Small Cap Feast

Small Cap Feast – 20 November 2020

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What’s Cooking in the IPO Kitchen?

Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test.   Offer TBC. Due early Dec.

PensionBee the  online pension provider , reported to be considering an IPO on the LSE in the Times at a valuation that could exceed £300m.

DrMartens, the iconic shoe brand is preparing for a £1bn initial IPO next year according to Sky News.

Conduit Holdings is a newly established reinsurance underwriting business focusing on producing strong risk adjusted returns from a diversified and focused business plan. The business has been formed to capitalise on what the Company’s founders, Neil Eckert and Trevor Carvey  believe to be an exceptional market opportunity. Raising $1.1bn. Due December

Helium One Global to join AIM. The Company, through its Tanzanian subsidiaries, holds a 100% interest in 18 licences (the Priority Licences) covering an area of 4,512km2 with an Unrisked Prospective Helium Resource (2U) of 138Bcf (SRK 2019). The Company has spent US$8.25m on exploration, assessment and related activity to date and is now drill ready. Capital to be raised on Admission: £6million. Anticipated market capitalisation on Admission £14.1 million (at the issue price of 2.84p). Due 4 Dec

Downing Renewables & Infrastructure Trust intends to raise up to £200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December

Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec

VH Global Sustainable Energy Opportunities plc, a closed-ended investment company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering  of shares on the Official List (Premium) of the Financial Conduct Authority and Main Market of the London Stock Exchange.  Due by Early Feb 2021

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). Due December

Schroders British Opportunities Trust is seeking to raise up to £250 million on the premium segment of the Official List . The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. £50 million to £2 billion equity value range with sustainable business models at attractive valuations. Due  1 December.

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.

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.


Breakfast Buffet

Pantheon Resources 32p £161m (PANR.L)

The quoted oil and gas exploration company with working interests of 89.2% – 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope, today announces the results of the Fundraise and Retail Offer which was announced yesterday.

Aggregate gross proceeds of approximately $30.2 million have been raised through the Placing, Subscription and Retail Offer at a price of 31 pence per Ordinary Share.  The Fundraise was significantly oversubscribed and the Company, having taken into account the strong support received from existing and new investors, decided to increase the size of the Fundraise and Retail Offer to $30.2 million. The further funds raised will allow the Company to drill and test all four zones at Talitha-A, and importantly now include drilling of a horizontal section into the Shelf Margin Deltaic sequence. In addition, proceeds of the Fundraise allow Pantheon to continue high grading its acreage position. The Board believes these initiatives will further strengthen the Company’s position in current and future farm-out negotiations.


Marlowe 545p £328m (MRL.L)

The specialist services group focused on developing companies which assure safety and regulatory compliance, announces that has signed a new, enlarged revolving credit facility with HSBC UK Bank PLC and National Westminster Bank PLC. The new facility replaces the Group’s existing £45 million facility and comprises a three-year, £70 million revolving credit facility and an additional accordion facility of £20 million. The enlarged debt facility will provide further resources to support the Group’s ongoing targeted acquisition strategy.


Mulberry 247p £148m (MUL.L)

The board of British luxury brand Mulberry notes the announcement released yesterday by Frasers Group plc and that:

  • following the acquisition of a further 4,335,720 Mulberry ordinary 5 pence shares, Frasers now holds interests in 22,121,948 Ordinary Shares, representing 36.82 per cent of the issued Ordinary Shares and contracts for differences relating to a further 27,489 Ordinary Shares;
  • due to a dispensation granted to Frasers by the Panel on Takeovers and Mergers under Note 5(b) on the Notes on Dispensations from Rule 9 of the Code, Frasers acquisition of additional Ordinary Shares does not give rise to an obligation for Frasers to make a mandatory cash offer under Rule 9 of the Code;
  • Frasers has reserved the right to make a voluntary offer for the Company and is now in a 28 day “put up or shut up” period in accordance with Rule 2.6 (a) of the Code


Genedrive 59p £33.3m (GDR.L)

The near patient molecular diagnostics company, announces the publication of the study data for the ‘Evaluation of the Point of Care Molecular Diagnostic Genedrive HCV ID Kit for the detection of HCV RNA in clinical samples’. The study was led by Dr Ekta Gupta at ILBS, New Delhi, India. The objective of the study was to determine the diagnostic accuracy of the Genedrive HCV ID Kit, as a confirmatory test for seropositive hepatitis C virus (HCV) patients in Indian demographic settings. The diagnostic accuracy of the Genedrive HCV ID Kit was evaluated by comparing the test with the Abbott Real time HCV test on the lab-based Abbott m2000 platform in an Indian demographic and across a range of different genotypes, to ensure suitability for introduction of the product to the Indian population. In India the circulation of HCV genotype is predominantly genotypes 3 and 1 with live infections of HCV estimated at between 6-12 million2.

150 HCV RNA positive and 170 HCV RNA negative samples were tested using both methods. The comparison revealed 100% sensitivity (95% CI 97.9 – 100%) and 100% specificity (95% CI 97.9 – 100%). The overall diagnostic accuracy was 100% (95% CI 98.9 – 100%). Overall, the study demonstrates that the Genedrive HCV ID Kit is suitable for use in India and can be used for decentralised testing of HCV thereby reducing the loss of patients to follow up.


ECR Minerals 1.95p £12.8m (ECR.L)

The gold exploration and development company focussed on Australia, updated on its activities in Victoria, Australia, which are carried out through the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd .

MGA has taken delivery of its new Cortech CSD1300G diamond drill rig and a new operational base is being established in Bendigo, Victoria.

All necessary permissions are in place for drilling at the HR3 prospect within the Bailieston project area, where drilling operations will commence as soon as the drill rig is ready.

Soil geochemistry and geological mapping completed at the Cherry Tree prospect in the Baillieston project area.


Fusion Antibodies 108p £27m (FAB.L)

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announces its unaudited interim results for the six months ended 30 September 2020 .

  • COVID-19 programme introduced as part of the Mammalian Antibody Library development project
  • Recruitment of a Director of Research & Development, and additional research scientist appointments
  • Trading for the period has been in line with the Directors’ expectations ·Continued improvement in revenues: H1 FY2021 revenues of £1.90 million (H1 FY2020: £1.75 million). R&D expenditure of £271,000, an increase of 50% on H1 FY2020 ·Losses held at same level as same period last year: H1 FY2021 loss of £0.47 million (H1 FY2020: £0.47 million loss) ·£3.0 million (gross proceeds) raised via placing of new ordinary shares ·Cash position at 30 September 2020 was £3.24 million (31 March 2020: £1.54 million)


ParkMead Group 28.5p £31.1m (PMG.L)

FY Jun 20 results from the UK and Netherlands focused independent energy group, with four business areas.

Strong financial position and robust producing assets, despite low gas price environment

  • Well capitalised, with cash balances of £25.7 million (US$33.4 million) as at 30 June 2020 · Total asset base increased by 9% to £89.8 million at 30 June 2020 (2019: £82.3 million) · Net assets increased to £71.3 million at 30 June 2020 (2019: £68.3 million) · Revenue for the period was £4.1 million (2019: £8.3 million), reflecting the record-low gas prices seen during the year · Net profit before tax and non-cash impairment charges was £0.8 million
  • Gas prices have since rebounded strongly to approximately €14.0/MWh in November 2020 · Parkmead’s Netherlands assets remain very low cost to operate, and were uninterrupted by the lockdown restrictions introduced by the Dutch Government in March · Netherlands gas production, plus benchmarking & economics consultancy, provides positive operating cash flow to Parkmead. · Parkmead maintains strict financial discipline with very low operating costs

Significant wind farm potential; high-grading of renewables portfolio underway.


Renold 12p £27.1m (RNO.L)

The  international supplier of industrial chains and related power transmission products, is pleased to announce the appointment of Andrew Magson to the Board as a Non-Executive Director with effect from 1 December 2020.  Andrew will also be appointed to the Audit, Remuneration and Nomination Committees. 

Andrew, aged 54, has significant experience in senior finance roles in multinational manufacturing businesses, most recently at The Alumasc Group plc where he was the Chief Financial Officer from 2006 to 2020. He qualified as a Chartered Accountant in 1992 with PwC before moving into industry at BPB Plc, where he became Group Financial Controller.


Block Energy 4.95p £22m (BLOE.L)

The exploration and production company focused on Georgia, updated regarding the Company’s previously disclosed acquisition of Schlumberger Rustaveli Company Limited. Block is pleased to announce that some amendments have been made to the sale and purchase agreement  with Schlumberger B.V.  that was announced on 26 March 2020 by way of an amendment and settlement deed, including the following:

  • Completion to occur on 23 November 2020, subject to certain conditions;
  • On completion, Block to take possession of approximately 29,000 bbls of crude oil inventory (the “Oil Inventory”); and
  • Schlumberger to enter into a transition services agreement with Block, to assist with the handover.


Trackwise Designs 310p £69m (TWD.L)

Trackwise Designs plc, a provider of specialist products using printed circuit technology, is  has conditionally raised gross proceeds of £11 million  at an Issue Price of 200 pence per New Ordinary Share. Additional open offer up to £1m. The net proceeds (after deducting the costs and expenses of the Fundraising), along with the Company’s existing cash resources are intended to be used to increase IHT manufacturing capacity, triggered by the recent EV contract win, future anticipated IHT demand and emerging Medical and Aerospace market opportunities. In addition, proceeds of the Fundraising will provide additional growth working capital.


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Derren Nathan
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