Small Cap Feast

Small Cap Feast – 13 July 2020

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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.


Breakfast Buffet

ULS Technology 54p £35m (ULS.L)

The provider of online B2B platforms for the UK conveyancing and financial intermediary markets, announces an exclusive three-year partnership with Openwork, extending a relationship which has been in place since 2016. Openwork Conveyancing members continue to have access to a range of conveyancing products via the ULS technology powered platform, with a wide choice of solicitor firms for advisers to select from.

 As part of this partnership, Openwork advisers have access to the digital conveyancing platform, DigitalMove, which brings all parties in the home moving process closer together and gives advisers a unique proposition to offer to their clients. The recently launched DigitalMove Plus feature, Rapid Remortgage, was available exclusively through Openwork Conveyancing prior to a wider market release in June and has seen remortgage cases reach full completion in less than four working days.


Mineral & Financial Investments 7.875p £2.8m (MAFL.L)

M&FI has made a seed-round investment (CAD$100k) in Ideon Technologies Inc., a private company applying cosmic-ray muon tomography to define underground 3D rock density images.

  • The Company’s proprietary detectors and software, a result from nine years of research and development, have been successfully field tested at mineral projects in America and Australia.
  • Ideon’s technology may potentially revolutionise mineral exploration and resource development.
  • Company plans develop down-hole detectors for commercial release in 2021.


Regency Mines 0.825p £1.6m (RGM.L)

The natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces the sanction of the 2020 exploration season at the Company’s Dempster Vanadium project in Canada, in which Regency owns a 50% interest. 

o  Programme to include soil and geochemistry program, including 300 samples planned for an unexplored section of the project

o  Suite of existing core pulps to be reprocessed for indications of major oxides and carbon (both highly correlated with elevated vanadium results)

o  Collaboration with PhD Candidate from McGill University planned – will gather information on metal enrichment – improving overarching black shale geological model

o  Programme expected to commence in August 2020

o  Company anticipates project to be positioned for a drilling campaign in 2021


Directa Plus 74.5p £45.6m (DCTA.L)

The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announces that the Company’s subsidiary Setcar S.A. has signed a contract to supply total waste management services to Cummins Generator Technologies Romania S.A., part of the Fortune 500 Cummins, Inc.

 This is the third major contract win for Setcar since the completion of the acquisition by Directa Plus of 51 per cent of the company in November 2019. The value of the contract to Setcar is estimated to be approximately US$3 million over a period of three years, commencing 1 October 2020.


Image Scan Holdings 3.15p £4.3m (IGE.L)

The specialists in the field of X-ray imaging for the security and industrial inspection markets, announces the signature of a partnership agreement with a major security technology company that will lead to the launch of a new range of security X-ray screening systems for the international market.

The first system to be produced under the new agreement will replace the former “Axis 2D” machine in the Company’s product range. The new system will be a high performance, competitive conveyor X-ray machine with a 60x40cm tunnel size, suitable for security checkpoints in Government and commercial buildings around the world. The product range will eventually include a range of X-ray formats. Other technologies, such as archway metal detectors, will also be sourced through the new agreement. The new system will be taken to market both directly and through Image Scan’s expanding network of international partners.


SEC Newgate 32.5p £7.9m (SECG.L)

The international strategic communications, advocacy and research group, announces the establishment of SEC Newgate US LLC as the Group continues to deliver on its three-year Strategic Plan announced in November 2019.  

The new entity will be based in New York and Washington and represents the Group’s first expansion into the North American market.  The US is a key strategic market for the Group as it strengthens its geographic presence and ambitions to act as a global player in the communications market.

SEC US is a newly incorporated joint venture, in which the Group has a 55% ownership with the balance held by the US executive partner Bellwether Strategies. This will enable SEC Newgate to have a low risk, local presence and approach the US market with well-established key professionals in New York and Washington. Mike Holtzman is the founder and president of Bellwether Strategies whose professional trajectory spans over 20 years in the communications business in advisory roles and in US policy making operating domestically and internationally and Phil Elwood is a very seasoned Washington public relations executive with excellent contacts in politics and the media .


Ethernity Networks 14p £4.6m (ENET.L)

The  supplier of functional acceleration ethernet adapter cards on FPGA (field programmable gate array) for virtualised networking appliances, is pleased to announce a placing and subscription to raise  £780,000 (gross) at 12p per share ( discount of 37% to the closing price on 10 July 2020).

–  Strong support of Directors and staff with participation for £240,000 in the Subscription

–  Broker option (to make available further £100,000 to existing shareholders via Peterhouse

–  Investors to receive warrants on a 1 for 1 basis, exercisable at 20p and 30p (“Fundraising Warrants”)

–  Net proceeds to strengthen the balance sheet, to allow the Company to support the growing number of engagements for its 5G offering towards successful field deployments, and for general working capital purposes.


DeepMatter 1.6p £11.8m (DMTR.L)

The company focusing on digitising chemistry , today announces a placing and subscription to raise gross proceeds of £2.1 million, at a price of 1.5 pence  There is also a planned subscription of £0.2m including director participation. The Issue Price represents a discount of 18.9 per cent. to the previous day closing share price of 1.85 pence per share on 10 July 2020.

The Placing and Subscription proceeds will be used to further strengthen the Group’s balance sheet and invest in sales, marketing, distribution and support, enabling it to grow market share of its DigitalGlassware™ technology platform and cheminformatics product lines, including ICSynth. In combination with revenue estimates, the net proceeds of the Placing and Subscription are expected to fund the expansion plans of the Company over the next 24 months.


Morses Club 54.1p £71m (MCL.L)

The established provider of non-standard financial services , has successfully launched a remote lending process for new home collect credit (“HCC”) customers.  This enables Morses Club to lend to new HCC customers for the first time since lockdown began in March 2020.

The introduction of the new remote lending process allows Morses Club agents to deal with new loan applications whilst still adhering to social distancing rules and represents a further step forward in the digitalisation of the Group to meet changing customer demands. The process utilises an electronic KYC system which meets Morses Club’s high standards of customer care and satisfies all regulatory requirements.  Customers’ details and credit scores will be electronically verified using independent data sources and loans will be paid directly into the customer’s own bank account.


Coinsilium 2.45p £3.3m (AQSE:COIN)

Further to its announcement of 8 July, a Strategic Business Review of the Company’s operations and equity investments is now underway.

The objective of this Review is:

  1. to align the Company in readiness for its participation within the recently announced IOV Joint Venture (JV)
  2. to ensure that the Company is optimally positioned and resourced to capitalise on new and substantial opportunities in the burgeoning Decentralised Finance (DeFi) and Crypto Finance sector, including the development of products, solutions and services in Crypto Lending, Crypto Staking and Stable Assets, both from within the scope of its joint venture with IOV and also from Coinsilium’s operational base in Gibraltar, which is fast becoming a pre-eminent global regulatory jurisdiction for innovative financial technology, including cryptocurrencies.

The global Crypto Finance market is showing strong month-on-month growth with active collateral on DeFi platforms now in excess of USD2.1Bn.

The Company is working on several DeFi models with the aim of launching commercial solutions either independently or through its partner network.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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