Small Cap Feast
Small Cap Feast – 14 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: 97*
* 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
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
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?
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
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.
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”.