Small Cap Feast
Small Cap Feast – 13 December 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
What’s Cooking in the IPO Kitchen?
SulNOx Group – The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.
Horizon Discovery (HZD.L) 158.2p £238m
The specialist in the application of gene editing and gene modulation technologies, announces a strategic collaboration with Mammoth Biosciences, that will see the two companies develop new CRISPR tools to provide the next generation of engineered cell lines for the biopharmaceutical industry.
Under the terms of the agreement, Horizon and Mammoth will collaborate to identify and optimise the Company’s novel proteins for use under license by Horizon. This will then be deployed for the development of the Group’s next generation of engineered cell lines.
Horizon will have exclusive rights to utilise this novel approach to bioproduction and will also be able to sublicense it to partners intent on modifying their own proprietary cell lines.
Horizon will pay an undisclosed consideration and issue warrants to Mammoth for the exclusive rights being licensed. The warrants will be issued within 30 days and will give Mammoth the right to subscribe for a number of ordinary shares in Horizon equivalent to 0.5% of the issued share capital of Horizon at the market price on the date of grant.
Savannah Petroleum (SAVP.L) 22.1p £220m
“Savannah Petroleum PLC (“Savannah”) is pleased to announce the renewal of its €11.4 million unsecured revolving loan facility (“the Facility”) with Oragroup SA, the West and Central Africa focused banking group. The Facility was originally signed in December 2016 and was designed for working capital and general corporate purposes.
The Facility has been renewed for a further three years and will continue to be used for the same purposes as in the original agreement. The terms of the Facility are unchanged with an interest rate of 7.5% payable on a semi-annual basis on amounts borrowed under the Facility.”
M P Evans Group (MPE.L) 685p £373m
“The board of directors of MP Evans is pleased to announce that it intends to commence a new share buyback programme of £1 million on 1 January 2020 to replace its current share buyback programme once this expires on 31 December 2019. All shares acquired under the New Programme will be cancelled.
The Board believes that the current share price substantially undervalues the Group’s assets, the performance of the business to date and its future prospects. The Group’s robust balance sheet provides the opportunity to take advantage of prevailing market conditions to repurchase shares at advantageous levels that will be earnings enhancing.”
GAN PLC (GAN.L) 142p £120m
The award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today updated the market following the publication on December 12, 2019, by New Jersey’s Division of Gaming Enforcement (“DGE”) of Internet gaming and Internet sports betting financial information for the calendar month of November 2019 in New Jersey.
Highlights from the DGE include:
- Internet Gaming Win was $49.1 million in November compared to $26.9 million in the prior year period, reflecting a year-over-year increase of 82.4%.
- Total Internet Sports Wagering Handle(1) was approximately $486.8 million for the month of November, compared to:
– $417.0 million for the month of October 2019;
– $374.2 million for the month of September 2019; and – $249.2 million for the month of August 2019.
- Internet Sports Wagering Gross Revenues(2) (after payouts) for the month of November were $27.8 million, compared to $14.4 million in November 2018, reflecting a year-over-year increase of 92.4%
Helios Underwriting (HUW.L) 132p £23.8m
In line with its strategy of increasing underwriting capacity through acquisition, Helios has acquired Lloyd’s Member Catbang 926 Limited, a limited liability member of Lloyd’s of London. The consideration payable for Catbang is £5.6 million in cash of which £2m will be paid on completion and the balance paid within 60 days of completion.
Information in respect of Catbang
The 2019 underwriting capacity of Catbang is £4.1m. Catbang participates in a spread of Lloyd’s syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd’s.
The consideration represents a discount of approximately 16% to the independent valuation of £6.7m placed on Catbang by Humphrey’s and is approximately £0.6m below the fair value of assets being acquired.
Hurricane Energy (HUR.L) 32p £637m
Trading and operational update, and reports an update in relation to its P1368 licence.
- Strong performance of Lancaster Early Production System wells – during recent individual well flow tests, good natural flow rates were achieved with minimal bottom hole pressure decline
- P1368 licence extension
o Lancaster and Lincoln subareas of P1368 extended for five years
o Whirlwind and Strathmore sub-areas to be relinquished
o Total production of 3.1 million barrels of oil, representing an average rate of 13,300 barrels of oil per day
o Lancaster EPS average production rate guidance maintained: 20,000 barrels of oil per day (before operational downtime), to be reviewed as part of the current testing programme
Gateley (GTLY.L) 175p £197m
Acquisition of T-three Group for a consideration of £3.4m. T-three complements Kiddy & Partners, which Gateley acquired in July 2018, and together these businesses create one of the largest specialist Human Capital consultancy businesses in the UK.
T-three offers services and products to businesses that enable them to develop their senior people and effect cultural change within the business itself. Its client base includes multinational companies, large public sector organisations and SMEs across the UK and worldwide. T-three is based in Cambourne, Cambridge and employs 35 staff.
T-three is an established, profitable and cash generative business and it will continue to trade under its existing name from its offices in Cambourne. In the year ended 30 September 2019, T-three generated pro-forma revenues from continuing operations of £4.2m and EBITDA of £0.7m. The Board expects the acquisition to be immediately earnings enhancing.
Amiad Water Systems (AFS.L) 220p £49.9m
The global producer of water treatment and filtration solutions, provides the following update on trading for the year ending 31 December 2019.
As noted in the Company’s interim results announcement on 11 September 2019, Amiad entered the second half of 2019 with a higher order book and larger sales pipeline than at the same point of the previous year. During the second half of the year, the Company was successful in converting this pipeline into sales and expects to achieve revenue growth for full year 2019 over 2018. However, owing to a number of global macroeconomic factors, in particular those impacting the Americas, certain projects did not proceed due to a lack of capital investment. As a result, the Company expects its revenue for full year 2019 to be slightly below market expectations. Looking ahead, the Company expects to enter 2020 with a higher backlog than at the same point in the prior year and is experiencing encouraging sales activity.
ImmuPharma (IMM.L) 17.84p £29.9m
The “specialist drug discovery and development company is pleased to announce that its shares will be admitted to trading on Euronext Growth Brussels (“Euronext”) under ticker ‘ALIMM’ following the approval by Euronext of its request for listing. Admission is expected to take effect from 19 December 2019. “
Codemasters (CDM.L) 255p £385.8m
Further to Codemasters’ announcement on 28 November 2019 of its acquisition of Slightly Mad Studios, the Company is pleased to announce that the game featuring licensed IP relating to a Hollywood blockbuster movie franchise will be Fast & Furious Crossroads.
0203 764 2344
*A corporate client of Hybridan LLP
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 email@example.com with “unsubscribe me”.