P NPV10 of $183m

Net production averaged 2,325 boepd for the year, within guidance, while operating costs for the year were c. $30/boe (at an average 2019 exchange rate of £1:$1.28).  IGAS anticipates net production of between 2,250 – 2,450 boepd and operating costs of c.$30/boe (assuming an exchange rate of £1:$1.30) in 2020.

Waterflood Projects remain on track both in terms of delivery and budget, and are expected to be online in H1

The Planning Inspector has now submitted his recommendation report on the Ellesmere Port Appeal to the Secretary of State. A decision is expected on or before 8 April 2020.  Free cash flow £15.5m.   $40m Reserve Base Loan agreed in October 2019


Touchstone Exploration (TXP.L) 40.75p £65.5m

Flowback testing of the first stage of the Cascadura-1ST1 well has been completed, confirming that the well is a significant liquids rich natural gas discovery.

Stage 1 testing the lower most 162 feet of a total of 777 feet of identified pay in the Herrera formation.

  • Average flowback rate during the final 14-hour test period was 5,180 barrels of oil equivalent per day (“boe/d”), including 26.9 million cubic feet per day (“MMcf/d”) of natural gas and 694 barrels per day (“bbls/d”) of natural gas liquids.
  • Peak flowback rate of 5,736 boe/d, including 30.2 MMcf/d of natural gas and 710 bbls/d of natural gas liquids.

“The well is expected to be shut-in for a two-week pressure build-up test, following which we anticipate completing and testing an additional 450 feet of identified pay.”


Zegona (ZEG.L) 110p £243m

Zegona announced the payment of an interim dividend of 2.0 pence per share, in line with its dividend policy.  In total 4.5 pence per share has been paid to shareholders in the last 12 months, equating to a dividend yield of 4.1%. Zegona has been consistent in its commitment to paying dividends, with more than £35m being paid to shareholders since 2016. Zegona’s policy is to pass 100% of all Euskaltel dividends straight through to its shareholders. Euskaltel S.A. has a strong history of paying dividends, with €55.4m being paid to shareholders in 2019, a 12% increase on the €49.7m paid in 2018. On 5th February 2020, Euskaltel paid an interim dividend to shareholders of €25.0m.


7digital Group (7DIG.L) 0.435p £10.7m

The specialist in B2B end-to-end digital music solutions, announces the appointment of Helen Gilder as an Independent Non-executive Director of the Company with immediate effect. 

Helen brings significant technology and financial experience to the Board, with a strong track record as a finance director of fast-growth digital and software companies as well as extensive non-executive experience in the technology and retail sectors.

Helen joined ZOO Digital Group plc in 2000 and was CFO from 2006 to 2018, guiding the business through both its initial AIM IPO and subsequent reverse takeover and re-admission, as well as several secondary fundraisings.


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Derren Nathan
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