Small Cap Feast

Small Cap Feast – 13th January 2017

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Logicor—Report in City A.M. that Blackstone is aiming to list warehouse business Logicor, which is valued at around €13bn (£11bn), on the London Stock Exchange in 2017.

Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas  exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise.

Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.


Breakfast Buffet

Ariana Resources (AAU.L) 1.9p £15.99m

Ariana has announced an oversubscribed placing raising £900k at 1.6p. The net proceeds of the Placing will be used to advance the Company’s projects outside of Kiziltepe, and to support ongoing working capital requirements of the Group. “Following the recent acquisition of 100% of the 1m oz Salinbas Project and the completion of a highly encouraging scoping study at Tavsan, the funds raised will be utilised to advance these projects in particular.  Both projects require additional value additive work that it is important that we conduct during the winter months and immediately ahead of the exploration field season. Completing this work while Kiziltepe is in the process of entering production, will contribute significantly towards our strategy to enhance our production profile towards 50k oz gold per annum.”

Collagen Solutions (COS.L) 9.38p £10.78m

The developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices, research and in-vitro diagnostics, has been awarded a third Medical Research Scotland Ph.D. studentship, this time in partnership with Professor Elizabeth Tanner, of the School of Engineering, at the University of Glasgow. The project, titled “Collagen Calcium Phosphate Composite Devices for Bone Augmentation”, will investigate the application of collagen fibrils to provide a scaffold for “critical size defects” in bone, which do not heal spontaneously. “Our current pipeline includes a novel bone graft substitute product, addressing a segment of the $1.7 billion end-user bone graft market opportunity. “This programme will ensure further innovation in this field.

Akers Biosicences (AKR.L) 124.5p £9.22m

Further to the public offering announced on January 10, 2017, Joseph Gunnar & Co., LLC, the sole book-running manager for the Offering, has elected to exercise its over-allotment option, pursuant to its underwriting agreement with the Company, to purchase an additional 122,500 common shares from the Company at $1.20 per share with the issuance of a further 61,250 warrants with an exercise price of $1.50.  The gross proceeds from the Offering, are now expected to increase to $2,147,400, before deducting the underwriting discount and estimated offering expenses.  Akers Bio develops, manufactures, and supplies rapid screening and testing products designed to deliver quicker and more cost-effective healthcare information to healthcare providers and consumers.

Electrical Geodesics (EGI.L) 79p £2.81m

FYDec16 trading update from the neurodiagnostic medical technology company expects $14.3m revenue, an increase of 5% but revenues for H2 some 9% lower than the Company’s record H2 in 2015. A weaker than expected Q4 reflects a significant number of sales opportunities moving into 2017 with customers reporting uncertainties arising from the US election results & the impact on research funding & the likely efforts to repeal the Affordable Care Act. Indications are that a portion of US commercial opportunities expected to close in Q4 will likely finalise in H1 2017. International sales continue to be challenged by dollar strength  but the major markets in the EU and Asia showed growth. “The adoption of dEEG as a standard of care by several European neurology societies will further support continuing clinical growth.”

Manx Telecom (MANX.L) 199p £224.5m

Pre-close trading update from the leading communication solutions provider on the Isle of Man. trading during 2016 has been in line with management expectations with cash flow continuing to support a progressive dividend. Availability of high speed broadband services continues to grow, now reaching 93% of premises, and take up continues to expand with 40% of the broadband customer base now on VDSL or VDSL+. Data centre revenues down largely offset a return to good levels of growth in the Global Solutions business. Expects £10m exceptional costs over 2 years on an enhancement programme. FY16E £81.56 rev, EPS 13.4p, 10.94p div.

Steppe Cement (STCM.L) 16.5p £36.14m

Preliminary update for FYDec16. Revenue down 8% to 17,841 KZT. Volumes down 4%. Prices down 4% mostly due to competition among local companies and the start-up of two dry kilns in  Kazakhstan. Market contracting. The fourth quarter marked a shift in strategy as Steppe Cement tried to maintain higher prices at the expense of market share. The strategy may be revised depending on the overall market reaction and the market share until the high season in 2017. Market share of 17% broadly stable in 2016. FY Dec16E £53m, PBT £3.91m, Div 1.14p.


Iofina (IOF.L) 19.75p £12.73m

Corporate update from the specialists in the exploration and production of iodine and iodine specialty chemical derivatives.  Iofina produced a total of 218.6 MT of crystalline iodine in H2. 2016 total crystalline iodine production was 474.2 MT. As previously announced, the Company experienced lower than expected output from its IOsorb® plants in November and early December due largely to an acceleration of its partners’ fracking operations. More normalised production levels resumed in late DecemberIofina expects to produce 235 – 255 MT of crystalline iodine in H1 2017 from its Oklahoma  plants.  Production revenues are currently held back by low iodine prices, but the chemical processing activity continues to trade successfully.


88 Energy (88E.L) 3.9p £104m

Update on Project Icewine, located onshore North Slope of Alaska. Conventional Prospectivity Review by 88 Energy over Project Icewine complete.    Additional resource potential identified for conventional leads across Project Icewine acreage, based on internal estimates totalling: 710 million barrels of gross mean Prospective Resources (unrisked) -550 million barrels of net mean Prospective Resources to 88 Energy (unrisked). “Whilst the conventional Prospective Resource is very large, it is eclipsed by the potential of the HRZ”  (shale).


Snoozebox Holdings (ZZZ.L) 0.41p £1.21m

Snoozebox will once again be providing accommodation at the Isle of Man TT races being held 27 May to 9 June 2017. Snoozebox will be providing a total of 240 rooms for the duration of the event.  For the fourth year running Snoozebox will be located in Noble’s Park close to the main TT grandstand, start/finish line, paddock and TT hospitality suite, and just minutes from all the action. Adjacent to the hotel is a restaurant, bar and guest lounge. There are no forecasts in the market.


All Star Minerals (NEX:ASMO) 0.125p £1.2m

Quarterly update.  Since the last quarterly update  there has been continued focus on two opportunities for the Company.  Whilst at this time there can be no guarantee as to the outcome of these  opportunities, it provides an indication that the board is proactively looking  to advance All Star. All Star maintains its holding of 5,521,545 shares in NQ Minerals Plc (NQ). The Board of All Star notes progress made by NQ in the last quarter and continues to be encouraged by the developments.


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