Small Cap Feast

Small Cap Feast – 29 November 2019

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What’s Cooking in the IPO Kitchen?

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

ThinkSmart (TSL.L) 16p £17m

AGM Statement. “It has been a transformational year for ThinkSmart.

The sale of 90% of ThinkSmart’s Clearpay business to the Australian listed Afterpay Touch Group in August 2018 was a significant positive point for the Group and its shareholders, delivering a profit on sale of £7.9 million plus a further £1.6 million gain on the sale of the one million Afterpay shares received as consideration.”

We are encouraged by the early growth of the Clearpay business in the UK which Afterpay recently announced has transacted over AU$100 million of  underlying sales in the 4 months to 31 October”.

Has also  issued a claim against The Carphone Warehouse Ltd for damages for losses estimated at £20m

 

Edenville Energy (EDL.L) 0.03p £1.5m

Corporate update.  Significant investments have been made in plant and equipment at the Project site, including wash plant upgrades and the purchase of the Company’s own trucks in August 2019. The Company has also been able to begin mining at the new Northern Area, which has yielded near surface and thicker coal zones (up to 40m thick versus previous thicknesses of 3.5m) and also higher energy value coal than that previously mined. However, since the announcement of the interim results for the six months to 30 June 2019 on 27 September 2019, further operational progress has been limited, primarily due to working capital constraints and the onset of the rainy season at the beginning of November.

Current funding does not provide sufficient working capital to enable the Project to operate at its planned capacity, nor to continue the 2020 monthly payments to Lind in cash. Various funding options are on the table at project and company level.

 

Alexander Mining (AXM.L) 0.0275p £1.2m

Suspension and advanced negotiations for RTO of  eLight, an “Energy Efficiency as a Service” company with operations in the UK and Ireland which provides commercial customers with immediate energy and cost reductions with zero upfront investment.

eLight had revenues of approximately 4.5m and loss before tax of approximately 1.6m in the period to June 2019.

As consideration for the Proposed Transaction and Disposal, eLight Shareholders will be issued pro-rata 6 new ordinary shares in Alexander for every 1 ordinary share currently in issue.   It is proposed that David Nicholl, Harvey Sinclair, Richard Williams (eLight directors) and Andrew Lawley will join the board of the enlarged group while the current directors of the Company, with the exception of Dr Nigel Burton, will resign from the board.

 

Woodbois (WBI.L) 6.3p £29.3m

 MoU with a leading West African timber supplier (“Supplier”) to offtake all of their timber production in Liberia. A formal offtake agreement is expected to be entered into in January 2020.

Under the terms of the MOU, Woodbois will have exclusive right of first refusal to purchase.

The formal offtake agreement is expected to generate material additional trading revenue for the Group in 2020, with scope to increase as the agreement develops.

The MOU shall automatically renew on 31st December 2020, unless otherwise agreed. Either party may terminate the MOU at one month’s notice.

 

Aura Energy (AURA.L) 0.35p £4.6m

Completion of a successful program of metallurgical leach test work examining vanadium recovery by acid pressure leaching for the Häggån Vanadium Project, Sweden.

The program was carried out on a total of three drill hole composite samples defined as representative of the mineralisation within the Häggån Vanadium High Grade Resource following consultation with the ASX on the Häggån Scoping Study. 

The test work resulted in vanadium recoveries of up to 96.9% to leach solution, with average recovery of 96.5% V2O5.  This strong result for scoping level leaching test work provides the company with confidence that the proposed process flow sheet for the Häggån Vanadium Project is robust.

 

Quadrise Fuels International (QFI.L) 3.7p £36.7m

 “The Board believes that QFI has demonstrated staged progress during the year in a number of areas that have enabled the Company to increase the breadth and depth of the market opportunities it is concurrently pursuing. As we indicated both at the time of the interims and the preliminary results, this progress  has not always been as smooth, or as rapid as we would like, nonetheless this approach is enabling QFI to be benefit from the skills, experience and network of relationships from our various partners, with no immediate cash cost”. We were delighted that, following the announcement of the initial £2m tranche of the £4m Bergen funding, with strong support from both existing and new shareholders, the Company was able to secure funding of £4.5 million during Q3 2019 which will enable QFI to continue its business development activities through to the end of 2020 on the basis of current planned expenditure.

 

Advanced Medical Solutions (AMS.L) 253.5p £544m

The surgical and advanced woundcare specialist company, has today been notified by one of its third party medical device sterilisation partners of a failure at one of their UK e-beam sterilisation facilities. Consequently, many of the December orders for the Company’s topical adhesive product, Liquiband®, will not be sterilised and shipped to customers during this financial year ending 31 December 2019.

The full financial impact will not be known until after the closing of the financial year but it is potentially up to £2 million of EBITDA.

 

CAP-XX (CPX.L) 3.15p £10.2m

Has conditionally agreed to acquire the equipment currently used in the supercapacitor production lines of Murata Manufacturing Co., Ltd of Japan.  The Board is of the view that the Acquisition represents a compelling opportunity to acquire high-quality, modern supercapacitor manufacturing assets, which have become available to CAP-XX at a very low cost.

Raising £2.6m at 3p with additional offer to raise up to £0.75m at the same price  to qualifying shareholders.

 

Watchstone Group (WTG.L) 140.5p £66.3m

Canadian subsidiary, Quindell Services Inc. still awaits a final change of control consent in respect of its agreement to sell its wholly owned subsidiary PT Healthcare Solutions Corp. and other subsidiaries forming its Canadian Healthcare services business to 11628542 Canada Inc. a wholly owned subsidiary of LM Holdings Corp. The parties have, therefore, agreed to extend the long stop completion date to 31 December 2019 as they await the final consent.

 

Blackbird (BIRD.L) 14.6p £43.17m

 Raising £5.54m at 14p. The Placing Shares have been placed with existing and new institutional investors, including existing shareholders, certain Directors and family of the Directors.

Proceeds to be applied to marketing, team expansion, product development and  to  strengthen the Company’s balance sheet, facilitating longer-term deals with new customers.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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