Small Cap Feast

Small Cap Feast – 28 November 2019

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Dish of the Day:

Longboat Energy raising £10m at 100p on AIM. LBE.L   Got up to 105.2p at 0805 and closed at 99.68p mid. 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 .

 

Off the Menu:

No Leavers Today

 

Dish of the Day:

Off the Menu:

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.

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

Faron Pharma (FARN.L) 230p £102m

The US Food and Drug Administration (FDA) has approved the Company’s Investigational New Drug (IND) application for Clevegen® (FP-1305), enabling expansion of its ongoing MATINS trial into the US. 

The phase I/II MATINS clinical trial, already underway in sites through Europe, is investigating the tolerability, safety and efficacy of Clevegen, Faron’s wholly-owned novel precision cancer immunotherapy targeting Clever-1 positive tumour associated macrophages (TAM), in selected metastatic or inoperable solid tumours. Following this US IND acceptance, and as soon as the ongoing dose optimization has been completed, Faron plans to open new study sites in the US to facilitate a rapid expansion of part II of the study, investigating the safety and efficacy of Clevegen in various cancer cohorts.

 

Vast Resources (VAST.L) 0.32p £34.9m

 Vast has revised its agreement with Botswana Diamonds plc (BOD.L) as a consulting partner in the development of the Chiadzwa Community Diamond Concession in the Marange Diamond Fields of Zimbabwe.

BOD will provide to Vast free of charge immediately and for a period of 5 years from Finalisation the benefit of its knowhow (for a minimum of 40 hours per month) as shall be appropriate on all aspects of exploration, mining, processing and marketing in relation to the Chiadzwa Community Diamond Concession.

Vast will provide all capital requirements for the project commencement on a loan account to SPV up to US$10million.

The shareholdings in the SPV will be BOD 2.5% and Vast 97.5% and the further terms of the Agreement will come into effect.

 

Adams (ADA.L) 4.5p £3.7m

HY Nov19 results.  Experienced a challenging six months to 30 September 2019 in terms of the performance of its investment portfolio and incurred a loss after tax of £46,000. The reduction in profitability is principally due to lower investment returns of only £23,000 compared to £598,000 in the previous September 2018 half year.

During the six months ended 30 September 2019, the Company spent £559,000 on 3 new equity investments and generated cash proceeds of £579,000 from the realisation of its investment in Midatech Pharma Plc.

The Company held cash balances of £309,000 at 30 September 2019, and it had not drawn down any part of its £3 million unsecured loan facility at that date. Net assets attributable to shareholders of Adams at 30 September 2019 were £2.32 million (equivalent to 2.81 pence per share)

 

DX Group (DX..L) 12.5p £71.7m

AGM Statement from the provider of delivery solutions, including parcel freight, secure, courier and logistics services .

“Group trading in the first four months of the new financial year shows a stepped improvement over the same period last year. This reflects the structural organisational and operational changes made in both divisions, DX Express and DX Freight, over the last 18 months, and in particular the continuing performance improvement at DX Freight. Management’s attention is now focused on sales and operational improvements across all areas of activity with the Group’s ongoing transformation being supported by a major £10m investment programme “. “DX’s trading is seasonally weighted towards the second half of the financial year, and taking this into account, the Board believes that the Group is well-positioned for continuing progress and to meet its targets for the current financial year.”

Bahamas Petroleum (BPC.L) 2.1p £44.8m

 BPC provided details of several important in-country developments, as the Company continues its coordinated work effort toward drilling of an exploration well in The Bahamas in 2020.

Highlights

  • Process initiated seeking to provide Bahamians with an opportunity to invest in the Company’s nationally significant project, via creation of a Bahamian-domiciled mutual fund that will exclusively hold BPC shares
  • Environmental Authorisation process and data collection proceeding to schedule, consistent with drilling timetable; Environmental Baseline Survey commenced, following timely receipt of necessary permits from Government of The Bahamas

 

Premier Miton (PMI.L) 160p £260.6m

Audited results for Premier Asset Management Group PLC (“Premier”) for the year ended 30 September 2019. Merger  creates diversified asset manager business with pro-forma assets under management of £11.1 billion (as at 31 October 2019) and greater financial strength to grow.

Adjusted EBITDA of £19.2 million (2018: £19.1 million)

  • Adjusted profit before tax3 of £19.0 million (2018: £18.9 million
  • Total dividend:10.50p (2018: 10.25p) an increase of 2.4%

“The launch of Premier Miton creates a new, diversified active UK asset management business with a strong investment capability that leverages an efficient platform, including a wider product range, greater scale, enhanced distribution relationships with the opportunity for compelling value creation for shareholders. I believe Premier Miton is well positioned for future growth. “

 

Hornby (HRN.L) 34.5p £43.22m

 HY Sep 19 results.

  • Group revenue of £15.9 million (2018: £13.8 million) an increase of 15% on prior year
  • Operating Group loss before tax of £2.4 million (2018: loss of £3.0 million)
  • Statutory loss before taxation for the period of £2.5 million (2018: loss of £3.2 million)
  • Net debt of £8.4 million (2018: £1.8 million)

We are heading into our key Christmas trading period and so it is difficult to tell what the outcome will be for the full year results at the moment. Our sales continue to be above where they were last year but the last few years of general retail data shows that customers are leaving gift buying later and later each year as delivery companies and online retailers improve their services.

 

Active Energy Group (AEG.L) 0.505p £6.1m

AEG has agreed terms for the issuance of its first CoalSwitchTM Licence Agreement (the “Licence Agreement”) to RMD Environmentals, Inc. (“RMDE”), a British Columbia based forestry management and environmental engineering and consultancy business, to develop and manage projects involving the use of CoalSwitchTM technology in each of the Crown Provinces of Alberta and British Columbia in Canada.

AEG has received from RMDE a license fee of US$ 1.8 million (CAD 2.4 million) and will receive subsequent royalty payments of US$5.00 per tonne on all Licensed Product that is produced by RMDE, its clients or partners, for the duration of the Licence Agreement.

 

W Resources (WRES.L) 0.355p £22.3m

The tungsten, tin and gold mining company with assets in Spain and Portugal, has commenced production of tungsten and tin concentrate for sale at its flagship La Parrilla mine, an important stage in the T2 ramp-up phase. This sets the Company on-track towards achieving its target 2 million tonnes per annum run-of-mine, to produce 2,700 tonnes of WO3 concentrate.

 

Sigma Capital (SGM.L) 93p £83.2m

Sigma, the private rented sector, residential development and urban regeneration specialist, is pleased to announce that its letting brand Simple Life won the ‘Build-to-Rent Company of the Year’ award at the Property Management Awards 2019.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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