Small Cap Feast

Small Cap Feast – 28th November 2016

Dish of the Day:

No AIM Joiners Today

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

Warpaint London—Schedule one update. Raising £2.5m at 97p. Expected mkt cap £62.6m vs revenues of £22.3m

Walls & Futures REIT — Has raised £1m at £1 to acquire, refurbish or develop residential properties in the UK . Due to arrive on ISDX on 29 November

Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December.

Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.


Breakfast Buffet

Metal Tiger (MTR.L) 1.95p £12.89m

The independent Directors of Metal Tiger will not be recommending last week’s offer from BMR Group of 0.231 BMR shares per MTR share on the basis that it fundamentally undervalues the Company. The Independent Directors recognise that there are synergies between the Companies that could benefit Metal Tiger and its shareholders and, in the event that a significantly improved indicative offer is received from BMR, they confirm that they are willing to enter into negotiations with BMR after the results of the scoping study in Botswana have been announced.

Rosslyn Data (RDT.L) 9.38p £7.1m

Trading update (H1Oct16) from the provider of a cloud-based enterprise data analytics platform. The Company has continued to trade positively and build on its foundations of growth.  Most notably it has added a further FTSE 100 and a Fortune 100 client, whilst continuing to expand its footprint in its current client base and expand its Partner program.  Both the average and lifetime contract value is trending upward, now being more than 50% greater than at the IPO at over £75,000 per annum.  FYAPR17E rev of £5.3m. £0.7m pre-tax loss.

Market Tech Hldgs (MKT.L) 137.5p £646.53m

Market Tech, which owns, manages and is developing a unique 16 acre estate of office, retail, leisure and living spaces in London, including the iconic Camden Markets, announced that it has signed two leases with British footwear icon Dr. Martens, which is to open an innovative concept store in Stables Market and upgrade its existing European headquarters in Camden Town. A ten-year lease has been agreed across two floors covering 23,470 sq ft of office space in Camden Wharf.

Draper Esprit (GROW.L) 355p £144.65m

The venture capital firm involved in the creation, funding and development of high-growth digital technology businesses, announced its maiden Interim Results for the six months ended 30 September 2016. Profit after tax of £26.1m. Gross primary portfolio value increased by 36% to £106.9m (£78.7m at IPO). Net Assets including goodwill, increased by 11% to £143.3m (£128.7m at IPO).   NAV per share of 352p. Successfully completed final close of EIS 5 co-investment fund, having raised £11m and launch of EIS 6.


Blue Star Capital (BLU.L) 0.16p £0.8m

The investing company in technology and gaming, announced its final results for the year ended 30 September 2016. Loss for the period of £165,005 (2015: loss of £106,370). Net assets of £1,757,165 (2015: £1,877,170) following sale of Vigilant Applications Limited for £220,000. Net asset value per share at 30 September 2016 of 0.35p (2014: 0.40p). Cash Position at 30 September 2016 of £51,184 (2014: £27,473).

Trakm8 Hldgs (TRAK.L) 185p £60.06m

The telematics and data insight provider to the global market place, has been awarded a contract by Smart Driver Club (SDC), the innovative UK vehicle services company, to supply devices and data services for the launch of its Smartbubble service solution.  SDC expects to have a requirement for a substantial number of devices in the first 18 months of the contract with a launch order of 6,000 devices to be delivered in Trakm8’s current financial year. Fy Mar17E revs of £34m and EPS of 15.7p. 2.1p divi.


Kodal Minerals (KOD.L) 0.08p £3.5m

The mineral exploration and development company focussed on West Africa, has announced further acquisitions of prospective lithium projects in southern Mali.  These acquisitions are in line with Kodal’s strategy to identify value accretive strategic mineral opportunities in West Africa and further advances the Company’s growing exposure to the rapidly developing lithium extraction and development industry. 90% acquisition of 109 sq km project. Total consideration $65k. Extensive evidence of Pegmatite mineralisation anomalous with lithium.

Imperial Innovations (IVO.L) 477p £564m

Portfolio company TopiVert Pharma Ltd has announced that its Investigational New Drug application for the evaluation of TOP1630 ophthalmic solution as a treatment of patients with dry eye syndrome (DES) has been approved by the FDA. Approval of this IND will allow TOP1630 to enter the clinic in the US in a Phase I/IIa proof-of-concept study in DES. TOP1630 will be TopiVert’s 2nd compound to enter the clinic, following TOP1288, which has successfully completed Phase I evaluation and last month started a Phase IIa proof-of-concept study in patients with ulcerative colitis.

Tissue Regenix Group (TRX.L) 16.12p £122.57m

The regenerative medical devices company provided an update on OrthoPure™ XT (porcine tendon).  The early clinical data provided to support the CE mark application has shown results highlighting the clinical relevance of the product, with the outcomes at 6 months post-operation showing a statistically significant improvement when compared to the current gold standard treatment which uses the patients’ hamstring tendons or patellar tendon (autograft). Launch remains on track for H1 2017, with CE mark approval expected in the same period.


Akers Biosciences (AKR.L) 185p £10.1m

The developer of rapid health information technologies, has completed a clinical trial for BreathScan® DKA, the first single-use, non-invasive breath test to rapidly screen for diabetic ketoacidosis, a potentially life-threatening complication of diabetes caused by a lack of insulin in the body.  The results were highly successful, with sensitivity (a true positive result) of 91% and specificity (a true negative result) of 93%. The overall agreement between the BreathScan® DKAtest and the gold standard hospital blood test was 92%. Akers Bio is pursuing FDA 510(k) market clearance in the US and the current study fulfils a requirement of this clearance.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email with “unsubscribe me”.