Small Cap Feast

Small Cap Feast – 09 October 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 930

Total number of AIM Companies trading: 863*
* As at 05 October 2018

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: 86*
* As at 05 October 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 05 October 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

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. Due early Nov

Smithson Investment Trust—New Fund from Fundsmith LLP  established by Terry Smith. focused on a global basis on small and medium sized companies between £500m and £15bn in market cap . Due 19 Oct.  Seeking £250m raise.

Main Market (Standard)

Eurotorg—the largest grocery retailer in Belarus  -Revenue for the 12 mths to Jun18 was BYN 4.21 bn (USD 2.13 bn); adjusted EBITDA for the same period was BYN 385.0 mn (USD 194.7 mn).  Raising $200m primary plus secondary offer. Due 11 Oct.

ECI Telecom— provider of comprehensive networking and data transport products and solutions. Raising c.$230m and potential sell down. Due late Oct

Trident Resources— Looking to acquire  assets in the advanced exploration, pre-production or production stage which have sufficient information available to enable the Company to undertake a financial assessment of the  asset’s likely economic viability

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.

Gresham House Energy Storage Fund  – will invest in utility-scale  Energy Storage Systems in the UK. Raising up to £200m. Due early Nov.

CEIBA Investments. the largest foreign investor solely dedicated to investing in Cuba, with existing total assets in excess of £160 million.  Raising up to £100m.  Due 10 Oct

Blue Ocean Maritime Income  – aims to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.  Raising up to $250m. Due 23 Oct.

AIM

Summerway Capital investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer TBC, market cap TBC expected 19 October

Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October.

PetroTal (TAL.TO) – The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quotation before the end of 2018.

Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct

Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m.  Due Mid October 2018.  EBITDA Profitable. Offer TBA

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

Breakfast Buffet

Premier Asset Management (PAM.L) 255p £269.7m

Premier Asset Management Group announced a trading update for the Company’s fourth quarter ended 30 Sept 2018.

AUM were £6.9bn as at 30 Sept 2018 (30 Sept 2017: £6.1b)

Total net inflows for the quarter of £120m (3 months to 30 Sept 2017: £205m)

Twenty second successive quarter of positive net inflows

Total net inflows of £734m for the twelve months to 30 Sept 2018 (twelve months to 30 Sept 2017: £747m)

Continued strong long term investment performance net of all fund charges:

Over five years to 30 Sept 2018: 83% of AUM were above median

The Company expects to announce its final audited results for the year ended 30 Sept 2018 on 29 Nov 2018.

OptiBiotix Health (OPTI.L) 86.5p £70.8m

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announced that it has entered into a manufacturing and supply agreement with US Pharma Lab Inc. (“USPL”). This is the first agreement completed through its newly formed subsidiary ProBiotix Health Ltd, as previously announced on 24 Sept 2018.

USPL, established in 1997, is a family owned and operated business with facilities in the US, India and China, and employing more than 600 people globally. With a focus on handling challenging ingredients such as probiotics, USPL is known as the partner of choice where science meets quality.

This agreement gives a strategic access to the world’s largest probiotic market, with an estimated retail value of $7.1bn pa. The US is one of the largest and fastest growing probiotic markets in the world, with supplements alone accounting for $2.06bn sales, with a projected 55% growth to $3.3bn by 2021.

 

Edenville Energy (EDL.L) 0.28p £4.1m

Edenville Energy, the company developing a coal project in southwest Tanzania, announced that it has signed a significant contract for the supply of a specialised coal product. The customer, an industrial group operating in East Africa, will use the coal as part of its manufacturing process. The terms for supply are set out below:

The contract duration is for an initial period of two years;

Coal will be supplied with a gross calorific value averaging 5,500 kCal/kg;

Pricing has been agreed and is based on local commercial rates;

The customer will be responsible for transport of the coal from the mine gate; and

The contract is for the supply of 3,500 tonnes of coal per month with an option for the customer to increase this up to 6,000 tonnes per month.

 

Castleton Technology (CTP.L) 101p £81.74m

Castleton Technology, the software and managed services provider to the public and not-for-profit sectors, provided the following update on trading for the six-month period to 30 Sept 2018.

The Company announced that revenue and EBITDA for HY2018 have grown organically in excess of 10% and support a full year performance in line with market expectations.

Operating cash conversion in the period was strong, facilitating a continued reduction in net debt from £6.3m as at 31 March 2018 to £5.3m as at 30 Sept 2018.

During the period, the Company obtained shareholder approval for a capital reduction process which, subject to Court approval, will give the Company the ability to make distributions to shareholders.

The Group expects to announce its results for HY2018 on 6 Nov 2018.

 

Bacanora Lithium (BCN.L) 33.5p £41.35m

Bacanora Lithium, the lithium company,  announced NI 43-101 compliant Measured + Indicated resources of 124,974 tonnes of contained lithium (‘Li’) at its 50% owned Zinnwald lithium project in southern Saxony, Germany, representing a 30% increase from the previous PERC resource estimate of 96,200 tonnes. The total resource estimate for the Project (Measure + Indicated + Inferred) is 142,240 tonnes of contained Li. The mineral resource estimate forms part of the Feasibility Study (‘FS’) for a high value lithium product operation at Zinnwald that will supply the fast-growing European battery and automotive sectors. The FS remains on course to be completed in Q2 2019.

 

Ceres Power (CWR.L) 199p £263.21m

Ceres Power Holdings  announced its final results for the year ended 30 June 2018.

Revenue and other operating income up 71% to £7m;

Bosch and Weichai Power strategic partnerships with significant equity investments, development and licensing agreements;

Major increase in order book from £3m to £30m at the date of these accounts;

Strong cash position after new equity of £49.3m from financial investors and Bosch and Weichai post financial year end;

Progress with existing partners – field trials to start with confidential partner later this year and new programme signed with Nissan backed by £7m of funding through the UK’s Advanced Propulsion Centre;

Increase in net electrical efficiency to 60% achieved in customer systems and first-of-a-kind 5kW stack design completed;

£7m investment in new manufacturing facility announced, creating 60 jobs in Redhill, Surrey (UK).

 

Avesoro Resources (ASO.L) 183.5 £144.8m

Avesoro Resources Inc., the West African gold producer,  announced its preliminary production results for the quarter ended Sept 30, 2018 from its New Liberty Gold Mine in Liberia, and Youga Gold Mine, in Burkina Faso.

Total gold production of 47,177 ounces in the Quarter, bringing year to date gold production to 175,496 ounces;

The Company maintains full year 2018 production guidance of 220,000 -240,000 ounces;

Ore mining rates have increased at both New Liberty and Youga compared with the previous quarter;

Total material moved consistent with the previous quarter notwithstanding Q3 being the peak of the wet season in both Burkina Faso and Liberia;

New Liberty gold production of 27,456 ounces in the Quarter; and

Youga gold production of 19,721 ounces in the Quarter.

 

Warehouse REIT (WHR.L) 96p £159.36m

Warehouse REIT, the specialist warehouse investor, announced that it has secured planning permission for change of use on 16 acres of its land at the Queenslie Park industrial estate in Glasgow.

The proposed development will deliver up to 250,000 sq ft of employment-led space, comprising a combination of distribution/logistics, industrial, commercial, storage, retail and hospitality space. The variety of uses will appeal to a wide occupier base, driving capital investment and a significant number of new jobs to the estate, which benefits from its proximity to the adjacent M8 motorway which links the cities of Glasgow and Edinburgh.

The 16 acres form part of Warehouse REIT’s wider 56 acre holding at Queenslie Park, including approximately 350,000 sq ft of existing floorspace, a mixture of modern and more traditional units of between 2,000 sq ft and 65,000 sq ft. During the last 12 months, since IPO, vacancy levels have almost halved to just 6% (previously 11%) and average rents grown by 4%.

 

Anglo African Oil & Gas (AAZ.L) 68.5p £80.02m

Anglo African Oil & Gas, an independent oil and gas developer, announced that spudding of well TLP-103C at the Tilapia field in the Republic of the Congo.

TLP-103C will be drilled to a total depth of 2,700 metres and is expected to take 64 days to complete, including testing. The Well targets three horizons: the current producing horizon of R1/R2; an appraisal of the Mengo horizon and a deeper exploration prospect in the Djeno horizon from which the adjacent Minsala field produces at a rate of 5,000 bopd.  If the Well performs in accordance with the Company’s geological model, TLP-103C can be extended to target the Vandji horizon.

The Well is being drilled from a newly constructed pad at the Tilapia site and will deviate to these offshore targets.  In line with the recommendations of internal and external engineering experts, the Company has put in place engineering enhancements to mitigate risks caused by shallow unstable formations.

The Company expects the Well to intersect its first reservoir target, R1/R2, in approximately 25 days.

 

Minds+Machines (MMX.L) 7.05p £55.7m

Minds + Machines Group Limited, the top-level domain registry company, announced that it has entered into a Strategic Marketing Partnership with imToken, the world’s leading Ethereum wallet provider that now supports multiple cryptocurrencies including Bitcoin and EOS. Under the Partnership agreement, imToken will be the first wallet provider to fully integrate the offering of .luxe names to new and existing customers as part of its product offering.

In the last two years, imToken has rapidly grown into the world’s leading wallet provider with 6 million active monthly users in 150 countries. During the period 1 Jan 2017 to 30 June 2018 it processed $45bn in pass-through transactions. In July 2018, imToken launched version 2.0 of its software allowing users to manage not just their Ethereum wallet but also those that support Bitcoin and EOS under a single imToken identity. This means imToken users can hold and exchange multiple cryptocurrencies and tokens through a single imToken 42 character string address. Under the agreement with .luxe, a user’s 42 character wallet address can now be securely associated to a human readable .luxe name of the users choice.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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