AIM Breakfasts

AIM BREAKFAST – 13th February 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 972

Total number of AIM Companies trading: 952*
* As at 10 February 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 85*

Total number of ISDX Growth Market Companies trading: 82*
* As at 10 February 2017

Dish of the Day:

No NEX Growth Market Joiners Today

Off the Menu:

No NEX Growth Market Leavers Today

What’s Cooking in the IPO Kitchen?

Emmerson— Prospectus published. Joining standard list. Seeking acquisitions. Expected admission 15 Feb

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Issue closing 23 Feb.

Arix Bioscience — Intention to float on the main market from the  global healthcare and life science company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management

Ramsdens Holdings –Schedule One from the financial services provider and retailer, operating in the core business segments of foreign currency exchange, pawnbroking loans, precious metals buying and selling and retailing of second hand and new jewellery. Expected admission to AIM 15 Feb raising circa £15.6m. Expected mkt cap £26.5m.

 

Breakfast Buffet

Coinsilium Group (NEX:COIN) 1.5p £1.1m

The blockchain technology investment and development company, announced that Factom Inc. a blockchain company in which Coinsilium has a 1.5768% equity interest, has received a US$750,000 investment from Medici Ventures, the blockchain-focused investment arm of Overstock.com, Inc, for 2.50% of Factom’s common stock. This investment values Factom at US$30m and Coinsilium’s shareholding in Factom at US$473,040, 236.52% higher than at the time of Coinsilium’s investment in 2015. Factom’s unique back-end infrastructure allows corporations, governments, and organizations to securely integrate, manage, and secure data — any type, any source, and at a massive scale.

 

Surface Transforms (SCE.L) 22.25p £20.06m

HY Nov 16 results from  manufacturers of carbon fibre reinforced ceramic materials. Turnover decreased to £327k (H1-2015: £782k). Total comprehensive loss increased to £976k (H1-2015: £124k). Production underway at the new Knowsley factory. Post period end, first tier 2 supplier nomination to a UK automotive OEM. Cash was £2,698k at the half-year end. Losses in 2016-17 are expected to be higher than the prior year but within the range of current market expectations. Strong growth prospects from potential OEM prospects in aerospace and automotive.

 

Alpha Real Trust (ARTL.L) 102.5p £71.06m

As announced on 29 January 2015, the International Chamber of Commerce  Arbitration declared an award in favour of the Company with respect to its Galaxia investment, a JV with the Logix Group (“Logix”) located in an 11.2 acre Special Economic Zone, in NOIDA, the National Capital Region, India. The total award amounted to £9.2m based on exchange rates at the time. Additionally, a further 15% p.a interest on all sums was awarded to the Company from 20 January 2015 until the actual date of payment by Logix of the award. The sum has now accrued to £13.4m.  Following a challenge of the award by Logix, the Company announces that on 9 February 2017 the Delhi High Court  upheld the award and dismissed the Logix petition with costs. Logix has 30 days to appeal the dismissal.

 

Lok’nStore Group (LOK.L) 460p £132m

HYJan17 trading update from he fast growing self-storage Company. “Building on the positive momentum of FY2016, trading in the first half of FY2017 has remained solid.  In our core self-storage business the first half revenue was up 3.9% year-on-year.  At 31 January 2017, self-storage unit occupancy was up 4.6% and price per let square foot was unchanged compared to the same date 12 months ago.” In November 2016, in response to demand for the Company’s shares and to improve liquidity the Company sold 1,975,000 shares from treasury raising £7.9m to further strengthen the balance sheet. In January 2017 the Company signed a 2 year extension to its existing £40 million bank facility.  33.3x FYJul17 PE and 2.3% yield.

 

Sula Iron & Gold (SULA.L) 0.33p £6.96m

The multi-commodity exploration Company focused on Sierra Leone, announced that the two diamond drill rigs shipped from South Africa in December 2016, have now docked and were unloaded at Freetown Port on Friday 10 February 2017.  As previously announced, whilst the original plans contemplated the use of a single rig, Equity Drilling Ltd has mobilised two rigs for use at Ferensola, at no additional cost to Sula. Accordingly, this should ensure that the planned drill programme, originally envisaged to be 2,400m, will be completed expeditiously.  Expecting to drill a larger area than originally planned.

 

LGO Energy (LGO.L) 0.13p £10.67m

LGO today confirmed that final approval was granted by the Forestry Department on Friday, to cut trees in order to clear the well sites for the impending 2 shallow infill wells at the Goudron Field in eastern Trinidad. Site clearance work will now start at H18E N4 and final preparations will be made to mobilise Rig#18 to the Field.   Drilling operations will commence as soon as the site has been cleared and levelled, and the rig is in the Field. Well H18E N4, which is expected to be designated GY-682, is targeting a net 200-foot thick Mayaro Sandstone pay interval between 300 and 1,000ft. The well is anticipated to be completed for production immediately after drilling operations are concluded.   Rig#18 will then be moved to the second  planned location.

 

Firestone Diamonds (FDI.L) 52p £164.26m

Firestone has announced the results of the first sale of diamonds recovered from its Liqhobong Diamond Mine (“Liqhobong”). Liqhobong is owned 75% by Firestone and 25% by the Government of Lesotho. The sale was held in Antwerp from 6 to 10 February 2017.

Highlights

  • All 75,936 carats offered for sale were sold
  • Average price of US$107 per carat
  • Total sale proceeds of US$8.14 million

The Company expects to host two sales per quarter. The second sale is expected to be in late Q1 2017 and the Company will update the market on the result of future sales on a quarterly basis going forward.

 

Evgen (EVG.L) 18.5p £13.53m

The clinical stage drug development company focused on cancer and neurological conditions, has signed a services agreement with APTrans to support the ongoing development of lead product, SFX-01.  APTrans is a consortium of drug development companies based in the Biohub at Alderley Park, Cheshire.   “We  are delighted to have found a flexible way to access specialist technical expertise and operational support to complement our existing internal capabilities to support the ongoing development of our lead product, SFX-01. We selected this excellent group of providers as our partners as they have a proven track record of working well together and they are all co-located at the Biohub where we too have a presence.”

 

EG Solutions (EGS.L) 41p £9.3m

FY Jan17 trading update from the back-office workforce optimisation company.  Trading in H2 has been strong, generating record revenues for the six months of not less than £5.69m (H1: £2.50m) and yielding adjusted EBITDA of over £2.0m (H1: loss of £0.89m). Cash of  at least £2.40m. The Board anticipates that the Company’s financial results for the full year will be in line with market expectations on revenues of not less than £8.19m and an adjusted EBITDA of over £1.20m.  Signed several major new contracts with global and signed a new Master Services Agreement with a leading Business Process Outsourcer .

 

Georgian Mining Corp (GEO.L) 8.75p £7.04m

GEO reported significant and near surface intercepts from the first three drill holes of a three phased resource development drilling programme at the 50% owned Kvemo Bolnisi Project (‘KB’) in Georgia. The assay results were not included in the recently published resource of 947k tonnes at an average grade of 0.93% copper (‘Cu’) and 0.15 g/t gold (‘Au’). Therefore, when integrated, these results are expected to result in a material increase in the existing Mineral Resource.  KED011 – 113.7m @ 1.70% Cu from 18.4m to 132.1m. KED008 – 28.6m @ 1.60% Cu and 0.80g/t Au from 47.4m to 76.0m. Targets remain open with results due from 17 more holes.

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own 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, they have not been independently verified and are not guaranteed 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, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on 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, directors, 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, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document 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, directors, 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 UK, 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 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) 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 persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

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 UK or US securities law, or the law of any such other jurisdictions.

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, directors, 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.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
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 enquiries@hybridan.com with “unsubscribe me”.