Small Cap Feast

Small Cap Feast – 02 October 2020

Dish of the Day:

Guild Esports GILD.L  a UK-based owner and developer of esports teams.  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. Mkt cap £41.2m.  Main market (standard).

 

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.

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

Bahamas Petroleum 2.22p £73.4m (BPC.L)

The Caribbean and Atlantic margin focused oil and gas company, with exploration, production, appraisal and development assets across the region, advises of the current status of two contract arrangements in Trinidad & Tobago.

The term of the current Goudron Incremental Production Service Contract (“IPSC”) with Heritage Petroleum Company Limited  has been extended from 30 September 2020 until 31 December 2020. This extension of term is an interim measure to allow time for Heritage to obtain requisite consents from the Ministry of Energy and Energy Industries  for the implementation of a new 10-year Enhanced Production Sharing Contract (“EPSC”) agreement.

In relation to BPC’s Inniss-Trinity asset, in accordance with the Well Participation Agreement (“WPA”) entered into in November 2017 with Predator Oil & Gas Holding Limited, by 30 September 2020 Predator was required to enter into a share purchase agreement (“SPA”) under which Predator would acquire the corporate entity that holds 100% of the Inniss-Trinity asset, for a consideration of US$4.25 million. The Company advises that BPC and Predator have not entered into such an SPA by the agreed deadline, and accordingly, this aspect of the WPA has lapsed.

 

Arcontech Group 163.5p £21.7m (ARC.L)

The provider of products and services for real-time financial market data processing and trading, announced the signing of a new Tier 1 bank client for its MVCS (Multi-Vendor Contribution System), which enables those that create market data content, whether real-time instrument prices, auction results or policy statements, to be contributed to multiple vendors and internal consumers at the same time. Although anticipated revenues are not expected to be material initially, it is the start of an important relationship with a Tier 1 global institution

Discussions commenced as the bank wished to contribute real-time prices to Factset where the bank’s clients wanted to view them and for which their existing market-data infrastructure provider was unable to help.

 

Van Elle Hldgs 35p £37.3m (VANL.L)

The UK’s largest ground engineering contractor, has entered into an agreement with ABN AMRO Commercial Finance, for up to £11m of asset-based lending facilities. The Facilities are provided on a revolving basis over 4 years and are secured by an all assets debenture including first priority charges over the Group’s receivables and certain tangible fixed assets. There are no financial covenants associated with the Facilities.

The new Facilities, which shall be undrawn on completion, provide additional balance sheet strength to enable the Group to support growth and provides greater flexibility for future capital expenditure requirements. The Group’s cash position at the end of September was c.£11.5m and the remaining debt under hire purchase agreements is £5.7m. With net funds (excluding IFRS 16 property lease liabilities) of c.£5.8m, the Group is well-positioned to face any short-term market challenges. As part of the refinancing, the existing overdraft facility with Lloyds Banking Group of £2.5m has been terminated.

 

Scancell Hldgs 17.9p £112.5m (SCLP.L)

Cobra Biologics (Cobra), part of the Cognate BioServices family, an international CDMO manufacturer of biological materials and pharmaceuticals, and Scancell Holdings plc (Scancell), the developer of novel immunotherapies for the treatment of cancer and infectious disease, today announced that they have entered into a collaboration for Cobra to manufacture Scancell’s COVID-19 vaccine. The agreement covers Good Manufacturing Pracatice (GMP) production of plasmid DNA needed to generate the DNA vaccine, against SARS-CoV-2, for use in a Phase 1 clinical trial in 2021 (COVIDITY). The project is funded by an Innovate UK grant awarded to the consortium between Scancell, the University of Nottingham and Trent University, as previously announced in August 2020.

 

Pires Investments 4.8p £5.9m (PIRI.L)

Update on its investment in Sure Valley Ventures (“SVV”) in relation to Ambisense, a company within the SVV portfolio, which provides sensors and an analysis platform to allow real-time gas and environmental monitoring.

Ambisense has announced its entry into the air quality market with the launch of AmbiAir, a solution designed to help manage, assess, and predict the COVID-19 risk in commercial and public buildings . 

By increasing building ventilation, and combining it with measures such as social distancing, it is possible to decrease the COVID-19 risk in public spaces. Studies show that the danger of exposure to COVID-19 is reduced when the level of CO2 is below 600ppm, relative humidity is between 40-60%, and there are no or very minimal levels of PM2.5.

 

Draper Esprit 586p £699m (GROW.L)

The  venture capital firm investing in and developing high growth digital technology businesses across Europe, announced that, further to the announcement made yesterday, it has secured funding commitments to raise gross proceeds of £110 million at a placing price of 555 pence per share. The Company believes there is a significant opportunity to deploy further capital driven by a growing European venture capital market and an accelerated transition to digital driven by the COVID-19 pandemic.

 

CloudCall Group 90.5p £35m (CALL.L)

The integrated communications company that provides unified communications and contact centre software that tightly integrates with Customer Relationship Management (“CRM”) platforms, announces it has a new integration with Eclipse Software.

Eclipse Software, client and candidate management system, is based in the UK with 6000 users globally, adds CloudCall’s productivity enhancing tools and intelligent dialling capabilities to their existing portfolio of services. The integration with Eclipse has already seen a customer win with TXM in the UK and Australia, resulting in more than 130 new users.

 

Holders Technology 39.8p £1.65m (HDT.L)

The Boards of Holders Technology and Senson BV (holding company of Sentistic BV) announced the creation of a 50:50 joint venture between the two companies to be known as Holders Technology Data Analytics Ltd. (“HTDA”).

This exciting new joint venture combines the technical sales resources of Holders Technology Lighting and Controls Divisions with the data analytics expertise of Sentistic BV (www.sentistic.com).  HTDA will provide data visualisation and valuable insights based on data from buildings using the Casambi wireless lighting control system, as well as data from other third party sources.  Clients will also be able to integrate data from the Holders Analytics solution into their existing building management systems.

 

Abbey 1475p £308m (ABBY.L)

Trading update. Trading over the Summer has been good.  In Southern England sales have been buoyed by the cut in Stamp Duty together with the UK Governments ‘Help to Buy’ programme. In Ireland sales activity is running ahead of last year and interest in our future developments has been stimulated by the Government’s support for first time buyers. The Group is currently on track to match or perhaps better last year’s first half turnover and profit.

For the year as a whole the outlook is less clear with the significant restriction of the UK ‘Help to Buy’ programme together with the increase to stamp duty planned for April next year particular sources of uncertainty. Overall the Group is hoping for a satisfactory full year outcome. The company’s main activities are residential housing development in the United Kingdom, Ireland and Prague.

 

Falcon Oil 7.85p £77m (FOG.L)

Technical update on the Beetaloo project in the Beetaloo Sub-basin, Northern Territory, Australia regarding the hydraulic stimulation of the horizontal Kyalla 117 N2-1H ST2 well (“Kyalla 117 well”).

Completion of 11 hydraulic stimulation stages along the 1,579-metre horizontal section in the Lower Kyalla Formation

Stimulation treatments were successfully executed

Activities have commenced in preparation for the flowback and extended production test

Early stage gas flow rates are expected in the coming weeks  

Philip O’Quigley (CEO of Falcon) commented:

“We look forward to the next phase of operations with the production testing of the Kyalla 117 well and will update the market as results become available.”

 

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

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