Small Cap Feast

Small Cap Feast – 27 March 2020

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Main Market (Premium)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m.  Timetable now extended.


Breakfast Buffet

Gresham House 535p £160.6m (GHE.L)

Gresham House Asset Management (GHAM) has been appointed as the investment manager and Alternative Investment Fund Manager (AIFM) of Strategic Equity Capital plc (SEC).

SEC was launched by SVG Investment Managers Limited (SVGIM) in 2005 with a distinctive investment strategy to apply private equity techniques to public equities. At the time of its launch, SVGIM was led by Gresham House CEO Anthony Dalwood, supported by a broad private equity platform. The appointment of GHAM and ultimately Aberdeen Standard Gresham House, has the following key benefits:

  • A strong and well-established platform (£3bn AUM as at March 2020) with a strong net cash balance sheet and well-developed operational resources. It has an established pedigree of investing on a strategic public equity (‘SPE’) basis in UK equity markets, which has been recognised by Aberdeen Standard Investments.
  • A team-based capability led by Tony Dalwood, based on his 20 years of investment experience in the strategy, including the period of time when he led SVGIM. Since 2015, this strategy has been deployed by Gresham House. The SEC investment process will follow the Gresham House SPE investment process.


Diurnal Group 35.5p £36m (DNL.L)

The specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, announces that it has entered into an exclusive licence agreement for its product, Alkindi® Sprinkle (hydrocortisone granules in capsules for opening), in the United States with the specialty pharmaceutical company, Eton Pharmaceuticals, Inc. (NASDAQ: ETON “Eton”).

Under the terms of the licence agreement, Diurnal will receive a non-refundable upfront payment of $5.0m, of which $3.5m is in cash and $1.5m is through the issue to Diurnal of 379,474 new Eton shares, and will receive an additional $2.5m cash milestone payment upon first commercial sale in the US following regulatory approval and grant of Orphan Drug Status (currently anticipated in Q4 2020). Diurnal will receive a tiered royalty on sales ranging from low double-digits to high teens and is also due tiered sales-based milestone payments of up to $45m in aggregate subject to annual sales thresholds.

Eton is a NASDAQ-listed specialty pharmaceutical company focused on developing, acquiring and commercialising innovative products. Eton is primarily focused on hospital and paediatric products, including those in endocrinology. Eton’s first commercial product, Biorphen®, (phenylephrine hydrochloride) is the only FDA approved ready-to-use formulation of phenylephrine injection and was launched in December 2019.


Renalytix AI 232p £138m (RENX.L)

The developer of clinical grade artificial intelligence in vitro diagnostics for kidney disease, announces that further to RNS Reach 2937H on 24 March 2020, Boston Healthcare Associates has presented data on KidneyIntelX™, the Company’s AI-enabled in vitro diagnostic test for kidney disease, and the clinical and health economic benefit from deploying the test in large health systems in the United States during National Kidney Foundation’s Spring Clinical Meeting. 

A poster summarising the data presented by Boston Healthcare is now available through the conference website and at .

During the presentation, Dr. Goss described the population health benefits that can be realized with system-wide adoption of KidneyIntelX™. These include delaying progression to more advanced stages of DKD, reducing hospitalizations, and avoiding unplanned emergency room crashes onto dialysis, and delaying or preventing end stage kidney disease, and related dialysis and kidney transplant procedures .


Uniphar 1.125p £307m (UPR.L)

 FY Dec 19 results from the diversified healthcare services business  .

Key strategic acquisition of Durbin completed providing a global platform in Product Access and integration progressing in line with plan.

Gross profit increase of 56% to EUR180.6m (7% on an organic basis).

EBITDA increase of 49%, from EUR32.2m to EUR48.0m.

Net bank cash of EUR26.6m as at 31 December 2019 (2018: net bank debt of EUR152.9m).

Dividend of EUR2.0m proposed in respect of period from IPO to 31 December 2019, subject to approval at AGM.

“While we continue to monitor ongoing Covid-19 developments, performance is ahead of our expectations for the first two months of 2020, and there has been limited disruption to our business up to now. As we prepare for the full impact of the Covid-19 crisis, we expect to continue to see increased volumes across the Group, with likely increases in cost to serve as we invest in additional resources to manage significantly higher volumes, while at the same time dealing with reduced availability of manpower due to potential sick leave, self-isolation or quarantine situations arising.” Possible delays if certain to ‘non-urgent’ elective surgeries could result in a reduction of 2020 EBITDA in the region of EUR5m, likely recoverable in future periods.


Europa Metals 0.0165p £2.7m (EUZ.L)

 The European focused lead-zinc and silver developer, announces an update in respect of the second phase metallurgical testwork being carried out on material extracted from the Company’s wholly owned Toral lead, zinc and silver project situated in the region of Castilla y León, north-west Spain.

Due to the impact of the coronavirus (COVID-19) pandemic, a delay has unfortunately occurred in completing the last metallurgical laboratory test and consequently also in transferring the data to Wardell Armstrong International in the UK.  Once this work has been duly completed, now anticipated to occur in early April 2020, a full metallurgical report, encompassing flowsheet optimisation for concentrates and a breakdown of deleterious elements, will be obtained by the Company and its findings announced to the market.


ScotGold 48.5p £24.9m (SGZ.L)

Update to the development schedule of the Cononish Gold and Silver Mine. Further to the update provided on 16 December 2019, bad weather delays, particularly during January and February which was one of the wettest starts to the year on record, have exceeded the planned allowances. The Company has attempted to mitigate these conditions by utilising smaller, less weather dependent earthmoving equipment and to mitigate the cost implications by undertaking these activities “in house” and utilising our own skilled workforce.  Although the weather conditions have recently improved, it is apparent that first gold production will be delayed beyond May 2020 as previously forecast.  As of today, the Company will close down the mining operations at Cononish but will continue with care and maintenance operations to ensure the health, safety and in particular environmental aspects

Shearwater Group 207p £45.77m (SWG.L)

The organisational resilience group, announces that its group company, GeoLang, has won a new three-year contract worth circa £0.2m in aggregate with a leading global medical and research development organisation, specialising in oncology and DNA / RNA sequencing. Under the terms of the contract GeoLang will provide the organisation with Cloud Data Loss Prevention (“DLP”) as well as Data Discovery and extraction solutions that cross the boundaries between Office 365, Box and Confluence.   While there are many tools on the market that offer network DLP, these tools will often have gaps in the cloud solutions that they protect with no true endpoint visibility. GeoLang is able to provide agile development capabilities, connecting the dots that extend its Ascema DLP and Data Discovery platform to offer real time discovery and protection of sensitive data and IP across legacy and disparate enterprise systems.


GAN 151.5p £129.4m (GAN.L)

The award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today provides more information on the previously confirmed closure of certain market access arrangements with the Sault Tribe of Chippewa Indians in the State of Michigan, following the  State bill that includes provisions for the legalisation of full real money Internet casino gaming as well as Internet sports betting.

The Michigan Internet gambling market is forecast to generate $377m in Gross Operator Revenue in the first 12 months of operations. This Client’s Internet gambling business is currently anticipated to be a significant contributor to GAN’s full year revenues in 2021.


Arkle Resources 0.6p £0.8m (ARK.L)

The Irish gold and zinc exploration and development company, has undertaken a conditional placing with existing investors to raise £252,00  at 0.5p. One warrant attached with the right to subscribe for one new ordinary share at 0.5p per new ordinary share for a period of two years

The funds raised are expected to provide working capital sufficient for requirements for the remainder of 2020 as well as maintaining ongoing exploration activities.


European Metals 14.8p £22.8m (EMH.L)

Final agreement  with CEZ Group one of Central and Eastern Europe’s largest power utilities, regarding a strategic partnership and significant investment into the Cinovec Project .  The Company announced on 20 November 2019 the terms of a conditional agreement with CEZ under which CEZ had the option to subscribe to become a 51% shareholder in Geomet s.r.o. the Company’s Czech subsidiary and holder of the rights over the Project. Reduction of the price payable by CEZ upon completing of the subscription of Geomet shares from EUR34.1m  to EUR29.  EMH believes that the revised terms provide sufficient funding for the next stage  the Project.


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