Small Cap Feast

Small Cap Feast – 31 July 2020

Dish of the Day:

AEX Gold (AEXG.L) has joined AIM alongside a £42.5m placing at 45p. Mkt Cap £79.7m. 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.  AEX has an existing listing on the TSX Venture Exchange

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (‘MED’), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times

 

Breakfast Buffet

Physiomics* 7.8p £7.5m (PYC.L)

The oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions, announced that, further to its announcements of 27 May, 30 June and 22 July 2020, it has been awarded a contract by a new client, Astellas Pharma Inc. (TSE: 4503) (“Astellas”), a Japanese global pharmaceutical company.

The contract is for a modelling project involving Physiomics’ Virtual Tumour™ immuno-oncology model and relates to an undisclosed Astellas asset.  The work is expected to be completed this calendar year.  The precise value of the contract cannot be disclosed for reasons of commercial confidentiality however it is around 20% of the Company’s last full year’s total income to the 30 June 2019.

 

Thor Mining 0.435p £5.6m (THR.L)

Visible gold from sample panning of the second phase of gold, nickel, and chromium geochemical sampling at the 100% owned Pilbara Goldfield tenements (E46/1262 and E46/1190) in Western Australia.

HIGHLIGHTS:

  • 17 of the 32 stream sediment samples had visible gold in panning · Two of the 2019 sample sites (19PST22 and 19PST32) had visible gold in multiple follow up stream sediment samples (tables 1 & 2)
  • Samples 20PST04 and 20PST24 returned 13 and 11 grains respectively from panning · Gossan with prior nickel in rock chips was mapped and sampled over 800 strike metres.

 

Providence Resources 5.15p £43.3m (PVR.L)

The Irish based Oil and Gas Energy Company is progressing Farm out discussions with SpotOn Energy on Exploration Licence SEL1/11, which includes the Barryroe oil and gas field.

SpotOn Energy has confirmed that the necessary documentation is now in place to permit details of the consortium members to be shared publicly.

On finalisation of the Farmout agreement, SpotOn Energy will manage the Barryroe development programme, working with its consortium, to provide innovative project management and deliver value for all partners.

The “Blue Chip” consortium comprises industry service and supply companies with excellent technical and operational credentials, and extensive experience undertaking projects similar in nature to the Barryroe field, which is a shallow water conventional development.

 

Goldplat 7.7p £13.1m (GDP.L)

The gold producer, with international gold recovery operations located inSouth Africa and Ghana and an underground mining operation in Kenya, announced the signing of a binding term sheet between its subsidiary Gold Mineral Resources Pty Limited (“GMR”) and Mayflower Capital Investments Pty Limited for the sale of 100% of the share capital of Kilimapesa Gold Pty Limited.  Kilimapesa owns the assets and licences of the Kenyan underground mining operation.

 

Under the binding term sheet GMR has conditionally agreed to sell Kilimapesa to Mayflower for an initial consideration of USD1,500,000 to be satisfied by the issue of shares to that value in Mayflower. In addition, GMR is entitled to receive a 1% net smelter royalty on future production from Kilimapesa capped at USD1,500,000.  Mayflower has separately entered into an agreement under which it will assign its rights and obligations under the term sheet to a company listed on the London Stock Exchange , which will, subject to the appropriate regulatory and shareholder approvals seek to complete the acquisition and raise a minimum USD4,000,000 of funding for the development of Kilimapesa’s operations.

 

YouGov 790p £851m (YOU.L)

HY Jul 20 update. “The Group is pleased to report that trading continues to be in line with the Board’s expectations for the full year. Despite economic uncertainty over the past few months, it has performed well through this period, delivering growth in both revenue and profit for the full year.  

While the Group has been very resilient and is yet to see any material impact of COVID-19 on its business, it continues to actively monitor this fluid situation, maintaining tight cost controls and closely managing cash. YouGov has not taken any furlough funding and has maintained full continuity of service during this period. We retain a focus on employee well-being and safety while the majority of our workforce continues to work from home.”

 

Bigblu Broadband 97.5p £56.15m (BBB.L)

The provider of alternative super-fast broadband services, announces that it has conditionally agreed to sell the Company’s UK and European satellite broadband operations to Eutelsat S.A. for a maximum aggregate consideration of up to £39.3 million on a cash free/debt free basis. Eutelsat will also be assuming certain existing net working capital creditors within the Sale Companies amounting to approximately £13.9 million.

For the year ended 30 November 2019, the Sale Companies generated unaudited pro-forma revenue of approximately £34.6 million and unaudited adjusted pro forma EBITDA of approximately £5.6 million. Combined, the Sale Companies account for over 49,000 customers, with approximately 2,200 using fixed wireless services in Italy. 

 

Marlowe 511p £278m (MRL.L)

The specialist services group focused on developing companies which assure safety and regulatory compliance, announces that it has acquired Rainbow Water Services Limited and Caritas Group Limited . 

Based in Kent, Rainbow Water provides water treatment and hygiene services to a broad range of customers within London and the surrounding counties. The business, which will be immediately integrated in to WCS Group, generated revenues of £1.0m and EBITDA of £0.1m in the year to 31 August 2019.

Based in Lincolnshire, Caritas provides occupational health services and was established in 1997. The business will be integrated in to Managed Occupational Health, the Group’s occupational health operation. In the year to March 2020, Caritas generated revenues of £0.4m and EBITDA of £0.1m.

The total consideration for the acquisitions of Rainbow Water and Caritas, of £0.45m and £0.13m respectively, will be funded from the Group’s existing cash resources.

 

Oncimmune 135p £85.7m (ONC.L)

European Respiratory Journal publishes results from the Early detection of Cancer of the Lung Scotland (“ECLS”) study

Publication in peer reviewed journal validates clinical utility of EarlyCDT Lung, furthering the impact of the ECLS data in commercial discussions with substantial health systems. 

The study is believed to be the largest randomised controlled trial for the detection of lung cancer using blood-based biomarkers and demonstrates a 36% reduction in later stage diagnoses of lung cancer.

“ This publication will unlock discussions with a number of health systems on implementation, many of whom have been looking forward to the validation that this much anticipated peer review brings. We and our partners will now work at speed with health authorities in the UK and further afield to roll out EarlyCDT Lung more widely, ahead of a fuller analysis of the survival benefit of EarlyCDT Lung.”

 

ReNeuron 125p £39.8m (RENE.L)

The specialist in the development of cell-based therapeutics, today announces that the US Patent and Trademark office (USPTO) has completed its examination of the Company’s patent application (14/379,239), entitled: “Phenotype profile of human retinal progenitor cells” and has issued a notification of allowance for the issuance of a patent. The allowed patent protects the composition of the Company’s hRPC cell-based therapeutic candidate for retinal diseases, cultured under specific conditions to enhance function and identifiable by the presence and absence of specific cell surface markers.  This notification of allowance in the US adds further intellectual property protection to the hRPC technology, which already has patent protection in a number of other major territories including Europe, Japan and Australia.

The hRPC therapeutic candidate is currently undergoing Phase 2a clinical evaluation for the treatment of the inherited blindness-causing disorder retinitis pigmentosa (RP).  This programme has been granted Orphan Drug Designation in both Europe and the US, as well as Fast Track designation from the FDA in the US.

 

Pensana Rare Earths 24p £45m (PRE.L)

Quarterly activities report for the period ended 30 June 2020.  

  • Mining Title received for the Longonjo Project in Angola · Further equity investment of A$7.25m by the Angolan Sovereign Wealth Fund
  •   Grant of 7,456km2Coola exploration licence adjacent to Longonjo with confirmed rare earth mineralisation and several additional targets · High grade drill results received from the weathered zone from surface at Longonjo support strategy to extend mine life beyond the current PFS 9 year pit design
  •   High grade drill intersections in the fresh rock immediately beneath the weathered zone add a new dimension to the project. ·     Metallurgical programmes progressing well with operation of the beneficiation pilot plant set to commence in August 2020.
  • Optimisation of process parameters to produce an NdPr – rich rare earth carbonate is advancing positively, and results will feed into the BFS. ·     Bankable Feasibility technical studies on track for completion mid October 2020

 

Head Chef:

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

*A corporate client of Hybridan LLP

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