Small Cap Feast

Small Cap Feast – 19 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): 88*

Total number of NEX Growth Market Companies trading: 86*
* 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:

National World Ord (NWOR) –  issued share capital of 54,000,000 ordinary shares has today been admitted to listing on the standard segment of the Official List at 10p per share. The Company has been formed to pursue opportunities in the news publishing and digital media sector and/or in associated complementary technologies initially focusing on potential acquisition opportunities in the UK and continental Europe.

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

Gamfook Jewellery (GAMF) –  have delisted from the NEX exchange due to the resignation of their Corporate Advider and Auditors.

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

Petards Group* (PEG) 16p £11.2m

Petards Group plc, the AIM quoted developer of advanced security and surveillance systems, is pleased to report its interim results for the six months ended 30 June 2019.

As of 30th June 2019, the company are sitting on a healthy order book of over £15m, £7m of which to fall in H2 2019. 

Revenue £8.9m (2018: £9.7m)

Adjusted EBITDA £766,000 (2018: £1,085,000)

The core business of rail and traffic remain robust with revenues up circa 40% over June 2018.  However, defence activity levels remain challenging. 

Healthy increase on the gross margin to 37.5%

The timing of certain orders has meant a lower than previously anticipated performance for FY 2019. 

“”The Group continues to benefit from a good order book which at 30 June 2019 included revenues of almost £7 million for the second half of 2019.  This has been supplemented by orders received since June, the majority of which will benefit 2020.”

GAN PLC (GAN) 85.50p £74m

GAN plc, an award-winning developer and supplier of enterprise-level B2B gambling software and services in the United States and Europe, announces a new agreement with JACK Entertainment LLC, which has chosen GAN as their platform to support sports wagering and online casino gaming should enabling legislation and corresponding regulatory approvals come to pass in the jurisdictions where JACK operates.

JACK is an existing client of GAN’s Simulated Gaming Enterprise Platform, available online at www.playJACK.com, since October 2016. Today’s announcement once more demonstrates the strategic value to GAN of establishing relationships with U.S. casinos in advance of relevant intra-State U.S. regulation of real money Internet gambling.

JACK and its affiliates own and operate gaming properties in Cleveland, Cincinnati, and Baltimore in addition to racing facilities in Ohio and Kentucky. The complete JACK portfolio includes over 4,000 team members, 40 bars and restaurants, 375,000 square feet of gaming space and generates more than $800 million in revenues.

Karelian Diamond Res. (KDR) 3.20p £1.24m

Further to the announcement made on 2 September 2019, Karelian Diamonds, the diamond exploration company, announces that the Company has published a shareholder circular and notice of general meeting in relation to resolutions to remove certain existing directors of the Company, being Professor Richard Conroy, Maureen Jones, Seamus FitzPatrick, Dr Sor?a Conroy and Louis J Maguire and appoint as new directors, Alan Osborne, Stephen Grimmer, Martin Doyle and Kevin Taylor.

Your Board believes that the proposed resolutions are NOT in the best interests of the Company and Shareholders as a whole and is therefore unanimously recommending that you VOTE AGAINST ALL of the proposed resolutions.

An extraordinary general meeting of the Company (“EGM”) has been convened for 1.00pm on 18 October 2019 at Gandon Suite South, Davenport Hotel, 8-10 Merrion Street Lower, Dublin 2.

The Circular and a form of proxy for voting at the EGM were posted to shareholders after close of business on 18 September 2019 and the Circular will also be available shortly on the Company’s website.

Begbies Traynor (BEG) 73p £94m

Begbies Traynor Group, the business recovery, financial advisory and property services consultancy, is today holding its Annual General Meeting. Ric Traynor, Executive Chairman, will make the following statement:

The last financial year was one of strong financial performance, in which we grew the business organically, completed four acquisitions and increased the dividend whilst reducing net debt.

The benefit of our strategy to increase the scale and quality of the group’s businesses, through both investment in organic growth and targeted acquisitions, is reflected in our financial performance. We now have an enhanced breadth of service lines with multiple sources of growth potential. Whilst we retain a counter-cyclical focus, which accounts for 65% of our income, our broad range of services also positions the group well to grow across the economic cycle.

We have further added to our potential for growth by raising £8.3m in July 2019 to fund further acquisition opportunities.”

Conroy Gold & Natural Reso (CGNR) 4.83p £1.11m

Conroy Gold and Natural Resources plc, the gold exploration and development Company focused on Ireland and Finland announced an independent review of the structural controls on the Clontibret Gold Deposit, County Monaghan, Ireland by consultant structural geologist, Dr. Francis Murphy.

Highlights:

Structural controls for higher gold grades and thicker gold intersections in Clontibret gold deposit identified

Gold mineralising fault recognised in adjacent Corcaskea area

The structural review has identified the factors controlling the higher gold grades and thicker gold intersections along the gold lodes in the Clontibret gold deposit.

This information will be particularly valuable in targeting higher gold grades and thicker gold intersections in future drilling programmes.

SolGold PLC (SOLG) 23.15p £412m

SolGold advises that The Constitutional Court of Ecuador has ruled against a petition to seek local consultation to consider the prohibition of mining activities within the province of Azuay, Southern Ecuador. The province of Azuay contains SolGold’s 100% owned Sharug project, a high priority project that SolGold believes has considerable potential for the discovery of a world class orebody with commensurate benefits for Ecuador and SolGold.

The Court unanimously dismissed the petition and concluded that referendums implying constitutional reforms are incompatible with the Ecuadorian constitution.  In addition, the Court ruled that any referendum which may if successful, result in other nationally enjoyed constitutional rights being restricted, are inadmissible. The decision specifically addressed the rights granted to mining concessionaires.

Kodal Minerals PLC (KOD) 0.06p £5.17m

Kodal Minerals, the mineral exploration and development company focused on its Bougouni Lithium Project in southern Mali, provides the following update on its Environmental and Social Impact Assessment application.

A formal validation meeting of the ESIA was held on Wednesday 18 September with the Direction Nationale De L’Assainissement et du Contrôle des Pollutions et des Nuisances, the governing administration for environmental matters in Mali.  The meeting was attended by Kodal Minerals Project Manager Steve Zaninovich, its Country Manager Mohamed Niare, the Company’s ESIA Consultant group Digby Wells and by a number of Kodal Minerals technical staff, to ensure all questions and comments were addressed. The matters arising minor in nature, and Kodal anticipates the addendum will be completed within a short period, following which, the DNACPN statutory approval period of 45 days commences.

Velocys PLC (VLS) 2.70p £16.09m

Velocys plc announced that it has secured a purchase order and technical service agreements with Toyo Engineering Corporation for the use of Velocys technology in a publicly funded demonstration facility in Nagoya, Japan, as well as an advanced deposit for the use of the Velocys technology by Toyo in a subsequent commercial plant.

Toyo has placed an order with Velocys, worth approximately $0.5 million (£0.4 million), to supply its Fischer-Tropsch  technology, equipment and catalyst for a biomass-to-jet fuel demonstration facility currently under construction by a consortium of Japanese companies.

In addition, Velocys has agreed that it will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for a future potential commercial plant in Japan with an advance deposit of $4 million (£3.2 million).

Anglo African O&G (AAOG) 3.35p £12.69m

Anglo African Oil & Gas plc, an independent oil and gas developer, provides an update on the repayment of funds owed to the Company by Société Nationale des Pétroles du Congo (‘SNPC’), the Congolese national oil company, in regards to SNPC’s 44 per cent holding in the Tilapia Licence (‘the Licence’) in the Republic of the Congo

The Company has received a further payment of US$600,000 from SNPC, which brings the total funds received in 2019 to US$3.956 million.  

Blackbird PLC (BIRD) 10.35p £30.29m

Blackbird plc, developer and seller of the market-leading cloud video editing platform Blackbird, has announced that TownNews has again expanded its deployment of Blackbird for the fast production of digital news content in the US. This is the fourth deployment of Blackbird by TownNews within the past 15 months.

TownNews has signed up a further six US TV stations that will use Blackbird to rapidly view, edit and publish their video news content to social and web platforms.

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”.