Small Cap Feast

Small Cap Feast – 07 March 2019

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DWF, a global legal business,  expects to raise primary gross proceeds of approximately £75m. Due March

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 20 March


Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.

Breakfast Buffet

Petro Matad (MATD.L) 5.8p £38.4m

Ops update.

2019 four well drilling campaign: Heron, Gazelle, Red Deer (all Block XX) and a further exploration well in Block V, or appraisal of a Block XX discovery

Heron 1 well planned as first well of 2019 campaign, with spudding targeted for Q2 2019

More than 50% resource uplift at Heron Prospect to 25 MMbo from 16 MMbo following mapping of reprocessed 2D seismic

Gazelle high-graded to second Block XX well as new mapping shows it to be directly up dip of a Petro China discovery well on the same migration path

Red Deer Prospect location remains unchanged, targeting 48 MMbo of mean prospective recoverable resource

Heron, Gazelle and Red Deer environmental permits for drilling approved and CSR teams mobilised to well sites

Regulatory approval received for two-rig strategy for limited additional cost to allow for simultaneous drilling of prospects – negotiations with rig contractors nearing finalisation

Applications for Block IV and V PSCs being prepared for two-year extensions, with submission expected shortly

Ongoing analysis of Snow Leopard 1 well, Block V, has significantly enhanced the prospectivity of the Block and in particular the Raptor trend.

Strategic Minerals (SML.L) 1.7p £24m

Copper production is scheduled to recommence at the Leigh Creek Copper Mine’s  Mountain of Light  processing facility in April 2019, starting with the refurbishment and the trial reactivation of the existing processing plant and heap leach pads.

Engaged experienced operator PPM Global, who has previously worked at the MoL processing plant, to refurbish the existing MoL processing plant and to manage the trial restart of operations. PPM Global has mobilised and is currently on site.

Assay results from 250-hole shallow air core programme confirms the presence of residual copper in the existing heap leach pads

Reactivation of the existing heap leach pads fully covered under existing permits.

Feasibility study, for the commencement of full scale production from the Paltridge North and Rosmann East deposits, is well advanced with expected completion of resource estimation and economic evaluation scheduled for late second / early third quarter of 2019.


Block Energy (BLOE.L) 3.8p £9.9m

The exploration and production company focused on the Republic of Georgia, reported an increase in production rate at its 100%-held Norio field, where the Company is implementing a multi-well workover programme.

The oil production rate at Norio 44 has increased significantly over the past five days, rising daily to reach 21 bopd on the most recent day for which figures were available (6 March 2019). The Company’s initial forecast for the well was 15 bopd.

‘In parallel with the Norio recompletions the Company continues to progress its sidetracking operations at West Rustavi well 16a and expects to start drilling the 600m horizontal section within the next few days. Achieving the well’s base case initial production forecast of 325 bopd would be sufficient to move the Company well above its corporate production breakeven rate’.


Angle (AGL.L) 59.5p £85.4m

The “liquid biopsy company, announced that enrolment for its Parsortix FDA clinical study for metastatic breast cancer is now complete.

We are grateful to the four leading US cancer centres, the University of Texas MD Anderson Cancer Center, the University of Southern California Norris Cancer Center, the University of Rochester Wilmot Cancer Center, and the Northwestern University Robert H Lurie Cancer Center for their efforts in completing enrolment of all of the required 400 evaluable subjects.

Downstream analyses of the samples will now be completed by the centres and the evaluation of the results from the clinical study and the ongoing analytical studies will be completed with the aim of a submission to the FDA mid-year, as planned. The timing of FDA regulatory clearance is dependent on the FDA’s review and response to our submission. As we are following a de-novo process for the first potential FDA clearance1 of a system intended for harvesting cancer cells from patient blood for subsequent analysis, it is not possible to predict with certainty how long this process will take.”

Koovs (KOOV.L) 7.6p £27.05m

“The fashion-forward business focused on the young Indian e-commerce market, announced that its subsidiary Koovs Marketing Consulting Private Limited has signed an agreement with Future Lifestyle Fashions Limited (“FLFL”), part of Future Group, to develop, host and maintain an online platform for FLFL’s Brand Factory retail format.

Under the terms of the Technical Services Contract, Koovs will receive a one-off payment of $1.4m for the development of the Brand Factory online platform and an ongoing maintenance fee for a term of 24 months.  The value of the maintenance fee will be equal to the cost incurred by Koovs in providing the maintenance of the Brand Factory online platform plus a management fee.  Both the one-off payment and the maintenance fee are expected to be profitable for the Company.”


Ilika (IKA.L) 38p £38.3m

The pioneer in solid-state battery technology, announces the development and trial deployment of wireless sensors powered by Stereax®batteries for monitoring rail infrastructure. The project consortium consists of Ilika, Smart Component Technologies Ltd (SCT) and Network Rail.

In this 18-month project, self-powered sensors for monitoring key parameters affecting the performance of the railway infrastructure (load, temperature, shock) will be developed, deployed, tested and evaluated. The sensors will combine Ilika’s Stereax® solid-state battery technology and SCT’s novel ultra-low power sensor platform and will be wirelessly connected to Network Rail’s existing condition monitoring platform. The self-powered sensors will be maintenance free and will generate data 24/7, 365 days per year.


Quiz (QUIZ.L) 15.7p £19.6m

The omni-channel fashion brand, announces an update on trading during the period between 1 Jan 2019 to 28 Feb 2019 and its expectations for the financial year ended 31 March 2019.

The uncertain consumer spending backdrop has remained challenging for QUIZ. As a result, the Group has recorded a significant shortfall in sales compared to the Board’s prior expectations. Furthermore, there has been a requirement to apply higher than anticipated discounts to clear excess stock.

QUIZ has continued to increase sales online during the Period with Group online revenue increasing by 16.2%. However, this growth has been offset by an 11.1% decrease in revenue from the Group’s UK standalone stores and concessions. Consequently, Group revenue for QUIZ decreased by 1.7% in the Period against the comparable period last year.

New FYMar19 guidance, sales £129m, EBITDA c. 4.5m


Prophotonix (PPIX.L) 3.85p £3.5m

The United States Patent and Trademark Office has issued two US Patents for its COBRA Cure FX UV LED Curing Systems designed for use in UV curing applications in industrial printing, 3D printing and adhesives curing.

The first patent was awarded for the COBRA Cure FX series’ innovative replaceable window that facilitates the quick removal and cleaning or outright replacement of the window without the need for special tools (US10180248). In some applications, a build-up of material can occur on the exit window of the lamps that can reduce light output. In order to limit machine downtime to clean or replace the lamps, this invention allows for fast replacement of the window, minimizing any downtime for users.

A second patent was awarded for an innovative sensing network for early detection of issues that may occur during the normal operation of the lamp that could impact system performance (US10180249).


Serinus Energy (SENX.L) 11p £16.6m

The final assembly and testing of the Low Temperature Separation Unit (“LTS”) has been completed.  The LTS was loaded and has left today from the Confind fabrication yard in Campina, Romania to the Moftinu plant site.  The Moftinu site is approximately 550 km from the Confind facility.

Once on site the LTS will be reassembled and work will commence to install the unit in preparation for gas production.

The reassembly and installation of the Triethylene Glycol Unit  is proceeding as planned.

Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.


Sound Energy (SOU.L) 23.26p £249.3m

Continued positive discussions with Morocco’s Office National de l’Electricité et de l’Eau Potable (“ONEE”) and the Moroccan Minister of Energy in relation to a gas sales agreement (“GSA”), pursuant to which The Minister of Energy has confirmed his intention that the GSA covers all of the gas to be produced from the recently awarded Tendrara Production Concession, onshore Morocco. The GSA is a critical next step that Sound Energy and its partners require ahead of taking a Final Investment Decision on the development. 


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Derren Nathan
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