Small Cap Wrap: Archives: Small Cap Wraps

AIM Breakfast - Archive

17th March 2017

 Byotrol Buys
Petards on the right track

That’s an Elegant Agreement

On this day:
1867—First publication of an article by Joseph Lister outlining the discovery of antiseptic surgery, in The Lancet.
1935 – Adolf Hitler orders German rearmament in violation of The Treaty of Versailles
1999 – The 20 members of the European Union’s European Commission announced their resignations amid allegations of corruption and financial mismanagement.

Allergy Therapeutics (LON:AGY 28.00p/£164.51m)

Allergy Therapeutics, the fully integrated specialty pharmaceutical Company specialising in allergy vaccines, announced the recruitment of the first patient in its Phase III study designed to evaluate the efficacy and safety of its ultra-short course, aluminium-free Pollinex® Quattro Birch immunotherapy to address the cause of symptoms of allergic rhinoconjunctivitis due to birch pollen. The first patient in the B301 Phase III study was recruited in Austria on 15 March. The study is anticipated to run for one year and involve more than 550 patients over 50 sites across Germany, Sweden, Austria and Poland. The primary objective of this study is to evaluate the efficacy of Pollinex® Quattro Birch in birch pollen-induced rhinoconjunctivitis and to enable registration of the product in Germany via the Therapieallergene-Verordnung (TAV) process of the Paul Ehrlich Institut, before anticipated marketing authorisation in 2019. The adopted cumulative dose has been demonstrated to be efficacious in two recent dose range finding studies with respect to reduction of symptoms induced by a conjunctival provocation test (CPT) with no prior safety concerns.

Byotrol (LON:BYOT 4.56p/£12.73m)

Byotrol, the specialist anti-microbial technology Company, announced the purchase of the entire share capital of Winch Pharma Consumer Healthcare Ltd for an initial cash consideration of £70k. Deferred consideration of up to £44k will be payable in cash in 2018, subject to contract renewal by its key customer, the NHS Business Services Authority (NHSSC). Winch Pharma has one key asset, being a formal one year (extendable to three) contract to supply the NHSSC with non-alcohol hand sanitising products, plus certain other surface disinfection products, all under the Athenian brand. Prior to the acquisition, Byotrol was supplying Winch Pharma with all its hand sanitising products, which were repackaged under the Athenian brand. Winch Pharma’s revenue is predominantly from the NHSSC, although it also sells into other health and elderly-care providers. The acquisition will allow Byotrol to benefit directly from Winch Pharma’s recent growth, and secure 100 percent of the resulting margin, all from within existing Byotrol resources, and without having to engage in a lengthy process to become a new, formal NHSSC supplier. The Directors do not expect the acquisition to impact the Company’s earnings in the current financial year, to 31 March 2017. They do however expect this transaction to materially boost hand hygiene sales in the new financial year, particularly from sales into the NHSSC of their newly-patented formulation.

Elegant Hotels Group (LON:EHG 80.38p/£70.15m)

Elegant Hotels Group, the owner and operator of six upscale freehold hotels and a beachfront restaurant on the island of Barbados, announced that it has signed a Marketing and Sales Services Agreement with The Landings Resort and Spa by Elegant Hotels in St. Lucia. The Agreement commences with immediate effect and will involve Elegant Hotels providing The Landings with a variety of services across the areas of sales, marketing, reservations, revenue management and public relations across all key feeder markets. The value of the contract to the Group is expected to be approximately US$0.2m per annum, and the property will be fully branded as part of the Elegant Hotels portfolio as “The Landings Resort and Spa by Elegant Hotels”. The Landings is situated within 19 acres of tropical landscaped gardens in St. Lucia’s exclusive Rodney Bay, and consists of 85 villa suites with ocean, beachfront or marina views. This will be Elegant Hotels’ second hotel offering outside Barbados, following the signing in November 2016 of a management contract with Hodges Bay Resort in Antigua, which is due to open in autumn 2017. The Board of Elegant Hotels continues to believe that arrangements of this kind represent a compelling opportunity for the Group to expand beyond Barbados, given they require far less capital investment than full ownership.

Genedrive (LON:GDR 41.50p/£8.13m)

Genedrive, the near patient molecular diagnostics Company, announced that it has successfully completed clinical validation studies to support a submission for CE regulatory approval of its Genedrive® HCV ID Kit. The studies, performed at Institut Pasteur, Paris, and Queen’s Medical Centre, Nottingham, demonstrated an overall sensitivity of greater than 99 percent and specificity of 100 percent over a 955 sample cohort, comparing the test to the Abbott Molecular RealTime HCV Viral Load Assay. The Genedrive® HCV ID Kit sensitivity, specificity, and limit of detection meet the Target Product Profile specifications for decentralised use in resource limited settings, as outlined by the Foundation for Innovation in Diagnostics (FIND). The validation studies were supported by the European Commission FP7 PoC-HCV programme. The HCV test is performed on the Company’s Genedrive® portable molecular diagnostics platform, designed for use at the point of need. The assay uses only a small amount of human plasma (25ul), eliminating the need for a separate RNA viral extraction process, and yields results within 90 minutes.

Haydale Graphene Industries (LON:HAYD 174.00p/£30.70m)

Haydale Graphene Industries, the global nanomaterials group, announced that its subsidiary, Advanced Composite Materials LLC, (ACM), has entered into a four-year agreement to supply Silicon Carbide (SiC) micro-fibre to a global industrial manufacturer of tooling and wear-resistant solutions. This sole supply Agreement has a potential sales value of over US$2.6m over the initial four year term with first orders to be delivered in the final quarter of this financial year. The Agreement has a minimum annual order quantity which the Board expects will equate to an average annual revenue of approximately US$0.6m. Following a period of stringent testing, the Haydale SiC fibre has been approved for use in the production of SiC whisker reinforced (hard edged) cutting tools. There is considerable demand for SiC whisker reinforced cutting tools which are used extensively across a range of industries and more specifically, for the production, of land based turbines and jet engine fan blades. This Agreement marks a significant step forward for ACM, which is also now proactively selling Haydale’s range of graphene enhanced composites, 3D printing filaments and additives into the North American market. ACM was acquired by Haydale in September 2016.

MediaZest (LON:MDZ 0.09p/£1.18m)*

MediaZest, the creative digital audio visual Company, updated shareholders on recent business wins. Since the start of 2017, the Group has already confirmed business wins in the retail sector alone that relate to projects that will generate approximately £0.5m of new revenue. These projects include the ongoing roll out of business from existing clients and a substantial new project for a UK high street bank. All are due for completion by 30 June 2017. These new business wins include a large proportion of UK based work but also installations as far afield as the United States and Australia. In addition, the Group continues to grow its recurring revenue base, which has underpinned recent improved results. At present, run rate recurring revenues total approximately £0.4m per annum and management expect these to grow by at least 15 during the next quarter.

Petards Group (LON:PEG 28.12p/£10.17m)*

Petards Group, the developer of advanced security and surveillance systems, reports its audited results for the year ended 31 December 2016. Financial highlights showed revenues up 17 percent to £15.3m (2015: £13.1m) , EBITDA increased 28 percent to £1.62m (2015: £1.27m) and profit after tax £0.91m (2015: £0.77m). The Company generated £1m of operating cash inflows (2015: £1.2m) and had £2.3m in cash at 31 December 2016 with no bank debt. Operational highlights showed a closing order book of £20m (2015: £16m), with the order book growing by £8m in H2 2016 with orders received from Siemens Mobility, Bombardier Transportation, Greater Western Rail, Hitachi Rail Europe and the MOD. Exports increased by 57 percent to £5.3m and comprise over one third of Group revenues. Investments were made in the development of eyeTrain range particularly focus on software features and the expansion of the Group’s software development personnel and facilities. The current order book includes £12m scheduled for delivery in 2017.

Prometic Life Sciences (TSX:PLI CAD2.39/CAD1,638.98m)*

Prometic Life Sciences announced that an orphan drug designation status has been granted, by the United States Food and Drug Administration, for its orally active, anti-fibrotic, lead drug candidate, PBI-4050, for the treatment of Alstrӧm Syndrome (AS). This condition is chronically debilitating due to permanent blindness, deafness, type 2 diabetes and life-threatening due to progressive organ failure. To this day, no satisfactory method of treatment has been authorised in the USA for patients affected by AS. Prometic is currently investigating the effects of PBI-4050 on multiple organs in AS patients in an ongoing, open label, Phase 2, clinical study in the United Kingdom (UK) with plans to expand the clinical program, both in the USA and elsewhere in Europe, once an optimal regulatory pathway has been defined with the FDA and the European Medicines Agency, respectively.

Touchstone Innovations (LON:IVO 350.21p/£581.42m)

Touchstone Innovations has participated in a £2.9m funding round in Resolving Limited the parent company of, the independent website dedicated to consumer rights and complaint resolution. Innovations has committed £1.1m to the round alongside co-investor Draper Esprit. As a result of this investment, Innovations will have an interest of 8.1 percent in the Company. Founded in 2014 and based in London, is a website dedicated to making it easier for consumers to make complaints or raise issues with brands, companies and organisations. Users can sign up in seconds via the web site (or its iOS or Android apps) to create a case and send it off in minutes to the more than 30,000 companies, brands and organisations in the Resolver database. The Company is also working with the London School of Economics to analyse data within complaints, assess the severity of these complaints at scale and attach a severity index to each complaint. This can be used to rank large volumes of complaints. The new funding will allow Resolver to expand its team and invest in new technologies such as artificial intelligence and machine learning helping to predict the outcome of a customer case. This will allow the Company to automate key processes to increase the speed at which cases can be raised and also to help predict the likelihood of successful resolution.

Venn Life Sciences (LON:VENN 19.87p/£12.10m)*

Venn Life Sciences, a growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device organisations, provided the following update. 2016 represented another year of strong growth for Venn with sales in excess of €18m (2015 €11m). The business finished 2016 with a strong cash position of €3m (€1.75m 30 June 2016). The strong momentum enjoyed by the business in 2016 has continued into 2017 to date, with new business contracts signed to the value €5.7m in the first two months of the year.

*A corporate client of Hybridan LLP

15th February 2017

 Backers reaffirm support for ProMetic

InnovaDerma revenue picks up again

TP Group acquires

On this day:

399 BC—Philosopher Socrates is sentenced to death by the city of Athens for corrupting the minds of the youth of the city and for impiety

1763—Austria, Prussia & Saxony sign Treaty of Hubertusburg, marking the end of the French and Indian War and of the Seven Years War

2001—First draft of the complete human genome is published in the journal “Nature”

Dillistone Group (LON:DSG 87.00p/£17.60m)

Dillistone Group, the  supplier of software for the international recruitment industry through its Dillistone Systems and Voyager Software divisions, provided a trading update for the 12 months ended 31 December 2016. The Board confirmed that pre-tax profits before acquisition related items and one off adjustments are expected to be broadly in line with market expectations, with year on year growth in revenue, EBITDA and pre-tax profits.  Currency gains have impacted both revenues and costs, however the net impact of this currency fluctuation has been positive. Both divisions will be reporting good revenue growth for the period.  Economic turbulence in 2016, as noted in their Interim Report in September, has resulted in a lower than normal level of sales of new licences and subscriptions to existing clients, however licence sales to new clients and upgrades for existing clients remain strong.   The Board also noted that Dillistone Systems division has seen a notable improvement in its market performance after a challenging 2015, with significant growth in both the number and total value of new contract wins in the year.  The Board remains optimistic about making further progress in 2017, although it is mindful of the wider economic influences and their potential to impact on the performance of the business.  The Group remains profitable and cash generative and continues to follow a progressive dividend policy, subject to the needs of the business.


Ferrum Crescent (LON:FCR 0.18p/£4.19m)

Ferrum Crescent, the metals developer, announced further to its previous announcement of 16 January 2017, that the farm-in and joint venture agreement between Ferrum Iron Ore Limited (FIO), Ferrum South Africa Limited (FSA) and Business Venture Investments Limited (BVI) for the production of a bankable feasibility study (BFS) for the Company’s Moonlight Iron Project in Limpopo Province, northern South Africa has now been formally terminated by FIO and FSA in accordance with its terms. Under the terms of the Agreement (details of which were first announced by the Company on 14 October 2015), BVI was entitled to earn up to a 43 percent equity interest in FIO through the completion and full funding of the BFS, which was to be conducted in two phases. As announced on 14 January 2016, the Company agreed to extend the timetable for BVI to complete BFS Phase 1, however, as announced on 16 January 2017, BVI failed to complete BFS Phase 1 by that extended deadline of 12 January 2017. Consequently, and in accordance with the terms of the Agreement, BVI has not earned any equity interest in FIO. The Company is considering its options in relation to the potential development of the Moonlight Project, and will make further announcements as and when appropriate.


Hutchinson China MediTech (LON:HCM 2,165.00p/£1,296.18m)

Hutchison China MediTech announced that it has initiated the first-in-human (FIH) Phase I clinical trial of HMPL-453 in Australia.  HMPL-453 is a novel, highly selective and potent small molecule inhibitor targeting fibroblast growth factor receptor (FGFR).  The first drug dose was administered on February 14, 2017. FGFRs are a sub-family of receptor tyrosine kinases.  Activation of FGFR signalling pathways is central to several biological processes, including angiogenesis, tissue growth and repair.  Given its complexity and critical role in a number of important physiological processes, aberrant FGFR signalling has been found to be a driving force in tumour growth, promotion of angiogenesis, as well as, conferring resistance to anti-tumour therapies.  To date, there are no approved therapies specifically targeting the FGFR signalling pathway. The FIH dose-escalation trial aims to evaluate the safety, tolerability, pharmacokinetics and preliminary anti-tumour activity of HMPL-453 in patients with advanced or metastatic solid malignancies, who have failed or are unable to tolerate standard therapies or for whom no standard therapies exist.  This open-label study consists of two preliminary phases, a dose-escalation (stage 1) and a dose-expansion stage (stage 2). In pre-clinical studies, HMPL-453 demonstrated superior potency and better kinase selectivity as compared to other drugs in the same class, as well as a favourable safety profile.


InnovaDerma (LON:IDP 137.50p/£15.42m)*

InnovaDerma, a UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, announced its unaudited half year results for the period ended 31 December 2016.  Actions carried out by the Company have begun to have a positive financial impact, with January 2017 delivering the highest monthly revenue ever recorded. This, together with the seasonality of the business being second-half weighted, means the Board is confident of delivering a robust second half of the year. Financial Highlights showed group revenue grew strongly by 125.5 percent to £3.19m (HY2015: £1.41m) driven by the successful penetration of the UK market through Superdrug and Direct To Consumer sales,  gross profit increased significantly by 131 percent to £1.84m (HY2015: £0.8m) and loss before tax of £0.15m (HY2015: £0.004m) as a result of one-off exceptional listing costs and strategic initiatives to expand and scale the business. At 31 December 2016, the Group carried a cash balance of £0.701m against an opening balance of £0.115m. There was a very strong start to the second half of the year with January 2017 delivering the highest ever monthly sales in what is considered to be the slowest month in the self-tanning industry, with the US performing in line with expectations after launching in November 2016 with the Group securing opening orders for Skinny Tan from Harmon Retail Chain (a subsidiary of Bed Bath and Beyond). Revenue and profit expected to grow in the second half driven by the above-mentioned strategic initiatives undertaken in 2016, the fast-growing DTC platform and expansion in the UK, Europe and US.


OneView Group (LON:ONEV 3.38p/£12.75m)*

OneView, a retail digital transformation software provider for in store customer service, announced that Hawk Investment Holdings Limited has agreed to provide an additional loan facility of $0.3m.  The Loan is unsecured and attracts an arrangement fee of 1 percent and interest is charged at 1 percent per month.  The Loan will be used to cover short term working capital needs and is expected to be repaid in the next three months from anticipated cash receipts. Given the substantial shareholding of Hawk, the Loan is deemed a related party transaction under the AIM Rules for Companies. The Directors consider that the terms of the Loan are fair and reasonable insofar as the Company’s shareholders are concerned.


ProMetic Life Sciences (TSX:PLI CAD2.41/CAD1,547.89m)*

ProMetic Life Sciences, the biopharmaceutical company with globally recognised expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development, announced that California Capital Equity LLC (CCE), has exercised 44,791,488 share purchase warrants at a price of $0.47 per share for total proceeds of CAD21.05m to the Corporation. The CEO of CCE stated that ProMetic represented a long term and strategic investment for CCE, and that CCE anticipate further collaborations going forward.


Proxama (LON:PROX 0.38p/£6.83m)

Proxama, the international digital and mobile commerce company specialising in end-to-end payment solutions for card issuers and processors, announced that a leading South African insurance and financial services provider, has signed a 5 year contract with Proxama Solutions Limited for the supply of in-house EMV card issuing, PIN management and card lifecycle management. Revenue earned from software licenses, services and support will be £0.365m in 2017 and a minimum of £0.691m in total over the five years, with additional payments if certain card capacity thresholds are achieved. Proxama will supply Payment Application Manager for EMV card issuing, card lifecycle and key management, PIN Manager for electronic PIN capture and distribution, and EMV Transaction Manager for EMV transaction authentication and post-issuance control of EMV cards, including PIN changes and risk management.


TP Group (LON:TPG 8.12p/£30.10m)

TP Group, the specialist services and engineering group, announced that it has reached an agreement to acquire the entire issued share capital of ALS Technologies Ltd and Flexible Software Solutions Ltd for a combined initial consideration of £1.25m, funded from the Group’s existing cash resources, on a debt free cash free basis. A further consideration of up to £1.5m will fall due on delivery of profit related earn-out targets over the first 20 months from completion. The maximum consideration payable for ALS and FSS, assuming all earn-out targets are met, is £2.75m. ALS, based in Wincanton, Somerset, provides systems engineering and assurance capability for mission support, flight control, combat systems and tactical information systems in the aerospace and defence markets. FSS, also based in Wincanton, develops safety-critical software for the defence and commercial sectors. ALS reported revenues of £4.3m and profits before tax of £0.5m in the financial year ended 30 September 2016. As at 30 September 2016, ALS had gross assets of £0.8m. FSS generated revenues of approximately £0.2m and was approximately breakeven in the year ended 31 December 2016. As at 31 December 2016, FSS had gross assets of approximately £0.1m.


Vernalis (LON:VER 30.75p/£155.57m)

Vernalis announced the achievement of a clinical milestone from its collaboration with Corvus Pharmaceuticals Inc had triggered a payment of $3m to Vernalis.  In February 2015, the Company licensed exclusive, worldwide rights to its adenosine receptor antagonist programme, CPI-444, for use in all therapeutic applications to Corvus, a US-based biotechnology company focused on developing novel immuno-oncology therapies. CPI-444 is a patented small molecule that is now being evaluated in a Phase 1/1b trial in patients with advanced cancers. It is the lead molecule in Corvus’ pipeline and is being developed both as a single agent and in combination therapy. The clinical trial utilizes an adaptive design that allows expansion of disease-specific cohorts upon reaching certain pre-defined endpoints. Corvus announced positive data from its Phase 1/1b study in January 2017, having achieved the clinical study protocol criteria for expansion in the cohort of patients with renal cell carcinoma with single agent CPI-444. The licensing deal has the potential for Vernalis to earn approximately $220m in milestones from all indications, subject to development, regulatory and sales milestones being achieved.  In addition, there are mid-single digit royalties payable if a product reaches the market, with the potential to reach low-double digit royalties in certain circumstances.


Versarien (LON:VRS 15.25p/£18.58m)

Versarien, the advanced materials group, announced the launch of the Company’s new graphene brand, Nanene. Nanene is manufactured using Versarien’s patent protected, mechanised exfoliation process. This process uses high shearing forces to separate the layers of graphite to sheets of graphene which are less than ten atoms thick, with the majority being less than five atoms thick, ensuring the properties of Nanene are superior to materials already established as the industry norm. Versarien has taken this process from the laboratory to scalable production by investments in labour and capital, increasing both throughput and yields.  The result of this is an independently verified, high quality graphene product, Nanene, produced in a manufacturing process that can be scaled to meet ever increasing customer demands. Nanene can be used in a variety of applications including in high-end applications in carbon fibre composites, such as the order announced on 29 November 2016, which was achieved with a tripling of manufacturing capacity on a short lead time.


*A corporate client of Hybridan LLP

01st February 2017

 Revolymer Development Agreement

TP Group Trading Update

Fitbug Customer Win

On this day:

1793—France declares war on the United Kingdom and the Netherlands

2003—Space Shuttle Columbia disintegrated during the re-entry of mission STS-107 into the Earth’s atmosphere, killing all seven astronauts aboard.

2013—The Shard, the tallest building in the European Union, is opened to the public.

Cambridge Cognition (LON:COG 84.00p/£16.76m)*

The neuroscience digital health Company announced it has received 510(k) clearance from the U.S. FDA to market its CANTAB Mobile product as a medical device in the U.S.. CANTAB Mobile is designed to detect clinically-relevant memory impairment in older adults at the point of care. It includes a computerised test of visuospatial associative learning (CANTAB PAL) to assess episodic memory with optional mood and functional assessments, which can help to detect symptoms of depression and problems with performing regular activities of daily living. The touchscreen test, which takes under 10 minutes to complete, can be self-administered using voiceover instructions in over 20 languages with automatic scoring, accounting for age, gender and education level. All results can be accessed in a simple to interpret, one-page physician’s report using a traffic-light output for memory and mood outputs. Since being classified as a European Medical Device in 2013, CANTAB Mobile has been used routinely to assess over 26,000 patients in the UK who had concerns about their memory or were considered by their physician to be at increased risk of dementia.


Craneware (LON:CRW 1,280.00p/£351.60m)

Craneware, the provider in Value Cycle solutions for the US healthcare market, provided an update on trading for the six months ended 31 December 2016. The Group announced continued growth and expects to report 15 percent increases in both revenue and adjusted EBITDA for the six month period ended 31 December 2016, building on the return to double digit growth reported in the year to 30 June 2016 and slightly ahead of expectations. Underlying sales continue to support this growth, with a particularly strong Q2, post the US Election result, and a healthy sales pipeline. The Group continues to invest for the future. In the period it has invested c$3m in its newly formed Employee Benefit trust and over $1m in future product development, including its cloud-based Trisus product suite and the new Craneware Healthcare Intelligence product suite. The Group’s cash balance at the end of the period was maintained at $45m (H116: $45m) after making these investments whilst continuing a progressive dividend payment policy. With the growth in the period, continued cash generation and a healthy sales pipeline, the Board is confident in meeting market expectations for the full year.

Fitbug (LON:FITB 0.186p/£2.24m)*

Fitbug, the digital wellness technology provider for corporate organisations,  announced a customer win with a global financial services group in Asia. The customer will use Fitbug’s digital wellness services to help maximise employee performance, with the end goals of improving employee engagement, and reducing absenteeism and risk of chronic illness. Fitbug has secured an initial 1-year corporate wellness programme, which includes ongoing service revenue, together with an order for 14,000 devices. The devices were shipped in December and the programme is rolling out early this year. The Company also announced that for year ended 31 December 2016, revenue for the year is expected to be slightly behind that for the corresponding period last year, however the mix of revenue is expected to have changed to over 90 percent of 2016 revenue from corporate customers. Losses before tax for the full year are expected to be in line with the Board’s expectations. Overall the Group’s turnaround strategy is expected to have reduced losses for the full year by almost 50 percent in comparison with 2015’s audited loss before taxation of £6.53m, with substantial cost savings made in the second half which will continue to benefit Fitbug through 2017 and beyond. The Company’s balance sheet is also expected to show an improvement over the FY15 balance sheet as a result of its £2.61m fundraise and the conversion of £8.4m of the Group’s core debt into equity, which was completed in July 2016. Moreover, the Company successfully completed a cash placing to raise £1m with the intentions to use the funds raised from the Placing for general corporate purposes. Moreover, the Company also announced a strategic partnership with Olympic gold medallist Sally Gunnell, OBE, to help promote and expand its digital wellness offering to businesses in the UK. The partnership combines Sally’s programme and Fitbug’s scalable digital platform to offer a rich corporate health and wellness proposition and to generate new growth opportunities.


IG Design (LON:IGR 244.50p/£153.91m)

IG Design Group, a designer, innovator and manufacturer of gift packaging, greetings, stationery, creative play products and giftware, announced an update for the third quarter, which covers the Group’s key Christmas trading period to 31 December 2016. The Group reported that following the strong performance reported over the first six months ending 30 September 2016, trading has continued to be strong during the Christmas period. Results remain in line with the upgraded expectations announced in November 2016, with all regions trading profitably. The Board remains confident in the full year outlook of the Group.


InnovaDerma (LON:IDP 130.5p/£22.10m)*

InnovaDerma, a UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, provided its trading update for the six months ended 31 December 2016. The Board announced that the Group’s first half year financial performance has been encouraging and revenues are expected to show growth of just over 80 percent year-on-year on a constant currency basis to approximately £3m. The increase in revenue has been driven by the Company’s expansion strategy in the UK with the strong performance of Skinny Tan, which was launched in February 2016 through Superdrug. The Group has undertaken significant corporate activity in the first half including listing on the Main Market of the London Stock Exchange, opening up the US market, and the transition of its manufacturing to the UK. One off costs associated with these activities will be absorbed into the first half of the financial year. The Company also announced the appointment of Kieran Callan as a Non-Executive Director with immediate effect, succeeding Garry Lemair who stepped down from the Board on 10 January 2017. Mr Callan has more than 30 years of experience in the FMCG and retail sector with a strong track record of devising and implementing strategies for growth companies.  Moreover, the Company also announced that it has raised £0.8m before expenses through a placing by Hybridan LLP of 727,273 new ordinary shares at a placing price of 110 pence per share. The Company has continued to receive strong demand for its products and therefore the key funding priority is to build stock levels at a faster pace to fulfil any increase in demand from various markets in the second half of our financial year in 2017.


MediaZest (LON:MDZ 0.102p/£1.35m)*

The Board reported the unaudited results for the six months ended 30 September 2016 for MediaZest plc. The financial review showed revenue for the period was down 8 percent to £1.47m, gross profits were up 2 percent to £0.63m leading to an EBITDA profit of £4,000 (2015:£8,000). Highlights of the six month period included delivery of several new projects with existing clients such as Hyundai, HMV, Kuoni, Rockar, Diesel, Farrow & Ball and Ted Baker (combined revenue in the period £0.6m), but also new business wins with Halfords, Virgin Media and LG (combined revenue in the period £0.17m). Further afield, in May 2016 the Company successfully installed a high resolution video wall for Ugg, part of the Deckers group, in their new flagship store in Florida. Improvements in recurring revenue streams continue, and coupled with tight cost control and new business wins for the second half of the current financial year, the Board is looking to deliver improved results for the full year ended 31 March 2017. However, this is subject to the acquisition, timing and delivery of certain upcoming key projects.


Mercia Technologies (LON:MERC 48.5p/£107.06m)

Mercia Technologies, a national investment group focused on the creation, funding and scaling of innovative technology businesses with high growth potential from the UK regions, announced a conditional placing at 46p per Placing Share. The Placing Price represents a discount of approximately 8.9 percent to the closing mid-market price of 50.5p per Ordinary Share on 30 January 2017. Once completed, the gross proceeds from the Placing will be approximately £40.0m. The primary purpose of the Placing is to accelerate the development of the Group’s existing portfolio companies and to capture the opportunity to invest in new direct investment opportunities across its target sectors nationally and specifically within the UK regions. The number of opportunities has been significantly enhanced through the acquisition of Enterprise Ventures Group Limited in March 2016 which took the number of investee technology companies in the Group’s third party managed funds from circa 35 to circa 150.


Petards (LON:PEG 25.10p/£8.98m)*

Petards, the software developer of advanced security and surveillance systems, announced that it has secured a 3 year contract renewal from the Air Platform Systems Platform Protection team, part of the UK Ministry of Defence, worth in excess of £1.6m for the support of ALE 47 and M147 Threat Adaptive Countermeasures Dispensing Systems which are fitted to Lynx, Puma, Chinook, Merlin, and C130J aircraft platforms. The contract is effective from 1 January 2017 and runs until 31 December 2019 with an option, which if exercised, would extend the contract for a further two years until 31 December 2021. The Company also announced that it has been awarded a contract to supply Siemens Mobility Division with Petards eyeTrain systems. The order is worth approximately £2m. Engineering activities will commence immediately with the first equipment deliveries to be made at the end of the first quarter 2017 and it is anticipated that the project will be completed during 2018.

ProMetic Life Sciences (TSX:PLC CAD2.11/CAD1,315.01m)*

ProMetic Life Sciences, announced that its orally active lead drug candidate, PBI-4050, has been issued a Promising Innovative Medicine (PIM) designation by the UK Medicines and Healthcare Products Regulatory Agency for the treatment of Alström Syndrome (AS). A PIM designation is an early indication that a medicinal product is a promising candidate for the Early Access to Medicines Scheme, intended for the treatment, diagnosis or prevention of a life-threatening or seriously debilitating condition with the potential to address an unmet medical need following an early review of the clinical data by the agency. The Company also announced that its orally active lead drug candidate, PBI-4050, has been granted an orphan drug designation status for the treatment of AS by the European Commission. The European Medicines Agency determined that the intention to treat AS with PBI-4050 was justified based on the preliminary clinical data generated in AS patients showing an improvement in liver fibrosis.  ProMetic is currently investigating the effects of PBI-4050 on multiple organs in AS patients in an ongoing open label Phase 2 clinical study in the UK.


Revolymer (LON:REVO 33.50p/£26.33m)

Revolymer announced that its wholly owned US subsidiary, Itaconix Corporation, has signed a joint development agreement with Akzo Nobel Chemicals International B.V. to advance commercial collaborations in certain applications for the Itaconix itaconic acid polymer technology platform. The agreement establishes a broad operating framework for the parties to jointly identify, develop and commercialise new polymers using Itaconix’s patented technology. This innovative technology enables the production of polymers from renewable ingredients, which fits closely with their Planet Possible sustainability agenda of doing more with less, these bio-based polymers offer unique properties in applications essential to our everyday lives, ranging from water quality to cleaning and hygiene.

 TMT Investments (LON:TMT $1.65/£46.5m)*

TMT Investments, the venture capital Company investing in high-growth, internet-based companies across a variety of core specialist sectors, announced that its portfolio company Pipedrive, Inc. has completed a US$17m Series B equity financing round, led by Atomico, with participation from Bessemer Venture Partners and Rembrandt Venture Partners. The transaction represents a revaluation uplift of approximately US$4.08m (or 132 percent) in the fair value of TMT’s investment in Pipedrive, compared to the previous announced amount as of 30 June 2016, and is equivalent to approximately 14.7 cents in additional net asset value per TMT share.

TP Group (LON:TPG 6.38p/£25.88m)

TP Group, the specialist services and engineering group, announced the following trading update. The Board reported that, following the trading update issued on 14 December 2016, the Group will report results for the financial year ended 31 December 2016 in line with current market expectations. The Group closed the year with a cash balance ahead of expectations at £9.2m. This is an improvement of £2.2m over the cash balance at the end of 2015.  The Board is confident that the Group can continue its progress in 2017 as it pursues a strong pipeline of future business opportunities alongside a growing order book position.

*A corporate client of Hybridan LLP

07th December 2016

 Crossword brings in the money

TMT on a roll

Toople Hires

Ace Liberty & Stone (ISDX:ALSP 4p/£39.3m)*

Ace Liberty and Stone, the active property investment Company, capitalising on commercial property investment opportunities across the UK, announced that the Company has drawn down a secured loan of £13.75m.  The facility is provided by Lloyds Bank Commercial Banking and has been used to complete the purchase of 1-5 Upper Market Square, Hanley (announced 5th October 2016), as well as to refinance properties owned at Marsh Mills, Plymouth; Shildon House, Gateshead; Bridge House, Dudley; Fawcett House, Sunderland and Hillcrest House, Leeds. The Company also announced that in 2016 Daniel Waylett, a shareholder, agreed to purchase the entire share capital of Ace (Sloane) Limited, the 100 percent subsidiary of the Company, which owns Colebrook Court, Sloane Avenue. The consideration totalled £1.55m for the disposal. The purchase of Colebrook Court was announced on 17 April 2016 for £1.5m in issue of new shares. The sale will release cash for further investment in new commercial properties.

Capital for Colleagues (ISDX:CFCP 62.5p/£6m)

Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business sector, announced an update regarding its existing investee Company, Hire & Supplies Limited (H&S), which is engaged in tool and plant sale and rental from branches in the west of Scotland.  The £0.2m fixed term loan from Capital for Colleagues to H&S and the 100,000 Convertible Preference Shares of H&S held by the Company have been redeemed through the allotment to the Company of ‘A’ Ordinary Shares of £1 each in H&S with a value of £0.3m. The ‘A’ Ordinary Shares have preferential rights with respect to ongoing dividends and with respect to capital value in the event of the occurrence of certain exit events.


Crossword Cybersecurity (ISDX:CCS 195p/£6.1m)*

Crossword Cybersecurity, the technology commercialisation Company focusing exclusively on the cyber security sector, announced that the Company has successfully raised gross proceeds totalling £1.4m at a Placing Price of £1.90 per share. As part of the Subscription, Tom Ilube, Chief Executive Officer and Dr David Secher, Non-Executive Director, agreed to subscribe for new Ordinary Shares to raise proceeds of £260,995 as further detailed below.

Digital Barriers (LON:DGB 36.5p/£60.68m)

Digital Barriers, the specialist provider of visually intelligent solutions to the global surveillance, security and safety markets, announced that it has secured contracts across EMEA and APAC. The total value of these contracts is approximately £1.75m and includes: First major contract win for body-worn video surveillance, the multi-year contract, with a major Asia Pacific law enforcement agency, is valued at approximately £1.0m; €0.35m award for immediate delivery under multi-year counter terrorism framework agreement for the Group’s facial recognition solution with European Ministry of Defence worth up to €3.5m and initial contract valued at £0.4m with a flagship Middle East government agency for EdgeVis Live surveillance solutions to enhance operational capabilities.


Physiomics (LON:PYC 0.02p/£1.23m)*

Physiomics, the Oxford based systems biology Company, announced that it has been notified of Innovate UK’s intention to award the Company a grant for its proposed project “Decision Support Systems For Stratified Cancer Treatment”, as part of Innovate UK’s Biomedical Catalyst 2016 Feasibility Study Competition, co-funded by Scottish Enterprise and the Medical Research Council. In line with the Company’s strategic objective to explore the personalised medicine market set out in the full year results RNS published on the 27th October 2016, the objective of the project is to create a prototype decision support system to improve cancer care by helping medical professionals make treatment decisions based on patient specific data. A Biomedical Catalyst Feasibility Study grant covers 70 percent of the costs of projects up to £0.2m in value.  The award of the grant, including the precise level of funding, remains subject to the submission of detailed project plans as well as a financial review by Innovate UK and the definitive award is likely to be made in Q1 2017.  Accordingly, whilst the directors are confident that the grant will be issued there can be no guarantee it will be, until the plans are approved. Further announcements will be made in due course. The Company also announced that it is now entitled to a payment from Sareum Holdings plc for a three month modelling project conducted by the Company in 2010 in support of Sareum’s cancer drug joint research program with The Institute of Cancer Research (ICR) and Cancer Research Technology Limited (CRT), as originally announced by RNS on 16th March 2010.


TMT Investments (LON:TMT $1.875/$52m)*

TMT Investments, the venture capital Company investing in high-growth, internet-based companies across a variety of core specialist sectors, announced that The Climate Corporation, a subsidiary of Monsanto Company, has acquired VitalFields, one of its portfolio companies. The acquisition by Monsanto represents the ninth profitable exit by TMT from its investment portfolio since its admission to AIM in December 2010. Incorporated in Tallinn, Estonia, WeatherMe OÜ, trading as VitalFields, simplifies the many farming tasks involved with spraying, fertilising and sowing thanks to its app and web interfaces. Examples of the multiple capabilities that VitalFields offers to farmers include plant disease and growth phase modelling (tracking climatic patterns and analysing farmer’s input to assess risks) and farm management functionality (from planning and managing farm activities to stock management and P&L reports). TMT originally invested €0.1m in the form of a convertible note in VitalFields in December 2013, which it subsequently converted into equity when VitalFields raised further capital in 2015.


Toople (LON:TOOP 5.25p/£5.62m)

Toople, a provider of bespoke telecom services to UK SMEs, announced the appointment of Mark Evans as Chief Operating Officer effective as of 21 November 2016. Mark has more than 14 years’ industry experience, having previously held senior positions at 02. He joined Toople shortly after the IPO and has been leading the Company’s digital omnichannel sales and contact centre strategy since launch. Mark will now lead the Toople customer engagement functions both from a people, software and channel marketing perspective, ensuring back office process is best in class and focusing on delivering a great customer experience to small businesses that is aligned to their needs. The Company also announced that having successfully delivered the integration of the Group’s proprietary bespoke telecoms platform, Merlin, into the business, Dave Breith has now come to the end of his consultancy agreement with Toople. Toople owns the full Intellectual Property Rights for this platform. Dave’s last day with the Company will be on 18 November 2016 .

Warpaint London (LON:W7L 131.75p/£83.58m)

Warpaint London, a specialist supplier of colour cosmetics and owner of the W7 brand, announced the admission of its ordinary shares to trading on the AIM of the London Stock Exchange. Dealings in the ordinary shares will commence at 8.00am under the ticker “W7L”. Oversubscribed placing raising gross proceeds of £23m with institutional and other investors, including Board Directors, at a placing price of 97 pence per ordinary share. Warpaint London has a market capitalisation of approximately £62.6m at the Placing Price. The Directors believe that the Admission to AIM will raise the Company’s profile, enhance W7’s brand awareness and provide investment to accelerate the growth of the business, as described in the Admission Document.


10th November 2016

 Sareum gets its results

Avacta gets a collaboration

Petards on the right tracks

Avacta Group (LON:AVCT 92.20p/£63.73m)

Avacta Group, the developer of Affimer® biotherapeutics and research reagents, announced a research collaboration with Memorial Sloan Kettering Cancer Center to evaluate the use of Avacta’s Affimer technology in novel CAR-T cell-based immunotherapy. CAR-T immunotherapy is a form of cancer treatment in which the patient’s own immune system T cells are modified to give them greater potency with which to attack cancer cells. Treatments using these engineered immune cells have generated promising responses in patients with advanced cancers and CAR-T immunotherapy has become an intense area of research, clinical development and investment. The simple structure and biophysical properties of Affimers potentially provide significant advantages over antibody fragment technology currently used in CAR-T cell modification and the collaboration announced that it is intended to demonstrate a new class of CAR-T cell therapy that incorporate Affimer molecules. As part of the collaboration, Avacta will develop Affimer molecules that bind different regions of CD19, a surface protein specific to B-cells involved in lymphomas. Under the terms of the agreement, the ownership of the results generated directly as part of this collaboration will be shared between Avacta and MSK.

Conroy Gold & Natural Resources (LON:CGNR 25.02p/£2.81m)*

Conroy Gold and Natural Resources, the gold exploration and development Company focused on Ireland and Finland, announced further results from its recent drilling programme on the Clontibret deposit at the southwestern part of the Company’s Clay Lake – Clontibret gold target. The results extended a known gold zone within the Company’s resource model where a JORC compliant resource estimate using a minimum mining width of 2 metres and a cut-off grade of 0.6g/t gold has over 600,000 ounces gold at 1.6g/t gold. The drilling extended this gold zone 30m along strike to the south of its previous extent as well as confirming continuity of other known gold zones. High grades and wide intersections included 0.25m at 35.4 g/t gold and 5.50m grading 4.1 g/t gold overall in this extended gold zone. This drilling focused on further upgrading the interpretation in an area where previous drilling had indicated the potential for significant width and gold grades.

Fitbug (LON:FITB 0.22p/£2.65m)*

Fitbug, the technology developer and digital wellness pioneer, announced that Heidi Steiger, a seasoned operating executive, has joined the Board as a Non-Executive Director with immediate effect and that Richard Goodlad has joined the board as full time Finance Director. Additionally, the Company announced that Tyler Tarr, who joined the Board as part time Finance Director on 29 June 2016, has stepped down from the Board following a successful handover to Richard.

Petards (LON:PEG 19.75p/£6.98m)*

Petards, the software developer of advanced security and surveillance systems, announced that it 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.

Physiomics (LON:0.0216p/£1.20m)*

Physiomics plc, UK based systems biology Company, announced its results in the year ended 30 June 2016. The turnover of the Company increased 26 percent to £297,120 (2015: £235,486), with a loss after net operating expenses (excluding share-based payments and operating exceptional costs) decreasing by 6 percent to £371,381 (2015: £395,329) and operating losses increasing by 4 percent to £431,561 (2015: £414,755). This year, Physiomics continued to build out its client base and extend its modelling and simulation services relationships with key existing clients.  In addition, Physiomics appointed a new Chief Executive Officer with significant deal making experience. The Company, during the period, also signed a contract with a new speciality pharma customer to carry out PK/ PD modelling and later in the year announced a first extension to this contract; won a further large pharma customer (their 4th) for Virtual Tumour Pre-Clinical; and signed three further projects as part of an on-going collaboration with a global pharma which we first started working for in 2012.

ProMetic Life Sciences (TSX:PLI CAD2.66/CAD1,586.54m)*

ProMetic Life Sciences announced that it has closed the acquisition of all the issued and outstanding common shares of Telesta Therapeutics, Inc, by way of a plan of arrangement under the Canada Business Corporations Act for a consideration of $0.14 per Telesta common share payable in ProMetic common shares. The number of common shares to be issued by ProMetic is based on the volume-weighted average closing price (VWAP) of ProMetic’s common shares for the five trading days prior to the closing date of the Acquisition. At the end of trading on the Toronto Stock Exchange on Friday, October 28, 2016, the 5 day VWAP of ProMetic’s common shares was $2.98. Accordingly, each Telesta common share was acquired for 0.04698 ProMetic common share.

RM2 (LON:RM2 27.4p/£111.57m)

RM2, the sustainable pallet innovator, announced that it has received an exclusive commitment from Pactiv LLC, a wholly-owned subsidiary of Reynolds Group Holdings Limited, to purchase and deploy the Company’s BLOCKPal pallets for all non-wood pallet uses throughout its organisation. Pactiv is a leading US manufacturer and distributor of food packaging and foodservice products and it adds to the Company’s growing list of clients. The terms of the contract anticipate Pactiv purchasing and deploying hundreds of thousands of BLOCKPal pallets in stages across various business units and geographical areas.

Sareum Holdings (LON:SAR 0.85p/£22.23m)*

Sareum Holdings, the specialist cancer drug discovery and development business, announced its final results for the year ended 30 June 2016. Financial highlights showed net assets at year-end were £1.86m (2015: £1.86m), of which £1.25m comprised cash at bank (2015: £1.48m), plus £0.48m unspent investment in the Chk1 project (2015: £0.21m). Loss on ordinary activities (after tax credit) of £1.05m(2015: loss of £1.26m). The Company also, during the period, received £111k of the £140k funding award for TYK2 cancer studies from Innovate UK Biomedical Catalyst; the remainder received post year-end. Operational highlights showed Chk1 clinical trials applications for two clinical trials, one as a single agent and the other in combination with standard of care chemotherapies, submitted, approved and opened at The Royal Marsden Hospital. TYK2 lead inhibitors show good activity in disease models of rheumatoid arthritis and colitis, and compare favourably with a marketed JAK-family kinase inhibitor. Post year end highlights showed Chk1 inhibitor cancer drug candidate CCT245737 (renamed PNT737) licensed to ProNAi Therapeutics, Inc. (NASDAQ: DNAI) by co-investment partner, the CRT Pioneer Fund. Sareum will receive an upfront payment of US$1.9m, potential future milestone payments of up to US$88.4m, plus a share of any sales royalties, and repayment of approximately £300k in unspent funds previously invested in the collaboration.

Venn (LON:VENN 24.25p/£15.22m)*

Venn Life Sciences, a growing Contract Research Organisation providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced on 4 October 2016 that its wholly owned subsidiary, Venn Life Sciences Limited, had entered into a conditional agreement under which it and Lynchwood Nominees Limited, as custodian for the Helium Rising Stars Fund, would sell the entire issued share capital of Innovenn UK Limited for a total consideration of up to £4.74m. The Company also signed a new contract worth €2.5m with Sedana Medical AB. Venn will carry out a randomised, controlled, open label Phase III study to confirm efficacy and safety of sedation with isoflurane in ventilated ICU patients. This trial is confined to patients in Germany and commences immediately.

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21st October 2016

 Petards on the right tracks

Sareum gets its patents

RM2 gets stacking


Applied Graphene Materials (LON:AGM 173.00p/£37.39m)

Applied Graphene Materials, the producer of specialty graphene materials, announced its full year results for the year ended 31 July 2016. Operational highlights showed first production order received from Century Composites, accelerated product development programme with James Briggs with an expectation of product launch in early 2017 and a new collaboration project with Sherwin-Williams Protective & Marine Coatings. Independent test data showing significant benefits of including the Group’s graphene nanoplatelets in coatings. The financial overview showed total revenues of £0.3m (2015: £0.1m), EBITDA Loss of £4.2m (2015: loss of £3.9m) and a Loss before tax of £4.5m (2015: loss of £4.0m). Cash at bank was £7.7m (2015: £4.7m).

Cambridge Cognition (LON:COG 71.00p/£14.52m)*

The neuroscience Company, Cambridge Cognition Holdings, which develops and markets near patient technologies to facilitate the development of treatments for neurological disorders, announced a series of new contracts worth over £0.25m to assess, through CANTAB Connect, the abuse potential of investigational drugs in a new market application for the Company. Cambridge Cognition has become the leading provider of Human Abuse Liability (HAL) assessment technology, helping the Company’s drug development partners to achieve multiple FDA approved abuse deterrent labels. To date the Company has signed 35 HAL contracts following the launch of the CANTAB Connect Abuse Liability product (vs. 8 before 2014), with revenues totalling in excess of £3m (vs. £0.6m before 2014) in a market which is expected to continue to grow.

Cohort (LON:CHRT 347.75p/£145.41m)

Cohort, the independent technology group, announced that its subsidiary MASS has been awarded a nine-year extension to its managed IT service contract for the Sentry Whole Life Support Programme (WLSP) at RAF Waddington. Valued at around £12m, the scope of the support contract now includes replacement of the Maintenance, Repair and Overhaul software and adds an Enterprise Performance Management solution. The team is led by Northrop Grumman with MASS, AAR Corp and Cobham Aviation Services partnering together to support and maintain the availability of the UK’s fleet of Airborne Warning and Control System (AWACS) aircraft.  Northrop Grumman commented that this nine-year extension recognises MASS’s agile response to ever-changing needs and the provision of a first-rate, value for money service.

InnovaDerma (LON:IDP 122.5p/£12.5m)*

InnovaDerma, a UK developer of ‘at-home’ and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, provided an update on trading ahead of its Final Results for the twelve-month period ended 30 June 2016. The Board announced that it expects revenue and profits for the full year to 30 June 2016 will be significantly higher than the previous year, driven by underlying organic growth across its product range and the contribution of the Skinny Tan business, which was acquired in May 2015. The Group expects to report revenues of approximately AUD8.3m (£4.2m) representing a significant increase of more than 800 percent compared to the previous year FY 2015: AUD1.05m (£0.525m). It expects to announce a maiden net profit as a result of the strong top line growth. The Group has maintained a robust financial position with little external debt and a strong cash position. InnovaDerma significantly expanded its international distribution and retail network and this has been a key driver to its growth and strong financial performance. As at 30 June 2016, the Company has in excess of 2,500 retail points (FY2015: 250) in seven countries.

Kibo Mining (LON:KIBO 7.33p/£26.76m)

Kibo Mining, the Tanzania focused mineral exploration and development Company, announced that it has reached agreement with SEPCO III on the total direct development cost related to the MCPP (Mbeya Coal to Power Project). It was agreed that the direct development cost incurred on the MCPP over the past four years will be considered for determining the final development cost refund amount. After considering all information provided in this regard, the final amount is $10.9m, which was accepted by both parties as a fair reflection of the MCPP development cost over the past four years. Based on this, the total amount refundable to Kibo constitutes an amount of $5.5m, i.e. 50 percent of the total development cost as per the terms of the Agreement between SEPCO III and the Company, announced on the 25 August 2016. As Kibo has already received an advance of $1.8m, the total outstanding amount payable to Kibo will be £3.7m.

Milestone Group (LON:MSG 1.30p/£10.02m)*

Milestone, the provider of digital media and technology solutions, announced that it has agreed to issue 92,333,332 new ordinary shares of 0.1 pence per share in the Company, subject to admission to AIM, raising £1.385m before expenses, at a price of 1.5 pence per share. The proceeds of the Placing will be used for marketing of the newly launched Alchemy e-media platform, recruiting key staff, and additional development of the Passion Project platform.

Petards Group (LON:PEG 18.50p/£6.43m)*

Petards, the software developer of advanced security and surveillance systems, announced that it has been awarded a contract to supply Great Western Railway with Petards eyeTrain systems. The new contract, which is worth approximately £6m, is for the design, development, supply and installation of eyeTrain systems to be fitted to Class 165 and 166 Diesel Multiple Units trains.  The developed systems add substantial new software driven functionality to Petards’ existing eyeTrain solutions. Engineering development is already underway and will make a contribution to 2016 revenues. This is expected to be completed by the third quarter of 2017 when deliveries of the integrated systems will commence with scheduled completion by the end of 2018.

ProMetic Life Sciences (TSX:PLI CAD3.21/CAD1,997.47m)*

ProMetic Life Sciences announced that its Phase 2 clinical trial in patients with metabolic syndrome and type 2 diabetes has been completed and has met its primary and secondary endpoints. In addition to safety and tolerability, the study was designed to evaluate the effect of PBI-4050 on metabolic syndrome parameters as well as on pro-inflammatory/fibrotic and diabetic biomarkers in blood and urine. The pharmacological activity of PBI-4050 was confirmed through the clinically significant reduction in HbA1c between screening and Week 12. For instance, the 15 patients with a screening HbA1c ≥ 7.5 experienced a mean decrease of – 0.75% (p = 0.0004) while the 9 patients with a screening HbA1c ≥ 8.0% experienced a mean decrease of – 0.9% (p = 0.007). The 10 patients who participated in the study’s 12 week extension had a mean HbA1c of 7.7 at screening and experienced a reduction of – 0.8% at week 12: this reduction was maintained at week 24.

RM2 (LON:RM2 25.92p/£103.92m)

RM2, the sustainable composite pallet innovator, announced that it has received a commitment from a global leader in temperature-controlled warehousing and logistics to the food industry, for the deployment of RM2 pallets and management of the Company’s pallet pool.  The deployment of pallets will start immediately and based upon the success of the initial locations, the business is projected to encompass the Company’s North American network. It is anticipated that the agreement will require over 200,000 pallets.

 Sareum Holdings (LON:SAR 1.1p/£29.15m)*

Sareum, the specialist cancer drug discovery and development business, announced that the Japan and Singapore Patent Offices have issued notifications that patents will be granted for inventions associated with Sareum’s Aurora+FLT3 kinase inhibitor programme. These patents* describe compounds that inhibit the activity of Aurora and FLT3 kinase enzymes and the medical use of these compounds, particularly in the treatment of cancer. The granting of this patent in Japan means that Sareum will now have approved patent protection in all major territories for its Aurora+FLT3 kinase inhibitor programme. The Company announced that similar patents were to be granted in the USA and Europe in September 2015 and in China in August 2016.

Vianet Group (LON:VNET 100.50p/£28.11m)

Vianet Group, the leading provider of real time monitoring systems, data management services and business intelligence for the leisure and vending sectors, provided the following trading update ahead of the Group’s results for the half year ended 30 September 2016, which are scheduled for release on Tuesday, 6 December 2016.Trading for the Group’s continuing businesses for the first half of the current financial year was ahead of the same period last year, achieving good growth in line with the Board’s expectations. Against that background, the Board intends to declare a maintained interim dividend of 1.7p per share. The Group’s UK core beer flow monitoring operations, including iDraught, has continued to strengthen its market position and maintained its contribution, and encouragingly there are signs that the rate of pub closures in the sector has slowed down. Vending Telemetry has continued to extend its penetration of the European market which has helped deliver first half growth, with good ongoing prospects.

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5th October 2016

Petards on the right tracks

Sareum gets its patents

RM2 gets stacking

Ace Liberty & Stone Plc (LON:ALSP 4p/£39.3m)*


Ace Liberty and Stone, the active property investment Company, capitalising on commercial property investment opportunities across the UK, announced its Final Results for the year ended 30 April 2016. Highlights showed the Group’s property holdings have grown 23 percent during the year from £23.96m to £29.49m. Total equity attributable to owners has increased by 45 percent in the year to £17.94m (2015: £12.41m). Consolidated Revenue for the year increased 70 percent to £2.04m (2015: £1.2m). Profit before tax decreased to £0.6m (2015: £1.06m) as a result of a reduced portfolio valuation as  at 30th April 2016. Profit-yielding sales of properties including the final holding in Telephone House, Sheffield for £4m  and Princegate House, Doncaster (excluding car park) for £0.85m. The sale of Hume House has been agreed at £3.55m for completion in December 2016. The Company also announced a further addition to the Company’s portfolio with the purchase of 1-5 Upper Market Square, Hanley. The contracts were exchanged on 8 August 2016 by Ace (Hanley) Limited, a 100 percent subsidiary of the Company, for the sum of £9m, with completion on 8 November 2016. The property is located in a prime position in Hanley, which is the primary commercial centre of Stoke-on-Trent. It is comprised of two retail units arranged over basement, ground and three upper floors, totalling 59,358 square feet. 74 percent of the letting income comes from Boots Limited, with 24 years unexpired and remaining income from National Westminster Bank for 12 years.

Cambridge Cognition (LON:COG 83.00p/£17.27m)*


The neuroscience Company which develops and markets near patient technologies to facilitate early intervention and development of treatments for neurological disorders, announced the signing of two major contracts using the Company’s CANTAB Connect technology. The contracts totalling US$3.67m (£2.82m) are with US biopharmaceutical companies for late stage clinical trials and will contribute US$1.07m(£0.82m) to reported revenue in the second half of 2016. The award of the contracts was expected and so the outlook for the current year remains unchanged.

Conroy Gold and Natural Resources (LON:CGNR 26.5p/£3.05m)*


Conroy Gold and Natural Resources, the gold exploration and development Company focused on Ireland and Finland, announced the latest results from its drilling programme on the Clontibret gold deposit at the southwestern part of the Company’s Clay Lake – Clontibret gold property. High grades and wide intersections included 0.50m at 25.85 g/t gold in one of the already known gold zones and 5.75m grading 5.04 g/t gold in one of the newly discovered gold zones. Five new gold zones (lodes) were discovered during the latest drilling. Gold intersections were also made in four known gold zones in the area, confirming continuity of these lode zones. The deposit remains open to depth and in all directions. The drilling focused on upgrading, at this stage to a depth of 200m, an area where previous drilling had indicated the potential for significant widths and gold grades.

 Fitbug Holdings (LON:FITB 0.24p/£2.93m)*


 Fitbug Holdings , the provider of corporate wellness solutions and services, announced its Interim Results for the six months ended 30 June 2016. Implementation of turnaround strategy away from retail to Corporate Wellness has been underway, total sales of £0.73m (2015: £0.99m), with B2B sales of £0.56m (2015: £0.37m) leading to gross profit of £0.41m (2015: £0.53m) and a loss before tax £(1.6m) (2015: £(3.22m)). Good progress has been made on Corporate Wellness offering made with three strategic partners and also there has been a significant reduction in permanent cost base and engagement of outsourced service providers for development of platform and ancillary services (IT, logistics, finance admin).

 ITM Power (LON:ITM 20.59p/£44.55m)


ITM Power, the energy storage and clean fuel Company, announced the completion of the 700 bar upgrade to the M1 Rotherham hydrogen refuelling station (HRS) funded by The UK Government, Office of Low Emission Vehicles (OLEV). On 28 March 2015, the Company announced that it had been awarded a total of £2.89m by the HRS infrastructure Grants Scheme, run by OLEV. The award was to build two new HRS in London, sited with strategic partners and for the upgrading of four existing ITM Power refuelling stations including the M1 Rotherham HRS. The HRS, originally funded by Innovate UK, is located at the Hydrogen Mini Grid at the Advanced Manufacturing Park in Rotherham just of J33 of the M1, close to the junction with the M18. The HRS is an important strategic part of the UK hydrogen infrastructure enabling vehicles from London to access the North of England. Using the existing electrolyser to generate hydrogen from an on-site wind turbine, the original 350 bar dispenser has been upgraded to a new BOC/Linde system capable of dispensing hydrogen at both 700 and 350 bar.  The higher pressure of 700 bar satisfies the requirements of a broader range of vehicles and enables fuel cell electric vehicles such at the Toyota Mirai and Hyundai ix35 to achieve their full driving range of over 300 miles.  New and existing customers will also benefit from automated payment facilities.

 MediaZest (LON:MDZ 0.15p/£1.89m)*


MediaZest, the creative digital audio visual Company, updated shareholders with more detail on recent business wins. The Group confirmed that the new Rockar project noted in the results announcement of 12 August 2016 relates to audio visual design, build and installation services at their new showroom at Westfield Stratford in collaboration with Jaguar Land Rover. This follows previous work with Rockar in conjunction with Hyundai, which began in 2014, with a first physical site at Bluewater shopping centre in Kent followed by a second Rockar-branded store in Westfield Stratford – a project for which the Company also completed the audio visual design, build and installation services. Separate to this, the Company announced over £250,000 of new business wins secured since 12 August.

 Netcall (LON:NET 54.35p/£40.44m)


Netcall, a leading customer engagement software provider, announced that it has secured a minimum £1.5m contract with a FTSE 250 Company. The Company is an existing customer of Netcall’s business process automation product. The new five year contract is for the delivery and use of Netcall’s Liberty omni-channel Contact Centre, Unified Communications, Workforce Optimisation and Customer Experience Manager solutions. Each module will be delivered using the Liberty Software as a Service (SaaS) model. Netcall’s SaaS based Liberty solutions have been selected by the customer as part of a major transformation project for their existing contact centre and customer support infrastructure. They will enable the customer to improve internal operations, performance and productivity, bringing together multiple service lines into a single virtual customer engagement platform, while creating a better customer experience and driving competitive differentiation. The customer also recently signed a significant extension agreement for Netcall’s business process automation product which will continue to run as a premise-based solution. This demonstrates the Liberty platform’s strength as a blended platform, catering for both the rapidly growing SaaS market while continuing to provide sophisticated solutions for customers requiring a premise-based installation.

Physiomics (LON:PYC 0.024p/£1.45m)*


The Company announced that it has completed a placing, conditional only on Admission, to raise £555,000 at a price of 0.025p per share. There was strong investor interest in the new Company management and in the clinical version of the Company’s Virtual Tumour technology.  Based on investor discussions, they decided not to proceed with the acquisition of BioMoti Limited which was announced by previous management on 31st March 2016.  Shareholders were more supportive of management focusing 100 percent of their efforts on growing the revenues and creating a path to profitability in the core modelling and simulation business at this point. There may be opportunities in the future to engage with BioMoti and other companies with interesting pipelines that Physiomics can optimise, and the Company remains committed to exploring these options.  In the meantime, the proceeds of the placing will be used to conduct and accelerate business development activities related to the Company’s core modelling and simulation business, in particular the clinical version of its Virtual Tumour technology which enables predictions to be made of the outcome of human trials based on pre-clinical and other data.

 Proxama (LON:PROX 1.08p/£18.92m)


Proxama, the leading mobile proximity marketing expert, announced that GLACÉAU smartwater, owned by Coca Cola, is the latest brand to utilise their proximity products and services. GLACÉAU smartwater has commissioned an engaging new out of home campaign that uses Proxama’s beacon technology to share tips from influential Londoners, with members of the public. Launched on 12th September, the outdoor campaign, alerts users in the nearby proximity and will be live until the end of September. From the tastiest brunch in Chelsea to the trendiest pedicure in Hoxton, the GLACÉAU smartwater campaign aims to distil the very best bits of London into ‘on-the-go’ recommendations for busy Londoners.  The adverts, located in areas within Chelsea and Hoxton, will alert consumers to check out top tips from London based influencers, including blogger Reem Kanj and stylist Roxie Nafousi. Smartphone users with Mapway’s Bus London Android app installed will receive a push notification encouraging them to click and discover top recommendations in the area.

 Sareum (LON:SAR 1.16p/£30.80m)*


Sareum Holdings, the specialist cancer drug discovery and development Company,  announced that its co-investment partner, the CRT Pioneer Fund, has licensed exclusive and worldwide rights for the Chk1 inhibitor cancer drug candidate CCT245737 (to be renamed PNT737) to ProNAi Therapeutics, Inc. (NASDAQ: DNAI). Under the terms of the agreement, an immediate upfront payment of US$7.0m is due to the co-investment partners and an additional fee of up to US$2.0m will be payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi.  Additional payments in the aggregate amount of up to US$319.5m may become payable upon achievement of certain development, regulatory and commercial milestones. ProNAi will also owe high single to low double digit royalties on the net sales of any product successfully developed. Under Sareum’s agreements with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5 percent of these payments. Therefore, Sareum will receive (i) US$1.9m as an upfront payment, (ii) potential future milestone payments of up to US$88.4m, some of which are expected to be paid within the next twelve months upon certain development milestones being met and (iii) its share of any sales royalties.  Furthermore, the unspent balance, estimated at c£300,000, of the financial commitment to the trial funding of £797,500 made by Sareum in December 2015 will be returned to the Company.

 Venn Life Sciences (LON:VENN 23.54p/£14.77m)*


Venn Life Sciences, a growing Contract Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced its unaudited interim results for the six months ended 30 June 2016. Financial Highlights showed revenue of €9.06m (H1 2015: €4.25m), EBITDA profit of €0.40m (H1 2015: profit of €0.09m) and an Operating Loss of €0.033m (H1 2015: loss of €0.079m). Cash and cash equivalents of €1.75m at 30th June 2016 (€1.10m at 30th June 2015) and Cash and cash equivalents of €2.10m at 23rd September 2016. Operational Highlights showed progress on Kinesis integration and initial cross sales achieved. Continued progress on systems infrastructure with resultant improvements in operating margins, with successful achievement of key project milestones leading to strong client endorsements and repeat business. The Company also strengthened the board with the appointment of Allan Wood as non-Executive Chairman and Mary Sheahan as non-Executive Director, continued positive progress on new business with €2.8m contract and preferred vendorship with big Pharma announced in August. Lastly, the Company has entered into a process to sell its innovation division, Innovenn. This sale will represent the culmination of several months of effort to re-position Innovenn in such a way that will bring better clarity to the performance of the core business, and realise value from an investment in Innovenn.  The Company also  announced that its wholly owned subsidiary, Venn Life Sciences Limited, has entered into a conditional agreement under which it and Lynchwood Nominees Limited, as custodian for the Helium Rising Stars Fund, would sell the entire issued share capital of Innovenn UK Limited for a total consideration of up to £4.74m.

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5th September 2016

Top stories in this week’s wrap



Contract Win





Palace Capital

Property Acqusition

TP Group

TP Group

Contract Win

365Agile (LON:365 26.8p/£5.01m)


Following the departure of the Group’s CEO in April, the Board has reassessed its strategy to develop a meaningful business in the Internet of Things space. In particular, the Board has considered whether, with continued investment from the income stream generated from the Company’s licence agreement with Castleton Technology plc, its operations based in Nottingham and trading under the Wireless Things name could become core to the Group’s future plans. Based on its assessment to date the Board does not believe this to be the case. Accordingly, a provisional decision has been taken to close the Nottingham operations and a consultation period has commenced with the staff. The Company continues to own the IP to the 365Agile suite of software solutions, however, should the consultation process result in the closure of the Nottingham office and employee redundancies, 365Agile will become an AIM Rule 15 cash shell funded by the ongoing payments it receives from the Licence Agreement. A further announcement will be made upon completion of the consultation process.

Bushveld Minerals (LON:BMN 1.40p/£8.04m)


Bushveld Minerals, a diversified mineral development company with projects in South Africa and Madagascar, announced it raised, at a price of 1.5 pence, gross proceeds of £0.58m. Participants in the Placing have also been issued with warrants on the basis of one Warrant for every two Placing Shares subscribed for in the Placing. The Warrants have an exercise price of 2.4 pence and an expiry period of two years from the date of issue. The net proceeds of the Placing will be used for general working capital purposes; continuing costs associated with the Vametco transaction; ongoing work in respect of Bushveld Energy’s Cooperation Agreement with the IDC and continuing work on Lemur Resources IPP project in Madagascar. The Company also advises on the progress with respect to the acquisition, together with Yellow Dragon Holdings Limited (YDH), of a 78.8 percent interest in Strategic Minerals Cooperation (SMC). The Company is currently engaged with efforts to fulfill the conditions precedent of the transaction, including the securing of relevant regulatory approvals. Furthermore, the Company notes the recently announced disposal by YDH of the Ordinary Shares it held in Bushveld. The Company sees no reason in this disposal to cause concern in respect of the interest and capacity of both YDH and Bushveld to complete the SMC acquisition.

cloudBuy (LON:CBUY 6.91p/£8.97m)


cloudBuy, the global provider of cloud-based ecommerce marketplaces and B2B buyer and supplier solutions, announced that it has signed a contract with FSB to deliver a new online marketplace for FSB members. The FSB marketplace will enable its 170,000 members to trade with each other securely and cost effectively as well as allow both consumer and business buyers to buy goods and services directly from FSB’s trusted member network. The FSB marketplace will also act as a showcase for the goods and services of innovative smaller businesses to larger organisations and overseas buyers. The contract is for a 5 year period with revenue comprising a mix of implementation, SaaS licence, support and hosting and a share of transaction revenue. Although it is expected that there will be some contribution of revenues in the current financial year, this contract win is not expected to change market expectations. The FSB marketplace will be configured and customised during 2016 followed by FSB member on boarding. There will be no registration or subscription fees for FSB members to join the marketplace and list their products and services. There will be a very competitive fee per transaction making it a genuine “pay as you earn” online model.

Dewhurst (LON:DWHT 712.65p/£46.21m)


Dewhurst, an independent supplier of quality components to the lift, keypad and transport industries, provided a trading update for the financial year ending 30 September 2016. The recovery reported at the interim stage has continued through the third quarter and into the fourth to date. Seasonal effects mean that the Company’s second half is traditionally stronger than the first half, but the effect is expected to be greater than usual this year. The UK vote to leave the EU had an immediate effect on the value of the pound. A significant proportion of the Company’s sales and earnings are generated in foreign currencies. With the fall in the pound these sales and earnings are worth more to us. If currencies remain broadly at today’s level through to the end of September, it will benefit our reported sales and profits for the year, compared to expectations at the half year. The recent EU Referendum decision has not yet affected Dewhurst’s underlying level of business. There have been reports in the media of cancellations and deferrals in commercial property transactions. However, whilst the decision has generated a period of uncertainty, it is too early to speculate what impact, if any, there will be on Dewhurst. The combined effects of these factors mean that the Board now anticipate full year profits will be significantly higher than current market expectations.

Gfinity (LON:GFIN 11.00p/£18.43m)


Gfinity, a leading eSports business, announced that it has signed a sponsorship agreement with HP Inc. for an upcoming eSports tournament, featuring the Counter Strike: Global Offensive (CS:GO) game, taking place within EGX 2016, the UK’s largest video games event, being held at the NEC in Birmingham between 22-25 September 2016. The tournament will be branded as being presented by OMEN, HP’s next generation high-performance gaming laptop, desktop and accessory range launched in May 2016. The tournament will see four of the world’s best teams compete against each other in this multiplayer first-person shooter video game, for a prize pot of $100,000 (approximately £76,000). The first day of the CS:GO tournament will feature exhibition matches and the opportunity for show visitors to play in a competitive environment alongside leadingCounter Strike professional players and showcase their commentary skills during live action. The final three days will feature the live pro tournament itself and will culminate in the Grand Final on Sunday 25 September 2016.

ITM Power (LON:ITM 23.25p/£51.21m)


ITM Power, the energy storage and clean fuel company,  announced that it has signed a fuel contract to supply hydrogen at £10/kg with Commercial Group, a pioneer in hydrogen fuelled fleet logistics. The contract covers fuel dispensed across ITM Power’s hydrogen refuelling network, including the station recently opened in London. The refuelling network has been financially supported by projects run by Innovate UK, OLEV and FCH JU. ITM Power currently has £16.19m of projects under contract and a further £1.79m of contracts in the final stages of negotiation, making a total of £17.98m. The business services company Commercial has been operating a fleet of hydrogen hybrid delivery vans since 2013 across London and the South East, along the M4 corridor and out into the South West. With ITM Power expanding the UK hydrogen refuelling network, Commercial will be able to serve more customers across its low-carbon logistics network. Carbon emissions from Commercial’s hydrogen vans are significantly lower than traditional comparable diesel vehicles and deliver significant environmental benefits. Commercial’s hydrogen van fleet was deployed via projects with funding support from Innovate UK.  These projects successfully demonstrated the environmental benefits of the hydrogen technology and the vehicles will continue to operate across Commercial’s fleet.

Milestone Group (LON:MSG 0.572p/£4.58m)*


Milestone Group, the provider of digital media and technology solutions announced the signing of a cooperation agreement with the Green Skills Partnership (GSP) to promote Milestone’s Passion Project and its digital charitable giving platform, Alchemy. The GSP has over 44 members and brings together employers, local councils, trade unions, environmental organisations, education providers, community groups including Housing Associations and state agencies. Both of the Company’s digital platforms fit with GSP’s core aims of delivering high quality skills training, raising awareness and overcoming barriers to sustainable employment with an emphasis on young people and supporting sustainable development in the charity sector. Over the last 12 months GSP has successfully delivered on a Construction Industry Training Board and Greater London Authority joint initiative to place 300 unemployed construction workers into work placements. Of these, 150 started jobs, with 100 continuing in sustained employment. Initially GSP focused on the construction sector but has widened that focus to include providing apprenticeships for the finance, law, IT and business administration sectors. GSP will work alongside Milestone’s Passion Project to support its operations, market its products / services and develop its offering beyond the London Metropolitan areas. The GSP model is a natural fit for the Passion Project which is designed to aggregate all parties involved in the engagement, education, training and employment of young people whilst providing access to a commercial resource exchange for the surrounding network of partner organisations. GSP will also promote to its members the charitable giving platform which will allows users to redeem rewards for or buy e-media, donate to targeted charities or participate in crowd-funding of social initiatives, the first of which is raising money for the Metropolitan Police’s ‘Divert’ programme.

Nektan (LON:NKTN 48.00p/£12.25m)


Nektan, a leading international mobile gaming provider, entered into an asset transfer and simultaneous licensing agreement with Buckingham HMB Ltd for three of the Company’s wholly-owned gaming brands. Buckingham will pay the Company a cash consideration of £1.75m, with a further £0.2m expected to follow shortly, for the assets, whilst simultaneously entering in to a five-year licensing agreement with the Group for the continuing operation of the brands under Nektan’s white label Evolve platform for a monthly royalty on terms consistent with other white label agreements the Company has entered into. The assets being transferred principally comprise the customer databases, web domains and brands relating to Chomp Casino, Spin Princess and Sapphire Rooms, which were all developed in-house.  In the year ended 30 June 2016, these brands in aggregate generated Net Gaming Revenue (NGR) of approximately £2.0m, and going forward the Company will continue to report the NGR relating to these brands within its NGR, consistent with other white label partners. The Company will recognise a profit on the sale in the current financial year equivalent to the consideration received. The proceeds of the asset transfer will be used for the Group’s working capital requirements to further develop Nektan’s business in Europe and its US Joint Venture, Respin Inc.

Osirium Technologies (LON:OSI 180.00p/£18.71m)


Osirium Technologies, a UK based cyber-security software provider, announced a significant contract win with a leading global asset management company.  The asset manager has over £300bn of assets under management and offices in c.30 countries. Under the terms of the contract, Osirium will deliver its full product offering of Privileged Account Management, Privileged Task Management and Privileged Session Recorder software modules to 3,000 devices. As part of the contract Osirium will also provide its consultancy services. The contract is expected to deliver a material financial contribution in the current year and will run over a three year term.

 Palace Capital (LON:PCA 316.88p/£80.66m)


Palace Capital, the property investment company that focusses on commercial property mainly outside London, confirmed that it has now completed the acquisition of Boulton House, Chorlton Street, Manchester. Boulton House is a 75,000 sq ft multi-let 1970s office building, the acquisition of which was first announced by the Company on 14 June 2016. The net price paid by the Company was £10.575m and a new debt facility of £6.022m has been secured with Santander. Maturing in June 2020, this debt facility represents a 55 percent loan to value and has been concluded at a margin of 2.25 percent over LIBOR. 13,500 sq ft of office space is currently vacant on which Palace will carry out a limited refurbishment prior to letting.

TP Group (LON:TPG 5.74p/£23.22m)


TP Group, the specialist technology, engineering and managed solutions group, announced it has signed a contract to supply a new variant of its existing carbon dioxide scrubber technology to ThyssenKrupp Marine Systems GmbH (TKMS), one of the leading system providers of non-nuclear submarines and high-end vessels. The initial contract with TKMS is worth a minimum of £1.65m, with the potential for multiple further units. The carbon dioxide scrubber system will be designed and built at the TPG Maritime facility in Portsmouth with delivery to TKMS scheduled for Q4 2017.

15th August 2016

Top stories in this week’s wrap


Contract Win


OptiBiotix Health

First Products

venn life sciences

Venn Life Sciences

Contract Win

Altitude Group  (LON:ALT 16.75p/£7.45m)

Altitude Group, the provider of innovative technology solutions for small to medium sized businesses, announced that its wholly owned subsidiary, Customer Focus Software Inc., has agreed a five-year agreement with Philadelphia, PA based AI Mastermind, a leading buying group serving more than 1,000 promotional product resellers representing over $200m in annual sales in North America. Under the terms of the Agreement, Altitude will provide each AI Mastermind member with an ecommerce website that uses the Group’s unique proprietary technology. Altitude will receive a share of the gross margin on all orders that are processed through the platform. The Agreement is for an initial five-year term, with automatic renewal for a further five years. The Directors expect the first customers to be live by October 2016 and the deal to be earnings enhancing from launch.


Avingtrans (LON:AVG 193.88p/£53.86m)

Avingtrans, a manufacturer of critical components and associated services to the global energy and medical sectors, announced that Maloney Metalcraft, part of Avingtrans PLC’s Energy & Medical division, has secured a contract with EDF Energy, worth £3.5m, to supply components for their current fleet of seven nuclear power stations across the UK. Maloney Metalcraft will supply gas-cooling process-critical valves for each of the seven EDF managed Advanced Gas-Cooled Reactors around the country (Dungeness B, Hinkley Point B, Hunterson B, Hartlepool, Heysham 1, Heysham 2 and Torness). The contract is part of a life extension programme that will also see Maloney Metalcraft providing engineering support and on-site services to EDF Energy as part of the deal. These contracts will continue until the end of life of the stations.


Blue Prism (LON:PRSM 211.10p/£131.33m)

Blue Prism, a leader in Robotic Process Automation (RPA), provided an update on current trading. Blue Prism has continued to enjoy strong pipeline progress. The Group has won a number of new contracts including a contract to deploy its RPA solution to a global tier-1 bank through one of its major alliance partners. This is a significant contract win for Blue Prism that provides a strong validation of its partner-led sales model and whilst the size of the contract today is uncertain, the Board believes it has the potential to become the largest deployment of Blue Prism’s software robots to date. Alongside these contract wins, the Group has recently secured a contract renewal with one of its largest customers, a UK-headquartered global tier-1 bank, which signed a new three year commitment. Together, the renewals and the continued momentum in new business wins in the year to date, mean that, subsequent to the outlook detailed in the Group’s interim results, we are confident that Blue Prism will outperform the Board’s current expectations for the full year.


 Conroy Gold and Natural Resources (LON:CGNR 30.65p/£3.47m)*

Conroy Gold and Natural Resources, the gold exploration and development company focused on Ireland and Finland, announced that an independent study by structural consultant Dr. Francis Murphy has confirmed the continuity of the gold lodes at the Company’s Clontibret gold target. The structural study was carried out on the stream bedrock in Clontibret. Eight gold lodes were identified in the stream bedrock. These lodes all corresponded to gold lodes previously identified by the drilling programme. The confirmation of continuity in the gold lodes, taken in conjunction with drilling results and channel sampling results from the old antimony mine workings at Clontibret enhances the Company’s understanding of gold mineralisation within the Clontibret gold deposit. This demonstration of the continuity of the gold mineralisation at Clontibret is a further essential step forward as the Company proceeds with its Clay Lake-Clontibret gold mining project.


Lok’n Store (LON:LOK 322.00p/£86.72m)

Lok’nStore, the fast growing self-storage Company, announce the signing of management contracts to develop and operate two new landmark stores. The two sites are in prominent retail locations in Hemel Hempstead, Hertfordshire and Broadstairs, Kent. Lok’nStore has secured planning permission for a purpose built landmark site in Hemel Hempstead which has been purchased by an international fund management group. The Broadstairs site is an existing building in a prominent location on a retail park that will be converted for storage use. Building work will commence immediately on both locations, funded by the owners of the properties, with opening scheduled for 2017. When developed these Managed Stores will add around 70,000 sq. ft. to the trading portfolio, an increase of 5 percent to the total managed or owned currently by the Company. With the addition of the new landmark sites recently acquired as Lok’nStore Owned Stores in Wellingborough and Gillingham the Company will be operating 30 storage centres when these sites are completed. Lok’nStore will generate a return on these stores by charging management fees for the acquisition, branding and operation of the stores based on revenue and profits. These projects continue Lok’nStore’s strategy of expanding the operating footprint of the business by developing both Managed Stores and Owned Stores while maintaining its strong balance sheet.


Oakley Capital (LON:OCL 127.94p/£243.80m)

Oakley Capital Investments, the company established to provide investors with access to the investment strategy being pursued by Oakley Capital Private Equity L.P. (Fund I) and its successor fund, Oakley Capital Private Equity II (Fund II), announced a trading update for the 6 months ended 30 June 2016. The Company, through its investment in Fund I, has an indirect interest in each of Fund I’s portfolio companies representing 65.5 percent of Fund I’s total commitments; and through its investment in Fund II, an indirect interest in each of Fund II’s portfolio companies representing 38.1 percent of Fund II’s total commitments. The Company’s NAV will be in the range £2.12 – £2.15 per share representing an uplift of 12 – 15p per share versus the NAV of £2.00 per share as at 31 December 2015. Of the uplift in NAV per share, approximately 13p is attributable to the significant weakening of Sterling between 31 December 2015 and 30 June 2016.  The underlying performance of the portfolio in the Funds has been good, contributing to an uplift of up to 9p per share. There has been a fall in NAV per share of 7p due to the post-IPO share price of Time Out on 30 June 2016. The Company’s NAV comprises cash, the investments in the Funds, short-term bridging finance for the Funds and loans provided to a number of the portfolio companies.


 OptiBiotix Health (LON:OPTI 72.20p/£56.33m)*

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announced that GoFigure® meal replacement shakes and natural snack bars products are now available for sale in UK stores of the Whole Foods Market Inc, a large ($15bn turnover in 2015) American supermarket chain exclusively featuring healthy foods. On 26 July 2016, OptiBiotix announced it had completed an investment to acquire 51% of The Healthy Weight Loss Company which produces GoFigure® products containing SlimBiome®, OptiBiotix’s patented combination of natural ingredients, identified and developed by experts to support weight loss.  The launch of SlimBiome® in the GoFigure® range establishes its use in food products with customer feedback consistently reporting reduced hunger, less snacking, and easier weight loss.  GoFigure® products will initially be stocked in 8 UK Whole Foods Market Inc shops with opportunities for further expansion.


 Premier Veterinary Group (LON:PVG 147.00p/£21.24m)

Premier Veterinary Group announced that, through its wholly-owned subsidiary, Premier Vet Alliance Limited, it has signed a cooperation agreement for its preventative healthcare program for pets, Premier Pet Care Plan (PPCP), with Zoetis, one of the world’s largest animal healthcare companies.  PPCP is branded as “Huisdieren Zorg Plan” (HZP) in the Netherlands. Since the introduction of HZP to the Dutch companion animal market in March 2015, the business has entered into contracts with over 10% of the available clinic market.  The cooperation agreement signed with Zoetis, an influential global manufacturer serving this market, will result in their representatives identifying and supporting practices which are interested in launching HZP in the Netherlands.  Working in close collaboration with Zoetis is expected to generate an acceleration of the penetration of HZP into the wider Dutch market. The available market for preventative healthcare programs for pets across the Netherlands is estimated at 1,100 veterinary practices, and an estimated 1.5 million dogs and 2.6 million.


 ProMetic Life Sciences (TSX:PLI CAD3.04/CAD1,801.4m)*

ProMetic Life Sciences, announced that it has completed enrolment of the congenital plasminogen deficient patients in its pivotal phase 2/3 clinical trial required for the accelerated regulatory approval pathway with the Food and Drug Administration (FDA). The FDA has agreed to an accelerated regulatory approval pathway, given the rarity of the condition and the related unmet medical need. To secure an accelerated pathway approval, a drug must treat a serious condition, provide a meaningful advantage over available therapies and demonstrate an effect on a surrogate endpoint that is reasonably likely to predict clinical benefit. ProMetic’s Plasminogen has received an Orphan Drug Designation by the FDA and the European Commission for the US and the European markets respectively. ProMetic also received a Fast Track Designation by the FDA, a process designed to facilitate the development and expedite review of drugs and biologics intended to treat serious or life-threatening conditions and that demonstrate the potential to address unmet medical needs.


 Sareum (LON:SAR 0.673p/£17.75m)*

Sareum, the specialist cancer drug discovery and development business, announced that the Chinese Patent Office and the Hong Kong Patents Registry have issued notifications that patents will be granted for inventions associated with Sareum’s Aurora+FLT3 Kinase Inhibitor Programme. These patents describe compounds that inhibit the activity of Aurora and FLT3 kinase enzymes and the medical use of these compounds, particularly in the treatment of cancer. The granting of these patents means that Sareum will have approved patent protection in China and Hong Kong for its Aurora+FLT3 inhibitor programme. The Company announced that similar patents were to be granted in the USA and Europe in September 2015. Other major territories, including Japan, are expected to pegfollow in due course. Sareum’s Aurora+FLT3 inhibitor programme targets acute myeloid leukaemia (AML) and other leukaemias and lymphomas. In disease models of AML, the preclinical development candidate molecule demonstrates greater than 98% tumour inhibition. Preclinical development studies to obtain approval for human clinical trials are being undertaken in collaboration with, and funded by, Hebei Medical University Biomedical Engineering Center (HMUBEC) in China.


 Venn Life Sciences (LON:VENN 28.00p/£16.77m)

Venn Life Sciences, a growing Contract Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced that it has signed a new contract worth €2.8m with a European Biotechnology client. The clinical trial is a Phase II study in the area of Immunotherapeutic treatments for Multiple Sclerosis and involves patients in six countries across Europe and commences in October 2016. Furthermore, Venn’s Interactive Response Technology (IRT) department, which centralises the randomisation of patients for Phase I to IV clinical trials and manages the logistics of these studies, has successfully qualified as a service provider to a top ten Pharmaceutical client and has been awarded an initial project involving thirty sites in China. This vendor qualification is a significant milestone for the IRT division and represents an exciting opportunity to grow a global account.


22nd July 2016

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

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7DIG Trading Update, ALSP* Loan Draw Down, AAU Placing, COG* Contract Win, CHAL New York Wheel, CBUY Contract Win, CGNR* New Gold Zones, DGS Trading Update, MSG* JV, NET Trading Update, OPTI* New Patent, SEE Trading Update, TPG Contract Win

7digital (LON:7DIG 8.00p/£9.46m)

7digital, the digital music and radio services company, issued a trading update for the half-year ended 30 June 2016. The Company has a healthy sales pipeline for the second half of 2016, demonstrated by the contract wins announced, and the Board remains confident of meeting expectations for the full year and continues to anticipate achieving profitability by the end of 2016. Total monthly recurring revenues for the first half rose by 4 percent against the comparative period last year. Improving sales momentum during the period saw the annualized exit MRR for the period rise by 10 percent and licensing revenues in June rose by 17 percent compared with 2015. However, due to termination payments from the legacy BlackBerry contract being included in the prior period and the planned reduction in low margin content revenues, overall turnover was broadly unchanged at approximately £5m. With over 50 percent of 2016 revenues expected to be denominated in foreign currencies (predominantly US$), the effect of recent currency fluctuations is expected to benefit the Company in the second half of the year. 7digital also announced that it has in the second quarter been awarded contracts with a combined value of approximately £1.1m, including set up fees and monthly recurring revenues, with growth coming both from new customer wins and from existing or prior customers to whom 7digital is providing additional services. The Company has reached an agreement with Cdiscount, a leading e-commerce retailer in France, to launch a new music service in the coming months. Cdiscount enjoys a 34.4 percent total share of e-commerce in France.

Ace Liberty and Stone (LON:ALSP 4p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that the Company has drawn down a secured loan of £3.4m against its Plymouth and Gateshead properties. This £3.4m loan, which has a five years’ repayment term, is provided by Nationwide Building Society, a new lender to the Group. The loan is secured by way of a first charge over Marsh Mills, Plymouth, and Shildon House, Gateshead, two purchases which were announced earlier this year. The loan will significantly improve the working capital flexibility for the Group. As a result of Ace’s open offer in February this year which was well supported by shareholders and raised £3.5m, and following recent purchases, the Company now has a £4m cash reserve which will enable it to continue to take advantage of attractive market opportunities.

Ariana Resources (LON:AAU 1.48p/£11.59m)

Ariana Resources, announced a placing of 29,616,666 new ordinary shares of 0.1 pence each in the Company at a price of 1.5 pence per share, in order to raise gross proceeds of approximately £0.45m before expenses. The Placing has been undertaken within the Company’s existing share authorities, and has been supported by both new and existing shareholders. The net proceeds of the Placing will be used to extend the current drilling programme and for developing new projects.  The Placing is conditional only on admission to AIM. In addition, the Company advises that three directors of the Company, namely Mr. Michael de Villiers, Dr. Kerim Sener and Mr. William Payne, intend to subscribe for a total of 2,050,000 shares on the same terms for a further sum of £30,750 following the announcement of the Placing.

Cambridge Cognition (LON:COG 33.80p/£6.84m)*

The neuroscience company Cambridge Cognition Holdings, which develops and markets near patient technologies for cognitive assessment, announced that it has secured its largest contract to date for the CANTAB Connect Research® product, which is marketed for use in research projects by academic and small biotechnology research groups. Worth an estimated £0.5m, the Contract is the Company’s first with an international biobank and the highest recorded sale of its research software. Biobanks amass large amounts of data and biological samples and catalogue them according to genetic, biological, environmental and other traits. These data and samples are then made available for researchers to support medical research in many fields. There are over 300 biobanks globally and the addition of neurological health data generated using Cambridge Cognition products will help to progress research into prevalent health issues, now and in the future. The Contract allows for unlimited assessments to be conducted using the Company’s proprietary touchscreen cognitive tests based on over 30 years of peer-reviewed science. The software will generate data that will be used for medical research to assess mental health in a general population over the next five years.

Challenger Acquisitions (LON:CHAL 21.35p/£3.65m)

Challenger Acquisitions, a leader in the Giant Observation Wheel industry, announced that it has received $1m from New York Wheel Investor LLC (NYWI). These funds, raised by Challenger in January 2016, were held in escrow by NYWI until final funding arrangements for completion of the New York Wheel Project were in place.  Challenger has been informed by NYWI that it has now received sufficient funding commitments from its sponsoring investors and therefore does not require these funds. Challenger now has a firm investment of $3m in the equity of NYWI, representing an interest of approximately 2 percent in the $590m NYW Project.  With funding formally secured to ensure completion of the NYW Project, the project continues to advance towards its opening.  Approximately $275m has been spent on the NYW Project to date, with major developments.

cloudBuy (LON:CBUY 4.75p/£6.41m)

cloudBuy, the provider of cloud-based e-commerce marketplaces and B2B buyer and supplier solutions, announced that it has signed a contract with University of Exeter for the supply of a new online procurement system. This will provide an intuitive way for the University’s staff to buy goods and services against contract agreements with a wide range of suppliers. cloudBuy is partnering with EU-Supply to provide a full solution including e-marketplace and e-tendering capabilities. The contract is for an 8 year period and will contribute revenue in the current financial year. Revenue is a mix of implementation and SaaS licence support and hosting. The project will deliver an accelerated phased implementation, providing benefits at each stage, leading to a Source to Pay solution fully integrated with the University’s finance system.

Conroy Gold and Natural Resources (LON:CGNR 34.00p/£3.66m)*

Conroy Gold and Natural Resources, the gold exploration and development Company focused on Ireland and Finland, announced that four new gold zones have been intersected in a drilling programme on its Glenish gold target in Ireland. The drilling results, together with previous channel sampling in the area which had proved 1.3 metres grading 9.4 g/t gold, demonstrated the presence of the four new gold zones in a 150 metre wide structural corridor in the western part of the Glenish gold target. The new drilling results included intersections of 2.25 metres grading 2.65 g/t gold, at a depth of 18 metres; 2.0 metres grading 1.59 g/t gold at a depth of 27.75 metres; 2.75 metres grading 1.43 g/t gold at a depth of 36 metres and 3 metres grading 1.76 g/t gold at a depth of 64.25 metres. The gold mineralisation in bedrock in the drilling area was traced down dip for over 70 metres and remains open in all directions. The Glenish gold target is a large, 147 hectare, gold-in-soil anomaly located 7.5km southwest of the Company’s Clay Lake-Clontibret gold target where the Company is targeting a potential of five million ounces of gold.

Digital Globe Services (LON:DGS 49.00p/£14.52m)

Digital Globe Services, a leading provider of digital marketing solutions for large, consumer-facing organisations, provided an update on trading for the year ended 30 June 2016. Trading in the second half of the year was robust and as a result, the Group expects to deliver revenue for the year of approximately $48.0m (FY15: $40.3m), marginally ahead of market expectations. The growth was driven by client wins in new verticals and increased volumes in the core business from the existing client base. Gross Margins experienced compression in the second half of the year due primarily to increased marketing spend. This was in part due to their entry into new industry verticals such as energy and utilities where they won new customers. EBITDA is expected to be below market expectations at approximately $3.1m, due to the lower gross margin on core business, new business, and direct labour costs associated with the acquisition of an on-shore call centre to support new verticals that require on-shore fulfilment centres. Management expects gross margin to recover to historic levels as new business matures. During the period under review, the Company has written down certain accrued revenues outstanding for over twelve months. This will represent a one-off non-cash expense of around $4m in aggregate. Management believes that a portion of this may be collectable but has written off the full amount.   The Company ended the year with a cash balance of approximately $0.6m with $1.5m drawn down under its $5m credit facility.

Milestone (LON:MSG 0.690p/£4.49m)*

Milestone Group, the provider of digital media and technology solutions announced that it has signed a JV with Axis Stars Limited to work with the Passion Project and utilise the suite of technology solutions available through the Nexstar JV. Former international footballer, Louis Saha has agreed to increase his company’s relationship with Milestone Group by signing a JV between his Axis Stars company and Milestone Group. The JV will be a 50/50 revenue share whereby Axis Stars will utilise its fast growing database of international sport stars to raise awareness of Milestone’s Passion Project initiatives while gaining access to Nexstar’s portfolio of finance, media streaming and publication technologies. Through the JV, Axis Stars will co-host events with Milestone, match its database of international sport stars to social causes to raise awareness of the Passion Project and help build brand value of both companies. Athletes, celebrities, musicians and actors are well known and trusted brands in their own right and the ignition point to the Passion Project as they bring relevant audiences in scale. Nexstar will also benefit from these agreements as it can offer innovative technology solutions including financial and publishing to its partners and their global audience.

Netcall (LON:NET 53.00p/£76.38m)

Netcall, a customer engagement software provider, announced that final results for the 12 months ended 30 June 2016 are expected to be in line with market expectations. The year has been characterised by double-digit growth in order inflow, with an increased share of the sales mix coming from SaaS-based contracts. The growing proportion of SaaS-based contracts increases the revenue visibility of the Group, by adding to the recurring revenue base in future periods. The Group has a robust cash position, maintaining its debt free balance sheet and being strongly cash generative at the operational level. At 30 June 2016 the net cash balance was £14.1m (31 Dec 2015: £15.2m), following payment of the first enhanced dividend and ordinary dividend, comprising £3.01m in total, in line with the Board’s dividend strategy.

OptiBiotix Health (LON:OPTI 75.00p/£58.64m)*

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announced a new patent filing. The filing protects the combination of OptiBiotix’s Lactobacillus plantarum strain along with other ingredients identified by scientific key opinion leaders which act synergistically to reduce cardiovascular risk factors. The patent filing follows on from the announcement on the 7 April 2016 relating to human studies which demonstrated 0.1g of a capsulated product has commercial potential as a safe, easy to use, low cost cholesterol reducing supplement.  The filing of this patent extends OptiBiotix’s protection across a broader range of market opportunities and increases the number of partnering opportunities. Current products for cardiovascular disease tend to focus on single risk factors, largely LDL (bad) cholesterol. However, there is a growing evidence base that suggests cardiovascular risk is a sum of a number of factors including triglycerides and blood pressure. The novelty in the new patent filing is that when used in combination with OptiBiotix’s cholesterol reducing strain the combination has the potential to: reduce multiple cardiovascular risk factors in a single presentation, enhance the overall effect on LDL reduction based on synergies in mechanism of action and reduce statin dosage mitigating possible side effects and improving patient compliance.

Seeing Machines (LON:SEE 3.73p/£39.90m)

Seeing Machines, the company with a focus on operator monitoring and intervention sensing technologies and services, confirmed that it expects to report pre and post tax trading for the full year to 30 June 2016 in line with market expectations, with revenue for the year of AUD33.6m. This revenue figure is 77 percent higher than the previous financial year’s total revenue of AUD18.9m.  These revenue figures exclude the research and development tax incentive received from the Australian government which is reported in ‘Other income’.  This incentive, which is received as a cash refund based on eligible R&D expenditure, totalled AUD2.4m for FY16 (FY15 AUD2.2m). The revenue was earned from the sale of goods and services and license fees.  As previously reported, included in the license fees, was an amount of AUD21.8m from Caterpillar Inc. due on signing a global product development, licensing and distribution agreement. Caterpillar takes over all costs and commercial responsibilities for the manufacturing, marketing, sales, field support and remote monitoring of the DSS rugged off-road product suite. Caterpillar continues to commercially engage Seeing Machines in supporting the engineering of their next generation DSS technology. The Caterpillar agreement also provides Seeing Machines with a royalty stream for both hardware sales and all DSS supporting services. Royalties for the quarter ending 30 June were $0.15m lower than the previous quarter due to longer than expected sales cycles with certain customers. However, Caterpillar’s forecasting confirms that the number of technology trials and the overall volume of sales opportunities continues to increase.

TP Group (LON:TPG 5.05p/£22.44m)

TP Group, the specialist technology, engineering and managed solutions group, announced that it has been awarded a contract valued at c.£1.0m from an existing long term customer based in South East Asia for the supply of a submarine carbon dioxide removal system. The work will be undertaken by TPG’s wholly owned subsidiary TPG Maritime at the Group’s manufacturing and engineering base in Portsmouth over the next 18 months.  This contact potentially forms part of a broader replacement programme.


1st July 2016

TMT Investments Invest
SafeCharge in safe hands

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

AKR Distribution Agreement, AVCT Affimer Binders, AVG Return of Funds, PRSM Interim Results, COG* Distribution Agreement, FISH Placing, FITB* Board Changes, Placing and Loan Capitalisation, FUM Agreements, HCM Phase II, IGE Agreement, LRM Selected, NWF Trading Updated, PLI* Fast Track, SCH Trading Update, TMT* Invests

On this day:

1916 – The massive Allied offensive known as the Battle of the Somme began in France. The battle was the first to use tanks.
1979 – Sony introduced the Walkman.
1997 – The sovereignty over Hong Kong was transferred from Great Britain to China. Britain had controlled Hong Kong as a colony for 156 years.

Akers Bioscience (LON:AKR 100p/£20.11m)

Akers Biosciences, a developer of rapid health information technologies, signed its first distribution agreement for BreathScan OxiChek™ with Aero-Med, a division of Cardinal Health, a Fortune 500 health care services organisation. OxiChek is the first disposable breath test to rapidly determine levels of oxidative stress in the body by measuring the levels of certain abundant free radicals. Frequent use of OxiChek may help health practitioners to monitor and adjust their clients’ regimen of nutritional supplementation in order to manage oxidative stress – an indicator of the overall health and wellbeing of a person. OxiChek works with BreathScan Lync™, the new bluetooth-enabled reading device from Akers Wellness, to enable users to monitor oxidative stress via a mobile device.  Aero-Med is targeting the large specific markets in the United States of anti-aging, functional and integrative health and wellness treatment practitioners and has already placed orders for OxiChek.

Avacta Group (LON:AVCT 90.00p/£62.22m)

Avacta Group, the developer of Affimer® biotherapeutics and research reagents, announced it has identified three Affimer proteins capable of binding to a recombinant form of a secreted Zika virus Non-Structural protein 1, which is diagnostic of Zika virus infection at the early, acute stage. These Affimer binders were identified and characterised within just thirteen weeks of receiving the virus target and have the potential to be developed into new rapid point-of-care diagnostic tests for Zika infection. The three Affimer binders are highly specific to the Zika NS1 protein and can differentiate in human serum from five other closely related viruses that give similar symptoms: Dengue, Yellow Fever, West Nile, and Japanese and Tick-borne Encephalitis. Since these viruses are very similar, there is currently no validated antibody that detects Zika virus specifically, which is a limiting factor in the development of a reliable, quick diagnostic test. The ability to rapidly generate new diagnostic reagents in response to outbreaks of infectious agents is critical to meeting an urgent medical need, as recently evidenced by the SARS and Ebola virus outbreaks. The very high specificity of Avacta’s Affimer technology, together with the speed with which new Affimer binders can be identified and characterised, makes the technology ideal for rapidly responding to the need for detection and monitoring of new outbreaks. The Group intends to commercialise Affimer based rapid diagnostics through co-development and licensing to third party diagnostics developers an example of which is Mologic, a UK rapid diagnostics developer, with whom a research and product development collaboration was recently announced.

Avingtrans (LON:AVG 197.00/£55.12m)

Avingtrans, a manufacturer of critical components and associated services to the global energy and medical sectors, provided an update to shareholders on the proposals for the return of capital to shareholders following the disposal of the Aerospace Division. As the Company announced on 27 May 2016, following the disposal of the Aerospace Division, the Company had net cash in excess of £47m. The Board announced that it intends to return almost £28m to shareholders by way of a Tender Offer, representing 100p for each ordinary share in issue. The Board expects to announce its final results for the year ended 31 May 2016 during September 2016 and at the same time post a circular to shareholders setting out further terms of the Offer, and also seeking the necessary shareholder approvals. The balance of the net proceeds will be used to pursue the Group’s new strategy to invest in the Energy and Medical markets served by its Metalcraft and Maloney Metalcraft businesses, and more specifically to strengthen Metalcraft’s position in the nuclear sector and to pursue other related opportunities in the engineering sector.

Blue Prism Group (LON:PRSM 117.00p/£79.78m)

Blue Prism, a developer in Robotic Process Automation (RPA), announced its results for the six months to 30 April 2016, the first interim results as a listed Group following its IPO on 18 March 2016. Financial highlights showed total contracted revenue increased by 124 percent to £14.8m (H1 2015: £6.6m), group revenue growth of 21 percent to £4.0m (H1 2015: £3.3m) and recurring licence revenues now at 83 percent of total group revenues (H1 2015: 51 percent). Exit run rate (recognised, recurring license revenues) of £662k at 30 April 2016 (£252k at 30 April 2015), adjusted operating loss of £1.4m funded organically (H1 2015 adjusted operating profit: £72k) and Cash at the period end of £11.2m including £8.8m from IPO proceeds (H1 2015: £1.1m). Operational highlights showed strong new business wins in H1 2016 with 64 licence contracts signed in the period (40 licence contracts signed in the whole of FY 2015), underpinning future revenues. The group also won 33 new customers and total customer base is now at 90 (FY 2015: 57 customers). The channel partner ecosystem is gaining traction in line with strategy: 90 percent of new customers were acquired through or with channel partners

Cambridge Cognition (LON:COG 35.75p/£7.05m)*

Cambridge Cognition, which develops and markets products and technologies for near-patient cognitive assessment, entered into a distribution agreement with UK healthcare technology company MANUS Neurodynamica Limited. The agreement provides Cambridge Cognition with sole rights to market the MANUS Parkinson’s Pen, a sensor pen for diagnosis and monitoring of neuromotor impairments, in academic research, pharmaceutical clinical trials and occupational health markets. The CE Class I medical device uses non-invasive, patented technology to record and analyse limb and hand motion to assess underlying neuromotor processes, particularly for patients with Parkinson’s disease. An estimated seven to 10 million people worldwide are living with Parkinson’s disease, which is predicted to more than double by the year 2040. The combined direct and indirect cost of Parkinson’s is estimated to be nearly $25bn per year in the United States alone. Early diagnosis and timely access to specialist care for patients is essential. However, current diagnostic methods for Parkinson’s disease are based on a clinician’s subjective interpretation or neuroimaging techniques, which are expensive, invasive and require skilled operators. Following completion of final product enhancements, Cambridge Cognition expects to begin marketing the product initially for use in academic research through its existing global sales channels in Q4 2016. The product will subsequently be marketed for use by healthcare professionals to improve the certainty of differential diagnosis; in pre-symptomatic screening to identify and triage patients at risk and in monitoring disease severity in Parkinson’s patients by GPs and specialists in Europe and the US. Use of the MANUS Parkinson’s pen will provide a more accurate low-cost measure in clinical research and provide a direct cost reduction by assisting with a timely, accurate disease diagnosis to enable early treatment and avoid patient deterioration to the stage where intervention costs increase.

Fishing Republic (LON:FISH 38.60p/£14.73m)

Fishing Republic, the fishing tackle retailer, announced that it has raised £3.75m through a placing at a price of 35p per placing share (to new and existing shareholders. The net proceeds of the Placing will be used to support Fishing Republic’s continuing expansion as it seeks to build a significant market presence in the highly fragmented fishing tackle sector. In particular, the new funds will be used to develop Fishing Republic’s online platform and digital strategy, and to support further store openings, including potential acquisitions. The Placing, which was heavily oversubscribed, and the placing price of 35p represents an 8.7 percent discount to the Company’s 30 day volume weighted average price prior to 23 June 2016.

Fitbug Holdings(LON:FITB 0.250p/£2.96m)*

Fitbug Holdings, the technology developer and digital wellness pioneer, announced that Tyler Tarr, who has highly relevant experience of managing the finances of both growing and large cap technology companies, has joined the Board as part time Finance Director with immediate effect.  This appointment has been made in line with the Company’s strategy to become a provider of digital wellness services focussed on the B2B market.  Tyler has spent more than 10 years providing mergers and acquisitions advisory, debt placement, management consulting and interim CEO and CFO services to a wide variety of tech, media and electronics businesses. The company also announce a proposed equity fundraising to raise approximately £2.61m. The Fundraising comprises a placing of 340,800,000 Placing Shares at 0.25p per share with institutional and other investors and an open offer of up to 703,626,325 Open Offer Shares at 0.25p per share.  The Placing and Open Offer are being underwritten by NW1. In order to provide Shareholders who have not taken part in the Placing with an opportunity to participate in the proposed issue of New Ordinary Shares, the Company is providing all Qualifying Shareholders with the opportunity to subscribe for the Open Offer Shares, to raise up to approximately £1.76m through the Open Offer, on the basis of 5 New Ordinary Shares for every 2 Existing Ordinary Shares held on the Record Date, at 0.25p each. At the same time, it is proposed that £8.4m of the Company’s existing indebtedness to Kifin Limited and NW1 Investments Limited will be capitalised into 336,000,000 New Ordinary Shares at 2.5p per share. These activities will substantially reduce the Company’s debt; provide it with additional working capital, stabilise its balance sheet and position the Company to further deliver on its turnaround strategy of enhancing and monitoring employee wellness using its innovative app-based technology.

Futura Medical (LON:FUM 21.35p/£21.40m)

Futura Medical, the healthcare company focused on advanced transdermal technology, announced that it has signed manufacturing and distribution agreements with TTK Protective Devices Limited, a pioneer in the condom business and part of the substantial Indian conglomerate TTK Group. Under the terms of the manufacturing agreement, TTK will manufacture CSD500, Futura’s novel erectogenic condom for supply worldwide.  A regulatory filing has already been made with EU regulatory authorities to grant TTK the relevant authorisation to manufacture the product. TTK will be one of two manufacturers of CSD500 as part of the Company’s strategy to guarantee international supply. A European manufacturer already holds regulatory authorisation to manufacture the version of CSD500 currently marketed in the Netherlands and is awaiting regulatory authorisation for the extended shelf-life version of the product. Futura has also signed an exclusive licensing agreement with TTK for the marketing and distribution of CSD500 in India for the lifetime of the patents. Futura will receive an upfront payment and royalties on product sales over the duration of the agreement. TTK already owns the fastest growing condom brand in India, SKORE, which since its launch three years ago has achieved in excess of a 10 percent market share. TTK is attracted by the unique characteristics of CSD500 to further drive the growth of the SKORE brand. Subject to regulatory approval, CSD500 is expected to be launched by TTK in Q1 2017.

Hutchison China MediTech (LON:HCM 1,874.00p/£1,117.55m)

Hutchison China MediTech Limited announced the initiation of a Phase II expansion of the ongoing TATTON trial to evaluate the selective c-Met inhibitor savolitinib (AZD6094) in epidermal growth factor receptor (EGFR) mutant non-small cell lung cancer (NSCLC) patients. Savolitinib has the potential to address major unmet medical needs in c-Met-driven subsets of NSCLC, a disease that is estimated to afflict approximately 1.7 million new patients annually worldwide. The trial is a single-arm global Phase II study of savolitinib in combination with Tagrisso (osimertinib/AZD9291) in advanced NSCLC patients who have developed resistance to approved EGFR tyrosine kinase inhibitors. This expansion was initiated following encouraging early data from a number of patients enrolled in the TATTON study who received savolitinib in combination with Tagrisso. The initiation of the expanded Phase II study has triggered a $10m milestone payment to Hutchison MediPharma Limited (HMP) (a 99.8 percent held subsidiary of Chi-Med) under the terms of the agreement with AstraZeneca PLC signed in December 2011. HMP and AstraZeneca are conducting Phase II studies in NSCLC with savolitinib in monotherapy, as well as in combination with either Tagrisso or Iressa. AstraZeneca continues to lead and invest in the global NSCLC development program for savolitinib.

Image Scan (LON:IGE 2.50p/£3.10m)

Image Scan, the specialist supplier of X-ray screening systems to the security and industrial inspection markets, announced that it has signed a distribution agreement for X-ray mail scanning systems with Todd Research, a leading manufacturer in the market. Furthermore, two orders totalling six systems have now been received. Under the agreement Image Scan will make use of its well developed and extensive global reach into the security market to find new customers for the Todd Research range of mail and security scanning systems. These systems are widely used to perform X-ray inspection of incoming mail and packages in embassies and other government buildings, as well as company headquarters and industrial facilities. Typical threats that have been encountered through the mail include letter or parcel bombs and powder based attacks. Advance image enhancement tools provide high detection performance against such threats. Todd Research is a leading company in this market with an installed base of over 600 systems. In early wins for the new partnership, Image Scan can announce orders from Africa and Asia in the form of six units of the MailScan-M model, the mid-size cabinet scanner, to customers in these important markets.

Lombard Risk Management (LON:LRM 8.37p/£34.26m)

Lombard Risk Management, a provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, announced that it has been appointed by two major banking firms in North America to supply its award-winning collateral management, clearing, inventory management and optimisation solution, COLLINE®. COLLINE® enables firms to move away from managing collateral in business line silos by supporting multiple asset types on a single, web-based platform. A single platform results in more efficient collateral management, enables collateral optimisation, and provides users with the capability to manage liquidity and trading book capital. Lombard Risk’s COLLINE was chosen for its ability to quickly deliver agile and adaptable solutions for these highly complex organisations. As is the case across the world’s largest banks, these new clients’ decisions to move away from costly legacy applications in order to consolidate their systems and margining processes was a major driver in selecting Lombard Risk. By leveraging COLLINE®’s straight-through-processing (STP) and exception-based processing they can also reduce operational risk. The COLLINE® cloud computing service also enables faster deployment and a substantially lower cost of setup and ongoing maintenance, affording clients the ability to realise business benefits sooner.

NWF Group (LON:NWF 147.38p/£70.36m)

NWF Group, the specialist agricultural and distribution business, announced a trading update for its financial year ended 31 May 2016 and its notice of results. The Group reported that trading for the financial year ended 31 May 2016 was in line with the Board’s expectations. In the Feeds division, profitability improved over the prior year in spite of continued challenging conditions in the dairy market, with further reductions in milk prices and volatility in key commodities. Feeds’ share of the UK market has increased on an underlying basis and the acquisitions during the year of New Breed and Jim Peet Agriculture have been integrated and are performing in line with our expectations. In Food, the business remained at capacity throughout the year and delivered further improvements in operating efficiency and profitability. Some additional storage space has been created at the Wardle site and service levels remain high. The Fuels division increased volumes, even though demand for heating oil was reduced due to the warm winter weather impacting profitability. Staffordshire Fuels, which was acquired during the year, has been fully integrated and is performing in line with our expectations. The Group’s cash generation has remained strong during the year. Net debt is significantly lower than anticipated, in spite of completing three acquisitions and investing development capital during the year.

ProMetic Life Sciences (TSX:PLI CAD2.81/CAD1,726.41m)*

ProMetic Life Sciences, reported that the U.S. Food and Drug Administration (FDA) has granted a Fast Track designation to ProMetic for its plasminogen drug candidate, currently in a phase 2/3 clinical trial in patients suffering from congenital Plasminogen deficiency. Fast Track designation is a process designed to facilitate the development and expedite the review of drugs to treat serious conditions that fill an unmet medical need, with the main objective of getting important new drugs to the patient earlier. To gain Fast Track designation, Plasminogen therapy demonstrated a strong rationale for its use as a treatment for a serious, often morbid and potentially fatal, condition as well as for treating an unmet medical need which previously largely relied on repeated surgeries to remove recurring obstructive and debilitating lesions. A drug that receives a Fast Track designation is also eligible for a Rolling Review of the Biologic License Application (BLA) by the FDA, allowing the review to proceed more efficiently and facilitating earlier drug approval and access by patients. ProMetic’s Plasminogen was also granted Orphan Drug Designation by the FDA and the European Commission for the US and the European markets respectively. As an orphan drug designated product, ProMetic’s Plasminogen is also eligible for priority review of the BLA, which reduces the standard review period by 6 months and so also speeds the time to availability of this important medicine on the market.

SafeCharge International Group (LON:SCH 196.00p/£299.15m)

SafeCharge, the global provider of payments services, technologies and risk management solutions for online and mobile businesses, provided the following trading update for the first six months of 2016. The Group has enjoyed strong trading in the first half, as a result, adjusted EBITDA for the period will be comfortably ahead of $16m and the Directors are very confident of the outcome for the full year. The Directors confirm that the US dollar is the Group’s functional and most significant currency in terms of contribution to revenues and that nearly 80 percent of the Group’s cash is held in US dollars with sterling balances representing less than 5 percent.

TMT Investments(LON:TMT $1.95/$54.10m)*

TMT Investments, which invests in high-growth, internet-based companies across a variety of sectors, announced the completion of an additional investment in KitApps, Inc, as part of a $1m round led by Digital Future and TMT. Incorporated in Delaware and based in San Francisco, KitApps, Inc. offers a leading event app platform (Attendify), which delivers branded, social-first apps to thousands of meeting and event planners worldwide.  Attendify makes it easy for event planners to create an engaging mobile app and dramatically reduces implementation and lead times through an elegant self-service platform.  Every Attendify app includes private social networking features that boost attendee participation while simultaneously helping event planners capture data around in-person interactions to help optimise event performance. Attendify was founded by Michael Balyasny (CEO) and Artem Iaremchuk (COO) and is relied upon by such leading brands as Google, AstraZeneca, Chrysler, Tableau, and AOL to deliver differentiating mobile event experiences. Attendify will leverage this new round of funding to further accelerate growth and product development.


*A corporate client of Hybridan LLP

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1st June 2016

TMT Investments Invests
SAR trials to open at Royal Marsden
The FEVR is catching on!

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

ALSP* Board Changes, COMS Contract Win, CNS Contract Win, CCS* University Partnership, DEMG Results of Trial, ESP Acquisition, EZH Interim Results, EVG Results, FEVR Trading Update, FDEV Update, INS Acquisition, MMH Acquisition, MMX Launch, MXCP Placing, OPTI* Patent Filling, PINN Acquisition, PLI* Bought Deal, SAR* Clinical Trial, STOB Deal Completion, TERN Acquisition, TMT* Investments

Ace Liberty and Stone (LON:ALSP 4.00p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that Dr Anthony Ghorayeb, currently Non-Executive Director of Ace, assumes the role of Non-Executive Chairman with immediate effect. Dr Ghorayeb is also currently the Executive Chairman and co-founder of LiBank, the Lebanese investment bank offering services tailored to high-net-worth individuals (HNWIs), and the Secretary General of the Levant Business Union.   Keith Pankhurst, currently Non-Executive Chairman, assumes the role of Senior Independent Director.

Coms (LON:COMS 1.47p/£24.50m) 

Coms, a provider of technology and services for smart buildings and commercial spaces, announced that Connect IB, its software and solutions business has been awarded a contract by the owners and management agents of a major city centre shopping centre on the south coast of the UK. The contract sees the implementation of smart technologies to improve the shopper experience along with real time analytical reporting on shopper activity within the centre and the immediate surrounding area. The solution, due for public release in August 2016, utilises smartphone and beacon technology to deliver location based services, loyalty, car parking integration and digital wayfinding within the centre and car park. Connect IB’s cloud-based platform delivers a loyalty scheme for retailers and partners in the immediate area including redemption and analytics. Key to Connect IB providing accurate location based services on Android and Apple devices will be the deployment of a wide area iBeacon network across the whole of the centre and integral multi-level car park, delivered by Coms’ wholly owned subsidiary, Redstone.

Corero Network Security (LON:CNS 22.50p/£46.89m)

Corero Network Security, the network security company, announced the first order for its SmartWall®Threat Defense System from a top ten US mobile network operator. The order, valued at over $0.3m, follows a successful Proof of Concept trial. The mobile network operator is a regional wireless communications service provider to both consumers and businesses, and has a reputation as one of the top technology innovators in the US telecommunications market. The solution comprises multiple Corero SmartWall TDS products, with supporting SecureWatch® services for one year, which will enable the operator to not only protect its infrastructure from DDoS attacks but to also offer DDoS Protection as a Service to its growing customer base.

Crossword Cybersecurity (LON:CCS 192.00p/£4.6m)*

Crossword  Cybersecurity, the technology commercialisation  company  focusing exclusively  on  the  cyber security sector, has partnered with the University  of  Warwick  in  winning  a contract  through the Defence Science and Technology Laboratory’s (Dstl) Centre for Defence Enterprise  to explore novel uses of blockchain enabled documents in military environments. The project will look  at  how to  provide  access to sensitive information in a range of environments, such as HQ office or disconnected, harsh  operational theatres. Professor Carsten Maple, Director of the Cyber Security Centre (CSC) at  WMG, University of Warwick and colleagues at Warwick have conducted research in novel applications of blockchain technologies. Crossword  has also subcontracted Simplexity Analysis to assist  in  the  conceptual  design stages.

Deltex Medical Group (LON:DEMG 4.75p/£13.04m)

Deltex Medical, the global leader in oesophageal Doppler monitoring (ODM), announced the initial results of the largest ever randomised clinical trial of ODM which show substantial reductions in post-operative complications. A group of doctors from Spain, led by Professor Jose Maria Calvo Vecino, presented the findings from their 450 patient multi-centre randomised controlled trial to doctors attending Euroanaesthesia 2016 in London, which is the annual meeting of the European Society of Anaesthesia. The trial was undertaken in five hospitals and included patients undergoing gastrointestinal, urological, gynaecological and orthopaedic surgery. Professor Calvo is head of the Department of Anaesthesia and Critical Care at the Infanta Leonor University Hospital in Madrid and Vice President of the Spanish Society of Anaesthesia.

easyHotel (LON:EZH 98.00p/£61.25m)

easyHotel, the owner, developer, operator and franchisor of “super budget” branded hotels, announced its interim results for the six months ended 31 March 2016. Financial highlights showed total system sales were up 10.4 percent to £9.66m (31 March 2015: £8.75m), total revenues were up 11.6 percent to £2.59m (31 March 2015: £2.32m), slightly ahead of Board expectations and like-for-like revenue for owned hotels increased by 8.0 percent. Adjusted EBITDA  was up 10.9 percent to £0.58m (31 March 2015: £0.52m) and profit before tax was £0.14m (31 March 2015: £0.37m), reflecting increased pre-opening costs (associated with the increased development pipeline), depreciation and amortisation and share based payments. The company also announced an interim dividend of 0.11p per share (31 March 2015: nil). Business highlights showed five owned hotel projects in progress with £4.59m of investment made during the period: Construction commenced on sites in Liverpool and Manchester, planning permission granted in Birmingham with completion expected in a few weeks’ time and planning permission submitted for new hotels in Barcelona and Ipswich. Three new franchise hotels under construction in Brussels, Amsterdam and Bur Dubai (first hotel to be developed under Master Development Partnership signed with MAN Investments LLC to develop easyHotels in the UAE and Oman).

Empiric Student Property (LON:ESP 114.18p/£572.38m)

The Board of Empiric Student Property, the owner and operator of premium student accommodation across the UK, announced that the Group has acquired the freeholds of three operational, direct-let, premium student accommodation properties in Leicester, comprising a total of 106 beds, for a consideration of £8.8m (excluding acquisition costs). Bede Park (completed in 2012) is a conversion of a 1900’s two storey industrial unit, with a further two floors added. The property provides a total of 59 beds, comprising 49 studios and five two-bedroom apartments, as well as communal facilities including a large gym, cinema room and a communal living area. There is a ground floor retail unit, which is currently let to The Co-operative food store.  Bede Park is located to the west of the Soar River on a busy pedestrian route between De Montfort University, which is a ten minute walk away, and the popular Narborough Road area. 136-138 New Walk (completed in 2013) and 160 New Walk (completed in 2015) are both conversions of three storey Victorian mid-terraces, which have been extended to the rear and are all-studio schemes with 30 beds and 17 beds, respectively.  The properties each offer communal facilities, including a gym and cinema room.  Located close to the University of Leicester in an attractive area, these New Walk properties are on a pedestrian-only road linking Victoria Park to the city centre. The properties have an excellent occupational track record and are fully let for the 2015/16 academic year, with 90 per cent already pre-let across the portfolio for 2016/17.

Evgen Pharma (LON:EVG 21.49p/£15.36m)

Evgen Pharma, the clinical stage drug development company focused on the treatment of cancer and neurological conditions, announced its final results for the year ended 31 March 2016. Period highlights included- (1) Successful admission to AIM and £7m (gross) share placing on 21 October 2015. (2) Financial performance in line with expectations which showed a loss of £3.1m reflecting higher activity levels post admission to AIM, a loss per share 6.29p, cash (and short term investments and cash on deposit) at 31 March 2016 increased to £7.1m (31 March 2015: £0.2m), reflecting successful completion of a pre-IPO fund raising and a placing on AIM admission. (3) Lead product SFX-01 data shows promise as adjunct to hormonal therapy in patient-derived xenografts using cancer tissues from early and late stage breast cancer patients (data presented at the American Association of Cancer Research). Post-period highlights included- (1) First patient dosed in the SAS (SFX-01 After Subarachnoid Haemorrhage) Phase II clinical study at University Hospital Southampton. (2) Preclinical study underway comparing SFX-01 with approved MS drug, Tecfidera®.

Fevertree Drinks (LON:FEVR 707.88p/£815.77m)

Fever-Tree, the supplier of premium carbonated mixers for alcoholic spirits by retail sales value, announced a trading update for the four months to the end of April 2016. The Board announced that momentum seen in 2015 has continued into the start of 2016.  Fever-Tree has outperformed expectations in the first four months of the year as the premium mixed drink movement continues to grow.  This strong performance, alongside a currently favourable foreign exchange environment, has also driven gross margin improvements. Given the strong sales in the period to date, the Board anticipates that the results for the full year ending 31 December 2016 will be materially ahead of market expectations.

Frontier Developments (LON:FDEV 195.00p/£68.71m)

Frontier Developments, a leading developer of video games, announced the following update. Frontier yesterday launched the next major expansion of Elite Dangerous: Horizons, ‘The Engineers’. This release comes slightly earlier than previously anticipated following a successful Beta period, and in combination with sales performance to date, will have a positive impact on revenues and profitability in the financial year to 31 May 2016. The Group has also announced that it plans to release Elite Dangerous: Horizons for Xbox One on 3 June. Frontier released the second Alpha build of Planet Coaster, the Group’s second self-published franchise, on schedule on 24 May. The Alpha 2 build delivers further creative tools to the Planet Coaster Alpha community including terrain deformation and the next iteration of coaster construction and is a step along the roadmap towards full release, which remains on track for the final quarter of 2016.

Imperial Innovations Group (LON:IVO 400.25p/£634.25m)

Imperial Innovations Group announced the completion of a £6.2m funding round in Featurespace, the Cambridge-based Adaptive Behavioural Analytics company focused on the detection and prevention of fraud in the financial services and gaming sectors.  Featurespace is an Adaptive Behavioural Analytics company which has the ability to develop an understanding of normal patterns of behaviour and anomaly detection for individuals in real time. The Company has developed a machine learning software platform, the behaviour analytics engine (ARIC) that monitors every individual, one customer at a time, to deliver real-time decision capabilities. The technology is based on Bayesian statistics and research undertaken at the University of Cambridge by the late Professor Bill Fitzgerald and Featurespace CTO, David Excell. Featurespace’s products provide significant economic benefits to their customers, providing a granular view of transactions allowing them to predict likely fraud and take appropriate action. The software learns individuals’ behaviour and therefore produces a significantly higher level of accuracy identifying fraud and a lower level of false positives compared to competing solutions. Innovations has committed £2.5m to the round alongside new co-investor TTV Capital, a US venture company focused on early-stage fintech companies, which contributed £2.4m to the round. The balance was made up by existing investors, including Nesta and a number of members of the Cambridge Angels group. As at 31 January 2016, Innovations had invested £3.9m in Featurespace with a net carrying value of £6.8m. As a result of this new investment, the Group has a 36.9 percent undiluted stake in the Company.

Instem (LON:INS 230.48p/£37.20m)

Instem, a provider of IT solutions to the global early development healthcare market, announced the acquisition of UK-based Samarind, for a total consideration of up to £2.5m, to be satisfied by a combination of cash and new ordinary shares in the Company. The acquisition is expected to be earnings enhancing in 2016 and going forward. Samarind is based in Deeside, UK and provides Regulatory Information Management (RIM) software (Samarind RMS) and services to the life sciences sector. Its solutions significantly enhance the quality of regulatory information and help to achieve and maintain compliance for pharmaceutical, biotech and medical device products. Samarind has 10 employees. The consideration comprises £1.5m on completion , £0.65m of deferred consideration and up to a further £0.35m which is payable contingent upon the financial performance of Samarind.

Marshall Motor Holdings (LON:MMH 180.00p/£139.03m)

Marshall Motor Holdings, one of the UK’s leading automotive retail and leasing groups, announced the strategic and value enhancing acquisition of the entire issued share capital of Ridgeway Garages (Newbury) Limited (including all of its subsidiaries) for a cash consideration of £106.9m, funded from the Group’s existing resources. Ridgeway is a multi-franchise dealer group operating across the affluent southern home counties of England, Wiltshire and Dorset, representing 12 brands via 30 franchised dealerships. Ridgeway’s brands comprise: Audi, BMW, Jaguar, Land Rover, Maserati, Mercedes-Benz, Mercedes-Benz Commercials, MINI, SKODA, smart, Volkswagen and Volkswagen commercial vehicles. In addition, Ridgeway operates five own branded Select multi-brand used car centres, two trade parts specialists, two service centres authorised by both SAAB and SEAT and two standalone body shops and a pre delivery inspection centre. Ridgeway’s consolidated FY15 revenues were £722.6m, adjusted EBITDA was £20.2m and year-end shareholders’ funds were £55.4m including £15.2m of net debt.

Minds + Machines Group (LON:MMX 10.35p/£77.42m)

Minds + Machines Group Limited, the top-level domain registry company, reported the record-breaking launch of its .vip top-level domain that entered General Availability. As of 1600hrs UTC on 22 May 2016, registrations taken by the Company had reached 203,720, .vip having been placed in the top 20 of new gTLDs within 5 days of launch, according to industry tracking site, By comparison, .xyz, the world’s leading new gTLD in terms of registrations, with 2.9 million current registrations, took some 21 days to reach an equivalent number of registrations when launched in June 2014. In terms of billings and orders received for .vip names by 1600hrs UTC 22 May 2016, the combined total to date is US$3.2m, which will be recognised over the term of the domains. The Company is confident that renewal rates have the potential to be meaningful as no “freemium” strategies or equivalent were used during the launch phase to generate initial volume. The Company acquired .vip through auction for approximately US$3.1m in September 2014, highlighting the strong return on capital of the business model. To date, .vip names have been retailed through 77 registrars globally of whom 34 are within China. Registrations from China account for over 80 per cent. of all .vip names sold so far.

MXC Capital (LON:MXCP 2.65p/£83.34m)

MXC Capital Limited, the technology focused merchant bank, announced that it has raised £7m by way of a placing  at a price of 2.55  pence per share with both existing and new investors. In tandem, the company has also received credit approval to extend its existing bank facility to £6m. Gross proceeds of the placing of £7m with extension of existing banking facilities to £6m allows the company to have £13m of capital available to invest in identified near term opportunities. In recently announced interims, the Board announced an extended policy of returns to shareholders as well as its confidence in the Company’s prospects, with the placing supported by a mix of new and existing investors, further strengthening the Company’s share register

OptiBiotix Health (LON:OPTI 82.18p/£64.06m)*

OptiBiotix Health, life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announced a new patent filing. The filing protects advances made in OptiBiotix’s skin division in identifying microbial proteins which have the potential to prevent Health Care Acquired Infections (HCAI) caused by antimicrobial resistant (AMR) superbugs such as MRSA.  HCAIs lead to higher morbidity and mortality, and cost the NHS an estimated £1bn per year. This represents a global market opportunity of US$82bn.  The new patent filing reflects scientific advances in identifying microbial proteins which: – i. Protect skin cells from being damaged by pathogenic bacteria reducing the likelihood of infection ii. Prevents the growth of pathogens on the skin, reducing the risk of infection spread iii. Displaces pathogens from colonised skin and prevents their reattachment. This reduces the risk of re-infection with resistant organisms. These proteins are likely to be delivered in creams or oils with the aim of reducing the risk of infection from AMR superbugs such as MRSA. The Company believes that this filing adds a further layer of protection to its growing intellectual property portfolio in skincare and opens up product opportunities in multi-billion dollar global markets including Skincare (US$121bn), HCAIs (US$82bn), Eczema (US$3.8bn), Psoriasis (US$7.4bn) and Wound care (US$18.3bn).

Pinnacle Technology Group (LON:PINN 6.80p/£15.62m)  

Pinnacle Technology Group, the provider of ‘IT as a Service’, announced that it has acquired the entire issued share capital of adept4 Limited, a provider of cloud based IT services and solutions headquartered in Warrington, funded through the issue of £5m of unsecured loan notes to the Business Growth Fund Plc. Pinnacle also announced the Company’s intention to change its name to adept4 plc. adept4 provides IT as a Service  encompassing fully managed IT service contracts, cloud based services, professional services, software support and development. It has a dedicated, ITIL aligned, 24x7x365 service desk and a tier 1 Microsoft SPLA and Cloud Service Provider with a track record in the adoption of Microsoft Azure plus partner status with leading technology vendors such as Cisco, Veeam and VMware. The company has c. 60 customers with average contract lengths of three to six years, with a strong management team with experience of both organic and acquisition growth all of whom remain in the business. In the year to 31 December 2015 adept4 generated revenue of £5.0m and EBITDA of £0.75m, with 67 percent recurring revenue, expected to increase due to a growing long term support contract base and organic growth. Initial consideration of £4.5m satisfied in cash plus deferred consideration of £1m in cash, payable in January 2018.  Further contingent consideration of up to £1.5m in cash is payable in March 2018, subject to performance criteria for the year to 31 December 2017. The acquisition part financed through issue of £5m loan notes to the BGF with an associated option to subscribe for shares at a price of 6 pence per share, representing 43 percent uplift from the February placing price of 4.2 pence. Post completion, Pinnacle will have cash at bank of £4.3m.

ProMetic Life Sciences (TSX:PLI CAD2.91/CAD1,744.58m)*

ProMetic Life Sciences closed its previously announced bought deal public offering of common shares in the capital of the Corporation through a syndicate of underwriters led by RBC Capital Markets and Canaccord Genuity Corp., and which included Scotiabank, CIBC Capital Markets, National Bank Financial Inc., Paradigm Capital Inc. and Beacon Securities Limited. ProMetic issued shares at a price of $3.10 per share for aggregate gross proceeds of $60,140,000.  As previously disclosed, the Corporation intends to use the net proceeds from the Offering for: (1) the advancement of clinical programs relating to the Corporation’s orally active anti-fibrotic drug PBI-4050, such as scleroderma and cystic fibrosis, (2) the scale-up of PBI-4050 follow-on drug candidates and their advancement into clinical stages, (3) the advancement of new clinical indications for Plasminogen, including wound healing, (4) the expansion of clinical uses and proprietary positions on some plasma-derived orphan drugs, and (5) the expansion of manufacturing capabilities related to the plasma-derived therapeutics. These initiatives, as well as providing additional working capital, will allow the Corporation to continue to exercise greater control and ownership over its technology platforms, thereby providing an opportunity to retain a greater portion of the associated value for its shareholders. The Corporation also announced that it has closed its previously disclosed concurrent private placement entered into with Structured Alpha LP (SALP), an affiliate of Thomvest Asset Management Inc. This concurrent private placement was entered into following the exercise by SALP of its pre-emptive right to participate in any future public offering of ProMetic’s common shares.

Sareum Holdings (LON:SAR 0.841p/£22.19m)*

Sareum Holdings, the specialist cancer drug discovery and development company, announced that the Phase I clinical trials of CHK1 inhibitor drug candidate CCT245737 are anticipated to open at the Royal Marsden Hospital, Sutton on 31 May 2016. Two Phase I clinical trials in cancer patients are being conducted, in collaboration with co-development partners, the CRT Pioneer Fund. One trial will use CCT245737 in combination with standard-of-care chemotherapy and will ultimately target lung and pancreatic cancer patients. The other trial will use CCT245737 as a single anti-cancer agent and will initially target various cancers. As noted in its announcements of 1 February 2016 and 5 April 2016, Sareum satisfied a financial commitment of £0.79m to the funding of these trials in December 2015. The submission of the Clinical Trial Applications in February 2016 triggered the receipt by Sareum of a £0.2m success milestone payment.

Stobart Group (LON:STOB 125.22p/£431.16m)

Stobart, the infrastructure and support services group, announced that further to the announcement of 29 March 2016, it has unconditionally exchanged contracts for the sale of 47 acres of an investment property at Speke in Liverpool, for a cash consideration of £37m. The Group’s intention was to hold the entire 53-acre site as an investment property however it was recognised that Ford Motor Company Limited, the tenant required an Option to acquire 47 acres of the site as part of an Agreement to Lease that was signed on 29 March 2016. Ford has exercised the option to acquire and completion will have taken place on 31 May 2016. The part of the site that Ford are acquiring which cost £15.6m, is held on the Group’s balance sheet at £25.2m and generated an annual rental profit of £0.7m. The sale will result in a significant profit of approximately £11.8m for the Group in the current financial year.

Tern (LON:TERN 14.51p/£10.79m)

Tern, the investment company specialising in the cloud and mobile sectors, announced that it has agreed, subject to contract and completion of satisfactory due diligence, to acquire Flexiant Limited from Flexiant Corporation Limited (FCL) on the following terms: Tern will acquire the entire issued share capital of Flexiant owned by FCL and all intercompany debt owed by Flexiant to FCL. In consideration for the acquisition: Tern will issue 8 million new ordinary shares which will be allotted to FCL in full and final settlement of the intercompany debt; and in the event of a sale of Concerto for more than £6m Tern will pay a further consideration of 50 percent of the sale value in excess of £6m, the additional consideration not to exceed £2m. The acquisition is conditional on: the consent of the loan note holders of FCL and the sale by Flexiant of its Flexiant Cloud Orchestrator business; Tern Plc is informed by Flexiant that it has already agreed terms with such a buyer subject to contract. Flexiant is a leading European provider of cloud management software for cloud orchestration for on-demand, fully automated provisioning of cloud services. Tern has owned an investment of one per cent of Flexiant’s issued shares since November 2013. For the year ended 31 December 2014, the latest year for which audited accounts are available, Flexiant made an operating loss of £3.9m on turnover of £0.75m.

TMT Investments (LON:TMT$1.79/$54.08m)*

TMT Investments, which invests in high-growth, internet-based companies across a variety of sectors, announced the completion of an investment in Vinebox Inc. Incorporated in Delaware and based in San Francisco, Vinebox Inc. was founded by two former corporate attorneys, Matt Dukes and Rachel Vodofsky, in 2015.  Vinebox is the first wine-by-the-glass club.  Members receive three hand-selected wines each month, by the glass, with the opportunity to purchase full-size bottles of their favourites.  Every Vinebox tells a story with tasting notes, pairings, and the people behind the wines.  Vinebox is changing the way people discover, discuss, and drink wine outside of the restaurant. Vinebox is first focusing on the US, the world’s largest wine consuming country with over 100 million wine drinkers.  In 2015, US consumers spent US$53bn on wine.  Vinebox believes it is in an excellent position to capture this market through its new single serving format, bringing wine by the glass into the home. Vinebox was founded by Matt Dukes (CEO) and Rachel Vodofsky (COO).  TMT Investments also announced the completion of an investment in Send A Job, Inc. Incorporated in San Diego, California, Send A Job, Inc. was founded by Erez Marom, Idan Kadosh and Saar Kohanovitch, who combined their IT and Field Service Management (FSM) knowledge and experience to form Send A Job in 2013.  Send a Job caters to a wide range of over 34 field services, ranging from construction, roofing and electricians to computer repair, junk removal and pest control. The Field Service Management industry is growing at a high rate and is expected to rise exponentially from $1.58bn in 2014 to $3.52bn in 2019 due to rapid technological developments in the sector.  Today, companies are demanding real-time based solutions for their field workers, allowing them to accomplish their tasks without any delay or interruption. Send A Job is a Field Service Management CRM software aimed at helping service business owners manage their business with ease.  Send A Job is cloud-based, mobile-enabled, and very flexible, making it an ideal choice for a variety of service industries.  Send A Job aims at combining as many aspects of the FSM industry’s needs as possible under one suite, specifically enabling businesses to track leads, schedule jobs, track sales, manage field teams, use call-tracking solutions and even monitor field technician calls with creative phone masking features.


*A corporate client of Hybridan LLP

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The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

23rd May 2016

Winner is 32 Red, Even, 3rd dozen, high
Taking the LID off
Discovering New Horizons

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

TTR Agreement, 7DIG Contract, ALSP Director Change*, CLIN Agreement, CRX Launch, DEMG New Accounts, DSG Partnership, GLID Share Sale, HZD Agreements, LID Agreement, MDZ Placing*, SAR Board Changes*, SEE Term Sheet, SNTY Contract Win, TAL Trading Update, VRS MoU

32ReD (LON:TTR 131.25p/£109.83m)

32Red, the online gaming operator, announced a three year agreement to sponsor Leeds United Football Club, commencing in the 2016/17 season. The agreement provides 32Red with shirt sponsorship, access to Leeds United’s global fan base and extensive brand visibility throughout the club’s iconic Elland Road stadium as well as across its digital and media platforms. 32Red’s trading during 2016 has remained very strong across the Group’s portfolio.  The Company’s like-for-like net gaming revenues for the first nineteen weeks of the year to 11 May 2016 is up 39 percent on the same period in 2015 and up 71 percent including the contribution from Roxy Palace. The Board remains confident of delivering its expectations for the year.

7digital Group (LON:7DIG 7.25p/£8.84m)

7digital, the B2B digital music and radio services company, announced it has signed a contract with, a fast-growing social media platform based around video and music with a strong international footprint. The deal will contribute to 7digital’s revenues for 2016. 7digital also updated that its client, the technology company founded by musician and entrepreneur, has announced it is now taking pre-orders in the UK for the Dial wearable ‘smartcuff’ device ahead of its launch on 13 May. The Dial’s innovative model allows access to millions of tracks without the need for any additional subscription.

Ace Liberty and Stone (LON:ALSP 4p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that Dr Anthony Ghorayeb, currently Non-Executive Director of Ace, assumes the role of Non-Executive Chairman with immediate effect. Dr Ghorayeb is also currently the Executive Chairman and co-founder of LiBank, the Lebanese investment bank offering services tailored to high-net-worth individuals (HNWIs), and the Secretary General of the Levant Business Union. Keith Pankhurst, currently Non-Executive Chairman, assumes the role of Senior Independent Director.

Clinigen Group (LON:CLIN 546.00p/£625.56m)

Clinigen Group, the global pharmaceutical and services company, and Cumberland Pharmaceuticals Inc., a U.S. specialty pharmaceutical company, have signed an exclusive agreement to commercialise the oncology support drug, Ethyol® (amifostine), in the U.S. This is the first product Clinigen has licensed to Cumberland under the strategic alliance entered into late last year. Ethyol is an FDA approved cytoprotective drug indicated as an adjuvant therapy to reduce the incidence of xerostomia (dry mouth) as a side-effect in patients undergoing post-operative radiation treatment for head and neck cancer. It also reduces the cumulative renal toxicity associated with the repeated administration of cisplatin in patients with advanced ovarian cancer.  This is Cumberland’s first oncology support product and is a good complement to its portfolio of specialty pharmaceuticals. Under the terms of the agreement, Cumberland will be responsible for all marketing, promotion, and distribution of the product in the U.S. Clinigen acquired the worldwide rights to Ethyol from AstraZeneca in 2014, and this is an important step in the revitalisation plan for the product.

Cyprotex (LON:CRX 106.50p/£23.38m)

Cyprotex, a specialist Contract Research Organisation, announced the launch of version 2 of its in silico modelling solution, chemPKTM, which predicts human pharmacokinetics directly from chemical structure. Pharmacokinetics is defined as the study of the concentration of a drug or chemical in the body over time, and is related to its absorption, distribution, metabolism and excretion. Understanding the pharmacokinetics is important for understanding the efficacy (effectiveness) or potential toxicity of drugs or chemicals following their administration. The original version of chemPKTM was able to predict human pharmacokinetics following administration of a single oral dose. Version 2 now has the ability to predict human pharmacokinetics following administration of both oral and intravenous dose. It is also able to simulate repeat-dose administration and so is more relevant to the typical dosing regimen within the clinic. Unlike most competing products, chemPKTM uses a PBPK (physiologically-based pharmacokinetic) modelling approach which is a more robust technique for this purpose. The software is easy to implement and use. It operates on the freely available KNIME Analytics Platform for workflow management which facilitates integration with a wide range of other cheminformatics, analytics and modelling tools.

Deltex Medical (LON:DEMG 3.88p/£10.28m) 

Deltex Medical, the global leader in oesophageal Doppler monitoring, announced that it has added two additional hospital accounts to its platform programme in the USA. The first account is a sister hospital of one of our longest established platform accounts. Deltex responded to increased interest from the additional account in 2015 by allocating clinical support within its dedicated trainer programme. Since then, probe sales have grown steadily and are now running at over 50 probes a month. This account becomes the fifth platform account in the Company’s West Coast territory. The second account comprises two linked facilities in Oklahoma and is the second remote trainer platform account, which the Company is supporting out of its Mid-West territory, with occasional on-site training to supplement the Company’s e-learning programmes. The account is the fourth platform account in the territory and is currently using around 35 to 40 probes a month which it expects to increase as it expands its adoption of enhanced recovery surgical programmes.

Dillistone Group (LON:DSG 17.17p/£17.17m)

Dillistone Group, the supplier of executive recruitment software, announced that its Voyager Software division has signed a development partnership with one of the UK’s ten largest recruitment companies (the Partner). Through the collaboration, the Division will work closely with the Partner to further optimise a new product which will be launched this year.  The Division will retain all intellectual property relating to the new solution.  As part of the contract, the Partner will pay a significant five figure fee to the Division, and will receive discounted rates on post launch licensing.

GLI Finance (LON:GLIF 29.75p/£90.62m) 

GLI, an alternative finance provider to small and medium sized enterprises,  announced that the Company has entered into conditional share sale and purchase agreements in respect of the acquisition by the Company of certain interests in entities within the Sancus and BMS sub-groups of the Company (the Acquisitions).  The move follows a strategic review of the Company’s operations initiated by the Company’s new CEO Andy Whelan in December 2015. Following completion, the combined Sancus BMS Group is expected to make pre-tax profit of approximately £2.5m in 2016, rising to approximately £4m in 2017 when loan books are fully deployed, the businesses are fully integrated and increasing levels of commercial, operating and financial synergies are realised.  The Board also sees potential for the Sancus BMS Group in terms of generating free cash flow to service future dividend payments to the Company’s Ordinary Shareholders, with this free cash flow to be paid up to the Company.

Horizon Discovery Group (LON:HZD 177.00p/£164.79m)

Horizon Discovery Group, the application of gene editing technologies company, announced it has entered into two Original Equipment Manufacture agreements with a global market leading Next Generation Sequencing platform company, with the potential for additional agreements to follow. Horizon is a leading provider of highly characterised genetic materials that are used as reference standards for the development and quality control of molecular assays.  These reference standards help laboratories to establish and validate their workflows. Under the terms of the agreements, Horizon will supply two previously developed HDx™ Molecular Reference Standards that cover many of the genes most commonly linked with cancer progression and response to treatment.  The Horizon materials will be incorporated into assay kits from the NGS manufacturer for a range of applications including cancer research and diagnostics.

LiDCO (LON:LID 7.26p/£14.56m)

LiDCO, the hemodynamic monitoring company, announced it has signed a distribution agreement with its partner ICU Medical, Inc. to sell the LiDCO IM non-invasive hemodynamic monitoring system in the United States. LiDCO IM is a specially configured hemodynamic monitor produced exclusively for ICU Medical that works solely in conjunction with LiDCO’s non-invasive module. LiDCO and ICU Medical have an existing royalty agreement allowing ICU Medical to incorporate LiDCO’s technology into its FDA 510(k)-cleared CogentTM 2-in-1 hemodynamic system, which combines both invasive and minimally invasive hemodynamic monitoring capability on a single platform. Both the Cogent in minimally invasive mode and the LiDCO IM non-invasive monitor use the LiDCO PulseCOTM algorithm to determine cardiac output and stroke volume, allowing continuity of measurement across patient acuity levels. ICU Medical announced on its Q1 2016 earnings call that the company plans further refinements of the Cogent system in advance of a full market release. Availability of the non invasive LiDCO IM system is anticipated for Q3 2016.

MediaZest (LON:MDZ 0.135p/£1.56m)*

MediaZest, the creative audio-visual company, announced that it has raised £0.25m through an oversubscribed placing and that, in addition, it will issue new Ordinary Shares to City and Claremont Capital Assets Ltd following the conversion of loan interest amounting to £50,000, in each case at a price of 0.15p per Ordinary Share. The Issue Price is the price that the market bid price was at closing on 10 May 2016. The Group has made significant progress over the last 12 months and finished the year ended 31 March 2016 with its best ever financial performance. The net funds raised will be used to help deliver current and future projects for existing clients including Hyundai, Adidas, HMV, Diesel and Kuoni. The funds will also provide MediaZest with additional working capital and will help the Company to develop new business opportunities and expand the client base as it looks to build upon recent success and implement its key growth strategy of building a more consistent and recurring income base. In addition, the conversion of £50,000 of outstanding interest will further reduce the amount of shareholder debt owed by the Company and strengthen the balance sheet.

Sareum (LON:SAR 0.885p/£23.56m)*

Sareum Holdings, the specialist cancer drug discovery and development company, announced the appointment of Dr Stephen Parker as Non-executive Chairman of the Company. Dr Stephen Parker succeeds Dr Paul Harper with immediate effect. Dr Stephen Barry Parker, aged 57, is Chairman of Silence Therapeutics PLC.  His career in the healthcare and pharma sector spans over 30 years, including six years in the City in advisory roles. He has sector corporate finance experience having been an investment banker focusing on pharma and biotechnology with Barings, Warburg and Apax Partners and has previously held roles as a partner at Celtic Pharma and Chief Financial Officer of Oxford GlycoSciences.

Seeing Machines (LON:SEE 4.00p/£41.85m)

Seeing Machines Limited, the vehicle operator monitoring technology company, announced that it has signed a term sheet with a US-based investment firm with extensive experience in automotive technologies, for investment into a separately funded company solely focused on commercialising Seeing Machines’ technology in the automotive market.  Seeing Machines would retain a significant equity stake in the new company. The term sheet is non-binding, except for customary legal obligations and due diligence. Seeing Machines and its advisors are working with the lead investor and other investors to finalise the investment round.

Synety Group (LON:SNTY 70.50p/£9.79m)  

SYNETY, a cloud-based software and communications company, announced that, following a successful pilot, its key partner, Bullhorn, has chosen to use the full CloudCall service for its own internal use across Bullhorn’s EMEA operations. CloudCall integrates real-time communications capabilities into cloud-based CRM systems, bridging the gap between CRM software and real-time communications. This results in completely seamless interactions between the disparate technologies. By adopting to use CloudCall, Bullhorn’s staff who use Bullhorn’s own CRM system to manage their activities and customer interactions will be able to benefit from increased efficiency and ease of communications that CloudCall provides.

Ten Alps (LON:TAL 1.17p/£5.12m)

Ten Alps, trading as Zinc Media, the TV and multimedia content producer, provided the following update on trading. Whilst the Company does not yet have total visibility on its full year results, the Directors believe that the Company will fall materially behind market expectations for the year ending June 2016. The Group has continued to sustain losses in certain parts of its publishing operations, the turnaround of which has taken longer than expected. These continued losses are likely to result in the Group not being profitable for the year as a whole, albeit the Directors do expect some improvement on the losses recorded in FY15. The Company is in advanced stages of discussion on the disposal of certain areas of its publishing business and action is being taken to restructure and refocus the remaining parts of the division. The Group’s television and communications businesses are operating profitably, however the television division was impacted by delays in commissioning, which affected the entire industry. Reef, the Group’s recent acquisition, is trading well.

Versarien (LON:VRS 13.75p/£14.52m) 

Versarien, the advanced engineering materials group announced it has entered into a Memorandum of Understanding with Bromley Technologies Ltd to collaborate on the development of graphene enhanced carbon fibre products using Versarien’s graphene nano platelets. Bromley Technologies, founded in 2000 by Dr Kristan Bromley, four time Olympian and World Champion Skeleton racer, is focussed on developing and marketing innovative, game changing products and technologies, particularly in the action sports domain.  Bromley Technologies has particular expertise in carbon fibre composite structures and it is intended that Versarien will collaborate in the design and testing of a wide variety of graphene enhanced composite structures, using Versarien’s patented process. The initial focus is expected to be on products in the elite sports area, where the early adoption of new technology to gain a performance advantage is common place. These products are also expected to showcase the use of graphene in carbon fibre composite structures more widely.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

12th May 2016

On Trakm8
That’s an ACE dividend
Launching the Lid

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

ABDP Interim Results, ALSP Interim Dividend*, CGNR Financing Update*, COG FDA Clearance*, CNIC World’s First, ELA Placing, ITM Grant, LID Launch, LRM Trading Update, , MSG Contract and Agreement*, PLI New Data*, TPG Final Results, TRAK Trading Update, VLG Agreements, VENN Final Results*, VER Fundraise, VIP Results

AB Dynamics (LON:ABDP 515.00p/£87.98m)

AB Dynamics, a designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, announced its Interim Results for the six month period to 29 February 2016. Financial highlights showed revenues increased by 34 percent to £10.11m (H1 2015: £7.56m), profit before tax increased by 50 percent to £2.26m (H1 2015: £1.51m) and net cash at 29 February 2016 was £10.15m (H1 2015: £7.03m). The board also announced an interim dividend increase of 10 percent to 1.21p per ordinary share (H1 2015: 1.1p). Operational highlights showed further expansion of the Company’s Support Engineering in Japan and Germany, dedicated Robot assembly area now in one location and New Driver In Loop Simulator tie up with Williams Advanced Engineering. Moreover, two additional Steering Robots developed to meeting future demand, the company also achieved 12 sales of the Company’s advanced Guided Soft Target and work on infrastructure underway for the new factory build.

Ace Liberty and Stone (LON:ALSP 4.00p/£39.3m)*

Ace Liberty and Stone, the active property investment company capitalising on commercial property investment opportunities across the UK, announced that it intends to pay an interim dividend of 0.033 pence per share, which equates to a total payment of approximately £0.32m. The dividend will be paid on 3 June 2016 to shareholders who were registered on 13 May 2016. The ex-dividend date is 12 May.

Cambridge Cognition (LON:COG 37.50p/£7.97m)*

The neuroscience technology company Cambridge Cognition Holdings has made a submission in respect of its CANTAB Mobile product to the Food and Drug Administration (FDA) in the USA for 510(k) clearance as a medical device for use  within an American healthcare market estimated to be worth in excess of $110 billion. The CANTAB Mobile product was developed to detect episodic memory impairments in early stage Alzheimer’s disease patients aged over 50. Since its launch the product has been used to assess over 25,000 people in the UK since being classified as a European Class IIa Medical Device in 2013. Having established a commercial team in the USA in 2015 to drive sales into its core Academic Research and Pharmaceutical Clinical Trials markets; the FDA submission marks the first step in broadening out the Company’s healthcare technologies into the American market. The direct cost of caring for Alzheimer’s patients in the United States is estimated to be $226bn with half of the costs borne by Medicare. Despite the growing numbers of patients, it is estimated that fewer than 50 percent of Alzheimer’s cases are recognised and documented in primary care3, something the scientists at Cambridge Cognition believe CANTAB Mobile could improve. A series of independent studies has demonstrated that the memory assessment in CANTAB Mobile is sensitive to detecting the earliest signs of prodromal Alzheimer’s disease up to three years before a clinical diagnosis. Such early detection could serve to maximize the potential therapeutic benefit of treatment, enhance patient quality of life and reduce the burden on residential and nursing care services.

CentralNic (LON:CNIC 44.05p/£40.51m)

CentralNic Group, the internet platform business which derives revenues from the global sale of domain names, announced that it is the world’s first Wholesaler to achieve sales of 4 million domain names using new Top-Level Domains (TLDs), according to the domain industry statistics website The total number of registrations represents a 33 percent increase since 15 February 2016, when CentralNic became the first company in the world to achieve 3 million new TLD registrations. In addition, five of CentralNic’s exclusive TLDs, .xyz, .site, .online, .website, and .space, retain their positions in the top 20 amongst 978 new TLDs launched to date, with .site moving up from the 19th most subscribed new TLD to the 7th most subscribed TLD. CentralNic’s Wholesale Division is one of its 3 growing and profitable business units, which benefit from very strong cash flows, recurring earnings and scalability with relatively fixed costs. Its retail Division was recently enhanced with the acquisition of Instra Group in January 2016, and its Enterprise Division is taking advantage of the increasing role of large corporations in the domain name industry.

Conroy Gold and Natural Resources (LON:CGNR 31.00p/£1.67m)*

Conroy Gold and Natural Resources, the gold exploration and development company focused on Ireland and Finland, announced that it has conditionally raised £1.015m (€1.28m), prior to expenses, through a placing of shares at 18.5 pence and 5,486,485 warrants at an exercise price of 37 pence per warrant. Furthermore, Metal Tiger plc has subscribed for 675,675 Placing Shares and 675,675 Warrants. Following Admission, Metal Tiger plc will be interested in 675,675 Ordinary Shares in the Company, representing 6.13 percent of the Company’s enlarged share capital. The Company intends to use the proceeds of the Placing for ground operations and the advancement of the Company’s principal gold opportunities and in particular the newly combined Clay Lake and Clontibret targets, where the Company has established a combined exploration target of 5 million oz of gold, and for working capital generally.

Eland Oil & Gas (LON:ELA 34.00p/£63.45m)

Eland Oil & Gas, an oil & gas production and development company operating in West Africa with an initial focus on Nigeria, announced the proposed placing of new voting ordinary shares and, as required, non-voting right ordinary shares, each of 10 pence each in the Company by way of an accelerated book build in order to raise proceeds of approximately $15m, with the option for enlargement. It is expected that the Placing Price will be at, or around, 34 pence per Placing Share. The net proceeds of the Placing will be used: to fund the re-entry, completion and production of the Gbetiokun-1 well, an existing discovery within the OML 40 licence; to develop a supplementary export route for such production; and for working capital purposes. The Gbetiokun field has been estimated by Netherland, Sewell & Associates Inc. to contain gross 2P Reserves of 10.8mmbbl (net entitlement: 3.9mmbbl), flow at an initial gross rate of 7,800 bopd (net: 3,510 bopd) and generate an NPV10 of $43.9m net to Eland. The re-entry of Gbetiokun-1 is anticipated to cost $6.5m net to Eland and the Company is targeting initial production in H2 2016. In addition to the above, following the recent successful OP-1 and OP-3 workovers and upon the re-opening of the Forcados terminal, which is expected to occur by June 2016, the Company anticipate achieving normalised production rates from the Opuama field of over 9,500 bopd (net: 4,275 bopd).

ITM Power (LON:ITM 14.88p/£31.29m)

ITM Power, the energy storage and clean fuel company, announced the award of a €5m EU grant for the BIG HIT (Building Innovative Green Hydrogen systems in an Isolated Territory) project funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH JU). The FCH JU selected BIG HIT as the only hydrogen project in its Hydrogen Territories tender to receive funding. ITM Power is the electrolyser provider and will receive €2.27m over five years. The Orkney Islands have over 50MW of installed wind, wave and tidal capacity, generating over 46GWhr per year of renewable power, and has been a net exporter of electricity since 2013. Energy used to produce the hydrogen for BIG HIT will be provided by the community-owned wind turbines on Shapinsay and Eday, two of the Orkney islands. At present the Shapinsay and Eday turbines are often ‘curtailed’, losing on average more than 30 percent of their annual output. In addition, their electricity output is limited by grid capacity restrictions in Orkney. Production of hydrogen from this curtailed energy by electrolysis of water gives ‘green’ hydrogen from renewable energy sources with a very low carbon footprint. BIG HIT builds on foundations laid by the Orkney Surf ‘n’ Turf initiative, which will see production of hydrogen on the islands of Eday and Shapinsay using wind and tidal energy. These are both world leading pilot and demonstration projects, which deploy a fully integrated model of hydrogen production, storage, transportation and utilisation for low carbon heat, power and transport. These projects address a number of operational and development challenges including the logistical and regulatory aspects for transport of hydrogen fuel between islands, and the orientation and familiarisation with new hydrogen building and transport technologies. BIG HIT will enable the deployment of 10 electric vans, which will each be fitted with a hydrogen fuel cell range extender. A hydrogen refuelling station will be constructed in or near to Kirkwall at a site to be selected.

LiDCO (LON:LID 8.18p/£15.29m)

LiDCO, the hemodynamic monitoring company, announced it will be launching its new LiDCOunity monitor at the 2016 Annual Congress of Enhanced Recovery and Perioperative Medicine. Interest in Enhanced Recovery programmes in the US has been growing since the late 2000’s. The Duke University Medical Centre Enhanced Recovery Programme started in 2010, and since then many centres around the US have started similar programmes. The Company will use the conference to showcase the US launch of the LiDCOunity product which was recently granted approval by the FDA. The LiDCOunity combines the full suite of LiDCO technology allowing the patient to be monitored across the entire clinical pathway on a single monitor.

Lombard Risk Management (LON:LRM 10.15p/£30.78m)

Lombard Risk Management, a leading provider of integrated collateral management and regulatory reporting solutions for the financial services industry, provided an update on trading for the Company’s financial year ended on 31 March 2016. The Company announced that revenues for the year will be slightly ahead of current market forecasts, primarily as a result of strong revenue growth in the Company’s Regulatory Compliance division. The year ended 31 March 2016 has been one of substantial change for the Company, with changes in the leadership team and a renewed focus on its core offerings of collateral management and regulatory reporting software. These changes have inevitably come at a price and Lombard Risk has incurred some significant non-recurring additional costs. These costs amount to approximately £2.5m, of which approximately £1.7m relate to non-cash items, including further impairment charges and other provisions. Other costs incurred relate to the transition of the executive leadership team; a full rebranding of the Company’s products and corporate presence; and significant investment in hiring new talent for the sales and product development teams in particular. The Company expects to report a year-end cash balance of £3.3m and a statutory loss, stated after the non-recurring items referred to above, in region of £2.1m to £2.3m.

Milestone Group(LON:MSG 0.780p/£5.68m*

Milestone, the provider of digital media and technology solutions announced that its joint venture partner in Nexstar, Black Cactus Holdings Limited, has signed a contract with music and media company Rock Solid Development Ltd to utilise the innovative music publishing platform, Backstage HD. Further to the announcement made on 14 March 2016, the platform provides a one-stop-shop technical solution for musicians, recording artists, independent labels and the music industry. Rock Solid will use the Backstage HD platform to help them manage and develop their stable of artists quickly and cost-effectively. The first artist to launch on the platform from Rock Solid is East London rapper, singer and producer Jammin. Nexstar will receive a revenue share per transaction which includes sales of music, ticket sales and advertising revenue. The company also announced that it has signed an agreement with Axis Stars Limited to work with the Passion Project and utilise the suite of technology solutions available through the Nexstar Joint Venture. Axis Stars and Milestone have agreed to enter into an arrangement where international footballer, Louis Saha will become an Ambassador of the Passion Project and through his Axis Stars vehicle, will market and cross-promote to his contacts, sponsors, supporters and investors the Passion Project. Athletes, celebrities, musicians and actors are well known and trusted brands in their own right and the ignition point to the Passion Project as they bring relevant audiences in scale. The signing of an agreement with Louis Saha is the first of many we expect to complete in the coming months.

ProMetic Lifesciences (TSX:PLI CAD3.02/CAD1,758.08m)*

ProMetic announced that new data including an additional nine patients enrolled in its PBI-4050 phase 2 open label study in patients suffering from type 2 diabetes and metabolic syndrome confirms the efficacy initially reported in the first 11 patients that had completed the treatment period in December, 2015.  In these additional nine patients, administration of PBI-4050 resulted in similar pharmacological activity on the diabetic and metabolic parameters, including the decrease in HbA1c as was shown in the original 11 patients.

TP Group (LON:TPG 3.18p/£13.20m)

TP Group, the specialist technology, engineering and managed solutions group, announced final results for the year ended 31 December 2015. Financial highlights showed revenue was at £20.4m (2014: £21.7m), with operating losses reduced by 41 percent to £2.3m (2014: £3.9m) and adjusted EBITDA losses reduced to £nil (2014: £2.1m). Group cash closed at £7.0m (2014: £9.6m) leaving the company ahead of expectations. The company’s group order book was £14.5m (2014: £17.3m) and there is strong visibility of 2016 revenues.

Trakm8 Holdings (LON:TRAK 266.00p/£86.71m)

Trakm8, the telematics and data provider to the global market place, announced a trading update for its financial year ended 31st March 2016. Revenues were up 44 percent year on year, with strong organic growth with like for like revenues up 28 percent year on year and recurring revenue up c.50 percent to over £8m. Orders received were up 29 percent year on year (like for like basis), with 151,000 units now reporting to our servers. The company also reduced year-end net debt of £0.97m, reflecting strong cash generation and introduced a maiden 2p final dividend per share to be proposed.

Venn Life Sciences (LON:VENN 26.74p/£16.82m)*

Venn Life Sciences, a growing Clinical Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced its audited final results for the year ended 31 December 2015. Financial Highlights showed revenue up 135 percent to €11.47m (2014: €4.88m), EBITDA profit (before exceptional items) of €0.39m (2014: loss of €1.53m) and a loss for the year €0.20m (2014: €1.8m). EBITDA profit attributable to CRO Business €0.8m (2014: loss of €0.96m), EBITDA losses attributable to investment in Innovenn €0.44m (2014: loss of €0.57m) and cash and cash equivalents as at 31 December 2015 of €3.8m (2014: €0.8m). Operational Highlights showed the acquisition of Kinesis Pharma BV, extending service capabilities into drug development, the resource base increased to 196 personnel and the re-location of existing Paris operations into “flagship” location. Post Period End highlights showed a strong rate of business wins and new proposals continues, with €3.4m contract secured in January and revenues of €4.4m booked for Q1 2016 (Q1 2015: €2.0m).

Venture Life Group (LON:VLG 57.80p/£22.46m)

Venture Life Group, the international consumer self-care group focused on developing, manufacturing and commercialising products for the ageing population, announced that it has signed its first new international distribution agreements for the UltraDEX range of fresh breath products since acquiring the range with the Periproducts Limited acquisition which completed on 4 March 2016. The Company has signed exclusive five year distribution agreements with Laboratorios Serra Pamies, S.A in Spain and Shanghai Rifto Medical Co., Ltd in China. Serra Pamies’s self-care division promotes its products to pharmacies and specialists, and UltraDEX will be an important product range for them.  The experience of Serra Pamies within the Spanish oral healthcare sector has been an important factor in Venture Life’s decision to enter into an exclusive distribution agreement with Serra Pamies for the whole of the Spanish market. Shanghai Rifto is a specialist dental sales company selling directly into the dental channel in China and this UltraDEX distribution agreement gives Shanghai Rifto exclusivity in the professional dental sector in this market.  In the OTC oral healthcare market in China, brands are typically marketed initially through the dental channel to gain professional endorsement and recommendation to patients. In due course, and as the brand becomes established, Venture Life intends to appoint an appropriate partner as the distributor for UltraDEX in the OTC pharmacy channel. The UltraDEX products are already approved for distribution in the EU but the timing of the launch of UltraDEX in China is subject to local registration of the products with the Chinese Food and Drug Administration. These agreements reflect the strong interest being seen by Venture Life in the UltraDEX range across Europe and beyond by potential distribution partners since the Acquisition.

Vernalis (LON:VER 48.25p/£212.38m)

Vernalis, a specialty pharmaceutical company with significant expertise in drug development, announced that it has conditionally raised £40m, by way of a non pre-emptive placing for cash of 80,000,000 new Ordinary Shares at the Placing Price of 50 pence per new Ordinary Share, conditional upon approval of Shareholders at the General Meeting. The net proceeds of the Placing, together with the Company’s existing cash resources, are intended to provide sufficient working capital to cover a conservative risk-adjusted roll-out plan for Tuzistra® XR, the forthcoming re-launch of Moxatag® and the future launches of the remaining four US cough cold programmes under development with Tris, whilst enabling increased promotional activity, if deemed appropriate.

Vipera (LON:VIP 3.50p/£9.37m)

Vipera, the specialist provider of mobile financial software services, announced its audited financial results for the year ended 31 December 2015. Revenue was up to €6.8m (2014: €5.9m), net cash at period end of €3.2m (2014: €1.0m) and a 42 percent increase in revenues arising from the Company’s Motif platform, mobile financial services and other digital projects. Vipera’s Card Control product publicly launched at Deutsche Bank, with enlargement of deployment with Government Savings Bank of Thailand and the launch of MyCartaBCC for Iccrea Group in collaboration with KPMG. The company also completed an equity fundraise of €3.7m to provide a strong financial platform to execute on growth strategy.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

8th March 2016

Avingtrans’ engines on full thrust
No barriers for Digital Barriers

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

AVG Contract Win, COG Partnership, COMS Contract Win, DGB Agreement, ECK Contract Win, HZD Joint Venture, NWF Acquisition, PEG* Contract Win, PLI* Investment, SAR* Half-Yearly Results, WSG MOU, WYG Contract Win

Avingtrans (LON:AVG 143.55p/£39.53m)

Sigma Components, which forms Avingtrans PLC’s aerospace division, has signed a ten year contract with Rolls-Royce valued at more than £75m to supply pipe assemblies for a range of engine programmes including the rapidly growing Trent XWB variants fitted to the Airbus A350. The 10-year contract follows the successful completion of Sigma’s acquisition of Rolls-Royce’s internal pipe manufacturing businesses in Nuneaton (UK) and Xi’an (China) for £3.5m, which was announced on 29 January 2016.

Cambridge Cognition Holdings (LON:COG 67.00p/£11.56m)

Cambridge Cognition, which specialises in cognitive assessment technologies including those enabling the early detection of Alzheimer’s disease, announced a new partnership with London based design and research agency Ctrl Group to produce novel digital health applications for new markets with prototype products expected in the second half of 2016. Mental ill health is the world’s largest cause of disability and economic loss. In the UK alone, one in four adults experience at least one diagnosable mental health problem each year. With an estimated half a billion people affected worldwide, the cost to global economies is on course to exceed $6tn per annum by 2030. Common mental health disorders such as dementia, depression and anxiety are characterised by symptoms that can fluctuate regularly, which until now has created difficulties for researchers and healthcare professionals as infrequent assessments in controlled settings are unable to reflect a patient’s health between visits and in everyday life. By engaging with individuals through wearable and smart devices the new technology being developed will provide a richer and more natural profile of mental health to improve the understanding, diagnosis and treatment of cognitive disorders; helping people to lead fuller, more active lives and dramatically reduce global healthcare costs. Under the terms of the partnership, digital health products are being designed and developed enabling near-user cognitive testing on wearable and smart devices. More meaningful cognitive data will enable healthcare practitioners to detect mental health risk factors earlier, reduce the likelihood of relapse and, by tracking daily activity, help individuals to better understand and manage their cognitive health. For pharmaceutical companies, understanding the real world impact of interventions will support clinical trials of drug development candidates and marketed treatments for chronic diseases. The new range of products will be licensed initially to pharmaceutical partners and healthcare providers through relationships established by both Cambridge Cognition and Ctrl Group.

Coms (LON:COMS 1.62p/£21.56m)

Coms, the leading provider of infrastructure and smart building solutions, announced that its core operating division, Redstone, has won a strategically significant contract to design and install an in-building cellular system serving nearly one million square feet of office space in the city of London.  The contract is for the UK Headquarters of one of Redstone’s existing clients.  In-building cellular systems allow users to use their mobile phones and mobile-connected devices where signal would otherwise be an issue, so is relevant to all buildings and organisations where a connected workforce is important. This in-building cellular project, worth some £0.75m, will see Redstone design and install technology from leading global wireless technology provider CommScope. The deal is significant for Redstone on many fronts: the Company is the first smart building technology integrator to win an in-building cellular contract of this scale in the UK; it represents an example of one of a new range of smart building technology offerings; and it demonstrates Redstone’s ability to cross-sell and upsell to its existing customer base. The deal is also significant for Redstone’s partnership with CommScope, because it represents the first sale of CommScope’s ION-E technology in the UK.  ION-E provides a number of advantages over other systems including its ability to make use of  existing infrastructure and digital technology within a building, thereby reducing costs and simplifying installation.

Digital Barriers (LON:DGB 46.00p/£79.25m)

Digital Barriers, the specialist provider of visually intelligent technologies to the global surveillance, security and safety markets, announced that it has signed an agreement with Etihad Etisalat Company (Mobily) and its Saudi Arabian integration services partner, Advanced Communication Systems (TeleQualitas), to launch a Video Surveillance as a Service (VSaaS) offering across the Kingdom of Saudi Arabia. The agreement, signed at the Mobile World Congress 2016 in Barcelona, Spain, represents the first offering of its kind in Saudi Arabia. The VSaaS offering will be based on the Group’s EdgeVis Live platform. Powered by Digital Barriers’ TVI software, this platform can deliver secure distribution of high-definition, real-time video from anywhere to anywhere, and features end-to-end security, and the ability to stream usable live video over 60 percent less bandwidth than standard technologies. This exceptionally efficient use of available bandwidth enables EdgeVis Live to deliver significant capability benefits and material cost savings over competing technologies. EdgeVis Live has already been sold into more than thirty countries, and counts some of the most prominent defence and security agencies in the world as its customers, as well as an increasing number of commercial organisations. Mobily selected EdgeVis Live to provide its customers with a higher-quality cellular video surveillance service than competing technologies. EdgeVis Live also provides Mobily with the ability to centrally manage and optimise the network capacity dedicated to the service in real time. In addition to the new range of VSaaS solutions, Mobily will also offer its customers a wide range of the Group’s edge-intelligent surveillance, security and safety technologies optimised for wireless networks. This agreement with TeleQualitas includes an initial contract valued at £1.0m for EdgeVis Live and SafeZone Edge solution sets for ongoing critical infrastructure programmes.

Eckoh (LON:ECK 45.00p/£100.03m)

Eckoh, the global provider of secure payment products and customer contact solutions, announced that it has signed a new four-year, multi-million pound global procurement contract with an existing Eckoh client, a leading global financial services company. Under the terms of the new contract, which extends the scope and duration of Eckoh’s existing client relationship, Eckoh and West Corporation have been selected following a tender process as the client’s global partners, working together to deliver the customer self-service provision. The collaboration represents a further strengthening of Eckoh’s relationship with West, with Eckoh and West together providing hosted VoiceXML telephony services for handling customer self-service enquiries on a global basis including the US market. Eckoh has worked with the client since 2008, hosting a range of automated services across all major European countries and other global territories. The new contract term begins immediately and will run for an initial four years with an option to extend for an additional two years. Customers will be able to access the client’s services by calling local telephone numbers in their country of origin. Their calls are then routed to the hosted platforms in either the US or UK, where they can select from a range of self-service customer care applications. If required, calls can then be onward routed to contact centres anywhere around the globe. It is anticipated that new multi-channel, self-service provision such as live agent video and web chat will be delivered over the course of the contract; as well as new territories in line with customer expansion. In addition, services will be enhanced to incorporate more natural language based speech recognition.

Horizon Discovery Group (LON:HZD 159.95p/£150.03m)

Horizon Discovery Group plc, the international gene editing company, announced that it has formed an immuno-oncology joint venture, Avvinity Therapeutics, with Centauri Therapeutics Limited, a UK-based biotechnology company focused on the discovery and development of novel molecules targeting life-threatening infectious diseases. This transaction represents part of Horizon’s previously outlined strategy to invest up to £10m, further leveraged by its IP, technology platforms and know-how, to identify the next generation of molecular and cellular cancer therapeutics. Avvinity will combine Horizon’s gene editing, immunology, oncology and drug discovery capabilities with Centauri’s Alphamer technology to provide a powerful and proprietary platform to discover and develop novel immuno-oncology therapeutics, for both solid tumours and leukaemias. Avvinity will be targeting an immuno-oncology market currently worth £25bn per year and expected to grow to approximately £50bn per year by 2020. Under the terms of this agreement, Horizon will out-license certain background intellectual property relating to its translational genomics and drug discovery platforms, and will invest up to £5.3m over two tranches with the first tranche of £2.5m committed, and the second to be committed at Horizon’s discretion pending the progress of three development programs. Centauri will license background IP and expertise on its Alphamer technology to Avvinity, which will have exclusivity for the field of oncology for an initial three year period and can be extended via the issue of further equity concurrently with the raise of new investment. Avvinity will be managed jointly by Horizon and Centauri, and based on the investment of IP, technology and the first tranche of funding; Horizon will own 33 percent of Avvinity’s equity. The joint venture will be managed within Horizon as part of the Company’s Research Biotech business (formerly Horizon’s Leveraged business unit). Neither Horizon nor Centauri will be obliged to provide further funding to Avvinity, though both retain pre-emption rights and may elect to participate in future funding rounds. Subject to achieving key development milestones, Avvinity plans to raise significant new external investment to take its innovative drugs into clinical trials, at which time the value of Horizon’s stake in the business would be highly-material.

NWF Group (LON:NWF 179.00p/£86.87m)

NWF Group, the specialist agricultural and distribution business, announced it has acquired Jim Peet (Agriculture) Limited, a well-established ruminant feed manufacturer. Jim Peet started trading in 1977 and supplies over 50,000 tonnes of compound and blends to dairy, beef and sheep farmers across the North of England and South West Scotland. The business produces a range of compounds and blends from two production sites based at Longtown near Carlisle and Aspatria near Wigton. This acquisition delivers strategically important manufacturing facilities to support Jim Peet and NWF feed production.  It will supply customers in the North of England and Scotland and complements NWF’s existing facilities in the Midlands and South West.

Petards Group (LON:PEG 12.30p/£4.30m)*

Petards, the developer of advanced security and surveillance systems, announced that it has been awarded a £0.8m contract from the UK Ministry of Defence (MOD) for the provision of communications equipment and related services. Petards has a long established reputation as a supplier of  radio communications equipment together with related engineering services to the MOD and the award of this new £0.8m project covers the delivery of radio equipment and engineering support services, a good proportion which is expected to be delivered during the first half of 2016.

ProMetic Life Sciences (TSX:PLI CAD3.05/CAD1,763.02m)*

ProMetic, a long established biopharmaceutical company with globally recognised expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development, announced that it has secured a follow-on investment from Structured Alpha LP, an affiliate of Peter J. Thomson’s investment firm, Thomvest Asset Management Inc., consisting of a $30m original issue discount note. As partial consideration for the Note, ProMetic has granted Structured Alpha LP 11,793,380 warrants with an exercise price of $4.70 per common share, a premium of 80 percent to Monday 29th February 2016 closing share price. ProMetic will use the proceeds to advance its PBI-4050 clinical programs, for the development and manufacture of its plasma-derived orphan drugs portfolio, and for general corporate and working capital purposes.

Sareum (LON:SAR 0.374p/£9.05m)*

Sareum Holdings, the specialist cancer drug discovery and development business, announced good progress with its cancer and autoimmune disease research programmes and its half-yearly results for the six months ended 31 December 2015. Operational highlights showed completion of preclinical studies for the CHK1 clinical development candidate, in preparation for two planned clinical trials in cancer patients. Publication of a description of CCT245737, the CHK1 clinical development candidate, was mentioned in the high-impact journal, Oncotarget. Financial highlights showed a loss on ordinary activities (after taxation) of £0.48m (2014: Loss of £0.66m), in line with expectations. Cash at the Company’s bank at period end was £0.33m (2014: £043m) and the Company’s unspent investment in the CHK1 Project was £0.84m (2014: £0.44m). CHK1 Clinical Trials Application (CTA) submissions on 29 January 2016 triggered a £0.2m milestone payment to Sareum.

Westminster Group (LON:WSG 14.20p/£9.15m)  

Westminster Group, the supplier of managed services and technology based security solutions to governments and government agencies, non-governmental organisations (NGO’s) and blue chip commercial organisations worldwide, announced a further development in its Managed Services division. Westminster’s aviation security subsidiary, Westminster Aviation Security Services (WASS), has signed a new Memorandum of Understanding with a Middle East Civil Aviation Authority for the provision of long term (up to 25 years) aviation security services at a significant international airport within the country concerned serving several million passengers annually. In view of the heightened security threat worldwide, together with the strategic importance and forecast growth of the airport in question, the country’s Civil Aviation Authority recognised the need to urgently improve airport security and equally recognised WASS’s experience and expertise in this field. Arrangements are now being made for a team of WASS technical experts to meet with the authorities in order to establish technical and operational requirements prior to final contract negotiations.

WYG (LON:WYG 132.00p/£89.46m)

WYG, the global programme, project management and technical consultancy, announced that it has been awarded a new contract worth up to €5.8m to support the Polish Government’s initiative to help the unemployed. This new contract will be delivered over a series of planned actions, supporting the Silesian Labour Office, in eight districts of this industrial region.  €2.0m is attributable to the first stage of the project, which is scheduled to be delivered over the next 18 months. Under the contract WYG will provide short term training and initial assistance to the unemployed. The estimated budgetary allocation of the Polish Government for the overall programme is €50m in 2016 and this is now reaching the tender stage in regions throughout Poland.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

6th January 2016

FJET Cleared for Take-off, What a catch for FISH

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

AGM Placing, BLU* Convertible Notes, BRY Contract Wins, CGNR* Debt Conversion, FJET Launch, FISH Placing and Acquisition, FITB* Trading Update, HDD Airbus Update, HYD Acquisition, MDZ* Update, MSG* Ambassador, PLI* Revenue Guidance, SAR* CHK1 Clinical Trials, SCLP Paper Published, TMT* Depositphotos Transaction, TPG Participation in CryoHub R&D, TRAK Acquisition and Placing

Applied Graphene Materials (LON:AGM 173.95p/£32.48m)

Applied Graphene Materials, the producer of specialty graphene materials, announced that it has conditionally raised £8.1m before expenses through a placing at 175 pence per share. In addition, in order to provide Qualifying Shareholders with the opportunity to subscribe for New Ordinary Shares, the Company has announced an Open Offer to raise up to approximately £2.0m, on the basis of 1 Open Offer Share for every 15 Existing Ordinary Shares held on the Record Date, at 175 pence each. The proceeds of the placing will be used to scale up the Company’s production facilities to increase manufacturing capacity to six tonnes per annum; fund collaborations and joint development activity with customers, including the development of new intellectual property; fund the Group whilst it pursues production orders; and finance the working capital requirements of the Group for at least twelve months.

Bellus Health (TSX:BLU CAD1.04/CAD49.32m)*

BELLUS Health, a drug development company focused on rare diseases, announced the scheduled issuance of 7,286,828 common shares from treasury to Victoria Square Ventures Inc. (VSVI) in settlement of convertible notes. The convertible notes’ notional amount was approximately $10.9m and terms of the conversion were determined as part of BELLUS Health’s capital reorganisation in 2012. Subsequent to the settlement, VSVI now holds 32.5 percent of the Company’s issued and outstanding common shares and 27.0 percent on a fully diluted basis. The Company now has approximately 54.7m common shares outstanding and 65.7m common shares on a fully diluted basis. Dilution items include approximately 4.7m common shares issuable under the stock option plan and 6.4m common shares issuable upon the exercise by Pharmascience of its right to exchange its 10.4 percent interest in the limited partnership carrying out BELLUS Health’s activities (the Exchange Right).

Brady (LON:BRY 55.00p/£46.48m)

Brady, the leading supplier of trading and risk management solutions for metals, recycling, energy and soft commodities, announced three new contract wins. Two top tier global Japanese-owned trading companies have selected Brady Cloud solutions to support their trading and risk management requirements across base and precious metals, soft commodities and freight, covering the complete trade lifecycle for both derivatives and physical trading activities. Both of these customers will be using the Brady Cloud Service to reduce their total cost of ownership and ensure maximum availability. Additionally, a European energy supply company, focused on delivering clean energy to large industrial and commercial consumers has selected Brady Energy Trading and Risk Management solution to manage its renewable energy trading, position, risk, and back-office operations.

Conroy Gold and Natural Resources (LON:CGNR 30.00p/£1.79m)*

Conroy Gold and Natural Resources, the Irish based resource company exploring and developing gold and other projects in Ireland, announced it has raised £0.37m (€0.5m) before and after expenses, by way of a subscription, by way of a debt capitalisation which relates to recent, unsecured, short term funding, at a price of 32.50 pence sterling per share, being the closing mid-market price on 18 December 2015. The New Ordinary Shares have been subscribed for by Patrick O’Sullivan, an existing shareholder in the Company and Professor Conroy, Chairman of the Company. The proceeds of the Placing will be used for general working capital purposes and for the funding of the Company’s ongoing programme at its Clontibret and Clay Lake gold targets. Following this investment, Mr O’Sullivan’s total holding will be equivalent to 23.1 percent and Prof Richard Conroy’s total holding will be equivalent to 24.4 percent of the enlarged share capital of the Company.

Fastjet (LON:FJET 67.30p/£45.67m)

fastjet, Africa’s low-cost airline, announced that fastjet Tanzania has been given clearance by the Kenyan government to operate flights between Kenya and Tanzania under the Bilateral Air Services Agreement between the two countries, as previously approved by the Tanzanian Government. Two new routes, Dar es Salaam to Nairobi, and Kilimanjaro to Nairobi are on sale from today, with one way fares starting from as low as at $80 and $50 respectively, plus tax. From 11 January 2016, fastjet Tanzania will operate a daily flight between Dar es Salaam and Nairobi and between Kilimanjaro and Nairobi. Flights between Zanzibar and Nairobi and Dar es Salaam and Mombasa are also expected to be added to the network later in 2016.

Fishing Republic (LON:FISH 16.70p/£4.50m)

Fishing Republic, the fishing tackle retailer, announced that it has acquired the business and assets of FishXL Limited, trading as Cotswold Angling, and is opening a new store in Crewe. At the same time, to support this expansion, the Company has raised gross £0.5m at a price of 16p per Placing Share. The acquisition of Cotswold Angling establishes Fishing Republic with a presence in the South of England, with the new store in Crewe complementing the Company’s existing outlets in the North of England. Both moves are part of the Company’s stated strategy to build a significant market presence through acquisition and organic growth. They follow Fishing Republic’s announcement, on 23 November 2015, of its expansion into the West Midlands, with the opening of a store in South Birmingham, and the upgrading of its Hull outlet to new larger premises. Established in 2000 and based near Swindon, Cotswold Angling operates from a 4,100 sq ft site at a light industrial unit and caters for all types of fishing disciplines. In the year to 30 September 2014, Cotswold Angling generated sales of approximately £0.43m and made a marginal operating profit. The total consideration for the acquisition is £0.17m, payable in cash on completion. The co-founder and director of the business, Trevor Gunning, will be joining the senior management team of Fishing Republic as a regional operations manager. The store in Crewe is an 11,000 sq ft site close to the M6, and located next to a fishery. The store offers an extensive display area and Fishing Republic expects to launch the outlet in March 2016.

Fitbug Holdings(LON:FITB 0.939p/£2.60m)*

Fitbug Holdings, the provider of online personal health and wellbeing services, issued a trading update for the financial year ending 31 December 2015. Trading in the second half is expected to show significant increases in the pre tax losses announced at the half year primarily as a result of a challenging retail environment in the U.S. Following her appointment as CEO in August, Anna Gudmundson has taken extensive action to address underlying business performance issues, including senior management changes. The Company continues to attract some very talented people and recently appointed Donald Stewart, who is experienced in delivering and managing rapid public company growth, as its new Chairman. Considerable progress has been made in positioning the Company to capitalise on Kiqplan, its digital health and fitness coaching platform. A new version of Kiqplan was successfully launched at the end of September and the Company has achieved good reviews of the product. The Company is confident that the new Kiqplan platform provides a strong foundation for growth in both the B2C and B2B markets. Looking ahead, Fitbug expects to continue tackling its business performance fundamentals in 2016 and also expects its focus to move away from retail in order to leverage its established B2B network, where the Company has historically centred much of it business activity. The Company has identified prospective opportunities to offer its Kiqplan technology to health insurers and other corporations as a simple and effective digital tool for both customers and employees. As announced on 23 December 2015, endorsing Ms Gudmundson’s actions and supporting the Company’s updated strategy, Fitbug raised a further £0.65m from NW1 Investments just prior to the period end to meet near term working capital requirements. The Company has also entered discussions with Fitbit Inc. regarding the litigation and claims between the two companies and shareholders will be kept informed of developments.

Hardide (LON:HDD 1.38p/£14.18m)

Hardide, the provider of surface coating technology, announced that its Hardide-A coating has met Airbus technical performance requirements as a potential alternative to hard chrome plating and is now available for consideration by design engineers and sub-contractors on some specific Airbus aircraft components. Meeting this technical performance level comes after eight years of Hardide’s development and testing of the coating as a potential alternative to hard chrome plating, which is used extensively on airframe and landing gear components. Hardide-A, a variant of the Company’s tungsten/tungsten carbide coating range, has successfully passed necessary tests and met technical performance requirements defined in the Airbus Process Specification for thick Chemical Vapour Deposition Tungsten Carbide coatings.

Hydro International (LON:HYD 148.40p/£21.05m)

Hydro International, a provider of environmentally sustainable and innovative solutions to water management challenges the world over, announced that it has acquired the intellectual property and technology assets of M2 Renewables Inc. from Sail Capital Partners based in Irvine, California for an initial amount of $1m in cash, plus an additional deferred consideration of ten percent of sales incorporating the acquired intellectual property across the first five years. This additional consideration is capped at $10.0m. The acquisition will be funded from existing cash and debt facilities. M2R, established in 2003, has successfully developed the MicroScreen rotating belt screen filtration technology for applications in municipal and industrial wastewater treatment plants, securing important initial projects with major customers in the United States.

MediaZest (LON:MDZ 0.165p/£1.82m)*

MediaZest, the creative audio-visual company, provided shareholders with an update in respect of ongoing and new business. Since the last update announcement in October 2015, the Group has secured material additional contracts and has completed several significant projects. In particular, the Company recently completed the second Hyundai Rockar dealership at the Westfield Stratford shopping centre, which has now opened. Operating in the same way as their highly successful dealership at Bluewater, the new showroom features five large scale video walls, each of nine screens, and fourteen interactive touchscreens allowing customers to purchase their chosen car. MediaZest were responsible for system specification, build and installation works including in store audio and content management, with ongoing support and maintenance contracts in place. The Group also announced it has begun working with a new client, Specsavers Limited. MediaZest was initially engaged to design, produce and deliver a Smart Store concept for the annual Partners Conference in Birmingham on the 28 November 2015 in collaboration with Specsavers key stakeholders. Following this successful event, the solutions provided have been installed in Head Office. During this quarter they also finished their current works with the Post Office Limited, supplying audiovisual systems for new concept stores. The Company also began working with Kikki.K an Australian/Swedish stationary retailer, on their first two UK stores. Work continues with Adidas (with mandated projects for an additional 2 UK stores and another 3 in mainland Europe), and with Belstaff, HMV, and Kuoni.

Milestone Group (LON:MSG 0.424p/£2.43m)*

Milestone, the provider of digital media and technology solutions, announced that it has appointed Alex Pritchard as a Passion Project Ambassador. Alex is an English professional footballer who currently plays for Tottenham Hotspur FC, signing a four-year deal in August 2015. As a Passion Project Ambassador, Alex will help to promote the initiative, which aims to inspire and empower young people whilst helping to tackle youth unemployment. Alex has also agreed to feature in the next issue of Disorder Magazine, which is due to be released in February 2016.

ProMetic Life Sciences (TSX:PLI CAD3.26/CAD1,894.37m)*

ProMetic Life Sciences announced that its 2015 revenues are to be in line with guidance provided during its Q3 results call. Total full-year revenues are expected to be $24m, consisting of $21m of product sales and $3m of service and milestone revenues. The product sales figure of $21m is up over $10m, or 94 percent, on the 2014 total of $10.8m.

Sareum (LON:SAR 0.190p/£4.60m)*

Sareum, the specialist cancer drug discovery and development business, announced that it has received formal confirmation from its co-development partner, the CRT Pioneer Fund, that Clinical Trial Applications for Phase I clinical trials of CCT245737, the CHK1 Programme clinical development candidate drug, are intended to be submitted to the UK Medicines and Healthcare products Regulatory Agency (MHRA) in January 2016. In accordance with the CHK1 co-investment agreement, Sareum will therefore satisfy its next financial contribution, in respect of its 27.5 percent investment share, of £0.8m by 29 December 2015. As reported in the Company’s Final Results in October 2015, two clinical trials in cancer patients are planned, one with CCT245737 as a single agent and one in combination with standard-of-care chemotherapy. The funds required for the Company’s financial contribution to these trials will be met from existing cash resources.

Scancell Holdings (LON:SCLP 21.33p/£47.69m)

Scancell Holdings, announced the publication, on line, of a full paper in Cancer Research describing the rationale behind the Company’s ModitopeÒ platform and the experimental results that support it. Cancer Research is the official journal of the American Association for Cancer Research and is one of the world’s foremost peer-reviewed journals in the field of oncology. The lead product from the Moditope® platform, Modi-1, is progressing through pre-clinical development with first in man studies targeted in triple negative breast cancer and ovarian cancer patients.

TMT Investments(LON:TMT 1.78p/£49.25m)*

TMT Investments, which invests in high-growth internet-based companies across a variety of sectors, confirms that, further to the announcements made by the Company on 30 November 2015 and 20 December 2015, completion by its portfolio company Depositphotos, Inc. of a $5m equity financing round led by the venture capital arm of the European Bank for Reconstruction and Development is expected within the next two weeks.

TP Group (LON:TPG 2.50p/£11.62m)

TP Group, the specialist technology, engineering and managed solutions group focused on the aerospace & defence and energy & process industry sectors, announced it has signed a consortium agreement to participate in CryoHub, a research and development project funded under Horizon 2020, the EU Framework Programme for Research and Innovation. The consortium is a pan-European team, led by London South Bank University’s School of The Built Environment and Architecture, one of the leading urban engineering and sustainability research centres in the UK. The team will investigate the potential of a promising new technology – cryogenic energy storage (CES) – to solve the problem of how to store excess renewable energy. The intention is to use cheap, off-peak electricity to convert air into a liquid, which can then be stored over a long period of time in a storage vessel. Turning the liquid back to gas, by removing it from the store and applying heat to it, will produce a huge increase in volume and pressure – enough to power a turbine to generate electricity which can then be supplied back to the grid. TPG’s initial involvement in the project over the 2016/17 financial years is estimated to be circa €0.5m for the integration of its highly efficient turboexpander technology. The technology is already proven in other commercial systems, and this project will see the Group work to tailor the turboexpander specifically to meet the needs of the CES architecture. The work will be carried out over the next two years with the majority in 2016. This agreement marks further progress for TPG as it is the first participation in a publicly funded research consortium in the exciting renewable energy sector. It places TPG’s Design and Technology team at the forefront of renewable energy application development, working in a leading peer group alongside global industrial companies, technology specialists and academic institutions. The TPG directors believe that the resulting systems and applications will make a major contribution to consistent energy supply, providing safeguards against periods of intermittent supply and helping to stabilise the energy grid. This should open up significant new market opportunities for TPG and the other consortium partners. In addition to the primary development, it is also anticipated that TPG’s Engineering facility in Greater Manchester may be positioned to provide additional thermal engineering and fabrication support to the programme going forward.

Trakm8 Holdings (LON:TRAK 356.40p/£120.30m)

Trakm8 Holdings, the telematics and data provider to the global market place, announced that it has conditionally agreed to acquire the entire issued share capital of Route Monkey Holdings Limited, a provider of technology solutions that optimise fleet routing, for a consideration of up to £9.1m, including maximum deferred consideration of £2.0m. The Acquisition will be funded through a combination of a drawdown of new Trakm8 debt facilities, a placing at a price of 333 pence per Placing Share to raise £6m and 184,441 new Ordinary Shares being issued as part of the consideration to the senior management shareholders of Route Monkey. The Placing adds new blue-chip institutions to the share register. The Acquisition is expected to complete on admission of the Placing Shares to trading on AIM. The Acquisition is in line with Trakm8’s strategy of augmenting its organic growth with selective acquisitions that expand its telematics offering to both insurance and fleet customers. The Acquisition is expected to be immediately earnings enhancing.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

8th December 2015

Diggin’ 7dig
No Barrier to DGB in AsiaPac
MediaZest rocking on

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

7DIG Contract Win, ABZA Placing, AVG Contract Win, BLU* Results, COS Appointment, DEMG New Accounts, DGB Contract Award, EVG Half Yearly Report FITB* Launch, HDD Preliminary Results, HVO Placing, IMO Partnership, JPR Trading Update, MDZ* Half-Yearly Report, OPTI* Placing, PLI* Agreement, REAT New Subsidiaries, REDT Strategic Contract, RED First Unit Connected

7digital (LON:7DIG 7.50p/£8.12m)

7digital, the digital music and radio services company, announced that it is powering two mobile music services for Mariposa Holdings Group, Inc. in Brazil. These are now live with two of the largest telecommunications companies in South America: Oi and Algar Telecom. The provision of this kind of mobile music service is key to the company’s growth, and these launches also mark a significant expansion in 7digital’s South American business. As part of a contract win first announced in June, Mariposa licenses 7digital’s streaming technology and catalogue management platform to power new mobile music services. Launching its product in October 2015, Brazil’s Algar Telecom was the first mobile network to offer its customers Mariposa’s music subscription and radio style services. Since 24th November, Oi, the largest telecommunications company in South America, with over 60 million subscribers in Brazil, also offers a music service to its high value customers as part of a mobile carrier data offer. Services from both Algar Telecom and Oi are created and managed by Mariposa and powered by 7digital’s platform. 7digital also announced that it has signed an agreement with digital multimedia streaming platform Playster, to expand their music streaming service into 15 additional territories. Playster is the world’s first all-inclusive online entertainment service, bringing together music, movies, books and games into a single subscription.

Abzena (LON:ABZA 63.00p/£61.90m)

Abzena, a life sciences group providing services and technologies enabling the development and manufacture of biopharmaceutical products, has conditionally raised £20m by way of a placing at 60p each with certain existing and new shareholders, and has agreed to acquire The Chemistry Research Solution LLC (TCRS), subject to certain closing conditions including completion of the placing. The placing price represents a 7.7 percent discount to the closing mid-market price of an existing ordinary share on 23 November 2015, being the last business day prior to this announcement. TCRS is a specialist contract chemistry and bioconjugation company based near Philadelphia, Pennsylvania, USA, with expertise in producing and analysing antibody drug conjugates. Abzena will pay $15m (£10m) to acquire the entire ownership interests in TCRS. The consideration will be paid as $8.8m in cash, the issue of 3,609,978 Ordinary Shares and $0.9m in restricted stock units over 901,697 Ordinary Shares and assumed long term debt of $1.5m.

Avingtrans (LON:AVG 120.05p/£33.42m)

Avingtrans, which designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors announced that Maloney Metalcraft, part of Avingtrans plc’s Energy and Medical Division, has secured a $2m contract with JGC Gulf International Co. Ltd. to supply gas treatment packages. The Saudi Arabian Oil Company (Saudi Aramco) is developing infrastructure for processing shale formation gas (unconventional gas) from the Jalamid field in the Al-Jouf and Northern Border Regions in the northwest part of Saudi Arabia. The first phase of this project (System “A”) will involve gathering gas from the ST-53A area of these fields, routing it to an engineered surface facility location, then transporting it about 30 km via pipeline to a customer. The contract with JGC Gulf International, which is contracted by Saudi Aramco, covers the initial four gas treatment separation & filtration packages in System A. System B of the Project will be EPC tendered in Q2 2016, requiring four times the number of packages as System A. As well as bidding for System B, Maloney Metalcraft also anticipates the opportunity to pursue additional gas processing equipment work.

BELLUS Health (TSX:BLU CAD0.910/CAD43.16m)*

BELLUS Health, a drug development company focused on rare diseases, reported its financial and operating results for the third quarter ended September 30, 2015. Approximately 95 percent of the required events have occurred in the Phase III Confirmatory Study for KIACTA™. The KIACTA™ Phase III Confirmatory Study is expected to be completed by the first quarter of 2016, with top-line data expected to be available in the middle of 2016. The company presented data from clinical and pre-clinical studies evaluating Shigamab™ in the treatment of sHUS at the International Symposium on Shiga toxin (verocytotoxin) Producing Escherichia Coli (VTEC) 2015 Conference in Boston. The company concluded the quarter with a cash position of $10.1m, which should enable the Company to finance its operations beyond the data readout for the KIACTA™ Phase III Confirmatory Study. Revenues amounted to $0.59m for the three-month period ended September 30, 2015, compared to $0.42m for the corresponding period the previous year. The increase is primarily attributable to higher revenue recognised for accounting purposes in 2015 in relation to the service agreement with Auven Therapeutics for KIACTA™. R&D expenses amounted to $0.34m for the three-month period ended September 30, 2015, compared to $0.41m for the corresponding period the previous year. The decrease is primarily attributable to lower expenses incurred in relation to the development of Shigamab™. As at September 30, 2015, the Company had available cash, cash equivalents and short-term investments totalling $10.1m, compared to $12.31m as at December 31, 2014. Based on management’s estimate, the current cash position should enable the Company to finance its operations beyond the data readout for the KIACTA™ Phase III Confirmatory Study, expected in 2016.

Collagen Solutions (LON:COS 9.08p/£15.78m)

The Board of Collagen Solutions, the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announced the appointment of Jamal Rushdy as Chief Business Officer with immediate effect. Mr Rushdy has over 20 years’ experience in the medical device arena, specifically within two mid-size high growth public companies and three successful start-ups. He has a unique track record of building businesses with successful exits and transforming organisations through integration and performance improvement, adding value through business development and functional leadership. Mr Rushdy has been employed at Tornier Inc, a Minneapolis extremities and biologics company, since 2007, most recently as Vice President of US Sales Operations. During his tenure he also served as the Vice President of the company’s Global Sports Medicine, Biologics, and Business Development group where he led multiple acquisitions and corporate partnerships, including several focused on biologic technologies. Previous roles include Vice President of Operations & Business Development at Nexa Orthopedics in San Diego where he led his division through a high-growth period driven by a significant expansion in the sales force and rapid product introductions leading to the successful acquisition of Nexa by Tornier.

Deltex Medical Group (LON:DEMG 4.00p/£9.06m)

Deltex Medical Group, the global leader in oesophageal Doppler monitoring, announced that it has added two further new accounts to its platform programme in the USA. The first new account is a major teaching hospital in the mid-west region of the USA and is the second platform programme account in the Great Lakes sales territory which the Company established in the first quarter of 2015. The hospital has indicated that it intends to purchase at least 40 probes per month during its initial implementation phase, which the Company expects to increase as the technology is more widely adopted. Approximately 20 probes per month are scheduled to be used in the hospital’s breast reconstruction surgical protocols to be launched in January 2016. The second new account is a large hospital in Washington State. It is the fourth platform programme account in the North-West sales territory, and the fourth platform programme account from the 26 strong hospital system with which the Company implemented a system-wide procurement framework agreement in January 2015. The agreement requires each hospital that participates to commit to purchase at least 30 adult surgical probes a month. The three existing accounts are all on track to get to 100 or more probes per month: they are each now regularly purchasing 50 to 65 probes per month having started their implementation programmes at 30 to 35 probes a month. This fourth new account’s first order was for 50 probes. The new account contains a full service children’s hospital with a large regional catchment area.

Digital Barriers (LON:DGB 50.50p/£40.13m)

The Board of Digital Barriers, the specialist provider of advanced surveillance technologies to the security and defence sectors, announced that it has secured a contract valued at £1m to supply additional land and sea-based TVI and ISP surveillance solutions to a major Asia Pacific maritime security agency. This follows an initial contract for TVI solutions received from the same customer six weeks ago, valued at approximately £0.13m. The contract is expected to be fully recognised this financial year and to lead to further follow-on awards. The Group’s TVI surveillance technology offers secure distribution of real-time video from anywhere to anywhere, featuring end-to-end security, real world resilience and network optimisation that can stream usable live video using 60 percent less bandwidth than standard technologies. This exceptionally efficient use of available bandwidth enables TVI to deliver significant capability benefits and material cost savings over competing technologies. TVI has already been sold into more than thirty countries, and counts some of the most prominent defence and security agencies in the world as its customers, as well as an increasing number of commercial organisations. The Group’s ISP (Integrated Surveillance Platform) combines TVI with other class-leading sensors, including the Group’s RDC unattended ground sensor, to provide real-time video surveillance and intrusion alerts for remote and inaccessible locations. ISP enables live video streaming and intrusion data to be shared at local, regional and national levels across multiple agencies, supporting a coordinated, timely response to identified threats.

Evgen Pharma (LON:EVG 26.00p/£19.64m)

Evgen Pharma, the clinical stage drug development company focused on the treatment of cancer and neurological conditions, announced its unaudited interim results for the six months ended 30 September 2015. Highlights in the year to date included a £7m placing and admission to AIM on 21 October 2015. The company reported positive data on SFX-01 as adjunct to hormonal therapy in patient-derived xenografts using cancer tissues from early and late stage breast cancer patients (data presented at the American Association of Cancer Research, April 2015). Dr Alan Barge, former oncology head at AstraZeneca, appointed as a Non-executive Director in October 2015. The company also announced the acquisition of novel compounds in November 2015 via an exclusive worldwide licence from the Spanish National Research Council (CSIC) and the University of Seville, Spain. Financial highlights showed a net loss for the period was £1.2m (30 September 2014: net loss £1.1m) with a cash position at 30 September 2015 of £1.8m (30 September 2014: £0.2m), reflecting a £2.0m (gross) pre-IPO fundraising in August 2015. The IPO placing in October further strengthened the balance sheet and the company is fully funded to complete two Phase II studies of SFX-01 and to support further preclinical work.

Fitbug Holdings (LON:FITB 0.94p/£3.41m)*

Fitbug Holdings, the provider of online personal health and wellbeing services, announced the launch of Version 2 of the Kiqplan App, a new version of its innovative digital health and fitness training programme, Kiqplan. The app is highly functional, effective and includes an extensive new feature set. Covering personalised activity, nutrition, workouts, advice and motivation, Kiqplan integrates with all leading wearable devices, including Fitbug, Jawbone, Garmin and more, as well as smartphones and smartwatches including Samsung and Apple devices, plus other third party apps. Kiqplan helps users step by step through a personalised plan, to eat healthier, sleep better, exercise smarter, go further and ultimately achieve their health and fitness goals. Users who purchase the 12-week training programmes will be provided with weekly targets, health and motivational tips, workout videos, progress reports and simple, healthy recipes with accompanying calorie targets. Fitbug believe the Kiqplan app is a forerunner in the digital health sector and its launch is an important milestone achievement for Fitbug. Its comprehensive health and fitness programme gives context and meaning to the data generated by all compatible activity trackers. This ideally positions the product in the exponentially growing digital health and fitness market. To support this, the Company is building out its marketing presence; it has already added highly experienced digital personnel and is looking to further strengthen its marketing team to deliver compelling campaigns to support its products.

Hardide (LON:HDD 1.01p/£12.61m)

Hardide, the developer and provider of advanced surface coating technology, announced its preliminary results for the year ended 30 September 2015. Financial highlights showed that after a record H1, overall performance affected by downturn in oil & gas exploration, as expected. Revenue was £3m (2014: £3.03m), with gross profit of £1.81m (2014: £2.09m) leading to a group operating loss of £0.22m (2014: profit of £0.18m) and a loss before interest, tax, depreciation and amortisation of £0.33m (2014: profit of £0.12m). Cash at bank at 30 September 2015 was £2.33m (30 Sept 2014: £3.47m). Business/ Operational highlights showed key investment projects in UK and US progressed to plan – positioning the business for growth: the UK facility was upgraded – for greater efficiency and increased capacity. Installation of third large reactor and new facility in Virginia substantially completed which will be production-ready this month. Growing sales to North America and continental Europe, which were up 117 percent and 64 percent respectively, with encouraging progress with customer trials across a range of industries, including aerospace. The board remains cautious about near term outlook given oil & gas sector headwinds. However longer term prospects remain good, supported by a diversification strategy.

hVIVO (LON:HVO 235.00p/£165.69m)

hVIVO, the pioneer of human challenge models of disease, announced that it has raised, subject to certain conditions, £20.5m by way of a placing at a price of 225p per ordinary share. The placing price is at a discount of 11.6 percent to the closing middle market price of 254.50 pence per ordinary share on 25 November 2015, the latest date prior to this Announcement. The New Ordinary Shares will represent 11.7 percent of the company’s enlarged issued ordinary share capital immediately following completion of the placing. The net proceeds of the placing are expected to be approximately £20m and will be principally used by the Company to progress PrEP-001 to Phase IIb, commence the stratification of asthma and advance the flu pathomics outputs into product candidates.

IMImobile (LON:IMO 151.00p/£90.56m)

IMImobile, a leading software and services provider of mobile customer engagement solutions, announced that it has partnered with Bharti Airtel Africa to deliver its mobile billing solution Tap2Bill for merchants and content providers across Africa. Airtel is a leading telecommunications service provider, with operations in 17 countries across Africa. The new Airtel Tap2Bill service will enable content providers and merchants to utilise Airtel’s billing infrastructure to charge and bill their customers. The service will be available via a secure merchant portal, that will help content providers and merchants grow their business across Africa, without the need to invest in costly billing and payment capabilities. Africa is seen as the fastest growing market for mobile commerce in the world and as demand for new services grows as does the need for smarter solutions and engagement strategies.

Johnston Press (LON:JPR 37.42p/£41.24m)

Johnston Press, one of the leading local media groups in the UK, announced its trading update for the 17 weeks to 31 October 2015. The Board expects underlying profit and net debt for the full year to be in line with expectations. The company has retained their focus on cost savings, delivering strong cash flows and debt reduction. Underlying total revenues for the 17 week period to 31 October fell 8.8 percent year in the year, having fallen 7.6 percent in the second quarter. Underlying digital revenues were up 8.4 percent, whilst publishing revenues fell 10.8 percent, with print advertising revenues down 14.7 percent. 1XL, the digital advertising exchange partnership, launched in late 2014, helped the National digital advertising category grow by 106.5 percent in the period, and has enabled them to achieve overall growth in national combined print and online display revenues of 3. 8 percent for the period. Former classified categories of Employment and Property declined 22.4 percent and 20.8 percent respectively in the period impacting heavily on both overall print and digital revenues. Digital audience growth remains a priority and the number of unique users has grown on average by 22 percent to 21.5m per month during the period. Circulation revenues were down 7.2 percent in the period, having declined 6.5 percent in the second quarter. The company has continued to focus on offsetting revenue decline with cost reduction, and has made good progress in controlling production, editorial and advertising costs in line with strategic initiatives: ‘News room of the future’ and ‘Sales force of the future’.

MediaZest (LON:MDZ 0.153p/£1.61m)*

MediaZest, the creative audio-visual company, reported unaudited results for the six months ended 30 September 2015. Financial highlights showed revenue for the period was £1.61m up 1.6 percent (2014: £1.58m), leading to gross profit of £0.62m up 17.2 percent (2014: £0.53m) and EBITDA was a profit of £8,000 (2014: loss of £0.18m). After deducting interest of £49,000 (2014: £26,000), administrative expenses before depreciation of £0.61m (2014: £0.71m), depreciation of £22,000 (2014: £27,000) and amortisation of £12,000 (2014: £2,000), the Group made a loss for the period after taxation of £60,000, reduced by 70.4 percent (2014: £0.20m). An operational review showed that the group has made meaningful progress in the last six months which has generated a positive EBITDA for the period. This is the first time that the Group has been in a position to report this. Turnover has increased by 1.6 percent against the comparable period in the prior year; however a significant improvement has been achieved in the gross profit margin which has increased from 33.4 percent in the prior period to 38.5 percent. This increase is as a result of the Board’s ongoing strategy of focussing on providing a full service offering to its client base. As well as equipment sales and installation fees, new business efforts are currently targeted towards providing ongoing managed services that include maintenance, content management and data analytics. During the six month period to 30 September 2015, revenue has continued to be generated across the retail, corporate and education sectors. The Retail sector (including Automotive Retail) generated over £900,000 through multiple store deployments across the UK and Europe. This included work for prestigious clients such as Hyundai, Adidas, The Post Office, Belstaff, Ted Baker, Diesel, Chivas Regal, TM Lewin and John Lewis Partnership. The Corporate sector generated almost £450,000 of revenue with a large number of clients including Pfizer, Churchill Retirement Living and Virgin Active. Education provided a smaller proportion of income, generating approximately £250,000 of revenue. Furthermore, the Group continued to grow its relationship with Hyundai working on a number of projects during the half year in both their Rockar partnership and other Hyundai dealerships. Further mandated business is scheduled for completion in the second half of this financial year. The work completed by MediaZest on the much acclaimed Hyundai Rockar Bluewater Digital Showroom was recognised with two high profile industry awards presented by Retail Week in May 2015 and POPAI in September 2015.

OptiBiotix Health (LON:OPTI 77.70p/£56.66m)*

OptiBiotix Health, a Life Sciences business developing products to tackle obesity, high cholesterol and diabetes announced that it has raised £1.5m, at a price of 75 pence per share. The Company intends to use the proceeds of the Placing to: enhance its in-house product development capability in the microbiome space by the recruitment of four new development/ formulation scientists. This is expected to support opportunities for partner joint development; extend its OptiScreen® technology platforms into other application areas, such as diabetes and bone health. This is expected to create new opportunities with existing and new partners; create a new ‘SweetBiotix™’ platform with a focus on developing ‘sweet healthy sugars’. This accelerates the progress made with the companies OptiBiotix® platform, and extends OptiBiotix’s technology platforms into new application areas, in particular skin health. This creates new product opportunities in large global markets including skincare ($121bn), Health Care Acquired Infections ($82bn) and wound care ($18.3bn). The Company believes these developments provide significant growth opportunities to ensure OptiBiotix remains at the leading edge of an emerging market forecast to become one of the world’s fastest growth areas. OptiBiotix has made good progress since listing and now looks to build on this solid foundation to build a microbiome business with sustainable and significant value for shareholders. Following the Placing the Company will increase its net funds from £2.2m to circa £3.7m.

ProMetic Life Sciences (TSX:PLI CAD3.21/CAD1,865.32m)*

ProMetic Life Sciences reported revenues of $5.7m for the third quarter ended 30 September 2015 compared to $2.3m for the third quarter in 2014, with year-to-date product sales ahead after the first nine months of 2015 at $9.2m compared to $7.3m for the first nine months of 2014. During the third quarter of 2015, ProMetic received an orphan drug designation status for its human plasma derived plasminogen drug by the European Commission for the treatment of plasminogen deficiency; received confirmation that its plasminogen drug was safe and well tolerated in plasminogen-deficient patients and proceeded with the administration of a higher dose; completed the acquisition of Emergent BioSolutions’ (Emergent) plasma collection centre located in Winnipeg, Canada which was announced in May. Emergent’s plasma collection centre is an FDA and Health Canada licensed plasma collection facility; and, received confirmation that its PBI-4050 was safe and well tolerated in the first 12 metabolic syndrome with associated type 2 diabetes patients and proceeded with the enrolment of an additional 24 patients. The Corporation finished the third quarter ended September 30, 2015 with a strong cash position of $42.5m. The company also announced that it has entered into a strategic partnership with ProThera Biologics Inc. for the development and commercialisation of human plasma-derived Inter-alpha Inhibitor Proteins. The agreements provide ProMetic with global, exclusive intellectual property rights to commercialise products for two clinical indications and both companies have strategic interest in the other’s IAIP-related therapeutic areas through a royalty- bearing cross-license agreement.

REACT Group (LON:REAT 1.52p/£2.94m)

REACT Group, the specialist provider of rapid response deep cleaning and emergency decontamination services, announced the expansion of its service offerings into Licensed Asbestos Removal and Occupational Hygiene Services. REACT has acquired certain capital equipment, for a small sum, from two separate businesses which have previously operated in these fields, and recruited a specialist in each area. REACT has created two new wholly-owned subsidiaries: REACT Environmental Services Ltd and REACT Occupational Hygiene Services Ltd, which will be able to offer a wider and complementary range of managed services to its growing client portfolio. Since REACT was admitted to AIM in August of this year, the Board has looked at a number of small add-on acquisitions to broaden the product offering and we are delighted to have been able to acquire the assets of these two former businesses, which fit perfectly with the outlined growth strategy. All of the subsidiaries’ administration will be run out of REACT’s Swadlincote offices, and the Board believes that over a short period of time it will see a positive contribution from both companies.

Red24 (LON:REDT 18.20p/£8.94m)

red24, the crisis assistance company, announced that the leading international business underwriter, Hiscox London Market, has appointed red24 to provide strategic support for its Product Contamination Insurance clients with immediate effect. Hiscox London Market, part of the Hiscox international specialist insurance group, has engaged red24 to offer its crisis support services to aid their preparation and management of product safety risks. With its Food Safety and Product Recall business unit, red24 will help Hiscox London Market clients prepare for risks relating to their products as well as respond to immediate crisis situations arising from product recalls and/or contamination. Support includes access to specialist technical, regulatory and public relations advisors, product testing facilities and crisis communications facilities.

redT energy (LON:RED 8.19p/£34.66m)

redT, the energy storage technology company, announced that its first manufactured unit is approved for connection to the UK grid and that units will receive the CE mark, enabling EU wide distribution. The 40kWh unit delivered to redT’s Wokingham development centre is now grid tied, charging from and discharging into the distribution network. This marks an important step for redT moving from demonstration of prototype units to installation of independently manufactured products ready for customer use. This redT storage system has been coupled with solar as a grid connected installation. The system allows the redT development centre to match consumption of power generated from the solar panels installed on its rooftop with its demand, with the aim of saving on electricity purchase costs. Excess power from the panels and the redT system can be fed into the local electricity distribution network operated by Scottish and Southern Energy (SSE) so as to maximise sales revenues. SSE has approved connection of the solar and redT energy storage system to the local network. redT is currently executing a strategic programme to deliver market seeding products across a series of applications including utility, grid-tied wind, grid-tied solar, off-grid diesel generator and telecommunication towers. Now the first unit has been deployed, the Board expects to begin shipping units to other customers.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

4th November 2015

Gear4Music hits the right note,
Mobile does matter one iota for Sanderson
NWF bolts on Staffordshire Fuels

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.


COS Agreement, G4M Half Yearly Report, GFIN Placing, LPA Trading Update, NWF Acquisitions, OPTI* New Patent, PIM Preliminary Results, NIPT Appointment, PLI* Appointment and Application, SND Trading Update, SAR Final Results, STOB Interim Results, TRAK Agreement, VENN Project

Collagen Solutions (LON:COS 9.75p/£17.01m)

Collagen Solutions, the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announced that its subsidiary Collagen Solutions Inc. has signed a supply agreement with Turkish medical device company Yücel Medikal Ltd. This supply agreement covers the provision of collagen materials and support services for use in Yucel’s product Lyocoll which is currently on sale in Turkey. Lyocoll is a local haemostatic used in all types of surgery to control capillary and venous bleeding as well as oozing where the conventional methods are impractical and ineffective.

Gear4music (LON:G4M 146.20p/£29.23m)

Gear4music, the largest UK based online retailer of musical instruments and music equipment, announced its unaudited financial results for the six months ended 31 August 2015. Financial highlights showed revenue had increased by 43 percent to £12.49m (2014:£8.77m), leading to gross profit increasing by 42 percent to £3.31m (2104:£2.33m) and adjusted EBITDA of £0.22m (2014:-£0.25m). Operational highlights showed the Group completed its IPO in June 2015 raising £10m of gross proceeds, with investment in platform development and stock – more than 1,900 additional SKUs (+7 percent). Continued strong revenue growth driven by impressive website visitor traffic and improved conversion rates has seen UK revenue of £9.6m (+38 percent), European revenue £2.9m (+62 percent), with active customers increasing by 34.3 percent.

Gfinity (LON:GFIN 21.50p/£19.53m)

Gfinity, a leading eSports business, announced its intention to conduct a placing of new ordinary shares in the Company, at a price of not less than 19 pence per share to raise £1m. The placing of the new ordinary shares will be conducted by way of an accelerated book build process. The net proceeds of the placing, together with existing funds are expected to be applied as follows: to significantly enrich the features and functionality on Gfinity TV which the Directors believe will improve the service provided by existing parties such as Twitch and YouTube. This is expected to increase engagement with the Gfinity audience; development of a Gfinity mobile application to enhance the viewing experience for those on mobile and tablet devices; providing the funds to stage and broadcast the 2016 Gfinity Championship series which is expected to build on the success of the 2015 series; and enhancing Gfinity’s sales and marketing capability.

LPA Group (LON:LPA 86.10p/£7.86m)

LPA Group, the UK based designer, manufacturer and provider of connection, LED-based lighting and electro mechanical systems to the Transport Industry, provided the following trading update for the financial year ended 30th September 2015. The factory load, particularly in the LED-based lighting activity, has significantly improved, delivering a much stronger performance in the second half and the previously reported problems with the integration of the fabrication capability into the electro-mechanical facility have been largely overcome. Order entry has been very strong throughout the year and totalled a record £26.8m for the year as a whole. The order book at the end of the year totalled more than £18m, which is also a record. This does not include an additional approximate £7.5m of project work for which LPA has been selected, but for which the delivery programme is insufficiently defined for the orders to be entered at this stage. The additional project work above includes the selection of LPA by Hitachi Rail Europe to supply connection systems and LED-based interior lighting for Hitachi’s Abellio Scot Rail project, comprising 254 rail vehicles. Preliminary orders worth £0.3m have been received and the project is expected to be worth approximately £2.8m in total, with sales commencing in 2016.

NWF Group (LON:167.50p/£80.07m)

NWF Group, the specialist agricultural and distribution business, announced the acquisition of Staffordshire Fuels Limited, a 32 million litres per year fuel distribution business operating in Staffordshire and the West Midlands. This bolt-on acquisition will increase NWF Fuel’s annual volume by 8 percent and will be earnings enhancing in the first full year. Staffordshire Fuels was established in 1996, operates a modern fleet of seven tankers and is an approved supplier of Phillips 66 fuel, branded as Jet, based near Stone in Staffordshire. Staffordshire Fuels will continue to operate as a standalone fuel depot in line with the Group’s multi-brand strategy in fuels, with finance and administration being consolidated into existing operations. The acquisition was funded from the Group’s existing bank facilities.

OptiBiotix Health (LON:OPTI 61.10p/£43.56m*

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes, announced the filing of two new patents covering its cholesterol reducing product. This increases the number of patents from nine to eleven. The new patents reflect: the success of its human studies designed to establish safety and efficacy on its capsular food supplement to reduce cholesterol, the success of manufacturing studies designed to identify maximum production yields and volumes on its cholesterol reducing strain and the identification of additional health benefits (hypertension reduction) shown by its cholesterol reducing strain. The Company believes that filing these patents adds a further layer of protection to its intellectual property portfolio, creates valuable assets, and increases the number of product opportunities.

Plant Impact (LON:PIM 60.90m/£48.78m)

Plant Impact leads research and development in crop enhancement to create products that growers can rely on to improve the yield and quality of their crops. The company announced its audited preliminary results for the year ended 31 July 2015. Financial highlights showed turnover increased substantially to £4.5m in 2015 (2014: £2.5m), leading to gross profit increasing to £3.5m in 2015 (2014: £1.8m) allowing for a gross margin of 79 percent. Cash at 31 July 2015 was £7.6m (2014: £0.5m); and successful fundraising attracted £6.2m of new investment via a share placement, the company also reported full year profit after tax of £0.1m (2014: loss of £0.7m). Operational highlights showed the expansion of Veritas® sales to all soy-growing regions in Brazil, with soybean product pipeline agreement with Bayer CropScience established leading to £2.0m cash received. The launch of an £11m, multi-year investment programme to develop and launch new products for soy and wheat was also announced.

Premaitha Health (LON:NIPT 16.67p/£37.76m)

Premaitha Health, developer of the IONA® test, the first CE-marked non-invasive prenatal screening test (NIPT) confirms that Chief Medical Officer, Dr William Denman, will join the Board of Premaitha as an Executive Director. Dr Denman has been working with Premaitha for over four years. This appointment will further strengthen the Board and is a continued part of the Company’s commercialisation strategy. Dr Denman has significant experience in the clinical aspects of device and diagnostic development having specialised in paediatric anaesthesia and medical device development at Massachusetts General Hospital. Previously, he was CMO with GE Healthcare with primary responsibility for all matters of patient safety in this multi-billion dollar business. He has also been responsible for strategic direction of medical affairs, clinical affairs and healthcare economics and outcomes across Covidien plc’s medical device business. Dr Denman studied medicine at the University of Aberdeen.

ProMetic Life Sciences (TSX:PLI 2.24p/£1,301.47m)*

ProMetic Life Sciences announced the appointment of Mr. Gregory Weaver, as its Chief Financial Officer. This announcement follows the promotion of Mr. Bruce Pritchard to the position of Chief Operating Officer, announced earlier in August 2014. Mr. Pritchard had, in the interim, continued to act as CFO for ProMetic. Mr. Weaver is a senior finance professional with extensive and relevant biopharmaceutical sector experience, both as CFO and Board Director, of NASDAQ-listed and private companies, in the fields of drug development, medical devices, and drug delivery, with a focus on growth from start-up through IPO, as well as product commercialisation and exit strategies. His specialties include: executive financial leadership, investor relations, financing transactions, accounting and financial reporting and M&A. The company also announced that the clinical trial application for its anti-fibrotic lead drug candidate PBI-4050 in patients suffering from a condition associated with type 2 diabetes and severe multi-organ fibrosis has been cleared by the Medicines and Healthcare Products Regulatory Agency in the United Kingdom. PBI-4050 is currently in a phase II clinical trial in Canada in patients with metabolic syndrome and associated type 2 diabetes. Aside from having already demonstrated safety and tolerability of PBI-4050 in these patients, the Canadian study was also designed to detect early signs of improvement in their metabolic status and to demonstrate that the pharmacological effects observed in preclinical models translate to humans. The Corporation expects to provide preliminary results on the effect of PBI-4050 on metabolic disorders in these patients by year-end.

Sanderson Group (LON:SND 62.50p/£34.40m)

The software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, issued a trading update ahead of its results due 1st December. Trading in line with market expectations and will show group revenue growing to over £19.0m (2014: £16.4m) and adjusted operating profit growing to over £3.3m (2014: £2.8m). One iota, the Group’s mobile commerce business focused on delivering cloud-based solutions accessed via mobile, tablet and in-store devices, achieved revenue growth of over 75 percent in the year. The group expects that it will continue to achieve significant growth in this rapidly developing digital retail market, as retailers seek to adopt technology in order to transform the shopping experience for their connected customers, as well as, to boost their revenues. Sanderson has maintained a strong balance sheet and has a robust business model built upon long-term relationships with customers which generate strong recurring revenues, currently representing over 52 percent of total revenue. Looking ahead to FY2016 the company is confident of delivering results ‘at least’ in line with market expectations. The shares are trading close to their six month low.

Sareum Holdings (LON:SAR 0.238p/£6.02m)*

Sareum Holdings, the specialist cancer drug discovery and development business, announced its final results for the year ended 30 June 2015. Operational highlights showed final preparations to submit CHK1 candidate for two concurrent Phase 1 clinical trials to assess different administration strategies: one as a single agent and the other in combination with chemotherapy. CHK1 clinical trial applications expected to be submitted in Q1 2016 with trials to commence, subject to approval, shortly thereafter. Preclinical development of Aurora+FLT3 inhibitor progressing to plan, with toxicology and additional efficacy studies ongoing. TYK2 inhibitor lead molecule demonstrates striking decrease in psoriasis pathology in a disease model and encouraging results in a rheumatoid arthritis model. Financial highlights showed net assets at period end were £1.86m (2014: £1.72m) of which £1.48m comprised of cash at bank. Loss on ordinary activities (after tax credit) of £1,26m (2014: loss of £0.76m), an improvement on expectations, reflected a re-phasing of commitments to the CHK1 programme. The company also announced the successful placing in June 2015 to raise £1.44m (before expenses) to satisfy ongoing commitments to CHK1 co-development payments and to provide additional working capital.

Stobart Group (LON:STOB 112.00p/£368.94m)

Stobart Group Limited, the support services and infrastructure group, announced its interim results for the six months to 31 August 2015. Operational highlights showed the company was on track with current work and secured future contracts, to exceed the target of supplying 2m tonnes of biomass fuel per annum by 2018. London Southend Airport was voted best airport in Britain by Which? for the third consecutive year and aviation industry specialists, Glyn Jones and Jon Horne, were appointed CEO and COO respectively of Stobart Aviation. The company also disposed of the Worcester property generating net proceeds of £6.2m. Financial highlights showed revenue from continuing operations was unchanged at £57.6m (2014: £57.6m), leading to an underlying EBITDA up 3.4 percent to £9.0m (2014: £8.7m). Cash generated from continuing operations increased to £2.3m (2014: £0.6m outflow) and net debt of £51.9m comprising vehicle financing of £29.7m and other debt of £22.2m, giving gearing to equity of 13.2 percent.

Trakm8 Holding (LON:TRAK 247.56p/£75.08m)

Trakm8 Holdings, the telematics and data supplier to global markets, announced it has reached agreement to supply a major USA based data company with the T10 BLE (Bluetooth™ Low Energy) device. The Trakm8 T10 BLE communicates with mobile phones via Bluetooth relaying real-time journey data to the registered device. This new client is expected to purchase over 25,000 devices during the first two years of the contract agreement.

Venn Life Sciences Holdings (LON:VENN 22.15p/£13.78m)*

Venn Life Sciences, a growing Clinical Research Organisation providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced the signing of a project worth in excess of €1m with a leading French Biotech company. The Phase I-II project is centred on acute T-cell leukaemia (ATL), and will cover multiple regions, including France (and French administered overseas territories), the UK and the US. This project will run for 33 months and follows on from a previous successful trial with the same company.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

21st October 2015

A* for AB Dynamics and “bingo” for Bango

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

7DIG Agreement, ABDP Trading Update, AVCT, BGO, COG Agreement, FITB* Board Changes, GFIN Viewing Targets, LID Half Yearly Report, MDZ* Trading Update, MXO* Update, OBT Proposed Listing, OPTI* New Strains, PEG* Contract Win, NIPT Clinical Laboratory, PLI* Orphan Drug Designation Granted, VENN* Appointment of Director and Completion of Acquisition

7digital Group (LON:7DIG 10.18p/£11.29m)

7digital, the digital music and radio services company, announced that it has been chosen as a supplier to Electric Jukebox Company and its unique plug and play music streaming experience for the home, which was launched this week at BAFTA in London. The Company is licensing its platform for the Electric Jukebox product in both the UK and US; the agreement will provide access to technology, infrastructure and music catalogue. 7digital will also curate playlists with expertise from the Company’s content production division. Electric Jukebox offers all the benefits of a premium music streaming subscription service in a box but without the need for a smartphone, a PC, or a monthly subscription – representing the first “Internet of Things” music appliance for the home. Independent YouGov research published this week shows that the vast majority of consumers have struggled with the complexities of digital music, with the most common ways of playing music identified as radio (52 percent) and hi-fi/CD (42 percent). Streaming hardware is only used by 6 percent of consumers in the USA and UK.

AB Dynamics (LON:ABDP 279.00p/£48.02m)

AB Dynamics, the designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry, announced a trading update in advance of its final results for the twelve months ended 31 August 2015. The Group has performed well in 2015 and the Board expects to report revenues and profits materially ahead of market forecasts. As announced on 12 February 2015, ABD had conditionally been awarded a grant of up to £2.3m from the UK Government’s Regional Growth Fund. Having now received the Final Grant Offer Letter, which contains revised requirements from the earlier draft conditional offer letter, the Board has determined that these additional requirements are over burdensome and it would not be in the best interests of the Group and its shareholders to proceed with the grant and accordingly the offer has been declined. As a result of the robust financial position and sound operational performance of the business, the Board is confident that, notwithstanding declining the grant, the Group has sufficient funds to facilitate its expansion plans for meeting increasing global demand which include building the new facility.

Avacta Group (LON:AVCT 1.37p/£93.00m)

Avacta Group, the developer of Affimer® biotherapeutics and research reagents, announced that data from a collaboration with researchers at the University of Copenhagen have shown that targeted Affimer expression using genetically engineered barley can improve disease resistance in one of the world’s major cereal crops. The research was supported through Danish federal funding with Avacta providing access to the Affimer technology and know-how. A study investigating whether Affimer technology could be used to block the mechanism by which powdery mildew infects the barley plant and overcomes its immune system was undertaken by a research group led by Professor Hans Thordal-Christensen from the Department of Plant and Soil Sciences at the University of Copenhagen. The research showed that when certain specific Affimer constructs were expressed by the plant, a 40 percent reduction in the susceptibility of barley to powdery mildew was observed. These promising early results indicate the potential use of Affimer technology to treat and diagnose a wide range of diseases in plants. Barley has many uses in the human food chain and animal fodder, as well as being a major ingredient in beer and whisky production. One of the most devastating diseases of barley is powdery mildew which can typically reduce yields by 15 percent and has a significant effect on costs downstream in food and drink production. Plants rely on an innate immunity to protect themselves against such diseases but the pathogens evolve to overcome the plant’s immune system and can mutate to develop resistance to fungicides. Genetic modifications can impart disease resistance and reduce the use of fungicides, but often this approach has the side effect of reducing yield itself. There is therefore a high unmet need to develop treatments that improve disease resistance in plants.

Bango (LON:BGO 84.00p/£44.74m)

Bango, the mobile payments company, announced End User Spend in emerging markets ahead of Bango’s prior expectations. Entering Q4 2015, End User Spend through the Bango platform has grown to an annualised rate exceeding £60m, 98 percent higher than the equivalent rate 12 months earlier. During 2014 and 2015, Bango launched a number of direct carrier billing connections in emerging markets for app store partners, including for the BlackBerry World and BlackBerry Messenger stores, and for the Windows Phone Store. With further billing routes activated in 2015, including the launch of direct carrier billing via Google Play in Mexico and South Africa, these new emerging markets are now materially contributing to End User Spend on app store content via the Bango platform and will be a greater contributor to 2016 performance than previously expected.

Cambridge Cognition Holdings (LON:COG 89.94p/£16.13m)

Cambridge Cognition Holdings, which specialises in computerised neuropsychological tests including those enabling the early detection of dementia, announced two new licence agreements which extend the Company’s testing capabilities into new areas of research, enabling assessment of ‘Hot’ cognition – mental processes that are influenced by emotion and social interaction – to be performed reliably and routinely for the first time. ‘Hot’ cognition is a key feature of neuropsychiatric and neurodegenerative conditions where emotionally or socially-charged information is difficult for the individual to process resulting in problems in real-world situations. The ability to assess these factors using proprietary Cambridge Cognition technology will lead to objective ways of detecting early risk factors, measuring both relapse and improvement, and the potential to enable timely treatment and intervention for patients. The licensed software will be developed for inclusion in the Company’s cloud-based CANTAB™ Connect portfolio with launch expected in 2016. These products will enhance the research of neuropsychiatric conditions such as dementia, schizophrenia, autism and depression and will create new revenue streams through product sales in the academic research market and through partnering opportunities with pharmaceutical and healthcare companies.

Fitbug (LON:FITB 1.51p/£4.44m)*

Fitbug Holdings, the provider of online personal health and wellbeing services, announced that Ann Jones, Group Sales Director, will be leaving by mutual consent to pursue new business opportunities. Additionally, the Company is bolstering its team in several areas and has recently appointed a new Digital Marketing Manager to support the roll out of Kiqplan version 2 (‘Kiqplan V2’), the first digital fitness coaching App of its kind, which is on track to be launched by the end of November 2015. The Company is focused on ensuring that it has the right resources to successfully penetrate the digital health market with this unique App, which includes a range of tailored 12-week coaching plans to guide and motivate users to achieve more on their fitness journey.

Gfinity (LON:GFIN 24.65p/£19.46m)

Gfinity, a leading eSports business, announced that it has recorded 58.5 million online views for The 2015 Gfinity Championship series, exceeding its original target of 50 million. The inaugural 2015 series comprised 23 weekly tournaments, held in the six month period from March to September 2015, primarily at the Gfinity Arena in Fulham, London and covered five major eSports titles. These tournaments were streamed live on internet TV channels including Twitch, and The events, which were broadcast in 10 languages, were viewed in over 25 countries with viewers collectively watching in excess of 15.8 million hours of live content. The series finale was the Gfinity Champion of Champions event, held at EGX, (the UK’s largest gaming festival held at the NEC in Birmingham) over the last weekend of September. This Champion of Champions event alone drew 8.75 million online views.

LiDCO Group (LON:LID 11.00p/£21.36m)

LiDCO, the hemodynamic monitoring Company, announced its unaudited Interim Results for the six months ended 31 July 2015. Financial Highlights showed total revenue of £3.60m (2014: £3.71m) in line with the trading update of 2 September 2015. Surgery disposables (excluding 3rd party products) revenue was up 2 percent to £1.48m (2014: £1.45m) with EU & ROW distributor revenues up 8 percent to £0.55m (2014: £0.51m), but a loss before tax £0.53m (2014: £0.19m) after planned increase in sales infrastructure costs. Cash at period end was £1.39m (31 Jan 2015: £1.51m). Operational Highlights showed a five year agreement signed with US group purchasing organisation MedAssets working on behalf of a large US healthcare group comprising 38 hospitals across 8 states. 65 monitors were sold/placed in the period (2014: 128); 29 surgical monitors (2014: 33) installed in the UK. Disposable unit sales were 24,970 (2014: 25,721) with key surgical disposables units up 1 percent during the period.

MediaZest (LON:MDZ 0.188p/£1.87m)*

MediaZest, the creative audio-visual company, provided an update in respect of ongoing and new business confirmed for delivery during the financial year 2015/16. This follows the update provided with the Annual Accounts for the Financial Year ended 31 March 2015 which was announced on 24 August 2015. Since then, the Group has secured material additional business from both Hyundai and Rockar with particular reference to two significant new projects. Work also continues with Adidas (with projects won for two additional UK stores and another in mainland Europe) and the Group continues to complete new deployments for the Post Office Limited. New clients gained in this period include Diesel, Molson Coors and the John Lewis Partnership. Existing clients such as Belstaff, HMV, Kuoni, TM Lewin and Samsung continue to help the Group to generate improved recurring revenue streams. The combined total revenue value of these projects is approximately £1m almost all of which is expected to have been delivered before the end of this calendar year. They expect to undertake further projects moving forward with the majority of these clients and therefore to improve the sustainability and quality of the Group’s future revenues. It should be further noted that two of these projects include the deployment of the MediaZest Retail Analytics platform.

MX Oil (LON:MXO 2.30p/£8.87m)*

MX Oil, the oil and gas investment company, announced the appointment of Mr Nigel Bruce McKim as Non-executive Director with immediate effect. Nigel will replace Patrick Mendoza, who is stepping down from the Board to pursue other business interests. Nigel, aged 53, has 28 years of experience in field development planning and production in the oil and gas industry. His most recent role was Chief Operations Officer for Nobel Upstream Group where he was responsible for the company’s technical capabilities and participated in the building of a portfolio of assets in Texas, the UK and Azerbaijan. The company also provided a corporate update, in addition to its Bid Round 1 application, the Company, together with Geo Estratos, has been in active discussions with Pemex with regard to their search for JV partners for assets in Mexico. These discussions are progressing well and the Board expects to be in a position to update the market on these discussions in the coming months. As previously announced, the Company also expects to hear the result of its pre-qualification application for Bid Round 1 in November 2015, followed by licence awards in December 2015. This coincides with the expected operational milestones regarding drilling at the Aje Field offshore Nigeria and the Company will keep the market appraised of developments. The company also provided an update on offshore Nigeria, the Aje-5 production well located on the OML 113 licence, offshore Nigeria, has been successfully completed and the reservoir has been perforated in the Upper and Lower Cenomanian Oil bearing zones. The subsea tree has been installed and the well has been suspended ready for connection to the oil production facilities prior to commencement of production. The Saipem Scarabeo three semi-submersible drilling rig has been moved to re-enter the existing Aje-4 well for completion as a second Cenomanian production well. All key equipment related to the Aje oilfield development has now been delivered to Lagos, including the floating production storage and offloading vessel (FPSO) moorings and turret buoy, the production manifold, the umbilical termination assembly, and the umbilicals and flowlines.

Obtala Resources (LON:OBT 7.75p/£20.40m)

Obtala Resources, the vertically integrated agribusiness, timber and retail company, provided the following update with respect to its timber assets in Mozambique. The Board of Obtala has commenced a process to list the forestry division in a separately quoted company to be listed on the AIM market during the first quarter of 2016. The Board has reviewed a number of opportunities for the forestry division and believe it is in the best interest of Obtala shareholders to “spin out” the forestry division in order for the significant inherent value to be recognised and to attract investors focused on the forestry sector. The Company has commissioned Honour Capital, a specialist forestry advisory and management Company, to undertake a valuation review of the new blocks. Honour Capital prepared a valuation report in June 2014 which attributed a NPV to the timber business of $161m at a 12 percent discount based on a 10 year cash flow model. The 2014 valuation was based on 11 concessions with a total land area of 279,965 hectares. The Company is, subject to local Government approval, completing the acquisition of 50 year leases for two new timber concessions totalling 35,000 hectares in Mozambique to bring the total forestry area to 314,965 hectares. The new blocks are situated adjacent to their main operational centre and, together with the existing holdings, provide a critical mass in terms of approved annual permitted cut.

OptiBiotix Health (LON:OPTI 54.53p/£40.19m)*

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes, announced the registration of five new microbial strains under the Budapest Treaty. This increases the number of strain registrations from three to eight. The five strains have been identified as having the potential to generate novel oligosaccharides (carbohydrates that consist of a small number of sugars). As announced previously, oligosaccharides from strains showing commercial potential are being scaled up, purified, and tested for their organoleptic (taste, texture, aftertaste) and microbiome modulating properties. This work is the final stages of the laboratory programme which will enable OptiBiotix to progress its pipeline of novel oligosaccharides to testing in human studies.

Petards Group (LON:PEG 13.00p/£4.60m)*

Petards, the developer of advanced security and surveillance systems, announced that it has been awarded a further contract to supply Bombardier Transportation with Petards’ eyeTrain systems. The new contract, which is worth in excess of £1m, is for the supply of eyeTrain saloon and Driver Only Operation (DOO) systems which will be fitted to new four-car ELECTROSTARElectrical Multiple Unit (EMU) trains to be built by Bombardier. Petards’ deliveries are anticipated to commence during 2016 and to be substantially completed by the end of that year.

Premaitha Health (LON:NIPT 14.40p/£32.84m)

Premaitha Health, developer of the IONA® test, the first CE-marked non-invasive prenatal screening test (NIPT) has expanded its in-house NIPT screening service by opening a dedicated laboratory which triples clinical capacity in response to demand for the IONA® test from clinicians. The new Care Quality Commission (CQC)-accredited, clinical laboratory which is based at Premaitha’s headquarters on Manchester Science Park, will enable Premaitha to dramatically increase throughput, of the maternal blood samples analysed each month using the IONA® test. The IONA® test estimates the risk of a foetus being affected by Down’s syndrome and other serious genetic conditions such as Patau’s syndrome and Edwards’ syndrome by analysing cell-free DNA from a sample of maternal blood. The test is more sensitive and specific than the current combined test available and provides a more accurate and reliable screening result within three to five days, compared to the lead time of up to 14 days offered by US and China-based NIPT service laboratories. Premaitha began offering an NIPT clinical laboratory service on a smaller scale in July 2015 to allow new customers to provide pregnant women with access to the IONA® test as soon as possible, during the set-up of their own lab or while they grow their NIPT volumes. The service also provides an important back-up option during busy periods; ensuring results are delivered to healthcare professionals on-time and from a regulated and trusted clinical laboratory. Since initiating the in-house service, the Company has seen demand for the IONA® test increase significantly with service laboratory customers from across the UK and internationally.

ProMetic Life Sciences (TSX:PLI CAD1.93/CAD1,121.63m)*

ProMetic Life Sciences announced that an orphan drug designation status has been granted for its lead drug candidate, PBI-4050, for the treatment of idiopathic pulmonary fibrosis (IPF), by the European Commission. ProMetic is currently investigating the safety, tolerability and effects of PBI-4050 on pulmonary function, disease progression and inflammatory/fibrotic biomarkers in a Canadian open-label Phase II study in 40 patients suffering from IPF. ProMetic also expects to file an IND with the FDA during the first quarter of 2016 for a multi-center, double-blind, placebo-controlled pivotal study with IPF patients currently on pirfenidone or nintedanib randomised to receive either PBI-4050 or a placebo. In gold standard animal models proven to emulate pulmonary fibrosis in humans, PBI-4050 performed favourably compared to recently approved drugs to treat this condition. PBI-4050 significantly reduced the tissue scarring in the lungs observed in non-treated animals, indicating the potential for clinically significant improvement and stabilisation of lung function in patients with IPF. Moreover, the combination of PBI-4050 and another approved drug generated a further reduction in fibrotic biomarkers in this model, suggesting that a synergistic clinical benefit may be found. European Orphan Drug Designation is granted to novel drugs or biologics that treat a rare disease or condition affecting fewer than 250,000 patients in the European Union. The designation provides the drug developer with a ten year period of marketing exclusivity upon marketing approval for the designated indication, as well as reduced fees for regulatory activities, the ability to apply for marketing authorisation centrally in the European Union and protocol assistance, a form of scientific advice specifically for orphan medicines.

Venn Life Sciences (LON:VENN 23.60p/£13.09m)*

Venn Life Sciences, a growing Clinical Research Organisation providing clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced that following the completion of the acquisition of Kinesis Pharma B.V., Mr Kees Groen, has been appointed as an Executive Director of Venn with immediate effect. Mr Groen, aged 54, is a founder and managing director of Kinesis, and is a regulatory expert with significant experience in pharmaceutical research and development, both with regulatory authorities and in industry. He has been involved on a management and operational level in the fields of preclinical and clinical development, regulatory affairs and licensing for 25 years. The company also announced the completion of the acquisition of Kinesis Pharma BV.


*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on

The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.

5th October 2015

Conviviality across the Universe, Pivotal moment for ProMetic, OptiBiotix going up scale

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Disclaimer- This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only- please refer to the disclaimer in full below.

7DIG Half Yearly Reports, AVG Final Results, BMR Potential, COS Agreement, IKA Patent grant, MGR Half Yearly Report, MXO* Half Yearly Report and Update, OBT Half Yearly Report, OPTI* Completion of Study, ORM Half Yearly Report, PLI* Meeting with US FDA, SVR Interim Results, VLG Interim Results, UNG New Contract Win

7digital Group (LON:7DIG 10.10p/£11.04m)

7digital Group, the digital music and radio services company, announced its results for the half year ended 30 June 2015. High margin monthly recurring licensing revenues from access to the Company’s streaming technology and music catalogue are replacing low margin revenues from downloaded content. As the online music industry moves into a “Third Age”, an increasing number of companies are ready to enter the digital music and radio marketplace, creating a strong demand for the Company’s services. Operational highlights included 15 new customer contracts signed producing set-up revenues of £0.9m, including Sainsbury’s, Mariposa, Jazz FM, NEC, Panasonic, and OpenLIVE. There were 13 new customers using the platform, generating annualised MRR (monthly recurring revenues) of £1.6m during the lifetime of their contracts, including ROK Mobile, Onkyo, Spanish Broadcasting Systems, and new Guvera territories. There was continued transition from low margin download business to high margin B2B streaming services which raises the gross margin to 64 percent (2014: 49 percent). Finally, new partnership agreements with Imagination for FlowRadio, and product innovation with Google CastTM were also announced. Financial highlights included a turnover of £5.2m (2014: £5.1m), with high-margin licensing revenues up by 26 percent to £3.1m and total annualised MRR at half year end up 55 percent at £5.2m (December 2014: £3.3m). Gross profit was up by 34 percent to £3.3m (2014: £2.5m) and adjusted LBITDA reduced by 27 percent to £1.3m (2014: £1.8m), which including the mark-to-market loss on the sale of the Audioboom stake of £4.8m, a statutory loss of £6.6m (2014: £2.8m) and cash at 30 June 2015 of £2.5m (December 2014: £5.3m).

Avingtrans (LON:AVG 112.00p/£31.45m)

Avingtrans, which designs, manufactures and supplies critical components, modules and associated services to the aerospace, energy and medical sectors, announced its preliminary results for the twelve months ended 31 May 2015. Financial Highlights showed revenue decreased by 4 percent to £57.8m (2014: £60.3m), allowing adjusted EBITDA to decrease by 6 percent to £5.3m (2014: £5.6m), which meant adjusted Profit Before Tax decreased by 16 percent, to £2.9m (2014: £3.5m). Cash generated from operating activities remained at £1.6m (2014: £1.6m), with net debt increasing to £5.9m (31 May 2014: £3.6m). Gearing was 17 percent (2016: 11 percent) and there was an increase in final dividend of 2.0 pence per share, and a full year total 3.0 pence (2014: Final 1.8 pence per share, Total 2.7 pence), an increase of 11 percent. Operational highlights showed Aerospace revenues restricted, with a decrease of 7 percent versus 2014, largely due to first half customer destocking, and the second half stabilised. There were also new contract wins with Airbus/PFW (£25m/10yr) and Sonaca (£5m/5yr), with the acquisition of RMDG assets for £1.2m from Tricorn plc which boosted market share. Energy and Medical division revenues flat, constrained by low oil price, and the EBIT recovered in H2. The company announced a £47m, 10-year contract win with Sellafield Ltd and EBIT losses significantly reduced, with a second half profit demonstrating progress.

BMR Mining (LON:BMR 5.30p/£6.81m)

BMR Mining, the Zambian-focused mineral processing business, provided an update on the WKS from which BMR now hopes to generate revenues. BMR’s assets at Kabwe, Zambia, include approximately 1.1 million tonnes of WKS, as surveyed on a JORC compliant basis by Mineral Consultant Corporation The WKS was written down by 90 percent to £0.2m in the accounts for the year ended 30 June 2014 due to it being brittle and hard, and of too low a grade and too difficult to process on a commercial basis. However, BMR has now identified, from studies undertaken by the Building Research Establishment UK, that the WKS, being a ferro-silicate zinc slag (smelter slag), could be applied in the construction of building blocks. As part of its analysis and in conjunction with a local block making company, BMR has manufactured a test batch of concrete blocks, using an 80:20 ratio of WKS to building sand, which were then subjected to testing. Importantly, there was no evidence of leaching of lead or zinc. BMR has therefore instructed its Environmental Consultants to prepare a submission, including BMR’s test results, to seek approval from the Zambian Environmental Management Agency (ZEMA) to sell the WKS for incorporation in block and concrete making. Approval will be sought in the form of an Environmental Project Brief which involves a separate and less onerous application process than an Environmental Impact Study. The Directors expect that this submission will be made by early November with approval being granted by the end of the calendar year. In the event that ZEMA approval is given, BMR intends to commence local sales of WKS, which would involve limited costs and could realise modest but meaningful revenues over several years. Disposing of the WKS in this manner would also provide an elegant solution to environmental issues associated therewith.

Collagen Solutions (LON:COS 12.15p/£20.55m)

Collagen Solutions, the developer and manufacturer of medical grade collagen components for use in regenerative medicine, medical devices and in-vitro diagnostics, announced that its subsidiary Collagen Solutions Inc. has signed a supply agreement with Turkish medical device company Yücel Medikal Ltd. This supply agreement covers the provision of collagen materials and support services for use in Yucel’s product Lyocoll which is currently on sale in Turkey. Lyocoll is a local haemostatic used in all types of surgery to control capillary and venous bleeding as well as oozing where the conventional methods are impractical and ineffective.

Ilika (LON:IKA 69.50p/£45.52m)

Ilika, the accelerated materials innovation company, announced it has received a Notice of Grant in China for its patent application supporting solid-state batteries jointly filed with Toyota Motor Company on 21 July 2011. This Notice of Grant in China follows the successful British grant in May 2014 and the notice of Intention to Grant in Europe in March 2015 as a member of the patent families that cover Ilika’s proprietary vapour deposition processes used in producing solid-state batteries directly from the basic elements. The application went to formal grant in Europe in July 2015 and Ilika has now received a Notice of Grant in China. This particular joint filing resulted from collaborative work undertaken by Ilika and Toyota, which commenced in 2008. This patent family is one of the two earliest filings of a growing portfolio of intellectual property exemplifying Ilika’s unique approach to solid-state battery production using evaporation sources. The more recent applications in the portfolio contain both jointly-owned and solely owned IP. In January 2014, three international patent applications from the portfolio were filed under the Patent Co-operation Treaty based upon earlier British priority applications. These were published in July 2015 and are progressing through the international patent examination process. The scalable stacked cell architecture which Ilika can produce, enables the simple fabrication of cells over a wide range of sizes. Ilika intends initially to produce micro-battery prototypes designed for powering wireless sensors, commonly referred to as the “Internet of Things”, which is a rapidly growing segment expected to create an addressable market for micro-batteries in excess of £1bn by 2017.

Miton Group (LON:MGR 26.90p/£45.72m)

Miton Group, the fund management group, announced its half year results for the six months ended 30 June 2015. Financial highlights showed renewed momentum with net inflows in Q2 following outflows in Q1. Over six months to 30 June, AUM increased from £2,050m to £2,225m, with average AUM over the six month period at £2,140m (H1 2014 – £2,953m). This reduction included the impact of the disposal of the Liverpool business. Net revenue margin increased to 66.6bp (H1 2014 – 65.0bp) and H1 costs maintained at £5.7m (H1 2014 – £5.8m). Adjusted profit before tax reduced to £0.8m (H1 2014 £3.4m) and total cash balances as at 30 June 2015 were £13.6m (31 December 2014: £15.2m) after payment of year-end bonuses and the dividend. Trading is currently in line with the Board’s expectations for the year as a whole. The positive net flows experienced in Q2 have continued and AUM rose to £2,364m as at 31 August 2015. CF Miton UK Value Opportunities fund increased AUM to £498m as at 31 August 2015 (30 June 2015: £378m; 30 June 2014: £86m). Miton UK MicroCap Trust plc was launched in April raising £50m. Since launch a further £5m has been raised and following appointment of Carlos Moreno in August, the company intend to launch a new European equities fund in Q4.

MX Oil (LON:MXO 2.38p/£9.22m)*

MX Oil, the oil and gas investing company focused on the re-opening Mexican energy sector, announced its unaudited half-yearly results for the six month period ended 30 June 2015. Highlights for H1 2015 showed that significant progress had been made regarding the onshore conventional field bidding round in Mexico, with access granted to the data room in June 2015 – where analysis and due diligence are on-going, ahead of the anticipated award of concessions in December 2015. The terms of the joint venture with local partner in Mexico, Geo Estratos have been amended, increasing MX Oil’s interest in any concessions awarded to 55 percent and removing the obligation to fund Geo’s share of costs post contract award in return for limiting Geo’s exclusivity to a minimum of two concessions. Post-Period Highlights showed the company investing in a 5 percent indirect, non-operating interest in Aje – a substantial late stage development project offshore Nigeria with proven, flow tested discoveries and exploration potential. Commencement of multi-phase development project is underway at Aje, part of the OML 113 licence – initial two well programme underway targeting first oil by December 2015 and peak production of 11,000 bopd. Multiple exploration prospects have also been identified on Nigerian licence which lies adjacent to the 774mmboe (P50 gross recoverable resources) Ogo structure on block OPL 310. The company also provided an update on the progress it is making in Mexico together with its partner Geo Estratos with regards to the on-going Bid Round 1 Licensing round and its efforts to secure onshore conventional concessions in the re-opening Mexican energy sector. The Company has submitted its pre-qualification filing with the National Hydrocarbons Commission regarding its participation in the third phase of Bid Round 1. In this third phase, a total of 25 Land Contract Areas in the states of Chiapas, Nuevo Leon, Tabasco, Tamaulipas and Veracruz will be awarded to companies that satisfy the pre-qualification requirements and win the subsequent tender process. In tandem with this, MX Oil has completed its due diligence on five Land Contract areas and following this confirms its intention to bid for all five of the concessions. It is expected concessions will be awarded in December 2015.

Obtala Resources (LON:OBT 6.00p/£15.80m)

Obtala Resources, the African-focused, vertically integrated agribusiness, timber and retail company, announced interim results for the six months ended 30 June 2015. Financial highlights showed sales revenue increasing to £2.3m (2014: £1.0m), with net profit of £3.02m (2014: loss £0.2m) including independent valuation of new land assets and net assets standing at £95.8m (2014: £93.5m) and cash and equivalents broadly the same at £1.4m. Operational highlights showed the Agribusiness developing fresh produce lines, with Global GAP certification awarded and work continuing on gaining BRC Global Standards. The Timber business showed a further 35,000 hectares under application, now supplying cut timber and the development of higher margin product lines. The retail side revealed that six branches are now open, with continued focus on operational performance improvement, cost control and sourcing.

OptiBiotix Health (LON:OPTI 44.22p/£32.98m)*

OptiBiotix Health, a life sciences business developing compounds to tackle obesity, high cholesterol and diabetes, announced it has completed testing and primary data analysis on its capsular food supplement to reduce cholesterol, and commenced pilot manufacturing studies. The aim of the human study was to establish safety and compliance, and to assess the extent of the lowering potential of its product in this group of volunteers. Sample testing and primary data analysis has now been completed and in accordance with the option agreement announced in June 2015, the results are being shared with a multinational consumer goods company. The terms of the option agreement are bound by confidentiality and no further details on the agreement or human studies can be disclosed at this time. The company also announces it has commenced pilot manufacturing studies to define the scale up requirements to take the strain from laboratory to pilot scale manufacture.

Ormonde Mining (LON:ORM 1.60p/£10.40m)

Ormonde Mining, the development and exploration company operating in Spain, announced its unaudited interim results for the six months ended 30 June 2015. Highlights showed that the Mining Concession was received and the critical permitting steps for Barruecopardo Project development were completed late in 2014. A $99.7m funding package was successfully completed for the development of Barruecopardo, with Oaktree Capital Management, comprising a well balanced mix of equity and debt. Moreover, commencement of the development stage of the Barruecopardo Project, with tender documents for the supply of the major items of the processing plant were issued and final engineering design work for the rest of the plant is underway. Ormonde reports a profit of €2.56m for the 6 months to 30 June 2015 (Loss of €1.12m for the 6 months to 30 June 2014) which includes a profit of €3.40m from the part disposal of its interest in Saloro as part of the Financing.

ProMetic Life Sciences (TSX:PLI CAD1.88/CAD1,092.29m)*

ProMetic Life Sciences announced it had a successful Pre-Investigational New Drug meeting with the US Food and Drug Administration (FDA) for its orally active anti-fibrotic lead drug candidate, PBI-4050. The meeting with the FDA focused on ProMetic’s proposed clinical development program for PBI-4050 in patients with IPF, and particularly on an optimal design for the first pivotal clinical trial that will incorporate the current standards of care for IPF in the US. The two drugs commercially available to treat IPF have been shown in clinical trials to slow the progression of the disease, but not to reverse it. Treatment of this devastating condition therefore remains an urgent medical need, and IPF patients could potentially benefit from PBI-4050, either alone or in combination with current therapies. It is notable that in the gold standard preclinical model used to emulate pulmonary fibrosis in humans, PBI-4050 performed favourably compared to these recently approved drugs, and demonstrated synergistic effects when combined with pirfenidone (Esbriet®). The multi-centre pivotal study will be a double-blind, placebo-controlled design with IPF patients on pirfenidone or nintedanib randomised to receive either PBI-4050 or a placebo. The study will be powered to demonstrate a statistically significant difference in forced vital capacity changes between the PBI-4050 combination therapies and the current standards of care. The design of the definitive protocol is currently being completed by consultant experts in this field, and ProMetic expects to file its IND with the FDA during the first quarter of 2016.

ServicePower Technologies (LON:SVR 4.88p/£11.09m)

ServicePower, a market leader for mobile workforce management software solutions, announced its unaudited interim results for the six months ended 30 June 2015. Financial highlights showed that trading for the half-year was in line with management expectations and ahead of the same period last year. Total revenues were up 13 percent to £6.94m (H1 2014: £6.16m), with recurring revenues accounting for 81.5 percent and SaaS now deployed to 71 percent of their customers. Gross profit was up 26 percent to £3.4m (H1 2014: £2.7m) and LBITDA reduced by 71 percent to £0.2m, including £0.1m in extraordinary expenses and £0.2m in IT cloud transition costs (H1 2014 LBITDA: £0.7m). Loss before tax reduced by 33 percent to £0.6m (H1 2014: £0.9m), including the accrued interest that was converted on 30 June 2015 and net cash at 30 June 2015 was £0.7m, prior to the receipt of the £0.75m short term loan (as announced on 30 June 2015) (30 June 2014 Net Cash: £0.6m). Operational highlights showed that the momentum gained in 2014, 11 deals were signed during the period with new and existing customers, with a strong pipeline in place for H2 2015 and 2016. The Company entered into a number of strategic partnerships in order to broaden its functional capabilities and cloud-based offerings.

Venture Life Group (LON:VLG 81.60p/£28.07m)

Venture Life Group, the international consumer products group addressing the self-care needs of the ageing population, presented its unaudited interim results for the six months ended 30 June 2015. Financial highlights showed revenues increased to £4.4m (H1 2014: £3.1m), allowing for gross profit to increase to £1.5m (H1 2014: £1.2m), but a loss before tax, amortisation and exceptional costs increasing to £0.42m (H1 2014: loss of £0.23m). Cash at the period end was £3.3m (31 December 2014: £4.9m). Commercial highlights revealed a 30 year exclusive distribution agreement signed with the Chinese retailer Gialen Group Co. Ltd to sell a range of skin-care products in China under Venture Life’s Lubatti brand with first order and payment equivalent to €0.5m (50 percent of the first order) received. Moreover, exclusive distribution agreements signed for Lissio HA in Slovakia and Original Bioscalin in Taiwan, and a ten year agreement signed with a Swiss healthcare company to formulate and manufacture an onychomycosis product. Post-period end highlights showed four long term exclusive distribution agreements signed across four brands, including in India for Original Bioscalin and the first consignment of Lubatti products ready to ship to China, with second order received and retail launch planned by Gialen for Q4 2015.

Universe Group (LON:UNG 10.6p/£24.44m)

Universe, a leading developer and supplier of point of sale, payment and on-line loyalty systems announced that its subsidiary HTEC, has signed a major contract with Conviviality Retail Plc, the UK’s largest franchised off-licence and convenience store chain with the Bargain Booze fascia. Under this contract, revenues over the next three years are expected to amount to approximately £4.3m. The contract, secured after an international competitive tender process, is for the supply and maintenance of a comprehensive, integrated suite of HTEC’s proprietary next generation point of sale, back office, head office and payment systems together with related on-going customer support. The systems will be installed across Conviviality’s entire estate of over 650 off-licence and convenience stores, with implementation expected to begin no later than November 2015. As well as facilitating and managing sales processing and secure in-store payments, HTEC’s products will also manage online ordering and deliver an extensive reporting suite.


*A corporate client of Hybridan LLP

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