Small Cap Feast
Small Cap Feast – 29 June 2020
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Arc Minerals 2.1p £20.3m (ARCM.L)
Commencement of the second season of exploration activities over the Zamsort and Zaco license areas in north western Zambia. Diamond drilling activities will commence over the Fwiji Target (‘Fwiji’) where the company has already defined the target area through previous exploratory works. Follow up work at a number of the other target areas, including Cheyeza East and Muswema, is currently underway.
The total diamond drilling program for the year is budgeted for an initial 8,000m with hole depths to between 100m – 250m below surface.
Diamond drilling is initially intended to confirm the interpreted anticlinal structure and mineralisation associated with the hinge component to this anticline. This will then be followed to test the mineralisation in the down-plunge hinge component to the anticline.
Distil 1.15p £5.8m (DIS.L)
The owner of premium drinks brands including Blackwoods Gin and Vodka, RedLeg Spiced Rum, Blavod Black Vodka, Diva Vodka and Jago’s Vanilla Cream Liqueur, announces its final results for the year ended 31 March 2020.
- Turnover increased 2% to £2,441k from £2,401k
- Gross profit increased 1% from £1,429k to £1,446k
- Margins broadly flat at 59.2% for the same period, year-on-year (2019: 59.5%). · Operating profit increased 15% from £160k to £184k
- Net cash outflow of £210k (2019: £37k inflow) resulting in year-end cash reserves of £858k (2019: £1.07m)
“Currently the On-Trade is yet to benefit from freedom of movement. International travel and travel retail is greatly reduced. The Off-Trade has benefited from the closure of bars and restaurants and online retailing has soared. We fortunately operate across all trade channels and our brands are well positioned at affordable prices. “ “At this stage I believe it is too early to forecast with accuracy or certainty for the coming year. Market guidance for the coming year will be released as soon as we are reasonably confident in consumer movement and trade channels reopening. In the meantime, we will continue to keep tight control of cash, costs and ensure product availability throughout the supply chain..”
Sound Energy 2p £23.2m (SOU.L)
On 26 June 2020, heads of terms (HOT) were entered into with a Moroccan conglomerate with significant liquified petroleum gas, butane and propane distribution and marketing operations in Morocco, pursuant to which the Company has now entered into exclusive discussions with the Partner in order to enter into agreements for both the purchase of LNG to be produced from the TE-5 Horst development, as well as the partial financing of the Phase 1 Development by the Partner.
Exclusivity has been granted to the Partner in relation to the Proposed Transaction until 31 December 2020 . In this context, the Company and its Partner have agreed to use their reasonable endeavours to conclude the Proposed Transaction on the basis of key commercial terms set out in the HOT.
The Partner has also agreed under the HOT to use reasonable endeavours to conclude definitive agreements in respect of a proposed partial financing for the development through:
- a £2m subscription by the Partner for new Sound Energy ordinary shares at a price of 1.2521 pence
- a secured commercial loan of $13.5 million provided by the Partner to the Company in respect of the Phase 1 Development, with an 11.5% coupon and 12 year term.
Phoenix Copper 28p £17.5m (PXC.L)
Results of the initial metallurgical test work for the recovery of precious metals occurring in the Empire Mine deposit.
Precious metals tests performed on samples from the Empire open pit deposit using non-toxic ammonium thiosulfate (“ATS”) reagent resulted in high gold recoveries of 97.8% and 97.7%, and silver recoveries of 69.8% and 78.2%, respectively
- RC drill rig mobilised for extensional drilling of the gold and silver zones at Empire with the intent of adding additional gold and silver to the open pit resource
- Diamond drilling programme at the Red Star silver-lead deposit well underway
NetScientific 5.9p £4.6m (NSCI.L)
Its venture portfolio company G – Tech Medical (“G – Tech”) today announced the completion of $6.7m Series A financing round led by DigiTx Partners.
NetScientific held a convertible loan note of $250,000, together with accrued interest, that had previously been fully impaired to £Nil. As part of the Series A financing the convertible loan note and interest converted to Series A Preferred Shares and Common Form Convertibles with a fair value, based on the financing round, in excess of £400,000. NetScientific now holds 3.8% of G – Tech’s fully diluted share capital.
G – Tech is developing a wearable medical technology that will be used to measure gastrointestinal motility.
Omega Diagnostics 50.7p £80.2m (ODX.L)
Omega notes the Press Release issued today by UK Rapid Test Consortium (UK-RTC) on developing a COVID-19 lateral flow antibody test that can be used by people in their homes.
As announced on 9 April 2020, the Company signed a Memorandum of Understanding with Abingdon Health Limited, BBI Solutions Limited, CIGA Healthcare Limited, in conjunction with the University of Oxford to form the UK-RTC in order to jointly develop and manufacture a COVID-19 Rapid Test as part of the Government’s five pillar national testing strategy for COVID-19.
Abingdon Health Limited, lead partner of the UK-RTC, has informed consortium members that it has attained design freeze for the COVID-19 Rapid Test. The next stage is for Abingdon Health to complete verification, validation, transfer the manufacturing protocols to consortium members and gain regulatory approval.
B.P. Marsh & Partners 241p £90.2m (BPM.L)
The specialist private equity investor in early stage financial services businesses has agreed to subscribe for a 30% Cumulative Preferred Ordinary shareholding in SAGE Program Underwriters , for an equity consideration of $250,000 (c. £200,000).
Based in Bend, Oregon, USA, and established in 2019, by CEO Chuck Holdren, SAGE provides specialist insurance products to niche industries, initially in the inland delivery and field sport sectors.
Draper Esprit 448p £533m (GROW.L)
FY Mar 20 results from the venture capital firm investing in and developing high growth digital technology businesses . · Gross Portfolio Value increased by 18% to £703m (31 March 2019: £594m).
- Gross Portfolio Fair Value increase of 10% with a £59m fair value movement in the year (31 March 2019: £140m, 58%).
- NAV per share increased by 6% to 555 pence (31 March 2019: 524 pence).
- Cash realisations of £40m (31 March 2019: £16m), with further exits amounting to approx. £80m announced post year-end.
- £90m invested by the Group (31 March 2019: £226m), and a further £38m invested by EIS/VCT (31 March 2019: £35m).
“We have entered the new financial year with a well-positioned portfolio and in a strong position to capitalise on our growing reputation as one of Europe’s leading venture capital businesses. At the same time, we must be cognisant of the wider market uncertainty and increased pressures on the global economy, which have the potential to impact our portfolio companies and, by extension, our own business.
Our growth target for the coming financial year is 15%, with an expectation of returning to 20% through the cycle whilst recognising the volatile environment in which we are currently operating.”
Trident Resources 20p £20.7m (TRR.L)
Agreement with Moxico Resources plc, to acquire a staged Gross Revenue Royalty (GRR) over production from the operating Mimbula copper mine and associated stockpiles located in Zambia’s prolific Copperbelt Province. The GRR is being acquired in exchange for a cash consideration of US$5.0 million. Trident is entitled to royalty payments on production commencing from 1 July 2020 and extending in perpetuity.
- Structured as a GRR of 1.25%, decreasing to 0.3% upon aggregate royalty payments of US$5.0 million being paid to Trident, with a subsequent decrease to 0.2% once the royalty has been paid on 575,000 tonnes of copper cathode or other finished copper product sold; and
- The GRR is subject to a Minimum Payment Schedule, which ensures that Trident will at minimum be repaid US$5 million within three years.
The asset is currently ramping-up production, having sold its first London Metal Exchange registered Grade A copper with a 99.99% purity in June 2020;
- The Mimbula Mine has a large, well-defined JORC (2012) compliant total Mineral Resource of 84 million tonnes of ore grading 0.95% copper for a total of 798,000 tonnes of contained copper at a 0.3% cut-off;
Maestrano Group 4.7p £6.9m (MNO.L)
The machine learning platform for transport corridor asset monitoring, announces that it’s wholly-owned subsidiary Corridor Technology Limited has been awarded a £50K grant under the Innovate UK “Business-led innovation in response to global disruption” competition.
The aim of this competition is to support UK registered businesses to focus on emerging or increasing needs of society and industries during and following the Covid-19 pandemic. By fast-tracking innovation, the UK will be better placed to maintain employment levels, a competitive position in global markets and make the UK more resilient to similar disruption.
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