Small Cap Feast

Small Cap Feast – 30 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:

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, has joined AIM. Offer raising £27.3m at 40p with market cap of £96.1m.

Off the Menu:

No Leavers Today

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

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.


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.

Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December

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

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

Sareum Holdings* (SAR.L) 0.7p £20.13m

Sareum has noted that Sierra Oncology, the licence holder advancing clinical cancer candidate SRA737, has reported preclinical efficacy data for an immunotherapy combination with its Chk1 inhibitor SRA737 in a poster that was presented at the American Association for Cancer Research (AACR) Conference on Tumor Immunology and Immunotherapy in Miami Beach, Florida.

“We are encouraged by the findings of this study, which was presented at AACR. It showed SRA737 activated the innate immune signalling Stimulator of Interferon Genes pathway and demonstrated clear anti-tumour activity in an immunocompetent preclinical model of small cell lung cancer. These are important findings as SCLC remains a significant unmet need and one where immunotherapies have yielded limited efficacy. These encouraging preclinical results highlight an additional potential opportunity for SRA737 that warrants further evaluation.”


Metal Tiger (MTR.L) 1.35p £18.56m

Further to the announcement of 20 August 2018, KML has now completed due diligence and entered into an earn-in agreement with Resource Exploration and Development Ltd (“RED”) to acquire an interest in five recently granted exploration licences, with a total area of 4,661km2, in the highly prospective Kalahari Copper Belt

Pursuant to the Agreement, KML

– will acquire up to 25% of Kitlanya Ltd, RED’s wholly owned subsidiary that holds the RED Licences for an immediate cash investment of US$100,000

-has the option to acquire the remaining 75% of Kitlanya by way of an issue of KML shares at a value of US$700,000

The Agreement more than doubles KML’s exploration interests from 4,063km2 to 8,724km2


Serica Energy (SQZ.L) 132p £354.7m

Completion of  e acquisition of interests in the Bruce, Keith and Rhum fields and associated infrastructure in the UK North Sea from BP .

Significant increase in reserves and production post BKR and BK completion

Serica’s pro-forma net 2P Reserves increased over 20-fold to 63.7 mmboe

Net production from the assets acquired has averaged in excess of 23,000 boepd YTD of which over 85% is gas

Acquisitions expected to be immediately cash flow and value accretive

Combined initial consideration of US$22 million exceeded by Serica’s share of net post-tax cash flows from the BKR Assets and, subject to completion, the BK Assets between 1 Jan 2018 and Completion of approximately $50m

Future payments linked to the performance of the BKR Assets and BK Assets.


Redx Pharma (REDX.L) 7.85p £9.04m

The drug discovery and development company focused on cancer and fibrosis, announces that it presented pre-clinical data for its newly nominated development candidate RXC006 at the Advances in Fibrosis Drug Discovery Conference in Cambridge, USA on 29 November 2018. RXC006, a novel inhibitor of the porcupine enzyme, will be developed as an orally administered, first-in-class treatment for the orphan disease, idiopathic pulmonary fibrosis (IPF). IPF is a severe and life-threatening chronic lung condition with very poor prognosis and limited treatment options. The company expects to commence first-in-man studies with RXC006 during 2020.

The data showed  showed that RXC006 was highly effective at suppressing the Wnt pathway (porcupine sits on the Wnt pathway) and that RXC006 was able to suppress lung fibrosis, in vivo. Suppression of fibrosis has also been shown in animal models of both liver and kidney fibrosis.


Avanti Communications (AVN.L) 3.1p £62.74m

Trading update for the Quarter ended 30 Sept 2018.

Seven-year wholesale capacity agreement signed for $84m

$10m contract signed with Viasat for HYLAS 4 capacity

Master Distribution Agreement agreed with Comsat, gaining access to US Government

Revenue for the 3 months to 30 Sept 2018 was $10.8m

EBITDA loss of $10.6m

Successful arbitration proceedings against the Government of Indonesia and subsequent receipt of $20.1m

Period end cash balance was $13.3m

Period end backlog was $164.6m

Post period  $34.5m draw-down through extension to the existing Super-Senior Facility

“The current activity levels and pipeline gives us confidence that we will see strong growth in bandwidth revenues in the final quarter of 2018. Furthermore, the recently signed contracts underpin significant growth in core bandwidth revenue throughout 2019.”


Live Company Group(LVCG) 68p £44.95m

The Company’s wholly-owned touring subsidiary, Bricklive Touring Limited, entered into an agreement with AWC Asia, a company incorporated in South Korea, for the lease of the Group’s Mythical Beasts touring assets until Dec 2021. In consideration for the lease, AWC Asia will pay to BL Touring a Content and License Fee of $1.3m in cash, payable up front.

Mythical Beasts, which comprises a LEGO® model tour featuring over 50 models, has been created and built by Bright Bricks, the model building company recently acquired by the Company. The Mythical Beasts Asian tour, which will be staged and promoted by AWC Asia, will launch in South Korea at the end of Jan 2019.


Bioquell (BQE.L) 575p £93.88m

The boards of Ecolab and Bioquell announced that they have reached agreement on the terms of a recommended cash offer to be made by Ecolab Offeror for the entire issued and to be issued ordinary share capital of Bioquell .

The Offer values the entire issued and to be issued ordinary share capital of Bioquell at approximately £140.51m and represents:

a premium of approximately 40.48% to the Closing Price of 420p per Bioquell Share on 29 Nov 2018 (being the last Business Day before the commencement of the Offer Period);

The Bioquell Group is a provider of specialist hydrogen peroxide vapour bio-decontamination equipment, modular isolators and associated services for the life sciences and healthcare sectors.

In its latest full financial year to 31 Dec 2017, the Bioquell Group achieved total revenue of £29.2m (2016: £26.5m) and pbt of £3.3m


Non-standard Finance (NSF.L) 63.6p £198m

Trading update ahead of analyst presentation.

“The Group continues to make good progress with overall loan book growth, impairment levels and risk adjusted margin all in-line with our expectations and the Group remains confident about the full year outlook.”

Per the company website “NSF has secured the market leading network in unsecured branch-based lending, a top three position in home credit and the clear number two position in guarantor loans, the Group is well placed to achieve 20% annual loan book growth and a 20% return on assets in each of our three business divisions.”

FY Dec 18E Rev £164.7m and £12.3M PBT.

Fy18e PE C. 18X  and yield nearly 4% and <10x and >5.5% for FY19E respectively.


Pan African Resources (PAF.L) 8.37p £182.13m

The Group has finalised the exploration drilling programme on the Royal Sheba project and can now provide an updated MRE, signed off by an independent mining consultant.

Royal Sheba’s total Mineral Resources declared and independently signed off by SRK at 0.8Moz (8.97Mt at 2.62g/t);

A 6% increase in the near surface Mineral Resource from 0.35Moz (2.84Mt at 3.81g/t) to 0.37Moz (5.85Mt at 1.96g/t). The updated MRE is considered conservative, exhibiting a high level of confidence, and the Company believes there is further exploration upside;

The near surface Mineral Resource of 0.37Moz is conducive to open-pit mining;

The Definitive Feasibility Study (“DFS”) undertaken by DRA Global (Pty) Ltd (“DRA”) is progressing well and is expected to be completed in February 2019.


Forbes Ventures (NEX:FOR) 0.45p £2.1m

“The Directors of Forbes note the recent online speculation regarding Forbes and Me Group Holdings Limited, a company associated with Rob Cooper, CEO of Forbes.

As announced on 28 Sept 2018, Forbes is continuing to prepare for the delivery of its strategy and the Company expects to make further announcements in this regard shortly.

The Directors of Forbes will give due consideration to any synergistic investment opportunities that may arise in the future if they believe that such investments are in the best interests of the Company and its shareholders. Information about any such investments will be announced if and when appropriate.”

Forbes Ventures is an investment company with a focus on the finance and property sectors where innovative technology can be deployed to improve efficiency and achieve scalability.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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