Small Cap Feast

Small Cap Feast – 12 May 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

The pantry is empty, again!

 

Breakfast Buffet

Westmount Energy 13.85p £13.73m (WTE.L)

Westmount has purchased 1,350,000 common shares in JHI Associates Inc., by way of the issue of 15,930,000 new ordinary shares of no par value in Westmount . JHI is a private, Ontario-registered, company established in 2014 and focused on oil exploration opportunities in the emerging Guyana-Suriname Basin. The company’s main asset is a 17.5% carried interest in the Canje Block covering over 4,800 square kilometres, offshore Guyana. This block is located adjacent to and in the same geologic basin as the Stabroek Block which has delivered sixteen substantial oil discoveries since 2015, with reported discovered recoverable resources in excess of 8 billion oil-equivalent barrels to date. Following the above purchase, Westmount holds a total of 3,563,770 shares in JHI, representing approximately 4.8% of the issued common shares in JHI as of 13th November 2019.

 

Velocys 3.4p £21.9m (VLS.L)

The sustainable fuels technology company, has secured a further £1m funding for the Altalto waste-to-fuels project from British Airways PLC and Shell International Petroleum Company Limited. This £1m will be payable before 30th June 2020. 

The proposed Altalto Immingham plant is to convert hundreds of thousands of tonnes per year of residual waste into sustainable fuels, mainly aviation fuel. The project is being executed under a Joint Development Agreement  between British Airways, Shell, and Velocys. This JDA has now been extended as planned in order to support the continued technical and commercial development of the project.

 

Oncimmune Holdings 87.5p £55.56m (ONC.L)

The global immunodiagnostics group, today announces it has signed an antigen targeting collaboration to support drug development with a leading US biopharmaceutical company which is developing novel therapies based on the human immune response.

Under this agreement, Oncimmune will be utilising its proprietary biomarker discovery engine, SeroTag®, to identify antigen targets from selected human immunoglobulin antibodies. SeroTag®, is a high-throughput, multiplex technology based on one of the largest in-house protein libraries, as well as a unique, ever-growing repository of disease data for indications including, autoimmune diseases and cancer. As a result, Oncimmune is helping to address a number of challenges currently hindering the successful development and broader application of both cancer immunotherapies and treatments for autoimmune diseases.

 

Serica Energy 107p £283m (SQZ.L)

Serica has entered into a contract for the provision of a drilling rig for the intervention work on the Rhum-3 (R3) well on behalf of the Rhum partners. The work will be carried out using the Awilco Drilling’s WilPhoenix, a 3rd-Generation, Enhanced Pacesetter, harsh-environment, mid-water, semi-submersible drilling rig. It is expected that operations will commence in the 4th quarter of 2020 and last approximately 70 days.

The work programme will involve recovering debris left in the well by the previous operator and removing an obstruction that is believed to be in place across parts of the downhole completion. The well will then be recompleted and put into production. R3 is already connected to the subsea production infrastructure.

 

Angle 65p £112m (AGL.L)

The Liquid Biopsy Analysis Unit at the Health Research Institute of Santiago, Spain has published results of new work undertaken in head and neck cancer and non small cell lung cancer on the potential utility of a liquid biopsy-based strategy to assess MET alterations on circulating tumour cells (CTCs). The researchers are the first to investigate the use of liquid biopsy systems to capture CTCs in order to investigate MET expression levels in the cancer, in a study comparing the utility of Parsortix to that of the leading antibody-based CTC system. The head and neck cancer results using Parsortix showed a significant association of the presence of MET positive CTCs, which was a minority of patients, and poorer overall survival of those patients.  

 

Ncondezi 3.65p £12m (NCCL.L)

Ncondezi has received updated “in principle” support from all loan holders to enter a Loan restructuring proposal . Terms include:

o  Extension on existing terms, including 12% annual interest rate and ability for Lenders to swap debt for equity in part or in full at a conversion price of 10.0p per share 

o  12 month extension from the future Restructuring approval date 

o  A right for Ncondezi to pay off the original principal amount of the Loan along with conversion of all interest into Ncondezi shares on AIM at a 25% to 30% premium to the 30 day volume weighted average price

 

Karelian Diamond Resources 3.8p £1.6m (KDR.L)

TUKES (The Finnish Mining Authority) has granted the Company three strategic diamond exploration Reservations. One of these diamond exploration Reservations (KDR-R1) is situated around the Company’s approximately two hectare in size Lahtojoki kimberlite pipe diamond deposit which is within the Kaavi kimberlite field. The other two diamond Reservations (KDR-R2 and KDR-R3) are in the Kuhmo kimberlite field target area around the Company’s Riihivaara kimberlite discovery and the Company’s anomaly 5 target, where the Company discovered a green diamond in till.

 

Octagonal 1.5p £8.5m (OCT.L)

Trading update for its principal and wholly owned trading subsidiary – Global Investment Strategy UK Limited. GIS expects to report EBITDA of £1.65million, on sales of £5.8 million for the year ended 31 March 2020. Although this is a 6.8% decrease in profits (2019: £1.77 million) and 7.4% increase in sales (2019: £5.4 million) from the previous year, these results reflect the reduction of overall profit margins reported in 2019 and additional administration cost incurred in association with the development of its subsidiaries. The impact of Covid-19 saw a decrease in event driven equity volumes, but an increase in credit trading.

 

Galantas Gold 23p £7.4m (GAL.L)

Galantas has agreed matters with the Police Service of Northern Ireland (PSNI), regarding blasting at its 100% owned gold mine near Omagh, Northern Ireland. Galantas earlier announced (April 2, 2020) that confirmation has been received from PSNI, in regard to satisfaction of certain secure storage and handling protocols required for an increase in blasting to a commercial level. Some other issues, regarding financial matters, were being progressed. The Company understands that financial matters have now been mutually agreed. The Company expects to re-start milling operations within the next ten days and will be working from a stock of low-grade material currently available. 

 

Arricano Real Estate 0.3p £31m (ARO.L)

The temporary restrictions of customer access to its retail shopping centres in Zaporizhzhia and Kryvyi Rig have been lifted by the local authorities. As a result, Arricano’s City Mall and Sun Gallery shopping centres fully re-opened for business today bar their food courts and entertainment centres.  Arricano’s other shopping centres remain only partly opened with only hypermarkets, pharmacies and some other stores open for business. 

 

Head Chef:

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

*A corporate client of Hybridan LLP

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