Small Cap Feast

Small Cap Feast – 12 February 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 844*
* As at 05 February 2019

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: 87*
* As at 05 February 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 05 February 2019

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)

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

AIM

United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb

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.

Breakfast Buffet

Sandal (NEX:SAND) 26p £4.2m

The Company has this week launched its Energenie MiHome Wi-Fi adapter plug which enables users to turn on and off any appliance that plugs into a standard wall socket using a smart phone.   December 2018 saw a significant increase in Energenie MiHome sales with a late surge in product sold through retail, in common with many other manufacturers.  Sales of Energenie MiHome products by Amazon increased by 30.9% in value.   Despite the very encouraging recent sales data for Energenie MiHome products, the Company is still seeking further growth capital which will enable the brand to fully exploit its current market position.  Without such funds, marketing spend has been constrained and as a result sales for the year to 31 May 2019 are now expected to be below market  expectations  .

 

Frontier IP Group (FIPP.L) 87p £36.4m

 “Frontier IP, a specialist in commercialising university intellectual property (“IP”), today announces strong progress in Portugal with the incorporation of a new company which will be called Insignals Neurotech . Insignals is developing patented technology to aid deep brain stimulation surgery on patients suffering Parkinson’s disease, epilepsy and other neural conditions.

 

Frontier IP will hold a 33 per cent. stake in the Company. It is the Group’s third spin out in Portugal, where it aims to be a leader in university IP commercialisation.”

 

Velocys (VLS.L) 3.85p £16.1m

Velocys has agreed a series of amendments in its licensing contracts with Red Rock Biofuels LLC (RRB), regarding RRB’s license of Velocys Fischer-Tropsch reactors and proprietary catalyst for the RRB biorefinery under construction in Lakeview, Oregon, USA

These changes have a positive impact on Velocys’ near-term cash flow of an estimated $1.1m and a decrease in revenue of nearly $3m (out of a total contract value of approximately $15m). Should RRB exercise its option to purchase the two additional reactors the total contract value will return to approximately $15m. RRB remains committed to purchase a total of six charges of catalyst in 2019.

 

Cabot Energy (CAB.L) 3.31p £0.23m

 Fund raise of up to £2.8m at 10p in a placing and open offer. Also proposes a 100 for 1 consolidation.

The Fundraising will allow the Company to fund the partial settlement of outstanding balances with trade creditors in Canada and the UK and provide short term working capital for the Company’s immediate needs.  “As previously stated, we were encouraged by the annual increase of 26% in gross Net Proven plus Probable reserves to 3.6 mmboe as well as the 339% increase in gross reserves and resources of the Canadian asset to 42.2 mmboe.  Also, encouragingly, the spread between the West Texas Intermediate benchmark crude price and the Edmonton Light Oil benchmark price from December 2018 onwards has been restored to normal historical levels.”

 

Tlou Energy (TLOU.L) 5.95p £23.6m

 Tlou, has successfully completed the drilling of the Lesedi 3 development pod at its CBM project in Botswana.

Highlights

  • Lateral wells Lesedi 3A and Lesedi 3B have been successfully completed with both wells intersecting with the vertical well Lesedi 3P to complete the Lesedi 3 development pod.
  • Dewatering and gas flow testing at Lesedi 3 will commence following the installation of production equipment.
  • The drill rig is being moved to the second planned production pod, Lesedi 4.

 

mporium Group(MPM.L) 5.6p £31.1m

Further insight regarding the Allay Agreement and an update on revenues.

Mporium has taken on responsibility as Allay’s exclusive supplier of customer acquisition and lead generation via digital platforms for breaches of consumer regulation.

Customer acquisition and lead generation on behalf of Allay has started strongly and is already yielding significant benefits.

Across its businesses, Mporium has billed revenues in excess of £1.0m for each of the past two weeks. For comparison, H1 2018 revenues totalled £1.2m.

Mporium expects strong growth in the demand for lead generation in the Consumer regulation market, due to the increasing standardisation and prescriptive compensation across many verticals including Packaged Bank Accounts and flight compensation.

 

Zambeef (ZAM.L) 10.75p £32.3m

The fully integrated food producer with operations in Zambia, Nigeria and Ghana, announces the resignation of Mr. Craig Harris as Chief Financial Officer of Zambeef Products PLC and all Group Companies, with immediate effect.

The Board will take immediate steps to identify a new CFO, led by the Succession and Remuneration Committee, pending which senior managers within the finance function will report to the Board through the CEO.

Zambeef Chairman, Dr Jacob Mwanza, commented:

“The Board wishes to thank Craig for his dedication and contribution to the company since his appointment in 2012 and wishes him well in his future endeavours.”

 

Osirium (OSI.L) 120.5p £16.13m

The  vendor of cloud-based cybersecurity software, is pleased to announce a contract win with a major UK provider of software and IT services to the public sector.

 

Under the terms of the contract Osirium will deliver its full PxM Platform including the Privileged Access Management, Privileged Task Management and Privileged Session Management modules. The license is initially for 250 devices of the three modules and is set to run for 12 months.  

The Osirium platform will enable the customer to develop secure, managed services with tight controls over access to systems, as well as detailed reporting.

 

Morses Club (MCL.L) 149.5p £196.3m

The UK’s second largest home collected credit lender, is pleased to announce the acquisition of the business and assets of Hays Credit LLP, a home collected credit lender.

Hays is a family-run business which has been operating since 1957, providing loans to approximately 2,700 customers across the North East of England. Hays has outstanding balances of approximately £1.6m.  Hays is regulated by the Financial Conduct Authority and is a member of the Consumer Credit Association.

The acquisition further expands Morses Club’s core home collected credit business in the North East of England, complementing the recently announced acquisition of the business and assets of Eccles Savings & Loans Limited, the North West based home collected credit business with 3,000 customers.

 

Panoply Holdings (TPX.L) 95p £42.3m

Acquisition of the entire issued share capital of GreenShoot Labs Limited , a provider of enterprise digital solutions using applied Artificial Intelligence and conversational interfaces.

GreenShoot Labs will be the fourth business to join the UK cluster of Group companies, and further progresses The Panoply’s aim to build regional clusters which provide a full suite of digital transformation services. This acquisition is in line with the Group’s strategy to back start-ups with strong management and strong potential for growth. The acquisition terms include no initial consideration and additional consideration only payable if GreenShoot Labs achieves positive EBITDA during the earn-out period. In the period following completion a de minimis cash amount will be payable to the sellers of GreenShoot Labs equivalent to the value of the current net assets of GreenShoot Labs acquired at completion.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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