Small Cap Feast

Small Cap Feast – 26 October 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 926

Total number of AIM Companies trading: 859*
* As at 19 October 2018

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): 89*

Total number of NEX Growth Market Companies trading: 86*
* As at 19 October 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 19 October 2018

Dish of the Day:

No Joiners Today

Off the Menu:

EF Realisation Company Limited Ord NPV has cancelled its listing.

Dish of the Day:

Auxico (Canadian Securities Exchange: AUAG), the Canadian listed precious (gold and silver) and base metals (coltan) company engaged in the acquisition, exploration and development of mineral properties in Colombia and Mexico, has joined the NEX Exchange today.

Off the Menu:

No Joiners Today

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Nova Ljuublianska banka—financial and banking institution based in Slovenia with a network of 349 branches,  dual listing process in Ljubliana with GDRs in London. For HYJun18 and for FY17 the Group recorded a net profit equal to EUR 104.8 million and EUR 225.1 million, respectively. 50% plus sell down.  Prospectus due for release 26 Oct.

Merian Chrysalis  Investment Co –Seeking a £200m raise.  Due 6 Nov. Objective is to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies .

Sirius Aircraft Leasing Fund targeting a raise of US$250m  – objective is to provide investors with an attractive level of regular income and capital returns through investing primarily in used, single-aisle aircraft. Due early Nov

Main Market (Standard)

ECI Telecom— provider of comprehensive networking and data transport products and solutions. Raising c.$230m and potential sell down. Due late Oct

Main Market (Specialist Funds)

The Global Sustainability Trust -aiming for attractive risk-adjusted returns by investing primarily in private market investments that are expected to have a positive environmental and social impact raising c.£200m. Due end Nov.

Gresham House Energy Storage Fund  – will invest in utility-scale  Energy Storage Systems in the UK. Raising up to £200m. Due 5 Nov.

Blue Ocean Maritime Income  – aims to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.  Raising up to $250m. Postponed.


Renalytix AI—developer of artificial intelligence (“AI”) decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings  (AIM-EKF).  Total fundraising in the range £21 – 25 m. Mkt cap – c. £67.5- £71.0m. Due 2 Nov.

Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA

Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October.

Azalea Energy—oil and gas production and development company based in Louisiana, United States.  Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct

Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

Breakfast Buffet

Redx (REDX.L) 7.5p £9.49m

Redx, the drug development company focused on cancer and fibrosis, announced that the Company has presented a poster, entitled ‘ROCK2 inhibitors for the treatment of chronic kidney disease’ at the American Society of Nephrology (ASN) Kidney Week 2018 in San Diego, CA, on 25 Oct 2018.

This first disclosure of the Redx ROCK2 selective inhibitor programme describes a series of potent and highly selective ROCK2 inhibitors that potently suppress the release of pro-fibrotic factors from kidney mesangial cells. In an in vivo model of acute kidney injury, the Redx selective ROCK2 tool compound reduced podocyte damage and the expression of inflammatory and profibrotic genes in the kidney. In addition, a telemetered rat study indicated that the Redx selective ROCK2 inhibitor avoids the cardiovascular side-effects typically observed with systemic pan-ROCK inhibitors.

Redx believe that their highly selective ROCK2 inhibitors could provide a novel and effective therapy for patients with progressive kidney fibrosis associated with diabetes, who currently have few, largely ineffective, therapeutic options.

President Energy (PPC.L) 8.1p £86.83m

President Energy, the upstream oil and gas company with a diverse portfolio of production and exploration assets focused primarily in Argentina, confirms that the PFE 1001 development well has now spudded at the Puesto Flores/Estancia Vieja Concession in Rio Negro Province, Argentina (President 90% and operator – EDHIPSA 10%).

This is the second well in the three well programme and is expected to take some 21 days to drill to target depth. Subject to success, the well will then be completed which is projected to take a further 10 days.

Completion work on the successful PFO 1001 is expected to take place and put on stream by the end of the drilling of PFE 1001.


Mincon Group (MCON.L) 115p £247.3m

Mincon Group, the Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, provided an interim trading update for the period from 1 Jan, 2018 to date, incorporating the first nine months of trading to 30 Sept 2018.

The results incorporate the contribution from Driconeq, which we acquired in March this year.

Revenue up 22% for the first nine months

Mincon product sales increased 37% of which Driconeq accounted for c. 26% and the residual group growth was c. 11%

Third party product sales down 26%

Gross margin excluding Driconeq up to 41% from 38.7%, Gross margin of 38.3% when Driconeq is included

Operating profit excluding Driconeq at 15.8% up from 14.3%, 14% when Driconeq is included

PBT excluding Driconeq at 15.2% up from 13.1%, 13.3% when Driconeq is included

EBITDA excluding Driconeq up to 19% from 17.6%, 17.2% when Driconeq is included


Hummingbird Resources (HUM.L) 17.1p £67.7m

Hummingbird Resources, the African gold producer, announces its Q3 2018 production results for the quarter ended 30 Sept 2018, which represents its second full quarter of commercial production since the end of the ramp-up period at the Yanfolila Gold Mine in March 2018.

22,206 ounces of gold poured at an AISC, calculated on gold sold, of $1,006/oz representing, as expected, a softer quarter due to the heavy rainy season

Average grade processed of 2.99 g/t

20,029 ounces of gold sold at an average price of $1,217/oz

Highlights from the initial exploration results, released on 19th July, included;

11.45m @ 8.69g/t from 69m at Komana West

16m @ 3.11g/t from 38m at Guirin West

Approval to construct a second ball mill increasing throughput by 24% when operating 100% fresh ore

Cash of $20m on 25 Oct 2018

$4.5m of debt repaid in the quarter, with total debt of $58m

$3.5m reduction in trade payables in the quarter

$5.5m increase in gold inventory to $7.5m (gold on hand and not yet sold) in the quarter


Savannah Petroleum (SAVP.L) 32p £258m

Savannah Petroleum, the British independent oil and gas company focused around oil and gas activities in Niger and Nigeria,  announced that its Niger subsidiary has submitted a pre-feasibility study (“PFS”) to the Ministry of Energy and Petroleum in Niger in relation to its planned early production scheme (“EPS”) on the R3 portion of the R3/R4 Production Sharing Contract area of the Agadem Rift Basin of South East Niger.

Savannah Niger undertook to prepare and submit the PFS within 90 days of the signature of its MOU with the Republic of Niger, as announced on 8 Aug 2018. The MOU affirms the commitment of Savannah Niger and the Republic of Niger to realise a domestic-focused EPS using crude oil resources associated with the Company’s recent discoveries.  The PFS sets out Savannah Niger’s plans for the Amdigh-1 well test, resource volumes expected to be developed as part of the EPS and associated potential production profiles, as per the Company’s announcement of 28 Sept 2018 and as reviewed by Savannah’s Competent Person, CGG Robertson.


Sareum Holdings* (SAR.L) 0.72p £21.96m

Sareum Holdings, the specialist cancer drug discovery and development business, announced that it has raised £0.85m through a placement of 130,769,231 new ordinary shares of 0.025p each in the capital of the Company through a third party licensed dealer acting solely as a placing agent to this transaction at 0.65p per share.

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.

Application has been made for the Placing Shares, which will rank pari passu with the Company’s existing Ordinary Shares, to be admitted to trading on London Stock Exchange AIM. It is anticipated that Admission will become effective at 8am on 08 Nov 2018.


Itaconix (ITX.L) 1.85p £4.98m

Itaconix, a leading innovator in sustainable, specialty polymers, announced the appointment of existing NED Jim Barber as NEC of the Company effective 1 Dec 2018. He replaces Kevin Matthews, Executive Chairman, who is stepping down from the Board effective 21 Dec 2018, as was previously notified in the fundraising announcement of 12 July 2018.

“Kevin’s decisiveness and experience as a specialty chemicals executive has resulted in a business well positioned with opportunities for growth in sustainable polymers,” said John R. Shaw, Chief Executive.  “His efforts and dedication to serving the needs of our customers, employees, and shareholders are greatly appreciated.”


Crawshaw Group (CRAW.L) 1.88p £2.71m

The Board of Crawshaw Group noted the recent media speculation regarding a potential financial restructuring and equity fundraising.

As announced in the Company’s interim results on 26 Sept 2018, the Board have completed their review of the business and is implementing its change programme to restore growth and profitability, which includes reviewing its structure and investment in traditional high street locations. The Board confirms that it is considering a number of remedial actions to address the key issues it has identified, which may include raising additional funding through an equity capital raising. No decision has yet been made by the Board on these matters and the Company will update the market in due course.


Brooks Macdonald (BRK.L) 1,800p £243.6m

Brooks Macdonald Group, the investment management group, published its quarterly update on its discretionary Funds Under Management (“FUM”) for the first quarter ended 30 Sept 2018.

As at 30 Sept 2018 FUM totalled £12.8bn, an increase of 3% over the prior quarter (30 June 2018: £12.4bn).  This was driven by net new business (+£158m) and investment performance (+£211m).  As a comparison the MSCI WMA Private Investor Balanced Index increased by 1% over the period.

Within these total figures, UKIM maintained a healthy rate of organic growth and had total growth of 3.6% to £11.1bn.  BMI experienced net outflows, following the departure of one of its client-facing teams, as described in the FY 2018 full year results statement, and closing FUM was down 1.1% to £1.7bn.

Year-on-year as at 30 Sept 2018, FUM increased by 16.4% (30 Sept 2017: £11bn).


Thalassa (THAL.L) 90.5p £16.3m

The board of Thalassa announced that on 25 Oct 2018 the Company purchased 40,000 of its ordinary shares at a price of 88.5p per share. These shares will be held in treasury and in total there are now 7,587,747 ordinary shares in treasury. This purchase was made in accordance with the Company’s Articles of Association and with a board authority dated 16 Oct 2018 to buy back up to £6m of the Company’s shares. As a result of this purchase 40,000 preference shares have been cancelled in accordance with the procedure announced on 4 Oct 2018.

As at the date hereof, the Company has purchased 4,479,090 ordinary shares under this authority for a total cost of £3,969,868.73 or an average price of 88.63p per share. The average purchase price of the total number of shares held in treasury, 7,587,747 shares, is 70.06p per share for a cost of £5,316,307.83.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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