Small Cap Feast

Small Cap Feast – 22 November 2019

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What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

AIM

The FT reports that World Chess has announced plans for a novel “hybrid” IPO where it will first issue a digital token ahead of an AIM float

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 – Seeks to invest in the developing market for rural broadband in the UK.  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

Main Mkt Premium

Octopus Renewables – Seeking raise of up to £250m. Will seek to provide investors with an attractive and sustainable level of income returns, with an element of capital growth by investing in a geographically and technologically diversified spread of renewable energy assets—Due 10 Dec

 

Breakfast Buffet

Brooks Macdonald (BRK.L) 1800p £251m

Intention to conduct a placing representing approximately 12.1% of the Company’s existing issued ordinary share capital to institutional investors at a placing price of 1775p per Placing Share to raise gross proceeds of approximately £30m.  The Company has separately announced today that it has reached an agreement to acquire 100% of the issued share capital of Cornelian Asset Managers Group Limited.

Cornelian is an independent, well-established and profitable wealth management business, based in Edinburgh.  It has 39 employees, including 12 investment professionals, and c.£1.4 billion Funds under Management as at 30 September 2019. The total net consideration is expected to be up to £39m, with initial consideration being £31m, of which £22m will be paid in cash and £9m in Brooks Macdonald shares.

The net proceeds of the Placing will be used to fund the cash element of the consideration for the Acquisition.

 

Diurnal (DNL.L) 33p £28.5m

AGM Statement. “Diurnal remains on track to submit two key regulatory filings during Q4 2019, namely a Marketing Authorisation Application submission for Chronocort® in Europe and a New Drug Application submission for Alkindi® in the US. This follows the two regulatory filings already made for Alkindi® during 2019 by our partners Medison and Emerge in Israel and Australia, respectively.”

Recent pricing work has reinforced the significant commercial potential for Alkindi® and Chronocort® in the US; Diurnal’s discussions with US partners around its late-stage cortisol deficiency pipeline continue to advance and it expects to conclude a licensing deal during H1 2020.  The commercial roll out of Alkindi® in Europe continues to progress, with sales for the year to date in line with expectations.

Positive headline results from the Company’s DITEST™ (native oral testosterone formulation) Phase I proof-of-concept clinical trial, out yesterday.

 

Plexus Holdings (POS.L) 26p £26m

POS-GRIP® “HG”® Metal Seal System for Wellheads Extends Performance Capability

 

  • Wellhead seal qualified from -75 to + 400 °F
  • Full range in single test demonstrates “HG” Seal superior integrity
  • Furthers POS-GRIP capability in Arctic conditions
  • Further shows “HG” is reusable, leak-proof and maintenance-free
  • One-design seal option for any application saves costs

 

Yew Grove Bid (YEW.L) 0.975p £82.9m

Yew Grove REIT plc which owns a diversified portfolio of Irish commercial property assets, today announces the proposed issue of approximately 20 million New Shares of nominal value 0.01, each at a price of 0.97. These New Shares will represent the second Tranche of the Company’s 100m Share Issuance Programme that was announced on 13 June 2019

     The Company has identified eight attractive properties that are available for acquisition, with a total cost of approximately 72m in aggregate, representing a net investment yield (“NIY”) of between 5.0%-6.0%, and with a short-term reversionary yield of between 7.0%-9.5%. Further pipeline of c €130m.

Believes consolidation within the Company’s target market offers the opportunity to build a €300-500m portfolio of high-yielding, high-quality assets over the medium term.

 

Strategic Minerals (SML.L) 0.625p £9.2m

 Update on the Company’s operations at Leigh Creek Copper Mine LCCM.

US$30m combined pre-tax cash surplus from Paltridge North, Lynda and  Lorna Doone  –  Adoption of a long term, three-phase development programme for the existing licenses and surrounds  – Full scale production to commence with lower risk Paltridge North deposit  – Identification of the need to increase capacity at Mountain of Light plant to 300 tonnes per month.

The feasibility study on the first element, Paltridge North, undertaken by Mining One and other internal consultants, indicates a cash surplus going forward, of US$6.4m. Updated internal feasibility of the second stage development of Lynda and Lorna Doone indicates a cash surplus of US$29m.

 

Ariana Resources (AAU.L) 2.05p £21.7m

Operating results for the quarter ended 30 September 2019 for the Kiziltepe Mine .

  •   Record gross quarterly income of US$11.76m at the average realised gold price of US$1,476 per ounce, against an average revenue per gold ounce of US$1,696 (due to silver credit).
  • Production of 6,933 ounces of gold during the quarter ending 30 September 2019.
  • 2019 gold production to the end of Q3 2019 totals 20,667 ounces of gold; on track to achieve annual production guidance of 25,000 ounces of gold.
  • Operating cash costs for the quarter are estimated at US$540 per ounce.
  • 78% of the US$33m capital loan for Kiziltepe has been repaid as at quarter ending 30 September 2019; on track to fully repay loan by April 2020.

 

Kin and Carta (KCT.L) 90.9p £139m

Acquisition of Spire Digital, Inc., a private US-based digital transformation consulting firm.

The Acquisition supports Kin + Carta’s stated ambition to grow both organically and through strategic acquisitions that complement its client offering and expand its geographic reach. It is expected to be earnings-enhancing in the first full year of ownership.

The Acquisition purchase consideration is comprised of an initial cash consideration of approximately $14.8m on a cash-free and debt-free basis, with total capped at £27m. 

Raising £13.6m at 89p.

 

Live Company (LVCG.L) 40p £28.6m

Expansion of Nickleodeon deal.  The parties have agreed to expand the territories in which the Group can produce and exhibit themed tours associated with the Nickelodeon brand, including Nick Jr., to cover all countries globally (excluding the United States of America, including Puerto Rico).

 Building upon the success of the Group’s BRICKLIVE Brickosaurs tour at Marwell Zoo earlier this year, the Company is pleased to announce that its wholly-owned subsidiary, BLIL, has entered into a new two year contract with Marwell Wildlife, UK to provide themed tours that will be exhibited between April and September 2020 and 2021 at Marwell Zoo.  The Group is working with Marwell Zoo to develop the concepts for these future tours.

 

Crossword Cyber security* (CCS.L) 490p £22.9m

 Notice of GM yesterday to approve amendments that to enable the Company to enter into three year convertible loan agreements up to the value of £1,275,000, for which the Company has non binding commitments.  Included among the commitments is one from Tom Ilube, CEO, for an amount of £250,000.

 

Haydale Graphene (HAYD.L) 1.575p £5m

Appointment of Mark Chapman as the Group’s new Chief Financial Officer and director of the Company with immediate effect. Mark replaces Laura Redman-Thomas who, as was announced last month, has left to take up a new role.

For the last 19 years, Mark held a number of CFO and COO roles within international companies operating in the med-tech, beverages and consumer sectors, where he has helped deliver strong improvements in business sustainability and EBITDA

Head Chef:

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

*A corporate client of Hybridan LLP

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