Small Cap Feast
Small Cap Feast – Small Cap Feast 07/08/2019
Dish of the Day:
No Joiners Today
No Joiners Today
Off the Menu:
No Leavers Today
No Leavers Today
What’s Cooking in the IPO Kitchen?
Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August.
Rumours and Speculation
According to Bloomberg Helios Towers, one of South Africa’s largest mobile phone tower operators, is reviving plans for a London IPO.
Europa Oil and Gas (EOG.L) 2.75p £11.56m
Europa Oil & Gas, the UK and Ireland focused oil and gas exploration, development and production company, announced that the Irish Government has approved the Company’s application to convert Licensing Option 16/20 in the Slyne basin in Atlantic Ireland to Frontier Exploration Licence 4/19. The 100%-owned Licence includes the Company’s flagship Inishkea prospect which lies immediately to the north west of, and abuts, the producing Corrib gas field in the Corrib Field Petroleum Lease Area.
The Inishkea prospect has estimated gross mean un-risked prospective gas resources of 1.5 trillion cubic feet and has been assigned a one in three chance of success. The next steps for the Licence, which has a 15-year term commencing from 1 August 2019, include a site survey in preparation for drilling an exploration well, subject to funding and regulatory consent. An application to obtain a site survey on the Inishkea prospect is in process.
Palace Capital (PCA.L) 289.00p £133.20m
Palace Capital, the UK REIT that has a diversified portfolio of UK regional commercial real estate in carefully selected locations outside of London, today announced that it has signed a new secured £40m revolving credit facility (RCF) from NatWest with a maturity of five years, to replace the current £29.4m NatWest facility.
The RCF provides the Group with additional firepower over current drawings to support operational flexibility, deliver further portfolio initiatives and offers wider scope for new investments that meet the Company’s selective investment criteria.
The Group is currently £106.2m drawn on its existing facilities (34% LTV using 31 March 2019 values) and the RCF increases the Company’s total debt facilities to £154.6m. With the benefit of the new facility, the initial weighted average cost of debt (prior to amortisation of fees) at current rates will be 3.2%, reducing to 3.1% if fully drawn (weighted average cost of debt for 12 months to 31 March 2019: 3.3%).
Shield Therapeutics (STX.L) 169.50p £194.95m
Shield Therapeutics, a commercial stage, pharmaceutical company with an initial focus on addressing iron deficiency, announced its unaudited interim results for the six months ended 30 June 2019.
Revenues were £2.6m (H1 2018: £0.5m), the loss for the period of £2.0m (H1 2018: £8.0m), and at the end of the period the Group had cash of £6.6m (31 December 2018: £9.8m) .
Norgine commenced promotion of Feraccru in the UK and Germany with early signs of the positive impact of a larger commercial operation, and have started pricing and reimbursement activities in other European markets. Feraccru has also been granted extension of approved indication in Switzerland to include treatment of all adults with iron deficiency.
There were also positive results in AEGIS-H2H non-inferiority study, triggering €2.5m development milestone from Norgine, and positive results achieved in long-term follow-up of patients enrolled in AEGIS-CKD clinical study.
Evgen Pharma (EVG.L) 17.12p £23.05m
Evgen Pharma, a clinical stage drug development company focused on the treatment of cancer and neurological conditions, announced the grant of further intellectual property rights in Europe pertaining to the novel composition, SFX-01.
The newly granted patent leads with a product claim covering “a composition comprising a complex of sulforaphane and alpha-cyclodextrin”. Composition-of-matter patents have already been granted in the USA and other territories. Furthermore, patents in Europe, the US and other territories relating to the method of production have also been granted.
Exclusive worldwide rights to the patent are held by Evgen Pharma under the terms of a licence agreement with PharmAgra Labs Inc., the US laboratory that invented SFX-01.
Steve Franklin, CEO of Evgen Pharma, said that the patent “further expands the strength and depth of our intellectual property position across all the key territories with regard to the composition of the product and method of manufacture.”
Oilex (OEX.L) 0.15p £2.94m
Oilex, an oil and gas exploration company whose strategy is to use its extensive technical and commercial expertise to explore, appraise and develop petroleum resources around the Indian Ocean Rim, announced that it has entered into an agreement with Holloman Energy Corporation to acquire its 48.5003% interest in the PEL 112 and 444 license in the world class Cooper-Eromanga Basins in South Australia.
Pursuant to the share purchase agreement entered into with HEC, the Company will acquire 100% of its wholly owned subsidiary, Holloman Petroleum Pty for gross consideration of 40,416,917 ordinary shares in the Company (Shares) at a deemed price of 0.3 cents and A$24,250 for a total consideration of A$145,500.
Cora Gold (CORA.L) 5.50p £5.94m
Cora Gold, the West African focused gold exploration company, announced results of a selective infill drill programme undertaken at the Selin Prospect at the Sanankoro Gold Discovery, Southern Mali, in addition to results from its ongoing reconnaissance regional exploration programme.
Infill drill results at Selin prospect correlate with results of previous drill programmes and confirm that oxide gold mineralisation extends to depths of up to 90 metres at the southern part of the prospect.
For the Sanankoro Reconnaissance Exploration, gold mineralisation of potentially economic interest was identified to the north of the Bokoro North artisanal pit, whilst some drill collar sites may have not been optimal due to access around the workings.
Eight Capital Partners (NEX: ECP) 0.025p £0.158m
Eight Capital Partners, who provide equity, debt, and equity-related investment capital to companies seeking capital for growth and development, consolidation or acquisition in the technology, media, telecoms and financial services sector, announced that it has completed the acquisition of a EUR2m receivable as outlined in its announcement of 1 June 2019 Notice of AGM.
Settlement of the transaction’s EUR1.9m consideration is being effected through EUR1m of Eight Capital’s 7% bonds, a EUR600,000 vendor loan at a 5% interest rate with a duration of one year, and, EUR300,000 in cash.
Following the transaction above, the Company will have placed EUR1,800,000 of bonds from its instrument traded on the Vienna MTF as “EUR5,000,000 7.00 per cent. Notes due 26 July 2022”. It is anticipated that more bonds will be placed in due course.
Secure Property Development (SPDI.L) 9.00p £11.45m
Secure Property Development and Investment, the South Eastern European focused property company, announced the signing of two formal agreements relating to the transfer of certain assets owned by SPDI in Bulgaria and Ukraine to Arcona Property Fund N.V. in exchange for approximately 630,000 new ordinary shares in Arcona and approximately 190,000 warrants over ordinary shares in Arcona (subject to standard form adjustment and finalisation in accordance with the Agreements).
The total €29.3m value of the Transaction (based on a net asset value of €13.44 per Arcona share as at 3 June 2019, and excluding the issue of warrants over ordinary shares in Arcona), completion of which is still subject to a number of conditions, represents a premium of approximately 135% to SPDI’s current market capitalisation.
W Resources (WRES.L) 0.41p £25.63m
W Resources, the tungsten, tin and gold mining company announced an update on its flagship project La Parrilla in Spain and further detail on its projects in Portugal.
At La Parrilla, the mine is in the final stages of construction and following delivery of the Motor Control Centre (MCC) the team is completing the final electrical connections in the lead up to full commissioning of the large-scale Concentrator Plant.
The Company has also signed an amendment agreement with BlackRock to capitalise the last two interest payments of the BlackRock $1.29m term loan.
Shanta Gold (SHG.L) 8.90p £70.07m
Shanta Gold, the East Africa-focused gold producer, developer and explorer, provided an update on the Singida Gold Mining P
roject (“the Project”) in Tanzania.
The Project’s Environmental Impact Assessment Certificate has now been received from the Minister of State in the Vice President’s Office for Union Affairs and Environment. This marks an important milestone for the future construction and operation of the Project.
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 firstname.lastname@example.org with “unsubscribe me”.