AIM BREAKFAST – 27th March 2017
Set Menu AIM:
Total number of AIM Companies (Incl Susp): 969
Total number of AIM Companies trading: 948*
* As at 26 March 2017
Dish of the Day:
BioPharma Credit— Admission to the Specialist Fund segment of the Main Market expected today Falcon Acquisitions has joined the Standard List raising £4m at 25p. Focused on the over-the-top (‘OTT’) video streaming market
BioPharma Credit— Admission to the Specialist Fund segment of the Main Market expected today
Falcon Acquisitions has joined the Standard List raising £4m at 25p. Focused on the over-the-top (‘OTT’) video streaming market
Off the Menu:
Rapidcloud International PLC cancelled its securities pursuant to AIM Rule 1 North River Resources PLC cancelled its securities from trading on AIM
Rapidcloud International PLC cancelled its securities pursuant to AIM Rule 1
North River Resources PLC cancelled its securities from trading on AIM
Set Menu ISDX Growth:
Total number of ISDX Growth Market Companies (Incl Susp): 85*
Total number of ISDX Growth Market Companies trading: 82*
* As at 26 March 2017
Dish of the Day:
No NEX Growth Market Joiners Today
No NEX Growth Market Joiners Today
Off the Menu:
No NEX Growth Market Leavers Today
No NEX Growth Market Leavers Today
What’s Cooking in the IPO Kitchen?
Path Investments—Publication of prospectus from the Energy Investment Comnpany. Raising £1.4m. Admission due on or around 30 March.
Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April.
Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April.
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC.
Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April.
Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Quadrise Fuels International (QFI.L) 8.45p £67.86m
FY Dec 16 results from the emerging supplier of MSAR® emulsion technology and fuel, enabling a low cost alternative to heavy fuel oil. Loss after tax of £2.4 million (2015: £2.4 million). In November, the Company raised £5.25 million through a Placing and Open Offer of new ordinary shares. The Open Offer was oversubscribed 2.5 times. Current Maersak trial suspended due to unrelated incident with the ship. Maersk is reviewing options for recommencing and completing the full LONO trial on a new vessel from Q4 2017 onwards. Further trial due to start in Saudi in Q4 2017.
Trading Emissions (TRE.L) 2p £5.18m
HY Dec 16 results from the closed ended investment company that specialises in renewable energy projects and emissions instruments. ‘During the six month period ended 31 December 2016, we sold two of the Company’s five Italian solar operating subsidiaries held through TEP Solar for net proceeds of €9.6 million (including dividends), of which €3.0 million is held in escrow. Conditional on no claims being received from the buyer, Sonnedix, we expect €1.0 million to be released to TEP Solar in December 2017 and €2.0 million in December 2018. Our efforts continue to try to resolve the various operating issues at TEP Solar’s three remaining Italian solar operating subsidiaries.’
Botswana Diamonds (BOD.L) 1.27p £4.78m
HYDec16 results. £136k operating loss. Cash down to £60k from £500k at year end. Raised £525k gross in February 2017. Other Highlights:
“The Company entered into a phased earn-in agreement with Vutomi Mining Pty Ltd (“Vutomi”), a late stage diamond explorer in South Africa;
The Company agreed with the board of Maibwe, our joint venture in the Kalahari desert in Botswana, that Botswana Diamonds would drill verification holes following the encouraging results from 2015;
A work programme for 2017 was agreed with Alrosa for the Orapa and Gope licences in Botswana.”
Independent Oil & Gas (IOG.L) 16.25p £17.76m
The development and production focused oil & gas company, announced an update on its Harvey and Elgood licences. The Oil and Gas Authority (OGA) has confirmed the continuation of licence P2085, which contains the Harvey discovery, until 20 December 2017. The technical work prepared and submitted by IOG in relation to its Elgood discovery has also been accepted by the OGA and will be added to the Blythe Field Development Plan as a satellite development. If successfully appraised, Harvey has the potential to be the largest gas discovery in IOG’s portfolio and significantly enhance the economics of IOG’s Southern North Sea business. The range of internal resources estimates are large with a P10, P50 and P90 range of 44 BCF, 113 BCF and 290 BCF respectively.
Genedrive (GDR.L) 42.5p £7.76m
The near patient molecular diagnostics company, today announces submission of its Genedrive® HCV ID Kit (Hepatitis C) for CE IVD certification under the EU Medical Devices Directive. Receipt of CE IVD certification will allow commercialisation of the product within the EU and in resource limited countries in the rest of the world that accept CE certification under their national regulations. Where local registration is required, CE marking is often a prerequisite. This portable quick test has a significant market opportunity.
SpaceandPeople (SAL.L) 18p £3.5m
FYDec16 results from he retail, promotional and brand experience specialist. Gross revenue of £22.9m. Net revenue of £9.7m. Profit from continuing operations before taxation and non-recurring costs of £60k. Basic Earnings per Share before non-recurring costs of 0.3p. Net cash at year end of £384k. “The introduction of important and iconic new venues means we are in a strong and growing position in our market, and there is still considerable scope to grow further. Our UK venues team has a very healthy pipeline of potential new venues they are engaging with and we are hopeful that we will continue to add to the size, diversity and quality of our portfolio.” 2017E PE of c. 7x
Elektron Technology (EKT.L) 7.5p £13.72m
The global technology group, has completed the sale of the business and assets (excluding trade debtors and creditors) of Digitron to The British Rototherm Company Limited for a total gross consideration of £0.3million cash payable on completion. Digitron is a manufacturer of instruments for pressure and temperature measurement. In the year ended 31 January 2017 the business of Digitron traded as a brand within Elektron Technology UK Limited with sales of £1.4 million and ‘Brand Contribution’ of £60,000. The sale is part of the Group’s rationalisation of its portfolio, focusing its investment on the core segments of Bulgin, IMC (Instrumentation, Monitoring and Control) portfolio and Checkit. There are no market forecasts.
Itaconix (ITX.L) 26p £20.47m
FY Dec 16 results. During 2016 Itaconix (formerly Revolymer plc) undertook a major reorganisation to focus on its Specialty Chemicals business primarily in the high value market areas of Homecare, Personal Care and Industrial. Itaconix and its subsidiaries aim to be a leader in functional polymers that improve the safety, performance and sustainability of its customer’s products. £8.8m of liquid funds. Continuing ops revenue £0.3m. £5.2m loss. Acquisition of Itaconix Corp in June 2016 for initial $7m consideration. FYDec17E rev of £1.4m and £4.6m pre-tax loss.
Obtala (OBT.L) 17.63p £48.93m
Q1 update. ‘Intense planning is underway for several major projects as the company transitions towards meaningful production, and deployment of our substantial assets. Following the successful US$ 14.25 million fundraising via the issue of preference shares in Argento Limited (Obtala’s 75% owned forestry subsidiary) during the final quarter of 2016, which was recently upsized by a further US$ 3 million, as announced on 15 March 2017, management has turned attention towards laying the foundations required for significant and sustainable increases in productivity from both the forestry and agriculture businesses. New sawmills coming onstream and refrigerated pack house in Tamzania (agriculture). There are no market forecasts.
K3 Business Technology (KBT.L) 254.5p £91.8m
H1Dec16 results from the provider of industry specific mission-critical software (owned and 3rd party), hosted solutions and managed services to the retail, manufacturing and distribution sectors. Significant operational progress made but results impacted by deal slippage and overhead investment. Revenues of £42.97m (2015: £42.29m). Recurring revenue of £21.22m (2015: £19.72m). Adjusted EPS of (0.4p) (2015: 12.0p). ‘While the market shift towards cloud-based subscription models, away from the traditional on-premise model, is causing some disruption to the sales cycle, the lifetime value of such contracts has the potential to be significantly higher and K3 is well placed to benefit as a result. ‘FYJun17E of £89m rev and £7.8m PBT seems a stretch.
0203 764 2344
*A corporate client of Hybridan LLP
This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.
The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.
Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.
This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, directors, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).
Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.
Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.
Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.
Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX. If you would like to unsubscribe, please email email@example.com with “unsubscribe me”.