Small Cap Feast

Small Cap Feast – 05 October 2020

Dish of the Day:

Calnex (AIM:CLX),  an established provider of test and measurement solutions for the global telecommunications sector, has  a total of £22.5m (before expenses), comprising £6.0m for the Company and £16.5m for existing shareholders .  It admitted to market today under the ticker CLX. Based on the Placing Price, the market capitalisation of the Company is £42.0m on Admission.  £14m revenue and PBT of £3m.

Mode Global Holdings has joined the 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.  £7.5m raise.

 

Off the Menu:

Digital Landscape  has left the Main Market Standard and transferred its listing to NASDAQ.

 

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

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 £1.4bn 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 Q4 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.

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

IQE 53.45p £426m (IQE.L)

The leading manufacturer of advanced semiconductor wafer products for the global semiconductor industry announced the acquisition of third-party shareholdings in IQE Taiwan Corporation, taking IQE’s ownership from 90.18% to 100% .

Selling shareholders representing 5.04% of the shares in IQE Taiwan, and 51% of the third-party shareholdings, accepted the Share Swap and the aggregate consideration payable to those shareholders is £1,437,646 which will be settled through the issue of 2,606,689 Ordinary Shares at an issue price of 55.15p

Tim Pullen, Chief Financial Officer of IQE, said:

“IQE’s Taiwan subsidiary is of strategic importance to the Group as a base for epitaxy production in the Asia region. Having invested in the expansion of the facility in 2019 and looking forward to further growth in the future, I’m delighted to be bringing the entity under wholly owned status.”

 

Chariot Oil & Gas 3.825p £14.49m (CHAR.L)

Appointment of  Pierre Raillard as Morocco Country Director. Pierre brings to Chariot over 25 years’ operational and management experience in the energy industry, with specific expertise in the development of natural gas projects in Africa.  Pierre has held senior positions within a number of leading energy firms.  He joins the Company from Orca Energy Group, which he returned to as Head of Business Development having previously played a key role in the development of the Songo Songo gas field, located offshore Tanzania, which is analogous to Chariot’s Anchois gas development project, located offshore Morocco.  Pierre has also held leadership roles at African Petroleum Corporation, Perenco and OneLNG.

 

Reabold Resources 0.6p £42.6m (RBD.L)

Further to its announcement of 22 September 2020, the onshore West Newton B-1 well, the next well following the successful West Newton A-2 appraisal well, has now spud. Reabold has a ca. 56 per cent. economic interest in the conventional West Newton field onshore UK PEDL 183 and Rathlin Energy (UK) Limited  is the operator.

 The objectives of the WNB-1 well are:

  •   To evaluate the extent of the hydrocarbon accumulations found in the Kirkham Abbey formation by the WNA-2 well in June 2019
  •     To test the reservoir properties of the deeper Cadeby formation which, if found to be hydrocarbon bearing, could add significantly to the value of the West Newton field.

 

VR Education 14.75p £35.66m (VRE.L)

The virtual reality (‘VR’) technology company, announced that its ENGAGE platform has been chosen to deliver a major United Nations (‘UN’) event.  VR Education’s ENGAGE platform, which hosts virtual events, virtual training and remote distance learning, will be used to facilitate the UN’s annual ‘Global Youth Takeover’ event on 24 October 2020.

 

Zephyr Energy 0.625p £1.79m (ZPHR.L)

 Dual-purpose well to be spudded on Paradox project by year-end, owned and operated by Zephyr

– US$2m funding from the U.S. Department of Energy;

The well’s primary objective will be to acquire a comprehensive data set across the Cane Creek reservoir. The well has also been designed to facilitate re-use, which will allow the potential for future drilling of a horizontal appraisal lateral from the wellbore after the initial data acquired has been processed and evaluated.

 

Mosman Oil & Gas 0.155p £2.75m (MSMN.L)

Update on production at the Stanley-4 well in Texas, in which Mosman has a working interest of c16.5%.

As of 2 October 2020 the operator of Stanley-4 advised that since completion, on 22 September, the well has produced 1,661 bbls of oil. The average daily rate was 200 bopd for the four days to 2 October 2020.  From the initial production 1,051 bbls of oil were sold in September. The oil had been stored in temporary tanks and Mosman can confirm the permanent production tanks were installed in the past week.

Now Stanley-4 is on production, it will be included in the 6 monthly production report and production will not be separately reported, unless there is a material change.

 

Solid State 617p £52.8m (SOLI.L)

$4m plus Optoelectronics Contract. The manufacturer of computing, power and communications products, and value added distributor of electronic and optoelectronic components, announced the award of a 3 year contract to supply optoelectronic modules to a leading UK instrumentation company.  The contract has been awarded to Solid State’s Pacer optoelectronics business unit acquired by the Group in November 2018. The customer is a long standing client of Pacer.  Approximately $1.7m will be recognised in the first year of the contract.

 

Morses Club 38.8p £50.9m (MCL.L)

The established provider of non-standard financial services, announced the appointment of Graeme Campbell as Chief Financial Officer (“CFO”), effective 12 October 2020, subject to regulatory approval. He will also be appointed as an Executive Director to the Morses Club Board.

 Andy Thomson, currently interim CFO of the Company, will remain in an executive capacity until the publication of the Company’s FY20 results to ensure a smooth transition and regulatory handover, following which, Andy will re-assume his role as Non-Executive Director on the Board.

 Graeme was most recently the Chief Financial Officer of BrightHouse (a trading name of Caversham Finance Limited), which provided rent-to-own and cash lending services to the UK consumer market. Graeme became the CFO of BrightHouse in 2018.  He joined the company in 2011 and held a number of roles including Director of Finance as well as the Strategy and Digital Director, and Chief Information Officer, during which he spearheaded the financial, IT and emerging digital strategy of the business, alongside its retail offering. Prior to this, he held roles at Virgin Media and Thresher Group.

 

Wishbone Gold 4.05p £4.9m (WSBN.L)

The precious metals trading and exploration company, announces that it has signed an exclusive 45 day option to acquire 100% ownership of 67 square kilometres of granted mineral exploration tenements in the Patersons Range region of Western Australia

The Patersons Range Project has three approved exploration licenses: 45/5297, 45/5408, and 45/5409.

  • EL 45/5297 is a large is 57.4 km2 tenement and is located only 13 km south-west of the Telfer Gold Mine, which is operated by Newcrest Mining
  • EL’s 45/5408 and 45/5409 (6.376 km2 and 3.188 km2 respectively) are located about 15 km south-east of Telfer and only about 25 km south-west of the new Havieron gold discovery operated by Greatland Gold Plc and Newcrest Mining.

 

Simigon 5.75p £2.92m (SIM.L)

 The specialist in providing simulation training solutions, is pleased to announce that it has been awarded with additional $0.5 million extension to its C-130 Virtual Maintenance Training  contract previously announced in 2 December 2020  by a large international defence company . The Contract is for the design, development and implementation of a C-130 VMT solution for the Israeli Air Force (“IAF”) technical training academy.

SimiGon’s investment in maintenance training technologies together with the recently successful systems delivery of F-16 VMT to the IAF, has contributed to the decision made by the Defense Company to grant SimiGon with the Expansion. The high level of confidence showed by the Defense Company was influenced by SimiGon’s maintenance training technology infrastructure and solution that significantly increases training effectiveness over traditional maintenance training methods.

The Contract is an additional “Stamp of Approval” from the Defense Company and the IAF that further justifies the business decision made by management to pursue the maintenance training market and to invest in research and development funds in the maintenance training domain.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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