Small Cap Feast

Small Cap Feast – 14 June 2019

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


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

GAN (GAN.L) 71.5p £59.2m

GAN, an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, welcomes the signing and legalization of internet sports betting in New Hampshire. New Hampshire is the 14th State to legalize sports wagering in the US and the sixth to do so this year. Following the launch, nearly 21% of the total US population will be able to place sports wagers online.

The sports betting legislation received approval in the New Hampshire House yesterday, June 13th. The  bill will now go to the Governor, who has already included sports betting revenue in his state budget and is expected to sign the bill within the next three to four weeks.

Hutchison China MediTech (HCM.L) 430p £2,788.29m

Hutchison China MediTech Limited announced that the independent Data Monitoring Committee (“IDMC”) of the Phase III pivotal study of surufatinib in advanced neuroendocrine tumors – extra-pancreatic (“SANET-ep”) has completed a planned interim analysis. The IDMC determined that the study has already met the pre-defined primary endpoint of progression free survival (“PFS”) and as a result the study will be stopped.

Chi-Med will now arrange for a pre-New Drug Application (“NDA”) meeting with the China National Medical Products Administration (NMPA) to discuss the preparation of the NDA for surufatinib for this indication. We intend to submit the results of the SANET-ep study for presentation at an upcoming scientific conference.

Biome Technologies (BIOM.L) 370p £8.04m

Biome Technologies, a leading bioplastics and radio frequency technology business, announced that commercial production of Biome’s new heat stable material has commenced in the USA. This material has a range of applications, including the previously announced projects for disposable cutlery and a rigid ring for the coffee pod market.

Revenues for this new material are now expected to commence imminently for use in the cutlery application. Revenues for the rigid ring application are anticipated to follow in the second half of the year once final testing has been completed.

The Board now expects revenues for the Bioplastics division for Q2 to be approximately £0.75m (Q1 2019: £0.6m; Q2 2018: £0.5m).

Pennant International (PEN.L) 87.5p £31.78m

Pennant International, the supplier of integrated training and support solutions, products and services which train and assist operators and maintainers in the defence and regulated civilian sectors, announced that Philip James Cotton has been appointed as a new NED of the Company with effect from 14 June 2019.

Mr Cotton, a Fellow of the Institute of Chartered Accountants in England and Wales, is a former KPMG partner with extensive experience of working with businesses in the defence and aerospace sectors (with audit clients including various BAE Systems group companies, Agusta Westland (now Leonardo Helicopters), Airbus UK, Eurocopter UK (now Airbus Helicopters), Rotork and VT Group).

Mr Cotton is currently the Chair of Governors of Solent University and also chairs the Audit Committee of World Sailing.

Mr Cotton will chair Pennant’s Audit Committee.

Asiamet Resources (ARS.L) 4.5p £53.8m

Asiamet Resources announced an updated 2019 Mineral Resource Estimate (“MRE”) for the Beruang Kanan Main (“BKM”) copper deposit located in Central Kalimantan, Indonesia.  Asiamet holds a 100% interest in BKM project through its operating subsidiary PT Kalimantan Suraya Kencana (PT KSK).

BKM is a Feasibility Stage high-quality copper deposit outcropping at surface

BKM 2019 Mineral Resources (JORC 2012) at a 0.2% Cu cut-off grade comprise;

Total Resources of 69.6Mt @ 0.6% Cu for 451.9k of contained copper:

20.6Mt @ 0.7% Cu for 148.5kt of contained copper in Measured Resource

34.1Mt @ 0.6% Cu for 212.6kt of contained copper in Indicated Resource

15Mt @ 0.6% Cu, for 90.8kt of contained copper in Inferred Resource

Updated Mineral Resources underpin Initial Ore Reserve Estimate for the BKM Feasibility Study

Resources are amenable to heap-leach Solvent Extraction Electro Winning (SX-EW) to produce copper cathode

Deposit remains open laterally and at depth.

Potential for further growth through drilling to expand the Resource envelope and upgrade the Resource confidence in several areas

Cerillion (CER.L) 153p £40.8m

Cerillion, the billing, charging and customer relationship management software solutions provider, announced that it has secured a major contract worth an initial £5.1m with the Danish telecom and utility company, SE Group. This new win, reflecting the Company’s trend towards larger deal sizes, supports existing market forecasts.

The contract covers the supply and installation of Cerillion’s Enterprise BSS/OSS* suite. A significant proportion of revenue will be recognised in the current financial year, reflecting the software licence element of the contract, and the initial implementation will be delivered over the next 12-18 months. As with other new customer wins, Cerillion sees the potential for additional revenues to be generated as the relationship expands over time.

SE Group provides telecoms and TV services through its two brands, Stofa and Boxer. The Group holds a strong position within Denmark as the nation’s second largest provider of broadband and television.

Frontier IP (FIPP.L) 78.75p £33.1m

Frontier IP, a specialist in commercialising university intellectual property, noted the following announcement from portfolio company Exscientia, a world leader in AI drug discovery, that it has entered into a drug-discovery partnership with GT Apeiron Therapeutics.

GT Apeiron is a Shanghai-headquartered biotechnology drug-discovery platform launched with $27m backing from GT Healthcare Capital Partners, a life sciences-focused private equity partnership. GT Healthcare is also an investor in Exscientia.

As part of the agreement, Exscientia is entitled to become a shareholder in GT Apeiron as well as receiving milestones and royalties based on the clinical and commercial success of each programme.

GT Healthcare invested in Exscientia as part of a Series B financing round, which raised $26m to scale up the Company’s pipeline and advance selected programmes towards clinical development. Further details were announced by Frontier IP on 7 Jan 2019.

Exscientia’s existing partnerships include collaborations with Celgene, GSK, Roche, Sanofi and Evotec.

Frontier IP holds a 3.32%  stake in the Company.

Mporium Group (MPM.L) 0.94p £7.94m

Mporium Group, the technology firm delivering event-driven marketing, announced that it has conditionally raised a total of £1.923m by way of subscription, mainly from existing investors, at an issue price of 1p per Subscription Share.

The Company announced that it had conditionally raised £1.5m by way of subscription in its announcement on 11 June 2019. Subsequently, the Company has accepted additional conditional subscriptions on the same terms, totalling £0.423m  prior to close of business on 13 June 2019. As part of these additional conditional subscriptions, both Tom Smith and Allay (UK) Ltd, have both invested.

Upon completion of the Subscription, the subscribing investors will also receive 192,300,000 warrants exercisable between 10 Dec 2019 and 10 Dec 2021 with a subscription price of 1.5p per Warrant, the terms of the Warrants to be finalised and agreed with the relevant parties prior to Admission.

The net proceeds of the Subscription will be used to restructure the business and to provide working capital.

St Peter Port Capital (SPPC.L) 7.75p £4.98m

St Peter Port Capital Limited, the investment company announced its final audited results for the year ended 31 March 2019.

Investments in 6 companies at year end valued at £10.4m (2018: 7 companies at £12.1m)

NAV of 17.21p per share at 31 March 2019 (2018: 20.66p), down 16.7% on the year as a result of write-downs to carrying values.

FX movements during the year contributed 1.2p, equivalent to 7% of the NAV per share at the year-end.

£756,000 in cash at year end. Cash as at 12 June 2019 £634,000.

Further annual cost savings of £340,000 achieved during the year

Arricano Real Estate (ARO.L) 0.53p £42.7m

Further to the announcement dated 14 Aug 2018 detailing the TAS Loan Agreement with the Company’s wholly owned subsidiary Livoberezhzhiainvest PJSC (“LBI”), Arricano (AIM: ARO) announced that the amount available to LBI for drawdown under the TAS Loan Agreement yesterday has increased by $4m to $20m. The funds will be used for general corporate and working capital purposes.

All other substantial commercial terms of the TAS Loan Agreement, as detailed in previous announcement, remain the same.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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