Small Cap Feast

Small Cap Feast – 27 November 2019

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Dish of the Day:

No Joiners Today

 

Off the Menu:

Synovia has left AIM pursuant to an offer by a subsidiary of funds advised by Camelot Capital Partners.

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

AIM

The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt.  Offer TBA.

Longboat Energy raising £10m at 100p.   Expected admission November 2019.  The company has been established by the former management team of Faroe Petroleum to create a new full-cycle North Sea oil and gas company .The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and near-field exploration; and by value creation through the drill bit.  Due 28 Nov.

MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC but expected admission date mid-December.

NEX Exchange

Sapo PLC – Seeks to invest in the developing market for rural broadband in the UK.  Due 2 Dec

Main Mkt Standard

Taseko Mines  – North American focused copper producer and developer, seeking a London Listing. No capital raise. Due 22 Dec

Main Mkt Premium

Octopus Renewables – Seeking raise of up to £250m. Will seek to provide investors with an attractive and sustainable level of income returns, with an element of capital growth by investing in a geographically and technologically diversified spread of renewable energy assets—Due 10 Dec

 

Breakfast Buffet

Greencoat Renewables (GRP.L) 1.1575p £602m

 The Irish renewable infrastructure company invested in euro-dominated assets is pleased to announce it has acquired Beam Hill Wind Farm, a 14.0MW wind farm situated in County Donegal for a consideration of 10.5m. This brings Greencoat Renewables’ portfolio of operational wind assets to 461MW.

The wind farm consists of 8 Vestas V66 turbines that have been operational since November 2006. Vestas will continue to manage the operations and maintenance contract.

The acquisition is being funded by the Company’s €380m credit facility. Following the acquisition, Greencoat Renewables total borrowings are 48% of Gross Asset Value.

 

Base Resources (BSE.L) 12.25p £143.5m

Maiden Ranobe Ore Reserves estimate which forms the foundation of its Toliara Project in Madagascar.

Ranobe Ore Reserves estimate of 586Mt of ore at an average heavy mineral grade of 6.5%, containing 38Mt of in-situ HM.

The Ore Reserves estimate is consistent with the Mineral Resources assumptions underpinning the pre-feasibility study.

Samples from a 26,141m drilling program completed during 2019 are currently being processed, seeking to upgrade the Mineral Resources and Ore Reserves estimates for Ranobe over the course of 2020.

 

VR Education (VRE.L) 8p £15.5m

 The  virtual reality (‘VR’) technology company focused on the education and enterprise training space, is pleased to announce that the Group’s latest VR showcase experience, ‘Shuttle Commander’, will launch on Sony PlayStation on Tuesday, 3 December 2019.

Shuttle Commander is an accurate physics-based flight simulator experience, offering users the chance to take to the controls of NASA’s Discovery space shuttle and land it at a number of real-world landing sites, such as Kennedy Space Centre, White Sands Air Force Base and Edwards Air Force Base in an immersive virtual reality.

The VR showcase experience will retail at £21.99 in the UK, €24.99 in the EU and US$24.99 in the US.  https://youtu.be/uHxmKkd5BYA

 

Alliance Pharma (APH.L) 78.7p £413m

Agreement with Duchesnay Inc. of Canada  to return the UK and EU licensing rights to Xonvea, a prescription medicine for the treatment of nausea and vomiting of pregnancy where conservative management has failed.

As previously indicated, the uptake of Xonvea in the UK has been slower than the Group originally anticipated, in part due to the ongoing delay in the issuing of updated clinical guidelines. In addition, the competitive landscape for Xonvea in Europe has shifted, making an EU rollout less attractive for Alliance.

Under the terms of the agreement signed with Duchesnay, the £2.0m in milestone payments made to date by Alliance will be repaid to the Group, £0.25m in 2019 and the balance in 2020. Alliance will continue to make Xonvea available to patients in the UK for up to 12 months to assist Duchesnay with the transition to a new licensee.

 

Shearwater (SWG.L) 248p £54.8m

The organisational resilience group, announced its unaudited results for the six months ended 30 September 2019.

Highlights

Group revenue up 262% at £16.3 million.  Underlying organic revenue growth of 11%. Adjusted earnings per share of 2.23 pence (2018: loss 18.73 pence)

Acquisition of Pentest substantially expands security testing and “red teaming” capability

  • New software product developments, including launch of cloud hosted “as-a-service” offerings to complement on-premise solutions

Outlook —Double digit organic growth in H1 providing good momentum into H2-  Secured multi-million-pound managed service contracts, underpinning revenue visibility—Group continues to trade well – in line with expectations for the full year.

 

Union Jack Oil (UJO.L) 0.16p £19.4m

£5m placing and subscription at 0.15p. C.12% discount to yesterday’s close.

The proceeds will be deployed into what Union Jack believes are highly accretive projects including the drilling and testing of two further appraisal wells and the acquisition and reprocessing of new seismic data at the Company’s flagship asset at West Newton. Funds will also be used to drill an anticipated side-track well at Biscathorpe and to provide additional working capital.

 

Versarien (VRS.L) 100 £154m

Commercial Partnership Agreement with the Company’s textile sector collaboration partner, MAS Innovation (Private) Limited (“Twinery – Innovations by MAS”).  The Agreement follows the Letter of Intent between the parties, announced on 26 July 2019, which set out the intent of both parties to enter into a formal commercial partnership.

Twinery – Innovations by MAS is part of MAS Holdings a holding company for a portfolio of businesses with a combined revenue of c.US$ 2 billion which are positioned as one of the world’s most recognised design to delivery solution providers in apparel and textile manufacturing.  The Agreement sets out the basis under which the parties will operate with the objective of securing commercial orders or contracts for garments developed using Versarien’s proprietary graphene ink materials.

 

Vectura Group (VEC.L) 84p £512.22m

Vectura Group  notes today’s announcement by Hikma Pharmaceuticals PLC (HIK.L), its partner in the development of an AB rated substitutable US generic version of Advair Diskus® (VR315US), that it has submitted responses to the US Food and Drug Administration  for review, which includes data from a further Clinical Endpoint study requested by the FDA in a Complete Response Letter .

Hikma’s submission is an important milestone in our generic Advair programme. We believe the submission addresses the outstanding questions raised by the FDA in its CRL and remain confident in the prospects for the approval of VR315US. 

 

Pressure Technologies (PRES.L) 96.93p £17.39m

Update on the  prosecution by the Health & Safety Executive (“HSE”) following the fatal accident at its subsidiary Chesterfield Special Cylinders (“CSC”) in June 2015. Trial proceedings have concluded and the jury has delivered a guilty verdict pursuant to Section 2 of the Health and Safety at Work Act 1974. A sentencing hearing has been scheduled for 9 December 2019 and the Company expects that the penalty will be determined at that time.

 

Water Intelligence (WATR.L) 284.25p £41m

Trading update through the end of October with respect to a year-to-date sales growth milestone.  “ We have surpassed the prior full-year revenue result earlier than expected.  Through the end of October, we achieved $27.5m in revenue which stands significantly ahead of the full year 2018 result of $25.5m.  PBT (statutory and adjusted) remains comfortably in-line with expectations for full year 2019.”

 

Head Chef:

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

*A corporate client of Hybridan LLP

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