Small Cap Feast

Small Cap Feast – 13 December 2018

Dish of the Day:

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What’s Cooking in the IPO Kitchen?

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.


PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised.  Due 21 Dec.  Mkt cap c.£80m

Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC.  Due 18 Dec. Mkt Cap A$64m.

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.

Breakfast Buffet

Integumen* (SKIN.L) 0.51p £2.32m

Integumen has announced a cross-platform biophysics agreement with AI developer, Rinocloud Limited, in association with Cork Institute of Technology’s Nimbus embedded systems research institute and its Cappa Photonics Laboratory to develop Labskin-On-A-Chip (“LOAC”) technology.

Pioneering animal free, clinical research skin-treatment test platform by exploiting Photonics. Labskin is grown on a microchip where light is generated, detected and manipulated, using the cutting-edge use of lasers and fibre-optics on an electro-optical device.

Labskin-on-a-Chip as a pre-clinical and post-clinical platform is a major step up for all skin related disease treatments. The completion of the project over the next 12 months is expected to provide every dermatology clinic with a desktop ability to take a swab of the patient’s own bacteria, place it on the Labskin and provide the best course of treatment.


Thor Mining (THR.L) 1.6p £10.04m

The Board of Thor Mining, announced an upgraded and increased mineral resource estimate containing tungsten, copper and now zinc, for the Desert Scheelite deposit at Pilot Mountain in Nevada USA.

The Desert Scheelite mineral resource estimate now comprises 10.7 million tonnes at 0.26% WO₃, 19.38 gram/tonne Silver (Ag), 0.15% copper (Cu), & 0.38% zinc (Zn) (above cut-off grade of 0.15% WO3);

The upgraded mineral resource estimate represents a 6.5% increase in the scheelite inventory for Desert Scheelite, now containing 27,700 tonnes of WO₃ (tungsten trioxide) 85% of which is in the Indicated category;

For the first time, the estimate includes zinc in the resource inventory, contributing an additional potential by-product stream to the project;

The planned flotation recovery process, currently being trialled, is likely to recover zinc sulphides into concentrate with minimal additional cost;

The resource inventory still has considerable growth potential via the Gun Metal and Good Hope deposits, as well as further potential upside at both Desert Scheelite and Garnet.


Springfield Props (SPR.L) 106p £102m

The housebuilder in Scotland offering private and affordable housing, has won Best New Share Plan at this year’s ProShare Awards, which recognise and reward innovation and excellence within the share plan industry.

The Best New Share Plan award recognises newly-launched employee share plans that are designed to link clearly with business objectives. It must also be effectively communicated and have a simple process to encourage employee participation, resulting in strong levels of uptake. In particular, the judges were impressed with Springfield’s above-average take-up, especially that this level of engagement was achieved in a working environment where the majority of the workforce is deployed outdoors over multiple sites and that it included a very high take-up amongst both younger and female employees.


Accesso Tech (ACSO.L) 1,250p £330.72m

The premier technology solutions provider to leisure, entertainment, cultural and hospitality markets, has announced an expansion of its partnership with Merlin Entertainments to implement a combination of accesso’s ticketing, queuing and guest experience solutions at The Bear Grylls Adventure in Birmingham, England. 

The Bear Grylls Adventure will combine accesso Passport®, accesso LoQueueSM, The Experience EngineTM and accesso PrismSM, here renamed BearTag, to deliver an unparalleled user experience to its guests. Upon arrival and check-in, each guest will receive a BearTag loaded with their custom itinerary, which will guide them through their chosen adventures with live messages and reservation notifications throughout their visit. The technology will also enable guests to make secure, cashless payments for meals and merchandise, receive marketing offers in real-time and claim free photos from their unforgettable experience.


OnTheMarket (OTMP.L) 106p £65.36m

As of 12 Dec, it has listing agreements with UK estate and letting agents with more than 12,000 branches. This increase of more than 6,500 branches since Admission to AIM in Feb has been achieved in just over ten months.

The figures include 60 offices, largely made up of smaller firms, which have recently entered full tariff paying listing agreements. These firms will receive new shares in OnTheMarket plc alongside the listing commitments they have made. The shares are subject to 5-year lock-in arrangements to ensure that new shareholders’ interests are closely aligned with those of all other agent investors.

Growth to date has been almost exclusively from offering free listings under short-term introductory trial offers, with a view to converting these to full tariff contracts when the value of its offering has been demonstrated.

The sales team is continuing to see encouragingly high levels of agent support and conversion to signed contracts when it presents the opportunity of listing on an agent-backed portal.


Nanoco Group (NANO.L) 39.6p £106.37m

AGM Statement from the specialist in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials. “Since we updated the market in mid-October with our preliminary results, we have continued to make good progress in delivering the various scopes of work for our US Customer for materials used in the electronics industry. Our Runcorn facility expansion remains on track to be completed by the end of the current calendar year and we continue to deliver excellent performance in enhancing the quality and performance of our next generation materials. The Runcorn plant will enter its next development phase in Jan 2019 when it will undergo commissioning and stress testing prior to commercial volume manufacture early in the first half of the next financial year.”

“We continue to work with a range of customers and partners on a number of near term potentially transformative technological and commercial activities.” “We remain confident in delivering the Board’s expectations for our full year results.”


Tungsten Corp (TUNG.L) 32p £40.35m

HY Oct 18 results from the provider of the  secure business transaction network that brings businesses and their suppliers closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cash flow.

Revenue increased 3% in H1-FY19 to £17.6m (H1-FY18: £17.1m); up 3% at constant exchange rates

£4.2m improvement in EBITDA to £0.75m loss (H1-FY18: £5m loss)

Gross margin of 93.2%, a 220 basis point improvement from 91% in H1-FY18

FY19 revenue expectation now £36m to £36.5m, representing full year constant currency growth of 7% to 10%. This reflects H2-FY19 revenue growth over H1-FY19 of 5% to 8% (10% to 16% annualised), both at constant rates of exchange. EBITDA profit for the full financial year, as a result of reduced adjusted operating expenses.


Draper Esprit (GROW.L) 510p £505.19m

The venture capital firm investing in and developing high growth digital technology businesses, today announces it is leading a $40m investment in FINALCAD, the leading building, infrastructure and construction mobile software platform.

Draper Esprit invested £12.4m (€14m) in the round, alongside international investors Cathay Innovation and Salesforce Ventures. The latest Series C funding round brings the total funds raised by FINALCAD to $60m. The investment will be used to extend the product platform into the energy, operations and maintenance sectors, increase headcount globally, and to invest further in R&D.

Other recent investments led by Draper Esprit include $14m Form3 Series B round, $31m Series A Fluidic Analytics round and a £14.5m ($19m) growth round for Crowdcube, in addition to the previously announced Secondary portfolio acquisition of DFJ Europe X fund for £25.9m ($33.7m).


Hummingbird Resources (HUM.L) 18.75p £64.21m

Second set of drill results from the 2018 exploration campaign in Mali, the focus of which is to convert Resources to Reserves and, in time, to extend the life of mine from the Company’s Yanfolila Gold Mine.   Further positive results from those announced in September and shows the high-grade potential at Gonka owing to the significant numbers of wide and high-grade drill intercepts encountered to date.

Best Intersections Include

  • 15m @ 16.03g/t from 207m depth (GKRCD0013)
  • 0.05m @ 4.63g/t from 118m depth (GKDD0020)
  • 11m @ 4.11g/t from 79m depth (GKRCD0044)

Komana West (‘KW’) Deposit

  • 15m @ 4.25 g/t from 8m depth (KWDD0609)

Komana West South Extension

  • 12m @ 1.90 g/t from 90m depth (KWRC0419)


VR Education (VRE.L) 11p £19.8m

The virtual reality (‘VR’) technology company focused on the education space, is pleased to announce the full commercial release of ENGAGE, its online virtual learning and corporate training platform. At the time of its IPO in March 2018, the Group raised £6m gross to, amongst other activities, fund the further development of its proprietary VR education platform, “ENGAGE” .

ENGAGE version 1.0 is now available on all industry leading VR devices including HTC Vive, Oculus Rift and Windows Mixed Reality devices. Development of ENGAGE mobile is now complete and will be made available early next year on devices such as the Oculus Go, Vive Focus and selected Google DayDream devices. The content that the Group has already created following its partnerships with the BBC, the University of Bristol, the University of Oxford and the University of New Haven will immediately be available on the platform.


Head Chef:

Derren Nathan
0203 764 2344

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