Small Cap Feast

Small Cap Feast – 17 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

Remote Monitored Systems 0.275p £1.82m (RMS.L)

RMS  has entered into an exclusivity arrangement and agreed outline non-binding heads of terms in respect of a potential acquisition of a company that operates in the fast growing medtech and biosecurity sectors.

The consideration for the proposed acquisition, should it proceed, is expected to be satisfied by the issue of new Ordinary Shares in the Company.  The acquisition is subject, inter alia, to the completion of mutual due diligence by both parties and there can be no certainty that a transaction will proceed

 

ClearStar 37p £13.45m (CLSU.L)

The provider of Human Capital Integrity℠ technology-based services specialising in background and medical screening, provides the following update on trading for the six months ended 30 June 2020 and the impact of COVID-19.

As previously announced, having entered 2020 with its highest ever order book and a healthy pipeline, the COVID-19 outbreak impacted the Company’s business due to the widespread job losses and freeze on recruitment. However, ClearStar experienced a significant uptick in revenue run rate from the end of May, which has continued throughout June and into July 2020. As a result, revenue for the first half was $8.9m (H1 2019: $11.6m). The Company is pleased to report that revenue for June 2020 was 74% higher than for April 2020 and returned to the same level of revenue seen in February 2020. The growth in revenue from May is primarily from financial institutions preparing for a return to normal employment levels, business staffing companies as well as an increase in demand for Medical Information Services.  

 

Xpediator 23.5p £33.3m (XPD.L)

Trading update for the six-month period ended 30 June 2020.  The trading period has, like most of the world, been influenced by the global COVID-19 pandemic. The Group maintained the transportation of essential goods across the UK and Europe during the initial COVID-19 lock-down periods, with the Group now seeing transportation volumes moving back towards pre-COVID-19 levels.

As announced at the time of the final results, trading in the first three months was slightly up on a like for like basis and whilst trading was impacted as a result of lockdown, the Group has performed robustly during the pandemic with steady recovery since April.   The Group’s trading has been assisted by the diversity of its European footprint and we have seen good performance in some of our Central and Eastern European countries that have not been as badly affected by the crisis. Activity in the logistics division has remained broadly stable and transportation services, after a natural period of reduced sales, are gathering momentum.

As a result, the business traded only marginally behind management’s original expectations for the six-month period to 30 June 2020.  

 

Wey Education 25.3p £35m (WEY.L)

The online educational services group  is pleased to update the market on current trading for the year ending 31 August 2020.

 Trading has continued to be very positive since the publication of the group’s interim announcement in May and is in excess of expectations.  Group turnover is expected to be in excess of £8m for the financial year ending on August 31, 2020, an anticipated growth of in excess of 30% from the previous year.

Group Profit Before Tax (after adjusting for share based payments and amortisation of acquired intangibles) is expected to exceed market expectations of £0.5m (2019:(£0.6m Loss)).

 

Goldstone Resources 7.15p £18m (GRL.L)

In line with progress towards commencing production at the Homase South Pit and construction of the associated heap leach facility, the Company has planned an additional infill RC drilling programme with the objective to increase the mineable resource at depth at the Homase South Pit, which is expected to commence shortly.

The proposed programme will seek to further define and extend the mineable resource down-dip at the Homase South Pit to a vertical depth of approximately 60 metres.  As defined in the DEP, the Homase South Pit is currently targeting the oxide resource to a vertical depth of 30 metres.  The programme will build on previous drilling completed by Goldstone in 2011-2012, which defined the Company’s existing JORC resource, and which indicated increased grades in this area of 1.4g/t to 2.5g/t below the weathered zone of 30 metres.

 

Metal Tiger 25p £38m (MTR.L)

The investor in natural resource opportunities, has subscribed for 7,142,857 new ordinary shares in Artemis Resources Limited  at a price of A$0.07 per share for an investment cost of A$500,000 .

The Investment forms part of Artemis’ A$5.6 million fundraise announced earlier today.  On completion of the Fundraise, Metal Tiger will be interested in 7,142,857 Artemis Shares, representing approximately 0.6% of Artemis’s then enlarged issued share capital.

Artemis is an ASX-listed (ASX:ARV) natural resource exploration and development company with a current focus on the Paterson and Carlow Castle gold projects in Western Australia. Mark Potter, Director and Chief Investment Officer of Metal Tiger, is Non-Executive Chairman of Artemis. For the half year ended 31 December 2019, Artemis reported net assets of A$54,173,585 and a net loss of A$8,051,108.

 

XL Media 26.5p £49.6m (XLM.L)

The global digital performance publisher, today announces it has completed a buy-out of the remaining interests of the founders in its premium website, 101GreatGoals.com .  The consideration is not material in the context of the Group.  The Company believes this simplified control structure will help accelerate the development of the Website in current and future geographies, including North America, where the opportunity is significant and growing.

101GreatGoals.com is a good example of the type of asset that XLMedia will concentrate on, as it consolidates and rebalances its publishing portfolio, with an emphasis on content-rich, highly engaging sites in regulated and high-potential markets.

In 2019, the vast majority of the Website’s revenue came from customer deals within the UK, while around 75% of the traffic to 101GreatGoals.com originated outside the UK.

 

Adamas Finance Asia 29p £29.8m (ADAM.L)

The Company focused on providing shareholders with attractive uncorrelated, risk adjusted returns from a diversified portfolio of pan-Asian investments, announced its open offer and placing , notice of General Meeting and proposed change of the Company’s name.  The Company is proposing to undertake an Open Offer and Placing to raise £ 3,134,710 at 25p. The Company will also issue one Open Offer Warrant with each share with an exercise price of 40.0 pence and an exercise period of 3 years from and including the date of issue.  The Company is also seeking shareholder approval to change its name to Jade Road Investments Limited.

The Company’s portfolio has undergone a transformation over the last few years and is seeking to establish an identity which more fully represents its pan-Asian small and medium-sized enterprise focus. Furthermore, the Board feels that this is an appropriate time for the Company’s name to reflect its Asian heritage while also acknowledging the wider investment scope which was adopted for its portfolio construction since May 2017. The Company’s new name reflects the spirit of connecting investors and capital from the West, across the Middle East and into the markets of the Far East.

 

Gattaca 49p £15.8m (GATC.L)

The UK’s leading specialist Engineering and Technology recruitment business, today provides the following trading update for the year ending 31 July 2020.

Summary

  • Trading during April, May and June 2020, reflecting the impact of the UK Government measures due to COVID-19, has been 41% below last year
  • Significant action taken to improve liquidity; the Group is now in a net cash position with strong working capital and liquidity. New covenants agreed with principal lender, HSBC, through to July 2021
  • The Group-wide Improvement Plan has been accelerated, with particular focus on improving sales impact and client service, and on cost reduction

 

Verona Pharma 68.5p £73m (VRP.L)

The clinical-stage biopharmaceutical company focused on respiratory diseases, announces it has raised approximately $200 million (£159 million) in an oversubscribed private placement and subscription with new and existing institutional and accredited investor at a price of $4.50 per American Depositary Share and equivalent price per Ordinary Share, being £0.45 or $0.5625.  Verona Pharma anticipates net proceeds of the Financing will be approximately $183 million after deducting placement agent fees and estimated expenses.  Verona Pharma intends to use the net proceeds from the Financing primarily to fund its Phase 3 clinical program ENHANCE (Ensifentrine as a Novel inhaled Nebulized COPD therapy) in chronic obstructive pulmonary disease (COPD) and for general corporate purposes. The Phase 3 clinical trials are planned to start later in 2020.

 

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

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