Small Cap Feast

Small Cap Feast – 10 February 2020

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

Total number of AIM Companies trading: *
* As at

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: *
* As at

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

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.

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

Crossword Cybersecurity* (CCS.L) 380p £17.8m

FY Dec 19 trading update.   Expects to report results for the Financial Year ended 31 December 2019,  in line with market expectations, in April 2020.

Revenue during the year is expected to increase by 22% to £1.3m. Within that, revenues from product and consulting revenue are anticipated to expand by 51%, reflecting the Company’s shift from software development services to its core of product and consulting revenue.  Cash balances as at 31 December 2019 were £1.5m.

As well as continuing to grow the internal pipeline for Rizikon during 2019, Crossword began collaborations with Leonardo MW Ltd, a global high-tech Aerospace Defence and Security company, and NCC Group plc, the  global cyber security expert. Also Launched Nixer Cyber ML. The Consulting division launched its vCISO (virtual Chief Information Security Officer) solution and signed its largest contract to date, spanning three years.

 

Tower Resources (TRP.L) 0.575p £6.35m

Operational update on its work on the Thali licence in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon SA.

The Geoquip Marine survey vessel MV Investigator completed its survey at the NJOM-3 well site on the Thali block offshore Cameroon on Friday 7 February 2020, drilling three boreholes to a depth of 80m with alternating sampling and PCPT (piezocone penetration tests). Although the analysis of the data will take some weeks, the Company’s initial view is that the data from the three boreholes are consistent and in line with pre-survey expectations.

 

Tekcapital (TEK.L) 4.9p £3.9m

The UK intellectual property investment group focused on creating marketplace value from investing in university technology, announces that its portfolio company Belluscura plc has recently filed a patent application on an oxygen enrichment device and system for treating acute respiratory distress (ARDS), including ARDS caused by Coronavirus.

Belluscura plc, in conjunction with its exclusive research partner Separation Design Group, announced the filing of a patent application covering novel integrated portable extracorporeal oxygenation and carbon dioxide removal systems for treating patients suffering from ARDS.

 

Audioboom (BOOM.L) 247.5p £34.3m

The Board of Audioboom notes the recent media speculation and announces that the Company has retained Raine Advisors Limited as its financial adviser in relation to examining strategic options for the Company, in order to deliver maximum value for its shareholders. Raine will provide advice and assistance to the Company in relation to a range of corporate options including, inter alia, strategic partnerships, financial investment, business combinations and potentially the sale of the Company.  The Company confirms it is not in receipt of any approach at this time.  There can be no certainty that this will result in an offer for the issued and to be issued share capital of the Company or any form of transaction or other development for Audioboom, or the terms and timing of such matters.

 

Clearstar (CLSU.L) 50p £18.2m

The provider of Human Capital Integrity℠ technology-based services specialising in background and medical screening, announces that it has been appointed by a leading facilities management company to provide background screening of service providers entering its healthcare locations. This is ClearStar’s first contract in the facilities management sector and the Company expects it to generate a minimum revenue of $0.4m during the roll-out phase this year. 

Robert Vale, CEO of ClearStar, said: “This is another fantastic customer win for ClearStar, reflecting the continuing upscaling of our client base with the increasing recognition of our brand. It marks a milestone as our first contract in the facilities management industry, which is an area with great growth potential.”

 

Actual Experience (ACT.L) 48p £22.7m

Robin Young, Chief Operating Officer, and Paul Spence, Non-Executive Director, have notified the Board of their intention to resign from the Board of the Company, both with effect from 28 February 2020. Robin will be continuing his advisory roles with fund management organisations prior to taking on a new COO position nearer to his home in the UK Midlands later this year.

Paul, who is domiciled in the USA, joined the Board in February 2016 and is looking to reduce his travel commitments. “We are pleased by the progress being made at our Channel Partners, and their evolution towards Professional Service offerings based on our analytics. Our focus now is on ensuring we have the right structure to support them in the delivery of these services, which have been developed with the goal of shortening sales and deployment cycles, delivering value to customers significantly faster and providing a scalable means of addressing both the enterprise and mid-tier markets.”

 

Thor Mining* (THR.L) 0.29p £3.12m

Thor has completed the disposal of its interest in ASX listed Hawkstone Mining Limited.

The sale process was conducted over a period between November 2019, and early February 2020, and realised, after expenses, just over A$103,000.

The Company further advises that it has been informed that it is likely to receive offers for its royalty entitlement, in respect of the Spring Hill gold project, during the first quarter of calendar 2020.

 

Versarien (VRS.L) 52.5p £80.8m

The advanced materials engineering group, notes the recent reduction in the Company’s share price and confirms that it is not aware of any material basis for the decline.

The Company reaffirms that, in line with the interim statement released on 12 December 2019, it remains focused on its graphene  commercialisation strategy and the projects with its commercial partners, prioritising those that it deems most likely to produce near-term revenue streams.

The Company can also confirm that as at 31 January 2020, its cash at bank was £1.53 million and the available cash from its banking facilities was £0.72 million; a total of £2.25 million available to the Company.

 

Serabi Gold (SRB.L) 83p £49m

The Brazilian focused gold exploration and mining company announced that the much-awaited Public Hearing for its Coringa Project, successfully took place on 6 February 2020.  In addition, the Company is also pleased to report that commissioning of the newly installed ore sorter at the Palito Complex is now well underway

 

MTI Wireless Edge (MWE.L) 40p £35.2m

The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announced that the St Petersburg office of MTI Summit has secured a significant order for delivery in 2020 from a Russian customer. The contract is worth approximately US$1.5 million and is for the supply of radio frequency components.  

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.