Small Cap Feast

Small Cap Feast – 20 May 2020

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Breakfast Buffet

Renalytix AI 430p £256m (RENX.L)

The commercial-stage artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and lower healthcare costs, announces that its wholly-owned subsidiary, Renalytix AI, Inc. has entered into a joint venture with the Icahn School of Medicine at Mount Sinai, Kantaro Biosciences, LLC , to develop and scale production of COVID-19 antibody test kits.

 Highlights

  • Mount Sinai and Renalytix AI, Inc. form joint venture, Kantaro, to develop and scale production of covid antibody test kits
  • Kantaro has partnered with Bio-Techne Corporation (NASDAQ: TECH) for manufacturing and global kit distribution
  • Scaled kit production planned to enable clinical laboratories to conduct 10M tests per month beginning July

 

World High Life 8p £11.7m (AQUIS:LIFE)

wholly owned subsidiary, Love Hemp Ltd, has increased capacity for its LH Botanicals business with new machinery and technology to meet growing demand.

Established by the founders of Love Hemp, Tony Calamita and Thomas Rowland, the London-headquartered company, LH Botanicals provides a complete range of CBD products for wholesale, bulk and white label, with all products certified THC-free in customisable bottle sizes, concentrations, and flavours.

The Company has found that demand for LH Botanicals’ CBD products is continuing to rise and, as noted within the Company’s announcement on 7 May 2020, the Company has responded by increasing production capacity by acquiring a new capsule machine and a new bath bomb machine to extend its product offerings in an attempt to increase  market share further.

 

Bango 146.5p £109m (BGO.L)

The mobile commerce company, has successfully launched carrier billing routes in the Google Play store for new operators in Asia, Latin America and Africa. Millions of customers in Peru, Hong Kong and South Africa can now pay for the massive array of content and services in Google Play, charging the cost to their phone bill, all powered by the Bango Platform. 

In the space of six weeks, Direct Carrier Billing in the Google Play store has been enabled through the Bango Platform for subscribers of Entel in Peru, Sun Mobile in Hong Kong and MTN in South Africa. Pre and post-paid subscribers can now simply click-to-buy using carrier billing for instant access to their favorite games, music, movies and more.

 

Creo Medical 141p £222m (CREO.L)

The medical device company focused on the emerging field of surgical endoscopy, announces that it has signed a commercialisation agreement with the Department of Health and Social Care to provide NHS Hospitals with access to the Company’s CROMA Advanced Energy Platform and associated devices for use in Gastrointestinal  therapeutic endoscopy at preferential rates for a limited period.

The National Institute for Health Research  Invention for Innovation  Programme supported certain development projects that Creo undertook via a series of funding awards between 2010 and 2015, totalling close to £2 million. In accordance with the terms of such funding, Creo has entered into this commercialisation agreement, which is designed to aid the roll-out of CROMA and accompanying consumable GI devices in the UK. The agreement also provides for training for clinicians and nurses on the use of Creo’s suite of advanced energy surgery products.

 

Avacta 140p £291m (AVCT.L)

Avacta has entered into an exclusive distribution agreement with Medusa19 Limited for direct-to-consumer sales of a saliva-based rapid test for the COVID-19 antigen.

Avacta recently announced a partnership with Cytiva (formerly GE Healthcare Life Sciences) to develop a saliva-based rapid antigen test to indicate whether a person has the COVID-19 infection which will be in the form of a simple test strip. The test is intended to give a result within minutes and for use by both healthcare professionals and consumers.

The Group has agreed an exclusive distribution agreement with Medusa19 for the supply of the COVID-19 rapid test direct to consumers globally, subject to the necessary regulatory approvals. Medusa19 has been established by Richard Hughes and Mahmud Kamani, both founder shareholders of Boohoo.com and shareholders of Avacta1, to build a global consumer self-testing business. Medusa19’s initial focus will be on COVID-19 home testing and it is currently investing in global e-commerce, logistics and customer support infrastructure in preparation for Avacta’s COVID-19 test launch. Medusa19 will also have non-exclusive rights to supply the tests to businesses for workforce testing. The distribution agreement includes a profit-sharing arrangement.

 

VR Education 9.5p £18.35m (VRE.L)

The  virtual reality technology company focused on the education and enterprise training space, announces that HTC Corporation has agreed to invest EUR3.0 million (at 5.47p) in the Company and that HTC and the Company are entering into a strategic partnership for the distribution and license of the Company’s ENGAGE platform globally through HTC enterprise sales channels. 

HTC’s investment follows the success of the 2020 HTC VIVE Ecosystem Conference which was hosted on the Company’s ENGAGE platform in March 2020.

 

Mosman Oil & Gas 0.165p £1.9m (MSMN.L)

Mosman has today entered into a Contract for the sale of Welch with the US based Eagle Natural Resources LLC for US$300,000 (cA$460,000). 

A deposit of US$30,000 has been received, and the sale will be effective on receipt of the balance of the funds which is expected to take place within 30 days.

Whilst the Welch oil field is producing and has development potential, the ranking of projects in the Strategic Review identified better growth assets at Stanley and Greater Stanley. The capital from the sale of Welch will facilitate investment in these growth areas, as well as providing working capital at a time when cash flow is adversely affected by the low oil price.

The gross profit from operations at Welch project for the six months ending 31 December 2019 was A$264,619. In the 30 June 2019 Financial year Welch recorded a Gross Profit of A$166,229, and the carrying value of Welch at 31 December 2019 was A$500,000.

 

Tern 10.9p £30.9m (TERN.L)

Tern has used the approximately £1.1 million of cash flow loan monies outstanding from its portfolio company, Wyld Networks Limited as at 19 May 2020 to apply for the subscription of a secured convertible loan note (“CLN”) in Wyld of the same amount.  

Tern is also pleased to announce that Wyld has also signed an agreement with Highland Health Ventures Ltd (“HHVL”) to test and deploy its technology into certain care homes in Scotland with the aim of helping to protect and prevent the spread of COVID-19 and other viruses. HHVL is an independent company with a collaboration agreement with NHS Highland for the purpose of developing innovations in healthcare. 

Wyld’s technology is to be used to provide digital access and anonymised social distance monitoring and alerting through a mobile application and a mesh wireless network of connected smartphones and IoT devices.

 

Malvern International 0.225p £0.6m (MLVN.L)

The global learning and skills development partner, today announces that the Company is carrying out an equity fundraising to raise gross proceeds of approximately £1.17 million by way of a placing to raise up to £0.79 million and a subscription to raise approximately £0.38 million in each case at a price of 0.15 pence per share. The Issue Price represents a discount of approximately 61 per cent. to the closing mid-market price of 0.38 pence per Existing Ordinary Share on 19 May 2020.

 

AorTech 90p £14.6m (AOR.L)

The holding company of a group of medical device businesses focused on the exploitation of the world’s leading long-term implantable biostable polymer , announced that its subsidiary, RUA Medical Devices Limited, has successfully applied for, and been awarded, the maximum grant under a Scottish Government Covid-19 support scheme, The Pivotal Enterprise Resilience Fund (PERF)

RUA Medical has received a total of £150,000 of Government grant support through the Pivotal Enterprise Resilience Fund administered by Scottish Enterprise. This grant will be used to support the working capital and ongoing business needs of RUA Medical.

 

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Derren Nathan
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derren.nathan@hybridan.com

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