Small Cap Feast

Small Cap Feast – 16 November 2020

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Off the Menu:

Bank Audi has delisted its GDRs from  the London Stock Exchange main market.  The Shares of the Bank represented by the GDRs, as well as the GDRs, will continue to be listed and traded on the Beirut Stock Exchange.

 

What’s Cooking in the IPO Kitchen?

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem).  FY20 gross profit of £79.2m (+24.5% against FY19) and adjusted operating profit of £31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

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 ).    Due  November.

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

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. 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.   Targeted for Q4 2020.

Press reports emerged late last week that cybersecurity firm Darktrace is targeting a float next year with a US$5bn valuation. The company uses artificial intelligence technology to spot cyber threats for businesses. Some of its clients include BT Group, William Hill and online shopping giant Ocado. Its investors also include KKR & Co, Vitruvian Partners and Summit Partners. Targeted for  2021.

 

Breakfast Buffet

Symphony Environmental Technologies* 23p £40.7m (SYM.L)

The global specialist in technologies to enhance the properties of plastic and some non-plastic products,  announced the launch of SYMFresh, a new reusable press n’ seal fruit and vegetable bag.  The SYMFresh bags have been developed to keep climacteric fruit and vegetables fresher for longer.   Climacteric fruit and vegetables release ethylene gas when placed or packaged in a plastic bag which causes accelerated ripening and decay of fruit and vegetables. This maturation can alter the colour and texture of the produce, effectively shortening the shelf life.

The new SYMFresh bags have been made with Symphony’s d2p ethylene adsorber technology, a microporous structure which adsorbs and traps the ethylene inside the film, delaying ripening and regulating moisture, to slow down the drying out process. By conserving the nutritional qualities, crispness and flavour of the fruit and vegetables, SYMFresh bags are proven to extend the shelf life of such produce by up to 40%.

According to figures produced by WRAP (Waste and Resources Action Programme) an estimated one third of all food produced globally goes to waste. The UK alone wastes approximately 6.6 million tonnes of food annually with households accounting for 70% of this figure, and 34% of this wastage consisting of fruit and vegetables. Food waste is not just a humanitarian problem but is also an environmental one.  Rotting food generates methane, a powerful greenhouse gas, 25 times   more potent than carbon dioxide, and 11% of methane emissions come from food. For further information a dedicated website with video link has been launched at https://www.sym-fresh.net/

 

Phoenix Copper 40p £25.3m (PXC.L)

The  North American-focused base and precious metals exploration and development company, announced the publication of the independent report “Geologic Mapping and Structural Analysis in the North Pit Region, Mackay Mining District”  focusing on the Red Star silver project (“Red Star”) by David W. Rodgers, Ph.D., Consultant Structural Geologist to Phoenix.

 –  The Report confirms the potential of further high-grade silver and lead at Red Star

– The Report confirms the likely extension of Red Star through to the historically mined high grade Horseshoe and White Knob claim blocks

– The Report highlights the association of high-grade silver mineralisation with the magnetite-bearing skarn formation, thus allowing a magnetic geophysical survey to optimise an ongoing targeted drilling programme

 

Oracle Power 0.7p £14.6m (ORCP.L)

The natural resources and power project developer, announced the acquisition of two highly prospective gold projects in Western Australia.  The acquisition of these assets, which are both located in world class gold mining districts, advances the Company’s strategy to become an international developer of high quality natural resources and power projects, offering investors exposure to multiple commodities and value trigger events.

The Northern Zone Project is located 25km east of the major gold mining centre of Kalgoorlie, the home of the ‘Super Pit’ mine, the second largest gold mine in Australia. Multiple significant drill intercepts recorded from historical drill programmes conducted by Northern Mining Limited, with some of the more notable intercepts including:

  • 9m @ 5.06 grams per tonne gold – hole BNRC017 · 1m @ 39.82 g/t Au – hole BNRC033 · 3m @ 3.72 g/t Au – hole BNRC067 · 2m @ 23.27 g/t Au and 40m @1.2 g/t Au – hole BNRC069 · 6m @ 2.12 g/t Au and 2m @ 12.98 g/t Au – hole BNRC051 · 3m @ 3.72 g/t Au – hole BNRC067 · 30m @ 1.5 g/t Au – hole BNRC081 · 217m @ 0.51 g/t Au – hole BNRC066 · 28m @ 0.84g/t Au and 48m @ 1.65g/t Au (including 4m at 7.7g/t Au) – hole BNRC095

The Jundee East Project is located about 9km east of Northern Star’s Jundee Gold Mine, one of Australia’s largest gold mines. Potential new buried greenstone belt identified from gravity modelling, highlighting prospective new target areas for gold exploration at Jundee East very close to one of Australia’s Tier 1 gold mines

 

Botswana Diamonds 0.775p £5.6m (BOD.L)

  • All pre-conditions for acquisition of Sekaka Diamonds now satisfied
  • Completion expected on or around 20th November 2020
  • Sekaka owns: –  The high grade KX36 kimberlite pipe –  Three Prospecting Licenses, one of which has been extended

–  A fit-for-purpose kimberlite processing plant –  An extensive diamond exploration database

 

TomCo Energy 0.475p £3.2m (TOM.L)

The US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that:

  • It has raised £3,500,000 (gross) by way of a placing at a price of 0.45 pence; and
  •       the Company’s 50/50 joint venture with Valkor LLC , Greenfield Energy LLC , has entered into a multi-site licence with Petroteq Energy Inc for the use of its closed loop system for use in the recovery of oil from oil sands the Oil Sands Technology.

 

Restore 355p £446.1m (RST.L)

The UK document management, commercial relocation and IT recycling business, announced that the Group’s Datashred business unit has won ‘Paper Recycling Business of the Year’ at the prestigious Awards for Excellence in Recycling and Waste Management 2020.

The award highlights that Datashred’s UK-wide, sector-leading customer service (as per Trustpilot), combined with the communications and detailed reporting, which allows its customers to manage their own sustainability and environmental footprint, have positioned the Group as the best in the sector.

 

Venture Life 101.5p £85.3m (VLG.L)

The specialist  in developing, manufacturing and commercialising products for the self-care market, announced on 24 August 2020 its involvement in a UK-led clinical trial, with one of its key oral care brands containing the powerful Cetylpyridinium Chloride (CPC) technology, on those affected with COVID-19. This independent, multi-centre clinical study, led by Professor David Thomas at Cardiff University, investigates the possibility that using over-the-counter mouthwashes containing CPC could help to reduce the viral load of COVID-19 in the mouth. 

Today, the Company provides an update on the recently published n-vitro results from a separate, independent laboratory study undertaken at Cardiff University by Dr Richard Stanton and his colleagues.

In their published in-vitro study, scientists at Cardiff University concluded that Venture Life’s two CPC based mouthwashes eradicated the SARS-CoV-2 (COVID-19) virus completely (>5log reduction, equivalent to 99.999%) within a 30 second exposure. The virus was supplied by Public Health England, unlike other similar studies reported in the media, which have not used the relevant COVID-19 virus, but a related strain of it.

 

DeepVerge 22.5p £35.14m (DVRG.L)

DeepVerge has commenced deployment of near-source wastewater contamination test equipment (Microtox PD) into water treatment plants in Ireland, with first shipments to China and the US expected by year-end. Microtox PD units, retrofitted with AI based optofluidic pathogen identification scanners, are also being shipped to the University of Aberdeen CAT3 laboratory, adding to the ongoing trials with the live SARS-CoV-2, supplied by Public Health England.

In addition, DeepVerge has agreed to license a patented breathalyser from PulMoBioMed Limited (PBM), a spin-out technology company of Northumbria University, to capture SARS-CoV-2 particles in breath condensate for the DeepVerge optofluidic breath test (Microtox BT).

Phase 3 field trials are expected to begin shortly at multiple sites in Northern England.  In collaboration with EcoWaterOS consortia partners, aggregated anonymised data will provide datasets for AI model simulations from human volunteers who will undergo COVID-19 testing with a combination of Microtox BT, a lateral flow antigen test and a rt-PCR test.  Sufficient datasets are anticipated to be complete early in 2021.

 

DP Poland SUSPENDED (DPP.L)

In connection with the possible acquisition of the entire issued (and to be issued) share capital of Dominium S.A. ( a Polish pizza restaurant group) it has been mutually agreed that Iwona Olbrys, Chief Executive Officer, will be leaving the Company. Iwona has resigned from the Board of Directors with immediate effect.

It is the intention of the Company to propose the appointment of a new CEO, who has been identified, on the publication by the Company of an admission document in connection with the Acquisition.  The Acquisition will be subject to the necessary shareholder and regulatory approvals.

Pending a further appointment, Nick Donaldson, Non-Executive Chairman, and Rob Morrish, Non-Executive Director, will continue to have a more active role in the running of DP Poland’s  business. The board of DP Poland thank Iwona for her valuable contribution during her tenure at DP Poland and wish her every success for the future.

DP Poland, through its wholly owned subsidiary DP Polska S.A., has the exclusive right to develop, operate and sub-franchise Domino’s Pizza stores in Poland. There are currently 69 Domino’s Pizza stores, 46 corporately managed, (2 of which are under management contract) and 23 sub-franchised.

 

eEnergy Group 10.65p £15.2m (EAAS.L)

“Energy Efficiency-as-a-Service” (EEaaS) business in the UK and Ireland, announced its largest ever single contract. 

The Group’s subsidiary, eLight U.K, secured the £1m contract to install LED Lighting at four schools for a UK multi-academy trust. The revenue will be recognised as the projects are installed, which is expected to be completed by 31 December 2020.

This contract win further underpins the Board’s revenue growth expectations for the current financial year to 30 June 2021, and the Board continues to expect the Group to achieve breakeven profit after tax (before exceptional items) for the six months ended 31 December 2020.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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