Small Cap Feast

Small Cap Feast – 13 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 894

Total number of AIM Companies trading: 819*
* As at 10 June 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 10 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 10 June 2019

Dish of the Day:

No Joiners Today

Off the Menu:

Lighthouse Group has left AIM following a takeover by Intrinsic/Quilter

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Trainline—Seeking £75m raise. Proceeds to target a net debt at IPO of c.2x LTM Adjusted EBITDA). In FY 2019, Trainline achieved net ticket sales of £3.2bn, and revenue of £210m.  Due June

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

Main Market (Standard)

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC

AIM

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

Breakfast Buffet

Tekcapital (TEK.L) 12p £6.06m

“The UK intellectual property (IP) investment group focused on creating marketplace value from investing in university technology, announced that its portfolio company Salarius ltd. has secured & delivered a follow-on order for MicroSalt® for a U.S. snack food company and completed test production of its SaltMeTM potato chip snacks.

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.

Salarius plans to introduce the SaltMeTM line of full-flavor, low-sodium chips later this year in four varieties: original, barbecue, sour cream & onion and cheddar & sour cream. Panel testing amongst salty snack buyers resulted in a weighted purchase intent of 27.75%, which is significantly higher than average new product initiatives.”

 

Edenville Energy (EDL.L) 0.08p £2.76m

“The Company developing a coal project in southwest Tanzania, provided an operational update for its flagship Rukwa Coal Project following on from the completion of the fundraise which was announced on 17 May 2019.”

The majority of the planned plant upgrades have now been completed, some of which are outlined below.

One of the key upgrades has been further modifications to the pre-screen, which was originally installed in Jan 2019. The initial introduction of the pre-screen, which removes hard to process material such as fine coal, has already resulted in a lower use of consumables in the main plant, such as magnetite.  Going forward it will also enable a more efficient sorting of material prior to it entering the main wash plant circuit, which in turn has the potential to provide more coal for washing and a cleaner recovery as it travels through the plant.

The Company is encouraged by the interest in its coal it has received over the last few weeks, with several potential new clients expressing a wish to purchase its washed coal.

 

Great Western mining (GWM.L) 0.32p £2.2m

The Nevada Division of the U.S. Environmental Protection Bureau of Mining Regulation and Reclamation has approved GWM’s application to close the reclamation permit relating to the 2018 drill programme on the Company’s M4 Copper-Gold project in Mineral County Nevada, following a site visit to review the Company’s land reclamation work.

This approval will enable the Company to begin securing the release of a $60,000 performance bond previously lodged as part of the 2018 M4 drill programme.   

“This is a satisfactory conclusion to our M4 work in 2018, demonstrating our good working relationship with the relevant authorities and our policy of meeting all environmental requirements.  We are currently working on our application for follow up drilling on M4 this Autumn. A GWM field team of three geologists is on location in Nevada and working on this year’s programme, currently conducting mapping and a soil grid on the EM Group of claims. We will update shareholders as results become available.”

 

Oxford BioDynamics (OBD.L) 145p £127.27m

The biotechnology company focused on the discovery and development of epigenetic biomarkers based on regulatory genome architecture, for use within the pharmaceutical and biotechnology industry, announces that it has appointed Dr Bartu Ahiska as Senior Vice President (Commercial), to spearhead the commercialisation of the Group’s EpiSwitch™ technology platform.

Bartu Ahiska is an experienced entrepreneur, IP strategist and technology driver with experience in several fields including medical engineering, biologics, computing and graphics. He joins OBD from the Knight Cancer Early Detection Advanced Research Centre (CEDAR) at Oregon Health & Science University (OHSU) in Portland, Oregon, where he has been Innovation, IP & Commercialisation manager since 2016. He was a co-founder and remains a Non-Executive Director of Trogenex Inc in San Diego, CA, and was COO and CEO of cloud-computing company Approxy before its acquisition by Numecent. 

 

Ten Lifestyle Group (TENG.L) 87p £66.9m

The technology-enabled lifestyle and travel platform for the world’s wealthy and mass affluent, announced it has signed a three-year contract with China Merchants Bank (CMB) Private Bank, to provide digitally enabled travel and lifestyle concierge services to CMB’s Private Banking clients globally. 

Preparations are underway, with an expected launch date in June 2019. The contract will commence as a Small contract1 but is expected to grow into a Medium contract within 12 months and a Large contract in the coming years.

Small contracts (below £250,000);

Medium contracts (between £250,000 and £2m); and

Large contracts (over £2m).

 

NWF Group (NWF.L) 179.5p £82.14m

FY May 19 trading update from the specialist distributor of fuel, food and feed across the UK.

Overall trading for the financial year ended 31 May 2019 is expected to be above market expectations following a strong end to the year.

Fuels: Strong performance benefiting from good results across the depot network and effective management of a volatile oil price. Results anticipated to be ahead of expectations, despite the milder winter, but behind the record prior year.

Food: The Wardle site has remained full throughout the period as a consequence of new business won in the prior 12 months. It is expected to deliver significantly improved performance with the benefit of new customers and staff operating more effectively.

Feeds: High demand over the summer was followed by weaker demand over the key winter months as a consequence of mild weather and less demand for sheep feed. Overall performance was satisfactory, albeit expected to be a little behind the prior year.

 

Safestay (SSTY.L) 33p £21m

“The owner and operator of an international brand of contemporary hostels, announced that it has acquired the freehold of ‘Hostel Pisa’ for 3.25m.

The acquisition of the 161 bed Hostel Pisa is part of the Group’s strategy to establish a pan-European network of premium hostels, located in popular tourist cities. The addition of Hostel Pisa takes the portfolio to fourteen hostels and with the recent fund raising and pipeline of potential sites, the Company is well placed to reach its shorter-term target of owning and operating 20 hostels.”

The property is freehold and in the 12 months to 31 Dec 2018 generated revenues of €0.8m and EBITDA of €0.3m. The total consideration of €3.25m will be satisfied in  cash, from the Group’s existing cash resources. Given the good condition of the building and facilities, the only investment required will be to re-brand the building to become a Safestay Hostel at an approximate cost of €50,000.

 

Helios Underwriting (HUW.L) 132.5p £20.4m

Helios has conditionally raised approximately £1.15m by way of a placing of 895,313 new Ordinary Shares at a price of £1.28 per share. In addition, the Company intends to raise up to a further, approximately, £1.9m by way of an Open Offer to existing shareholders on the basis of 1 Open Offer Share for every 10 Existing Ordinary Shares. Each of the Placing and the Open Offer are conditional, amongst other things, upon the relevant shareholder authorities being granted at the Company’s forthcoming General Meeting.

Each of the Directors (other than Nigel Hanbury) have participated, directly or indirectly, in the Placing to a total of approximately £90,000. Will Roseff, a substantial shareholder, has also participated in the Placing to the amount of £800,000.  The Directors have undertaken not to participate in the Open Offer.

Proceeds to strengthen its balance sheet and provide readily available funds to acquire further limited liability vehicles that participate in syndicates at Lloyd’s when attractive opportunities arise.

 

Water Intelligence (WATR.L) 345p £49.1m

“The  provider of minimally-invasive leak detection and remediation services for residential, commercial and municipal customers, announced the reacquisition of its Tucson, Arizona franchise  within the Group’s American Leak Detection subsidiary. Tucson is a significant reacquisition that enables the Group to leverage an already strong business to add further scale to Water Intelligence, both operationally and financially.”

For full year 2018, Tucson generated approximately $0.78m of revenue and $0.15m of net income. Consideration $0.7m.

 

Accesso Technology (ACSO.L) 710p £193m

The premier technology solutions provider to leisure, entertainment, hospitality, attractions and cultural markets, has agreed a new three-year partnership agreement with The New York Botanical Garden (NYBG) which will utilise theaccesso Passport® eCommerce suite, the accesso Siriusware SMsoftware solution and the Ingresso distribution platform.  The New York Botanical Garden welcomes more than 1 million visitors each year in a highly competitive location. Its choice of accesso as its technology partner reflects the Group’s ability to provide a range of increasingly broad and agile solutions to meet even the most complex customer needs across ticketing, guest management and distribution.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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