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Small Cap Feast – 13 December 2019

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What’s Cooking in the IPO Kitchen?

NEX Exchange

 SulNOx Group  – The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.

 

Breakfast Buffet

Horizon Discovery (HZD.L) 158.2p £238m

The specialist in the application of gene editing and gene modulation technologies, announces a strategic collaboration with Mammoth Biosciences, that will see the two companies develop new CRISPR tools to provide the next generation of engineered cell lines for the biopharmaceutical industry.

Under the terms of the agreement, Horizon and Mammoth will collaborate to identify and optimise the Company’s novel proteins for use under license by Horizon.  This will then be deployed for the development of the Group’s next generation of engineered cell lines.

Horizon will have exclusive rights to utilise this novel approach to bioproduction and will also be able to sublicense it to partners intent on modifying their own proprietary cell lines.

Horizon will pay an undisclosed consideration and issue warrants to Mammoth for the exclusive rights being licensed. The warrants will be issued within 30 days and will give Mammoth the right to subscribe for a number of ordinary shares in Horizon equivalent to 0.5% of the issued share capital of Horizon at the market price on the date of grant.

 

Savannah Petroleum (SAVP.L) 22.1p £220m

“Savannah Petroleum PLC (“Savannah”) is pleased to announce the renewal of its 11.4 million unsecured revolving loan facility (“the Facility”) with Oragroup SA, the West and Central Africa focused banking group. The Facility was originally signed in December 2016 and was designed for working capital and general corporate purposes.

The Facility has been renewed for a further three years and will continue to be used for the same purposes as in the original agreement. The terms of the Facility are unchanged with an interest rate of 7.5% payable on a semi-annual basis on amounts borrowed under the Facility.”

 

M P Evans Group (MPE.L) 685p £373m

“The board of directors of MP Evans is pleased to announce that it intends to commence a new share buyback programme of £1 million on 1 January 2020 to replace its current share buyback programme once this expires on 31 December 2019.   All shares acquired under the New Programme will be cancelled.

The Board believes that the current share price substantially undervalues the Group’s assets, the performance of the business to date and its future prospects. The Group’s robust balance sheet provides the opportunity to take advantage of prevailing market conditions to repurchase shares at advantageous levels that will be earnings enhancing.”

 

GAN PLC (GAN.L) 142p £120m

 The award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today updated the market following the publication on December 12, 2019, by New Jersey’s Division of Gaming Enforcement (“DGE”) of Internet gaming and Internet sports betting financial information for the calendar month of November 2019 in New Jersey.  

Highlights from the DGE include:

  • Internet Gaming Win was $49.1 million in November compared to $26.9 million in the prior year period, reflecting a year-over-year increase of 82.4%.
  • Total Internet Sports Wagering Handle(1) was approximately $486.8 million for the month of November, compared to:

–    $417.0 million for the month of October 2019;

–    $374.2 million for the month of September 2019; and –    $249.2 million for the month of August 2019.

  • Internet Sports Wagering Gross Revenues(2) (after payouts) for the month of November were $27.8 million, compared to $14.4 million in November 2018, reflecting a year-over-year increase of 92.4%

 

Helios Underwriting (HUW.L) 132p £23.8m

 In line with its strategy of increasing underwriting capacity through acquisition, Helios has acquired Lloyd’s Member Catbang 926 Limited, a limited liability member of Lloyd’s of London.  The consideration payable for Catbang is £5.6 million in cash of which £2m will be paid on completion and the balance paid within 60 days of completion.

Information in respect of Catbang

The 2019 underwriting capacity of Catbang is £4.1m. Catbang participates in a spread of Lloyd’s syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd’s.

The consideration represents a discount of approximately 16% to the independent valuation of £6.7m placed on Catbang by Humphrey’s and is approximately £0.6m below the fair value of assets being acquired.

 

Hurricane Energy (HUR.L) 32p £637m

Trading and operational update, and reports an update in relation to its P1368 licence.

 Highlights

  • Strong performance of Lancaster Early Production System wells – during recent individual well flow tests, good natural flow rates were achieved with minimal bottom hole pressure decline
  • P1368 licence extension

o  Lancaster and Lincoln subareas of P1368 extended for five years

o  Whirlwind and Strathmore sub-areas to be relinquished

    FY2019 guidance

o  Total production of 3.1 million barrels of oil, representing an average rate of 13,300 barrels of oil per day

    FY2020 guidance

o  Lancaster EPS average production rate guidance maintained: 20,000 barrels of oil per day (before operational downtime), to be reviewed as part of the current testing programme

 

Gateley (GTLY.L) 175p £197m

Acquisition of T-three Group  for a consideration of £3.4m.  T-three complements Kiddy & Partners, which Gateley acquired in July 2018, and together these businesses create one of the largest specialist Human Capital consultancy businesses in the UK.

T-three offers services and products to businesses that enable them to develop their senior people and effect cultural change within the business itself. Its client base includes multinational companies, large public sector organisations and SMEs across the UK and worldwide. T-three is based in Cambourne, Cambridge and employs 35 staff.

T-three is an established, profitable and cash generative business and it will continue to trade under its existing name from its offices in Cambourne. In the year ended 30 September 2019, T-three generated pro-forma revenues from continuing operations of £4.2m and EBITDA of £0.7m. The Board expects the acquisition to be immediately earnings enhancing.

 

Amiad Water Systems (AFS.L) 220p £49.9m

The  global producer of water treatment and filtration solutions, provides the following update on trading for the year ending 31 December 2019.

As noted in the Company’s interim results announcement on 11 September 2019, Amiad entered the second half of 2019 with a higher order book and larger sales pipeline than at the same point of the previous year. During the second half of the year, the Company was successful in converting this pipeline into sales and expects to achieve revenue growth for full year 2019 over 2018. However, owing to a number of global macroeconomic factors, in particular those impacting the Americas, certain projects did not proceed due to a lack of capital investment. As a result, the Company expects its revenue for full year 2019 to be slightly below market expectations. Looking ahead, the Company expects to enter 2020 with a higher backlog than at the same point in the prior year and is experiencing encouraging sales activity.

 

ImmuPharma (IMM.L) 17.84p £29.9m

 The “specialist drug discovery and development company is pleased to announce that its shares will be admitted to trading on Euronext Growth Brussels (“Euronext”) under ticker ‘ALIMM’ following the approval by Euronext of its request for listing. Admission is expected to take effect from 19 December 2019. “

 

Codemasters (CDM.L) 255p £385.8m

 Further to Codemasters’ announcement on 28 November 2019 of its acquisition of Slightly Mad Studios, the Company is pleased to announce that the game featuring licensed IP relating to a Hollywood blockbuster movie franchise will be Fast & Furious Crossroads.

 

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Derren Nathan
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derren.nathan@hybridan.com

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