Small Cap Feast

Small Cap Feast – 28 November 2018

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

SEEIT will be the first UK-listed investment fund of its kind to invest exclusively in the energy efficiency sector. Looking to raise £150m. Due 11 Dec

AJ Bell—one of the largest investment platforms in the UK—Expects to publish prospectus end Nov. FYSep18—revenues up 19% to £89.7 million, profit before tax up 31% to £28.4 million.  Secondary sell down, Due December.

Sirius Aircraft Leasing Fund targeting a raise of US$250m  – objective is to provide investors with an attractive level of regular income and capital returns through investing primarily in used, single-aisle aircraft. Due 5 Dec

MOD Resources—(ASX:MOD) A$78.7m mkt cap.  Copper exploration and development company focused on the central and western Kalahari Copper Belt in Botswana.  Introduction only. Due c.26 Nov.

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 end Nov.


Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov

Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.

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 early December.

Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA. Due early Dec

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.

The Panoply parent company of a digitally native technology services group founded in 2016 with the aim of identifying and acquiring best-of-breed specialist information technology and innovation consulting businesses across Europe, is looking to join AIM. Offer £5m new capital, £400k sell-down, market cap of £30m, expected late 4 Dec 2018.

Breakfast Buffet

SafeCharge International (SCH.L) 263p £386.58m

Trading ahead of the 2018 year-end has been strong, with the Group’s processed volume for the full year anticipated to be about $14 b, up more than 40% on 2017. Revenue for the full year is expected to be above market expectations, in the range of $135-138m.

The Company continued its platform development and investment in sales and marketing to support future growth and accelerate the Group’s entry into new verticals and geographies. As such, Adjusted EBITDA is expected to be in line with market expectations.

The Company continues to make considerable progress with its strategy of winning clients within both traditional and new target markets and verticals, specifically in online retail, travel and marketplace, with recent wins including World Duty Free and the online marketplace Lev Cargo.

The Board is pleased with the Company’s strong performance during the year. The Group enters 2019 with an expanded client base and strong pipeline which gives us confidence for 2019 and beyond.


VietNam Holding (VNH.L) $2.4 £101.8m

VietNam Holding announced the payment of the interim distribution to shareholders who participated under the Tender Offer. Relevant shareholders will receive $1.5 in respect of each validly tendered Ordinary Share, representing approximately 60% of the Tender Pool. The distribution payment will be made on 6 Dec 2018. Balancing Share certificates will be dispatched and CREST accounts settled in respect of the Tender Offer shares on 6 Dec 2018.

The Tender Pool continues to be realised and once the cash proceeds from the realisation of the remaining investments have been received the Company will make a final distribution. An announcement regarding the final distribution will be made in due course which is expected to occur by the end of Dec 2018.

Terms used and not defined in this announcement shall have the meaning given to them in the Circular dated 8 Oct 2018.


appScatter Group (APPS.L) 21.5p £18.9m

appScatter Group, the intelligent app management platform, announced that it has signed an agreement with IHS Markit to provide mobile app data to support analysis of the mobile games market, mobile games companies and title performance.

The combination of appScatter’s mobile app data and IHS Markit’s extensive knowledge of the app economy will deliver deeper insight into market opportunities. The agreement marks appScatter’s first major collaboration with an information services business, with app performance and market sizing data to be cited in the IHS Markit Games Intelligence Service, as well as relevant press activity.

“We are excited to showcase our app data with respected partners like IHS Markit. Their ability to recognise and communicate trends in the global app market will benefit the whole industry.”


Pantheon Resources (PANR.L) 17.6p £39.66m

Pantheon Resources, the oil and gas exploration company with a 50% – 75% working interest in several conventional project areas in Tyler and Polk Counties, onshore East Texas announced the following update on VOS#1 well.

The VOS#1 well was connected to the Enterprise pipeline system on 1 Nov. Cleaning up the well, which had been shut-in for over 2 years, has taken time. The well is being conservatively managed and is today producing at a rate of 2,000 mcfpd with a trace of oil on a 10/64ths choke. The flowing tubing pressure (“FTP”) is 7800 psi.

“After over a 2 year shut-in period the well is exhibiting good characteristics with good reservoir energy. Now that Pantheon controls operations, we will manage this well conservatively in order to avoid any reservoir damage. With today’s strong gas prices, the well can generate valuable cash flows for Pantheon.”


Regency Mines (RGM.L) 0.38p £2.57m

Regency Mines, the natural resource exploration and development company with interests in hydrocarbons and battery metals, provides an update on progress at its 47% owned associate Mining Equity Trust LLC.

October sales of coal amounted to 43,530 tons for revenues of $2m. This compares with 44,020 tons of coal in Sept for total revenues of $1.96m.

One of the two highwall miners has been relocated and reassembled this month at a new location, Kilgore, that is closer to the main customer and where it can operate for up to 20 months and has the capability to work two shifts. This was a planned move that should increase both production levels and profitability.

The other highwall miner is currently operating on a single shift as it completes mining of the reserve base at the Mudlick location. Once the current reserves have been exhausted at Mudlick, which is anticipated to occur in late 2018 or early 2019, the machine will be moved to one of two available sites.

Following these moves, production tonnages are expected to increase significantly.


Crusader Resources (CAS.L) SUSPENDED

Crusader Resources provided a final update to the Posse legal case, as well as noting the payment of the second monthly instalment from Inter Invest B.P. S/A via SPV CNS Empreendimentos Em Transportes E Minerios Eireli.

Following the successful judgement passed down by the Brazilian courts on 26 Oct 2018, and subsequently announced on 29 Oct 2018, the Company received its second instalment payment of R$0.2m (approx. $0.05m) on 19 Nov 2018.

This is the second payment of the agreement, in which the Buying Company is required to make monthly payments of between R$0.2m (approx. $0.05m) and R$0.25m (approx.$0.06m) between Nov 2018 and Mar 2019. This will then be followed by 8 monthly payments of approximately R$1m (approx.$0.27) between Apr 2019 and Nov 2019.


Eco (Atlantic) Oil & Gas (ECO.L) 43p £68.1m

Eco (Atlantic) Oil & Gas, the oil and gas exploration company with licenses in highly prospective regions offshore Guyana and Namibia, announced the completion of its Farm-Out Agreement with Total Petroleum’s subsidiary Total E&P Activités Pétrolières on Eco’s Orinduik block, offshore Guyana. All required Government authorisations have been obtained, the relevant partners’ approvals have been executed, and the necessary government transfer fees have been paid. Accordingly, Total has transferred to Eco yesterday the balance of $12.5m for a 25% Working Interest in Orinduik.

With completion of the transaction, the working interests on Orinduik are now as follows:

Tullow – 60% WI (Operator)

Total – 25% WI

Eco – 15% WI


Quadrise Fuels International  (QFI.L) 2.48p £21.34m

The Company announced it has signed a MOU and MSAR® Pilot Test Programme with a European multinational integrated oil and gas company.

Further to the MOU, Quadrise and the Major intend to work together to discuss, promote and develop specific business development opportunities to identify potential MSAR® clients for one of the Major’s European refineries, to develop a focused high level MSAR® fuel market assessment for the Refinery and to pursue and obtain a feasibility study agreement from a potential MSAR® fuel client for the consumption of MSAR® produced at the Refinery during 2019.

Under the MTP, Quadrise will be undertaking testing of specific Refinery residues for the Major at the Quadrise Research Facility  during early 2019 on a paid basis to demonstrate and optimise the blending of Refinery residues to MSAR® fuel.


Sativa Investments (NEX:SATI) 6.75p £34m

Sativa Investments investee business, UK CBD manufacturer and distributor George Botanicals, has expanded its range of CBD products with the launch of a CBD balm, along with a range of MCT (medium-chain triglycerides) oils in raspberry, chocolate & hazelnut, and black-forest gateau flavours which complement drinks including coffee, tea and soft drinks.

Demand for CBD products is growing fast as consumers seek the well-being effects of CBD which are believed to include relief for pain and anxiety. The human body is constantly producing cannabinoids, and these natural CBD products are thought to boost internal cannabinoids in a similar way as vitamin supplements. CBD products are manufactured using extracts from the flowers and leaves of the hemp plant and the products have no known adverse side effects.

The George Botanicals range, which extends to drops, capsules, edible gels and vapes, is sourced to be organic, vegan-friendly and gluten-free, with all merchandise tested at an on-site laboratory and fully compliant with industry standards.

The balm contains one per cent of CBD and is made primarily of organic ingredients including shea butter, cacao butter and vitamin E. It can be applied easily direct to skin to address problems such as rashes and joint aches including arthritis.


Trinity Exploration & Production (TRIN.L) 13.62p £52.33m

Trinity Exploration & Production, the independent E&P company focused on Trinidad and Tobago, announced the appointment of Nicholas Clayton, as its Senior Independent NED, with immediate effect. Mr. Clayton will be Chair of the Remuneration Committee and a member of the Audit Committee.

Mr. Clayton has provided strategic and corporate finance advice to, and has been a non-executive director of, a number of public and private oil and gas companies since 2007.  Prior to that, he held a series of senior oil and gas corporate finance roles, including Global Co-Head of Oil and Gas Corporate Finance for Canaccord Adams and Global Head of Oil and Gas Corporate Finance for Dresdner Kleinwort Wasserstein. Mr. Clayton started his career with BP, before moving into financial services where he specialised in the oil and gas sector. He brings to the Board 37 years of experience within the oil and gas sector as a practitioner, a director, and as an adviser. He currently serves as a Non-Executive Director of Alpha Petroleum Resources Limited.


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Derren Nathan
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