Small Cap Feast
Small Cap Feast – 09 July 2020
Dish of the Day:
Elixirr International (ELIX.L), a consultancy helping clients in areas such as technological disruption have arrived ono 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.
Elixirr International (ELIX.L), a consultancy helping clients in areas such as technological disruption have arrived ono 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.
Off the Menu:
No Leavers Today.
No Leavers Today.
What’s Cooking in the IPO Kitchen?
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.
EQTEC 0.52p £22.05m (EQT.L)
The Company intends to conduct a Placing and PrimaryBid Offer to raise approximately £10 million (before expenses) via the issue of the Placing Shares at the Issue Price and subscription for the PrimaryBid Shares at the Issue Price., 0.45p. The Issue Price represents a discount of approximately 33 per cent. to the closing mid-market price of the Company’s Ordinary Shares on AIM on 8 July 2020, being the latest practicable date before this Announcement.
Use of proceeds. 1. specific project development capital to be deployed to accelerate the timing of identified projects, using RDF in the UK and Ireland and Biomass in Europe, to financial close and invoicing by EQTEC; 2. the settlement of outstanding principal, interest and fees due to the Riverfort Lenders, up to an amount of approximately £311,000 (further details set out below); 3. further IP development, contract suite improvement, IoT software development and additional human resource; and 4. the Group’s general working capital requirements.
Oracle Power 0.775p £15.34m (ORCP.L)
Oracle has entered into a financing facility comprising a share subscription deed for new ordinary shares raising £1,500,000 before costs and a linked placing subscription facility for a commitment amount of up to £45,000,000 (together the subject to various conditions, together with the issue of certain warrants over Ordinary Shares. The Directors believe that the availability of the facility should put Oracle in strong negotiating positions with potential additional opportunities to develop power and natural resource projects
The Subscription Amount shall not (unless the Investors agree otherwise) exceed any of the following :
- 1,000% of the average daily traded volume on AIM of the 15 trading day period preceding the request for the Subscription
- Such amount that results in the Investors holding, in aggregate, more than 19.9% of the issued share capital of the Company
iii. Such amount that would exceed regulatory restrictions required by the articles of association of the Company or by resolution at a general meeting of the Company
Allergy Therapeutics 14.75p £94m (AGY.L)
The fully integrated commercial biotechnology company specialising in allergy vaccines, announced the outcome of scientific advice from the German Regulatory Authority, the Paul Ehrlich Institute (PEI), regarding invalidation of the primary endpoint data of the Birch MATA MPL pivotal Phase III clinical trial (B301).
Further to the announcement on 18 March 2019 and following extensive data investigations and discussions with PEI, the analysis of the primary endpoint of the Birch B301 clinical trial has been declared invalid. Technical issues encountered in the study made it impossible to reconstruct the primary endpoint data and the PEI agreed that B301 cannot be considered for assessment of clinical efficacy and a new pivotal Phase III study will be conducted within the therapy allergens ordinance (“Therapieallergene-Verordnung”,TAV) time frame.
The Group’s confidence in its short course immunotherapies remains unchanged and lessons learned from the Birch B301 field study have already been introduced for future studies including the Grass MATA MPL programme to be conducted simultaneously in the US and Europe.
Premier Miton 103.5p £163.4m (PMI.L)
Q3 AuM update. Closing AuM of £10.3 billion at 30 June 2020 (31 March 2020: £9.1 billion). Alan Rowsell appointed as manager of a planned new global smaller companies fund. · Alan joins in October 2020 from Aberdeen Standard Investments where he has been manager of the £1.2 billion ASI Global Smaller Companies Fund since 2012. Lloyd Harris appointed as Head of Fixed Income and lead manager of the Premier Corporate Bond Monthly Income Fund. Lloyd joins in August 2020 from Merian Global Investors where he has worked since January 2012.
Telit Comms 128.4p £170.4m (TCM.L)
The global enabler of the Internet of Things (IoT), has published a trading update for the first six months to 30 June 2020.
The Group expects to report adjusted EBITDA and profit in cash for the first half ahead of the comparative period (H1 2019: adjusted EBITDA: $16.0 million; Profit in cash $2.6 million) despite as, previously indicated, some slowing in customer demand reflecting the impact of COVID-19. Revenues are expected to be approximately $166.5 million (H1 2019: $180.3 million, excluding revenue from the divested automotive business). Encouragingly, and demonstrating the positive impact of the strategic refocusing efforts carried out in 2019, IoT Connectivity and Platform Services revenues grew by 11.8 per cent despite market conditions to $20.9 million (H1 2019: $18.7 million).
As at 30 June 2020, the Group’s net cash position was $55.7 million (31 December 2019: $48.2 million) with an improved collection of the receivable due from Titan. Although it is now likely that revenues for the full year will be below those of the previous financial year (2019: $382.8 million, excluding automotive revenues), the Group still expects to meet board expectations for both Adjusted EBITDA and Profit in cash.
Great Western Mining 0.0975p £1.6m (GWMO.L)
Progress report on its recently acquired option over the Olympic Gold Project in Nevada, which was announced on 22 May 2020, where targeted surface sample assays taken by locally based exploration personnel have now been successfully analysed with positive results.
- Confirmation of alteration styles and vein textures indicating epithermal precious metal systems.
- Surface sampling assays up to 21.50 ppm Au and 37.30 ppm Ag in surface dumps and stope material, confirming precious metal enrichment potential.
Tracsis 615p £179m (TRCS.L)
Update on current trading, and the impact of Covid-19 on the Group.
Overall trading since the commencement of the Covid-19 crisis has been better than originally expected but naturally has had an adverse impact on the business. The Group estimates that the impact on current year revenue will be in the region of £10m, with our Traffic Data and Events business units most affected by project cancellations and postponements. The Group therefore expects to report full year revenues of circa £46m.
CPL Resources 655p £179.8m (CPS.L)
Ireland’s leading talent and workforce solutions group, announces a trading update for the six months to 30 June 2020. Cpl announced half year results on 23 January 2020 for the six months to 31 December 2019 and at that time, the Group reported strong growth in profits and earnings per share. This momentum continued into the second half of the financial year until March 2020, at which time the Group started to experience the adverse impact of the Covid-19 pandemic.
Since March 2020 trading in the Group’s Flexible Talent business, which represents over 70% of the Group’s Net Fee Income, was resilient and has continued to perform well with solid demand across the pharmaceutical, life science and technology sectors. The Group’s Permanent placement business was negatively impacted as hiring activity was reduced across many sectors.
Given the Group’s strong performance in the first nine months of the financial year, together with cost initiatives adopted in response to Covid-19, adjusted profit before tax for the full year to 30 June 2020 is expected to be broadly in-line with market expectations. Cpl has a strong balance sheet, which continues to support the working capital requirement of our Flexible Talent business.
Central Asia Metals 151.4p £266.5m (CAML.L)
H1 2020 operational highlights – No lost time injuries (‘LTIs’) at either operation – Production and sales volumes unaffected by COVID-19 pandemic – Kounrad copper production, 6,607 tonnes – Sasa zinc in concentrate production, 12,203 tonnes – Sasa lead in concentrate production, 15,140 tonnes.
Group cash and debt position – Cash in the bank on 30 June 2020, $44.0 million- Gross debt (inclusive of overdraft) on 30 June 2020, $99.0 million – H1 2020 Traxys corporate debt facility repayments of $19.2 million.
Outlook- Production currently on track to meet full year 2020 guidance for copper, zinc and lead
o Copper, 12,500 – 13,500 tonnes o Zinc, 23,000 – 25,000 tonnes o Lead, 30,000 – 32,000 tonnes
– Post-period end, reduced workforce at Kounrad to further increase social distancing measures with no impact on output levels
Mercia Asset Management 19.5p £85.8m (MERC.L)
Profitable sale of The Native Antigen Company Limited to LGC, a global leader in the life sciences tools sector, for a total cash consideration of up to £18.0 million.
Mercia held a 29.4% fully diluted direct holding in NAC at the date of sale and will receive initial cash proceeds of £4.8million, with up to a further £0.4million receivable upon finalisation of customary closing working capital calculations.
The sale is anticipated to generate an 8.4x return on its original direct investment cost and a 65% internal rate of return .
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