Small Cap Feast

Small Cap Feast – 07 July 2020

Dish of the Day:

No Joiners Today.

 

Off the Menu:

No Leavers Today.

 

What’s Cooking in the IPO Kitchen?

Elixirr, a consultancy helping clients in areas such as technological disruption have announced their intention to IPO onto AIM.  The placing will raise £20m of new money for the company and a further £5m for founder shares.

For FY 2019, the company reported EBITDA of £7.4m.  Expected market cap circa £98m with first day of dealings anticipated for 9th July @ 217p per share.

 

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Thor Mining 0.335p £4.1m (THR.L)

Positive assay results from samples identified as having vanadium potential from field sampling in the Colorado mineral claims held by American Vanadium Pty Ltd (AVU). Other samples identified as potentially uranium rich, are being assayed at a separate laboratory facility which is better equipped for samples of this nature. AVU holds interests in uranium and vanadium focussed projects, in Colorado and Utah in the United States of America. The Company announced on 1 June 2020 an option agreement to acquire AVU, subject to satisfaction of due diligence requirements.

Highlights:

  • The eight initial assay results averaged 1.0% V2O5 and 0.043% U3O8.
  • Two outcrop samples from the Rim Rock mine were 1.8% and 2.0% V2O5.
  • Eight of the twenty-one field samples had radioactivity levels low enough for routine assay process to be completed.
  • The remaining 13 samples have been transported to a specialist laboratory with facilities designed to handle higher radiation level material.

 

Plus500 1440p £1,527m (PLUS.L)

David Zruia has been appointed as permanent Chief Executive Officer, having held the role on an interim basis since 20 April 2020. David joined Plus500 in 2010 and was appointed Chief Operating Officer in 2013.

Further to the Company’s recent trading updates, issued on 28 April 2020 and 8 June 2020, market volatility remained heightened throughout the second quarter. This drove a consistently high level of customer trading activity which, together with the onboarding of a significant number of New Customers at an attractive cost, ensured a record number of Active Customers trading on the Plus500 platform during H 1 2020. 198,176 New Customers were onboarded during H1 2020 (H1 2019: 47,540), including 115,225 New Customers in Q2 2020 (Q2 2019: 26,234).

As a result, total revenue for H1 2020 was circa $564.2m3 (H1 2019: $148.0m), including circa $247.6m3 in Q2 2020 (Q2 2019: $94.1m), demonstrating the strength, scalability and differentiation of the Group’s business model . 

 

Velocity Composites 22p £7.9m (VEL.L)

The supplier of advanced composite material kits to the aerospace sector has signed a new framework agreement with an existing customer, a leading UK prime contractor in the Defence sector.

The Framework Agreement sets out the top-level terms and conditions, which underpin the Group’s existing work packages with the Customer, and, importantly, enables additional work packages to be placed.  The Company has been operating within the terms of the Framework Agreement since 1 March 2020 and remains in place through to 31 December 2022 with options to extend for two further 12-month periods.

 

Sosander 12.4p £23.8m (SOS.L)

Year on year growth with significantly reduced losses as a results of strategy shift implemented in response to Covid-19

Sosandar, the online women’s fashion brand, provided a Q1 trading update covering the period 1 April 2020 to 30 June 2020.

The Company reported that the resilient performance seen in April and May continued throughout June. Total revenue in Q1 increased by 54% year on year, demonstrating the strength of the Company’s business model and continued demand for its offering. This growth represents strong performance in a difficult trading environment, whilst noting that Q1 was the lowest revenue quarter in the prior year.

 

Aura Energy 0.5p £12.8m (AURA.L)

Aura has signed a C$4.5 million (A$4.8 million) funding term sheet for the creation of a joint venture vehicle with TSX-listed Chilean Metals Inc for Aura’s gold, base and battery metal tenements in Mauritania. The deal is subject to due diligence and as such is non-binding.

Aura’s Tasiast South tenements over 435 km2 are in a highly prospective area lying on two lightly explored mineralised greenstone belts in Mauritania. The areas lie along strike from Kinross’ giant +20 Moz Tasiast Gold Mine, where Kinross has recently announced that it will expand gold production to 530,000 ounces per year.

Aura maintains that these tenements, also with strong base and battery metal results, represent some of the best under-explored greenstone belt targets in the world.

 

Seeing Machines3.325p £112m (SEE.L)

The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, welcomes news from the US where the ‘Moving Forward Act’ has been passed in the House of Representatives, representing the strongest automotive safety bill in decades.

The ‘Moving Forward Act’, now set to move to the Senate, is focused on advancing safety technologies proven to reduce crash and harm and to make sure strong safety standards are in place to save lives. The bill, which now needs to be passed in the Senate, seeks to mandate automatic braking, lane-keeping, blind-spot detection, event data recorders as well as DMS in all cars and trucks sold in the US from 2024, lining up closely with the European General Safety Regulation, passed into law in November 2019.

 

Braveheart Investment Group 14.75p £5.1m (BRH.L)

Update concerning  the development of a COVID-19 test that Paraytec Limited is conducting with the University of Sheffield. In order to avoid using live Coronavirus in the lab during proof of concept, an artificial version of the virus is used, the surface of which mimics the Covid-19 virus, by displaying the precise protein (SPIKE) on it that the virus uses to gain access to human cells.

Professor Carl Smythe commented: “We believe that this is the first time an aptamer for COVID-19 has been successfully integrated into a micro fluidics-compatible test surface to enable low level virus particle detection. Over the next month, we will evaluate which of the modified surfaces described above have performance characteristics required, and then report on the final construction stages of the Capture system. Subsequently, we aim to demonstrate the ability of the Capture system to selectively retain virus proteins as the first stage in development of our test device”

 

Burford Capital 546.5p £1,197m (BUR.L)

The global finance and asset management firm focused on law, today announced that it has filed a registration statement on Form 20-F with the US Securities and Exchange Commission in order to list its ordinary shares for trading on a US stock exchange in addition to their current UK listing on London Stock Exchange AIM.  As stated previously, Burford does not intend to issue new shares in conjunction with the proposed US listing.

 

PCI-PAL 41.5p £24.6m (PCIP.L)

Trading update for the year ended 30 June 2020.

The Group continues to build strong momentum and has made further significant progress across its key growth metrics. The Board confirms that trading for the year ended 30 June 2020 was in line with current market expectations.

Significant full year revenue growth

PCI Pal expects to report revenues of approximately £4.4 million, an increase of over 55% on the prior year (2019: £2.8 million). In the period, the Group signed new contracts worldwide with a recurring Annual Contract Value  of £2.6 million (2019: £1.9 million).

The Group strengthened its balance sheet in the period with a £5.0 million equity fundraising in March 2020.

 

LPA Group 68.5p £8.7m (LPA.L)

The high reliability LED lighting  and electro-mechanical system manufacturer, is pleased to announce further contract wins for both UK and export rail markets.

Totaling £3.3m, these individual awards into the rail sector include electro-mechanical assemblies into the UK, an LED lighting contract for the Australian rail market and an electro-mechanical jumper order for the UK rail market.  Output against the contracts is anticipated to commence in the current financial year (FY20) with the majority of output expected through FY21.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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