Small Cap Feast

Small Cap Feast – 12 April 2019

Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Main Market

Rustranscom plc— specialised rail freight transportation in Russia and Kazakhstan, announced its potential intention to conduct an IPO of GDRs. The GDRs are expected to be admitted to the Official List of the FCA and to trading on the main market of the LSE. Offering is expected to comprise predominantly primary shares, in the amount of circa $300m.

Main Market (Premium)

US Solar Fund, a newly-established investment company focused on investing in solar power assets mainly in the US, looking to raise $250m at $1. Expected 16 April

Finablr plc— global platform which provides Cross-Border Payments and Consumer Solutions, Consumer Foreign Exchange Solutions and B2B and Payment Technology Solutions to consumers and businesses in the large and growing payments and foreign exchange market is looking to list on the Main Market plans to raise $200m

Main Market (Standard)

MENA Land PLC, which is focussed on making acquisitions in the real estate sector in the United Arab Emirates, is looking to join the Standard List raising £999,900 at £1


Techniplas –global  producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient.  FYDec17 rev $515m.

Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April.

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019.


Breakfast Buffet

Alien Metals (UFO.L) 0.14p £0.97m

Alien Metals, the  exploration and development company, announced that Dennis Edmonds, Executive Chairman has tended his resignation from the Board with immediate effect and this has been accepted. Accordingly, Dan Smith, currently a NED, was appointed as Chairman with immediate effect. The Company’s strategy under its recently appointed CEO Peter Taylor and as outlined in its announcement of 18 Feb 2019 continues.

“As a Board, we thank Dennis for his contribution in guiding the Company over the past year and wish him best for the future. We remain excited by our Mexican asset portfolio through which we are working to realise value for Shareholders.”


Plus500 (PLUS.L) 512p £815.6m

Plus500, an online service provider for trading Contracts for Differences internationally, provided a trading update for the three months ended 31 March 2019.

Subdued financial markets in the quarter weighed on revenue for the period

Continued strong New Customer1 acquisition, 21,306 (Q4 2018: 19,405)

54% of Group revenue from outside the EEA region (Q4 2018: 40%)

49% of Q1 EEA revenues from Elective Professional Clients (EPC) (Q4 2018: 49%)


Cluff Natural Resources (CLNR.L) 2.35p £13m

Cluff Natural Resources, the natural resources investing company, announced that Algy Cluff has informed the Board of his intention to retire from his role as Chairman following the conclusion of the Company’s next AGM. The Company announced that Mark Lappin, a NED of the Company since 2016, will succeed Algy Cluff as Chairman. Mark Lappin has over 35 years’ experience in the oil and gas industry and, prior to joining the Company, was a Director in Centrica’s Exploration and Production Company. Mark began his career as a Geologist at Phillips Petroleum and has held operational and executive roles with ExxonMobil, Cuadrilla and Dart Energy.


Arc Minerals (ARCM.L) 2.35p £16.77m

Arc Minerals announced the commencement of its exploration programme following the  completion of its airborne geophysical programme and follow up analysis at the Zamsort Project in north western Zambia.

Infill soil sampling has commenced over the new target areas, 1200 samples already completed

Drilling of new targets to commence as soon as weather conditions allow

Target discovery areas continue to exceed expectations

The infill soil geochemical programme over the key target discovery areas will reduce the current spacing of 1km between profile lines to 200m. This further refinement of the soil geochemistry will enable more defined drilling of the targets.


Provexis (PXS.L) 0.28p £5.46m

Provexis, the business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow® heart-health functional food ingredient, announced the appointment of Dr Niamh O’Kennedy as an Executive Director of the Company, and as Chief Scientific Officer, with immediate effect.

Niamh is a research chemist, specialising in the field of natural products chemistry, who has been working with Provexis since 2000. Niamh’s experience in isolating and characterising plant-derived compounds and understanding the roles these play in complex biological systems has been pivotal in the development of Provexis’ lead product, Fruitflow®, and the health claim for Fruitflow® which was adopted by the European Food Safety Authority (‘EFSA’).

In conjunction with Niamh’s appointment, Ian Ford’s role has been expanded to CFO and COO and Dawson Buck’s role has changed from Executive Chairman to NEC.


Arbuthnot Banking (ARBB.L) 1,345p £200.2m

Arbuthnot Banking confirmed that further to the announcement released yesterday, it has sold in an institutional placing 1,050,000 ordinary shares of 40p each, held by its subsidiary Arbuthnot Latham & Co., Limited, in the capital of Secure Trust at a price of 1460p per share raising gross proceeds of approximately £15.3m.

Following the completion of the Sale, the Group will be interested in 1,819,538 ordinary shares of 40p each in the capital of Secure Trust, representing 9.85% of Secure Trust’s issued share capital.  As a result of this Sale and its reduced holding, there will be a reduction of approximately £0.8m in dividend income for the Group.


Tasty (TAST.L) 5.03p £3.56m

Tasty, the owner and operator of 57 restaurants in the casual dining sector, announced a conditional Firm Placing and Open Offer to raise up to £3.25m before expenses. The Firm Placing has been undertaken with new and existing institutional investors in the Company.

Proposed conditional Firm Placing to raise £3m through the issue of 75,000,000 Firm Placing Shares to new and existing institutional and other investors at 4p per Firm Placing Share

Proposed Open Offer to raise up to approximately £0.25m through the issue of up to 6,294,262 Open Offer Shares to Qualifying Shareholders at 4p per Open Offer Share

The net proceeds of the Transaction will be used to pay down debt and for general working capital purposes


Tri-Star (TSTR.L) 39.5p £37.18m

Tri-Star the mining and minerals processing company, announced that Karen O’Mahony, Acting CEO and CFO of the Company since March 2018, will be stepping down from her role on 30 April 2019. Karen will be replaced by David Facey who will be appointed as CEO and CFO of the Company on the same date.

In order to ensure a smooth transition and the continuity of Tri-Star’s strategy, Karen O’Mahony will remain as a special adviser to the Company and will also continue as a director of Strategic & Precious Metals Processing LLC, the Omani company in which Tri-Star has a 40% equity interest.

In addition, Mark Wellesley-Wood is stepping down as a Director and NEC of the Company with immediate effect. Adrian Collins, who has been an independent NED of Tri-Star since Aug 2010, replaces him as NEC.


Mobile Streams (MOS.L) 0.17p £0.23m

Following the recent reductions in revenue, particularly in India, Mobile Streams has undertaken a comprehensive cost-cutting exercise, resulting in a significant reduction in headcount, rationalisation of the Company’s main operating centre in Argentina as well as reducing operating expenditure in the UK, US and India. As part of the cost-cutting exercise, the Company’s CEO and both NED have volunteered a partial salary deferral of 50% of their respective remuneration.

The rationalisation and cost-cutting exercise has resulted in sizable one-off redundancy costs and severance payments of approximately £290k, primarily due to the long service of many employees and the severance terms in Argentina. Following payment of all the Company’s severance obligations, the cash balance currently stands at £219k (as at 10 April 2019).

Monthly operating expenses in Argentina from May 2019 are expected to be reduced by 72% on an ongoing basis in comparison to Dec 2018. Overall, the Board anticipates a reduction in global operating expenses of approximately 62%.


DeepMatter (DMTR.L) 2.9p £21.36m

DeepMatter, the Company focusing on digitizing chemistry, announced its audited financial results for the year ended 31 Dec 2018.

Pioneer Programme successfully launched, with our technology deployed with a total of seven organisations across three continents

Mark Warne appointed as CEO

Loss of £1.92m after tax (2017: loss £1.46m)

Cash and short term deposits at 31 Dec 2018 of £1.09m (2017: £3.27m)

Net assets at 31 Dec 2018 of £6.20m (2017: £8.11m)

Acquisition of InfoChem GmbH, a specialist in cheminformatics, from global publisher Springer Nature, for a total consideration of £2.03m

Bettina Goerner, Managing Director, Databases, at Springer Nature, was appointed to the DeepMatter board as a NED, on completion of the InfoChem acquisition

Share placing at 2.5p per share raised gross cash proceeds of £4m


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