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Small Cap Feast – 07 August 2020

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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

 

TruSpine is a medical device company in the spinal device market. The Company is developing disruptive technologies to for use in the spinal stabilisation market, commencing with the following three devices: Cervi-LOK – for the cervical and upper thoracic spine Faci-LOK – for the lumbar and lower thoracic spine, and GRASP Laminoplasty – a treatment for decompression of the spinal cord . AQSE admission due 17 Aug

 

Breakfast Buffet

OKYO Pharma 15.5p £104.25m (OKYO.L)

The life sciences and biotechnology company, focused on the discovery and development of novel molecules to treat inflammatory dry eye diseases and chronic pains establishing a Scientific Advisory Board which will be led by Dr A. James Khodabakhsh MD. His appointment is effectively immediately, with the remit to bring together a small group of leaders-in-the-field to review and inform the Company’s plans to progress its lead product candidate, Chemerin, to an IND in the indication of dry-eye disease.

Dr. James Khodabakhsh specializes in complex surgeries of the eye and is one of the most sought after surgeons in Los Angeles and is the Medical Director at the Beverly Hills Institute of Ophthalmology.

 

Avacta Group 141p £351m (AVCT.L)

The developer of Affimer® biotherapeutics and reagents, has entered into a collaboration with the Liverpool School of Tropical Medicine (“LSTM”) to clinically validate the rapid, saliva-based coronavirus antigen test that Avacta is developing with Cytiva.

LSTM has been at the forefront of research into infectious, debilitating and disabling diseases since 1898 and was the first institution in the world dedicated to research and teaching in tropical medicine. It has a research portfolio of around £320 million and projects and partnerships in more than 70 countries.

 

Codemasters 378.5p £573m (CDM.L)

The award-winning British video game developer and publisher specialising in high-quality racing games, confirmed the release of Fast & Furious Crossroads today for PlayStation®4 computer entertainment system, the Xbox One family of devices including the Xbox One X, and Windows PC via Steam.

Developed by Slightly Mad Studios, the game expands the Fast & Furious universe with Vin Diesel, Michelle Rodriguez and Tyrese Gibson reprising their roles as Dom Toretto, Letty Rodriguez and Roman Pearce. Joining the cast are Sonequa Martin-Green, Asia Kate Dillon and Peter Stormare. The launch trailer can be viewed here https://youtu.be/BpdLt9duHTY .

 

Randall & Quilter 152.5p £339.4m (RQIH.L)

Its wholly owned Vermont subsidiary, ICDC, Ltd, has completed the acquisition of NationsBuilders Insurance Company (“NBIC”), a Washington D.C. domiciled captive from NationsBuilders Insurance Services.

 

Paul Corver, Group Head of M&A at R&Q, commented: “We are pleased to have completed the acquisition of NBIC. This marks our third captive legacy acquisition in 2020. R&Q is well positioned to take on books of business of all sizes and we expect to announce further legacy transactions before the end of the year.”

 

SIMEC Atlantis 12.9p £55.35m (SAE.L)

Further to an announcement made on 6 August 2020 SIMEC has now signed a Heads of Terms in relation to a joint venture, NPA Fuels Limited (“NPA”), with the N&P Holding 2 Ltd, a wholly owned subsidiary of the Dutch recycling specialists, the N+P Group, and certain related arrangements as detailed in the Announcement.

NPA will principally be involved in the marketing, production and delivery of waste derived fuel pellets to converted coalfired power stations throughout the UK, and in particular the Uskmouth project.

N+P and Atlantis are working to finalise a formal joint venture agreement and will update the market once this has been agreed and executed.

Tim Cornelius, CEO of SIMEC Atlantis Energy Limited commented: “We are very excited to be entering in the fuel production market alongside our trusted partner and market-leader, the N+P Group. Atlantis is looking forward to building a large, profitable business with N&P, starting with supply to our ground-breaking Uskmouth project.”

 

Reabold Resources 0.58p £41.16m (RBD.L)

Update on well flow test operations at the Iecea Mica-1 (“IMIC-1”) well in Romania as part of the 2020 work programme. The Work Programme is being carried out by Danube Petroleum Limited (“Danube”), which has a 100 per cent. interest in the Parta Sole Risk Area and will, on completion of the farmout to Tamaska Oil & Gas  have a 50 per cent. interest in the Parta Exploration Licence.

Reabold holds a 50.8 per cent. equity interest in Danube. ADX Energy Ltd  is the operator of IMIC-1.

  • Services engaged including coiled tubing, nitrogen and testing services to acidize and flow test the IMIC-1 well. Programme start date expected within four weeks and expected to take nine days. The majority of the services are available in Romania thereby minimising potential delays due to COVID-19 related border restrictions.
  • Decision to proceed based on recently recovered down hole pressure measurements which confirm non-depleted reservoir pressure and gradual influx of reservoir fluids from down hole sampling which has recovered methane and drilling mud filtrate.
  • Programme objectives are to initiate flow by overcoming expected mud filtrate build up which has been interpreted as preventing strong flow from the well, determine reservoir fluid composition and the flow capacity of the PA IV reservoir.

 

Scapa Group 120.2p £225m (SCPA.L)

Q1 Trading Update. Scapa has delivered FY21 Q1 revenues in the three months to 30 June 2020 well ahead of its COVID-19 scenario plan. Trading in both divisions has also continued to improve into FY21 Q2 to date. Scapa acted swiftly to implement structural costs changes across the business in response to the impact of the COVID-19 pandemic on the reduction in product demand, as well as ensuring variable costs were closely managed to match the new demand levels.

Working capital management remains strong, with adjusted net debt¹ at the end of FY21 Q1 of £18.4m (including net proceeds of £31.6m from the equity placement in May 2020), compared to the FY20 year-end position of £54.4m.

 

Newmark Security 1.425p £6.7m (NWT.L)

The provider of  products and services in the security and data sectors, is pleased to announce two new customer wins in its Human Capital Management (“HCM”) division in the United States, where it trades as GT Clocks.

The Company has onboarded a new client, a HCM software company which provides HR and Payroll solutions to over 30,000 businesses of all sizes, across many sectors, onto its GT-4 timeclock. The GT-4 is the successor to the popular IT31, which was the Company’s previous mid-tier hardware offering. The contract is for a period of three years, with a minimum contract value in excess of $1m over this period.

 

In a separate customer win, one of the Company’s existing ‘full suite HCM solution’ partners has entered into an agreement to supply the Company’s flagship device, the GT-10, to one of the largest retailers in the US. Whilst not contractually committed, the Directors of Newmark estimate that this agreement could potentially be worth up to $3.8m to the Company over the next 2-3 years and could lead to further projects with the same client. 

 

National Milk Records 105p £22.3m (AQSE:NMRP)

Trading update.

— Turnover for the quarter of GBP 5.346 million (June 2019: GBP 5.597 million) — Milk recording revenues impacted by Covid-19 social distancing rules and restrictions, decreasing 12.9% when compared to the same quarter last year

o 30% of farmers temporarily moved to ‘Do it Yourself’ services demonstrating the robustness of farmer demand for milk recording services — Revenues for testing of Johne’s disease increased by GBP 47,976 or 4.9% when compared to the same quarter last year despite the disruption to recording services — Limited disruption to core revenue streams such as payment testing, BVD testing and surveillance tag sales — No staff furloughed as NMR regarded as an “Essential Service”

— Levels of assisted services gradually transitioning back towards normal in the final quarter

 

i3 Energy SUSPENDED 6.1p £6.6m (I3E.L)

Update · i3’s purchase of the petroleum and infrastructure assets of Gain Energy Ltd.  is ongoing

  • During the process, i3 has agreed to sell Gain’s Saskatchewan portfolio to Harvard Resources Inc. (“Harvard”) for CAD$45 million (c. US$33 million ), immediately following completion of its acquisition of Gain’s petroleum and infrastructure assets
  • Net consideration payable by i3 for the remaining petroleum and infrastructure assets of Gain that it is retaining (the “Gain Assets”) is now CAD$35million (c. US$26 million ) subject to normal completion adjustments
  • The Gain Assets delivered production of 8,948 boepd in June 2020 and would add 2P reserves of 53.8 MMboe with a before-tax NPV10 of c.US$182 million
  • The net consideration for the Gain Assets translates to acquisition metrics of US$2,876/boepd and US$0.48 per 2P boe
  • To fund the Gain Acquisition and unlock production potential, i3 is proposing to raise £30 million from 

    institutional and other investors at a price of 5 pence per share, an 18% discount to the closing mid-price at which i3’s shares suspended on 23 June 2020 

Head Chef:

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

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