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Small Cap Feast – 28 May 2020

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Breakfast Buffet

TMT Investments* $3.06 $89.3m (TMT.L)

Portfolio Update— portfolio company Bolt (formerly known as Taxify), a leading international ride-hailing and transportation company ( www.bolt.eu ), announced, on 26 May 2020, that it had successfully raised EUR100 million (US$110 million) in the form of a convertible note from Naya Capital Management. The convertible note features a conversion cap of EUR1.7 billion (c.US$1.87 billion), which TMT notes is significantly higher than Bolt’s equity valuation following completion of its last funding round in June 2019. TMT also notes that the conversion cap does not imply a new firm equity valuation level and hence TMT has not adjusted the fair value of TMT’s interest in Bolt.

TMT’s five core holdings (Bolt, Backblaze, Depositphotos, Pipedrive and Scentbird) have performed well during the COVID-19 pandemic to date.  These are well-established, more mature businesses, with globally diversified revenues, strong cash reserves and tens of thousands of customers, and account for approximately 75% of the Company’s NAV.   A number of companies in our portfolio have experienced very strong growth as a result of significant increases in home working and larger numbers of citizens staying at home globally, and have attracted investment at higher conversion caps via convertible notes in recent weeks.  At the same time, a small number of companies that are more exposed to physical interaction, are naturally experiencing some challenges and are adapting their business models as a result.

 

Synairgen 47.5p £71m (SNG.L)

Recruitment of 100 hospitalised patients in its clinical trial of SNG001 (inhaled formulation of interferon-beta-1a) in COVID-19 patients has now been completed. Richard Marsden, CEO of Synairgen, commented: “We are pleased to have now completed recruitment in this important study, with initial trial data expected in July 2020. A successful outcome from this trial could be a critical step towards strengthening the fight against the COVID-19 pandemic.”

 

Columbus Energy 1.95p £17.9m (CERP.L)

Submission to the Ministry of Energy and Energy Industries (Trinidad & Tobago) a drilling application for the Saffron 2 well in the South West Peninsula.

Summary

  • Saffron 2 to be drilled as a twin to Saffron 1, from the same drill pad
  • Saffron 2 to target the Lower Cruse intervals encountered in drilling Saffron 1, with a targeted Total Depth of 4557 feet
  • The key objective of Saffron 2 is an extended production test and subsequent conversion to a production well aimed to produce the circa 40° API oil encountered in Saffron 1
  • Drilling Application consistent with commercial arrangement for a full carry of Saffron 2, as announced 27 April 2020
  • Approval of the Drilling Application by the Ministry would allow drilling in Q3 2020

 

Oncimmune Holdings 103.5p £65.7m (ONC.L)

Oncimmune has signed a further contract with Roche to profile autoantibodies in patient samples collected during cancer immunotherapy trials.

Following closely on the completion of a successful foothill project with Roche, which was undertaken over the last two months, this new contract provides Oncimmune with the opportunity to further contribute to the understanding of individual patient responses to immunotherapy through immune profiling.

 

Sopheon 763p £76.4m (SPE.L)

New Sopheon Release Integrating Microsoft Teams .Work-from-home has accentuated need for information transparency, connected decision making and ad hoc collaboration. The international provider of software, expertise, and best practices for Enterprise Innovation Performance, today releases Accolade® version 13.1 and Accolade Connect for Microsoft® 365 turning simple meetings into true workstream collaboration events and advancing context-aware communication.

Innovation and product development are highly cross-functional and collaboration-intensive activities. Now, for the first time, innovation teams in any industry can capitalize on their investment in Microsoft 365 (online and desktop) and Microsoft Teams in particular, to collaborate on Accolade-managed initiatives ranging from digital transformation to new product development and operational excellence.

 

E-therapeutics 22.75p £73.4m (ETX.L)

ETX today announces its expansion into RNA interference (RNAi) as a therapeutic modality to pursue drug discovery outcomes and the creation of a Scientific Advisory Board headed by Dr Paul Burke. 

e-therapeutics has a unique computational approach to drug discovery.  Its Network-driven Drug Discovery (NDD) platform leverages its machine learning-enhanced database of over 15 million small molecule compounds to perform functional in silico phenotypic screens. In addition, its Genome-Associated Interactions Network (GAINs) proprietary platform enables the Company to distil actionable outcomes from complex genomic datasets.  GAINs outputs are well suited to genetic medicine approaches as therapeutic interventions.  As such, RNAi is an area that the Company plans to explore to harness computational drug discovery outcomes, both internally and in partnership with collaborators.

 

Blue Star Capital 0.11p £3.84m (BLU.L)

Update regarding its investee company SatoshiPay.

On 28 May 2020, the Stellar Development Foundation (“SDF”) announced that it had made a strategic investment of $550,000 by way of convertible loan notes. This investment marks the third investment made by SDF through its Enterprise Fund and will support SatoshiPay to continue to develop its B2B solution for commercial, cross-border payments and its digital wallets. SatoshiPay was one of the first businesses to use Stellar commercially and has, to date, processed €650,000 in payments from over 200,000 accounts. SatoshiPay’s open-source wallet for the Stellar network, Solar, has been downloaded more than 25,000 times in 40 countries. The funds will be used to primarily help develop and market the SatoshiPay B2B solution. The company is currently testing this product and expects to have a product in closed alpha testing within 8 weeks.

 

Thor Mining*0.325p £3.5m (THR.L)

Trading in the shares of the Company have been halted on the Australian Securities Exchange  effective from Thursday 28 May 2020   in accordance with ASX Listing Rule 17.1, pending an announcement related to the entering into an exclusivity arrangement in respect of a potential acquisition by the Company and an associated fundraising.

The ASX trading halt will remain in place until the earlier of the commencement of trading on Wednesday 3 June 2020 or the release of an announcement by the Company.

Trading in the Company’s ordinary shares will continue on AIM during this period.

 

Attis Oil & Gas 0.016p £0.6m (AOGL.L)

Memorandum of Understanding (MOU) with a North American focussed oil and gas company (in relation to the potential acquisition of that company  has been terminated, due to a number of factors, not least the impact of the Global Coronavirus pandemic on oil prices, and the current economic conditions . Trading on AIM has recommenced. Placing of £500k at  at 0.0115 pence plus a £100k broker option.  Holders of £370,543.14 (principal plus accrued interest) of a Bridge Loan have elected to convert  at 0.0075 pence per share

 

Salt Lake Potash 29.25p £102.5m (SO4.L)

Results of chemical analysis on a bulk sample from its Kainite harvest ponds at the Lake Way Project, showing above the modelled average Potassium grades.

HIGHLIGHTS

A bulk sample of Harvest Salt from the Stage 1 Kainite Ponds was collected in March to confirm plant feed grades and produce mass samples of premium quality SOP for end user customers.

Chemical analysis of these Harvest Salts has indicated potassium salts kainite and schoenite (as modelled) are present with a potassium concentration of 7.5%, above the modelled assumed plant feed of 6.8%. Sulphate concentration of 20.9% also matched expectations.

Results for other compounds, namely Sodium and Magnesium align with the anticipated plant feed grade.

The bulk sample confirms the Lake Way operation is precipitating plant feed Harvest Salts suitable for conversion to premium quality SOP in the designed flowsheet. This will be further confirmed via process testwork at Saskatchewan Research Council (SRC) in Saskatoon, Canada.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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