Small Cap Feast

Small Cap Feast – July 8 2020

Dish of the Day:

No Joiners Today.

 

Off the Menu:

No Leavers Today.

 

What’s Cooking in the IPO Kitchen?

Elixirr, a consultancy helping clients in areas such as technological disruption have announced their intention to IPO onto AIM.  The placing will raise £20m of new money for the company and a further £5m for founder shares.

For FY 2019, the company reported EBITDA of £7.4m.  Expected market cap circa £98m with first day of dealings anticipated for 9th July @ 217p per share.

 

AEX Gold (TSXV:AEV) is intending to admit its shares to AIM alongside a £45m placing. 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.  Due July.  Current mkt cap C$66.7m.

 

Breakfast Buffet

Scotgold Resources 71.5p £36.7m (SGZ.L)

Following the update provided on 12 June 2020, as scheduled the full underground development team has now returned to work and blasting activities are being conducted at the high grade Cononish Gold and Silver Mine .

In a separate development, the Company is also pleased to announce it has reached an agreement with Epiroc UK & Ireland Ltd to supply a second new T1D drill rig and a second hand ST2G scooptram, which has become available within the UK. Having a second unit of each machine reduces the mechanical availability risk associated with having single units required for Phase 1 production levels (36,000 tpa ore), and also means only an additional truck is required for any future ramp up to Phase 2 (72,000 tpa ore).

 

Nu-Oil & Gas SUSPENDED (NUOG.L)

The proposed transaction, as announced on 14 April 2020, is no longer proceeding despite efforts to agree mutually acceptable terms. 

NUOG’s search for independent projects, of which the proposed transaction referred to above was one, has led to the development of a portfolio of other potential projects, two of which are now being actively progressed by NUOG which is now in advanced negotiations with the respective counter parties involved.

The Company was designed an AIM Rule 15 cash shell on 4 November 2019. In accordance with the provisions of AIM Rule 15, the Company’s Ordinary Shares therefore remain suspended from trading on AIM until an AIM Admission Document is published in respect of a reverse takeover transaction.

The Board remains confident that it will conclude a transaction which will constitute a reverse takeover within the stipulated timeframe under AIM Rule 15 and will update shareholders accordingly.

 

Coinsilium Group 2.45p £3.3m (COIN.L)

 Update regarding its Joint Venture Agreement (JVA) with IOV Labs Limited (IOV) to establish a Joint Venture Company (JVC) in Singapore and notification of a Strategic Business Review of the Company’s operations and investments.

  • IOV Labs Limited and Coinsilium Group Limited have executed a Joint Venture Agreement to form a Joint Venture Company in Singapore.

Southeast Asia is one of the world’s fastest growing internet economies and on track to reach $300 billion gross merchandise value by 2025

  • Each shareholder will hold 50% of the total shares of the JVC at incorporation.  

JVC will be financed by IOV by way of a loan which is to be repaid from the future revenues of the JVC

  • Eddy Travia, Coinsilium’s CEO, to represent Coinsilium as a Director of the JVC.
  • The business of the JVC will be to promote and commercialise IOV’s products, services and technologies, principally in the Asian markets.

 

MelodyVR Group 5.05p £86.9m (MVR.L)

The creator of virtual reality entertainment content and operator of the MelodyVR platform, is pleased to announce that it has entered into an exclusive partnership with Live Nation UK for a series of pioneering new live concerts connecting artists and fans in 360° virtual reality. Fans will be able to purchase tickets from Ticketmaster and in-app via the MelodyVR platform.

 Live From O2 Academy Brixton will deliver live performances from artists using cutting-edge virtual reality technology, transporting audiences into the iconic London venue from homes around the world.  Fans will have the choice of watching each performance from multiple vantage points within the venue including on stage with the artists themselves. Performances will be available in both 360° and virtual reality on the MelodyVR app for anyone with a smartphone or Oculus VR device.

 The news follows the success of Wireless Festival’s virtual incarnation, Wireless Connect, which concluded yesterday.  The ambitious three-day 360° event featured new and exclusive performances from London and LA, with performances from 70 UK and US hip hop, rap, R&B and grime artists.

 

Cohort 590p £241.7m (CHRT.L)

The independent technology group, is pleased to announce that its wholly owned subsidiary MASS Consultants Ltd (“MASS”) has been awarded the Joint Command and Staff Training (JCAST) contract for UK Strategic Command.  This contract has a value in excess of £11m spread evenly over two years, with a further three one-year options. Work on the contract will commence immediately to ensure continuity of service.

 

Distil 1.25p £6.3m (DIS.L)

The Owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, Blavod Black Vodka, Jago’s Cream Liqueur and Diva Vodka, updated on trading for the first quarter of its current financial year.

Unaudited year-on-year first quarter (April – June 2020) revenues increased by 21%. Volumes were flat year on year.

Don Goulding, Executive Chairman of Distil, said:

“I am pleased to report a 21% increase in sales revenue year-on-year for the first quarter of our financial year.

Volumes were flat year-on-year primarily due the loss of licensed sales of Blavod Black Vodka in Duty Free and Travel Retail throughout April to June following restrictions in international travel globally. However, this was offset by an increase in domestic retail sales both in store and on-line across our product range.

Despite COVID-19 related challenges, including production plant closures during April, we continued to actively market and promote our brands throughout the lockdown period and successfully managed stock supply to all customers against a significant increase in demand for our products at the consumer level. RedLeg Spiced Rum and Blackwoods Gin brands performed strongly both in the UK and our key export markets.”

 

Diaceutics 170p £143m (DXRX.L)

Trading update for the six months ended 30 June 2020. The Group has built on a good start to the financial year and trading in the first half is in line with the Board’s expectations. Sales for the first half increased by 20 per cent. to £5.3 million1 (H1 2019: £4.4 million), reflecting the historical second half weighting of sales within the business.  Net cash at 30 June 2020 was £29.8 million1.

The Group is seeing sustained demand from its blue-chip client base, with steady repeat business. It continues to operate highly efficiently with current and pipeline projects largely uninterrupted by the COVID-19 pandemic.

 The Company raised £20.5 million (before expenses) with new and existing institutional investors. The funds will strengthen its balance sheet in readiness for new growth opportunities

  • Development of ‘DXRX – The Diagnostic Network™’ (“DXRX”), the world’s first Diagnostic Network for precision medicine, remains on track. Onboarding of laboratory and diagnostic partners to the platform has commenced, with initial partners already recruited and pharmaceutical clients gaining access in Q4 2020
  • During the period, research powered by DXRX was published in five studies at this year’s ASCO conference. The data from these studies demonstrated the need for improvement in precision medicine testing for multiple cancers

 

MaxCyte 201p £134m (MXCT.L)

APEIRON Biologics and MaxCyte Enter into Clinical and Commercial Licensing Agreement for APN401.

APEIRON Biologics will obtain non-exclusive clinical and commercial rights to use MaxCyte’s Flow Electroporation® technology and ExPERT™ platform for the advancement of APN401, a siRNA-based cell therapy currently in clinical development for various solid tumors . In return, MaxCyte will receive undisclosed development and approval milestones and sales-based payments in addition to other licensing fees.

 

Dekel Agri-Vision 2.15p £9.12m (DKL)

DKL has been advised by Italian manufacturer, Oltremare Srl, that the first shipment of milling equipment for its large scale cashew processing project at Tiebissou in Côte d’Ivoire (the ‘Project’), has departed Italy.  The shipment is expected to arrive at the port of Abidjan in Côte d’Ivoire in approximately four weeks. 

The shipment, which is the first of four due to be despatched from Italy, comprises 12 containers and includes electrical, dryer, steam roasting and workshop equipment.  The remaining three shipments of milling equipment are expected to be shipped and delivered to Côte d’Ivoire in the coming months.

 

Head Chef:

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

*A corporate client of Hybridan LLP

Disclaimer

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 enquiries@hybridan.com with “unsubscribe me”.