Small Cap Feast

Small Cap Feast – 17 September 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 880

Total number of AIM Companies trading: 797*
* As at 16 September 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 87*
* As at 16 September 2019

Set Menu Standard List:

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

Total number of Standard List Companies trading: 144*
* As at 16 September 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?

AIM

AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019

Main Market Standard

VAALCO Energy, Inc. (NYSE: EGY), an independent energy company focused on development and production assets in West Africa, today announces its formal intention to seek a Standard Listing on the Main Market of London Stock Exchange (“LSE”), to complement its existing Listing on the New York Stock Exchange.

Kaspi.kz, the largest Payments, Marketplace and Fintech Ecosystem in Kazakhstan with a leading market share in each of its key products and services, announces today the expected publication of a registration document that has been submitted for approval to the FCA and its potential intention, subject to market conditions, to undertake an initial public offering .

Main Market premium

Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators  in five African growth economies.  Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019.

Breakfast Buffet

TMT Investments* (TMT) 4.17p £98m

TMT Investments PLC, the venture capital company investing in high-growth, technology companies across a number of core specialist sectors, announced its unaudited interim results for the half-year ended 30 June 2019.

Highlights

NAV per share of US$3.66 (uplift of 18.45% from US$3.09 as of 31 December 2018)

US$29.5m in positive revaluations from Backblaze, Taxify, PandaDoc, Workiz and eAgronom

Many portfolio companies continue to experience rapid growth, with three new investments made during the period

Post period end

Following profitable cash exit from Wrike, Inc. at the end of 2018, the Company declared and paid a special dividend of US$5.8m (US$0.20 per ordinary share) during July 2019

Completed a further four new investments and remain well funded to continue to expand and support the Company’s investment portfolio

MS International (MSI) 197p £33m

“It is most disappointing to report, though not surprising, that the Company is not immune to the negative impact of the widespread global economic uncertainty. As reported in the last Chairman’s results statement, these are proving to be ‘interesting times’.

Across the four divisions we are seeing a progressive reduction in demand for both our products and services. Of particular significance is the significant slowdown and delays in the awarding of UK defence related contracts, following requests for tender submissions. Delays in anticipated contract awards, by their very nature, engender costly uncertainty and concern particularly when being the only genuinely qualified potential supplier.  Unfortunately, responding to customer invitations to submit a comprehensive tender and then failing to award a contract is becoming an increasingly frustrating feature of our domestic defence business.”

St James House (SJH) 58p £1.81m

The Board of Directors of the Company to provides the following trading statement and update on recent developments.

Payments Division

The new corporate client for the pre-paid card programme announced on 9 July 2019, continue with the production of their cards, however this is behind the original timetable as designs for cards and related services are waiting for card scheme commercial approvals.  To date, no cards had been issued to end-users under this programme.

Good progress has been made with the roll out of new services for EUR, GBP and USD based accounts beginning the week commencing 16 September.

Play Division

The Lottery business remains on target to make a positive operating contribution to the Group for the second half of the year to 31 January 2020.  There is no update for PPS Blockchain Ltd, the lottery joint venture announced on 8 March 2019.

Aquis Exchange (AQX) 475p £m

HY Jun 19 results.

Revenue increased 165% to £3.4m

EBITDA loss of £0.16m (HY 20183: £1.6m loss)

Cash and cash equivalents at 30 June 2019 of £11.2m

Trading Members on Aquis Exchange grew from 27 to 29 during the six month period

Market share of overall pan-European continuous trading grew over the period to 4.8% 2Q19 (3.8% 4Q18), with the share of available liquidity also increasing

Through its French subsidiary, Aquis became the first MTF to achieve dual-trading status in European equities, in preparation for Brexit

Successful deployment of several technology implementations

Post period ·      Agreed acquisition of the NEX Exchange subject to FCA approval, marking entry into Primary Listings

Current trading in line with market expectations for FY19

Karelian Diamond Res. (KDR) 3.2p £1.24m

Karelian Diamonds announced that, further to the announcement released by the Company on 15 July 2019, the Company has appointed Howard Bird as a non-executive director of the Company with immediate effect. Mr. Bird will also continue in his role as a geo-science consultant to the Company.

Mr. Howard Bird is an internationally experienced Professional Geoscientist (diamonds, gold, platinum and base metals) and has over 30 years’ diverse junior and senior mining company exploration, development and mining experience, including over 15 years at senior executive management level.

Mr. Bird has a strong background in both European and North American marketing, capital financings, mergers and acquisitions, and joint-ventures. He has a proven track record contributing to significant company value added growth with grassroots exploration discovery success, development and production of highly profitable kimberlite diamond deposits.

Arix Bioscience (ARIX) 119.9p £162.53m

Updates from portfolio company Amplyx Pharmaceuticals. Positive preliminary data from ongoing APX001 (fosmanogepix) Phase 2 study in candidemia . The Data Review Committee (DRC) and Data Safety Monitoring Board (DSMB) have reviewed data from the first ten patients. The DRC adjudicated that fosmanogepix demonstrated a high level of treatment success at the end of study drug treatment. Treatment success is defined as clearance of Candida from the blood, patient is alive following treatment, and having received no other systemic antifungal therapies following initiation of study drug. The DSMB recommended that the study continue according to the protocol.  Amplyx also announced that it has executed an exclusive worldwide license agreement with Novartis under which Amplyx has acquired the rights to the Phase 2 anti-BK virus (BKV) monoclonal antibody, MAU868, for the treatment and prevention of BKV disease.

Shearwater Group (SWG) 1.82p £40.34m

Shearwater Group plc, the organisational resilience group, announces that its group company, Pentest has secured a one-year contract with a global technology corporation worth in excess of US$1m. At the same time, Xcina Consulting, another Shearwater group company has also signed a ‘Master Consulting Agreement’ and become a preferred supplier to the same organisation.

Under the terms of the contract, Pentest will deliver a framework for the provision of vulnerability assessment and penetration testing services to the organisation. This will form a key function within the organisation’s global cloud technology infrastructure.

Through penetration testing, Pentest will perform an in-depth investigation into the organisation’s resilience with the aim of uncovering any IT security vulnerabilities.

Arc Minerals (ARCM) 3.17p £22.75m

Arc Minerals Limited provides an update on the recently completed infill soil sampling programs over the Lumbeta and Muswema target areas located within the 872 km2 Zamsort and Zaco exploration license areas in the Domes Region of the North Western Province in Zambia

Highlights:

Analysis of 8,100 soil samples at both target areas completed

Up to 1,793ppm Cu analysed in the soils at Muswema

Circa 4km long soil anomaly confirmed at both Muswema and Lumbeta

Additional anomalies result in both target areas split into a further three zones

Drill rigs en route to each target and maiden drill programme to commence imminently

Drilling continues at Cheyeza where visible sulphide mineralisation has just been observed

New targets confirm a larger mineralised system

Block Energy (BLOE) 7.45p £29.32m

Block Energy Plc, the exploration and production company focused on the Republic of Georgia, announced that Mr William McAvock, FCCA, has been appointed as Chief Financial Officer and a Director of the Company’s Board, having previously acted as Finance Manager since 13 May 2019.

Bluejay Mining (JAY) 9.02p £77m

Bluejay Mining plc, the AIM and FSE listed Greenland focused company, announced the formal lodgement of its exploitation licence application for the Dundas Ilmenite Project to the Mineral Licence and Safety Authority, Greenland.

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 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 enquiries@hybridan.com with “unsubscribe me”.