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AIM Breakfasts

AIM BREAKFAST – 13th December 2017

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 951

Total number of AIM Companies trading: 909*
* As at 11 December 2017

Dish of the Day:

Re-introduction of Range Resources (RRL) to AIM.  Now completed acquisition of Range Resources Drilling. Mkt Cap £17.4m.

Off the Menu:

No Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 86*

Total number of ISDX Growth Market Companies trading: 83*
* As at 11 December 2017

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

AIM

Fusion Antibodies— Sch1 from the Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer to raise £5.5m for the Company and £1.075m for selling shareholders at 82p with market cap of £18.1m. Due 18 Dec

Erris Resources PLC—a mineral exploration and development company currently focused on two geographic areas. Offer TBC, expected 21 December 2017

CIP Merchant Capital—Closed ended investment Company. Sector focus oil & gas, healthcare, pharma, and real estate. Offer TBA. Due 21 Dec

Panthera Resources— The Company was established to act as a holding company for Indo Gold Limited, an unlisted Australian registered company. The Company aims to explore and develop gold assets in India and West Africa. Offer TBC, expected 20 Dec

Sumo Group—one of the UK’s largest independent developers of AAA-rated video games providing both turnkey and co-development solutions, including initial concept and pre-production. Offer TBC. Due late Dec

Pelatro—provider of proprietary software solutions to enterprise-level customers for various aspects of precision marketing for use in B2C applications. Offer TBC, expected 19 December 2017

Fusion Antibodies—contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications.  Raising £5.5m at 82p plus £1.075mn vendor sale. £mkt cap £18.1m Due 18 Dec.

Sirius Petroleum—RTO. Becoming an operating company in the Ororo Field in Nigeria. Raising £7.2m/ Mkt Cap £35.6m.  Due 19 Dec.

Bushveld Minerals—RTO of Bushveld Vametco and therefore 78.8% of Strategic Minerals Corporation, the intermediate holding company that owns a 75 per cent. interest in the Vametco Vanadium Mine.

Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity.  Raising £1.6m. Mkt Cap £8.7m. Due 21 Dec.

Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £71m market cap. FYMar18E rev £241.5m and £7.19m PBT

Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native in-video advertising. 2016 rev £0.7m and £7.3m operating loss. Offer TBA. Expected 19 Dec.

OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.

Main Market Specialist Fund Segment

Sure Ventures –Raising  up to £50m at £1. Focus on FinTech, IoT and Augmented/Virtual Reality. Due 22 Dec.

Tufton Oceanic Assets  –  intends to invest in a diversified portfolio of secondhand commercial sea-going vessels . Aiming to raise over $100m. Due 20 Dec

Main Market Standard Listing

Shefa Yamin minerals company focused on the exploration for precious stones in Northern Israel. Net Proceeds will be used to advance the Company’s mining project. Due 18 Dec.

Main Market Premium Listing

GEMS Education—report by Reuters that the private schools group is seeking a $4.5bn to $5bn London float in 2018. FYAug17 rev $926.2m and adjusted EBITDA $261.6m.

Greensphere Capital –$500m raise.  Aims to provide Shareholders with an attractive yield from a portfolio of sustainable infrastructure assets diversified by geographies and sectors and to realise long-term growth  capital value.  Due 20 Dec

Vivo Energy—The Africa-focused company, which operates around 1,800 Shell forecourts across 16 countries  reported by City A.M. to be preparing for a London float next year

Aberdeen Standard European Logistics Income—Investment Trust targeting £250m raise. Investing in a high quality portfolio of European logistics assets. Due 15 Dec.

Aviva Investors Secure Income REIT  IPO PULLED – Targeting £200m raise. Will invest in a diversified portfolio of high quality, long-lease commercial real estate assets located within the UK and leased to predominantly investment grade tenants. Due 15 Dec.

 

Breakfast Buffet

Forbidden Update (FBT.L) 4.63p £8.35m

Shareholder Update on new priorities. Strategy to revolve around the Company’s core patented technology Blackbird™. To engage further with existing customers, new Proofs of Concept planned and most of sales and marketing team to be replaced.  “As a result of the significant management changes this year, and the longer infrastructure sale cycle, the financial results for the year ending 31 December 2017 will be below last year.

However, as noted above, in the past few months the Company has signed a number of exciting new PoCs in multiple regions and new sectors. This means that the Company now has the most PoCs it has ever had at any one time.” We could see no forecasts.

 

Vernalis (VER.L) 12.87p £67.78m

Vernalis  has entered into a drug discovery collaboration with Daiichi Sankyo Company, Limited utilizing Vernalis’ fragment and structure-based drug discovery platform against undisclosed oncology targets. The financial terms of this collaboration are not disclosed.

“We are delighted to be working with Daiichi Sankyo on this project. This is another excellent endorsement of our market leading fragment and structure-based drug discovery platform and we look forward to a successful collaboration with Daiichi Sankyo.”

 

Ortac Resources (OTC.L) 2.62p £6.14m

Ortac Resources Ltd is pleased to announce that in relation to the offer for the balance of the issued share capital of Casa Mining Ltd (“Casa”) (the “Offer”), it has increased its interest in Casa from approximately 45% to 84.7% since the Offer was announced on 10 November 2017.

If the Offer is accepted by all shareholders of Casa, then a total of approximately 100,000,000 new ordinary shares of no par value of the Company (“New Ordinary Shares”) will be issued to Casa shareholders pursuant to the Offer and acquisition of Casa.”

 

Mereo BioPharma (MPH.L) 327p £237.9m

Update on its clinical development pipeline in and a general corporate update. Reported positive top-line data from BCT-197 (acute exacerbations of chronic obstructive pulmonary disease) Phase 2 study, with primary endpoint met; Completed enrolment of BGS-649 (Hypogonadotropic Hypogonadism in obese men) Phase 2b study and on track to deliver top-line data in Q1 2018;   BPS-804 (osteogenesis imperfecta) granted EMA PRIME designation; AZD-9668 (alpha-1 antitrypsin deficiency) licensed from AstraZeneca, transition progressing according to plan and Phase 2 study expected to start in 2018. Cash and deposits £46.8m at 30 Nov.

 

Ubisense Group (UBI.L) 45.5p £33.25m

The specialist in “in enterprise location intelligence solutions, is today announcing a new contract in the space and satellites sector, the first deployment in this sector for its SmartSpace platform and associated products. The customer is one of the world’s leading manufacturers of commercial and military geosynchronous satellite platforms and space probes.

Ubisense’s software platform and location system will support the customer’s strategy to double production output. By integrating location technologies into a single operational view of real-time production, SmartSpace provides complete visibility of the manufacturing process, creating efficiencies across operations and enabling significant growth in production.” We could see no forecasts.

 

Prairie Mining (PDZ.L) 29.62p £49.62m

Notes market fundamentals continue to improve for Prairie’s two large-scale Tier One coking coal projects as the European Commission reaffirms coking coal as a “Critical Raw Material” for Europe. “The outlook for increased coking coal demand from Europe’s steel producers coupled with reducing European supply is creating a ‘perfect storm’ for Prairie to become the go-to supplier of the critical raw material. Europe’s steel producers which supply the vast automobile industry are now noting the potential increase in demand for steel due to the move towards vehicle electrification over the coming decades. We are well positioned to supply the required coking coal to produce the steel from the heart of Europe’s steel making industry.”

 

Block Energy (NEX:BLOK) SUSPENDED

The Company reaffirms it’s plan to dual-list on AIM and the NEX Exchange Growth Market. AIM admission and NEX Exchange Growth Market re-admission is expected in Q1 2018, and remains conditional on raising the pre-requisite funding requirements.

 CPR highlights significant reserves and gross contingent resources of 73          Million Barrels of Oil and 626 BCF of Gas on Georgian assets.

Includes gross 2P oil reserves of 1.6 MMbbl and an NPV10 of $26.9m for its Norio licence.

 

Bacanora Minerals (BCN.L) 95p £126.15m

“Bacanora Minerals Ltd., the London and Canadian listed lithium company, is pleased to announce that the results of the Feasibility Study (‘FS’) for the Sonora Lithium Project1 in Mexico (‘Sonora’ or ‘the Project’) confirm the positive economics and favourable operating costs of a 35,000 tonnes per annum (‘tpa’) battery grade Li2CO3 operation.  

 

The FS estimates a pretax project Net Present Value (‘NPV’) of US$1.253 billion at an 8% discount rate and an Internal Rate of Return (‘IRR’) of 26.1%, and Life of Mine (‘LOM’) operating costs of $3,910/t of lithium carbonate (‘Li2CO3’). “

 

Microsaic Systems (MSYS.L) 1.8p £3.26m

“The developer of chip-based mass spectrometry instruments, announces that it has signed a research agreement extending its collaboration with a long standing global partner in the scale up and manufacture of biopharmaceutical drugs. This amendment to the agreement has been entered into following the successful completion of a collaboration stage contracted in a previous amendment announced on 7 April 2017.” We could see no forecasts.

 

REACT Group (REAT.L) 0.35p £0.96m

Trading update.  The Board now expects that the pre-tax loss for the year ended 30 September 2017 will be around £0.475m (versus around £0.4m as previously expected). 

The reason for this changed expectation is primarily due to a non-cash adjustment relating to an amortisation of REACT’s client list made on acquisition of c£44k, and c£22k of costs relating to the now closed EPUK business.

Trading in the current financial year starting 1 October 2017 has made an encouraging start. Whilst (unaudited) management accounts for October show a smaller monthly loss, the November figures indicate break-even for the month.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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