Small Cap Feast

Small Cap Feast – 16 August 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 884

Total number of AIM Companies trading: 800*
* As at 12 August 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 12 August 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 166*

Total number of Standard List Companies trading: 144*
* As at 12 August 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Breakfast Buffet

Cello Health PLC (CLL) 128p £135.79m

Cello Health plc, the healthcare-led advisory group, announced the acquisition of the trade and assets of Innovative Science Solutions, LLP .

Founded in 2000 by Steven M. Weisman PhD and David H. Schwartz PhD, ISS is a scientific consulting firm specialising in strategic counsel and regulatory support for the healthcare industry in the US. Over that period, it has helped many clients successfully navigate FDA advisory committee meetings. The business also supports healthcare related clients with data provision in mounting legal defence around patent and intellectual property issues. The company is based in Morristown, New Jersey, USA, and employs approximately 10 staff.

Initial consideration of $6.4m is payable in cash, and will be funded from the Company’s existing cash and debt facilities. Further cash consideration for surplus working capital will be paid to the vendors on a dollar for dollar basis. In addition, deferred consideration of up to $4.1m will be payable in four tranches, each dependent on financial performance over the periods from 1 August 2019 to 31 July 2024.

Corero Network Sec. (CNS) 3.4p £25.33m

Corero the AIM listed network security company, provides an update on trading for the six months ended 30 June 2019 and outlook for the full year ending 31 December 2019.

Revenue for the six months ended 30 June 2019 is expected to be approximately $4.2m (H1 2018: $5.0m). Revenue in the first half has been impacted by a lower than expected conversion of the Juniper pipeline of opportunities into orders and revenue.

Operating costs for the six months ended 30 June 2019 are expected to be approximately $5.3m (H1 2018: $5.3m). Following the appointment of Michael Connolly as Vice President of Worldwide Sales in June 2019, Corero plans to increase investment in the Company’s sales function in the second half of 2019 to deliver on the Company’s revenue growth plan.

The EBITDA loss for the six months ended 30 June 2019 is expected to be approximately $2.0m (H1 2018: EBITDA  loss $1.4m).

Cash at bank as at 30 June 2019 was $6.9m (2018: $9.0m) and debt was $3.2m (2018: $4.0m) resulting in net cash of $3.6m (2018: $5.0m).

LightwaveRF PLC (LWRF) 7.25p £8.27m

LightwaveRF the leading smart homes solutions provider, announces firm and conditional placings and subscriptions.

Transaction Highlights

Firm Placing and Firm Subscription to raise approximately £1.1m through the issue of 15,806,811 new Ordinary Shares, in aggregate, to new and existing investors at 7 pence per share

Conditional Placing and Conditional Subscription to raise a minimum of approximately £0.2m through the issue of a minimum of 2,764,617 new Ordinary Shares, in aggregate, to existing investors at 7 pence per share subject to Shareholder approvalThe Placings are being conducted by way of an accelerated bookbuild to raise gross proceeds of a minimum of £0.7m, in aggregate, with the bookbuild to commence immediately following this announcement

New Ordinary Shares to be issued at 7 pence per share which represents a discount of 11.2 per cent. to the Closing Price of 7.88 pence on 15 August 2019

Real Good Food PLC (RGD) 6.88p £7.20m

Real Good Food plc, the diversified food business, today announces its final results for the year ended 31 March 2019.

Financial highlights

Revenue from continuing businesses decreased by 3.4% from £63.8m to £61.6m.

Adjusted EBITDA of £1.9m compared to a loss of £0.3m in the prior year, despite the 3.4% decline in revenue.

The two continuing divisions, Cake Decoration and Food Ingredients are profitable (before impairment charges) and cash generative; total divisional adjusted EBITDA of £5.8m before central costs.

Central costs have been materially reduced during the year by £1.3m.

Goodwill has been impaired by £18.7m (2018: Nil), to reflect the value today of the continuing businesses.

Bank term debt has been repaid; the invoice discount financing materially reduced

Net debt at 31 March 2019 stood at £35.7m (2018: £37.8m), being predominantly shareholder loans, of which £9.6m is in the form of convertible loan notes.

So far, the performance of each of the businesses is well aligned with the board’s expectations and central costs are also in line. 

Pendragon PLC (PDG) 11.02p £150m

Pendragon announces that it agreed on 15 August 2019 to dispose of the trade and assets of its Chevrolet motor vehicle dealership located in Puente Hills, California. The dealership subject to the Transaction forms part of the Company’s overall US Motor Group.

In relation to the Transaction, the purchaser of the business is Scott Biehl ,the operator of a privately owned dealership group. The consideration for the Transaction is expected to be approximately £17.2m, to be satisfied entirely in cash payable at completion, with the precise amount being determined following the preparation of completion accounts in respect of the Transaction.  As at 31 December 2018, the gross assets that are the subject of the Transaction amounted to £42.0m and the loss prior to central costs amounted to GBP £0.6m.  The proceeds of the Transaction will be initially used to reduce net debt.  Completion of the Transaction is subject to a number of conditions, including, inter alia, the purchaser securing funding approval.

Equals Group PLC (EQLS) 110.5p £181.72m

Equals Group PLC, the e-banking and international payments group, announced a Placing and Open Offer to raise up to £16m before expenses.

Transaction highlights:

Placing with new and existing institutional investors to raise £14m (before expenses)

Open Offer with existing Qualifying Shareholders to raise up to an additional £2m (before expenses)

Proceeds of the Fundraise to accelerate corporate offering, facilitate market consolidation through bolt-on acquisitions and provide growth working capital

Positive trading continues in-line with market expectations

AfriTin Mining Ltd (ATM) 3.2p £19.65m

AfriTin Mining Limited a tin mining company with assets in Namibia and South Africa, announced that the Company has agreed a £2.4m working capital facility with Nedbank Namibia (“Nedbank”). “This Facility will enable the technical team to focus on a successful ramp-up in order to achieve the design capacity of the Phase 1 Pilot Plant as the Company transitions into cashflow. “

Predator O&G Hldgs (PRD) 4.70p £4.95m

Financial Highlights:

Loss from operations reduced to £0.512m (2018: full year Loss of £0.792m).

Cash balance, at period end of £0.728m (2018 year end: £1.326m). A further £1.18m (US$1.5million) held as restricted cash.

On 15 February 2019 raised £1.5m by the issue of Convertible Loan Notes to Arato Global Opportunities LLC to fund a returnable bank guarantee required in respect of the work programme on the Guercif licence in Morocco, and for general working capital purposes.

On 19 March 2019 Predator Gas Ventures Limited was awarded the Guercif Petroleum Agreement in Northern Morocco by ONHYM which includes the Moulouya Tortonian Prospect and is being prepared for early drilling. During the period £350,000 of the Loan Notes have been redeemed by conversion into 5,110,803 ordinary shares.

Head Chef:

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

*A corporate client of Hybridan LLP

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