Small Cap Feast

Small Cap Feast – 07 October 2020

Dish of the Day:

AB Ignitis grupe—leading utility & renewable energy company in Baltic region. Admission of Shares to the  Nasdaq Vilnius and admission of its GDRs to the Official List, today.  Raised EUR450m at EUR22.5m. Mkt cap EUR1.7bn.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m  MailBox REIT  will apply for the Ordinary Shares be admitted to trading  on the IPSX Prime segment of International Property Securities Exchange (IPSX ).   IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due 21 October.

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. Timing tbc

Tirupati 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). Timing tbc

Buffettology 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.  Due 29 October.

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.

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.  Timing tbc

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

Vast Resources 0.1625p £21.7m (VAST.L)

Production has recommenced at its Baita Plai Polymetallic Mine in Romania. Following the recommencment of mining, the Company can confirm that daily blasting has been implemented on the mineralised horizon of the Antonio skarn between 17 level and 18 level. The blasted ore is stored underground in both the working place silos and the surface silos. Transport of the ore from the surface silos to the flotation plant silos has commenced in preparation for the hot commissioning of the flotation plant expected to follow shortly.

In addition, the incline project has commenced on 18 level with daily blasts being achieved on the new underground development since 1 October 2020 according to plan. The incline is designed to provide access to the continuation of the Antonio skarn from 18 level down to 19 level and will provide a production base for the next four years.  Based on the success of the recommencement of mining activity, the Company can confirm that it is on track to meet its October production and sales targets as outlined in the project production and associated operational cashflow forecasts announced on 7 September 2020.

 

Nostra Terra Oil & Gas 0.4p £1.5m (NTOG.L)

The oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA is notes the recent trade article highlighting successful wells near the Company’s assets in the Permian Basin.

Hart Energy, the Houston based energy industry publisher, recently published an article titled: Small Play, Big Wells: Permian Basin’s Horizontal Eastern Shelf

The article describes the development of previously disregarded and bypassed pay in the Pennsylvanian Strawn Formation. This sandstone and shale unit is between 1000′ to 4,500′ ft thick and lies at depths of around 7,500’ft. Legacy vertical wells have penetrated this interval which was rarely tested, when flow tests were conducted they typically yielded flowrates of 25 bbls/d, however, with the advent of low cost, more efficient horizontal well technologies these intervals are now being produced commercially at much higher rates. Typical recent completions in the area comprise a mile lateral section with multiple zones yielding flowrates of 600-1000 bopd 30 day average with cumulative production often exceeding 400,000 bbls.

 

Audioboom 182.5p £25.7m (BOOM.L)

The leading global podcast company, announces the expansion of its advertising sales operation to Canada through a strategic partnership with Rogers Media, together with a new slate of original content.

The partnership will enable the national and local sales teams at Rogers Media, a subsidiary of Rogers Communications, Canada’s largest media business, to sell Audioboom’s premium host-read and dynamically inserted advertising inventory in Canada.

Canada is Audioboom’s fourth biggest market for podcast consumption, and this strategic alignment will enable more efficient monetisation of the Company’s content. It follows a similar strategic partnership with the Australian Radio Network which launched successfully in June 2020.

 

Ingenta 81p £13.6m (ING.L)

The provider of innovative content solutions, confirmed that, further to its Interim Results dated 21 September 2020, that it has agreed final terms with a major global publisher on a multi-year contract for Vista as a Service. The deal has been revenue-generating since April 2020 and is expected to generate revenues of up to approximately £2m over its initial 3-year term, with the option to renew for a further 2 years at the client’s discretion.

 Ingenta’s Vista hosting platform allows customers to focus on their core business activities rather than the peripheral infrastructure required to run and maintain a sophisticated ERP solution. Publishers and content providers of all sizes are increasingly looking to outsource this aspect of their operations and Ingenta’s skilled teams can advise and tailor a solution to meet the business specific requirements.

 

Belvoir Group 147.5p £51.8m (BLV.L)

The UK’s largest property franchise, announced that the Group has successfully completed its 100th transaction under its Assisted Acquisitions programme, a core part of Belvoir’s growth strategy.

Since establishing the Assisted Acquisitions programme at the end of 2013, the Belvoir Group has now supported 100 acquisitions by its franchisees, with a total deal value of £25m, boosting franchisee network revenue by £24m.  Franchisees across all of the Group’s networks have embraced the strategy, seeing the acquisition of a local business as a means of significant growth with many of them doubling the size of their business overnight.

The Group operates a team of three staff providing research to identify acquisition targets, commercial support to secure the best deal and assistance in obtaining the necessary funding.  The Group will also lend the franchisee up to 30% of the consideration, if required, and currently has a franchisee loan book totalling £2.8m.

 

YourGene Health 20p £144m (YGEN.L)

The international molecular diagnostics group, announces that it has been awarded the contract for non-invasive prenatal testing (NIPT) using its newly-launched IONA ®  Nx NIPT Workflow (‘IONA® Nx’), by the prestigious St George’s NHS Trust Foundation in Tooting, South London (“St George’s”).  The contract, subject to signing by both parties, has been awarded after a competitive tender process and will extend Yourgene’s existing partnership with St George’s for a further three years, with testing volumes expected to increase over the contract period.

 

Sosandar 16.125p £31m (SOS.L)

Sosandar, the online women’s fashion brand, is pleased to provide the following trading update covering the six-month period ended 30 September 2020.

  • Revenue of £4.3m, a 52% increase against the same period in the prior year, with a substantial improvement in EBITDA loss
  • Sales momentum seen in Q1 and July continued in August and September. Revenue increased by 7% July to August and 54% August to September. · Initial trading with John Lewis and Next has been very promising with the initial ranges already expanded. Carefully controlled customer acquisition commenced in September and has delivered excellent initial results.

Record trading seen on two days in September, as well as record monthly sign ups to the customer database. Year to date returns of 42% vs 49% in same period last year. Maintained a strong gross margin of 52.3% (H1 2019: 53.6%) with the small reduction year on year being driven by actions in the early weeks of lockdown to address the impact of Covid-19

Net cash remains level at £4.30m (July £4.34m)

 

Oriole Resources 0.385p £3.5m (ORR.L)

The exploration company focussed on West Africa, is pleased to announce that it has conditionally raised approximately £1.576m before expenses (being approximately £1.551m in a placing and approximately £0.025m as subscriptions by certain Directors) at a price of 0.34 pence per share. The Placing Price represents a 15% discount to the price of the Company’s ordinary shares at close of market on 6 October 2020, and a 15% discount to the 30-day Volume Weighted Average Price (‘VWAP’).

 The Company is intending to raise up to a further approximately £0.293m, by way of an offer through the NR Private Markets platform . The Offer has already received irrevocable commitments for approximately £0.243m. Further details of this Offer will be announced shortly. Share warrants will also be issued to each subscriber in the Placing and the Offer, with one warrant to be issued for every two shares subscribed for, for a maximum total of 274,760,294 warrants (the ‘Warrants’). The Warrants will have an exercise price of 0.68 pence per share and an expiration date of 24 months from the date of the issue.

Proceeds will primarily be used to support ongoing exploration at the Company’s projects in Cameroon, including completion of a 3,000-metre maiden drill programme at Bibemi, for which a drill rig is already being mobilised (Announcement dated 24 September 2020).

 

Getech 11.5p £4.3m (GTC.L)

HY Jun 20 results from Getech, which   provides products and services that commercialise its expertise in the development, application and deployment of the earth sciences and geospatial technology. To date the Group has principally used these skills to build and sell data, knowledge, and analytical products to petroleum market customers, which they use to locate and improve the management of their assets and resources.

  • Projects continue to be delivered on time and to cost, orderbook continues to be honoured
  • Revenue £2.1m (H1 2019: £2.5m), plus new forward sales of £1.4m (H1 2019: £1.6m)
  • Orderbook replenished, totalling £2.9m at 30 June 2020 (31 December 2019: £3.1m)
  • Profitability enhanced; EBITDA profit £0.1m (H1 2019: £0.1m loss)
  • Cash of £2.8m (30 June 2019: £3.0m), with Globe invoicing in July increasing cash balances in H2 2020
  • Broad front of new business activity, with momentum building around mining, geothermal and hydrogen opportunities

 

4D Pharma 139.25p £183m (DDDD.L)

4D pharma announces topline results from Blautix® Phase II trial in irritable bowel syndrome (IBS)

Positive trends seen in primary efficacy endpoint of the study of overall response in both IBS-C and IBS-D subgroups

Statistically significant impact on overall response in combined IBS-C and IBS-D group

Blautix® was well tolerated, with a safety profile comparable to placebo

Phase II trial results provide strong foundation for the continued development of the first therapeutic with potential to treat both major subtypes of IBS

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.