Small Cap Feast

Small Cap Feast – 21 May 2019

Dish of the Day:

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Off the Menu:

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)
Jewel UK Midco Limited, the parent company of The Watches of Switzerland Group Limited, is looking to join the premium segment of the main market. Offer TBC, expect TBC

Main Market (Standard)
IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. Expected 11 June 2019

Pure Gold— TSX listed seeking a London listing. Focused on Madsen Red Lake Gold Deposit. Feasibility Study outlines a robust 12-year, high grade, 800 tonne per day underground mining operation with low initial capital cost of C$95mm and strong financial performance with an after-tax NPV of C$247mm . Introduction only at this point Mkt cap CA£138m.
Main Market (Specialist Funds)

Riverstone Credit Opportunities Income – raising US$200m—will seek to generate consistent shareholder returns predominantly in the form of income distributions principally by making senior secured loans to energy-related businesses. Due 24 May

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m. Issue price 151p.

Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.

Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

NEX Exchange
SSuINOx—has developed a hydrocarbon fuels conditioning and emulsifying process that enables more efficient fuel combustion, leading potentially to reduced fuel usage and significantly lowered emissions. Offer TBA.

Breakfast Buffet

The Vitec Group (VTC.L) 1153p £525m

AGM Statement from the international provider of premium branded products and solutions to the fast moving and growing “image capture and content creation” market. The Group’s trading for the four months ended 30 April 2019 was in line with expectations:. The Board’s expectations for achieving progress in 2019 are unchanged.
The Group announces a significant investment in its web marketing and e-tail capabilities in its Imaging Solutions Division, specifically to recruit a global team to transform its digital competencies, and to reorganise the sales and marketing network by distribution channel. The total investment is expected to be c. €8.5m. Savings are expected to build over time to an annual run rate of c. €3.0m by the end of 2021.

Proton Partners (NEX:PPI) 245p £360m

The group committed to providing innovative cancer care of the highest quality, has today announced the commencement of high energy proton beam therapy services at the Rutherford Cancer Centre North East in Bomarsund, Northumberland.
The first prospective cohort of patients at the Rutherford Cancer Centre North East are already undergoing assessment for proton beam therapy.
The Group’s oncology centres in the UK offer a comprehensive range of cancer treatments to patients including high energy proton beam therapy, radiotherapy, chemotherapy, imaging and ancillary wellbeing services.
High energy proton beam therapy is a type of radiotherapy used in cancer treatment, delivering heavily charged protons in a more targeted manner to reduce damage to peripheral tissue and organs. It can also help reduce unwelcome side effects.

Epwin Group (EPWN.L) 81p £115m

AGM statement from the manufacturer of low maintenance building products, supplying the Repair, Maintenance and Improvement (“RMI”), new build and social housing sectors. “The Group has continued its encouraging start to the year, consistent with meeting market expectations for 2019. Trading has been pleasing, particularly in the Window Systems business which has continued to win new customers.
The Amicus distribution and PVS decking acquisitions are integrating well and performing in line with our expectations. The Group is also pleased to launch its aluminium window system today, in line with the project plan, and has continued to progress the building of its new warehouse and finishing plant in Telford which will be operational in early 2020.
The Board retains its positive view of the medium-term prospect for the market given the continued under investment in RMI, strong new build demand and nascent demand in social housing markets. We look forward to updating shareholders further

APC Technology (APC.L) 9.5p £18m

HY Fed 19 results from the provider of design-in, specification and distribution services for specialist electronic components and systems, lighting technologies and connectivity products.
Revenue increased to £10.6m (H1 2018: £8.6m), up 24% from the £8.5m posted in H2 2018.
Adjusted profit before tax increased by 71% to £0.66m (H1 2018: £0.38m) with adjusted earnings per share increasing by 31% compared with H1 2018.
Net debt decreased further by £1.3m to £2.7m (H1 2018: £4.0m) with all high interest-bearing loan notes now repaid.
“The Group continues to reap the benefits of its clear strategy for moving forward with profitable cash-generative growth. This strategy has three tactical strands: “
• Increase revenue through APC’s established and growth technologies.
• Growth by signing new proven technology partners.
• Sales growth through bolt-on acquisitions.

Mortgage Advice Bureau (MAB1.L) 570p £296m

“Adviser numbers have continued to grow since our final results statement on 19 March 2019 and increased to 1,272 advisers as at 17 May 2019, representing an increase of 5% year to date. We continue to have good visibility that supports our anticipated growth in Adviser numbers from new Appointed Representatives (“ARs”). Although some of our existing ARs with direct links to the estate agency sector continue to pause their expansion plans and delay filling vacancies as a result of reduced confidence amid political uncertainty resulting in a somewhat subdued housing market, the majority of our ARs continue to hold strong growth plans for 2019 and 2020. However, against the backdrop of continuing uncertainty we have seen housing transactions taking longer to complete in this financial year to date, impacting the timing of our banked revenue.” “We believe MAB is ideally positioned to continue increasing its market share, and to focus on wider Group success and profitability through new opportunities and broadening our addressable market.”

Amryt Pharma (AMYT.L) 12.25p £34m suspended

· Amryt has agreed to acquire Aegerion in an all-paper transaction
· The combined group had 2018 pro-forma combined revenues of $136.5m
· Pre-money implied transaction equity valuations: Amryt $120m and Aegerion $190.7m
Contingent Value Rights (“CVRs”) will be issued to Amryt stakeholders that could result in the payment of up to $85m (settled in cash or stock) based on certain AP101 milestones being achieved.
Creates a rare disease business with two approved products – lomitapide (Lojuxta® / Juxtapid®) and metreleptin (Myalept® / Myalepta®)
Amryt plans to raise $60m in equity concurrent with closing of the Transaction and certain Aegerion bondholders have agreed to backstop this equity raise .
Amryt will continue to be listed on the London Stock Exchange’s Alternative Investment Market, Euronext Growth Market in Dublin and after the Transaction will pursue a dual-listing on NASDAQ.

IMImobile (IMO.L) 312p £208m

“The global cloud communications software and solutions provider, has signed a partnership agreement with Telia Norway, with an option to extend to the wider Telia Company – the leading telecom operator in the Nordic/Baltics. The partnership agreement will enable Telia to resell IMImobile’s cloud products, including its enterprise cPaaS (Communications Platform as a Service) offering, IMIconnect, to its enterprise customers. IMIconnect enables businesses to rapidly launch and orchestrate two-way, trigger-based customer communications, across 10+ channels.
Driven by the changes in person to person communications, consumers now expect interactions with businesses to be personalised, relevant, contextual, interactive and conducted in real time. IMImobile is helping Telia to keep pace with changing consumer expectations and offer innovative communications solutions for their enterprise customers. Telia will also be looking into using IMIconnect itself in order to create interactive customer journeys.

Renalytix (RENX.L) 202p £109m

The developer of artificial intelligence-enabled clinical diagnostics for kidney disease, announces the expansion of the core investigator group supporting clinical and regulatory pathways for FractalDx, a portfolio of advanced diagnostic and prognostic solutions in kidney transplant.
As previously announced, RenalytixAI formed the FractalDx investigator group as part of its commercial programme for advanced diagnostic tests expected to make significant improvements in the identification and monitoring for kidney transplant rejection, and to aid in accurate dosing of immune-suppression therapy.
“Predicting transplant rejection before damage to the transplanted kidney occurs remains a major unmet need. Accurately determining rejection risk for each transplant recipient allows individualised treatment to be initiated before the transplanted kidney is attacked and damaged by the immune system leading to improved patient care and successful outcomes.”

Dods Group (DODS.L) 7.5p £25m

The “business intelligence company, announces that Munira Ibrahim has been appointed as Chief Revenue Officer with immediate effect.
Munira has spent the past five years as Senior Vice President of Sales and Content Solutions at Thomson Reuters, following her position as Director of Global Sales Operation at CNBC, part of NBC Universal.
Prior to this, Munrina was Financial Controller at Polygram, having gained a degree in Banking and International Finance from City University.”
Simon Presswell, CEO of Dods Group Plc, said, “The addition of Munira to the management team is further evidence of the scale of our ambition at Dods to create the world’s leading augmented intelligence business.”

Boku (BOKU.L) 130p £316m

The “independent carrier commerce and identity verification company, is pleased to announce a global expansion of Boku Identity, extending its identity verification capabilities to over 60 countries by the end of 2019. Boku Identity is trusted by leading Fortune 500 companies, including PayPal and Western Union, and has already performed over one billion user authentications across North America, Western Europe, and Asia.
Boku Identity is powered by the Boku Platform, which aggregates and harmonizes mobile network operator systems across 58 countries worldwide. By combining the Boku Platform with the identity verification and authentication capabilities from recently acquired Danal Inc., Boku Identity helps global enterprises across multiple industries effectively reduce identity fraud, drive conversions, ensure compliance, and deliver a superior customer experience.”

Head Chef:

Derren Nathan
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