Small Cap Feast

Small Cap Feast – 24 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

Sareum Holdings* 0.95p £31m (SAR.L)

Encouraging results have been published for its small molecule dual tyrosine kinase 2 (TYK2) and Janus kinase 1 (JAK1) inhibitors in disease model studies of systemic lupus erythematosus (SLE) by its collaborator, SRI International.

These studies were supported by a research grant from the US Department of Defense (DoD) and the report was recently published on the website of the Defense Technical Information Center (https://apps.dtic.mil/sti/citations/AD1087498).The authors concluded that an approach using selective TYK2/JAK1 inhibitors may lead to the development of a therapy for lupus that does not involve the harmful side effects of systemic immune system suppression and may benefit numerous lupus patients in need of new options. They also noted that the results could influence treatments of other autoimmune diseases such as arthritis and psoriasis.

Specifically, it was reported that treatment with TYK2/JAK1 inhibitor SAR-20351 (now known as SDC-1802) reduces autoantibodies (biological markers of lupus severity) in a spontaneous mouse model of SLE. The data also provided evidence that SAR-20351 inhibits cytokines that play a critical role in lupus, including interferon-alpha, IL-6 and IL-23. The inhibition of IL-23 signalling by SAR-20351 may play a role in the decrease of autoantibodies in the lupus mouse model, as IL-23 signalling drives the differentiation of Th17 cells, which leads to autoantibody production and are pathogenic in lupus.

 

Nucleus Financial 132p £101m (NUC.L)

The independent wrap platform provider, today publishes an update on its assets under administration (AUA) in respect of the three months to 30 June 2020.

Despite the impact of Covid-19 on market volatility, the Company has continued to grow AUA, which stood at £15.8bn as at 30 June 2020, up 13.1% on the previous quarter and 3.2% year-on-year. By comparison, the FTSE All-Share Index increased 9.8% on the last quarter and fell by 15.9% year-on-year.

 

Renold 10.65p £24m (RNO.L)

AGM Statement from the international supplier of industrial chains and related power transmission products. Group performance during the first Quarter has remained in line with the Company’s Results Statement issued for the year ended 31 March 2020. Renold has been profitable and cash generative in each month of the first Quarter of the new financial year. Whilst Group order intake has reflected the challenging market conditions, gradual improvements have been seen since April 2020.

It is still too early to give specific guidance for the year ahead. However, with the strategic actions and cost saving measures taken to date, the Board is confident that the Company can manage through the current period of disruption. Renold is well positioned to benefit as markets stabilise and demand recovers.

 

Hotel Chocolat 290p £364m (HOTC.L)

  • Revenue of £136 million, an increase of 3 per cent compared to the 52 weeks ended 30 June 2019: Revenue of £136 million, an increase of 3 per cent compared to the 52 weeks ended 30 June 2019:          Revenue of £136 million, an increase of 3 per cent compared to the 52 weeks ended 30 June 2019:

                       o           In the first half of the year, Group sales of £92m were an increase of 14 per cent year-on-year.

o In the second half of the year, Group sales of £45m were a decline of 14 per cent year-on-year.

  • All UK physical locations were closed for a period of 12 weeks from 22 March to 15 June. This period coincided with Easter and Mother’s Day, All UK physical locations were closed for a period of 12 weeks from 22 March to 15 June. This period coincided with Easter and Mother’s Day, All UK physical locations were closed for a period of 12 weeks from 22 March to 15 June. This period coincided with Easter and Mother’s Day.
    119 of 125 UK locations are currently open for business. Sales in “High Street” locations are performing more strongly than in city centre commuter locations.

 

Tissue Regenix Group 0.335p £23.56m (TRX.L)

The regenerative medical devices company, announces that following the recent completion of its successful fundraising, the Company has commenced the first phase of its planned manufacturing capacity expansion programme in San Antonio, TX, which represents a key element of the Group’s commercial development plan. 

The expansion programme will be split into several phases. The first phase is expected to take approximately six months to complete and will include the development of operational capabilities in the new 21,000sq.ft building to house freezers and distribution functions that will free up space for additional sterile packaging clean rooms to be built in the existing facility.

 

Thor Mining 0.385p £4.94m (THR.L)

Additional positive results from the initial hydrogeological drilling program at the Kapunda ISR (Insitu Recovery) copper project carried out by EnviroCopper Limited.  HIGHLIGHTS:

  • The hydrogeological testing program was successful, with the tracer test showing fluid movement from well to well in a relatively short time period, providing potential for cost saving through reducing the number of wells for optimum production.
  • Laboratory assays confirm previously reported portable XRF results along with some elevated gold levels.
  • Groundwater is acidic (pH 3.8 – 4.0) with naturally elevated copper levels, indicating potentially lower expected pre-conditioning operating costs, and demonstrating that the copper is highly soluble.
  • Laboratory testing to date shows several lixiviant systems suit the natural low pH environment, minimising likely impact on environment & microorganisms.
  • Initial laboratory scale metal recovery tests – Ion Exchange, Electro Winning and Cementation all produce copper.

 

Sativa Group 3.125p £17.8m (AQSE:SATI)

CBD wellness and medicinal cannabis company, is launching a new Goodbody Wellness CBD and Vitamin D product range.

The brand positioning has been strengthened with its increased product range and the additional benefits associated when combining CBD with Vitamin D.

Henry Lees-Buckley, Chief Executive Officer of Sativa, said: “A report recently commissioned by the government encourages consumers to take Vitamin D to help fight coronavirus and prepare for this winter. Our new Vitamin D product range offers an easy solution to taking CBD and Vitamin D, all in one bottle”.

 

Creo Medical 204p £321m (CREO.L)

The medical device company focused on the emerging field of surgical endoscopy, announces the acquisition of Albyn Medical S.L., a European specialist in the supply and manufacture of Gastroenterology, Urology and Endoscopy products to healthcare providers, for an equity value of 24.8m plus up to 2.7m of performance related consideration payable over the next two years.  Albyn Medical reported PBT of €1.7m and EBITDA of €2.4m for the year ended 30 September 2019. As at 30 September 2019, Albyn Medical had gross assets of €15.4m

 

Naked Wines 411.25p £300m (WINE.L)

John Walden has informed the Board of his intention to step down as Chairman of the Group and leave the Board after the Annual General Meeting on 6 August 2020 due to personal reasons. Ian Harding, Senior Independent Director, Chair of the Remuneration Committee   and Non-Executive Director (NED) , will be appointed as Chairman until Ian’s scheduled retirement from the Board in the summer of 2021.   The Group continues to trade strongly, with total sales in June +67% vs the prior year, bringing sales growth for the first quarter to +77%.

The Board continues to believe that Naked is ideally positioned to be a long-term winner from the inflection in consumer demand for online wine as a result of the Covid-19 pandemic. Uncertainty as to the extent and duration that current trading conditions will persist means that the Group is not providing full guidance for the financial year, but it will keep the market updated on its trading performance as appropriate.

 

Shoe Zone 68p £34m (SHOE.L)

Further to the announcement of 3 July 2020, Shoe Zone PLC is pleased to announce that Peter Foot has now been appointed to the Board of Shoe Zone as Finance Director. Peter brings over 25 years of industry experience to the Board and previously held the Finance and Operations Director position at T&A Footwear Limited, where he delivered margin improvement, sales growth and cost savings. In addition, Peter spent 9 years in the FD role at Stead and Simpson Group, the footwear retailer. Peter has also held interim FD roles at Food Utopia, A.T Cross, NJ Screen Prints and is already familiar with the Shoe Zone team having previously held the position of Finance Director between 1996-1998. Peter is an ACA, having qualified with Price Waterhouse.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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