Small Cap Feast

Small Cap Feast – 01 October 2020

Dish of the Day:

Sativa Wellness Group (AQSE: SWEL)  —(Canadian Securities Exchange: STIL) renamed from Stillcanna Inc following the conditional acquisition of  Sativa Group (AQSE:SATI) has listed  on AQUIS A fully integrated European seed to consumer CBD group with the pricing, products, and stability to meet the CBD market demand in the medium term. With world-class extraction and formulation experts, an agricultural team that has over 20 years’ experience farming hemp, along with laboratory testing capabilities, the group has established itself globally as a trusted source of high-grade, premium wholesale CBD brands and products.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

AIM Schedule One from Fonix, a mobile payments and messaging company, enabling businesses to charge users’ mobile bills and send users SMSs via their Carrier.  Due October. Offer TBC

China Yangtze Power Co, intended  secondary GDR offer on the LSE (standard listing) from the largest hydropower company in the world. Due on or around 30 September

Kaspi.kz, which operates the Kaspi.kz Super App, Kazakhstan’s most popular mobile app and the gateway to its market leading Payments, Marketplace and Fintech platforms  intends to conduct a secondary GDR offer on the LSE.

Trupatti Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing).

Buffetology Smaller Companies Investment Trust— Buffettology is seeking to raise a minimum of £100m via an initial placing, an offer for subscription and an intermediaries offer on the Main Market. will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4 billion across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund.

Wheaton precious Metals (TSE:WPM) – Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q 2020

AB Ignitis grupe—leading utility and renewable energy company in the Baltic region. Admission of its Shares to the Main Trading List of Nasdaq Vilnius and admission of its GDRs to the Official List of the FCA. Offer Price Range corresponds to a market capitalisation of approximately EUR1,691.7 – EUR2,105.2m. Due 7 Oct.

Calnex,  an established provider of test and measurement solutions for the global telecommunications sector, will raise a total of £22.5m (before expenses), comprising £6.0m for the Company and £16.5m for existing shareholders .  Due 5 October 2020, under the ticker CLX. Based on the Placing Price, the market capitalisation of the Company will be £42.0m on Admission.

Mode Global Holdings to join LSE (standard).  Mode is a UK-based Fintech Group, building a modern financial services business to support an increasingly digitised economy and financial system, combining the best of banking, payments, investment, loyalty and digital assets.  Targeting £7.5m raise.

Guild Esports a UK-based owner and developer of esports teams, has announced its intention to seek a listing of its ordinary shares to the Standard Listing segment of the London Stock Exchange this autumn.  its founding shareholders include David Beckham, former football player and captain of England, and now co-owner of new MLS team Inter Miami CF.  Raised £20m. Expected mkt cap £41.2m. Due 2 October.

HOME REIT intends to float to the Main Market raising up to £250m. The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless.  Due Mid October

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List

Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times

 

Breakfast Buffet

Personal Group Holdings 265p £82.7m (PGH.L)

Further to its announcement on 4 June 2020, the  technology enabled employee services business, working with employers to drive productivity though better employee engagement and a more motivated workforce  announced that Sarah Mace, Group Financial Controller and Company Secretary has been appointed to the Board as Interim CFO with immediate effect.  As previously announced, Sarah joins the Board in replacement of Mike Dugdale, who leaves the Company due to retirement.

Sarah joined Personal Group in January 2014 as Group Financial Controller and Company Secretary. Previously Head of Finance for Chicago Leisure Ltd, she has experience in a range of industries including roles at Cable and Wireless and various life and pensions companies. Sarah is a Fellow of the Association of Chartered Certified Accountants and has a Master’s degree in mathematics from Oxford University.

 

Attraqt Group 35p £63m (ATQT.L)

The provider of online experience orchestration, announced the acquisition of Aleph Search, an Artificial Intelligence  powered search technology. The Group also announces a placing to raise gross proceeds of £4 million at 32 pence per share to fund the acquisition, increase investment in sales, marketing and product development activities and to accelerate growth. Initial consideration of £0.35 million in cash and 3.6 million new Ordinary Shares, with additional share and cash consideration payable contingent upon achieving certain targets over a three year period

 

iomart 357.25p £390m (IOM.L)

The cloud computing company, provided its pre-close trading update for the six months ended 30 September 2020, ahead of the announcement of its half yearly results.

“iomart’s business model has stood it in good stead over an unprecedented six-month period in which our staff, customers and operations have had to adjust to the impact of Covid-19. Despite the global slowdown in corporate activity our business has performed well, with growth from existing customers in line with our expectations for the period. The Board anticipates reporting revenue growth of approximately 2% for the six months, to over £56m (H1 FY20: £55.1m) and steady levels of adjusted EBITDA, at approximately £21m (H1 FY20: £21.8m). These results reflect greater uptake of our managed private cloud solutions which, while at slightly  lower margins compared to our legacy self-managed infrastructure, remain sector leading; the timing of billing for certain orders; and only a partial benefit from efficiency adjustments to our cost base made in the period. “

 

Drumz 0.55p £1.4m (DRUM.L)

£500k placing  at 0.55p. Investors in the Placing will also receive 1 warrant to subscribe for one Ordinary Share for every two Placing Shares, exerciseable at 1.2 pence, for a period of up to 12 months from date of issue.

Angus Forrest, Chief Executive, intends to subscribe for up to 3,636,363 Placing Shares as part of the Placing.

Following the Company’s change of investing policy on 30 June 2020 and its subsequent investment in Acuity Risk Management Ltd on 7 September 2020, Drumz has undertaken the Placing to provide additional cash resources to enable the Board to respond quickly to investment opportunities.

 

Alpha FX 1095p £439m (AFX.L)

The  FX risk management and payments specialist servicing corporates and institutions internationally, today announces a trading update for the year ending 31 December 2020.

In our interim results announcement on 2 September, we reported that we experienced a strong performance in July and August.  Following on from this, trading in September has also been particularly strong and encouragingly this was across all areas of the business. Growth has come from both our FX risk management and alternative banking divisions, as they continued their penetration across the UK, Europe and Canada.

As a result, despite the ongoing uncertainty surrounding COVID-19, the Board is increasing its expectations for full year earnings, and taking into account provision for bad debts is confident that earnings will be at least in line with FY 2019.

 

Alien Metals 0.665p £18.8m (UFO.L)

The  minerals exploration and development company, has agreed to acquire, subject to granting and ministerial consent, 117km2 of tenure adjacent to and surrounding the Company’s Elizabeth Hill Silver Project in Western Australia along with associated historic technical data. The tenement ELA 47/4422 includes a range of precious and base metal prospects identified by previous operators.

–  ELA 47/4422 includes priority prospects within 10km of the Company’s Elizabeth Hill Silver Project, including:

o  Sunchaser : Located 5km west of the hundo copper mine and consisting of two Electro-Magnetic (EM) conductors. Previous Reverse Circulation (RC) drilling reportedly returned 6.1m @ 3.1% zinc from 28.4m depth.

o  Conquest : Copper-zinc-lead occurrences have been located on the surface in the immediate vicinity of two modelled EM conductors. Previous RC drilling returned 25m @ 0.52% copper from 144m depth.

o  Carver : Situated along the Maitland intrusion (which controls mineralisation at Sunchaser and Conquest), the prospect covers an area that appears to be a major conduit for fluids, identical to the structural setting proposed for the intrusion of the Radio Hill Layered Complex to the north west.

o  Munni Munni East : south of Elizabeth Hill, situated alongside the Munni Munni fault and host to mineralised gossans.

 

Oakley Capital 254p £483m (OCI.L)

 Oakley Capital Origin Fund  has acquired a majority stake in 7NXT GmbH, the leading online fitness and nutrition platform in the German speaking region, from founder and CEO Markan Karajica and Crosslantic Capital. Mr Karajica will continue in his role as CEO and will retain a significant minority stake in the business.

 7NXT comprises three businesses: Gymondo, the leading female-focused online fitness subscription platform; Shape Republic, a direct-to-consumer fitness nutrition and supplements brand; and Brand Solutions, 7NXT’s complementary merchandising and licensing division. Gymondo accounts for the majority of the Group’s revenues, offering subscription-based access to high-quality workout videos, customised fitness programs and personalised nutrition plans. Since launching in 2013, Gymondo has seen over 2 million accounts registered.

The Origin Fund, to which OCI made an initial commitment in July 2020, has invested €42.6 million to acquire 7NXT.

 

Windar Photonics SUSPENDED (WPHO.L)

The technology group that has developed a cost efficient and innovative LiDAR wind sensor for use on electricity generating wind turbines, has signed a new distribution and exclusivity agreement with a distributor in China (the “Agreement”) and has received an initial order under the Agreement for 50 WindEye™ systems to be delivered in 2020.

The Agreement provides the distributor with exclusive rights to market and sell the Company’s 2019 and 2020 2-beam systems to certain customers within the retro-fit IPP market in China for a period of 12 months. This initial, committed order is the first batch to be delivered under the Agreement, which includes non-binding sales targets for a total of 400 WindEye™ systems over the period.

 

Capital for Colleagues 32.5p £5m (CFCP.PL)

The investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, announces an investment update in respect of the quarter ended 31 August 2020.

Portfolio comprised of 16 unquoted EOBs at the end of the quarter (31 May 2020: 16)

Net Asset Value (‘NAV’) of £7,956,650 (31 May 2020: £7,553,434). NAV per share increased to 51.53 pence in the quarter (31 May 2020: 48.92 pence per share)

The Company sold its investment in portfolio company Merkko Group Limited (‘Merkko’) for consideration of £400,000, a 100% profit on the original investment. Capital for Colleagues has used £150,000 of the proceeds from the sale to subscribe for ordinary shares in Merkko, representing approximately 10% of that company’s equity capital

 

SolGold 30.125p £625m (SOLG.L)

Update on its wholly owned Porvenir Project, held by Green Rock Resources S.A, a 100% owned and unencumbered subsidiary of SolGold. PDH-20-001, the first drill hole at the Porvenir, at Cacharposa (formerly Target 15), has so far intersected over 500m of visual copper sulphide mineralisation, hosted by potassium-rich intrusions, as the hole continues towards a planned depth of at least 700m.

Whilst mineralisation measured from PDH-20-001 is highly encouraging, the observations are of a preliminary nature. The visual mineralization observed has not yet been assayed, and the intensity of visual mineralisation should not be used to estimate grade or commercial viability at this stage. Assay results are expected to take not less than 3 weeks from submission.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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