Small Cap Feast

Small Cap Feast – 20 November 2019

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What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

AIM

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt.  Offer TBA.

Longboat Energy raising £10m.   Expected admission November 2019.  The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and near-field exploration; and by value creation through the drill bit.

NEX Exchange

Sapo PLC – an investment vehicle under the NEX Exchange Rules, seeks to invest in the developing market for rural broadband in the United Kingdom.  Due 2 Dec

Main Mkt Standard

Taseko Mines  – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec

SDIC Power  – “potential intention to float”. Proposed GDR listing.  Leading power generation company in China, with a diversified portfolio of projects across hydropower, coal-fired power, wind power and solar power.  Offer TBA

Breakfast Buffet

Falcon Oil & Gas (FOG.L) 13.6p £124m

Preliminary drilling data from the vertical section of the Kyalla 117 N2-1 appraisal well confirms:

The continuation of the regionally pervasive Kyalla Fm between the Beetaloo W-1 and Amungee NW-1H wells.

Elevated gas show with relatively high C3, C4 and C5 components were observed across the carbonaceous shales.

The JV is now preparing to drill the horizontal section within the Kyalla formation.

Horizontal drilling will commence following the final evaluation of the vertical well results.

Once completed, the horizontal section will be fracture stimulated, and production tested.

The JV has prepared for continued operations during the wet season.

 

Property Franchise Group (TPFG.L) 156.65p £39.64m

Trading during H2 to date has remained strong, and management are confident that the Group remains in line to achieve market expectations for the full year. “We are pleased to report that the Group has set a new record for lettings revenue at a franchisee level in the trading month of October 2019. Our franchisees reported lettings income of £5.96m. Significantly, this was achieved despite the loss of tenant fee income, following the ban on charging tenant fees having come into effect in England & Wales on 1 June 2019. Tenant fees had previously represented 16% of our franchisees’ lettings revenue in these jurisdictions.”

“We had previously advised investors that it could take until the end of 2020 to fully mitigate the lost revenue from the ban, however management is now confident that the objective of full mitigation will be attained by June 2020, one year after the introduction of the ban.”

 

Diurnal (DNL.L) 34p £29.38m

Positive headline results from the Company’s DITEST™ (native oral testosterone formulation) Phase I proof-of-concept clinical trial. Confirms the positive findings in the Company’s successful in vivo pre-clinical studies, evaluated the pharmacokinetics, safety and tolerability of DITEST™ in the target patient group of 24 adult men with primary or secondary hypogonadism. “”Currently available topical formulations of native testosterone have significant compliance and potential safety issues while, to date, attempts to create oral preparations of modified testosterone have resulted in products with considerable pharmacokinetic variability and a requirement to be taken with a high-fat meal.”

“I am strongly encouraged by these study results, which demonstrate that the DITEST™ formulation has the potential to address these needs.”

 

Finsbury Foods (FIF.L) 84p £109.5m

The momentum from the second half of the previous financial year has been maintained, and we continue to achieve strong growth across the core business. Sales for the first four months of the new financial year grew by 6.4% to £101.5m, as a result of a strong retail and foodservice performance in the UK, as well as new business wins and continued innovation across the Group.

“Whilst the wider macroeconomic and political environment remains challenging in the UK, the Group is in its strongest position in recent years, and the Board is confident in achieving market expectations in FY20.”

 

Breedon Group (BREE.L) 62.35p £1.1bn

Trading update.  Breedon delivered a strong performance in the 10 months to 31 October 2019, with increased revenues, improved underlying EBIT and continuing robust cash generation, including a 10-month contribution from the former Lagan Group (“Lagan”), acquired in April 2018. 

These results were achieved against the backdrop of a flat construction market in Great Britain. Group revenues grew by eight per cent to approximately £800 m. Assuming no materially adverse weather conditions for the remainder of the year, the Group’s Underlying EBIT for the full year is expected to be in line with current market expectations .

 

Goldstone Resources (GRL.L) 1.65p £4.1m

The Ghanaian Ministry of Lands and Natural Resources (“MLNR”) has approved the recommendation for the grant of a 10 year mining lease on the Akrokeri and Homase Licences, for the Homase South Pit and land for the plant and process operation. The Company now awaits issue of the Lease by MLNR.

 The Lease represents an important step in the Company’s goal of bring the Akrokeri-Homase Gold Project into production.  The Homase South Pit is the first of the three pits along the Homase Trend which GoldStone will bring into production as detailed in the Definitive Economic Plan announced on 27 June 2019.

 

Advanced Oncotherapy (AVO.L) 39.5p £94m

The developer of next-generation proton therapy systems for cancer treatment, is pleased to announce an equity fundraise of approximately £2.7 m which will contribute to the funding for progressing verification and validation activity in order to obtain regulatory approval of its first LIGHT system.  Priced at 25p a 33% discount to yesterday’s close. 

 

Infrastrata (INFA.L) 0.305p £4.6m

The AIM quoted company focused on strategic infrastructure projects, announced an offer of new ordinary shares in the Company to shareholders that are Qualifying Participants  and an offer of Ordinary Shares on the PrimaryBid platform  to raise collectively gross proceeds of up to £1 m.

This is subsequent to a recent £6m placing at of £6m at 0.3p.  The Board considers it important to allow existing Shareholders to participate on the same terms as investors who participated under the Placing . The aggregate gross proceeds of the Fundraise are limited to £1 m but may be increased, at the Board’s sole discretion, to up to £2 m.

 

Mercia Asset Management (MERC.L) 31.4p £89.5m

Update on direct portfolio company, nDreams Limited  (37.1% fully diluted) New contract for the VR at home market and follows the announcement of nDreams’ latest title, Phantom: Covert Ops, which the company is developing in partnership with Oculus Studios. The reception for Phantom: Covert Ops, which was on show at this year’s E3 Expo in Los Angeles, has been outstanding and resulted in the team winning E3’s Game Critics Award for ‘Best VR/AR Game’, as well as six other award wins including Game Informer’s ‘Best VR Game’.

 

European Metals (EMH.L) 22.25p £32.4m

Conditional agreement with CEZ Group , one of Central and Eastern Europe’s largest power utilities, regarding a potential strategic partnership and significant investment into the Cinovec Project. If concluded, the agreement will see, subject to the successful completion of due diligence, shareholder, and other approvals, CEZ become a 51% shareholder in Geomet s.r.o. (“Geomet”), the Company’s Czech subsidiary and holder of the rights over the Project, for consideration of approximately €34.06 m.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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