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, which operates the 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


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