Small Cap Feast

Small Cap Feast – 27 June 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 894

Total number of AIM Companies trading: 818*
* As at 25 June 2019

Set Menu NEX Growth:

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

Total number of NEX Growth Market Companies trading: 87*
* As at 25 June 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 163*

Total number of Standard List Companies trading: 141*
* As at 25 June 2019

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

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 (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   he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m·

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

Crossword Cybersecurity (CCS.L) 535p £25m

Crossword has  announced that the Nursing and Midwifery Council (NMC), will use Rizikon Assurance to automate its supplier onboarding process and manage ongoing supplier risk. The NMC is the regulator of over 690,000 nurses, midwives and nursing associates across the UK.

All organisations need their suppliers to provide assurance that they have sufficient controls in place to manage financial, operational and regulatory risk. The NMC, which has over 600 suppliers, will replace its manual paper-based processes with Rizikon Assurance to improve its supplier onboarding process and learn more about its supply chain.  It will help them to assess and visualise the risk of each supplier more effectively and identify risks in their supply chain as a whole using Rizikon Assurance’s unique 360-degree Risk Scorecard.

Erris Resources (ERIS.L) 5.1p £1.58m

HY operational update from the European focused mineral exploration company with a portfolio of zinc and base metals projects in Ireland and gold projects in Sweden and Finland.

Commenced fieldwork in Finland as part of strategic alliance with Centerra Gold

Centerra Gold funded mapping and prospecting carried out on new targets in North Sweden

Soil sampling at Skreen in Ireland, resulting in high priority targets, confirms the importance of the Ox Mountains Fault on controlling mineralisation.

Submitted renewal reports for the 100% owned  Abbeytown Zn-Pb-Ag  project.

Data review and first pass soil sampling completed at the 100% owned Irish Galway zinc-lead-silver project.

Maintaining tight control on expenditure with cash of approximately 2m at the end of May

Evaluated several new project opportunities and remain focused on identifying and securing a new core asset.

IGas (IGAS.L) 55.9p £68.3m

Highly encouraging core analysis results from its SR-01 exploration well at Springs Road in North Nottinghamshire. The well is a significant step forward in the development of shale gas in the East Midlands.

IGas acquired 147 metres of core within the Bowland Shale, the first extensive core sample from this basin.

The results from core analysis are extremely positive and confirm that a significant hydrocarbon resource is present in the Gainsborough Trough.

Total Organic Carbon (TOC): 2 – 7 %, average of c. 3 %

Thermal maturity (Tmax): Average of 464°C (wet gas to dry gas window)

Total Porosity:  2 – 9 %, average of 4 %

Gas Content: 24 – 131 scf/ton, average of 71 scf/ton

Average Clay Content: c.30 wt.%  In particular, the low clay content is encouraging and an indication that hydraulic fracturing of the rock should be effective.

Intends to make a further announcement and full technical presentation of the results, including comparison with analogous US shale plays in Q3.

Rotala (ROL.L) 60p £28.8m

Rotala has agreed to acquire from First Manchester Limited, a subsidiary of FirstGroup plc, its Bolton depot and the majority of the First business located at that depot. The total consideration for the Acquisition is £5.3m, payable in cash on completion of the APA, which shall be satisfied from the Company’s existing bank facilities.

Acquisition of Bolton depot and associated business, capable of operating up to 200 vehicles and serving 18 commercial bus routes

Acquisition will make Rotala the second largest player in the  Manchester bus market, one of the largest bus markets in the country

Acquisition expected to be earnings enhancing in the first full year following completion and will significantly increase the scale of the business

Completion of the Acquisition is expected to occur in August 2019 following receipt of necessary regulatory permissions

Tekcapital (TEK .L) 11.74p £6.25m

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 Guident Ltd has exclusively licensed U.S. patent # 9,964,948 B2 entitled: “Remote Control and Concierge Service for an Autonomous Transit Vehicle Fleet” from Florida International University.

This patent describes methods for assisting autonomous vehicles and drones by using their sensor inputs in coordination with a remote control centre with the ability to take over operation of a vehicle or drone from anywhere in the world, enabling it to navigate in a variety of difficult situations such as heavy weather, crowded and dangerous traffic scenarios, accident prevention and remediation, and off-grid and last mile package delivery.  This proprietary method may improve both safety and consumer satisfaction with autonomous vehicles and drones. “We believe that autonomous vehicles and drones will help democratize transportation and delivery. However, to enhance the safety and practicality of AV’s, a back-up control centre, on stand-by, would enhance consumer confidence that unpredictable situations such as accidents and last mile package delivery mishaps can be handled properly in real-time. “

ITM Power (ITM.L) 32p £104m

 “The energy storage and clean fuel company, is pleased to announce the opening yesterday of Gasunie’s Hystock green hydrogen plant in Veendam near Groningen in the Netherlands.  Gasunie manages and maintains the infrastructure for the large-scale transport and storage of gas in the Netherlands and the northern part of Germany.

ITM Power supplied the 1MW PEM electrolyser system which will use renewable energy and water to generate hydrogen. The electrolyser is located at EnergyStock’s Zuidwending salt cavern storage facility in northern Netherlands, and the generated hydrogen will be either used on-site or dispensed into tube trailers for supply to future hydrogen refuelling stations.”

Haydale Graphene (HAYD.L) 1.9p £6m

“The global advanced materials group, is pleased to announce that one if its plasma functionalisation reactors is now operational, having been fully installed and commissioned onsite at the GEIC, based at The University of Manchester.

Haydale’s patented HDPlas® reactor is a rapid and cost-effective method for the treatment and surface functionalisation of advanced nanomaterials – such as graphene and other carbon-based materials. The reactor offers a high level of control and flexibility with a tailored level of surface chemistry to enhance dispersion. The HDPlas® system is a dry, low temperature plasma process in a near vacuum which offers a repeatable, effective method of achieving surface functionalisation, to enable homogeneous dispersion and consistent results suitable for commercial applications.

As a Tier One member of the GEIC, Haydale gains access to the materials knowledge, applications engineers and both analytical and processing equipment within the GEIC. This gives Haydale, through the GEIC’s world-renowned development facilities, a quicker route to market and access to a greater reach of customers. “

Staffline (STAF.L) 125.5p £28m

The Recruitment and Training group, announces that it is proposing to raise up to £41m, before expenses, by way of a Placing to raise up to £34m and an Open Offer to raise up to £7m.

The Company intends to use the net proceeds of the proposed Placing to reduce net debt.

Target leverage of net debt / EBITDA of below 2x by 31 December 2019 including proceeds of the Placing.

On 17 June 2019, the Company announced that as a consequence, the Board expected the Group to require a waiver of possible future breaches to the leverage covenant in its lending agreements. The Company confirmed that it was in constructive discussions with its lenders and, in conjunction, was in discussions with Shareholders with regard to a placing of new ordinary shares to raise approximately £30m with the target of reducing expected 2019 year-end leverage to 2x net debt / EBITDA.

Arc Minerals (ARCM.L) 164p £21.67m

The exploration and development company with copper and cobalt exploration assets in Zambia and multi-million-ounce gold development projects in DRC and Slovakia, is pleased to provide an update on its maiden drill program at Cheyeza East in Zambia.

Highlights

First two holes completed at Cheyeza East

Visible mineralization intersected in both two holes drilled

Zones of significant mineralisation intersected in CHDDE002 with the first zone 2m below surface

“I am pleased to see that the anomaly identified by the detailed geophysics and geochemistry completed last year has produced results.  The drill cores have now been sent for assay and we expect results imminently.  Additionally, we have identified another significant anomaly in the west of our licence areas and a further update will follow.”

Zinc Media (ZIN.L) 0.259p £3.62m

The TV and multimedia content producer, announced a slate of commissions driven by a number of fast turnaround productions, totalling £2.8m in revenue across its portfolio of TV companies.

Glasgow based Tern Television can announce that it is in production for its third series of ‘Grand Tours of Scotland’s Lochs’ for BBC Two and BBC Scotland, as well as a number of high value single programmes.

 Brook Lapping, the London based documentary and current affairs producer, has picked up a string of fast turnaround commissions and one-off singles including an ‘Exposure’ for ITV, a ‘Panorama’ titled ‘The Race for Number 10’ and ‘The Trans Women Althlete Dispute with Martina Navratilova’.

Zinc’s popular factual division Reef TV has recently transmitted the critically acclaimed BBC2 documentary David Harewood: ‘Psychosis and Me’, which aired as part of the BBC’s mental health season and ‘Brexit: Behind Closed Doors’ which followed the EU negotiating team through the last 3 years of the UK’s Brexit negotiations.

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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