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Small Cap Wrap – Melody VR, City of London Group, Kropz and more…

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9 Dec 2020

@HybridanLLP

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Intuitive Investments Group, a closed-end investment company focussed on the life sciences sector, announces its intention to seek admission the AIM market of the London Stock Exchange plc, and a conditional placing , at a price of 20 pence per share, to raise gross proceeds of £7.5 million . · The net proceeds of the Placing will be used by the Company:-  to invest in fast growing and / or high potential life sciences businesses, based predominantly in the UK, wider Europe and the US, chosen from an identified pipeline of investment opportunities –  investments will be focused on diagnostics and healthcare, medical devices, tools and technologies and bio-therapeutics and pharmaceuticals · The market capitalisation of the Company is expected to be circa £7.8 million on Admission. Due 14 Dec.

Schroder BSC Social Impact Trust plc  targeting a £100m raise.   The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments.  Due 22 Dec. Official List (premium)

Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test.   Offer TBC. Due early Dec.

Downing Renewables & Infrastructure Trust intends to raise up to £200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December

Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec

VH Global Sustainable Energy Opportunities plc, a closed-ended investment company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering  of shares on the Official List (Premium) of the Financial Conduct Authority and Main Market of the London Stock Exchange.  Due by Early Feb 2021

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). Raising £6m. Mkt cap c.£33.6m. Due 11 December

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem).  FY20 gross profit of £79.2m (+24.5% against FY19) and adjusted operating profit of £31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

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 ).    Due  14 December.

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, 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. 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.   Timing TBC

Banquet Buffet

Petards Group* 9p  £5.2m (LON:PEG)

The  software developer of advanced security and surveillance systems, announces that its wholly owned subsidiary QRO Solutions (QRO) has been awarded a contract worth £823,000 to provide Northamptonshire Police with an enhanced and extended fixed ANPR camera infrastructure on many strategic arterial and rural roads within the County.

Delivery and installation will commence immediately with the bulk of the contract being completed in the first half of 2021. Further  information on Northamptonshire Police and the project can be found on: 

https://www.northants.police.uk/news/northants/news/news/2020/december-20/northamptonshire-anpr-network-more-than–doubles-in-size/

 

Time Finance 23.25p  £21m (LON:TIME)

The specialist finance provider, announced that the Company’s trading performance and expected financial results for the first half of the current financial year, which ended on 30 November 2020. The results are in line with management’s internal budget expectations and continue to strengthen month on month as the Group gradually returns to pre COVID-19 trading levels. 

Since the low-point of trading activity caused by the impact of COVID-19 in the period April to June 2020, the Group has experienced steadily increasing new business origination levels, lending book and revenue growth and profit generation in each of the subsequent months of trading.   The net lending book,  is now steadily growing and is expected to stand in excess of £105m as at 30 November 2020 having fallen to less than £95m in June 2020 and from approximately £125m as at 30 November 2019. The amount of the lending book in arrears has been reduced by more than £6.5m during the period while the aggregate value of deals in some form of forbearance has also been reduced from over £25m at its peak to under £3m as at 30 November 2020. Furthermore, part of the reduction in the lending book has occurred as a result of a number of borrowers settling early through accessing alternative government-backed funding.

The Company’s 2020/21 interim results are expected to report unaudited Group revenues for H1 2020/21 of not less than £11.6m (H2 2019/20: £13.6m and H1 2019/20: £15.6m). However, as trading activity and the value of the lending book have increased month on month over the period, the expected unaudited profit before tax will not be less than £1.2m compared to a loss of £1.0m in the second half of 2019/20 (H1 2019/20: profit of £3.0m).  

 

Mobile Tornado Group  3.65p  £13.9m (LON:MBT)

The provider of instant communication mobile solutions to the enterprise market, announces that it has signed a Partnership Agreement with global LTE telecoms solutions provider, Telrad Networks, to offer an integrated, end-to-end solution for Push-to-Talk (PTT) communication over broadband. By leveraging the Internet to provide robust communication anywhere an end-user has LTE coverage, the new joint PTT solution will enable customers to use a single mobile device for both cellular and PTT communication in both one-to-one and group environments.

 

Midatech Pharma 25.5p  £16.1m (LON:MTPH)

The  R&D biotechnology company focused on improving the biodelivery and biodistribution of medicines, noted that its research effort to find novel treatments for Diffuse Intrinsic Pontine Glioma (DIPG) was recognised during a debate at Westminster Hall in the UK Parliament on 7 December 2020.

The debate was in response to an e-petition by a member of the public.  Fifteen members of parliament recounted heart-breaking cases of children in their constituencies who had also succumbed to DIPG and the devastating impact this diagnosis and terminal prognosis had on their families.  Other common themes were the lack of progress at finding new treatments over the past 50 years and a need to target government funding to incentivise and intensify the research effort. 

Derek Thomas MP, Chair of the All Party Parliamentary Group on Brain Cancer, highlighted Midatech as a UK company working in DIPG, it’s clinical trials in San Francisco and New York and the recent announcement of encouraging Phase I trial results of its direct-to-tumour drug, MTX110. 

 

SimplyBiz 194p  £188m (LON:SBIZ)

Trading update from the independent provider of compliance, technology and business services to financial advisers and financial institutions in the UK.  The Board reaffirms, and is confident, that its adjusted EPS will be no less than 11.0p.  The Board is confident that Defaqto will deliver double-digit EBITDA growth in 2020. The Board announces its intention to propose a final dividend for FY20 of 2.0p per share.

SimplyBiz is looking to deliver organic growth from its core business over the next two to three years in the following ranges: 

• Revenue growth – between 5% – 7% per annum.  EBITDA margin – between 35% – 40%.  Cash flow conversion* – between 70% – 80%.  SaaS and subscription revenues – between 70% – 80% of revenues

 

ThinkSmart 56p  £59.65m (LON:TSL)

The specialist digital payments platform business, confirmed that the return of capital of 4.575 cents per share, approved by shareholders at the 2020 AGM, together with the special dividend of 1.525 cents per share, have today been paid to shareholders.

The Group also notes the trading update issued by Afterpay Ltd on 2 December 2020 where it reported that its UK division, Clearpay, delivered c. $200 million of underlying sales in November 2020, in what was a record month for Afterpay. This represented c10% of Afterpay’s global underlying sales for the month, up from 7% in the 3 months to 30 September 2020. The Directors believe that the continued growth and trading momentum of Afterpay, and the continued increase in the proportion of Afterpay’s global underlying sales delivered by Clearpay UK, is beneficial to the value of ThinkSmart’s 10% shareholding in Clearpay UK.

 

Kropz 4.25p  £21m (LON:KRPZ)

Kropz has made its third quarterly draw down request under the equity facility with Kropz’s major shareholder, the ARC Fund. The equity facility is for an amount of US$ 40 million (which cannot exceed ZAR 680 million) as announced on 13 May 2020 .  

The third draw down is for US$ 5 million which will be paid by way of issue of 63,703,704 new ordinary shares at the issue price of 6.75 pence per ordinary share to the ARC Fund on 10 December 2020. The next draw down of the Equity Facility is expected to be made on or about 10 March 2021 and quarterly thereafter, in line with the terms of the Equity Facility.

The proceeds from the drawn down will be applied to the continuing workstreams at the Elandsfontein Phosphate Project. The Company will release a full operational update on progress in January 2021. Kropz is an emerging African phosphate explorer and developer, with an advanced stage phosphate project in South Africa and a phosphate project in the Republic of Congo.

 

City of London Group 88p  £71m (LON:CIN)

Recognise Bank, the subsidiary of City of London Group PLC, and new SME bank, has today launched its website, which can be found at www.recognisebank.co.uk .

Recognise is a relationship led, digitally enabled bank, focused on delivering banking services to the SME sector, which has often been overlooked by traditional banks. Recognise’s services are delivered through dedicated relationship managers who have a proven record in delivering banking services to SMEs across the UK through its London, Midlands and Manchester business hubs.

Existing customers will be able to access Recognise’s cutting edge lending portal through the new website, which will enable them to view up to date transactional information on their loans. The website also hosts the latest information on Recognise’s products and contains insights on the SME sector from its experienced management team.

 

Melody VR 3.525p  £72.7m (LON:MVR)

Further to the announcement of 25 August 2020 of the conditional acquisition of Rhapsody International Inc., a Delaware corporation trading as Napster, MelodyVR Group, one of the leading creators of virtual reality content, announces that yesterday it posted to Shareholders the Admission Document, including a notice of General Meeting, which is now available on the Company’s website.

The Company also announces that it has conditionally raised $10 million by way of the Subscription and entered into a binding commitment letter setting out the terms in respect of a $25 million delayed draw term loan facility from Davis Partnership, LP.

In the year to 31 December 2019 Napster reported revenues of $112.6m and made a profit before interest and tax of $1.8m. MVR believes that the addition of Napster’s music library, comprising in excess of 80 million music tracks, to its own platform of VR music performances and live streamed events will provide a compelling and differentiated offering to music fans around the world. 

 

Trackwise Designs 225p  £49.76m (LON:TWD)

The provider of specialist products using printed circuit technology, announced that the Open Offer, as announced on 20 November 2020, has closed oversubscribed. The Company has decided to accept applications under the Open Offer for £1.625 million (previously £1.0 million) in order to provide a greater opportunity for participation in the Fundraising by its shareholders, and in so doing, further strengthening the Company’s balance sheet.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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