Small Cap Feast

Small Cap Feast – 23 October 2018

Dish of the Day:

AVI Japan Opportunity Trust, with the objective of the Company to provide Shareholders with capital growth in excess of the MSCI Japan Small Cap Index, has joined the Premium segment at 100p

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Nova Ljuublianska banka—financial and banking institution based in Slovenia with a network of 349 branches,  dual listing process in Ljubliana with GDRs in London. For HYJun18 and for FY17 the Group recorded a net profit equal to EUR 104.8 million and EUR 225.1 million, respectively. 50% plus sell down.  Prospectus due for release 26 Oct.

Merian Chrysalis  Investment Co –Seeking a £200m raise.  Due 6 Nov. Objective is to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies .

Sirius Aircraft Leasing Fund targeting a raise of US$250m  – objective is to provide investors with an attractive level of regular income and capital returns through investing primarily in used, single-aisle aircraft. Due early Nov

Main Market (Standard)

ECI Telecom— provider of comprehensive networking and data transport products and solutions. Raising c.$230m and potential sell down. Due late Oct

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due end Nov.

Gresham House Energy Storage Fund  – will invest in utility-scale  Energy Storage Systems in the UK. Raising up to £200m. Due 5 Nov.

Blue Ocean Maritime Income  – aims to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.  Raising up to $250m. Due 23 Oct.


Renalytix AI—developer of artificial intelligence (“AI”) decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings  (AIM-EKF).  total fundraising in the range £21 – 25 m. Mkt cap – c. £67.5- £71.0m. Due 2 Nov.

Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October.

Azalea Energy—oil and gas production and development company based in Louisiana, United States.  Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct

Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

NEX Exchange

Auxico Resources—Proposed dual listing of  the Canadian listed precious and base metals  company engaged in the acquisition, exploration and development of mineral properties in Colombia and Mexico.  Due 26 Oct. Mkt cap C$7.8m

Breakfast Buffet

TMT Investments* (TMT.L) 2.28p £51.3m

TMT Investments, the venture capital company investing in high-growth technology companies across a number of core specialist sectors, announced the following portfolio update.

In Aug 2018, the Company invested $0.2m in eAgronom, an Estonian SaaS company, built by farmers for farmers. In July 2018, the Company invested $0.1m in FriendlyData, a natural language search interface for enterprise data. In Oct 2018, FriendlyData was acquired by ServiceNow (NYSE:NOW), thus making TMT’s investment in FriendlyData the quickest profitable exit for the Company to date. Taxify, a leading international ride-hailing company, continues to grow rapidly. TMT recently invested $0.1m in two other pre-ICO transactions.  Both pre-ICO investments were successful, and the Company has already generated a cash profit from those transactions, with some tokens still unrealised.

TMT shares trade at a significant discount to the Company’s latest announced bonus-adjusted NAV of $2.75 per share (as of 30 June 2018).


Avingtrans (AVG.L) 223.5p £69.11m

Avingtrans, which designs, manufactures and supplies critical components, modules and associated services to the energy and medical sectors announced the acquisition of 100% of the issued share capital of Tecmag, Inc of Texas USA for a total consideration of $243k, including the assumption of Tecmag’s debt.

Tecmag, based in Houston, Texas, USA, with 11 members of staff, was formed in 1983 by its founder John Delayre. It designs, manufactures, tests and installs instrumentation, including full consoles, system upgrades, and solid-state probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems.

This continued expansion and strengthening of the Group’s Medical Division provides the platform for further investment in the imaging sector, ultimately driving towards future profitable growth.


Coral Products (CRU.L) 10.25p £8m

Joe Grimmond, Non-executive Chairman, will make the following statement at the AGM of the company scheduled for 12 noon today:

“I am pleased to announce that with five months of the current financial period completed, management accounts confirm a very much improved performance to date.

Sales, gross margin, EBITDA and profit before taxation are all already materially ahead of the full six month period to 31 October 2017.

With October well advanced we expect a much-improved performance overall for the six months to 31 October 2018.

We remain confident of further progress in the coming year.”


Nexus Infrastructure (NEXS.L) 182.5p £68.6m

Nexus Infrastructure, a leading provider of essential infrastructure services to the UK housebuilding and commercial sectors, announced a trading update ahead of its annual results for the financial year ended 30 Sept 2018 which will be announced on 10 Dec 2018.

The Board expects the Group’s profits for the full year ended 30 Sept 2018 to be in line with its expectations. The Board is encouraged by the level of growth in the Group’s order book which has been aided by growth in each of the Group’s divisions: Tamdown’s order book is up by 31% to £142.4m, TriConnex by 55% to £146.5m and eSmart Networks to £0.8m. The Group order book ended the year at £289.7m, a 43% year-on-year increase which provides Nexus with good visibility for the year ahead. The Group is also pleased to report a continued high cash and cash equivalent balance of £26.4m (2017: £27.1m), resulting in net cash of £20.0m (2017: £18.7m).


Collagen Solutions (COS.L) 3.1p £10.06m

Collagen Solutions, the developer and manufacturer of medical grade collagen-based biomaterials for use in research, diagnostics, medical devices, and regenerative medicine, provides an update on trading for the six months to 30 Sept 2018.

Revenue and other income is expected to be £2.10m (H1 2017: £1.86m), representing a 13% increase on the prior year. Revenue performance has been buoyed by new development agreements closed in the first quarter of this financial year, more than offsetting previously announced delays in customer projects and inventory adjustments. As anticipated, our development business will comprise nearly half of our overall business this financial year.

New customer acquisition continues with nine new customer deals, representing an increase in the number of new customers over the same period last year (H1 2017:  eight). The average expected value of those customer acquisitions also increased. In addition, the tissue business unit has several pending agreements. These agreements typically take three to six months to negotiate, with supply agreements expected to follow within a further twelve to eighteen months.


Corero Network Security (CNS.L) 11.5p £44.02m

Corero Network Security, the network security company, announced a $0.6m order for its 100Gbps SmartWall® Threat Defense System technology with a global cloud security company; and a $0.4m expansion order for Corero’s 10Gbps SmartWall technology from an existing customer. 

The $0.6m new customer order consists of multiple SmartWall 100Gbps products with supporting SecureWatch® services for one year. It follows a successful proof-of-concept trial which recognised SmartWall as the technology best-placed to protect the customer’s cloud security offering following its move to 100Gbps internet connectivity in its data centres, a move necessitated by its business needs. The $0.4m existing customer order, which includes multiple SmartWall products with supporting SecureWatch® services for three years, forms part of this customer’s ongoing global deployment of SmartWall.

Further orders are anticipated from both customers in the final quarter of 2018 as part of their ongoing expansion and SmartWall deployment plans.


Directa Plus (DCTA.L) 50.5p £21.44m

Directa Plus, a producer and supplier of graphene-based products for use in consumer and industrial markets, announced the receipt of two orders from an Italian workwear customer with an aggregate value for Directa Plus of approximately 0.5m over the next two financial years, demonstrating continued commercial progress in textiles, one of the Company’s key markets.

Directa Plus’s Planar Thermal Circuit® graphene technology will be incorporated in some 10,000 workwear garments. The first order for approximately 2,000 garments with a value for Directa Plus of €150,000 is expected to be delivered in the 2018 financial year, with the second order for approximately 8,000 garments with a value of €0.35m expected to be delivered by mid 2019.

“This new order illustrates the commercial traction we have built in the very large workwear sector, as well as our determination to deliver significant orders in the shortest possible time from announced initial collaborations.”


Petro Matad (MATD.L) 6.32p £40.72m

Further to the operational update of 1 Oct 2018, Petro Matad Limited, the Mongolian oil explorer, announced the spud today of the Wild Horse-1 exploration well in the Baatsagaan Basin in Block IV in Western Mongolia. The well is targeting substantial prospective resources of 480 million barrels of oil.

The programmed total depth of the well is 2,200m and it is expected to take between 30 to 45 days to drill and log. In the latter case, this would see drilling operations continue into December. Although winter weather in the area is milder than in Eastern Mongolia, some modifications have been made on the rig to enhance its operability in low temperatures and the Company is confident that this will enable completion of well operations before the winter drilling shutdown.


Arc Minerals (ARCM.L) 3.8p £23.66m

Arc Minerals reported that it is this week to commence a comprehensive high resolution airborne geophysical survey over its Zamsort Copper-Cobalt Project. The airborne survey will cover c. 1,000 km² which hosts a number of targets in addition to the Kalaba copper cobalt prospect where the Company is currently conducting an 11,000-metre drilling programme.

The Ultra-Low-Level Magnetic and Radiometric airborne geophysical survey will be completed by Xcalibur Airborne Geophysics (Pty) Ltd. The survey will be conducted over the entire Zamsort license area and comprises 5,218 line-kilometres. Flying will commence this week and is expected to take around 2 weeks to complete following which the data will be processed, and further targets identified.


Keras Resources (KRS.L) 0.36p £8.01m

Keras Resources, the  mineral resource company, noted the update released by Calidus Resources Limited (ASX:CAI) regarding the implementation of a definitive agreement with Pacton Gold Inc (TSXV:PAC). The definitive agreement concerns the disposal of non-core conglomerate gold rights over certain tenements at Warrawoona in consideration for 7,000,000 shares in Pacton. The agreement will be completed within 50 days of today’s announcement.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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