Small Cap Feast

Small Cap Feast – 20 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:

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?

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

Advanced Medical Solutions (AMS.L) 259.5p £562m

Advanced Medical Solutions Group, the surgical and advanced wound care specialist company, announced that it has received CE approval to market and launch its LiquiBandFix8® Open Hernia Mesh Fixation Device in Europe.

The LiquiBandFix8® Open Hernia Mesh Fixation Device is used for atraumatic mesh fixation in open inguinal hernia surgery. The device optimises costs for payors due to the reduced turnaround time of patients without compromising patient care. The device will be marketed and distributed by the Group’s direct sales teams in the UK and Germany and through various distributor partners across the EU. This approval augments AMS’s existing LiquiBandFix8® laparoscopic fixation device already used in minimally invasive hernia repair.

At present, the laparoscopic device is approved for use in Europe and a number of other markets. AMS has begun the US approval process for the laparoscopic fixation device which is expected to take another two years and to cost approximately £3m as it will necessitate a full set of clinical trials. These are expected to start early next year, once Investigational Device Exemption with the FDA has been obtained.

 

88 Energy (88E.L) 0.94p £58.57m

88 Energy advised the following in relation to its oil and gas operations on the North Slope of Alaska.

Multiple high-quality parties active in conventional dataroom

Deadline for bids extended due to request

Deal now targeted for 1Q 2019

Initial HRZ review by Baker Hughes encouraging

Additional value add analysis now underway ahead of finalising farm-out package

Yukon Leases – 3D seismic processing continues with inversion now underway

Western Leases – Winx-1 exploration well on schedule for February 2019 spud

 

Real Good Food (RGD.L) 5.5p £6.16m

Real Good Food announced that it has completed the sale of R&W Scott Limited to its management team. The Group will receive consideration of £3.95m as a result of the MBO, payable by means of a cash payment of £1.5m, £0.5m of which is deferred until 30 Sept 2019, and the assumption by R&W Scott’s management team of £2.45m of third-party debt.

R&W Scott has been producing jams and preserves for over 130 years and is based out of Carluke in Lanarkshire, Scotland. R&W Scott also manufactures chocolate flavoured coatings, sweet and savoury spreads and speciality soft icings, servicing a number of sectors including retail, foodservice and wholesale customers worldwide and has been a part of the Group since the Group’s inception.

In the Group’s financial year ended 31 March 2017, R&W Scott contributed £10.36m of revenue, and incurred a loss before non-recurring items and tax of £1.22m, and a pre-tax loss of £3.3m, closing that year with net assets of £1.89m. The Group expects to incur an accounting loss for the Group on disposal of approximately £3m and a write down of parent company reserves at 31 Mar 2019 of approximately £5m.

 

President Energy (PPC.L) 9.55p £100m

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

The Puesto Prado and Las Bases Concessions (together “the New Concessions”) formally signed over to President in a ceremony attended by the Governor of Rio Negro, the Secretary of Energy of the Province, and our partners, the Provincial oil company EDHIPSA

First oil now being produced from the reactivation of the first two wells in Puesto Prado

Estancia Vieja gas has been successfully flowed to Puesto Prado and will be powering that field by end January

 

Chamberlin (CMH.L) 93.5p £5.57m

Chamberlin announced that it has completed the sale of Exidor Limited to ASSA ABLOY Limited, for a total enterprise value of £10m with the consideration to be paid in cash.

The proceeds of the disposal will be used to reduce Group indebtedness, to provide additional working capital and to reduce certain of the Company’s existing pension liabilities.

The cash consideration represents approximately 180% of Chamberlin’s market capitalisation based on the Group’s closing mid-market share price of 70p per ordinary share as at 18 Dec 2018.

Exidor employs approximately 70 staff from its premises in Cannock, all of whom will be retained under the ownership of ASSA ABLOY. Turnover in the year to 31 March 2018 was £7.52m and operating profit was approximately £651,000. Total net assets as at 31 March 2018 were approximately £2.01m.

 

i3 Energy (I3E.L) 38p £15.59m

i3 Energy, an independent oil and gas company with assets and operations in the UK, is pleased to announce that it continues to progress the necessary documentation with the UK’s Oil & Gas Authority (“OGA”) to achieve Field Development Plan (“FDP”) approval in early 2019 for the Company’s 100% owned and operated Liberator development.

i3 expects to enter the final authorisation phase of the OGA’s FDP planning and consent process in Q1 2019 and continues to position itself for mid-2019 development execution with Liberator Phase I first oil anticipated in mid-2020.

“We are pleased by the progress being made towards Liberator Phase I field development approval and are appreciative of the ongoing support and guidance of the OGA.”

 

Edenville Energy (EDL.L) 0.13p £2m

Edenville Energy, the company developing a coal project in southwest Tanzania, is pleased to report that, further to the announcement made on 17 Dec 2018, that the Lamella clarifier water treatment plant that has been installed at the Company’s Rukwa Coal Project is now fully operational.

The Lamella water treatment plant has been designed to enhance the quality of the water and reduce the amount used in the Project’s coal processing, along with ensuring that the Project site is following recognised international environmental practices. Management believe this plant will improve both water qualities in the plant process and in the return ponds, which in turn should lead to increased coal processing plant productivity.

 

W Resources (WRES.L) 0.53p £29.79m

W Resources, the tungsten, copper and gold mining company with assets in Spain and Portugal, is delighted to report that it has successfully fed the first mined ore into the newly completed crusher which is now being commissioned at its flagship tungsten and tin project, La Parrilla in Spain.

“First ore into new crusher was achieved on 18 December 2018 ahead of the January 2019 target and is a great credit to the team at La Parrilla. We wish everyone a safe and Merry Christmas and a positive New Year.”

 

Ten Lifestyle Group (TENG.L) 48.57p £39.3m

Ten Lifestyle Group, a leading technology-enabled lifestyle and travel platform for the world’s wealthy and mass affluent, announced that Sean Hegarty will be stepping down as CFO on 31 July 2019. The Company has now commenced a formal process to appoint a successor and a further announcement will be made in due course. Sean will remain with the Company until 31 July 2019 to ensure a smooth handover of duties.

Alex Cheatle, CEO, Ten Lifestyle Group plc, said, “Sean has been with Ten since 2012 including overseeing the IPO last year. I am very grateful for his contributions during this period and wish him every success in the future. We have already begun the search for his replacement.”

 

NetScientific (NSCI.L) 10p £22m

NetScientific, the transatlantic healthcare IP commercialisation group, announced that it had decided to conduct a review of the various strategic options open to it, one of which was a sale of the Company.

Today, NetScientific provides an update on progress regarding the Strategic Review.

The Company has received indications of interest in a potential acquisition of certain of the Company’s portfolio companies. However, to date, that indicative interest has not resulted in any binding or non-binding offer for any of its portfolio companies.

The Company itself is not in receipt of any approaches and is not in discussions with any potential offeror at the time of this announcement.

As at 31 Dec 2018, NetScientific is expected to have available cash resources of approximately £3m. In each of 2019 and 2020, NetScientific expects to have central costs of approximately £2m and to invest up to approximately £5m in its portfolio companies, should they fail to raise external finance.

Therefore, the Board continues to assess all of its strategic options, including seeking additional funding from its shareholders and taking material action to reduce further the Company’s costs, which may include seeking a delisting.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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