Small Cap Feast

Small Cap Feast – 14 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.

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.

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.

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

Distribution Finance 54p £60.24m (DFCH.L)

Distribution Finance Capital Holdings plc, a newly authorised bank providing working capital solutions to dealers and manufacturers across the UK, today announces that its subsidiary, DF Capital Bank Limited, has launched its first line of personal savings products, which will feature in the best buy tables of three saving rate aggregators.

The Group has launched a 1 year fixed rate account at 1.18% AER and a 90-day notice account at 1.12% AER. The Group expects to launch 18 month and 2 year fixed rate products shortly.

Carl D’Ammassa, Chief Executive of the Group commented: “We are excited to launch these personal saving products to the wider market following a period of product testing and exclusive promotion. We are delighted with the feedback we have received and feel confident that our highly automated and online application process will prove relevant to UK savers who are looking for competitive rates and excellent service from their bank, with the added assurance of the Financial Services Compensation Scheme to protect their savings up to £85,000.”

 

Petards Group* 7.75p £4.46m (PEG.L)

The software developer of advanced security and surveillance systems, announces that it has been awarded a contract to supply Porterbrook Maintenance Limited with Petards eyeTrain   systems.

The new contract, which is worth in excess of £1.3 million, is for the supply of Petards eyeTrain systems. These will be fitted to 19 Class 769 Flex trains, which are the UK’s first tri-mode trains, capable of running on overhead and third rail electric lines as well as under their own diesel power. The trains will be operated by Great Western Railway and are expected to be introduced on services running between Reading and Gatwick during 2021. Deliveries are expected to be completed during the first quarter of 2021.

 

Egdon Resources 1.75p £5.75m (EDR.L)

Agreement with Union Jack Oil plc to align equity interests in PEDL241, and to jointly pursue a farmout for the drilling of the North Kelsey-1 exploration well.

The North Kelsey Prospect is a drill ready conventional oil prospect along trend from and analogous to the Wressle oil development – which lies some 15 km to the northwest – and has been mapped from 3D seismic data to have potential for oil in up to four stacked conventional Carboniferous reservoir targets. Egdon estimates that the Prospective Resources range from 4.66 million barrels up to 8.47 million barrels, with a Mean Resource volume of 6.47 million barrels.

On 7th September we announced an extension of the existing planning consent for drilling North Kelsey-1 to 31 December 2021.  We have also received the requisite permits from the Environment Agency.

Under the terms of the agreement Union Jack will acquire a further 30% interest in the licence for a cash consideration of £100,000 with the previous farm-in obligations terminating. Egdon will retain operatorship and a 50% interest in the licence. The transaction is subject to consent from the Oil and Gas Authority.

 

Kore Potash 0.675p £16.5m (KP2.L)

The potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, has received authorisation  from the Government of the Republic of the Congo to commence the planned drilling programme for the Definitive Feasibility Study for the Company’s DX Project .

 A drilling programme consisting of the drilling and analysis of up to 5 new holes is planned to begin this month – these will improve confidence in the value of DX

  • A number of local and international consultants have been engaged to support the environmental and technical aspects of the DFS
  • SQM, a global scale lithium and potassium producer and one of Kore’s major shareholders, is providing technical support for key aspects of the DX DFS
  • Phase One of the DX DFS is planned for completion in May 2021

 

Brave Bison 1.025p £6.28m (BBSN.L)

The Social Video Group, has been appointed by Vodafone’s youth-focused mobile network, VOXI, as their influencer marketing partner until the end of 2020. Brave Bison received the brief through its recently acquired entertainment media brand, The Hook. The Hook is one of the leading youth-focused social publishers in the world, home of trending news, entertainment and original video with 9 million multi-platform followers.

 

Directa Plus 70.5p £43.13m (DCTA.L)

The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, provided an update on the integration and current trading of Setcar SA (“Setcar”), the Company’s 51%-owned environmental remediation business acquired in November 2019.

 In the 10 months following the acquisition of Setcar, the business is delivering significantly improved results compared to previous years, despite the headwinds caused by the Covid-19 pandemic.

  • Sales for the period 1 January 2020 to 1 October 2020 increased to €3.0m (equivalent previous period: €2.6m)
  • 132 new contracts have been signed since 1 January 2020
  • Since the start of 2020, Setcar has participated in 77 tenders for new business, of which 32 were awarded to Setcar, with a further 9 still under evaluation by the potential customers
  • Contracted order book is expected to generate revenue of €4.0m during 2021 and €3.0m during 2022
  • Post-acquisition integration continues to progress well and the Company continues to invest to reshape the Setcar business to ensure better growth opportunities.

 

Kromek 13.25p £45.65m (KMK.L)

The worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, has commenced development of a new system to improve the pathological medical imaging techniques used during cancer surgery to distinguish between healthy and non-healthy tissue – a new application area for Kromek’s technology. The three-year project, which has received grant funding from Innovate UK, is being conducted in partnership with Adaptix Ltd, the developer of a Flat Panel X-ray Source (FPS), and the University of Manchester.

 

UK Oil & Gas 0.1625p £20.27m (UKOG.L)

Further to its 23 July release, it has now successfully executed the participation agreement (i.e. farm in agreement) and the joint operating agreement with Aladdin Middle East Ltd (“AME”) for its 50% interest in the 305 km² Turkish Resan Licence  and the respective oil appraisal and exploration programme.

 Further to its successful 02 October equity raise, UKOG will now fund its agreed share of key initial preparatory operations so that the first oil appraisal well, currently planned as Basur-3, a surface location for which has now been chosen, can be drilled as soon as practicable in early 2021.

 Resan Licence:  material overlooked recoverable oil volumes

As reported on 23 July, Xodus Group Ltd’s (“Xodus”)June 2020 report calculates the Licence to contain materially significant recoverable discovered and undiscovered prospective resource volumes (see glossary definitions), with calculated aggregate mean and high gross cases of 43.4 million barrels (UKOG net 21.7 “mmbbl”) and 84 mmbbl (UKOG net 42 mmbbl) respectively, details of which are  shown in table 1.

 

KR1 12.75p £16.7m (AQSE:KR1)

The digital asset investment company, has invested a total of US$100,000 in the Moonbeam Network project. KR1 took part in Moonbeam’s seed funding round alongside Hypersphere Capital and HashKey Group and will receive a yet-to-be-determined amount of Glimmer (“GLMR”)  tokens that will power Moonbeam’s blockchain.

Moonbeam is an Ethereum compatible smart contract platform on the Polkadot network and is a new, powerful, scalable blockchain that makes it easy to build interoperable decentralised applications (“dApps”) that can integrate and run in parallel with other blockchains, including Ethereum and Bitcoin. The Ethereum compatibility allows developers to deploy existing Ethereum smart contracts to Moonbeam with minimal changes. As a Polkadot ‘Parachain’, Moonbeam will benefit from the shared security of Polkadot and integrations with other chains that are connected to Polkadot.

 

Simec Atlantis 23.2p £114m (SAE.L)

The global developer, owner and operator of sustainable energy projects announced the appointment of Duncan Black as a Non-Executive Director, with immediate effect, and the appointment of Stephen Hodges as Special Adviser to the Atlantis Board of Directors. The Company confirms that, further to the announcement on 27 July 2020, Ian Wakelin has now stepped down from his non-executive Board position.

 Duncan brings a wealth of experience in leading investment groups, advisory firms and power companies within the UK, Asia and Australia. Duncan has formerly held the positions of   Co-Head, Infrastructure Investment, at Eastspring Investments (part of Prudential plc), Asia Head of Acquisitions at Deutsche Asset Management, CFO of CLP Holdings’ Australian electricity and gas utility business, EnergyAustralia, and Head of Finance and Development at InterGen in Asia Pacific.

Having previously held the position of CFO of Atlantis, and a NED of the Board up until 2018,  Duncan has a deep understanding of the Company, while  his contacts and knowledge of the Asian power and infrastructure markets will allow Atlantis to pursue expansion opportunities presented by our project partners in Japan and South Korea.

Stephen is a waste sector specialist who most recently held the position of Director of Engineering at Viridor Waste Management Ltd. His knowledge of the UK waste and waste to energy sector will be very valuable to both the Board of Directors in his role as Special Advisor as well as to the Executive Management Team as a member of the Technical Committee.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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