Small Cap Feast

Small Cap Feast – 19 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:

Litigation Capital Management (LIT.L  AIM)—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer raising £20m at 52p.  Mkt Cap £56.5m. Profitable and cash generative – LCM delivered its strongest returns of the last 3 financial years, with a profit before tax of A$12 million and return on equity of 41% in the year ended 30 June 2018

 

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?

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

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

Imperial Mineral (NEX:IMPP) 5p £1.6m

Proposed name change to Imperial X and change of investment strategy to focus on medical cannabis.

“The Directors believe that the market for products which are based on, or contain, cannabis derived cannabinoids is growing strongly due to the increased awareness of the benefits of cannabinoids to various aspects of health and because of the accelerating trend towards legalising the use of medicinal cannabis products not only in the UK but also in other countries around the world.”

 

KR1 (NEX:KR1) 5p £6.6m

“KR1 Plc announced that the Company has raised a total of £785,000 (before expenses) through a placing of 15,700,000 ordinary shares of 0.19p each at a price of 5p per share. The funds raised will be used by KR1 to continue to make investments in the blockchain token community and to drive forward the Company’s strategy.”

 

APQ Global (APQ.L) 80p £62.44m

APQ Global is an emerging markets growth company incorporated in Guernsey  which is listed on The International Stock Exchange and admitted to trading on AIM.

“The Company hereby announces that as at the close of business on 30 November 2018, the unaudited book value per Ordinary Share was 99.43 US Dollar cents, equivalent to 77.93p.”

 

Gem Diamonds (GEMD.L) 112p £159.01m

“Gem Diamonds announced the recovery of high quality 101 carat and 71 carat white Type IIa diamonds, both recovered within a twenty four hour period, from the Letšeng mine in Lesotho, the highest dollar per carat kimberlite diamond mine in the world. The recovery of the 101 carat diamond brings the total recoveries at Letšeng to a record fourteen diamonds of over 100 carats during 2018.”

 

Yu Group (YU.L) 74.35p £12.1m

The FCA has notified the Group that it intends to conduct an investigation into the Group to review the accuracy of the Group’s announcements made between 6 Mar 2018 and 24 Oct 2018 and whether these announcements accurately reflected the Group’s financial status.  The Group plans to work collaboratively with and cooperate fully with the FCA in its enquiries.”

Now on a sub 3x FY Dec18E PE following a 33% fall in the price today.

 

Reabold Resources (RBD.L) 0.62p £24.8m

“Reabold announced that, as part of Corallian Energy Limited’s two well offshore UK drilling campaign, the ENSCO-72 jack-up rig has now been mobilised from Hartlepool to drill the Wick exploration well in UKCS Block 11/24b (Licence P2235).

The Wick exploration well will test a high relief sub-surface structure which Corallian, the operator of the licence, estimates to contain Mean Prospective Resources of 26 million barrels of oil equivalent.

Reabold holds its interest in both the Wick and Colter prospects through its 32.9% equity interest in Corallian.”

“This is an exciting time for Reabold shareholders with a high impact drilling campaign commencing across our North Sea and South of England projects.”

 

SIMEC Atlantis (SAE.L) 22p £75.62m

“Further to the announcement made on 5 Jan 2018, SAE,  a world leading developer of sustainable energy projects, announced that it has completed the proposed sale of the Company’s stake in its Canadian joint venture at the FORCE facility in Nova Scotia, Canada, to its partner DP Energy group, a leading renewable energy development business.

SAE and DP Energy have today concluded the sale and purchase agreement for the sale of SAE’s remaining 50% interest in Atlantis Operations (Canada) Limited (“AOCL”). “

The cash transaction enables the DP Energy group to take a more integrated approach to the AOCL berth alongside its pre-existing wholly owned berth at the FORCE facility. This transaction returns C$0.4m to SAE and allows the management team to focus resources on other opportunities in the UK, France and Asia and will allow the DP Energy team, who are experienced in renewable energy project development in Canada, to focus efforts on the development of the tidal stream industry in Nova Scotia.

 

SimiGon (SIM.L) 13.25p £6.7m

“The specialist in providing simulation training solutions, announced that it has further expanded its long-term relationship with a major existing European customer .

The contract award is for SimiGon to provide its SIMbox Commercial Off the Shelf training and simulation development platform and delivery environment for its new research & development lab at the Customer’s facility. The Customer will use SIMbox technology as the technology baseline for its Academic Training Centres.

Under the Contract announced today, valued at US$0.92 million, SimiGon has successfully increased the use of SIMbox in the additional programs across the Customer’s organization. The expected revenue from this Contract was already factored into management’s expectations for the years ended 31 Dec 18 and 19.”

 

Inland Homes (INL.L) 50.5p £106.08m

The housebuilder, Partnership Housing developer and regeneration specialist, announces that it has exchanged contracts to acquire a major development site in Dagenham,East London, which has an anticipated gross development value of circa £95m.

The four acre brownfield site, which was previously part of the former Ford manufacturing plant, lies within the London Riverside Opportunity Area, a 3,000 hectare major regeneration zone designated in the London Plan to deliver up to 26,500 homes and create 16,000 jobs across the boroughs of Barking and Dagenham.

The site has existing planning consent for 325 homes and 1,600 sqm of commercial space. Inland Homes is in negotiations to deliver the homes in a joint venture with a top five housing association, with 116 homes intended as affordable housing and the remaining 209 units sold on the open market.

Completion of the purchase of the site is expected in March 2019, with construction of the first units due to commence in the summer.

 

Faron Pharma (FARN.L) 54p £17.38m

The clinical stage biopharmaceutical company, announced interim results from its pharmacokinetic/dynamic “YODA” study, examining various formulations of recombinant human interferon-beta.

Further to the Company’s announcement on 22 Oct 2018, the YODA study, in around 50 healthy volunteers, is being undertaken to understand the reduced biomarker response to Traumakine during the phase III INTEREST trial.  YODA trial results from the first 30 subjects indicate that IFN-beta, regardless of the method of solubilisation, produced the expected level of bioactivity suggesting that drug formulation was not a factor in the outcome of the INTEREST trial.  

The YODA study will now examine concomitant administration of prednisolone and Traumakine in order to confirm, in vivo, the observed interference of corticosteroids on IFN-beta bioactivity in the INTEREST study and ex vivo lung samples. These YODA results are expected during Q1 2019.

The company continues to await top-line data from the Phase III ARDS trial with Japanese partner Maruishi (JapicCTI-163320) to help determine next steps for Traumakine’s development. 

 

Head Chef:

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

*A corporate client of Hybridan LLP

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