Small Cap Feast

Small Cap Feast – 31st October 2016

Dish of the Day:

Standard List admission  today for Golden  Rock Global (GCG.L). £1.6m raise . Seeking fintech acquisitions

Off the Menu:

No AIM Leavers Today

What’s Cooking in the IPO Kitchen?

FreeAgent—FT reports the provider of accounting software to small businesses is intending to announce its intention to float today looking to raise £8m

Ascot Lloyd –City A.M. reports the wealth manager has postponed its IPO after failing to find sufficient investor support

Filta— AIM Schedule One update  from  the provider of a number of services to national and independent commercial kitchen operators and owners.   Targets 4 November listing. Seeking £4.3m new equity plus £1.9m shareholder sale

Breakfast Buffet

Hutchison China Medi (HCM.L) 1,875p £1.1bn

The innovative biopharmaceutical company which researches, develops, manufactures and sells pharmaceuticals and healthcare products, announced that Shanghai Hutchison Pharmaceuticals Limited, its 50:50 Prescription Drug joint venture with a subsidiary of Shanghai Pharmaceuticals Holding Co., Limited, has today received US$59.5 million from the Shanghai government under the terms of their December 2015 land compensation agreement.

Petards Group* (PEG.L) 18.25p £6.45m

The AIM quoted software developer of advanced security and surveillance systems, has secured an additional framework contract and two “Call Off” contracts with Hitachi Rail Europe Limited for Petards to supply Automatic Passenger Counting Systems.  The new “Call Off” contracts are for the East Coast Main Line as part of the Intercity Express Programme and the Great Western Railway West of England service, the value of which are in excess of 1.2m and will be supplied over the next 3 years.

Milestone Group* (MSG.L) 1.27p £11.17m

The provider of digital media and technology solutions announced that a contract has been signed with its subsidiary, Nexstar and a UK based entertainment industry payroll specialist.  Nexstar, using its status as an Independent Sales Organisation will provide an innovative payroll payment solution which will include providing white labelled pre-paid cards to issue to its clients. This will be commissioned in the next few weeks and then be immediately earnings enhancing.

Limitless Earth (LME.L) 3.38p £2.21m

HY Jul 16 results from proactive investing company that focuses on making investments in and assisting companies that show the potential to generate returns through capital appreciation. Loss of £65k and NAV of £2.5m. During the period, the Company invested US$300,000, in Exogenesis Corporation, a private nanotechnology company. All other current investments are progressing in line with management expectations.  E.g., Chronix Biomedical is expected to start the listing process onto a regulated exchange in the coming months.

Range Resources (RRL.L) 0.35p £28.86m

The exploration and production company focused on growth through acquisition of transformational new projects, whilst continuing production and reserves growth in Trinidad has issued a $20m 8% loan note convertible at 0.88p to LandOcean Energy Services to replace a portion of the outstanding payable balance due to LandOcean under the terms of the Integrated Master Services Agreement. LandOcean is acting as the preferred oilfield services contractor to Range in Trinidad.

European Metals Holdings (EMH.L) 39.13p £48.48m

Update from the developer of the  100% owned globally significant Cinovec Lithium/Tin Project in Czech Republic. Significant capital savings identified in scoping study.  USD 38m saving on mining CAPEX costs. USD 47m saving on lithium plant costs. Drilling highlights include: Drillhole PSn13 returned main mineralised intercept of 167.1m averaging 0.36 % Li2O. Included high-grade intervals of 12m averaging 0.77 % Li2O and 7m averaging 0.87 % Li2O, as well as a tin-enriched interval of 8m averaging 0.16 % Sn. Ended Sep with A$1.9m cash.

Stellar Diamonds (STEL.L) 6p £1.91m

Competent Persons Report on Tonguma and Tongo Project in Sierra Leone confirming the Project’s initial inferred recoverable resource of 4.0 million carats (+1.18mm) and endorsing the mine plan for the Project.   On 5 October 2016 the Company announced the results of the independent preliminary economic assessment for the Project demonstrating an estimated pre-tax Project NPV(10) and IRR of $172 million and 49% respectively.  Shares remain suspended whilst Tonguma project acquisition is still pending.

Plant Impact (PIM.L) 49.5p £40.39m

FYJul16 results from the specialist in research and development in crop enhancement products that growers can rely on to improve the yield and quality of their crops. Revenue up 60% to £7.2m. Gross profit up 59% to £5.6m.  Net loss of £0.7m vs £0.1m profit. Cash at 31 July 2016 was £5.6m from£7.6m; reflecting continued investment in R&D & geographic expansion.  On Veritas®, PIM is transitioning commercial focus from gaining trial use with progressive growers to establishing product as an essential input across the grower’s entire farm production.


Proteome Sciences (PRM.L) 8.78p £20.14m

The specialist in applied proteomics offering high sensitivity, proprietary technologies and workflows for mapping cell signalling pathways and for the discovery, validation and assay development of protein biomarkers has raised £3.3m in a placing and subscription priced at 5p. Proceeds to be used to accelerate evolution into a premium contract, service-based biomarker business, underpinned with a bioinformatics capability and ensuring that the Company has the capacity to meet Thermo Fisher Scientific’s further demand for its TMT reagents.

Premier African Minerals (PREM.L) 0.37p £7.4m

The multi-commodity mining and natural resource development company focused on Southern and Western Africa, has completed the acquisition of a 52% interest in Mozambique-based TCT Industrias Florestais Limitada (TCT IF), which owns a substantial limestone deposit located on rail in Mozambique. TCT IF is the holder of the exploration licence together with significant forestry operations.  TCT IF is self-sustaining and will contribute positively to group cash flows in 2017.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*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”.