Small Cap Feast

Small Cap Feast – 27th February 2017

Dish of the Day:

LXI REIT has joined the Official List raising £138.15m at 100p. Yield play targeting minimum dividend of 5p for year beginning Apr 2018


Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo.

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Admission now due 7 March


Breakfast Buffet

InnovaDerma* (IDP.L) 133p £15.75m

The UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation,  has acquired the Intellectual Property and Assets of the ‘Stevie K’ (award winning, mid-premium priced, bold range of cosmetics) and ‘Charles + Lee’ (affordable alternative premium range of men’s skincare) brands. The purchase price for the Acquisitions is AUS$50,000, with the option to convert into equity. “Stevie K and Charles + Lee are an excellent strategic fit for InnovaDerma and we are pleased to have acquired such highly differentiated brands which the Board believes will bring considerable international growth opportunities. We welcome Kate Fissenden to the Company and look forward to working with her to drive profitable growth in the future.” Kate is the founder of both brands and will be responsible for the growth and development of both


Botswana Diamonds (BOD.L) 1.82p £6.18m

£525k placing at 1.5p with new and existing investors. The net proceeds of the Placing will be used to fund ongoing kimberlite drilling at the Frischgewaagt property in South Africa, drilling in Botswana, exploration work in South Africa and in the first stage of the 2017 Alrosa/Botswana Diamonds exploration programme in the Orapa and Gope areas of Botswana.

WH Ireland (WHI.L) 124.5p £34.22m

FYNov16 results from the financial services group that provides private wealth management and corporate broking services. Group turnover of £25.4m (2015: £30.9m). Operating loss of £1.3m before exceptional items (2015: profit of £1.1m). Exceptional items of £1.8m (2015: £1.2m). Cash reserves of £6.7m (Including post year end proceeds of property sale, cash reserves approximately £11m). Wealth Management: Assets under management increased by 14% to £2,872m. Corporate broking: Corporate clients 85 (2015: 98 clients). H2 saw a rebound in capital raisings environment. “Opportunities for acquisitive growth need to be identified and executed but we will focus significantly more activity in this area than in previous years. Our new shareholder also offers the potential for supplemental business growth for the Company both from, and to, the Middle East.”


InfraStrata (INFA.L) 0.68p £1.27m

The independent gas storage company, announced its intention to conduct a placing of new ordinary shares to raise a total of up to £750,000 before expenses. It is intended that the new ordinary shares will be issued at 0.5 pence per new ordinary share. The Placing will be conducted by way of an accelerated book build. The proceeds will be used to repay the Baron Oil Loan (£200k), for working capital and to complete the first phase of the Front-End Engineering Design  (FEED) project for the above-ground facilities and the sub-surface elements of its Islandmagee gas storage project.


ECR Minerals (ECR.L) 1.15p £1.49m

The Company has conditionally raised gross proceeds of £553,564  pursuant to a subscription by the Shenyang Xinliaoan Machinery Co Ltd for a stake of 29.9% at  2p. Proceeds to be used for drilling programmes in Australia and Argentina and working capital including review of potential new projects and business areas. Shares locked up for 12 months.


Union Jack Oil (UJO.L) 0.16p £5.28m

The Company has raised approximately £1.4 million gross at 0.135p. The Company, which is currently fully funded for its existing commitments, which include the drilling of the Biscathorpe-2 and Holmwood-1 conventional exploration wells, intends to utilise the proceeds of the Placing to increase its interests in existing licences within the Company’s portfolio. Management are working towards concluding these acquisitions in the near term.


Arsenal Holdings (NEX:AFC) £1725 £1.1bn

Announced HY Nov16 results on Friday. Turnover from football increased to GBP191.1 million (2015 – GBP158.0 million) with growth in broadcasting distributions at the start of a new three year     revenue cycle for the Premier League and an increased share of UEFA   Champions League market pool. The Club invested strongly in its playing squad. Higher player wages were the single largest contributory factor in the Club’s increased operating    costs whilst, in terms of transfers, the Club invested at record levels, adding GBP110.5 million to the cost of player registrations. PBT of £12.6m from £6.2m.


GlobalData (DATA.L) 582.5p £595.6m

FY Dec16 results from the data and insights solutions provider.    Group revenue increased by 65% to £100.0m. Deferred revenue increased by 57% to £46.1m. Adjusted EBITDA increased by 71% to £20.6m. Final divi up to 4p from 2.5p.  The results for the year include a full twelve-month contribution from our recent Consumer and GlobalData acquisitions, whereas the prior year comparatives include no contribution from the Healthcare acquisition (completed January 2016) and only a part year contribution from the Consumer acquisition (completed September 2015). Net debt flat at £25.4m.


Thor Mining (THOR.L) 0.75p £2.75m

HY Dec16 results. Pilot Mountain (USA): Regulatory approvals received for drilling programs at the Garnet tungsten target and the Desert Scheelite copper/tungsten target. Molyhil (Australia): Successful aircore drilling program testing anomalies adjacent to the Molyhil Tungsten Project provided impetus to apply for an additional licence area contiguous with one tested prospect. Dundas (Australia): Advanced planning for new drilling program at Dundas gold project. Detailed appraisal of a number of potential new projects, including a specific focus on mainstream commodities. £394k op loss and £588k FX gain. A$1.5mreceived post ear end from asset sale.


Starcom (STAR.L) 2p £3.06m

FYDec16 trading update from the specialist in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people. The Board expects turnover of not less than US$5.2m (FY 2015: US$5.1m). Growth in revenues from the new Watchlock Pro has been held back due to delays in deliveries by Mul-T-Lok. An order of US$200,000, originally planned for delivery in 2016, will now be shipped and recognised in the 2017 financial year. The Company has now addressed this problem to ensure that it can meet the demand in a timely manner. Expects $1.5m pre-tax loss. Expects improved performance in 2017.


Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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