Small Cap Feast

Small Cap Feast – 27 July 2020

Dish of the Day:

Revolution Bars (RBG.L) has moved from the Main Market to AIM.


Off the Menu:

No Leavers Today


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

Location Sciences 0.475p £2.7m (LSAI.L)

HY Jun 20 trading update. Unaudited revenues (including X-Mode securitisation) for the six months ended 30 June 2020 are expected to be approximately £0.65 million, an increase of approximately 43% on the corresponding period last year (H1 2019: £454,872) with core revenues (excluding X-Mode securitisation) of approximately £0.46 million, which is slightly ahead of H1 2019 despite the impact of COVID-19.

To mitigate the impact of COVID-19, the Company’s directors implemented a cost reduction programme and report this has seen cash administrative expenses being reduced to approximately £0.95 million for the period (H1 2019: £1.11 million), a reduction of 15%. This in turn has led to an improved adjusted cash EBITDA loss of approximately £0.68 million in the period, a decrease of approximately 17% compared to 2019 (H1 2019: EBITDA loss £0.82 million).


Powerhouse Energy 3.625p £127.4m (PHE.L)

The UK technology company commercialising hydrogen production from waste plastic, announced the appointment of Allan Vlah as a non-executive director of the Company with immediate effect.

With twenty years’ experience in the investment industry, Allan is a director in Aviva Investors’ infrastructure group where he started and continues to lead Aviva Investors’ Energy from Waste equity strategy.

Prior to joining Aviva Investors in 2012, Allan was a vice president at the Macquarie European Infrastructure Fund with a focus on transportation and renewable energy. He was previously a research analyst and portfolio manager covering energy and infrastructure trusts for TD Waterhouse Investment Advice.


Immupharma 15.025p £27.5m (IMM.L)

The specialist drug discovery and development company, announces an important regulatory milestone in preparation for the new optimised international Phase III trial of  Lupuzor™ for systemic lupus erythematosus  a potentially life-threatening auto-immune disease.


ImmuPharma’s licensing partner for Lupuzor™, Avion Pharmaceuticals LLC , has submitted a Special Protocol Assessment (“SPA”) request to the US Food & Drug Administration .  SPA is a process in which sponsors reach agreement with the FDA on the design and size of clinical trials such that they adequately address scientific and regulatory requirements for a study that could support marketing approval. The previous Phase III clinical trial of Lupuzor™ in SLE was also carried out under ImmuPharma’s SPA. The review period for an SPA request is up to 45 days.


Hurricane Energy 6.06p £120.7m (HUR.L)

Thee UK based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, provides an update on the Lancaster Early Production System .

Commissioning of the Electric Submersible Pumps  has been completed successfully on both Lancaster EPS producing wells. Following the successful ESP commissioning programme, the 205/21a-6 well has been returned to natural flow, while the 205/21a-7z well will continue being produced using an ESP.

Following the Company’s most recent update on 8 July 2020, a period of ESP testing has seen Lancaster EPS production increase from c.15,000 bopd to c.17,000 bopd as oil and water production from the 205/21a-7z well has stabilised .


Oilex 0.11p £4.2m (OEX.L)

Substantial progress has been made towards the Company’s strategic objective to regain a participating interest in the West Kampar PSC in Indonesia, which is expected to lead, subject to financing, to recommencing production from the Pendalian Oilfield. 

Following various meetings and correspondence with the Government of Indonesia (GoI) and with the support of a local Indonesian partner, the GoI has advised that our Proposed Direct Bid, through the Joint Study of the West Kampar Region, is declared administratively complete and have recorded it as a proposal for a Direct Offer through a Joint Study as stipulated in ESDM Regulation No. 35 of 2008.

 This confirmation from the GoI, which is exclusive to Oilex, provides a pathway to conduct the Joint Study on the proposed development of West Kampar which will then provide certain preferential rights in the ultimate award of the West Kampar PSC by the GoI.  Oilex’s interest in the study and ultimate potential award of the PSC will be on a 50-50 joint basis with its local Indonesian partner, PT Ephindo.


Cora Gold 10.5p £20m (CORA.L)

The West African focused gold company, announced the discovery of a new 1.5km gold zone at its flagship Sanankoro Gold Project in Mali.  This follows results from a reconnaissance aircore drilling programme at the Bokoro II permit , which borders the Sanankoro permit to the East.  The objective of this reconnaissance exploration was to test for new zones of potentially near surface economic gold mineralisation within a 5km radius of the main focus of the existing Sanankoro deposits. Many similar targets remain to be tested.

  • Results include:

o  8m @ 7.4 g/t Au in hole BC0057 ▪ Including 2m @ 27.1 g/t Au    7m @ 1.3 g/t Au in hole BC0020   7m @ 1.5 g/t Au in hole BC0011  3m @ 1.14 g/t Au in hole BC0071   2m @ 2.6 g/t Au in hole BC0074


Sabien Technology SUSPENDED (SNT.L)

Following the announcement on 20 January 2020 regarding the possible acquisition of Ptarmigan Health Destinations SA, the Company’s shares were suspended from trading on AIM with immediate effect. This is because the transaction would be classified as a reverse takeover in accordance with the AIM Rules for Companies. Under the AIM Rules, the Company has six months from the date of suspension to publish an admission document setting out, inter alia, details of the proposed transaction or confirm these discussions have ceased. If neither of these outcomes is achieved, trading in the Company’s shares will be cancelled.

Due to market impact of Covid-19 the Company has been granted an extension from six to twelve months from 20 January 2020 for publishing such an admission document or to confirm discussions concerning a transaction have ceased.


Mission Group 58p £52.3m (TMG.L)

Acquisition of Innovationbubble, the international psychological insights and behavioural solutions consultancy. 

Innovationbubble will sit at the heart of the Group’s business model, extending the expertise and capabilities that it provides to its global network of Agencies through the ‘MISSION Advantage.’ The consultancy provides research and advice to a growing portfolio of clients from blue-chips including Asda, Aviva, HSBC and a number of leading pharmaceutical businesses, to high profile brands such as Diesel and SpaceNK, helping them better understand what drives the behaviour of their customers and ultimately how to improve marketing activity.


Van Elle Holdings 31.5p £33.6m (VANL.L)

Van Elle Holdings plc, the UK’s largest ground engineering contractor, announces that since its most recent update on 4 June 2020, the Group continues to trade slightly ahead of the mid-case scenario outlined in the announcement of its equity fundraising on 9 April 2020.  Group liquidity remains strong and its cash position as at 24 July was c. £10.0m having paid £2.0m of deferred PAYE payments to HMRC.


Panther Metals 7.4p £3.9m (PALM.L)

Acquisition of 135 mining claim cells, increasing the total area of the Dotted Lake Gold Project by 346%. The Dotted Lake property is approximately 16km north of Barrick Gold Corporation’s renowned Hemlo Gold Mine.

  • New claims extend Panther’s coverage of the prospective Dotted Lake pluton geological contact up to 7km. Historical sampling of shears associated with this contact have yielded samples up to 16.95 g/t Au. Historic drill intersections near to the licence area include 8.2g/t Au and 3.2g/t Au,  2.9% and 1.1% Cu.

  • Preliminary analysis shows there are multiple gold and base metal targets within the targets within the enlarged project area. Including known hosted massive sulphide mineralisation, banded iron formations and shear hosted gold veining.


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Derren Nathan
0203 764 2344

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