Small Cap Feast
Small Cap Feast – 08 August 2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 887
Total number of AIM Companies trading: 804*
* As at 26 July 2019
Set Menu NEX Growth:
Total number of NEX Growth Market Companies (Incl Susp): 86*
Total number of NEX Growth Market Companies trading: 84*
* As at 26 July 2019
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 166*
Total number of Standard List Companies trading: 144*
* As at 26 July 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
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?
Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August.
Rumours and Speculation
According to Bloomberg Helios Towers, one of South Africa’s largest mobile phone tower operators, is reviving plans for a London IPO.
Vast Resources (VAST.L) 0.12p £10.90m
Vast Resources, the mining company, announced that it has raised in aggregate £655,000 (£625,000 after costs) through a placing of 595,454,545 ordinary shares of 0.1p in the Company at a price of 0.11p per Ordinary Share. The Subscription was undertaken by a new institutional investor. The Company has agreed to issue to The Investor 17,000,000 warrants to subscribe for Ordinary Shares in the Company at an exercise price of 0.13p per share and 17,000,000 warrants at an exercise price of 0.15p per share. All warrants will expire on 8 August 2022.
The Subscription Shares were issued under existing authorities available to the Board relating to the Company’s Zimbabwe Projects. The cash raised from the Subscription, which includes payment for expenditure already incurred, will be used for immediate strategic operational requirements in Zimbabwe.
Goldplat (GDP.L) 3.40p £6.28m
Goldplat plc, the gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, announced an operational update for the three months ended 30 June 2019.
The cost saving initiatives in the Group is expected to reduce costs by circa GBP500,000 per annum.
The Company had circa GBP2.1 million cash on hand at end of the Quarter and still anticipated reporting a loss from operating activities for the full year, at approximately the level of the loss incurred for the half-year ended 31 December 2018, having broken even in the second half.
During the Quarter Goldplat maintained good production levels and achieved the planned margins in South Africa. Goldplat production in Ghana was supported by local clients during the Quarter, however was below expectations due to difficulties in sourcing sufficient material to process. Operations at Goldplat in Kilimapesa, Kenya, were put on care and maintenance in May 2019.
Armadale Capital (ACP.L) 1.38p £4.69m
Armadale Capital, the investment group focused on natural resource projects in Africa, announced exceptionally high purity results from ongoing metallurgical test-work on diamond drill core from its wholly-owned Mahenge Liandu Graphite Project in Tanzania.
The results, which include 96.8% for jumbo size graphite flakes, 97.1% for large and 97.1% for medium flake sizes, comfortably exceed the 95% average used in the scoping study, while they are in line with the exceptional graphite quality sourced from the Mahenge region in Tanzania.
Nick Johansen, Director of Armadale, said: “The ability to deliver a premium product to fast-growing end markets such as lithium-ion batteries clearly enhances the Project’s overall economics at a time when we are steadily progressing from explorer to emerging producer.”
DeepMatter Group (DMTR.L) 2.80p £22.83m
DeepMatter, the company focusing on digitizing chemistry announced that it has received its first revenue-generating order for its DigitalGlassware platform.
The first purchase order is from o2h discovery (o2h), an Anglo-Indian medicinal chemistry service provider that has end-to-end capability to take drug discovery programmes to the IND filing stage. o2h participated in the Company’s Pioneer Programme during 2018, trialling the DigitalGlassware platform in both its research and process chemistry operations.
Having participated in the Pioneer Programme, and being sufficiently impressed by the DigitalGlassware technology, o2h has elected to pay for the provision of a greater number of user licences. This roll out will enable o2h to use DigitalGlassware as part its drug-discovery collaboration with a strategic customer.
Share (SHRE.L) 31.50p £45.25m
Share, a leading independent retail stockbroker, announced its interim results for the six months to 30 June 2019.
Revenues were up 9% to £11.1m (H1 2018: £10.2m), reflecting the benefits of prior acquisitions of customer accounts. The group returned to profitability, with Earnings before interest, tax, depreciation and amortisation (‘EBITDA’) of £0.8m (H1 2018: loss of £0.2m). There was operating profit of £0.1m, including £0.2m of one-off costs (H1 2018: loss of £0.5m) Statutory earnings per share increased to 0.1p (H1 2018: loss of 0.2p).Th period saw a significant improvement in operating cash flows, with an inflow of £1.9m (H1 2018: £0.4m outflow)
Assets under administration were at record level, up 5% to £5.3bn (H1 2018: £5.0bn).
Global Invacom Group (GINV.L) 5.50p £14.94m
Global Invacom, (the global provider of satellite communications equipment and electronics, announced its financial results for the six months ended 30 June 2019 and three months ended 30 June 2019 .
The Group announced a Q2 FY2019 net profit of US$845k, its tenth consecutive quarter of profitability. Revenue for 1H FY2019 increased significantly by 29.9% to US$71.9m (1H FY2018: US$55.4m). Gross Profit for 1H FY2019 increased by 28.1% to US$15.1m (1H FY2018: US$11.8m) Net profit for 1H FY2019 also increased by 198.1% to US$1.6m (1H FY2018: US$0.5m).
At the end of the period there were cash and cash equivalents of US$7.9m (31 December 2018: US$8.4m).
The acquisition of Apexsat (June 2019) bolsters capability in Low Earth Orbit (“LEO”) and Medium Earth Orbit (“MEO”) products.
Savannah Resources (SAV.L) 4.05p £40.33m
Savannah Resources, a multi-commodity development company focused on building cash generative and profitable mining operations, announced that Oman’s Public Authority for Mining is to Grant two Mining Licences for the High-Grade Copper Mine Developments.
The public Authority for Mining has advised Savannah that it intends to grant mining licences over the Mahab 4 and Maqail South high-grade copper deposits near the Port of Sohar in the Sultanate of Oman to Savannah’s subsidiary.
The advice follows the approval of a series of government authorities and a rigorous review of the applications by PAM. The mining licences are to be granted once new licensing fees have been set under the new Mining Law and the relevant fees paid.
Panthera Resources (PAT.L) 9.00p £5.92m
Panthera Resources, the gold exploration and development company with assets in India and West Africa, announced that it has negotiated a restructuring of the previous agreed financing package with RIM, which will result in an immediate capital injection of £500,000 at 10 pence per share. The Company has agreed to issue 5,000,000 New Ordinary Shares to RIM and its co-investors.
The previously agreed RIM financing will be restructured to split the Tranche 3 capital injection into two separate investment tranches.
Tranche 3A will be invested immediately for gross proceeds of £500,000 at 10 pence per share. The payment timing for Tranche 3B will be made (as previously agreed) upon receipt of approvals to recommence exploration at the Bhukia JV project in India. Tranche 3B is now to be priced at a 15% discount to the 20 day VWAP at that time.
Xeros Tech (XSG.L) 7.94p £20.41m
Xeros Technology Group plc , the developer and provider of water saving and effluent reduction technologies with multiple commercial and domestic applications, has signed two agreements to sell the majority of its Hydrofinity US commercial laundry customer portfolio of leased machines to Eastern Laundry Systems and Wash IQ, previously known as Viking Services.
Hydrofinity will receive an up-front payment of $109,000 in cash and on-going license fees for the provision of XOrbsTM to ELS and WIQ.
Diaceutics (DXRX.L) 85.50p £61.23m
Diaceutics, a provider of data analytics and implementation services to the global pharmaceutical industry, announced that it has appointed Derek Hosty as Head of Global Data with immediate effect. Hosty will lead Diaceutics’ data team as it helps more patients across the world access precision medicine drugs by driving better diagnostic testing through unique data insights.
He brings almost 20 years of experience in software, analytics and product development to the role.
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 email@example.com with “unsubscribe me”.