Small Cap Feast

Small Cap Feast – 25 July 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 888

Total number of AIM Companies trading: 806*
* As at 19 July 2019

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 87*

Total number of NEX Growth Market Companies trading: 85*
* As at 19 July 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 87*

Total number of Standard List Companies trading: 85*
* As at 19 July 2019

Dish of the Day:

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Off the Menu:

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Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Main Market

Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, which may value the financial technology company at $1.3 billion to $1.5 billion.

Main Market (Specialist Funds)

Voyager AIR  The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.

AIM

Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.

NEX

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 30th July

Breakfast Buffet

SimiGon (SIM) 10.50p £4.96m

SimiGon, a global leader in modelling, simulation and training solutions, announced that it was awarded a further strategic contract with the United States Air Force (“USAF”) to provide Virtual Reality (VR) systems for Columbus Air Force Base.

This Contract further strengthens SimiGon’s position in providing Virtual and Mixed Reality technologies for training.

Awarded as part of a USAF-wide, rapid innovation effort, the Contract clearly demonstrates to the market that SimiGon is a reliable integrator and supplier of VR and MR systems for its clients.

The Contract is also strategically significant for expanding SimiGon’s work to Columbus, Mississippi, an Undergraduate Pilot Training (UPT) air base.

The expected revenue from the Contract has already been factored into management’s expectations for the year ended 31 Dec 2019.

SimiGon President & CEO, Ami Vizer, said: “This VR systems supply contract is a natural fit for SimiGon, as we’ve been active in VR for almost two decades. SimiGon is well positioned to support USAF’s innovation efforts in the VR realm. We expect this contract to lead to additional VR supplier opportunities in the USAF and in the Government and Commercial training space.”

Thalassa Holdings (THAL) 79.00p £13.51m

Thalassa acknowledge the announcement put out by The Local Shopping REIT plc (“LSR”) today, in respect of the Tender Offer and Notice of General Meeting. The full text of which can be seen below.

Further to the Company’s announcement on 18 June 2019, LSR is today posting a circular to its shareholders (the “Circular”) containing full details of the proposed tender offer and capital reduction (required in order to create the distributable reserves necessary to implement the tender offer) and a notice of General Meeting to be convened for 10.00 a.m. on 20 August 2019. The Circular is also today being published on the Company’s website, details of which are set out below. A Proxy Form and Tender Form for use by LSR Shareholders who hold their LSR Shares in certificated form in connection with the General Meeting and Tender Offer, respectively, are also being despatched with the Circular.

The Proposals are conditional upon, amongst other things, the passing of the Resolutions at the General Meeting by the requisite majorities and the confirmation of the Capital Reduction by the Court.

Equals Group PLC (EQLS) 124p £198m

Equals Group, the e-banking and international payments group, announced that it has entered into a global relationship with Citi Commercial Bank.

The Group will leverage Citi’s extensive global footprint to enhance its current product offering and bring even more efficiencies to current processes. Citi has local settlement and clearance capabilities for payments in over 90 countries, which together will improve the customer experience through faster settlement and deliver improved economics for Equals in terms of reduced transaction costs. The partnership will also significantly increase the number of currencies Equals is able to offer clients, with more than 135 being available on Citi’s WorldLink platform.

“Citi is excited to be supporting the growth aspirations of Equals Group Plc through a combination of our global network and market-leading foreign exchange and cash management solutions.”

“We are delighted to have partnered with a global banking brand like Citi. This demonstrates our desire for innovation and commitment to providing best in class services to our clients. Partnering with Citi not only allows us to offer local clearing and settlement across the globe, but their WorldLink platform also has many other exciting pieces of functionality which will create efficiencies for the Group and our clients.”

Strategic Minerals (SML) 1.32p £20.55m

Strategic Minerals, a producing mineral company actively developing projects prospective for battery materials, notified the market that, further to the announcement dated 27 June 2019, it has settled the acquisition of New Age Exploration Limited’s (“NAE”) 50% holding in Cornwall Resources Limited (“CRL”).

SML has settled the acquisition of NAE’s 50% holding in CRL on the basis that, in lieu of the original structured cash components, SML made an initial A$0.29m payment, taking total cash paid to A$0.3m and agreeing an 11 month payment schedule for the balance of A$2.7m.

Payments of A$0.3m are to made quarterly before 31 Oct 2019, 31 Jan 2020 and 30 Apr 2020. The balance is then to be paid on or before 26 Jun 2020.

The interest rate on the balance of A$2.7m is 5% pa, calculated on a daily balance basis, payable at the end of each calendar quarter to allow for early repayment.

SML has provided NAE with a charge over the Company’s shares in CRL, a debenture charge over CRL’s property and, in the event of default, NAE has the option to convert any outstanding balances to SML shares at 90% of the VWAP for SML shares in the 10 trading days prior to the issue of the conversion notice.

Acquisition is completed upon the registration of charges

Frontier IP Group (FIPP) 68.50p £28.85m

Frontier IP, a specialist in commercialising university intellectual property, noted the following announcement from portfolio company Exscientia, a world leader in artificial intelligence (“AI”) drug discovery, that it has entered into a drug discovery collaboration with Rallybio.

Rallybio is a US-based drug development company aiming to transform the lives of patients with rare diseases.

Exscientia’s other partnerships include collaborations with Celgene, GSK, Roche, Sanofi, GT Apeiron and Evotec. Frontier IP currently holds a 3.25% stake in the Company.

Intelligent Ultrasound (MED) 11.75p £16.84m

Intelligent Ultrasound Group, the artificial intelligence (AI) based ultrasound software and simulation company, announced that it has entered into a collaboration with the National Imaging Academy Wales (NIAW) to develop artificial intelligence (AI) tools to aid ultrasound scanning and to enhance ultrasound education.

Both located in South Wales, NIAW and Intelligent Ultrasound share a common desire to improve ultrasound practice through education, innovation and research that will lead to improved clinical technique and as a result, improved patient care and outcomes.

Greatland Gold PLC (GGP) 1.99p £59.16m

Greatland Gold, the precious and base metals exploration and development company, announced the first results from Newcrest’s drilling campaign at Greatland’s 100% owned Havieron licence in the Paterson region of Western Australia. In addition, Greatland announced that a third rig has commenced operation at Havieron and a fourth rig is expected to arrive at site in August.

Greatland notes the release of the June Quarterly Exploration Report by Newcrest Mining Ltd, which states: “First drill results from the Havieron Project in Paterson province Western Australia have confirmed the presence of higher grade copper-gold mineralisation, with best results including 17m @ 21 g/t Au and 0.39% Cu from 1153m (HAD006 extension).”

TomCo Energy PLC (TOM) 6.65p £7.71m

TomCo Energy, the US operating oil shale exploration and development group focused on using innovative technology to unlock unconventional hydrocarbon resources, provided the following update regarding the field test programme at the Company’s Holliday A Block in Utah.

Further to the Company’s announcement of 4 July, the Company announced that the Field Test is running to schedule, with drilling works having already commenced and the Field Test team is due to arrive on site next week ahead of commencing the live testing phase of TurboShale Inc.’s RF technology in early Aug.

4d Pharma PLC (DDDD) 95p £62.22m

4D pharma, a pharmaceutical company leading the development of Live Biotherapeutics, announced an update on its oncology programmes. New preclinical data on the Company’s oncology candidates, MRx0518 and MRx1299, were presented at 1stMicrobiome Movement Oncology Response Summit in Boston, USA by Research Director Imke Mulder. A clinical progress update on MRx0518 was also provided by 4D’s Chief Scientific Officer, Alex Stevenson.

SimplyBiz Group PLC (SBIZ) 214p £204m

SimplyBiz, the independent provider of compliance, technology and business services to financial advisers and financial institutions in the UK, issued a pre-close trading update for the six months ended 30 June 2019.

In March 2019, the Group completed the acquisition of Defaqto, a financial information and technology business, through a debt and equity raise and has continued to grow the organic revenues and adjusted EBITDA of the Group.

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Derren Nathan
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derren.nathan@hybridan.com

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