Small Cap Feast

Small Cap Feast – 18 December 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 921

Total number of AIM Companies trading: 849*
* As at 17 December 2018

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 17 December 2018

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 139*

Total number of Standard List Companies trading: 130*
* As at 17 December 2018

Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due 31 Jan 2019.

AIM

PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised.  Due 21 Dec.  Mkt cap c.£80m

Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer raising £20m at 52p.  Due 19 Dec. Mkt Cap £56.5m.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.

Breakfast Buffet

Sareum Holdings* (SAR.L) 0.57p £17.26m

AGM Statement from the specialist small molecule drug development business.

“Our active development portfolio now comprises three compounds targeting important kinases in diseases for which there remain significant levels of unmet medical need: SRA737 (out-licensed to Sierra Oncology), SDC-1801 and SDC-1802. We have recruited two new Non-Executive Directors, Michael Owen, Ph.D and Clive Birch, each of whom has exceptional experience of direct relevance to your Company as it moves forward. “

SRA 737 “The reprioritising and enlarging of the ongoing Phase 1/2 studies has meant that the publication of clinical trial data is now expected to take place in mid-2019, with Sierra suggesting that these data will be submitted for presentation at the ASCO annual conference at the end of May/early June. “

TYK2 “We have commenced formal preclinical programmes for each compound with a view to entering the clinic in each of the indications in 2020. Additional research is ongoing to refine the clinical plans. In the meantime, the data arising from some of the work leading to the compound selection are being prepared for submission to a peer-reviewed publication and a conference presentation.”

 

Integumen* PLC (SKIN.L) 0.51p £2.30m

Today the Company announced the divestment of TSpro GmbH, a wholly-owned subsidiary of Integumen plc. The Company has entered into a conditional agreement with MediNova AG, a company in which former Integumen director Helmut Schlieper is a shareholder and director. The consideration for the Disposal is €1. The Disposal will remove from the Group 0.44m of current liabilities and a further 0.9m of contractual obligations up to Dec 2020.  

In the most recently completed financial year for which audited accounts are available, the year ended 31 Dec 2017, TSPro incurred a loss of €0.91m (£0.8m) on turnover of €0.21m (£0.19m). As at 31 Dec 2017 the net liabilities of TSPro were €0.89m (£0.79m) . The value attributable to TSPro’s intangible assets was permanently impaired by £3.5m to a carrying value of £0.75m in Integumen’s consolidated accounts for year ended 31 Dec 2017. Since that time TSPro has posted (unaudited) losses of €0.188m (£0.16m) after currency translation difference) in the 6 months ended 30 June 2018, on (unaudited) turnover of €0.108m (£95,307), and a further permanent impairment of £0.5m was accounted for in the Interims.

 

Coinsilium Group (NEX:COIN.L) 3.55p £4.5m

Coinsilium Group, the blockchain venture builder, advisor and investor that finances and manages the development of early-stage blockchain technology companies, announced an important development for its investee company StartupToken Ltd in which Coinsilium announced in Nov 2017 that it had acquired a 30% holding.

In Nov 2017 Coinsilium announced it had acquired a 30% holding in StartupToken Ltd at a valuation of circa £1.2m;

StartupToken is a Gibraltar-registered hyper accelerator helping entrepreneurs in the blockchain space to grow their projects into successful startups;

Blockwater Capital, a leading South-Korea digital asset investment fund, and one of the world’s major investment funds in blockchain, has now acquired 7.4% of StartupToken for total consideration of £0.19m valuing StartupToken at £2.6m;

Coinsilium welcomes this investment in StartupToken from Blockwater, who share a complementary investment approach to Coinsilium as illustrated by previous co-investments in RSK Labs (now RIF Labs) and Bundle Network;

The implied valuation of StartupToken on the Blockwater investment, at £2.6m, represents a 116% increase on Coinsilium’s own investment in Nov 2017;

As a result, Coinsilium’s seed capital investment in Nov 2017 of £0.36m, is now worth £0.72m, an increase of 100% compared to the original investment.

 

Thor Mining (THOR.L) 1.5p £10.4m

The Board of Thor Mining advised that proof of concept has been established for Insitu-Recovery of copper at the Kapunda Copper Project, in partnership with Environmental Copper Recovery SA Pty Ltd (“ECR”).

The Kapunda Copper project, in which the Company has a right to earn into a 45% effective interest, holds an inferred JORC compliant resource of 119,000 tonnes of copper, as per the maiden resource estimate announced in Feb 2018 by Thor Mining (in partnership with Environmental Copper Recovery SA Pty Ltd (“ECR”)) and Terramin Pty Ltd (ASX: TZN).

The Kapunda project follows a typical series of well-defined project development steps with each step being a “go, no-go” decision point.  The Proof of Concept of Insitu-Recovery (ISR) for the project is a significant step forward in the project development process.

Positive Initial hydrogeological assessment and water sampling completed;

Construction of the necessary technical models of geology, ore grade, copper species distribution, and fracture density;

Initial hydrogeological computer modelling which suggests that flow through the ore body is possible and the geology is amenable for ISR;

Successful completion of preliminary laboratory work, and determined the copper species present are recoverable;

Stage 2 work commenced

 

Scientific Digital Imaging (SDI.L) 35.75p £30.92m

Scientific Digital Imaging, the group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications, including life sciences, healthcare, astronomy, manufacturing and art conservation, announced its unaudited interim results for the six months ended 31 Oct 2018.

Revenue increased by 23% to £8m (H1 2017: £6.55m)

Revenue growth driven by organic (11%) and acquisitions (12%); organic revenue growth notably at the Atik Cameras and Sentek divisions with growth from acquisitions delivered by Applied Thermal Controls, Quantum Scientific Imaging and Fistreem

Adjusted operating profit increased by 31% to £1.5m (H1 2017: £1.1m)

Adjusted PBT increased by 32% to £1.5m (H1 2017: £1.1m)

PBT increased by 42% to £1.2m (H1 2017: £0.85m)

Cash generated from operations increased by 103% to £1.5m (H1 2017: £0.76m)

In Sept 2018, SDI acquired Fistreem International for consideration of £756,000

 

President Energy (PPC.L) 9.57p £101.60m

President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, provided an update relating to the Puesto Flores Concession in Rio Negro Province, Argentina (President 90% and operator – EDHIPSA 10%).

PF0 1005, the third and final new well in the current drilling programme has been successfully drilled, logged, cased and cemented to 2,360 metres on time and budget

Both primary and secondary targets have displayed 18 metres of net oil pay to be perforated in line with pre-drill expectations

The drilling rig is now being demobilised and testing and completion with the workover rig will commence towards the end of this week

The well is anticipated to come on production at or around New Year

 

Ubisense Group (UBI.L) 68p £49.70m

Ubisense Group announced that, in connection with the conditional Sale of the RTLS SmartSpace business and the renaming of the group to IQGeo Group plc announced on 21 Nov 2018, approval of the German Federal Cartel Office to the Sale has been received.

Accordingly, the only remaining condition for the Sale transition is the completion of the restructuring of the Group to separate the RTLS SmartSpace business as set out in the circular. Completion of the Sale is expected to take place on 31 Dec 2018, after which it is expected that the shares of the Company will trade under the new name IQGEO Group Plc and the ticker (TIDM) “IQG” from 3 Jan 2019.

 

easyHotel (EZH.L) 6.5p £126.25m

easyHotel, the owner, developer and operator of “super budget” branded hotels, announced that a planning application has been submitted for the development of a 209-room easyHotel, close to Paris-Charles de Gaulle Airport, France. The Group has signed an exclusive letter of intent with Groupe ADP (owner and operator of the three main airports in the Paris region and operator of a network of 26 airports worldwide) for an operating lease agreement for the hotel. The final agreement is subject to planning permission being granted and full legal documentation being agreed.

The new-build hotel, to be developed by Linkcity, is anticipated to open in the 2020/21 financial year. The site is within the Charles De Gaulle Airport perimeter, the second largest airport in Europe with around 70 million passengers a year. It is also a short distance from the Aeroville shopping centre which includes over 200 shops, 30 restaurants and a 12-screen cinema complex as well as Paris Nord Villepinte, the largest convention centre in France.

 

Draper Esprit (GROW.L) 545p £539m

Draper Esprit, a leading venture capital firm investing in and developing high growth digital technology businesses, announced a further $12m (£9m) investment in Graphcore as part of a $200m series D funding round, valuing Graphcore at $1.7bn. Other strategic investors in the round include Microsoft and BMW.

As a result of the valuation at which this latest funding round was completed, the Fair Value of the Company’s investment in Graphcore has increased NAV per share by approximately 29p.

Graphcore has built a completely new kind of processor and software specifically designed for machine intelligence. It has generated its first revenues this year, just two years after the company was founded. Headquartered in Bristol (UK), with offices in London (UK), Oslo (Norway), Palo Alto (USA) and Beijing (China), Graphcore has raised over $300m in funding to date.

 

Sunrise Resources (SRES.L) 0.1p £2.4m

Sunrise Resources announced that it has now been issued with a further 50,000 shares in TSX-V listed VR Resources Ltd (“VRR”) following the start of drilling on the Junction Copper-Silver-Gold Project in Nevada, USA, bringing the total number of shares in VRR held by the Company to 100,000.

VRR has issued the shares to the Company in part consideration of the acquisition of the Junction Copper-Silver-Gold Project as announced on 30 Aug 17.

Under the terms of the Company’s agreement with VRR the issue of shares became due on the start of drilling and a further 250,000 shares are due to the Company in the event that VRR completes a 43-101 compliant mineral resource estimate for the Junction Project.

Sunrise also holds a 3% net smelter return royalty interest in the original 15 claims sold to VRR and all additional claims staked by VRR within a 2-mile radius.

Details of the proposed drill programme to test the Denio Summit target were given in the Company’s announcement of 7 Nov 18

Head Chef:

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

*A corporate client of Hybridan LLP

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