Small Cap Feast

Small Cap Feast – 12 February 2020

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

Total number of AIM Companies trading: *
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Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: *
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Set Menu Standard List:

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

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Dish of the Day:

Unconditional Dealings commence in Calisen (CLSN.L) main mkt premium., raising £300m. Mkt cap £1.32bn.

 

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)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m. Due 11 Mar.

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

Oncimmune Holdings (ONC.L) 31.5p £19.9m

The leading global immunodiagnostics group, today announces its half year results for the six months ended 30 November 2019.

Biodesix to launch EarlyCDT Lung in US by early March 2020

Service contract signed with a large pharmaceutical group

In late stage talks on multiple potential service contracts.

Revenue for the period was £0.31m. Cash £7.5m

Total administrative expenses were £5.11m (H1 2018: £2.63m); of which c.£1.3m relates to reshaping the business (£0.7m relate to the Biodesix and Protagen Diagnostics transactions and £0.6m relates to increased staff costs); a further £0.7m relates to the IPF credit facility and increased patent costs as the Protagen patent estate was integrated.

 The implementation of an ongoing cost reduction programme post the period has delivered annual cost savings of c.£1.0m, with the sale of the US subsidiary’s laboratory to Biodesix expected to contribute further annual cost savings of c.£2.2m.

 R&D costs were £1.01m.

 

Fox Marble (FOX.L) 2.25p £5.9m

 The  company focused on marble quarrying and processing in Kosovo and the Balkans region announces that it has entered into an agreement with EBA Sh.p.K with the intention to provide processed marble in the form of tiles, stair treads and window lintels. 

 

EBA Sh.p.K is a local architect and construction firm based in Kosovo, and the products are destined for use in construction projects within Kosovo. The material selected for these items is Flora, Alexandrian White and Illirico Bianco.

The stone will be processed at Fox Marble’s Lipjan factory, from existing blocks of Illirico Bianco, Flora and Alexandrian White. The agreement has no minimum order value, but pricing is based on a minimum volume of 2,000 square metres, which the Company expects to supply over the course of this financial year.

 

Frontier IP Group (FIPP.L) 65p £32.9m

 Frontier IP, a specialist in commercialising intellectual property, has raised its equity stake in portfolio company Celerum Limited from 10 per cent to 33.8 per cent. The increase is in return for an investment of £25,000, converting a previous loan of £21,818 into equity, and for providing £50,000 worth of additional strategic, business and hands-on software development services. 

Celerum, a spin out from Robert Gordon University (“RGU”), Aberdeen, is developing novel artificial intelligence to help businesses improve the operational efficiency of logistics and supply chains. It also has the potential to  tackle a host of other complex scientific, engineering and industrial challenges. Frontier IP is stepping up its support for the Company in response to increased industry interest.

 

Scapa Group (SCPA.L) 193.5p £300m

Update on current trading ahead of its financial year-end on 31 March 2020.

Revenue c.£306m, broadly in line with market expectations. However, trading profit is now expected to be approximately £28m, significantly below consensus. Healthcare revenue is estimated to be approximately £139m, slightly ahead of market expectations and greater than last year despite the loss of the ConvaTec contract. Healthcare trading profit is expected to be lower than consensus, reflecting slower progress in reducing costs than expected at the time of the interim results. Industrial revenue is expected to be approximately £168m, which is slightly below market expectations but has a material impact on Group trading profit, primarily the result of adverse macroeconomic conditions. Scapa is focused on rigorous execution of the strategy as it continues to increase efficiency and convert its pipeline of opportunities to improve sales and margin performance. Expects the macro environment to remain challenging in some of the industrial markets in which it operates.

 

RWS Holdings (RWS.L) 601.5p £1.65bnm

AGM Statement from the language, intellectual property support services and localization providers. “The financial year ended 30 September 2019 was an excellent year for RWS, with all three divisions delivering record results, enabling the Group to maintain its unparalleled record of 16 years of unbroken growth in revenues, profits and dividends since flotation in 2003. This achievement was recognized when RWS was named Company of the Year at the 2019 AIM Awards.”

Current trading and outlook

“We have continued to build on our momentum in the first few months of the 2020 financial year, with several excellent new contract wins, particularly within our IP Services division, leaving us on course to deliver full year results in line with the Board’s underlying expectations, notwithstanding the recent currency headwinds.”

 

SolGold (SOLG.L) 18.25p £351m

Update on exploration at its 100% owned Timbara Project in Southern Ecuador. The project is held in SolGold’s 100% owned subsidiary Green Rock Resources S.A.

Ø The Timbara project is of Jurassic age similar to nearby the Fruta del Norte, Mirador and Santa Barbara deposits.

Mineralisation mapped over a 600m strike length demonstrates strong gold grades and remains open in both directions at Timbara 2. Mineralisation occurs within an 18m wide northwest trending silicified zone, hosting polymetallic quartz veins. Rock saw channel sampling confirms the prospectivity of the Timbara 2 zone, with initial rock saw channel samples returning:

7.7m @ 6.63 g/t Au (northern stream outcrops) -2m @ 5.16 g/t Au (southern stream outcrops)

The mineralisation at the southern stream outcrop remains open at both ends.

 Field teams are continuing with clearing to create additional outcrop exposures for further mapping and sampling.

 

Phoenix Copper (PXC.L) 10.5p £4.5m

Results of two years of independent baseline environmental data collection and monitoring at the Empire Mine, Idaho USA.  The results of the monitoring will be used directly for environmental permitting and the continued development of the Plan of Operations for all future mining activity, including Red Star and the Empire open-pit copper oxide deposit.

No critical habitat for threatened or endangered plant or wildlife was identified within the project area.

Surface and groundwater studies indicate no impacts from legacy mining operations. No significant cultural or archaeological artefacts identified in the project area

No Sage Grouse or Sage Grouse leks (breeding sites) were identified at or near the project area.

The full Plant and Wildlife reports, archaeological reports, and hydrological reports can be viewed on the Company’s website at www.phoenixcopperlimited.com/reports in the name of Konnex Resources Inc, the subsidiary local operating company of the Company

 

7digital (7Dig.L) 0.5p £11.3m

 The global leader in B2B end-to-end digital music solutions, is pleased to announce that its music platform-as-a-service will power jazzed, the world’s first dedicated audio-visual streaming service for jazz and jazz-influenced music.

jazzed is a multi-tier jazz streaming subscription service which has been developed by ETA Productions Ltd, a specialist in creating new digital media platforms for entertainment markets. Launched today, it offers a highly curated music, video and editorial experience for the jazz fan, featuring over 5m tracks and unique individual channels. Under the terms of the initial 12 month contract, which includes set-up, monthly and usage-based content fees, jazzed will use 7digital’s API and platform access, playlist tools, reporting services and catalogue management. This will allow jazzed users to stream music from 7digital’s extensive catalogue of jazz tracks. jazzed offers an ad-funded freemium version featuring 10 hand-curated audio channels and a selection of video content, and a £5.99 monthly subscription-based tier with over 40 channels and exclusive video content.

 

88 Energy (88E.L) 1.175p £83.5m

Update related to operations for the upcoming Charlie-1 appraisal well, on the North Slope of Alaska.

Highlights

  • Ice road now >80% complete

Permit to Drill approved for Charlie-1 appraisal well

  • Spud on track for late February

 

Craven House Capital (CRV.L) 3.85p £10.3m

$1.9m placing at $10. Whilst this does represent a 237% premium to the closing mid-market price on 11 February 2020, it represents a 1.1% premium to the last audited NAV per share of $9.89 as at 31 May 2019.

The proceeds of the Placing Shares will be used to undertake investments further to the Company’s investment strategy.

 

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

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