Small Cap Feast
Small Cap Feast – 23 April 2019
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 897
Total number of AIM Companies trading: 826*
* As at 12 April 2019
Set Menu NEX Growth:
Total number of NEX Growth Market Companies (Incl Susp): 89*
Total number of NEX Growth Market Companies trading: 87*
* As at 12 April 2019
Set Menu Standard List:
Total number of Standard List Companies (Incl Susp): 161*
Total number of Standard List Companies trading: 141*
* As at 12 April 2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
What’s Cooking in the IPO Kitchen?
Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.
Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m
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
Valeura Energy Inc (TSX:VLE), the upstream natural gas producer focused on appraising and developing an unconventional gas accumulation in the Thrace Basin of Turkey in partnership with Equinor is looking to join the standard list. No raise, expected market cap £146m and expected 25 April 2019
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.
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.
Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.
Trans-Siberian Gold (TSG.L) 57p £62.73m
Trans-Siberian Gold, a low cost, high grade gold producer in Russia, announced that the Federal Agency for Subsoil Use has issued a licence to ZAO Trevozhnoye Zarevo, TSG’s wholly owned subsidiary for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka, for a tenure of 20 years.
20 year licence awarded
Located in close proximity (50km) to the Company’s operating Asacha Gold Mine
GKZ Russian classified resource of 1Moz gold at 5.3 g/t and 8.3Moz silver at 44.6g/t
High-grade gold-silver deposit is one of the largest gold fields in South Kamchatka
Totally (TLY.L) 12.5p £6.97m
Totally, the provider of a range of out-of-hospital services to the healthcare sector in the UK, announced that its wholly-owned subsidiary Vocare Limited, one of the UK’s leading national specialist providers of urgent care services, has been awarded a new contract to provide Urgent Treatment Centre and GP Visiting services (the “Services”) to NHS Newcastle & Gateshead Clinical Commissioning Group, through its membership of the Newcastle Urgent Care Alliance (the “Alliance”).
Newcastle & Gateshead CCG has awarded the Contract to the Alliance, of which Vocare is a member, to supply a number of urgent care services. Under the Contract, c.£1.94m per annum will be attributed to Vocare to supply its Services. The Contract will run for five years, with an option to extend for a further two years at the Contract’s conclusion.
IronRidge Resources (IRR.L) 18p £55.72m
IronRidge Resources, the African focussed minerals exploration company, announced the Zaranou Gold Project Licence has been granted, whilst the Company has extended the exclusive due diligence period to the highly prospective gold license in Côte d’Ivoire, West Africa.
Exploration licence granted for the Zaranou Gold Project covering 397km2 in Côte d’Ivoire, West Africa
IronRidge agrees a two-month extension to the exclusive due diligence period
The granting of the Zaranou Gold Project and the extension of due diligence on Zaranou is further to the announcement by the company of 14 February 2019, noting that IronRidge has secured the right to acquire up to 100% of the Project through staged earn in arrangements.
Zinc Media (ZIN.L) 0.30p £4.33m
Further to its announcement of 8 Feb 2019, Zinc Media confirmed that Mark Browning has joined the business as CEO and has been appointed to the Board of Directors with immediate effect. Mark brings many years of leadership, experience and a clear track record of successfully managing significant growth in the TV production and media sectors and joins the Company from ITN Productions, where he most recently acted as Group Managing Director.
The Company also confirmed that David Galan has, as also announced on 8 Feb 2019, stepped into a role as a NED of the Company with immediate effect.
Franchise Brands (FRAN.L) 86.5p £65.3m
Franchise Brands, an international multi-brand franchisor, will hold its AGM today at 11am, at which Stephen Hemsley, Executive Chairman, will provide the following update:
“Metro Rod’s forward momentum in Q1 has continued apace, with our franchise network growing their system sales by 12.9% (FY2018: 10.4%) resulting in a record quarter. Our Vision 2023 strategy of providing franchisees with sales and marketing support and new IT systems has seen 12 of our franchisees achieve year-on-year growth of over 30% in Q1.
We are encouraged to see that our B2C brands, ChipsAway, Ovenclean and Barking Mad, have had a positive start to the year and that franchisee recruitment has improved.
Overall, the group is trading well, and the board looks forward to the remainder of the year with confidence.”
Diversified Gas & Oil (DGOC.L) 120p £822.5m
Diversified Gas & Oil, a U.S.-based owner and operator of natural gas, natural gas liquids, oil wells and midstream assets, announced on 27 March 2019 that it had signed a conditional sale and purchase agreement to acquire certain gas producing assets from HG Energy II Appalachia, LLC for a total cash consideration of approximately $400m. The Company is pleased to announce that the Acquisition has now been completed.
The Acquisition of the mature, unconventional assets continues Diversified’s strategy of acquiring stable, long-life, low-decline producing assets in a focused region and complement the Company’s existing conventional and unconventional asset base across the Appalachian Basin. The Acquisition of the 107 gross producing wells and related surface rights increases Diversified’s pro-forma net daily production by approximately 30% to over 90,000 barrels of oil equivalent per day. As previously announced, the Aquisition is immediately accretive on a variety of per-share metrics including earnings and free cash flow through significant top-line revenue growth coupled with a further reduction of unit-level operating expenses.
Ovoca Bio (OVB.L) 7p £5.51m
Ovoca Bio announced that its subsidiary IVIX LLC has commenced the process of preparing an integrated Clinical Development Plan for its investigational drug candidate, Libicore (BP-101), for both the US and EU regions with Biorasi LLC, an experienced US-based contract research organization.
The Medical and Scientific Affairs team from Biorasi will lead the preparation of the integrated CDP for inclusion in the clinical section of the submission dossiers under the Scientific Advice procedure at the German Federal Institute for Drugs and Medical Devices and for a pre-IND (Investigational New Drug) meeting process with the US FDA. During consultations with these regulatory agencies, it is planned to review pre-clinical and clinical data, and manufacturing operations for BP-101, and to gather the agencies’ comments on the proposed development program and study design. It will be an important step for the program to confirm BP-101 development plans that will be acceptable in Europe and the US.
Inland Homes (INL.L) 61.5p £124.3m
Inland Homes, the specialist brownfield land development and housebuilder with a focus on the South and South East of England, provided an update on its site at West Cliff Road, Bournemouth.
On 25 June 2018 Inland Homes announced that it had signed a pre-let with Premier Inn for a 25-year lease, with a starting rent of £0.59m p.a for West Cliff Road. The site is currently under construction for 88 apartments and a 105-bed hotel. On 27 Nov 2018 the Company announced that it had signed a conditional forward sale of the site to Aviva Investors for £13.3m. Inland Homes now announced that the conditions to the agreement have now been satisfied and therefore, on completion of the hotel (estimated Dec 2020), Inland will receive £13.266m for the freehold interest.
Inland Homes also advised that it is moving to a purpose-built headquarters of 10,000 sq. ft at Burnham Yard, London end, Beaconsfield, Buckinghamshire HP92JH on 29 April 2019. This will be the Group’s new registered office.
Sareum Holdings* (SAR.L) 0.72p £20.13m
Sareum Holdings, the specialist small molecule drug development business, noted that two abstracts reporting updated clinical data from ongoing Phase I/IIa trials with SRA737 have been accepted for presentation at the American Society of Clinical Oncology (ASCO) Annual Meeting held between 31 May – 4 June 2019 (Chicago, IL, USA). The abstract titles (below) have been published on the ASCO website and the full abstracts will be published on 15 May at 5pm EST (10pm BST). Both abstracts are scheduled to be presented on 1 June 2019.
Abstract 3094: A first-in-human phase I/II trial of SRA737 (a Chk1 Inhibitor) in subjects with advanced cancer.
Abstract 3095: A phase I/II first-in-human trial of oral SRA737 (a Chk1 inhibitor) given in combination with low-dose gemcitabine in subjects with advanced cancer.
SRA737 is a potent, highly selective, orally bioavailable small molecule inhibitor of Checkpoint kinase 1 (Chk1), a key regulator of cell cycle progression and the DNA Damage Response (DDR). SRA737 is licensed to Sierra Oncology and is currently being investigated in two Phase I/II clinical trials primarily focused on patients with ovarian cancer: SRA737-01, a monotherapy study, and SRA737-02, a drug combination study evaluating SRA737 potentiated by non-cytotoxic low dose gemcitabine.
CIP Merchant Capital (CIP.L) 68.5p £37.68m
CIP Merchant Capital announced its investment in CareTech Holdings plc, a leading provider of specialist social care services supporting adults and children with a wide range of complex needs in more than 250 specialist service centres around the UK. The Company has acquired, in aggregate, 950,000 ordinary shares in CareTech for a total consideration of approximately £3.2m.
In the year ended 30 Sept 2018, CareTech had net income attributable to its shareholders of £26.5m and as at 30 Sept 2018 had net assets of £208m.
CareTech now constitutes the Company’s fifth portfolio company.
The Company has also acquired a further 6,000 common stock in Orthofix Medical Inc., the NASDQ listed medical devices company, for a total consideration of approximately $0.32m. These shares were purchased in addition to the 9,000 common stock purchased on 11 and 12 March 2019, as noted in the Company’s announcement of 1 April 2019, for a total consideration of $0.5m.
In the year ended 31 Dec 2018 Orthofix had net income of $13.8m and as at 31 Dec 2018 had net assets of $335.4m.
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 email@example.com with “unsubscribe me”.