Small Cap Feast

Small Cap Feast – 28 January 2019

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 914

Total number of AIM Companies trading: 847*
* As at 24 January 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 24 January 2019

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): 145*

Total number of Standard List Companies trading: 128*
* As at 24 January 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?

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 31 Jan 2019.

AIM

Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Circassia Pharma (CIR.L) – specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.

Greenfields Petroleum (TSX-V:GNF)  production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb

Breakfast Buffet

Ten Lifestyle Group (TENG.L) 44p £35.8m

Ten Lifestyle Group, a leading technology-enabled lifestyle and travel platform for the world’s wealthy and mass affluent, announced it has signed a contract with Royal Bank of Canada (RBC), to provide a digitally-enabled, premium concierge service to RBC® Avion® Visa Infinite Privilege for Private Banking cardholders with plans to offer this to a select group of RBC clients in Canada, the USA, and the UK as well.

Services are expected to go live to RBC clients in the first quarter of 2019 and the contract is expected to grow to be a Large contract in the 2019/20 financial year.

 

Destiny Pharma (DEST.L) 75p £32.24m

Destiny Pharma, a clinical stage biotechnology company focused on the development of novel antimicrobial drugs, which address the global problem of antimicrobial resistance (AMR), announced positive data and the non-irritant classification for its XF-73 nasal gel from the second Phase 1 safety clinical study examining the drug’s potential to cause irritation when administered topically.

The study, required under the Investigational New Drug (IND) application opened in Feb 2018, achieved the primary objective of a low cumulative irritancy score for both concentrations (0.05% w/w and 0.2% w/w) with high statistical significance when compared to a placebo of distilled water.

 

Kromek (KMK.L) 30.75p £73.04m

Kromek, a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, announced that it has been awarded a new contract, by an existing OEM customer, expected to be worth a minimum of $58.1m over a seven-year period.

Under the terms of the contract, Kromek will supply Cadmium Zinc Telluride (CZT) detectors and associated advanced electronics to be used in state-of-the-art medical imaging systems. The Company’s technology provides higher resolution detection capabilities enabling better patient outcomes.

Kromek will deliver the contract over a seven-year period, commencing immediately, and will begin recognising revenue from the 2019/2020 fiscal year.

 

Palace Capital (PCA.L) 303p £139.03m

Palace Capital, the property investment company that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, announced the appointment of Mickola Wilson as a NED of the Company with effect from 1 Feb 2019.

Mickola is currently a Joint Owner and Director of Seven Dials Fund Management responsible for providing consultancy, research and investment management advice to the property fund management industry in the UK and worldwide. Prior to this role, Mickola was CEO of Teesland Plc for six years, having joined the business in 2002.

Mickola is an ambassador for Women in Property, an organisation that creates opportunities, expands knowledge and inspires change for women working in the property and construction industry.

 

Abcam (ABC.L) 1,237p £2,541m

Abcam, a global leader in the supply of life science research tools, announced that it has acquired Calico Biolabs Inc., a developer of custom high-quality recombinant rabbit monoclonal antibodies for diagnostic and biopharmaceutical companies.

The transaction strategically expands Abcam’s leading position in rabbit monoclonal antibodies, bringing a small catalogue of ready-made CAL antibodies™ for immunohistochemistry (IHC) in addition to custom development services. Calico partners with many of the leaders in diagnostics and biopharmaceuticals to create custom products for companion diagnostics.

Calico’s range of ready-made recombinant CAL antibodies™ for critical immuno-oncology targets will be made available at both research and commercial scale, via the Abcam global commercial network.

Financial terms of the transaction have not been disclosed and are expected to have a minimal impact on revenue and earnings for FY2019.

 

Eurasia Mining (EUA.L) 0.51p £11.74m

The Company updated shareholders on the West Kytlim platinum, palladium, rhodium, iridium and gold mine, and the plans for the coming year.

A contract for the 2019 season has now been agreed between Eurasia’s subsidiary Kosvinsky Kamen (‘KK’) and Uralmetmash to carry out mining of PGM and gold at the West Kytlim mine.

Work is expected to commence on site immediately, with first concentrate production expected in Apr, as and when running water becomes available

Work to continue initially at the Kluchiki area, where work finished on schedule in Nov 2018

Platinum revenues to be split on a 65%/35% basis, in favour of the contractor

Refinery contract between KK and the Urals precious metal refinery also renegotiated to include an extra percent payment on LME Platinum prices (now at 98% LME, from 97% in 2018)

 

Nucleus Financial Group (NUC.L) 160p £122.36m

Nucleus Financial Group, a leading independent wrap platform provider, published an update on its assets under administration (AUA) in respect of the 12-month period to 31 Dec 2018.

The Company continues to grow AUA, which stood at £13.9bn as at 31 Dec 2018, up 2.3% over the year against a challenging market backdrop which saw the FTSE All Share Index decrease by 13% and the FTSE 100 Index decrease by 12.5% during the same period. Advisers actively using the platform increased by 6% to 1,396 over the year while customer numbers grew by 7% to 93,175. Net inflows for the period were impacted by continued investor caution.

AUA for the fourth quarter of 2018 fell by 5.5% reflecting a fall in markets overall, with the FTSE All Share Index down 11% and the FTSE 100 Index down by 10.4% in the quarter. AUA has since recovered, in line with market movements, to £14.2bn as at 24 Jan 2019.

 

Avacta Group (AVCT.L) 47.30p £51.55m

Avacta Group, the developer of Affimer® biotherapeutics and reagents, announced the appointment of Dr Sam Williams as NED to the Board with immediate effect.

Dr Williams is currently Managing Partner and Head of Life Sciences at IP Group plc, the FTSE 250 investor in Life Sciences and Technology. He has an outstanding track-record in the biotech sector, both as a top-ranked biotechnology analyst in the City whilst at Lehman Brothers and, subsequently, as a Director and CEO, in which capacity he has overseen the development of novel therapeutics through early-stage clinical testing and successfully negotiated global alliances with major pharmaceutical companies. Thus, he brings extensive financial, operational and investment expertise to the Avacta Board.

Dr Williams was awarded a PhD in Molecular Biology by Cambridge University, earned while working in the laboratory of Sir Greg Winter, Nobel Laureate, and has a degree in Biology from Oxford University.

 

SimplyBiz Group (SBIZ.L) 170p £124.26m

SimplyBiz Group, a leading independent provider of compliance and business services to financial advisers and financial institutions in the UK, announced that Zest, its state-of-the-art, next generation employee benefits technology platform, has signed a three year contract with Taylor Wimpey plc.

Taylor Wimpey, one of the largest UK-focused residential developers, and a member of the FTSE 100 Index, has selected Zest to deliver its innovative employee benefits package to more than 5000 employees.

Under the terms of the contract, the Zest solution will provide its modern, flexible, and independent software that is quick to set up, easy to maintain and simple to use. Following a multi-year investment programme, Zest’s SaaS technology offers a high-quality employee experience whilst reducing administrative burden.  Zest’s tailored software platform has been configured and delivered to Taylor Wimpey.

 

Reabold (RBD.L) 0.7p £24.8m

Reabold announced that, further to its announcement of 3 Jan 2019, Integrity Management Solutions (“IMS”), contract operator of the West Brentwood field in which Reabold has earned a 50% interest, has informed the Company of a successful test at VG-4 ahead of pre-drill expectations.

Successful test at VG-4 ahead of pre-drill expectations, producing at a choked level of 480 bopd and averaging 742,000 cubic feet per day of gas

Oil cut averaged in excess of 99.5%

VG-4 well will now be prepared for production

Next well in the California drilling campaign expected to be Monroe Swell

Over a 19-hour period, the VG-4 well produced oil at rates as high as 1,029 barrels of oil per day before being choked back and averaged 480 barrels of oil per day. The cumulative oil produced was 371 barrels over the test period. The oil cut averaged in excess of 99.5%.

Additionally, the well averaged 742 thousand cubic feet per day of gas.

The well will now be prepared for production.

The next well in the Company’s California drilling campaign is expected to be on Monroe Swell which the Company will update the market on in due course.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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