Small Cap Feast

Small Cap Feast – 22 November 2019

Dish of the Day:

No Joiners Today


Off the Menu:

No Leavers Today


What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?


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

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.