Small Cap Feast

Small Cap Feast – 12 August 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 884

Total number of AIM Companies trading: 800*
* As at 12 August 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 12 August 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 166*

Total number of Standard List Companies trading: 144*
* As at 12 August 2019

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What’s Cooking in the IPO Kitchen?

Rumours and Speculation

 SDIC Power Holdings  China’s state-backed energy firm has received government approval to issue 10% of its share capital as Global Depositary Receipts (GDRs) on the London Stock Exchange

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 13 August.

Breakfast Buffet

Powerhouse Energy Grp (PHE) 0.48p £8.58m

PowerHouse Energy Group plc, the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce it has entered into a collaboration contract  with Peel Environmental and Waste2Tricity Limited  to seek to develop a minimum of 10 further sites in the UK for DMG® facilities,  in addition to the previously  announced project at Protos Energy Park.

Peel have a strategy to develop “Plastic Parks” where waste plastics are recycled and regenerated. Peel’s plans involve bringing together potential counterparties for waste, power and hydrogen with a nett negative CO2 contribution for each site.

The PHE DMG® technology has been evaluated by Peel over the past 30 months and Peel have now committed that the DMG® process will be the key component of each facility and a cornerstone of each Peel “Plastic Park”. DMG® will be the enabling technology to ensure there is no plastic to landfill from these sites by regenerating the waste plastic into power and hydrogen.

Peel will be bringing their land bank, industrial real estate and infrastructure support to the consortium. PHE has an agreement with W2T enshrined in the Collaboration Contract under which W2T will act as project developer for each project and Peel will provide support to W2T with ongoing engagement with funders, with the intention of securing funding for the pipeline of 11 projects from institutional investors. PHE will be contracted to each project under development to provide the engineering, delivery, operation and licensing of the DMG® technology.

Thor Mining PLC* (THR) 0.53p £4.52m

The Board of Thor Mining Plc (AIM, ASX: THR) is pleased to announce further positive assay results from the second metallurgical bulk sample drill hole at the company’s wholly owned Molyhil tungsten molybdenum deposit, in the Northern Territory of Australia.

The second of two PQ (85mm) diamond drill holes drilled down plunge of the Molyhil Yacht Club lode to obtain material for production of tungsten and molybdenum concentrate samples has now been assayed.

Highlights include;

3.5m @ 1.32%WO3 from 9.5m

10m @ 0.32% Cu from 44m

10m @ 1.32%WO3 from 53m

5m @ 1.74%WO3 from 76m including 2m @ 0.81%Mo from 78m and;

7m @ 1.58%WO3 from 88m including 4m @ 0.44%Mo from 88m

The holes were designed specifically for production of concentrate samples and will not contribute to the mineral resource estimate.

Following the results, Thor has commissioned RPMGlobal to assess the Molyhil Mineral Resource Estimate for the inclusion of copper.

Angling Direct PLC (ANG) 75p £47.82m

Angling Direct plc (AIM: ANG.L), the largest specialist fishing tackle and equipment retailer in the UK, is pleased to announce its trading update for the six months ended 31 July 2019 and that it will publish its interim results on 7 October 2019.

Revenue for the period was in line with management’s expectations, increasing by 21 per cent. to £26.52 m in the six months ended 31 July 2019 (2018: £21.94 m). The Company was delighted to achieve strong store and e-commerce sales, in what has been a challenging period for the wider UK retail sector, demonstrating the success of the Company’s strategic focus on customer experience and service, as well the growing recognition of the Angling Direct brand. The Company expects to report gross margins for the period of 32.1 per cent. and, with margins stronger in June and July, management remain confident in the outcome for the year.

Store expansion remains on track, with the Company’s latest store opening in Leeds on 10 August 2019. This brings the total number of Angling Direct stores across the country to 29 and further enhances the Company’s footprint across the UK. The Leeds store offers a 5,500 sq. ft. display area and is located just two miles south of Leeds city centre, in the City South Retail Park, with easy access via the M621 and A61 arterial road.

Tekcapital plc (TEK) 6.88p £4.3m

Tekcapital Plc (AIM: TEK), the UK intellectual property (IP) investment group focused on creating marketplace value from investing in university technology, is very pleased to announce that its portfolio company Salarius ltd. has filed an additional patent application #16/535,703 for MicroSalt® entitled “Improved Low Sodium Salt Composition.”

The application is directed to an improved low-sodium salt that attaches to a bulk carrier with enhanced electrostatic force, to help increase adhesion to a variety of food surfaces. MicroSalt® is a proprietary salt made with micron-size salt particles that dissolve in the mouth significantly faster than regular salt, delivering an increased sensation of saltiness with much less salt, and as a result approximately 50% less sodium.

Victor Hugo Manzanilla, CEO of Salarius said, “In addition to MicroSalt’s current disruptive technology which helps consumers reduce sodium consumption, we have taken a step forward to help solve a critical challenge for snack manufacturers: improving salt adhesion to their food during shipping and display.”

Snack food manufacturers have continued to face major problems with inconsistent flavour and product waste, possibly losing loyal customers over time and increased manufacturing costs, from having to add more salt to each package to over-compensate for settling. By the time consumers purchase and actually open bags of salty snack foods, often inconsistent salt flavour occurs due to poor salt adhesion, with the wasted salt ending up at the bottom of the bag.

Benchmark Hlgs PLC (BMK) 36.50p £290.34m

Benchmark, the aquaculture health, nutrition and genetics business today provides the following Q3 trading update.

The Company has continued to face challenging conditions in the global shrimp and Mediterranean seabass/bream markets, as outlined in its half year results in June 2019, which has impacted sales volumes in Advanced Nutrition. Additionally, the Company is experiencing a reduced contribution from trials of certain pre-license pipeline products within Animal Health, as a result of making good progress towards satisfactorily concluding trials with fewer treatments than expected, and from delays in commencing trials in several territories.

The Company’s expectations of the revenue and profit mix for the full year have also changed. The Company is actively progressing its programme of operational and structural efficiencies, including key commercial licensing deals for its non-core animal vaccines, which, if completed this financial year, are expected to substantially offset the negative variance referred to above. However, there is a risk to the delivery of these deals within the current financial year.

Notwithstanding these short-term challenges, the Board believes that the Company is well positioned in its markets and the opportunities for its existing products and those coming from its pipeline are strong. The Company continues to progress delivery of its five year strategy to drive future growth and profitability.

Marlowe PLC (MRL) 451p £206m

Marlowe plc (“Marlowe” or the “Group”), the specialist services group focused on developing companies which assure safety and regulatory compliance, announces that it has acquired Quantum Compliance incorporated as Quantum Risk Management Limited, for an initial consideration of £4.0 m.

Founded in 2003, Quantum is a leading provider of health and safety consultancy services to commercial organisations across the UK. Quantum conducts health & safety audit and consultancy services for approximately 8,000 commercial properties each year, providing specialist advice on managing health and safety risks and ensuring compliance with a wide variety of health & safety regulations.

For the year to 30 June 2018, Quantum generated revenues of £4.5m and statutory profit before tax of £0.5m. At 30 June 2018, Quantum had net assets of £1.0m. Quantum’s revenues grew at a compound rate of 18% between 2016 and 2018. The total enterprise value will comprise an upfront cash consideration of £4.0 m and contingent consideration of up to £3.2m on the achievement of certain targets. The acquisition will be funded from existing cash and debt facilities.

Europa Oil & Gas (Holdings (EOG) 2.70p £12.01m

Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration, development and production company, is pleased to announce that the Irish Government has approved the Company’s application for a 12 month extension to the First Phase of Frontier Exploration Licence 2/13 (‘FEL 2/13’ or ‘the Licence’) to 4 July 2020. Europa has a 100% interest in FEL 2/13 which is located on the west flank of the South Porcupine basin and includes the Kiely prospects and the Doyle Cretaceous channel complex.  The 280 m barrel Kiely East prospect is the top ranked prospect on the Licence.

The next steps for the Licence include integration of recently purchased CREAN 3D seismic data with particular focus on mapping the extension of Kiely East into open acreage to the south of the Licence. A site survey application for a drilling location on Kiely East is in process.  FEL 2/13 is one of six offshore Ireland licences held by Europa which potentially hold gross mean un-risked prospective resources of 6.4 billion barrels oil equivalent and 1.5 tcf gas.

Cambridge Cognition (COG) 63.00p £15m

Cambridge Cognition Holdings plc (AIM: COG), which delivers digital solutions for optimising cognitive assessment, is pleased to announce its expansion into the Chinese market with the Company’s Cambridge Neuropsychological Test Automated Battery (“CANTAB”) computerised assessments. This move strengthens the Company’s global position, having announced a major opportunity in India earlier this year.

CANTAB are world-renowned assessments that accurately measure all areas of cognition. With over 2,200 peer-reviewed publications describing the use of CANTAB tests in both research and clinical trials, the Company believes CANTAB is the gold-standard in cognitive assessments. To make these available for the Chinese market, Cambridge Cognition have developed task variants in the key spoken (Cantonese and Mandarin) and written (Chinese simplified) languages.

To support Chinese companies and global studies collecting data in China, Cambridge Cognition is establishing a secure cloud infrastructure, using Amazon Web Services, in a data centre in China to enable straight-forward compliance with China’s scientific data transfer regulations.

On the strength of these developments, Cambridge Cognition has already signed a recurring annual contract with Fudan University, Shanghai, which is ranked in the top 5 Chinese universities.

SimiGon Limited (SIM) 9.25p £4.45m

SimiGon, Ltd. (LSE: SIM), a global leader in modelling, simulation and training solutions, is pleased to announce that it was awarded an additional United States Air Force  contract to provide Virtual Reality (VR) Solutions for Vance Air Force Base.

This contract further strengthens SimiGon’s position in providing Virtual and Mixed Reality technologies for training.

Ironveld PLC (IRON) 1.02p £4.91m

Ironveld plc, the owner of a High Purity Iron (“HPI”), vanadium and titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa,  is pleased to announce that as part of the strategic review of its mining assets announced on 2 July 2019, the Company has entered into confidentiality agreements with several parties interested in potentially making an offer to purchase all or part of the Company’s assets. Ironveld is currently in the process of providing such parties with further information on the Company’s assets and access to the Company’s site, management and advisers.

Head Chef:

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

*A corporate client of Hybridan LLP

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