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Small Cap Feast – 07 April 2020

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What’s Cooking in the IPO Kitchen?

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Haydale Graphene 1.45p £4.9m (HAYD.L)

Haydale has signed an exclusive distributor agreement  between Haydale and Dalian Yibang Technology Co., Ltd. The Agreement is for an initial period of 4 years and allows DLYB exclusive distributor rights to market Haydale’s electrically conductive graphene-enhanced masterbatch in the Chinese and Taiwanese markets.

The Agreement sees DLYB pay Haydale an initial licence fee and thereafter, the parties will work towards completion of field testing, securing the requisite licences and final certifications from the relevant authorities. Haydale will supply masterbatch and associated consultancy services at an additional cost during the pre-commercialisation phase of the Agreement. Haydale expects the contract to move from the R&D to the commercial phase in 2021 and the parties have agreed minimum annual revenue thresholds which commence at US$300,000 for the calendar year 2021 and increase annually thereafter. In order to ensure the highest standards of quality assurance, the parties have agreed that all masterbatch will be supplied by Haydale from its facilities.

 

Audioboom Group 177.5p £24.9m (BOOM.L)

Q1 trading update from the global podcast Company.

  • Q1 2020 revenue of c.US$6.4m, up 40% on Q1 2019 (US$4.6m)
  • Brand advertiser count of 271 as at 31 March 2020, up 52% on 31 March 2019 (178)
  • Global revenue per 1,000 downloads (eCPM) for March 2020 increased to US$38.40, up 81% on the same period last year (March 2019: US$21.24)
  • Q1 2020 available premium advertising impressions were 442m, up 45% from the same period last year (Q1 2019: 305m)
  •   Cash position as at 31 March 2020 was US$0.8m (31 December 2019: US$2.0m; 31 March 2019: US$1.7m)
  •   In February 2020, Audioboom entered into a two-year US$4m secured loan facility arrangement

 

Intercede Group 48.5p £24.5m (IGP.L)

Trading update. Subject to the completion of the year end audit, revenues for the year ended 31 March 2020 are expected to be in the region of £10.4m which is approximately 3% higher than the previous financial year. Whilst the level of growth is lower than market expectations, good progress has been made during the last year with all aspects of the business. The increased revenue primarily reflects the impact of follow on orders from existing customers and partners in the US, EMEA and SE Asia. The establishment and further development of partner relationships is critical for the Group’s future growth prospects.

The combined effect of increased revenues and ongoing cost control is expected to result in increased profits that are substantially higher than market expectations and the previous financial year.

As at 31 March 2020, gross cash balances totalled £4.8m (2019: £3.2m).

It is too early to fully assess the impact of COVID-19 on Intercede’s FY21 outlook. The Company has implemented its Business Continuity Plan and, with everyone now working from home, it is business as usual. A few delays were experienced with the receipt of orders and project upgrades that had been scheduled to take place in the last week of March, but they are all currently expected to proceed in the coming weeks.

 

Falcon Oil & Gas 6.55p £64.3m (FOG.L)

Falcon Oil & Gas Australia Limited, has executed an agreement which includes a restated Farm-Out Agreement and Joint Operating Agreement  with Origin Energy B2 Pty Ltd., a subsidiary of Origin Energy Limited to  farm down 7.5% of Falcon Australia’s 30% participating interest in the Exploration Permits in the Beetaloo Sub-basin, Northern Territory, Australia. Falcon and Origin are obligated to seek the Northern Territory government and TSXV stock exchange approvals, in respect of the Agreements.

The PI of the respective JV partners will be:

Falcon Australia 22.5%

Origin 77.5%

In consideration of Falcon Australia transferring 7.5% of its PI, Origin will increase the gross cost cap of the work program by A$150.5m.

The previous farm-in arrangement included a Stage 2 gross cost cap of A$65.3m and a Stage 3 gross cost cap of A$48m, or A$113.3m in total. Under the Agreements, the Stage 2 and Stage 3 gross cost caps will be combined and increased by A$150.5m to A$263.8m.

“This farm down together with Falcon’s unaudited cash reserves of US$11.5m at 31 March 2020 leaves us well positioned to participate in the future upside potential of the Beetaloo. We look forward to updating the market as soon as operations recommence in the Beetaloo.”

 

Impax Asset Management 315p £425m (IPX.L)

Q2 AUM update. On 31 March 2020, the Company’s AUM totalled £14.4 billion.

Ian Simm, Chief Executive, commented:

” During this very unusual time we are focused on protecting the health and safety of our staff while continuing to provide a full service to clients.

Despite the recent sharp fall in markets, Impax’s performance in the second quarter of our financial year has been robust.  Over the three months to 31 March 2020 net inflows were £1.1 billion, a number that includes positive net inflows of £6.0 million during the month of March.  

The companies that we invest in are generally well established with experienced management teams, diversified business models and strong balance sheets. Consequently, over recent months we have had almost no financial exposure to distressed companies.”

 

Global Petroleum 1.25p £2.5m (GBP.L)

Global  has come to an agreement to licence pre-existing 3D seismic data in its offshore Namibia Block, 2011A (PEL0094). This key data, acquired by previous licensees in 2010, covers the Company’s Welwitschia Deep prospect and Marula lead, and will enable precise mapping of these features. Once complete, Global will update Prospective Resources and chances of success for Welwitschia Deep and Marula.

In consideration for the right to licence this data Global has agreed to transfer to National Petroleum Corporation of Namibia  a 7% participating interest in PEL0094.  NAMCOR holds an existing 10% carried interest as required by the Namibian Government, and its total interest in PEL0094 will therefore be 17%, carried to first production. Aloe Investments, a private Namibian company holds a 5 percent interest, carried through exploration. Global will therefore hold a working interest of 78%.

 

Regency Mines 0.95p £0.9m (RGM.L)

Resolution of the ongoing partner dispute and the execution of an amendment to its development agreement regarding the Company’s Mambare nickel-cobalt asset in Papua New Guinea. 

o  Mambare Joint Venture  partners agree to an amended joint venture agreement to govern and drive forward future activities with operations based in Australia

o  Regency agrees to a revised 41% interest in the joint venture with further reduction occurring if a mining lease award over the Mambare project is recommended by the relevant PNG government agency in the next 19 months

o  Battery Metals Pty Ltd , the Company’s JV partner, to receive from Regency US$50,000 in cash, 4,909,610 new ordinary shares in RGM and 4,909,610 warrants (issued and exercisable at £0.01245)

 

Bidstack 9.25p £22.7m (BIDS.L)

As announced by the UK Government’s Department for Digital, Culture, Media and Sport  on 6 April 2020, Bidstack is providing its proprietary technology to insert the message “Stay Home Save Lives” in Codemasters’ Dirt Rally 2.0. video game.

This campaign has been widely noted across various media outlets including BBC News, ITV News, Radio 4, LBC, Virgin Radio, PC Gamer, Forbes, Engadget, The Daily Mail, CityAM, The Daily Telegraph, The Sun and The Hollywood Reporter.

Because Bidstack’s technology is capable of geo-targeting gamers, the DCMS message is currently being sent only to UK gamers. However, the Company is working with Codemasters to extend the initiative to other European and American players with localised public safety information.

 

Scholium 28p £3.8m (SCHO.L)

Trading Update.  Whilst the Shapero Rare Books’ retail premises is not open to visitors, it is, in common with Scholium Trading and Mayfair Philatelics, maintaining a reduced level of trading over the internet and by telephone. As a result, and taking into account various cost savings that have been achieved by the Board, including the furloughing of several members of staff, the Group as a whole is currently trading at a small monthly loss. Stock is currently in excess of £8.0m and cash at the end of March was in excess of £270k.

 

Gamma Comms 1137p £1.1bn (GAMA.L)

The  technology-based provider of communications services to the business markets in the UK and the Netherlands,  announced that its wholly-owned subsidiary, Gamma Communications Europe B.V., has received valid acceptances in respect of 4,355,461 shares in VOZTELECOM OIGAA360, S.A, representing 94.9% of the existing issued share capital of VozTelecom.

Accordingly, the Group now owns 94.9% of VozTelecom’s share capital and the offer is unconditional in all respects.

 

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Derren Nathan
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derren.nathan@hybridan.com

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