Small Cap Feast

Small Cap Feast – 15th August 2016

Dish of the Day:

No Primary Today

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m

Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap

Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September

Autins Group plc – The acoustic and thermal insulation specialist now looks to join AIM late August


Breakfast Buffet

Milestone Group* (MSG.L) 0.55p £4.04m

The provider of digital media and technology solutions, on Friday  announced that its subsidiary, Nexstar has signed a cooperation agreement to provide NaPo Limited with a white label version of its Backstage HD digital platform and money over IP financial platforms.

Earlier in the month Milestone announced a £506k placing at 1p, a significant premium to the prevailing share price.


Pennant International (PEN.L) 63p £16.7m

The supplier of integrated logistic support solutions, products and services has announced an oversubscribed fundraising of up to £3.56m at 55p, a 12.7% discount to the close on 12 August.

The funds will be applied to working capital in the light of two major projects valued at over £13m. The shares trade on 8.9x current year earnings.


Europa Oil & Gas (EOG.L) 4.63 p £11.3m

The oil and gas exploration, development and production company focused on Europe, has completed the acquisition of Shale Petroleum (UK) Limited for a nominal consideration of £1.  As consequence of this acquisition Europa has increased its equity interest in PEDL299 and PEDL343 exploration licences awarded in the 14th UK Landward Licensing Round to 33.32% and 45.0% respectively.


Nasstar (NASA.L) 8.6p £33.2m

The industry focused managed IT specialist has announced the acquisition of Modrus Limited, a UK-based provider of per user Hosted Managed Services, on a cash free / debt free basis for £13.0m comprising: £11.7m in cash; and £1.3m in new Nasstar equity. To be funded by a £13.3m placing at 7.5p, a 13% discount to Friday’s close. Expected to be modestly earnings enhancing in the first full financial year following Completion. Modrus turned over £6.1m in FY Mar 2016.


Thor Mining (THR.L) 1.58p £m

Thor Mining announced a new drill campaign designed to confirm the close proximity of additional tungsten mineralisation within a six kilometre radius of the Company’s existing Molyhil tungsten deposit in the Northern Territory, Australia.  50 hole drill programme designed to test bedrock through shallow alluvial cover;  The low cost programme, estimated at less than A$100,000 is expected to commence in late-August 2016.


Uvenco (UVEN.L) 7.75p £5.8m

The national vending machine operator offering a full service throughout the UK and Ireland entered into an agreement to settle the Group’s £2.4 million outstanding bank facility for £1.0 million, payable in cash, and entered into a £1.3m facility with Reward Invoice Finance Limited, part of the Reward Finance Group, a Manchester and Leeds based alternative lender, in order to provide the funds to satisfy the bank facility settlement, as well as additional working capital.


AorTerch International(AOR.L) 28 .25p £1.57m

FYMar16 results from the biomaterials and medical device IP company. Group revenue increased by over 5% from previous year to US$901k. Net trading profit of $128k (2015: US$96k profit)· Operating loss after charging $312k in amortisation of intangible assets and $369k in bad debt provisions. The principal disappointment of the past year has been the requirement to provide for sums of money contractually due to AorTech.


Nakama Group (NAK.L) 1.85p £2.18m

FYMar16 prelims from the recruitment consultancy working across the UK, Europe, Asia, USA and Australia providing staff for the Web, Interactive, Digital Media sectors, IT and Business Change. Net fee income up 8%. to £5.73m. Pre-tax breakeven. Trading in the first quarter has been in line with internal expectations and Board targets. Despite uncertain political backdrop  views 2017 as a year in which Nakama can develop organically whilst keeping acquisitive options open.


Edenville Energy (EDL.L) 0.02p £2.19m

The Company developing a Coal to Power Project in south west Tanzania  has announced that the Tanzanian Government expected to implement a ban on coal imports into Tanzania. Possible near term production and supply opportunities exist for Edenville.  Edenville’s Rukwa Coal Project well positioned to move rapidly to production


Sunrise Resources (SRES.L) 0.22p £2.46m

The diversified mineral exploration and development company has updated on its industrial mineral projects in Nevada: County Line Diatomite Project — Evaluation work in progress – Project permitted for several drill holes and a programme of trenching. EP Minerals has paid project claim fees for the year beginning 1 September 2016.  Pozzash Project— Initial concrete tests completed – confirms pozzolan potential. Further mineralogical & process testwork underway.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.