Small Cap Feast

Small Cap Feast – 15 May 2019

Dish of the Day:

Finablr (FIN.L)— Main mkt premium.  the global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions (B2B and B2C) has raided £306m (half primary and half vendor selldown) at 175p. Mkt Cap £1.2bn.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

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. Expected 11 June 2019

Pure Gold—  TSX listed seeking a London listing. Focused on Madsen Red Lake Gold Deposit.  Feasibility Study outlines a robust 12-year, high grade, 800 tonne per day underground mining operation with low initial capital cost of C$95mm and strong financial performance with an after-tax NPV of C$247mm . Introduction only at this point Mkt cap CA£138m.

Main Market (Specialist Funds)

Riverstone Credit Opportunities Income  – raising US$200m—will seek to generate consistent shareholder returns predominantly in the form of income distributions principally by making senior secured loans to energy-related businesses. Due 24 May


Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC,  expected 29 May 2019.

Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

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

Nex Exchange

SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions.  Offer TBA.

Rumours and Speculation

According to Reuters — Walmart, the world’s biggest retailer, said it is considering a stock market listing for its British supermarket arm Asda, whose attempt to combine with rival Sainsbury’s was blocked by the UK regulator last month.


Breakfast Buffet

Elektron Technology (EKT.L) 44.1p £82.1m

Acquisition of NEXT Control Systems for a cash consideration of £10.5m, inclusive of £1.7m of cash in Next as at the date of completion. The price represents a multiple of 6.6x 2018 EBITDA and the deal is expected to be immediately earnings accretive for Elektron.

Next is an excellent strategic fit for Checkit, providing technology and software that enables management teams to monitor, control and optimise business processes. Next will be combined with Checkit to create a global leader in the field of real-time operations management.

This is a transformational deal for Checkit, immediately adding scale and one which the Board believes will significantly accelerate the path to profitability at Checkit.


Ten Lifestyle Group (TENG.L) 67p £50.9m

“Ten Lifestyle Group, a leading technology-enabled lifestyle and travel platform providing luxury concierge services to private and corporate clients, announced the creation of a short story by award-winning actor and author, Ben Moor. Ten commissioned the story to bring to life its business and vision in a way that cuts through the limitations of being a listed business to inspire prospective investors with the Company’s potential.

Ben has brought to life Ten’s services via four characters that live in the near-future where daily life such as travel, living, entertainment and dining are all organised and anticipated by Ten’s concierge services.

The video and short story can be found here:


Clinigen Group (CLIN.L) 1012p £1.34bn

The global pharmaceutical and services company and Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX, ‘Cumberland’), a US specialty pharmaceutical company, have mutually agreed to transition the marketing, promotion, and distribution of Ethyol® and Totect® in the US to Clinigen from Cumberland.

The acquisition of the US rights to Proleukin® in April 2019 formed the foundation of the Group’s plans to expand its existing footprint in the higher value US market by building out its commercial infrastructure. This agreement with Cumberland is the next step in Clinigen’s Commercial Medicines strategy. Following the completion of the transition of Ethyol and Totect later in the year, the Group will have direct control of all three of its oncology products currently available in the US.


GAN (GAN.L) 57p £48.5m

The award-winning developer and supplier of enterprise-level B2B Internet gaming software, services and online gaming content in the United States, welcomes the signing and legalisation of sports betting in Iowa, including state-wide use of mobile and internet wagering. Iowa is the 11th State to legalise sports betting in the US and the third to do so this year.  

With 19 casinos eligible to offer sports betting in the State of Iowa and a population of 3.2 million, the number of Americans who will be permitted to bet on sports online materially increases. GAN is strongly positioned to serve Iowa’s casino operators and anticipates servicing one or more land-based casino in the state in 2019.


Serabi Gold (SRB.L) 30p £17.7m

Q1 results from the Brazilian focused gold mining and development company,

EBITDA for the first quarter of $4.3m up 47% on the same quarter in 2018

Profit after tax of $1.5m with earnings per share of 2.63 cents.

Cash holdings at the end of March 2019 of $12.1m an increase of $2.9m since the end of 2018.

Production guidance for 2019 is maintained in the range of 40,000-44,000 ounces representing a significant improvement on 2018 production of 37,108 ounces.


Savannah Resources (SAV.L) 5.5p £48.5m

Aldeia Delivers Highest-Grade Lithium Mineralisation to Date Including 22m @ 2% Li20.

RC drilling at Grandao also identified additional near surface extensions to the existing mineralisation.

“Results from recent workflow have continued to solidify Mina do Barroso’s status as Western Europe’s most significant new spodumene lithium discovery positioning Savannah as a key strategic player in Europe’s upstream lithium value chain”.


Keras Resources (KRS.L) 0.33p £7.44m

Announcement released by Calidus Resources Limited (ASX:CAI) in which it currently holds a c.32.3% interest, regarding an update at the Warrawoona Gold Project in the Pilbara of Western Australia

On track to complete Pre-Feasibility Study (‘PFS’) at the Project in July 2019

Low capex, simple layout and processing route indicated

Open pit mine design based on a base load of a single 2km-long open pit at Klondyke

Underground investigation below the Klondyke open pit commenced

Geotechnical investigations completed


600 Group (SIXH.L) 14.14p £15.99m

The diversified industrial engineering company announced the launch of its new European Technology Centre, near Halifax, West Yorkshire.

The new facility marks a step forward for the Group as it seeks to create a more flexible platform from which to leverage the strength of the Group’s brands and grow the business into diversified niche markets internationally.

Product innovation is central to the Group’s strategy as it seeks to underpin organic growth through a strong focus on product development, including launching new products that add to the higher end capabilities of the Group’s product range.”


Scientific Digital Imaging (SDI.L) 54.7p £53.2m

FY Apr Update from the group focused on the design and manufacture of scientific and technology products.

The Group expects full year revenues to be in excess of £17m; moderately ahead of expectations, with good momentum from the businesses already in the portfolio at the start of the financial year. The newly acquired businesses; Fistreem, Thermal Exchange , Graticules Optics  and MPB Industries, have delivered a contribution in line with our expectations.

Divisional gross margins remain in line with expectations. With some moderate additional investment made in the Group to support future growth, the Company expects to report adjusted* and reported PBT in line with current expectations.


Arena Events (ARE.L) 40p £61m

Confirmation that the 2019 PGA Championship at Bethpage New York starting tomorrow marks the start of their new 7 year contract, as previously announced, which has been expanded to include tiered seating.  This is an extension of the contract awarded to the Group in 2017 to supply temporary structures and flooring. The contract also includes the Seniors and Woman’s Championships each year. For 2019 the KitchenAid Senior PGA Championship is at Oak Hill Country Club in Rochester, NY, and the KPMG Women’s PGA Championship is at Hazeltine National Golf Club in Chaska, MN. Additionally, the contract covers the supply of products and services for the 2020 Ryder Cup at Whistling Straits in Kohler, WI, as well as the 2024 Ryder Cup at Bethpage State Park (Black Course) in Farmingdale NY.  In total, the agreement will cover the next 21 PGA of America Championships plus the two Ryder Cups contested on U.S. soil.  The Group already provides tiered seating to many large-scale events around the world through its other two divisions.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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