Small Cap Feast
Small Cap Feast – 25 March 2019
Dish of the Day:
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Off the Menu:
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What’s Cooking in the IPO Kitchen?
Main Market (Premium)
US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 16 April
Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%.
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.
Asiamet Resources (ARS.L) 6.8p £66.21m
Updated Mineral Resource Estimate for the Beutong Copper-Gold Project located in Nagan Raya Regency, Aceh, Indonesia. Beutong is a large high-quality copper, gold, silver, molybdenum deposit outcropping at surface and remaining open laterally and at depth.
34Mt @ 0.67% Cu, 0.13g/t Au, 1.68g/t Ag and 90ppm Mo in the Measured category
56Mt @ 0.58% Cu, 0.12g/t Au, 2.07/t Ag and 104ppm Mo in the Indicated category
419Mt @ 0.45% Cu, 0.13g/t Au, 1.14/t Ag and 125ppm Mo in the Inferred category
Further drilling campaigns will be directed to growing the deposit well beyond the current Resource envelope, testing the potential for a high grade core at depth, and exploring early stage development options for the project.
Leeds Group (LDSG.L) 20.5p £6.42m
“As noted in our Interim Report, trading performance at our operating subsidiaries has been challenging with increased competition in a reduced market in the first half of the year. Despite this, the Board believed, at that time, that the underlying profit before tax for the full year would be at a higher level than last year.
However, the trading performance of the operating subsidiaries in the second half of the year has been below the Board’s expectations as market conditions have not improved and this is expected to continue for the rest of the financial year. The Group PBT for the full year is therefore expected to be below the Board’s expectations for the current financial year.”
The Group is totally focused on the import and sale throughout the world of fabric imported chiefly from the Far East.
Grafenia (GRA.L) 12.5p £8.64m
£1.1m subscription at 13.5p.
“The Board has a clear strategy to accelerate the growth of Grafenia through the acquisition of sign businesses and to open further Nettl Business Superstores. In addition to this, and as noted in the Company’s announcement on 17 Jan 2019, the Board is also investing in its Production Hub at Trafford Park, Manchester.
The Board intends to use the net proceeds of the Subscription for multiple purposes: to relocate and integrate Image Everything’s operations into the Group’s main production hub in Manchester, to invest in the launch of Nettl of America, to make further small acquisitions and for the Group’s general working capital requirements.”
Conrad Bona, non-executive director subscribing to 222,222 shares.
Be Heard (BHRD.L) 1.2p £11.97m
FYDec18 results from the tech, media, data & creative specialists. “Good revenue growth with improved operational efficiencies” .
Group revenue increased by 51% to £29.5m (2017: £19.6m)
Like-for-like revenue growth of +15%
Adjusted EBITDA increased by 90% to £3m (2017: £1.6m)
Loss from operations £(9.7)m after non-cash impairment charge of goodwill and intangibles of £8.4m and £1.7m of exceptional costs (2017: £(3.9m)). Cash generation improved by £2.4m with cash generated from continuing operation of £0.8m
“The new financial year has started positively, against an unsettling market environment and the financial constraints of the Group. Assuming reasonable trading weather ahead, I expect to be able to report positive news as the year progresses.”
Premier Technical Services Group (PTSG.L) 122p £150.9m
The niche specialist services provider, announced new £40m committed facilities together with a £10m accordion with HSBC.
“The Group’s turnover and underlying levels of EBITDA have more than trebled since the original facilities were agreed in 2015. These enlarged facilities, at better margins, provide us with further headroom to allow PTSG to continue to create ongoing shareholder value through organic growth and carefully selected acquisitions.”
Evgen Pharm (EVG.L) 25.5p £20.19m
The clinical stage drug development company focused on the treatment of cancer and neurological conditions, announced positive headline results from the open-label Phase II trial of SFX-01 in 46 patients with estrogen-positive (ER+) metastatic breast cancer.
Conclusive evidence of anti-cancer activity via objective responses (tumour shrinkage)
24% of patients show a durable clinical benefit for at least 6 months, despite the late stage of disease and patients’ established resistance to hormone therapy
Mild and favourable side effect profile for an anti-cancer drug
Further development of SFX-01 planned for earlier stage patients as an adjunct to a second line hormone therapy to delay onset of resistance.
RA International (RAI.L) 37p £63.36m
The “leading provider of services to remote locations in Africa and the Middle East, announced today that it has signed a Master Service Agreement with IAP Worldwide Services, Inc.
Under the terms of the agreement, RA International will provide supply chain services to IAP on a global scale. The first order issued to RA International is to provide services in sub-Saharan Africa for a total value of up to $8.5m. This order will run until 2023, with services already underway.”
Ovoca Bio (OVB.L) 8p £5.51m
Ovoca Bio plc’s Libicore (BP-101) Meets Primary/Secondary Endpoints in Phase 3 Trial for Hypoactive Sexual Desire Disorder Ahead of Time .
Phase 3 study of Libicore (BP-101) for hypoactive sexual desire disorder (HSDD) in premenopausal women met the pre-specified primary efficacy endpoint of improvement in number of sexually satisfying events:
The pivotal clinical trial, evaluating the efficacy and safety of Libicore (BP-101) versus placebo was stopped early based on the achievement of pre-specified efficacy criteria.
Following these results, Ovoca anticipates filing for approval of Libicore (BP-101) in the Russian Federation, where the clinical program has been conducted to date, in the Q2 of 2019.
Oakley Capital (OCI.L) 200p £404.71m
Acquisition of UNIT4 Business Software Ibérica, S.A. (“Ekon”), a leading Spanish provider of business software. The company generates revenues of c.€20m from sales of its integrated software suite, which includes solutions for finance, payroll and CRM, as well as dedicated vertical modules for manufacturing, wholesale, health, retail and construction. OCI’s indirect contribution through its interest in Fund III, is expected to be approximately £20m.
RedT Energy (RED.L) 1.57p £9.69m
“Further to the announcement made on 14th March, redT energy plc, the energy storage solutions company, announced it has signed heads of terms to partner with Statkraft, Europe’s largest generator of renewable energy, to provide a fully financed ‘solar plus storage’ solution to UK commercial and industrial customers. This is the first time a solar plus storage product, financed under a Power Purchase Agreement model has been offered to the UK market.”
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