Small Cap Feast – 29 October 2020
Dish Of The Day:
SourceBio International (SBI.L) has listed on AIM raising £35m. Services include Healthcare Diagnostics, Genomics, Stability Storage and infectious Disease Testing – since May 2020, the Group has provided COVID-19 Antigen RT-PCR testing services. £120m market cap.
Zinnwald Resources (ZNWD.L) has listed on AIM following a Reverse Takeover by Erris Resources. · Completed acquisition of 50% interest in late stage high return Zinnwald Lithium Project: €428m pre-tax NPV (8% discount rate); Pre-Tax IRR 27.4%; 46% EBITDA margin (Feasibility Study). · Plan to advance the Project towards becoming a supplier of high value lithium products to Europe’s rapidly growing EV (electric vehicle) and energy storage markets. £3.75m placing.
Off The Menu:
No Leavers Today
What’s Cooking In The IPO Kitchen?
Verici DX—developer of advanced clinical diagnostics for organ transplant, intends to apply to have its issued share capital, as enlarged by a proposed placing, subscription . The Restricted Offer is only available to certain persons, being persons who held the beneficial title to any A Shares of £0.001 each in the capital of the Company on 10 July 2020 (the “Record Date”) whose registered address is in the UK (being persons recorded on the register of members of Renalytix AI plc on 9 July 2020). £14.5m fundraise. Mkt Cap c.£28.3m. Due 3 November
SDIC Holdings a leading power generation company in China is to list on the standard segment of the Official List and to trading on the Shanghai-London Stock Connect segment of the main market for listed securities of London Stock Exchange. Due on or around 22 Oct. Gross proceeds from the Offering are expected to amount to between approximately USD 220 million and USD 240 million. The proceeds will be used for expanding the Group’s renewable energy business overseas and repaying the Group’s offshore indebtedness.
Round Hill Music Royalty fund to IPO on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of a placing and offer for subscription targeting the issue of 375 million ordinary shares at an issue price of US$1.00 per Ordinary Share. The Company’s Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. Due mid-November.
Meritwell II intends to list on the Specialist Funds Segment of the LSE raising up to £250m. The Placing will provide UK institutions with the opportunity to “swap” illiquid holdings which have become time and resource consuming holdings, at their bid price, in return for ordinary shares in the Company. Due 26 Oct.
Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due November.
Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Timing tbc
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc
Kibo Energy PLC (AIM:KIBO), the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.
Zoltav Resources 40.5p £57.5m (AIM:ZOL)
The Russia-focused oil and gas exploration and production company, announced results for the six months ended 30 June 2020.
Revenues declined by 12% to RUB 552 million (USD 8 million) (H1 2019: RUB 624 million (USD 9.6 million)), due mainly to lower gas production and lower oil and condensate prices. · Operating profit of RUB 87.2 million (USD 1.26 million) (H1 2019: operating loss of RUB 105 million (USD 1.61 million)). Total cash at the end of the period was RUB 31 million (USD 0.45 million) (H1 2019: RUB 330 million (USD 5.33 million)) .
“H1 2020 was a busy period operationally, completing, in tandem, both the substantial feasibility study programme on East Bortovoy and continuing the development drilling programme on West Bortovoy.
We continue to work to maximise the potential of the western fields, with the work programme expected to enable Zoltav to deliver sustainable gas production of at least 35.3 mmcf/d (1 mmcm/d) by the end of 2020. At the same time, we are considering options for the potential development of the eastern fields on the Bortovoy Licence. This project remains subject to a final investment decision.”
Escape Hunt 9.25p £7.4m (AIM)
Escape Hunt, a global leader in the growing escape rooms sector, announced the opening of its next UK owner-operated site based in Basingstoke today, having opened for bookings on 15th October 2020. It is the eleventh UK site operating under the ‘Escape Hunt’ brand and will have six games rooms, including an instance of Escape Hunt’s newest Doctor Who themed game, ‘A Dalek Awakens’ as well as a virtual reality games room. Outdoor games are also available.
Alpha Financial Markets Consulting 215p £229m (AIM:AFM)
Alpha FMC, a leading global provider of specialist consultancy services to the asset and wealth management industry, today announces the launch of its dedicated Environmental, Social and Governance (ESG) and Responsible Investment (RI) practice. The practice will comprise a global network of 20+ ESG practitioners; most of whom are already working with clients, on ESG & RI programmes.
Kape Technologies 160p £257m (LON:KAPE)
Completion of $115m fund raise vs initial target of $100m by the digital security and privacy software business at 150p. The net proceeds of the Placing and Retail Offer will be used as follows:
o c. US$72 million to buy out the equity interests in the Company of Andrew Lee and Steven DeProspero (the “PIA Founders”), the two co-founders of Private Internet Access (“PIA”), a company acquired by Kape in 2019; and
o the balance to strengthen Kape’s balance sheet and enable fast execution of further selective acquisitions, building on Kape’s excellent M&A track record and continuing pursuit of growth.
Marlowe 547p £300m (AIM:MRL)
Further to the announcement of 28 October 2020 of the acquisition of Ellis Whittam and a proposed placing, Marlowe (specialist services group focused on developing companies which assure safety and regulatory compliance) has successfully raised approximately £30 million before expenses under the Placing, which was oversubscribed. The Placing Price of 547 pence per share represents a nil discount to the closing price on 28 October 2020.
Panthera Resources 12.25p £10.4m (LON:PAT)
The diversified gold exploration and development company with assets in West Africa and India, announced that fieldwork at its Bassala Project has now commenced.
Ground magnetic surveying now underway with soil sampling to commence shortly
Programme to define and rank drill targets for testing during H1 2021
Processed results from ground magnetic survey due by early November 2020
High-grade intersections from previous drilling and artisanal workings
Located within 5-8km of Kalana (Endeavour, 4Moz) of Kodieran (Wassoul’or, 2Moz) mines
“Our shareholders now have exposure to seven highly prospective gold projects in four countries. Eight of nine assets in the Panthera portfolio have ore grade mineralisation evidenced through historical shallow mining activity and six of these projects have deeper ore grade drilling intersections.”
MTI Wireless Edge 45p £39.84m (AIM:MWE)
The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announced that the St Petersburg office of MTI Summit has secured a significant order for delivery in 2021 from a Russian customer. The contract is worth approximately US$1.5 million and is a repeat order for the supply of radio frequency components.
Amryt Pharma 208p £339m (AIM:AMYT)
The commercial-stage biopharmaceutical company dedicated to developing and commercialising novel therapeutics to treat patients suffering from serious and life-threatening rare diseases, announced positive results from its pivotal Phase 3 EASE trial of FILSUVEZ® (Oleogel-S10/previously AP101). Further to Amryt’s announcement of September 9, 2020, the Company today releases additional data which will be presented as a late-breaking oral presentation on behalf of the trial investigators by Professor Dedee Murrell (Chair, Department of Dermatology, St George Hospital, UNSW, Sydney, Australia) at the 29th EADV (European Association of Dermatology and Venereology) Virtual Congress 2020 on October 31, 2020.
The primary endpoint of the trial was met with statistical significance
The proportion of patients with first complete closure of EB target wound within 45 days was 41.3% in the Oleogel-S10 group and 28.9% in the control group (p value=0.013)
This translates to a 44% increase in the probability of target wound closure with Oleogel-S10 compared to the control gel
The proportion of Recessive Dystrophic EB (“RDEB”) patients with first complete closure of EB target wound within 45 days was 44.0% in the Oleogel-S10 group and 26.2% in the control group (nominal p value=0.008)
This translates to a 72% increase in the probability of target wound closure with Oleogel-S10 compared to the control gel in RDEB patients
Proactis Holdings 31.5p £30.1m (AIM:PHD)
The business spend management solution provider, today announces its audited results for the financial year ended 31 July 2020.
Record year in new business total contract value (“TCV”) signed up 29% to £14.6m (2019: £11.3m)
Annualised recurring revenue (“ARR”), excluding heightened risk accounts (“HRAs”), increased by 1.3% to £39.8m (31 July 2019: £39.3m)
Excluding the impact of the COVID-19 global pandemic (“COVID-19”) on volume-related contracts, underlying ARR grew by 8.0% · ARR including HRAs was £41.2m (2019: £44.3m)
Reported revenues of £49.6m (2019: £54.1m) reflective of prior year new business / churn performance
Adjusted EBITDA of £11.8m (2019: £15.1m), in line with market expectations · Adjusted EPS 2.9p (2019: 6.6p)
Impairment of £14.8m taken against French and German Cash Generating Units (“CGUs”) as a result of changes in the Group’s reporting structure and in the US CGU as a result of the impact of COVID-19 in volume related businesses.
Reported loss before tax £19.3m (2019: £25.8m)
Net bank debt of £37.1m (31 January 2020: £35.6m)
Reset banking facilities with HSBC in order to support the Group’s current business plan for the mid-term
Post period -Strategic new business wins in DE and FR . Early adopters identified for bePayd platform
Biome Tech 155p £5.7m (AIM:BIOM)
The bioplastics and radio frequency technology business, today provides a trading update for the nine months ended 30 September 2020. Revenues in the Bioplastics division in Q3 at £1.6m were 48% ahead of the previous quarter (Q2 2020: £1.1m) and 131% ahead of the prior year comparative (Q3 2019: £0.7m). Revenues in the RF Technologies division in Q3 were £0.2m (Q3 2019: £0.6m), resulting in revenues in the first nine months of the financial year of £0.6m (2019: £2.8m). The fibre optic cable market, normally a major driver of the business, remains impacted by both over-capacity and COVID-19 disruption. The division continues to make a concerted effort to increase its geographic footprint and range of applications and already benefits from recurring revenue from power generation, medical and general industrial markets. The business has continued to win small projects in the UK induction heating and welding market, but overall demand remains subdued.
Total Group revenues in Q3 were £1.8m (2019: £1.3m) taking Group revenues for the nine months to 30 September 2020 to £4.3m (2019: £4.7m). It is to be noted that all revenue figures in this statement exclude grant income (£38,000 in the third quarter of this year and £124,000 for the nine months). Costs and capital expenditure continue to be managed tightly and as the Government furlough scheme ends in October, activity levels are such that staff are returning to normal duties. The Group’s cash position as at 30 September 2020 was £0.9m (30 June 2020: £1.1m) and the Group had no debt.
Appointment of Robert (Rob) Smith to the Board of the Company as Group Chief Financial Officer (CFO), effective 30 November 2020. Most recently Rob served in the CFO and CEO roles at Filtronic PLC, an AIM listed electronics designer and manufacturer of advanced filters, antennas and transceivers.
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