Small Cap Feast

Small Cap Feast – 08 August 2019

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What’s Cooking in the IPO Kitchen?


Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016,  is planning to list on the NEX exchange on the 13 August.

Rumours and Speculation

According to Bloomberg Helios Towers, one of South Africa’s largest mobile phone tower operators, is reviving plans for a London IPO.


Breakfast Buffet

Vast Resources (VAST.L) 0.12p £10.90m

Vast Resources, the  mining company, announced that it has raised in aggregate £655,000 (£625,000 after costs) through a placing of 595,454,545 ordinary shares of 0.1p in the Company at a price of 0.11p per Ordinary Share.  The Subscription was undertaken by a new institutional investor.  The Company has agreed to issue to The Investor 17,000,000 warrants to subscribe for Ordinary Shares in the Company at an exercise price of 0.13p per share and 17,000,000 warrants at an exercise price of 0.15p per share.  All warrants will expire on 8 August 2022.

The Subscription Shares were issued under existing authorities available to the Board relating to the Company’s Zimbabwe Projects.  The cash raised from the Subscription, which includes payment for expenditure already incurred, will be used for immediate strategic operational requirements in Zimbabwe.


Goldplat (GDP.L) 3.40p £6.28m

Goldplat plc, the gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, announced an operational update for the three months ended 30 June 2019.

The cost saving initiatives in the Group is expected to reduce costs by circa GBP500,000 per annum.

The Company had circa GBP2.1 million cash on hand at end of the Quarter and still anticipated reporting a loss from operating activities for the full year, at approximately  the level of the loss incurred for the half-year ended 31 December 2018, having broken even in the second half.

During the Quarter Goldplat maintained good production levels and achieved the planned margins in South Africa. Goldplat production in Ghana was supported by local clients during the Quarter, however was below expectations due to difficulties in sourcing sufficient material to process. Operations at Goldplat in  Kilimapesa, Kenya, were put on care and maintenance in May 2019.


Armadale Capital (ACP.L) 1.38p £4.69m

Armadale Capital, the  investment group focused on natural resource projects in Africa, announced exceptionally high purity results from ongoing metallurgical test-work on diamond drill core from its wholly-owned Mahenge Liandu Graphite Project in Tanzania.

The results, which include 96.8% for jumbo size graphite flakes, 97.1% for large and 97.1% for medium flake sizes, comfortably exceed the 95% average used in the scoping study, while they are in line with the exceptional graphite quality sourced from the Mahenge region in Tanzania.

Nick Johansen, Director of Armadale, said: “The ability to deliver a premium product to fast-growing end markets such as lithium-ion batteries clearly enhances the Project’s overall economics at a time when we are steadily progressing from explorer to emerging producer.”


DeepMatter Group (DMTR.L) 2.80p £22.83m

DeepMatter, the company focusing on digitizing chemistry announced that it has received its first revenue-generating order for its DigitalGlassware platform.

The first purchase order is from o2h discovery (o2h), an Anglo-Indian medicinal chemistry service provider that has end-to-end capability to take drug discovery programmes to the IND filing stage. o2h participated in the Company’s Pioneer Programme during 2018, trialling the DigitalGlassware platform in both its research and process chemistry operations.

Having participated in the Pioneer Programme, and being sufficiently impressed by the DigitalGlassware technology, o2h has elected to pay for the provision of a greater number of user licences. This roll out will enable o2h to use DigitalGlassware as part its drug-discovery collaboration with a strategic customer.


Share (SHRE.L) 31.50p £45.25m

Share, a leading independent retail stockbroker, announced its interim results for the six months to 30 June 2019.

Revenues were up 9% to £11.1m (H1 2018: £10.2m), reflecting the benefits of prior acquisitions of customer accounts. The group returned to profitability, with Earnings before interest, tax, depreciation and amortisation (‘EBITDA’) of £0.8m (H1 2018: loss of £0.2m). There was operating profit of £0.1m, including £0.2m of one-off costs (H1 2018: loss of £0.5m) Statutory earnings per share increased to 0.1p (H1 2018: loss of 0.2p).Th period saw a significant improvement in operating cash flows, with an inflow of £1.9m (H1 2018: £0.4m outflow)

Assets under administration were at record level, up 5% to £5.3bn (H1 2018: £5.0bn).


Global Invacom Group (GINV.L) 5.50p £14.94m

Global Invacom, (the global provider of satellite communications equipment and electronics, announced its financial results for the six months ended 30 June 2019 and three months ended 30 June 2019 .

The Group announced a Q2 FY2019 net profit of US$845k, its tenth consecutive quarter of profitability. Revenue for 1H FY2019 increased significantly by 29.9% to US$71.9m (1H FY2018: US$55.4m). Gross Profit for 1H FY2019 increased by 28.1% to US$15.1m (1H FY2018: US$11.8m)  Net profit for 1H FY2019 also increased by 198.1% to US$1.6m (1H FY2018: US$0.5m).

At the end of the period there were cash and cash equivalents of US$7.9m (31 December 2018: US$8.4m).

The acquisition of Apexsat (June 2019) bolsters capability in Low Earth Orbit (“LEO”) and Medium Earth Orbit (“MEO”) products.


Savannah Resources (SAV.L) 4.05p £40.33m

Savannah Resources, a multi-commodity development company focused on building cash generative and profitable mining operations, announced that Oman’s Public Authority for Mining is to Grant two Mining Licences for the High-Grade Copper Mine Developments.

The public Authority for Mining has advised Savannah that it intends to grant mining licences over the Mahab 4 and Maqail South high-grade copper deposits near the Port of Sohar in the Sultanate of Oman to Savannah’s subsidiary.

The advice follows the approval of a series of government authorities and a rigorous review of the applications by PAM. The mining licences are to be granted once new licensing fees have been set under the new Mining Law and the relevant fees paid.


Panthera Resources (PAT.L) 9.00p £5.92m

Panthera Resources, the gold exploration and development company with assets in India and West Africa, announced that it has negotiated a restructuring of the previous agreed financing package with RIM, which will result in an immediate capital injection of £500,000 at 10 pence per share.  The Company has agreed to issue 5,000,000 New Ordinary Shares to RIM and its co-investors.

The previously agreed RIM financing will be restructured to split the Tranche 3 capital injection into two separate investment tranches.

Tranche 3A will be invested immediately for gross proceeds of £500,000 at 10 pence per share.  The payment timing for Tranche 3B will be made (as previously agreed) upon receipt of approvals to recommence exploration at the Bhukia JV project in India.  Tranche 3B is now to be priced at a 15% discount to the 20 day VWAP at that time.


Xeros Tech (XSG.L) 7.94p £20.41m

Xeros Technology Group plc , the developer and provider of water saving and effluent reduction technologies with multiple commercial and domestic applications, has signed two agreements to sell the majority of its Hydrofinity US commercial laundry customer portfolio of leased machines to Eastern Laundry Systems and Wash IQ, previously known as Viking Services.

Hydrofinity will receive an up-front payment of $109,000 in cash and on-going license fees for the provision of XOrbsTM to ELS and WIQ.


Diaceutics (DXRX.L) 85.50p £61.23m

Diaceutics, a provider of data analytics and implementation services to the global pharmaceutical industry, announced that it has appointed Derek Hosty as Head of Global Data with immediate effect. Hosty will lead Diaceutics’ data team as it helps more patients across the world access precision medicine drugs by driving better diagnostic testing through unique data insights.

He brings almost 20 years of experience in software, analytics and product development to the role.


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Derren Nathan
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