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AIM Breakfasts

AIM BREAKFAST – 19 October 2018

Set Menu AIM:

Total number of AIM Companies (Incl Susp): 926

Total number of AIM Companies trading: 859*
* As at 11 October 2018

Dish of the Day:

Smithson Investment Trust (Main Mkt Spec Funds) SSON.L—New Fund from Fundsmith LLP  established by Terry Smith. Focused on a global basis on small and medium sized companies between £500m and £15bn in market cap .  Raised £822.5m at £10

Summerway Capital (AIM:SWC) investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer raising £6.08m at 100p, market cap £6.13m

Off the Menu:

No Leavers Today

Set Menu ISDX Growth:

Total number of ISDX Growth Market Companies (Incl Susp): 89*

Total number of ISDX Growth Market Companies trading: 86*
* As at 11 October 2018

Dish of the Day:

No Joiners Today

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Main Market (Premium)

Nova Ljuublianska banka—financial and banking institution based in Slovenia with a network of 349 branches,  dual listing process in Ljubliana with GDRs in London. For HYJun18 and for FY17 the Group recorded a net profit equal to EUR 104.8 million and EUR 225.1 million, respectively. 50% plus sell down.  Prospectus due for release 26 Oct.

Merian Chrysalis  Investment Co –Seeking a £200m raise.  Due 6 Nov. Objective is to generate long-term capital growth through investing in a portfolio consisting primarily of equity or equity related investments in unquoted companies .

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 early Nov

Main Market (Standard)

ECI Telecom— provider of comprehensive networking and data transport products and solutions. Raising c.$230m and potential sell down. Due late Oct

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.

Gresham House Energy Storage Fund  – will invest in utility-scale  Energy Storage Systems in the UK. Raising up to £200m. Due 5 Nov.

CEIBA Investments. the largest foreign investor solely dedicated to investing in Cuba, with existing total assets in excess of £160 million.  Raising up to £100m.  Due 22 Oct

Blue Ocean Maritime Income  – aims to generate long-term, sustainable shareholder returns, predominantly in the form of income distributions, from direct lending and similar financing opportunities to vessel owners and operators, and other maritime businesses.  Raising up to $250m. Due 23 Oct.

AIM

Kropz PLC—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. Looking to join AIM, offer TBC, market cap TBC. Due Late October.

Azalea Energy—oil and gas production and development company based in Louisiana, United States.  Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct

Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct

Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

NEX Exchange

Auxico Resources—Proposed dual listing of  the Canadian listed precious and base metals  company engaged in the acquisition, exploration and development of mineral properties in Colombia and Mexico.  Due 26 Oct. Mkt cap C$7.8m

Breakfast Buffet

Faroe Petroleum (FPM.L) 152p £567m

Commencement of the Faroe-operated Rungne exploration well 30/6-30 in the Norwegian North Sea (Faroe 40% working interest).

The Rungne prospect is located in the Norwegian Sea, c. 30 kilometres north west of the Company’s Brasse field and immediately north of the producing Oseberg oil field. The well will target the Middle Jurassic Oseberg Formation, with secondary targets in the Etive and Ness formations.

The total expected vertical depth of the well is approximately 3,490 metres, in water depth of 119 metres. Drilling operations will be undertaken using the semi-submersible Transocean Arctic rig.”

We have six exploration wells and one appraisal well committed to drill over the coming 12 months, and many more wells lining up for drilling thereafter.” These exploration wells are targeting a significant unrisked resource potential net to Faroe of 80-150 mmboe. In addition, the appraisal well on the large Iris-Hades discovery, scheduled for H1 2019, has the potential to prove up very significant resources for the Company.”  PE c.12x.

CyanConnode (CYAN.L) 12.25p £15.75m

Proposed £5.6m fundraising from the specialist in  narrowband radio frequency (RF) mesh networks  at 10p. £1m Board and senior management participation in the Fundraising.

The Issue Price represents a discount of 18.4% to the closing price on 18 Oct 2018, being the last trading date prior to announcement of the proposed Fundraising;

The net proceeds of the Fundraising will be used to fund future growth to include investment in research and development and working capital to execute on the Company’s order book, pipeline and growth plan.

FYDec18E rev £8m, pre-tax loss £4.5m.

Kibo Energy (KIBO.L) 2.9p £18.4m

“The multi-asset, Africa focused energy company, is pleased to announce that it has submitted its formal tender qualification document (‘TQD’) to the Tanzania Electricity Supply Company (‘TANESCO’) with regards to the  Mbeya coal to Power Project (“MCPP”). This is in line with the Tanzanian Government’s new initiative regarding the development of independent power projects.”

“Our visionary development approach has allowed us to develop and forge critical strategic partnerships very early on in the process and having done all the definitive feasibility studies, financial modelling, technical development work and environmental and social impact assessment certification well in advance, we have been able to submit a TQD of exceptionally high standard and substance in a very short space of time, submitting our TQD 24 hours ahead of the submission deadline; we believe that this will stand us in good stead.  We are now waiting for a definitive date for completion of Phase 1 from TANESCO but expect this to be completed before end of 2018.”

Safestyle (SFE.L) 50.2p £41.6m

“The Board of Safestyle UK plc has become aware of certain rumours in the market and confirms that it is not in discussions to acquire NIAMAC Developments Ltd (trading as SafeGlaze UK) (“NIAMAC”) nor to acquire its business or assets.  The Board of Safestyle is however considering certain other arrangements with key stakeholders in NIAMAC that could benefit Safestyle’s business and accelerate its recovery.  

There can be no certainty that any formal arrangement will be entered into. A further announcement will be made in due course, as appropriate.”

FYDec18E rev £118.36m, pre-tax loss £6.36m.

 

Creo Medical Group (CREO.L) 209p £250.6m

“The medical device company focused on the emerging field of surgical endoscopy, announced that the Queen Elizabeth and the Queen Mother Hospital in Margate (“QEQM Hospital”), part of the East Kent University Hospitals Foundation Trust (“East Kent Trust”), today enters into the second day of a two-day endoscopy training course for over 40 UK clinicians, which will include live demonstrations and training on Creo’s Speedboat device and CROMA advanced energy platform.”

“Our strategy has always been focused on ensuring that key clinicians are educated in the use of Speedboat and the CROMA platform to safeguard quality control and best patient outcomes. This training course at the QEQM hospital, and our wider Clinical Education Programme, aims to ensure that the first adopters of our technology, having been carefully mentored by our own doctors and endoscopy nurses, can deliver consistently high standards in this emerging field of surgical endoscopy.”

 

Zegona Communications (ZEG.L) 111.5p £140.7m

Zegona intends to make a partial tender offer in cash to acquire up to 14.9% of the outstanding shares of Euskaltel at a price of 7.75 per share. The offer price represents a premium of 18% over the closing price on 18 Oct 2018.  Zegona currently owns 15% of Euskaltel. This would increase ownership to 29.9%

The Tender Offer will be funded through a non pre-emptive institutional placing, which has been fully underwritten by Barclays Bank PLC, to raise up to £225m.

As Zegona has previously stated, Euskaltel is a strategically attractive business with a strong competitive position in its home markets and a range of opportunities to deliver profitable growth.  Zegona believes there is potential to create significant additional value by driving efficiency improvements, increasing revenue growth in existing regions and accelerating expansion outside the current footprint.

 

Destiny Pharma (DEST.L) 79p £34.4m

The clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), notes the launch of a series of videos and explainer documents from the UK BioIndustry Association (BIA) celebrating UK bioscience and revealing the cutting-edge R&D taking place in biotech companies around the UK.

Destiny Pharma has been chosen, alongside selected other UK biotech companies, to exemplify the UK’s leading status in key areas of biotechnology including antimicrobial resistance, genomics, cell and gene therapy and engineering biology. These videos and explainers cover strategic technologies being developed to offer potentially life-changing solutions to individuals and societies across the globe.

Frontier IP Group (FIPP.L) 64.5p £24.7m

The specialist in commercialising university intellectual property, today announces that portfolio company Molendotech Ltd has entered into a collaboration agreement to develop water tests for G’s Group, one of Europe’s leading fresh produce companies.

Molendotech, a University of Plymouth spin out, will work with G’s to create tests to detect the levels of different bacteria in produce, irrigation, washing water and food contact areas. Work is expected to start immediately.

Molendotech was incorporated last year to develop and commercialise the work of Professor Simon Jackson, at the University of Plymouth faculty of Medicine and Dentistry. The Company is already working with Palintest, a subsidiary of FTSE 100 group Halma, which is launching kits based on Molendotech’s IP to test for faecal matter in bathing water. Frontier IP owns 14.1% of the Company.

PCI-PAL (PCIP.L) 24.5p £10.4m

“The customer engagement specialist that secures and protects payment card data for companies handling payments by phone, is pleased to announce a contract win for a minimum five-year period for a new Canadian client through a major reseller in the region worth an initial CAD $280,000. 

The contract, with a major domestic consumer business, is the first through PCI Pal’s partnership relationship with one of the largest telecommunications companies in Canada.  It utilises PCI Pal’s global AWS platform, ensuring that data sovereignty is maintained in Canada.”

FYJun19E rev £4.5m and £3.6m pre-tax loss.

Record (REC.L) 34.8p £69.3m

Q2  Sep 18 trading update from  the specialist currency manager. Assets under management equivalents (AUME) as at 30th Sept 2018 totalled $61.8bn (30th June 2018: $61.9bn. AUME expressed in sterling as at 30th Sept 2018 totalled £47.4bn (30th June 2018: £46.9b).

During the quarter to 30th Sept 2018, fee rates for most products remained broadly unchanged from the previous quarter, taking into account the mix of management fee-only and management plus performance fee mandates. No performance fees were earned in the quarter.

“We are seeing an encouraging range of new business opportunities across products and geographies, although this has to be balanced against continued competition and fee pressure in passive hedging in particular.  With our diversified product suite and our ability to offer tailored solutions to clients and potential clients, we aim to make further progress in the second half of the financial year.”  Pe c.13x.

Head Chef:

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

*A corporate client of Hybridan LLP

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