Small Cap Feast

Small Cap Feast – 30 March 2020

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

DRI Healthcare—investment company focused on investments in healthcare Royalty Assets  looking to raise $350m.  Timetable now extended.

 

Breakfast Buffet

Alpha FX 520p £195m (AFX.L)

COVID-19 Trading Update.

Since 18 March, the rapid acceleration of COVID-19 and consequential government enforced lockdowns in major economies has resulted in an unprecedented and ongoing slowdown in global trade.  Whilst the Group has recorded a strong first quarter, including a record quarter from Alpha Payment Solutions, it is also mindful that the need for clients to transact FX is closely linked to global trading activity.  Although it is difficult to forecast in the current environment, AFX currently anticipates a reduction in FX activity, and in particular forward contracts, as  clients delay or even cancel their commercial activities until their outlook becomes clearer.  As a result, at this early stage of the COVID-19 crisis the Board’s preliminary view is that revenue and underlying earnings will be broadly close to FY2019 results. Mindful of current macro conditions, AFX will also be considering whether to increase its bad debt provision.

Seeing more than usual margin calls from clients and is being supportive.

The Group remains well capitalised, cash rich and debt free, and has made moves into new products and markets, including Alpha Payment Solutions and our sales offices in both Canada and Amsterdam.

 

AMINO Technologies 112.5p £85.5m (AMO.L)

AGM Statements “ We have implemented parts of our business continuity plan to enable all our global staff to work remotely. The measures we have taken have ensured that service delivery and customer support has continued as normal, while also carrying out our duty of care for our staff, customers, partners and their families. Our Hong Kong office has been operating in this mode for more than two months.

We are now enabling our customers to meet this latest disruptive challenge. Our teams are working diligently to ensure that our video streaming services and apps keep up with increased usage. In addition, we are supporting our customers with tools and services that can help with social distancing. These comprise solutions that can remotely manage, support and install devices in the home and which therefore remove the need for engineers to visit the home. “

Factory closure in China have however dampened the outlook.

The Group has a strong balance sheet and robust liquidity. The Board is taking a prudent approach to preserve the Group’s liquidity and cash position, including the suspension of dividends until market conditions stabilise.  The Group has gross cash as of the date of this announcement of c.$3.2m, drawn credit facilities of approximately $4.5m and undrawn credit facilities of $10.5m.

 

British Honey Co 115p £10.5m (AQUIS:BHC)

Corporate Update:

Strategic Collaboration to provide BHC with access to £65 Billion US spirits market;

The Agreement gives BHC access to List’s extensive distribution network which covers more than 12 States across the US, a highly cost-effective way of market entry given the fragmented nature of the retail spirits market there. BHC has already identified the US, which has an estimated spirits market by value of over £65 billion annually, as one of two key territories where it is looking to focus its overseas marketing efforts, the other being China.

Operational focus moving to market-ready brands and production of Alcohol Sanitiser;

Termination of JV to develop new product

&

Multiple International Awards at 25th Annual San Francisco World Spirits Competition

 

Caledonia Mining 750p £86.4m (CMCL.L)

Caledonia notes the announcement by His Excellency, President E.D. Mnangagwa on March 27, 2020 of a nationwide lockdown of Zimbabwe to restrict the spread of COVID-19 infections.  In terms of these regulations all commercial activities other than “essential services” must suspend operations from March 30, 2020 for a period of 21 days.

Although the Zimbabwe authorities have confirmed that gold mining is not an essential service, Blanket is currently permitted to continue with its operations, as  the authorities will grant exemptions for businesses which demonstrate they can operate in a manner that contributes to the management of the spread of COVID-19 infections.  Blanket Mine has applied for such an exemption on the grounds that:

  • Blanket and its employee village can be quarantined from the surrounding area; and
  • Blanket will re-configure its operations to reduce the risk of infections being transmitted amongst its employees. 

 

Ergomed 405p £195m (ERGO.L)

The company focused on providing specialised services to the pharmaceutical industry, today announces that it will provide drug safety services through its specialist pharmacovigilance provider, PrimeVigilance, for an ongoing US clinical trial to assess the effect of a rheumatoid arthritis treatment on patients with severe COVID-19 infection.

 

Medica Group 99.35p £110m (MGP.L)

The UK market leader in the provision of teleradiology services, announces that Richard Jones has been appointed as Chief Financial Officer (CFO) and an Executive Director of the Board. Following a transition period, Richard will join the Company later in the year at a date to be announced in due course.

 Richard brings with him 20 years’ extensive experience working with and in fast-growing healthcare businesses, nine of which as a proven CFO of two listed healthcare UK companies. Richard is currently CFO at Mereo BioPharma Group Plc and was previously CFO at Shield Therapeutics Plc. He is also currently a Non-Executive Director and Chair of Audit Committee at Alliance Pharma Plc. Richard, a Chartered Accountant, started his career with PwC and moved into investment banking where he specialised in the healthcare services sector, initially as a research analyst and then into corporate finance as Head of Healthcare at Investec.

 

Frontier IP Group 56p £28.4m (FIPP.L)

The specialist in commercialising intellectual property, notes today’s announcement from portfolio company Elute Intelligence Holdings Limited (“Elute”) about the launch of a dedicated, free-to-use online COVID-19 Document Reader based on its novel artificial intelligence.

The Document Reader is aimed at supporting scientists researching the disease and related coronaviruses by making it easier and quicker for them to find relevant research. Frontier IP holds a 43 per cent equity stake in Elute.

The approach is very different to conventional keyword or Boolean search technologies.  A patent application has been filed to protect developments of the technology.

 

Cora Gold 4.7p £6.1m (CORA.L)

Drilling commenced at the highly prospective Madina Foulbé Permit , located in eastern Senegal within the prolific Kedougou-Kenieba Inlier gold region, which historically has seen over 50m ounces of gold discovered.

  • Commenced 2,000m reverse circulation (“RC”) drill programme at the Permit to test mineralisation at depth
  • Initial two priority targets identified within the 260 sq km permit: Tambor – 2.5km long gold anomaly-  Madina – 2km long gold anomaly

Due to be completed in April 2020 with results expected in Q2 2020

  • Previous shallow rotary air blast reconnaissance drill results including:

o  3m @ 41.2 g/t Au; and   3m @ 7.9 g/t Au

  • Solar hybrid installed to power the camp to reduce fuel consumption and CO2 emissions

 

Active Energy Group 0.395p £4.8m (AEG.L)

The international biomass based renewable energy business, announces that the public comment period for the construction and air permit for the Company’s CoalSwitch™ plant at the Lumberton site has been further extended until 27th April 2020 due to state guidance to protect public health and limit gatherings during the COVID-19 crisis. This extension is in response to the cancellation of the public meeting, which was originally scheduled for 16th March 2020 and was granted citing the Division’s effort to balance regulatory requirements with the public interest in avoiding public gatherings based on current state mandates regarding COVID-19. The Division of Air Quality continues to accept public comment on the draft Permit before the final action.

 

Pires Investments 2.05p £1.36m (PIRI.L)

Update on its investment in Sure Valley Ventures  in relation to VividQ Limited,, a company within the SVV portfolio. Following on from SVV’s initial £1m investment in VividQ, the company announced on 16 December 2019 that it had secured additional funding of £2.4m from two new investors, FluxUnit – OSRAM Ventures and University of Tokyo Edge Capital (UTEC), making a total of £3.4m for this funding round. Fluxunit is the independent venture capital arm of OSRAM, a global photonics company. These two new strategic investors are well connected in the German and Japanese automotive markets, respectively. VividQ ( www.vivid-q.com ) is a software company with leading expertise in 3D holography.  Pires has a circa 13% interest in SVV.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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