Small Cap Feast

Small Cap Feast – 20 January 2020

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

Total number of AIM Companies trading: *
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Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): *

Total number of NEX Growth Market Companies trading: *
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Set Menu Standard List:

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

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Hvivo has left AIM after being acquired by Open Orphan, Techfinancials has left AIM, remains on NEX,  Cobham has left the Main Market (premium) following an acquisition, RM2 has left AIM pursuant to rule 41, Aggregated Micro Power has left AIM following an acquisition.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.  Expected Admission February 2020

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Main Market (Specialist Funds)

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

 

Breakfast Buffet

Tribal Group (TRB.L) 73p £144m

The provider of software and services to the international education market, announced the appointment of Nigel Halkes as Non-Executive Director with effect from 20th January 2020 and Chair of the Audit Committee following the AGM in May 2020.

Nigel is a Fellow of the Institute of Chartered Accountants, qualifying with EY. He spent 35 years at EY and retired as Managing Partner, UK and Ireland Markets in 2013. During his three-year leadership, EY was the fastest growing of the ‘Big 4’ in the UK and Ireland. Between 1995 and 2003 Nigel was EY’s National Industry Leader for Technology, Media & Telecoms.

 

MaxCyte (MXCT.L) 132p £67.8m

 The global clinical-stage cell-based therapies and life sciences company, provided a trading update for the year ended 31 December 2019.

  • Revenue exceeds market expectations
  • Five new gene-editing cell therapy deals signed in 2019; eight clinical and commercial cell therapy deals now in total; potential pre-commercial milestones in excess of $650m
  • Launch of ExPERTTM technology supporting high demand for instruments and disposables
  • Lead wholly-owned drug development programme progressing through Phase I clinical trial
  • CARMA subsidiary established and seeking investors and new partnerships for CARMA™ platform

 

Rockfire Resources (ROCK.L) 1p £6.3m

Drilling has commenced to expand gold mineralisation encountered in hole BPL025, at the Company’s 100%-owned Plateau Gold Deposit in Queensland, Australia. As announced on 26 November 2019, hole BPL025 intersected 177 m @ 0.5 g/t Au.

  • Reverse Circulation (RC) drilling now in progress, with a planned program of 1,500 m of drilling in 13 proposed drill holes
  • The drill program has two objectives:

o  Exploration at depths of around 250 m below surface

o  Extension and infilling of near-surface resources (< 80 m deep)

  • Geophysical anomaly to be tested by drilling two holes, 50 m and 150 m respectively, east of hole BPL025
  • The drill program is expected to take approximately 15 days to complete, with gold analyses to follow the completion of drilling.

 

Ergomed (ERGO.L) 427p £202m

The a company focused on providing specialised services to the pharmaceutical industry, announced the appointment of Lewis Cameron as Chief Operating Officer (COO) and to the Board. Ergomed confirms that, as stated in that announcement, Lewis has today commenced his employment as COO and his appointment to the Board has been effected.   

Ergomed confirms that there have been no changes to the disclosures made in the announcement dated 2 December 2019 (RNS number 2883V) regarding Rule 17 of paragraph (g) of Schedule Two of the AIM Rules for Companies in respect of Lewis Cameron’s appointment.

 

TMT Investments* TMT (TMT.L) 414c $120.8m

Portfolio Update since 17 Sep 19.

Positive revaluations

Le Tote.  In November 2019, online fashion rental start-up Le Tote acquired Lord & Taylor, the US’s oldest department store.  The transaction resulted in an increase of approximately US$0.75m in the value of TMT’s interest in Le Tote.     Remote.it.  Platform as a Service (PaaS) provider of enterprise-class networking services Remote.it has recently completed an equity financing round.  The transaction resulted in an increase of approximately US$2.2m in the value of TMT’s interest in Remote.it.

 Negative revaluations

Sixa.  Full impairment of US$0.9m.   Drupe.  Full impairment of US$0.6m.

Nearly $2m of new investments, in performance marketing, advertising monitoring, and mobile software for the timber industry.

The combined effect of these revaluations represents approximately 5c per TMT share (before adjustments ). “We expect a number of further positive revaluations across our portfolio in 2020 and will update shareholders on relevant developments as appropriate.  With a continued strong cash balance, we continue to apply our highly selective criteria to identify new promising investment opportunities.”

 

Sabien Tech (SNT.L) SUSPENDED

Notes the press report over the weekend regarding a possible transaction between the Company and  Ptarmigan SA.

The Board confirms that it is in preliminary discussions regarding the possible acquisition of Ptarmigan SA by the Company. Should such a transaction proceed on the currently envisaged terms, it would be classified as a reverse takeover in accordance with the AIM Rules for Companies. Accordingly, the Company’s shares are suspended from trading on AIM with immediate effect and will remain so until either the publication of an admission document setting out, inter alia, details of the proposed transaction or until confirmation is given that these discussions have ceased.

Ptarmigan is a health and leisure resort development company based in the valley of Evolene, in the Canton of Valais, Switzerland and is owned by the Truell family, a 25% shareholder of Sabien.

Shareholders should note that the proposed acquisition is at an early stage of discussion and subject to a number of pre-conditions and due diligence, and there can be no certainty therefore at this time that the acquisition will proceed as envisaged.

 

Touchstone Exploration(TXP.L) 22p £35.4m

Exploration update, highlighted by the first stage of production testing of the Cascadura-1ST1 well on the Ortoire exploration block, onshore in the Republic of Trinidad and Tobago. The Cascadura-1ST1 production test was designed to evaluate a potential oil zone as indicated by cased hole logs. On commencement of testing, significant pressures and natural gas volumes were encountered on the clean-up flow. As a result, the Company suspended testing to bring in the appropriate equipment to measure high volumes of both natural gas and liquids.

“This is the best possible outcome for the initial test results from the Cascadura well, as natural gas and liquids have superior economic value under the Trinidad fiscal regime”.

 

Kape Technologies (KAPE.L) 168p £262m

FY Dec 19 update from the digital security and privacy software business .

The acquisition of PIA will be significantly earnings enhancing for Kape, and further bolsters the Group’s SaaS operating model. Kape’s user base grew to 2.35m subscribers at year-end (30 June 2019: 1m), comprising 74.3% organic growth within the privacy vertical not including PIA. Kape expects to deliver $98.8m in revenues from existing customers in future financial years, up 260% (30 June 2019: $38.0m).

Kape traded strongly throughout 2019 with a focus on profitable growth. Adjusted EBITDA is expected to be slightly above market expectations at c.$14.5m (2018: $10.4m), representing an increase of 40%, with revenues up 26% to c.$66.0m. At the time of the PIA acquisition, the Group issued guidance for the year ending 31 December 2020, with revenues expected to be in the range of $120m to $123m and Adjusted EBITDA between $35m and $38m.

 

Inspiration Health (IHC.L) 67.5p £25.7m

The global medical technology company, has received an order from the Ministry of Health of Sri Lanka for the supply of 15 HIE Workstations, used for diagnosing and treating Hypoxic-Ischaemic Encephalopathy in the new-born.   its receipt does not alter the financial expectations of the company for the current year which remain in line with current forecasts.

M&C Saatchi (SAA.L) 117.5p £109m

 FYDec19 update. The Company anticipates that underlying PBT , will be in line with the Board’s expectations as set out in the trading update of 4 December 2019. Also expects net cash to be at least £15m, substantially ahead of expectations following the implementation of improved cash collection processes.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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