Small Cap Feast

Small Cap Feast – 19 June 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

The pantry is bare!

 

Breakfast Buffet

Learning Technologies Group 128p £946m (LTG.L)

AGM Statement: “”2019 was an excellent year for LTG, reflecting good organic momentum from cross-selling initiatives and investment in product development.  It was particularly pleasing to see our Content & Services business return to organic constant currency growth, as expected.  The highly complementary acquisition of Open LMS at the end of March 2020 has added expertise in Moodle, a market-leading Learning Management System, and we now look to further consolidate that market. “

LTG continues to see demand in line with management expectations.  It is in a strong and resilient position and is well-placed to further consolidate the digital learning and talent sector. We thank investors for their support for our recent equity fundraising.  This will enable the Group to capitalise on exciting acquisition opportunities as they emerge, as well as to capture the benefits of the acceleration of structural industry trends towards digital learning and talent management whilst maintaining a strong balance sheet. This underpins LTG’s ambitious medium-term goal, to achieve c.£230 million revenues and c.£66 million adjusted EBIT on a run-rate basis by the end of 2022.

Excluding gross placing proceeds of £81.8 million received in June, net debt at 31 May 2020 was £4.5 million.”

 

Kropz 8.5p £24.5m (KRPZ.L)

Further to the Company’s announcements of 10 and 12 June 2020, Kropz announces that it will extend further, for the final time, the latest time and date for receipt of completed Application Forms and payment in full under the Open Offer, or settlement of the relevant CREST instructions (as appropriate), from 11.00 a.m. on 19 June 2020 to 11.00 a.m. on 26 June 2020.

On 13 May 2020, Kropz entered into a conditional convertible equity facility of up to US$ 40 million (not exceeding a maximum of ZAR 680 million)  with the ARC Fund, the Company’s major shareholder. It now expects to make its first draw down of the Equity Facility during the course of the next week.

 

KEFI Minerals 0.956p £17.9m (KEFI.L)

Update regarding the Company’s Tulu Kapi Gold Project. Development and financing activities have been adjusted following recent operational and global events, and plans remain on schedule for project finance closure in October 2020, acceleration of construction in 2021 and gold production in 2022.

After inputs from all Project contractors, last week TKGM has now signed off all capital expenditure, operating and financing requirements as the final 2020 Tulu Kapi Plan. These detailed and comprehensive Project updates and revisions were within expectations and show a reduced overall Project funding requirement.

The senior secured financiers are fully engaged in achieving the timetable and the final details of the finance plan await confirmation of the level of commitment from Ethiopian institutional investors, which KEFI expects will be clarified later this month.

 

Agronomics 4.75p £15.8m (ANIC.L)

The Board of Agronomics confirms today that, having carefully reviewed different funding options, it has initiated a consultation process with shareholders of the Company regarding a possible de-listing of the Company from the AIM Market. The Board believes the de-listing from AIM together with a tender offer would be in the best interests of the Company and Shareholders.

The Board believes that it is important, considering that minority Shareholders may not either wish (or indeed be able) to hold shares in a private company, that the Company makes a tender offer to Shareholders to provide a partial or full cash exit prior to any proposed cancellation of its AIM listing. The intention is that the Tender Offer will be priced at six pence (£0.06) per ordinary share, with the amount of cash available under the Tender Offer to be determined following consultation with Shareholders.

 

Ncondezi Energy 3.5p £12.2m (NCCL.L)

General update on key developments at its integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique following the formal submission of an updated power tariff on 31 March 2020.

  • Following meetings with EDM, additional work requirements agreed upon and updated development programme submitted to EDM for approval 
  • Updated transmission integration study and Mozambican power market outlook study commissioned and targeted for completion in Q3 2020 
  • Allowing for the completion of the Independent Studies, finalisation of the tariff agreement is now expected to be during H2 2020 
  • Shareholders Agreement Term Sheet expected to be ready for signature in the coming weeks
  • International audit firm appointed by CMEC to undertake the historical cost audit. Work has commenced with completion targeted for Q3 2020
  • Engineering, Procurement and Construction contracts target signing in Q3 2020

 

LPA Group 70p £8.9m (LPA.L)

HY Mar 20 results. · Revenue increased 7% to £10.8m (2019: £10.1m) · Operating profit before exceptional items increased 28% to £0.23m (2019: £0.18m) · Profit before tax £0.2m (2019: Loss after exceptional item £0.2m)

  • Earnings per share 2.08p (2019: Loss 1.20p) · Interim dividend nil (2019: 1.10p) · Order book increased 29% to £24.7m (2019: £19.2m) · Order entry fell 8% to £14.2m (2019: £15.4m)
  • Gearing 25.6% (2019: 22.0%)

“The Group has significant opportunities to pursue, and, although customer demand remains fragile in some areas, confidence is slowly returning to the market and we look forward to increasing momentum over the coming 18 months.”

 

Warehouse REIT 111.25p £267m (WHR.L)

Results of the placing announced yesterday.  In light of the strong demand received, the Board has increased the size of the Firm Placing from up to £75.0 million to approximately £100.0 million. The Company is also seeking to raise up to a further £100.0 million in the Placing, Open Offer, Offer for Subscription and Intermediaries Offer. Issue price 110p.

Pipeline of investment opportunities identified amounting to approximately £346.0 million, of which over £123.0 million are in exclusive or final negotiations or have solicitors instructed and approximately a further £223.0 million are in detailed negotiations, including several with an e-commerce focus.

Once fully invested, the Issue is expected to be earnings accretive with improved income diversification.

 

Bezant Resources 0.105p £1.3m (BZT.L)

Conditional acquisition of 100% of Virgo Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia, and a £350,000 fundraising at 0.08p.

Hope Copper-Gold Project is in the Matchless Copper Belt in Namibia and has a 10.2 million tonnes JORC category grade of about 1.9% copper and 0.3 g/t of gold ( approx. 30% resource tonnage classified in the “indicated” Mineral Resource category with the balance in the “inferred” Mineral Resource category).

he net proceeds from the Placing and the Subscription will be used in relation to progressing the Company’s evaluation of the Kalengwa project in Zambia and geophysics and geochemistry in relation to the Hope Copper-Gold project, vendor consideration for the Acquisition and for the group’s general working capital purpose

 

Tiziana Lifesciences 97.5p £160m (TILS.L)

Tiziana Granted First-Ever Patent on a Transformational Technology for Oral Delivery of all Anti-CD3 Monoclonal Antibodies for Treatment of Human Diseases 

  • First-ever granted patent on oral administration of anti-CD3 monoclonal antibodies for immunotherapies
  • Transformational oral formulation technologies applicable to other antibodies

 

Mosman Oil & Gas 0.135p £1.5m (MSMN.L)

Update on the sale of the Welch Project in Texas.

Mosman entered into a contract for the sale of Welch with the US based Eagle Natural Resources LLC for US$300,000 (cA$460,000) and an initial non-refundable deposit of US$30,000 was paid, as announced on 20 May 2020.

The purchaser has sought and Mosman has granted a 14 day extension to the settlement on the basis that the Non-refundable deposit is increased to US$60,000 (cA$85,000) and this increased deposit has now been received. 

Full settlement of the balance is now expected to occur on 3 July 2020.  

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.