Small Cap Feast

Small Cap Feast – 06 November 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 920

Total number of AIM Companies trading: 850*
* As at 26 November 2018

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 87*
* As at 26 November 2018

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): *

Total number of Standard List Companies trading: *
* As at 26 November 2018

Dish of the Day:

No Joiners Today

Off the Menu:

Crawshaw Group has left AIM following an asset sale by the joint administrators.

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

SEEIT will be the first UK-listed investment fund of its kind to invest exclusively in the energy efficiency sector. Looking to raise £150m. Due 11 Dec

AJ Bell—one of the largest investment platforms in the UK—Expects to publish prospectus end Nov. FYSep18—revenues up 19% to £89.7 million, profit before tax up 31% to £28.4 million.  Secondary sell down, Due December.

Sirius Aircraft Leasing Fund targeting a raise of US$250m  – objective is to provide investors with an attractive level of regular income and capital returns through investing primarily in used, single-aisle aircraft. POSTPONED

MOD Resources—(ASX:MOD) A$78.7m mkt cap.  Copper exploration and development company focused on the central and western Kalahari Copper Belt in Botswana.  Introduction only. Due c.26 Nov.

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due end Nov.


Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC.  Due 18 Dec. Mkt Cap A$64m.

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.


Breakfast Buffet

Dialight (DIA.L) 300p £107m

Trading update from the specialist in sustainable LED lighting for industrial applications. “We have made considerable progress since the termination of our contract manufacturing partner arrangements. At the time of the termination we had 50% of final assembly of lighting products in house. This has increased to over 90% and is anticipated to be 100% in the coming weeks.   The delays in raw material supplies adversely impacted November results. Performance in December is critical to delivering our year end results and will require a further planned ramp up in production coupled with continuity of raw material supply.”

Assessing impact of court judgement over pension scheme which could crystallise additional liabilities.

A difficult period but building a good platform for the future.

Gresham Technologies (GHT.L) 89.5p £103m

The “software and services company that specialises in providing real-time data integrity and control solutions, provides the following trading update.

The Group’s legacy software businesses are performing as planned, and the Group’s Australian sub-contracting business has delivered a stronger performance in the second half as expected. The new Cash Management Solutions business is performing broadly as planned, with an additional new Clareti Multi Bank client win in recent weeks, bringing the total to three since the Company’s acquisition of B2 Group in July 2018.” “As a result of certain other high margin significant software licence deals now being delayed into 2019 and on-going investments in product innovation and business development, the Company expects Adjusted EBITDA for 2018 to be materially below current market expectations.” Remains fully confident in the Group’s prospects and its Clareti-led strategy to deliver sustainable and profitable growth over the long-term.


Catenae Innovation (CTEA.L) 0.11p £2.7m

The  provider of digital media and technology announces it has signed its first contract for a solution utilising its blockchain technology. This agreement is with STM Security UK Ltd (“STM”) who have been customers of the Company since 2013. STM is a UK based security company and a supplier of manned security solutions and customer service staff, providing professional, trained and licensed personnel throughout the UK. Under the terms of the contract Catenae will supply STM with OnGuard Plus, a business management solution which was specifically developed for the security industry. It utilises mobile and cloud technologies to support the administrative, operational and financial functions of the manned guarding sector.

Catenae has recently completed final testing of Sequestrum, Catenae’s Distributed Ledger technology digital repository running on the Hyper Ledger Blockchain platform.  Also announced launch of  management and inspection platform – OnSite.


Ceres Power (CWR.L) 171p £228m

Completion of two key commercial milestones with Robert Bosch (“Bosch”) and Weichai Power this week and as a result, provides a trading update ahead of results for the six months ended 31 Dec 2018.

Bosch and Weichai milestones result in higher revenues: revenue and other operating income for the six months to 31 December 2018 expected to be at least £7 million, an increase of 125% from the same period last year

Full year revenue and other operating income expected to more than double to approximately £15m from £7m in FY2017

Strong cash position of at least £77 million expected at the half year – following Weichai and Bosch investments in 2018 and the successful placing in July 2018

The company is also progressing with other OEM partners on multi-year programmes and will provide further updates in due course.


Eve Sleep (EVE.L) 12.25p £19.7m

The sleep brand focussed on the UK, Ireland and France, announced the results of its business review and a trading update, as well as stating its intention to raise approximately £15 million of new equity. Subject to a rule 9 Waiver by the Panel existing shareholders, being certain investment funds acting through their agent and discretionary investment manager Woodford Investment Management   have indicated that they intend to subscribe for up to £8.0 million  at 10p. C. £2m pledged from other investors including £1m from the Chairman.

The Company has also received other indications of potential interest at the Proposed Issue Price from existing and new investors, and remains in discussion with a number of other potential investors whose internal investment processes are longer than a typical public markets fundraising timetable.


boohoo Group (BOO.L) 177p £2.1bn

 “boohoo notes the media commentary around the advertising of its promotional offers. The Company has been in correspondence with the Committee of Advertising Practice (CAP) and the Advertising Standards Authority (ASA) on this particular matter. CAP has requested that the Company take its guidance on board. The Company has confirmed that it will do so and will continue to review its promotional offers so that they comply with applicable regulations. CAP has confirmed that this matter is closed and there will be no further action.”


Boku (BOKU.L) 75.5p £219m

The world’s leading independent direct carrier billing company, is pleased to announce that it has signed an agreement to acquire 100% of the share capital of Danal, Inc.   Initial consideration of 26.7 million Boku shares,  US$3 million of Boku warrants exercisable at 141p and US$1 million of cash, payable on completion.  In addition, Boku has agreed to pay  deferred consideration of up to US$64 million, satisfied in Common Shares and warrants, dependent on Danal’s future performance. Danal, based in San Jose, California, USA, provides mobile identity and authentication solutions driven by real-time connections to Mobile Network Operators (“MNO”s).   For the year ending 31 December 2017, Danal  generated revenue of US$5.1 million and a loss before interest, taxation, depreciation and amortisation of US$5.2 million.


Vela Technologies (VELA.L) 0.25p £1.79m

The “investing company focused on early stage and pre-IPO disruptive technology investments, announces that it has entered into a subscription agreement to invest $100,000 into StreamTV Networks Inc. (“StreamTV”), an existing investee company, as part of a proposed private funding round of $30 million currently being undertaken by StreamTV (the “Investment”).

StreamTV is the developer and manufacturer of one of the world’s leading glasses-free 3D display technologies. Its 3D display technology is compatible with all screen sizes and all content, both pre-existing and newly created.  StreamTV offers its technology as a component to existing brands for inclusion in their television, monitor, tablet and phone devices. StreamTV will use the new funding for general corporate purposes, including bringing StreamTV’s technology to mass market.”


Bigblu Broadband (BBB.L) 101.5p £55m

The “provider of alternative superfast broadband services, has been selected as a preferred partner by Eurobroadband Infrastructure (“EBI”), a subsidiary of Eutelsat (NYSE/Euronext: ETL), which is launching a market leading superfast satellite broadband service to consumers and businesses across Europe at download speeds of up to 50 Mbps.

Under this commercial arrangement EBI will provide satellite network capacity, as well as assist with subscriber premises equipment, installation and marketing to support the ‘Konnect’ brand.  BBB will promote and sell satellite broadband services while managing all activities related to subscriber management including installation, billing and support.”


Qannas Investments (QIL.L) 0.62p £29.21m

The closed-ended investment company listed on the AIM market, is pleased to announce that it has participated in “Project Three”, being a consortium debt investment with an annual interest rate of 9.75% in an independent UAE based Investment Firm, with operations in education, energy, construction, insurance, and other businesses. Qannas provided AED 34 million (approx. $9.3 million) of an overall loan of AED 250 million (approx. US$68.1 million). The investment is secured against units in the Goldilocks Fund (in which Qannas is already invested) with a current market value significantly greater than the value of the loan.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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