Small Cap Feast

Small Cap Feast – 24 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 893

Total number of AIM Companies trading: 818*
* As at 17 June

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 17 June

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 17 June

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange

Clean Invest Africa (NEX:CIA)—readmission and all share RTO of CoalTech (South Africa) engaged in agglomerating coal fines into coal pellets through the commercialisation o f its proprietary binding technology. Due early Aug.

Main Market (Premium)

Airtel Africa Limited — provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa, looking to join the premium segment of the main market. Offer TBC, expected TBC

ReAssure Group plc  –  The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market.

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. TBC

AIM

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 Expected market cap of £36.5m

Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for non-speculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

Rumours & Speculation

Neptune Surf Technology plc*, a vertically integrated lifestyle accessory group focused on the surf market, designing its own high-performance wetsuits and surfing hardware and distributing these together with third party brands globally with key markets being Europe, Australia and USA and Brazil, is looking to join AIM and ‘is planning an £11m float’ according to The Sunday Telegraph.

Breakfast Buffet

Salt Lake Potash (SO4.L) 40p £98m

SO4 has commenced pumping the Williamson Pit brine into a commercial scale Sulphate of Potash (SOP) brine evaporation pond at its Lake Way Project.

Pumping of the high grade SOP brine from Williamson Pit has now commenced

De-watering is expected to be finished during Q3 2019 ensuring the evaporation process will be underway during the summer months and provide the initial feed salts for the process plant

Salt Lake Potash has commenced a Bankable Feasibility Study (BFS) for a commercial scale 200ktpa Sulphate of Potash development at Lake Way, targeting completion in Q3 2019

Velocity Composites (VEL.L) 22p £7.9m

“The  supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, today announces an update to the process to re-constitute the Board.

At the AGM, the Board announced a process for the re-constitution of its membership. At that time, it was agreed that Mark Mills would step down from the Board and his role of Executive Chairman. At the same time, Jon Bridges (former CEO and Board member) was appointed as the Interim CEO and Andrew Hebb was confirmed as continuing as the Interim CFO and Company Secretary. Neither of the interim roles are members of the Board and both report directly to the Board.” A search for new Board members began. However the Founders have made clear that they do not support the Board’s process and instead have proposed an alternative approach to re-constituting the Board which was rejected. Discussions are ongoing.

Thor Mining (THOR.L) 0.9p £7.35m

Final follow up lab assay results from the recent Bonya RC drill program confirm the previously reported portable XRF results . Tungsten highlights from White Violet include;

27m @ 0.29% WO3 from 35m including 16m at 0.31% Cu from 43m and 7m @ 0.2% WO3 from 67m; White Violet hole 19RC020

12m @ 0.67% WO3 from 46m; 25m @ 0.39% WO3 from 63m and; 5m @ 0.1%WO3 from 96m; White Violet hole 19RC021

29m @ 0.70% WO3 from 81m; including 13m at 1.13% WO3 from 91m; White Violet hole 19RC022

Tungsten highlights from Samarkand include;

13m @ 0.48% WO3 from 19m; Samarkand hole 19RC026

8m @ 0.45% WO3 from 38m; Samarkand hole 19RC028

Tungsten highlights from Samarkand include;

13m @ 0.48% WO3 from 19m; Samarkand hole 19RC026

8m @ 0.45% WO3 from 38m; Samarkand hole 19RC028

“In the event that follow up drilling leads to the definition of mineral resource estimates, there is potential to add materially to both the life and financial outcomes at the Company’s Molyhil project”

AFC Energy (AFC.L) 5.5p £23.4m

The alkaline fuel cell power company, today confirms plans to manufacture and showcase its latest zero emission, off grid, multi-vehicle Electric Vehicle (“EV”) charging system in the fourth quarter of 2019.

New EV charging system to be showcased in a national roadshow due to start in Q4 2019, launched with a customer day hosted by Rolec Services Limited (“Rolec”).

State of the art hydrogen fuelled system supported by Rolec’s EV charging infrastructure to meet industry and customer standards for rapid and ultra-fast charging.

Designed to displace or defer the need for significant investment in short to medium term grid upgrades provoked by the exponential growth in EVs.

Company to appoint sales and marketing team to develop sales opportunities in collaboration with Rolec.

Has also raised£1.06m at 4.8p in a subscription.  A discount of 12 per cent to the close on 20th June.

Tern PLC (TERN.L) 11.65p £29.63m

The investment company specialising in the Internet of Things (“IoT”), is pleased to announce that Wyld Networks Limited, the technology inventor for communications at the edge of the internet in which Tern has a 100% holding, has been awarded a £121,344 grant by Innovate UK to collaborate on a new mass production technology, SmartDrop, for Archipelago Technology Group Ltd.

 Tern is also pleased to announce that Alastair Williamson has been appointed as CEO of Wyld Networks (over 28 years’ experience working for technology companies including Krone, Lucent and most recently, Ranplan Group AB, where he acted as CEO and VP of Sales working to develop the company’s customer base and successfully raising $7m with an IPO on NASDAQ First North in Sweden in 2018).

Sensyne Health (SENS.L) 122.5p £158m

The British Clinical AI technology company, today announces that it has entered into a new strategic partnership with Evotec SE (Frankfurt Stock Exchange: EVT), a global drug discovery and development company, with the University of Oxford, Oxford University Innovation Ltd (OUI) and Oxford Sciences Innovation (the world’s largest IP investment company dedicated to a single university) aimed at accelerating the translation of research in the fields of clinical artificial intelligence and digital health at Oxford).

Projects will be sourced exclusively from University of Oxford researchers via OUI across therapeutic areas and modalities and will be aided by an expert in residence seconded by Sensyne Health to the LAB10x initiative and embedded  in the University.

Tiziana Life Sciences (TILS.L) 69.5p £95m

Newly Published Article Reporting Clinical Activity of Orally Administered OKT3, a Mouse Anti-CD3 Monoclonal Antibody, in Moderate to Severe Ulcerative Colitis Patients, Supports Tiziana’s Oral Monoclonal Antibody Platform. Shows orally administered anti-CD3 resulted in anti-inflammatory gene expression with no serious treatment related adverse events up to a dose of 1 mg of OKT3.

Tiziana’s platform oral monoclonal antibody (mAb) technology applicable to mAb’s on the market today which are currently available only through IV, addressing an enourmous market potential.

Tiziana’s Foralumab is the first fully human anti-CD3 mAb which has not shown anti-drug antibody (immune reaction) in humans

MySale (MYSL.L) 0.03p £10.34m

The leading international online retailer, announces that the board of the Company has decided to commence a review of the Group’s options with a view to maximising value for its stakeholders .

The Strategic Review will consider all types of corporate activity, including options to raise additional capital to support the ongoing restructuring and rationalisation of the Group, reduce the Group’s debt, the sale of certain parts of the Group or the whole of the Group and de-listing of the Company’s shares to trading on AIM. The Strategic Review will include a formal sale process of the Company, further details of which can be found below. Initiatives  have already been commenced in order to rationalise the business and implement a number of cost saving measures.

600 Group (SIXH.L) 18.9p £21.35m

Acquisition of US-based Control Micro Systems Inc. (‘CMS’), an industry-leading solutions provider for integrated laser applications.

CMS provides turnkey, custom-designed and fully-automated laser process machines and systems to a diverse base of US and international blue-chip customers across a range of industries, including industry-leading positions in the high-growth precision medical equipment, pharmaceutical and aerospace sectors.

Total consideration of $10m comprising a cash consideration of $9m and $1m of 600 Group plc shares.

The business has grown consistently over recent years with revenues for the year ended 31 December 2018 of $11.6m generating a reported pre-tax profit of $1.2m. Gross assets at 31 December 2018 were $7m including cash and cash equivalents of $3.1m.

Immotion Group (IMMO.L) 9.75p £24.4m

The UK-based immersive virtual reality  ‘Out of Home’ entertainment group, announced an exclusive aquarium partnership with Shedd Aquarium in Chicago, USA, one of the largest aquariums in the world boasting 1.9m visitors annually.

Shedd Aquarium was the first inland aquarium in the United States, opening its door in May 1930. With over 1.5m species, the Shedd Aquarium is one of the top aquariums in the world.

In addition to Shedd, Immotion has signed a partnership with Mote Marine Laboratory & Aquarium in Sarasota, Florida.  Mote is a leader in research and conservation and is one of the most popular aquariums in the region. Both Shedd and Mote will offer guests the Company’s ‘Undersea Explorer’ VR Cinematic motion pod with a range of underwater experiences that are already proving to be very popular with current aquarium and zoo partners.

 Both Shedd and Mote will operate under the Company’s partnership arrangement, with both Immotion and the aquarium partner sharing revenue generated from the ‘Undersea Explorer’ VR Cinematic pods.

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.