Small Cap Feast

Small Cap Feast – 09 October 2020

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What’s Cooking in the IPO Kitchen?

Meritwell II intends to list on the Specialist Funds Segment of the LSE raising up to £250m. The Placing will provide UK institutions with the opportunity to “swap” illiquid holdings which have become time and resource consuming holdings, at their bid price, in return for ordinary shares in the Company. Due 26 Oct.

YAMANA GOLD INC. (TSX:YRI; NYSE:AUY, LSE:AUY) to join the Main Market (standard). It is already listed on the TSX and NYSE. Yamana  offers “investors exposure to a pure-play senior gold producer with a high-quality asset portfolio in mining-friendly jurisdictions in the Americas “ Due 13 October. Mkt cap US$5.27bn.

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 12 October.  £45m secondary placing. Anticipated mkt cap £90m.

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 and has confirmed a raise of £24o.6m at 100p. 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 12 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

Titon Holdings 86p £9.6m (TON.L)

The  international manufacturer and supplier of ventilation systems, and window and door hardware,  announced an update on trading for the year ended 30 September 2020. Full year results are expected to be announced on 14 January 2021.

Strong fourth quarter recovery after March manufacturing suspension

The Group expects revenues for the 12 months ended 30 September 2020 to be in the region of £21m, a decline of approximately 23% compared to the year to 30 September 2019. As announced earlier this year, sales in the period in the UK, Europe and South Korea were significantly impacted by the COVID-19 pandemic and the associated disruption to production and trading. However, trading has recovered ahead of the Board’s expectations, particularly in the quarter ended September 2020.

 

Minds & Machines 5.775p £52.1m (MMX.L)

The Board is commencing a formal investigation to determine whether certain revenue has been correctly recognized. The investigation will focus principally on a specific contract with multiple elements that was entered into in 2019 and relates to whether all requirements for the recognition of revenue had been met prior to 31 December 2019 and 30 June 2020  or whether such amounts should have been classified as a refundable deposit against future sales or deferred revenue at those dates.

 Cash of $1.125m has been received in connection with the relevant contract and revenue of $938,000 was recognised in the year ended 31 December 2019 and $25,000 in the 6 months ended 30 June 2020.

 The Board emphasizes that the investigation relates to revenue recognition and the Board does not expect it to have any impact on cash save for a maximum exposure of approximately $1.0m if the amounts received under the contract were to be refundable and no further revenue was generated. The Company had cash of $7.3m at 30 June 2020.

 

Diurnal Group 62.5p £76.26m (DNL.L)

The specialty pharmaceutical company targeting patient needs in chronic endocrine (hormonal) diseases, today announces a proposed conditional placing with institutional investors to raise up to approximately £8.0 million in aggregate before expenses at the Issue Price of 60 pence per Placing Share and an Open Offer to raise up to a further £2.0 million. Funds raised will be used primarily to support the continued development of the Company’s third product, DITEST™ as well as commencing Phase III preparation activities for Chronocort® in the US and progressing the Group’s early-stage pipeline.

 

Phoenix Global Resources 7.325p £204.12m (PGR.L)

HY June 20 Results. · Average daily production of 4,369 boepd (H1 2019: 9,630 boepd)

  • Majority of production shut-in with effect from April. · Significant cost reductions have and continue to be implemented. · Phased restart of production during Q3 including at its operated licences Puesto Rojas, Tupungato and Atamisqui and its non-operated licences Chachahuen.

 2020 interim results summary

  • Revenues of US$24.9 million (H1 2019: US$68.6 million). · Realised oil price of US$39.19/bbl (H1 2019: US$52.23/bbl)
  • Operating loss of US$ 50.8 million (H1 2019: loss of US$ 32.9 million)

Whilst the environment continues to be extremely challenging, the Company has taken significant steps to, and continues to, reduce its costs in all areas of the business. The Board believes this will put the Company in a stronger position to produce oil economically at lower prices with a positive contribution to cash flow and allow it to focus on the continued development of its unconventional assets.

 The Company’s major shareholder, Mercuria, continues to be supportive and the Board, whilst exercising a degree of caution, believes the actions being taken will put the Company on a sounder financial footing, whilst appreciating this position could change very quickly in these uncertain times.

 

Dekel Agri-Vision 2.65p £11.24m (DKL.L)

Production update for its vertically integrated palm oil project at Ayenouan in Côte d’Ivoire for September 2020 and also for the three month period ended 30 September 2020.

 Crude palm oil (‘CPO’) production at the Company’s mill at Ayenouan increased 54% to 1,965 tonnes in September 2020 compared to the 1,274 tonnes produced in September 2019.  Following September’s strong performance, Q3 2020 saw 5,280 tonnes of CPO produced at Ayenouan, a 10% increase on Q3 2019’s 4,803 tonnes.  In addition, September 2020 saw a continuation of the recent trend of improved global CPO pricing and higher extraction rates with CPO prices up 38% to €604 per tonne (Sept 2019: €438 per tonne) and extraction rates up to 21.2% (Sept 2019: 18.7%).  As a result, the Company’s H2 2020 results remain on course to post a material improvement on H2 2019.

 

RUA Life Sciences 152p £24.26m (RUA.L)

The holding company of a group of medical device businesses focused on the exploitation of the world’s leading long-term implantable biostable polymer (Elast-Eon ™ ), is pleased to announce that its subsidiary RUA Vascular, which is developing Elast-Eon ™ sealed vascular grafts and cardiac/vascular patches, has made further progress on both the regulatory and commercial pathways towards product launch.

As previously announced on 5 August 2020, RUA Vascular recently reached the important milestone of achieving design freeze on its vascular graft products. This allowed grafts to enter the regulatory testing phase in advance of 510k submission to the FDA. 

Good progress has also been made on commercialising the product development work successfully undertaken by the Company’s R&D team. The route to market is anticipated to be through a combination of Original Equipment Manufacturer (OEM) agreements and distribution agreements. RUA has been engaged with the medical device industry for some time with regards to potential OEM agreements. These discussions are developing at pace and have now progressed to sharing volume data and requests for quotations.

 

Alien Metals 0.76p £23m (UFO.L)

The Company’s technical team has successfully completed the follow-up detailed geological mapping and sampling programme at the Company’s Hamersley Iron Ore Projects.

 –  Detailed geological mapping and sampling completed over four of the five priority prospects targeted as part of the site visit

o  Field observations indicate that the BHP 19 and BHP 20 prospects may be part of same larger system

o  Additional prospective iron ore units mapped at the Brockman Iron project

–  Programme has been successful in validating previously announced Maiden Exploration Targets across both projects

–  95 samples were taken across the projects, with assay results expected late October 2020

–  Final results from sample assays and detailed mapping to assist with preparation of maiden drilling campaign

 

Immunodiagnostic Systems 240p £69.1m (IDH.L)

Immunodiagnostic Systems Holdings plc (IDS), a specialty solution provider to the clinical laboratory diagnostic market, announces that following the announcement on 13 August, its fully automated SARS-CoV-2 IgM antibody test (“the Test”) will be available for sale from today.

The test can now be purchased by customers in the UK, the EU, and a number of other countries which accept the CE mark as the basis of regulatory approval.  We have commenced the process of working with various national reference centres and governmental bodies to ensure a roll-out according to national guidelines.

 

Ovoca Bio 9.75p £8m (OVB.L)

Ovoca Bio, a biopharmaceutical company with a focus on women’s health, announced the appointment of Christopher Wiltshire as Chief Business Officer and Executive Director of the Board, effective immediately. Mr. Wiltshire previously served as Non-Executive Director of the Board of Ovoca Bio.

 Mr. Wiltshire is an experienced senior pharmaceutical and biotechnology executive with over 25 years of international experience. He currently serves as the Chief Executive of Hematherix LLC which is developing a recombinant clotting factor, and is former head of Business Development and Licensing at La Jolla Pharmaceutical (NASDAQ). He has a successful consultancy practice which provides strategic advice to early and mid-stage biotechnology and pharmaceutical companies. Mr. Wiltshire previously served in a number of senior positions at Pfizer, including as Head of Business Transactions and Investments within The Pfizer Incubator LLC.

 

Aquila Services Group 26p £10.36m (AQSG.L)

Aquila, the quoted parent company of three main trading subsidiaries which provide professional consultancy and support services to organisations and businesses involved in the affordable housing, education, sports and community services sectors, announces that it has sold its 25% shareholding in 3C Consultants Ltd,  a company providing IT consultancy services to the housing sector, (“3C”) under a share buyback arrangement.  3C have paid a cash consideration equivalent to Aquila’s original cost of investment of £219,345 plus 15%.

 

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

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