Small Cap Feast

Small Cap Feast – 26 June 2019

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

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

Sareum Holdings* (SAR.L) 0.42p £12.17m

The specialist small molecule drug development business announced on 25 June 2019 the launch of a fundraising comprising a placing by Hybridan LLP in conjunction with an offer via PrimaryBid .

“The Company is pleased to announce that the PrimaryBid Offer successfully completed and closed at 9:00 p.m. on 25 June 2019.

Following the successful closing of the Offer, the Company has raised gross proceeds of £681,484 at 0.4 pence per ordinary share via the Fundraising.”

The net proceeds of the placing will be used to progress the Company’s TYK2/JAK1 drug development programmes as well as for working capital purposes.

“We are focused on advancing these exciting preclinical candidates towards human trials as quickly as possible, aiming for first-in-man studies to begin in 2020.”

Vianet (VNET.L) 128.5p £36.4m

AGM statement from the international provider of actionable data and business insight through devices connected to its Internet of Things. “The good momentum experienced last year has continued into the new financial year, with the Group’s trading in the first two months being slightly ahead of the Board’s expectations. Positive results are coming from our focus on strong growth opportunities in the Smart Machines division, whilst delivering technology upgrades for customers of Smart Zones. Smart Machines’ leading end-to-end product suite and established presence continues to create strong growth opportunities across the UK and Europe, with further contracts won in the past months. Encouraging progress has been made on the significant opportunity to overlay circa 200,000 Vendman mobile connections with higher value Smart Machines connections and cross sell from the integrated portfolio to existing customers and vending operators internationally. “

Tekcapital (TEK.L) 11.74p £m

“The UK intellectual property (IP) investment group focused on creating marketplace value from investing in university technology, is pleased to announce that its portfolio company Belluscura plc has received commitments for £725,000 of additional funding at 15p/share and is on track to receive FDA clearance later this year followed by commercial launch in H1 2020.”

Belluscura has developed a patented portable oxygen concentrator called the X-PLOR, that can deliver 96% pure oxygen to patients 24/7.  According to the Company, the X-PLOR is designed to replace metal oxygen tanks and heavier devices.

According to the British Lung Foundation, in the U.K. an estimated 1.2 million people are living with diagnosed COPD. Globally, the medical portable O2 concentrator market is expected to grow from $1.4bn in 2018 to $2.4bn by 2024, with a CAGR of 9%.

Ananda Developments (NEX:ANA) 0.29p £1.2m

Progress in the Company’s work towards applying for a United Kingdom Controlled Drug Cannabis (with THC content >0.2%) cultivation, production, possession and supply licence from the UK Home Office.

– Formalisation of JV arrangements with Anglia Salads Limited and JE Piccaver & Co Limited, to create DJT Group Limited.

– DJT Group owns 100% of DJT Plants Limited DJT Plants which previously held a Licence

– Tiamat Agriculture Limited 100% owned by Ananda, and Anglia Salads (owned jointly by JEPCO and interests of David Edwards, who was directly responsible for all DJT Plant’s previous cannabis cultivation activities), now own 50% each of DJT Group.

– Centre of Excellence created for delivery of the DJT Group’s shareholders’ existing specialist agricultural and cannabis growing expertise.

Trackwise Designs (TWD.L) 135.5p £20m

AGM Statement from the provider of specialist products using printed circuit technology . “We have enjoyed a promising start to the year, building on the progress made since the IPO in June 2018. The Radio Frequency division continues to provide a steady, profitable basis for the business. The management team are making good progress with the introduction of the Company’s proprietary Improved Harness Technology (“IHT”) to the broader market. ”

“Of note in the first few months of the year has been the successful delivery of the second ship set for the wiring harness of a UAV/High Altitude Pseudo Satellite for a US aerospace OEM and the expansion of our customer opportunities within the medical sector, where we now have four active development opportunities.   The new business being won and developed is by its nature lumpy in its quantum and drawn out in its adoption, due to the need to configure technical aspects of the product in conjunction with our customers’ technology. However, each new project has the potential to generate significant revenue over the long-term due to the size of the end markets. “

The Company is currently trading in line with market expectations. 

Dillstone Group (DSG.L) 33p £6.5m

AGM Statement from the supplier of software and services to the recruitment industry. “The major focus for 2019 is the Group restructuring exercise which is progressing well with the expanded office space in Basingstoke already fully functional.  We expect that our London facility will be completely vacated by September of this year and the majority of our employees are expected to remain with the Group. “

“GatedTalent continues to progress well and we are currently expecting it to start to make a profit at EBITDA level (before group charges) by September 2019.  The Board is confident that the restructuring will deliver long term benefits to all stakeholders and is optimistic for the future.”

Sumo Group (SUMO.L) 1.5p £223m

AGM Statement from  Sumo.  “We are now nearly halfway through our second year as an AIM quoted company and earlier this month celebrated the 16th anniversary of the founding of Sumo Digital. We continue to create strong demand for the Group’s services. Our talented and highly skilled people, our proprietary technologies and systems and our close relationships with the world’s largest AAA games publishers give us a significant competitive advantage, which will enable us to leverage the increasing opportunities presented by our fast-growing global market. The Association for UK Interactive Entertainment (UKIE) reports that the UK market for games was valued at a record of £5.7bn in 2018, representing +10.0% growth on the previous year. Newzoo expects the global games market to grow from $152.1billion in 2019 to $196 billion by 2022.  This leaves us full of optimism for the future of our business, and the Group’s business development pipeline is currently very strong. “

“The Company is trading in line with current market expectations and with its strengthening cash profile the business is well positioned to take advantage of the strong growth in the global video games market.

Clinigen (CLIN.L) 1023p £1355m

The global pharmaceutical and services company, has been granted marketing authorisations for Melatonin 1mg/ml Oral Solution and Melatonin 3mg Film-Coated Tablets by the Medicines and Healthcare products Regulatory Agency (MHRA). Both forms are indicated for the short-term treatment of jet-lag in adults.

Obtaining marketing authorisations for a previously unlicensed product is an example of the unlicensed to licensed (UL2L) strategy in the Commercial Medicines business and follows the successful launch of previous products in the portfolio, including Glycopyrronium Bromide Oral Solution.

Overall the Group expect the products to be a modest contributor of growth within Clinigen’s Commercial Medicines business in the FY20E period, offsetting an expected decline from its supply as an unlicensed product from within its Unlicensed Medicines business.

ImmuPharma (IMM.L) 11.38p £15.9m

The specialist drug discovery and development company, has entered into a subscription agreement with Lanstead Capital Investors LP “with a related sharing agreement, raising approximately £2.66 million.

The £2.66 million gross proceeds of the Subscription will be pledged by the Company pursuant to the Sharing Agreement with Lanstead. The Sharing Agreement, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, structured to commence two months following the admission to AIM of the Subscription Shares, subject to adjustment upwards or downwards each month depending on the Company’s share price at the time. 

The proceeds of the Subscription will be used primarily to fund the execution of the Company’s corporate strategy as announced on 7 May 2019. This includes progressing Lupuzor™ through both corporate partnerships and regulatory pathways and proactively pursuing the ‘spin-off’ of the subsidiary companies, Ureka and ELRO.

FastForward Innovations (FFWD.L)

Announcement from investee company  (1.99%) Intensity Therapeutics.

The “clinical-stage biotechnology company pioneering a novel, immune-based approach to treat solid tumor cancers through direct injection of its proprietary therapeutic agents, today announced that it has entered into an agreement with Merck (known as MSD outside the United States and Canada), through a subsidiary, to evaluate the combination of Intensity’s lead product candidate INT230-6 and KEYTRUDA® (pembrolizumab), Merck’s anti-PD-1 (programmed death receptor-1) therapy, in patients with advanced solid malignancies including pancreatic, bile duct, squamous cell and non-MSI high colon cancers.”

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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