Small Cap Feast

Small Cap Feast – 29 November 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 920

Total number of AIM Companies trading: 850*
* As at 26 November 2018

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 26 November 2018

Set Menu Standard List:

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

Total number of Standard List Companies trading: *
* As at 26 November 2018

Dish of the Day:

No Joiners Today

Off the Menu:

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Dish of the Day:

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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

Chi-Med (HCM.L) 5444p £3.6bn

Multiple Collaborations to Evaluate Combinations of
Surufatinib and Fruquintinib with PD-1 Checkpoint Inhibitors

Today, Chi-Med is announcing the first steps to develop its vascular endothelial growth factor receptor inhibitors, surufatinib and fruquintinib, in combination with various programmed cell death protein-1 monoclonal antibodies in several solid tumor settings:

A global collaboration to evaluate the combination of surufatinib with toripalimab (JS001), a PD-1 monoclonal antibody being developed by Shanghai Junshi Biosciences Co. Ltd.; A global collaboration to evaluate the combination of fruquintinib with sintilimab (IBI308), a PD-1 monoclonal antibody being developed by Innovent Biologics (Suzhou) Co. Ltd.; A collaboration in China to evaluate the combination of surufatinib with HX008, a PD-1 monoclonal antibody being developed by Taizhou Hanzhong Pharmaceuticals, Inc.; and a collaboration in China to evaluate the combination of fruquintinib with genolimzumab (GB226), a PD-1 monoclonal antibody being developed by Genor Biopharma Co. Ltd.

Ariana Resources (AAU.L) 1.47p £15.5m

Results of recent exploration at the Salinbas Gold Project  in Turkey.  Salinbas is located in the Hot Gold Corridor and is 100% owned by Ariana.

Composite channel-sampling at road cuts along the newly built access road to the Ardala Porphyry returned 12m @ 1.08g/t Au + 32.65g/t Ag + 1.39% Pb + 0.31% Zn; including 3m @ 2.65g/t Au + 118g/t Ag + 5.47% Pb + 1.03% Zn.

Conventional soil sampling partly along the target boundary of the Salinbas Exploration Target returned exceptional results including: 5.02g/t Au + 405g/t Ag + 0.48% Cu + 1.45% Pb + 0.26% Zn.

2,000m of Reverse Circulation (RC) drilling is scheduled to commence in Q2 2019 from freehold land and existing forestry permits.


Hostelworld (HSW.L) 180p £174m

Strengthened management team is now in place; – The strategy is to enhance competitiveness and deliver a return to growth by focusing on investment in core customer acquisition and core platform enhancements; and will be supported by investments during 2019, including an expansion of the existing Porto development centre.  “EBITDA for the full year to 31 Dec 2018 is expected to be in line with the Board’s expectations. As communicated at the time of the Company’s interim results in Aug 2018, growth in Group like-for-like gross bookings is likely to be flat for the full year, given the expected declines in our supporting brands. Continued effective management of our cost base, combined with strong ABV, is helping to offset the impact of flat bookings. We continue to see strong underlying cash conversion in 2018. The initiatives identified as part of the strategic review will require additional investment during 2019, with growth in bookings expected to be seen in 2020. However, the Board expects the business to return to modest EDITDA growth in 2019.”


Dignity (DTY.L) 849p £424.7m

“The UK’s only listed provider of funeral related services, acknowledges today’s announcement from the Competition and Markets Authority (“CMA”) regarding the provisional findings of its study into the funerals market and notes its proposal to carry out a full market investigation. Dignity is considering the recommendations in detail and notes the key findings. Dignity has engaged constructively with the CMA since the market study was announced in June 2018 and strongly supports the opportunity to improve standards within the sector and meet the expectations of consumers.”

The CMA today proposed a “major funerals probe after identifying serious concerns”.


Shefa Yamin (SEFA.L) 60p £8.54m

The “precious stone exploration company in Northern Israel, announced a significant increase in the estimated tonnages of mineralised placer (basal) gravels for its Kishon Mid-Reach project following the results of the Note For The Record (“NFTR”) report.

Highlights of results from the report:

Zone 1 hosts approximately 1.1 Mt of mineralised placer (basal) gravels, trebling previous estimates of 350,000 t from the Competent Person’s Report (“CPR”)

Total estimated exploration target for Zones 1-3 of almost 5 Mt”.


Bilby (BILB.L) 94.5p £38.1m

The gas heating, electrical and building services provider, has acquired the entire issued share capital of R. Dunham (UK) limited, an electrical services company, for a maximum cash consideration of £1.4m together with the issuance of 250,000 shares that are subject to a twelve month lock up period.

The acquisition is another important step for Bilby enabling it to broaden its customer base and strengthen its presence in its core London and South East markets.

The cash consideration will be funded from the Company’s existing debt facilities. In the year to 31 Dec 2017 R. Dunham generated unaudited revenues of £3.8m, EBITDA of £242,000, PBT of £158,439 and had net assets of £557,581. On completion of the acquisition, Bilby will be repaying Mark Dunham’s director’s loan (being approximately £250,000).


Asiamet Resources (ARS.L) 4.55p £42.7m

$3.3m / £2.6m placing at 4.25p. The net proceeds from the Placing will primarily be used to:

complete the BKM feasibility study with additional infill drilling program to upgrade inferred resources and provide increased data through geotechnical drilling for mine design parameters.  This work will ultimately deliver the final feasibility study for the BKM copper project during H1 2019;

drill walk up targets in the BKM project area, extend the BKZ resource and drill the Baroi prospect, subject to permitting; and

commence CSR programmes on the Beutong copper-gold project and continue to plan and evaluate strategic development options for the Beutong copper-gold project.


Genedrive (GDR.L) 23p £4.3m

The near patient molecular diagnostics company, today announces that it will participate in an international multicentre trial (‘REACH’) to assess the impact of out-reach HCV diagnostics and therapy in a pharmacy setting versus conventional treatment pathways. The study, led by Prof. John Dillon, Professor of Hepatology and Gastroenterology at the University of Dundee and funded by AbbVie will cover up to 40 pharmacies across three sites in Scotland, Wales, and Australia.

The REACH study will focus on people undergoing opiate substitute therapy, a patient population traditionally resistant to travel, suggesting a ‘Test and Treat’ outreach-based diagnostic and treatment pathways could provide an effective solution to the HCV epidemic in this population.


Synectics (SNX.L) 190p £33.8m

The specialist “in the design, integration, control and management of advanced surveillance technology and networked security systems provided an update on trading FYNov18.

Underlying profit before tax for the year ending 30 Nov 2018 is anticipated to be broadly in line with market expectations. Trading in the second half of the year has continued the trends in recent prior periods; in particular a weak performance in the UK on-vehicle security sector has been offset by strong results from global Gaming security. The Group’s year end net cash position is expected to have strengthened to approximately £6.5m (2017: £3.8m), its pipeline of expected new business is somewhat stronger than originally expected, and the Board is increasingly confident of solid progress in the Group’s results in the coming year.

As reported in the Company’s interim results announcement, UK new bus registrations in 2018 are down significantly compared to last year, which has adversely affected Synectics’ on-vehicle security activities. In addition, a large bus operator customer chose not to renew its fleet service contract on terms acceptable to Synectics, and a second customer took its service work in-house. As a result, management has restructured this business area, reducing operating costs by approximately £1.2m in the financial year to 30 Nov 2019.”


OptiBiotix (OPTI.L) 97.19p £82.3m

OptiBiotix “has agreed to grant an exclusive license agreement to Nutrilinea S.R.L. for the production, packaging, and supply of SlimBiome Medical in Europe with the aim of maximizing the financial return for both parties. The agreement secures manufacturing for OptiBiotix’s award winning SlimBiome® weight management product recently granted medical device status and CE mark (RNS: Nov 27 2018). Nutrilinea will formulate and package SlimBiome® Medical in boxes of 30 single sachet doses for sale to its own European partners and OptiBiotix’s growing list of existing and potential international partners.

Nutrilinea has over 15 years’ experience in the design and development of customised formulations and presentations (capsules, tablets, sachets) for the supplement and pharmaceutical industry.  Nutrilinea has established an international reputation for providing innovative product formulations and presentations and is one of Europe’s fastest growing providers of food supplements with year on year growth of 30% over the last 5 years and revenues of €70m. Nutrilinea has become a valued partner of OptiBiotix and has been instrumental in the development of the Company’s own brand CholBiome® and the rapid sales growth of OptiBitiox’s LP-LDL products.”


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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