Small Cap Feast

Small Cap Feast – 18 December 2019

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Dish of the Day:

No Joiners Today


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Eland Oil has left AIM following a takeover by Seplat.


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What’s Cooking in the IPO Kitchen?

NEX Exchange

Greencare Capital  – Investment Vehicle –Hemp, CBD and Medicinal Cannabis . Due 30 Dec. No capital raise.


Breakfast Buffet

Rockfire Resources (ROCK.L) 1.7p £9.65m

  high-grade gold has been intersected in the final two drill holes to test beneath the gold resource at the Company’s 100%-owned Plateau Gold Deposit in Queensland, Australia.

1 m @ 18.4 g/t Au in drill hole BPL012 is the second-highest gold grade encountered in drilling at Plateau;

12 m @ 2.5 g/t Au, including 5 m @ 4.8 g/t Au (from 61 m), in hole BPL012

 10 m @ 2.0 g/t Au, including 4 m @ 4.2 g/t Au (from 65 m), in hole BPL019

Further geophysics is planned to extend the survey completed in November 2019;

These intersections extend the mineralisation at depth and are expected to expand the current resource estimate of 41,000 oz Au

All drill holes in the October 2019 drilling program hit potentially economic gold grades and potentially mineable widths;

Additional reverse circulation (RC) drilling is planned to extend gold mineralisation along strike and at depth.


Agronomics (ANIC.L) 5.625p £14.2m

Agronomics has completed a EUR1m subscription   in Preferred Shares in LegenDairy Foods GmbH. Agronomics will hold a 6.3% interest and has appointed a director representative.

Agronomics co-led the EUR4m  fundraising round of LegenDairy alongside M Ventures, the corporate venture capital arm of science and technology company Merck. CPT Capital also participated in the round. CPT Capital are a long-standing investor in alternative protein technologies, and their portfolio includes Beyond Meat, Impossible Foods, Memphis Meats, Perfect Day and Good Catch.

LegenDairy is a German company focused on harvesting real dairy proteins, using the same fermentation process used for producing insulin and rennet for cheese, to produce dairy products once combined with plant-based fats. LegenDairy was co-founded by Raffael Wohlensinger and Dr Britta Winterberg, with the intention to produce genuine dairy products, without cholesterol and without the need of animals, alleviating animal welfare concerns and providing a simplified supply chain to produce dairy products. LegenDairy is an early stage, pre-revenue company with a historic cash burn rate of approximately EUR16,000 per month.


Ncondezi Energy (NCCL.L) 5.15p £16.74m

Update on its power tariff finalisation and submission process for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique.

      Tariff financial model kick off meetings with strategic partners, advisors and lenders completed in Beijing, China

  • Work programme and allocation of responsibilities for tariff finalisation and submission to Electricidade de Moçambique (“EDM”) agreed
  • Letter of Interest (“LoI”) received from Industrial and Commercial Bank of China (“ICBC”) to provide debt financing for the Project
  • Ncondezi targeting minimum debt financing of 70% of Project capital cost
  • Indicative financing terms expected to be received late December 2019
  • Updated EPC and O&M bids submission schedule on track for first submission late December 2019 with supporting information in early January 2020

  • Tariff submission remains on track for early Q1 2020


  • Target tariff negotiation finalisation expected during H1 2020


Touchstar (TST.L) 30p £2.5m

“Total group revenue is expected to be around £7million, which is below where we had hoped but represents growth from continuing businesses, excluding the recently disposed On-Board division, of approximately 10% year on year. Two factors have negatively impacted our performance. Firstly, there has been a general trend during this final quarter of the year of customers not committing to placing orders due to the political uncertainty in the UK. Secondly there was a negative factor specific to our business.  Whilst we received several large orders, including one which was highly significant, the race for delivery prior to the year-end has been impacted by extended lead times for obtaining stock.”

“These factors will have a knock-on effect to profitability in the current financial year. At both an after tax and pre-tax level performance is expected to be below prior expectations. As a result of these stock delivery issues, the order bank for 2020 is exceedingly healthy at around £800k (compared to £254k at 31st December 2018).  As regards our underlying operational performance, the newly developed products continued to grow and are expected to show strong revenue growth on 2018 – Podstar Haulage around 86% , Podstar Fuel around 13% , and Access Control around 10% “.


Serica Energy (SQZ.L) 123p £328m

Serica has received an Out of Round award of a 100% interest in the UK petroleum licence P2501, blocks 3/24c and 3/29c. These are located in the area adjacent to the Serica operated Rhum field.

The award contains the HPHT North Eigg and South Eigg prospects. The primary prospect is North Eigg which is estimated to contain 360 bcf (P50) and potentially over 1Tcf (P10) of recoverable gas. The North Eigg prospect is interpreted to share many geological similarities with the Rhum field.  It is clearly defined on 3D seismic and forms a structural trap sealed against the East Shetland bounding fault.

Serica has committed to drilling an exploration well within three years and in the event of a commercial discovery intends to develop the field via a subsea tie-back to the Serica operated and 98% owned Bruce facilities.


Open Orphan (ORPH.L) 5.8p £147.8m

 The European-focussed, rare and orphan drug consulting services platform, is pleased to announce the signing of a contract with SFA Therapeutics, a biopharmaceutical company based in Pennsylvania, USA.

This contract sees Venn Life Sciences, part of Open Orphan plc, provide SFA Therapeutics with assistance in the filing of a European Medicines Agency application for Orphan Drug Designation including providing both consulting and regulatory writing services.  It is hoped that this agreement will be the first step in a longer-term relationship between both companies.

The contract is evidence of Open Orphan executing upon its strategy of winning contracts in the fast-growing orphan drug sector and its capability in being able to assist North American companies with their European activities. It is the first time that Venn has utilised Open Orphan’s skills and expertise in filing a EMA Orphan Drug Designation for a North American company which already has a US FDA Orphan


Techfinancials (TECH.L) 1p £0.86m

As announced  on 2 December, the Directors have concluded that it is in the best interests of the Company and its Shareholders to cancel the admission of the Ordinary Shares to trading on AIM and remain listed only on NEX. The Company believes the Cancellation from AIM, with NEX becoming its primary listing, is in the best interest of the business. The Company has taken the decision to make substantial adjustments to its operating structure and cost base while seeking to develop its newer blockchain based businesses.

The considerable cost and time associated with maintaining the Company’s admission to trading on AIM are, in the Directors’ opinion, disproportionate to the benefits to the Company.  With this in mind, the Board considers that NEX is a more appropriate market given TechFinancials’ currently reduced size and its focus on new business streams. The Board also believes that NEX is a more appropriate market for blockchain companies with low revenues. Subject to GM 10 Jan 2020.


RA International (RAI.L) 40p £69.4m

 The  provider of services to remote locations in Africa and the Middle East, has been awarded the second phase of a contract with Cherokee Nation Mechanical, LLC, working on behalf of the U.S. Department of State, to provide construction services at a U.S. Embassy in East Africa. The value of phase 2 is USD 9.1m, bringing the total contract value to USD 10.9m. Phase 1 of the contract has commenced and is expected to be materially complete this year with phase 2 due to complete by the end of 2020.

As a result of the Company’s increased activity, the Board expects to be slightly ahead of full year turnover expectations in 2019, while profitability is projected to be broadly in line with expectations. The Board is also pleased to confirm that the contract backlog remains strong at USD 148m, with approximately USD 55m of this backlog contracted to be delivered in FY 20.


Vast resources (VAST.L) 0.26p £26.7m

Further to the Company’s announcement of 24 October 2019 regarding the Company signing binding documentation with Atlas Capital Markets Limited, the Company continues to progress towards drawdown of Tranche 1 with both parties working together with the intent to effect drawdown before 31 December 2019.


Trakm8 Holdings (TRAK.L) 22.5p £11.24m

The global telematics and data insight provider, is pleased to advise that following a period of stabilised revenues, and with the Group returning to growth it has entered into a £1.4m (net of costs) Growth Capital Loan with MEIF WM Debt LP to fund the potential working capital requirements.  This loan is repayable in instalments by 30 June 2024.

 The Group is also pleased to announce that it has now received its R&D corporate tax credit cash of £1.01m.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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