Small Cap Feast

Small Cap Feast – 19 June 2020

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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.  


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Derren Nathan
0203 764 2344

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