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AIM Breakfasts

AIM BREAKFAST – 16 July 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 938

Total number of AIM Companies trading: 867*
* As at 13 July 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 87*

Total number of ISDX Growth Market Companies trading: 81*
* As at 13 July 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

NEX Exchange Growth Market

Veni Vidi Vici. Investment Vehicle to identify investment opportunities and acquisitions in companies in the Precious Metals and Base Metals sectors.  Raising £490k at 50p. Market cap £0.8m. Due 8 August.

AIM

CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A  which constitutes a RTO. Raising  £24m at 52p, combined market cap of £88.7m

Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July

Ovoca Gold (to be renamed Ovoca Bio PLC) – RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July

Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July.

Kropz PLC-Intention to float by the  emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa

Main Market (Standard)

Okyo Pharma—Formerly West African minerals. Delisted from AIM  earlier in year. Involved in the appraisal of opportunities in the life sciences and biotechnology sector. Moving from AIM to standard. Involved in two projects, one in ocular heath, and the other in non-opioid pain relief.

Danakali—potash company focused on the development of the Colluli Potash Project in Eritrea. Currently on ASX, Mkt cap c.£108m.

Breakfast Buffet

Integumen (SKIN.L) 0.71p £1.58m

Proposed £700k placing at 0.65p. Further to previous announcements Integumen has also conditionally agreed to acquire a strategic stake of 9.35% in Cellulac, a biochemistry company with potentially disruptive technologies for the production of biodegradable plastics and plant and biomass derived natural oils such as Omega 3. The deal also comprises a wide ranging Licence deal opening significant new markets for Integumen, and providing a significant opportunity to enhance its own product portfolio. Gerard Brandon and Camillus Glover, respectively, the current CEO and COO of Cellulac, will take over the roles of CEO and COO respectively, at the Company, providing the backbone of a commercial and consumer-focused management team. The fundraise includes participation by current and proposed directors of the Company. FY Dec 17 results out today showed ‘slower than anticipated’ revenues of £238,000 (2016: £52,000) and an EBITDA loss of £1.58m.

 

Sativa Investments (NEX:SATI) 4.25p £18.6m

IP sharing agreement with Canadian-based emerging global pharmaceutical company Veritas Pharma. in which the Company invested C$0.2m in May 2018. Sativa is  reviewing the potential for growing medicinal cannabis in the UK, and the IP sharing agreement includes Veritas Pharma, through its subsidiary company Cannevert Therapeutics, using its detailed research of cannabis strain lead selection to assist Sativa’s application to the UK Home Office Drugs Licensing and Compliance Unit for a medicinal cannabis growing licence. “A key part of Sativa’s strategy is to target overseas investments that can be leveraged to assist the Company commercially as it participates in the industry in the UK and wider Europe. In this case, Veritas’ scientific knowledge of seed selection will expedite a potential UK licence application to enable Sativa to grow cannabis strains for its own R&D purposes including use by recipients of grants awarded by the Sativa Foundation.”

 

SDL (SDL.L) 460p £382.6m

The international provider of services in language translation technology and content management, has agreed to acquire the business and assets of Donnelley Language Solutions on a cash-free, debt-free basis for a cash consideration of $77.5m (£60.1m) from Donnelley Financial Solutions Inc. (NYSE: DFIN) and its subsidiaries.

SDL proposes that the Acquisition will be funded through the drawdown on new debt facilities and a proposed placing of up to 8,234,400 new ordinary shares of 1p each in the capital of the Company, representing approximately 10% of the existing issued share capital of the Company, at a price of 440p per share to raise gross proceeds of up to £36.2m.

The Acquisition and the Placing taken together are expected to be earnings enhancing in the first full year of ownership, being the year ending 31 Dec 2019

 

DUKE Royalty (DUKE.L) 49.65p £48.4m

The provider of alternative capital solutions to a diversified range of profitable and long-standing businesses in Europe and abroad, announced a conditional placing and subscription to raise £44m, at 44p. The net proceeds will allow the Company to continue to finance its diversified pipeline of royalty financing opportunities.

Net proceeds to diversify portfolio of royalty investments and provide working capital

Four new potential royalty partners under signed letters of intent, with aggregate demand of £27.5m of capital

Additional proceeds to execute new identified opportunities and/or make follow on investments in existing royalty partners

Following full deployment of capital, Duke could have exposure to up to 9 Royalty Partners and 13 underlying diverse businesses

Increased dividend yield expected following deployment of capital over a period of less than 12 months

 

Finsbury Food Group (FIF.L) 112.8p 148.6£m

FYJun18 update from the UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and ‘out of home eating’ foodservice channels. Total Group sales revenues grew on a like for like basis to £290.2m, an increase of 2.4%. Due to the prior year benefitting from the full 12 months trading of the bakeries closed in the first half of the year, total Group revenue, including the closed businesses, declined 3.4% to £303.6m. The Group is confident of delivering profits in line with market expectations. The core UK Bakery division grew 2.8% on a like for like* basis, which is ahead of the wider market. The Overseas division, the Group’s 50% owned European business, declined by 0.7%.

In what has been a very challenging environment with unprecedented commodity and labour inflation, the Group has done well to recover those cost pressures through a combination of operational efficiency and price recovery and at the same time, accelerating the reshaping of its asset footprint to drive further efficiency.

Defenx (DFX.L) 12.5p £3.52m

The Company provides the following update with regards to its trading and financial position.

Further to the Company’s announcement of 6 April 2018, the conversion of new corporate opportunities into firm orders is taking even longer than previously anticipated.  As a result of this delay, the Company believes that it only has sufficient working capital to continue trading through to Sept 2018.

Accordingly, the Company is in advanced discussions with BV Tech S.p.A, the Company’s majority shareholder, to secure funding to assist the Company in meeting its working capital requirements. 

Further to the announcement of 29 June 2018, the Company continues to seek to finalise its audited annual report and accounts for the year ended 31 Dec 2017.”

 

IDE (IDE.L) 8.5p £17.06m

HYJun18 update from the  e mid-market network, cloud and IT Managed Services provider. Unaudited revenue for the six months to 30 June 2018 is expected to be approximately £29m (H1 2017: £30m), including £6m (H1 2017: £3m) in respect of 365 ITMS Limited which was acquired in April 2017. As reported previously, a large proportion of managed services revenue in 2017 arose from one-off projects, which has been lower in the current year.  As expected profitability to be impacted in 2018. Accordingly, Group management accounts for the six months to 30 June 2018 show an Adjusted EBITDA of c.£0.25m (H1 2017: Adjusted EBITDA of £2.4m).

Several expressions of interest have been received for certain business units of the Group but there can be no certainty these discussions will result in a transaction nor as to the terms of any such transaction.  For clarity, the negotiations do not include the consideration or solicitation of bids for the shares of the quoted Group.

 

CIP Merchant Capital (CIP.L) 88.5p £47.85m

“CIP Merchant Capital  announced its investment in Orthofix International NV, a global medical device corporation focused on musculoskeletal healing products and value-added services traded on the Nasdaq Global Select Market.  The Company has bought, in aggregate, 85,000 common stock in Orthofix for a total consideration of approximately $5m.

The investment constitutes the Company’s second investment following its investment in Coro Energy Plc announced on 22 Jan 2018.”

 

CentralNic (CNIC.L) 53.5p £51.6m

Proposed acquisition of KeyDrive S.A. for up to $55m and share Placing raising £24m at 52p.

The Acquisition constitutes a reverse takeover under the AIM Rules.

KeyDrive is a global technology business that operates in the domain name services industry. KeyDrive develops and operates software platforms used for selling subscription-based tools for businesses to operate online, including domain names, hosting, email, domain portfolio management and online advertising services. In the year to 31 Dec 2017, KeyDrive generated revenues of $58.26m and adjusted EBITDA of $5.87m.

The Enlarged Group will rank as the 11th largest domain name registrar globally by gTLD volume, and be among the top five registry service providers by number of registry clients

 

Plant Health Care (PHC.L) 17.13p £29.12m

Update from the provider of novel patent-protected biological products to global agriculture markets.

On track to achieve full year revenue expectations, which would represent 30% growth over 2017.

Successful launch of Harpin αβ in sugarcane in Brazil, supported by demonstration plot yield increase of 20% or more; the Board expects significant progress from this crop over the coming years.

Contract for a Harpin αβ product to be used on corn in the USA, leading to significant first sales in the second half of 2018.

The Company no longer expects to conclude a licence for rights to Innatus 3G in South American soybeans in 2018. 

The Company is working with multiple partners evaluating PREtec on more than 10 different crops in three regions around the world. 

The Company continues to have high confidence in the value of PREtec.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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