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