Small Cap Wrap – Zephyr Energy, Corero Network Security, Quixant and more…

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10 Dec 2020

@HybridanLLP

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Cancellation of Tri-Star Resources on AIM

What’s cooking in the IPO kitchen?

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 14 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

Zephyr Energy 0.75p  £5.22m (LON:ZPHR)

The Rocky Mountain oil and gas company focused on responsible resource development, updated on its project in the Paradox Basin, Utah, U.S. where it is in the final stages of preparation ahead of the spud of its ‘dual-use’ State 16-2 well.

The Company initially targeted a spud date by 31 December – and it remains firmly on track to deliver this key corporate objective. Over the last two months, the Company made significant progress on important milestones to ensure that it can safely deliver a successful well on time and within budget.  During this period, the Company:

· Assembled a project drilling team with substantial Paradox Basin drilling expertise;  Secured all permits and satisfied all pre-operational conditions; Completed remediation works on the road leading to the State 16-2 site; Finished all other site preparations, including the completion of work to responsibly plug and permanently abandon an existing inactive well on the pad; Awarded the rig contract to Cyclone Drilling Inc. (“Cyclone”), a leading provider of purpose-built rigs in the Rocky Mountain region.  The specific rig under contract is Cyclone Rig #34; and, Received the first $600,000 tranche of grant funds allocated by the U.S Department of Energy and its National Energy Technology Laboratory  for the drilling of the well.

 

Corero Network Security 9.5p  £47m (LON:CNS)

The provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) defence solutions , announces that it continues to make further progress towards its strategic goals of international expansion, development of its strategic and business partnerships and further penetration of Tier 1 and major accounts. This positive progression is reflected in the associated order intake of more than $3 million in the first two months of the final quarter of 2020. Revenues associated with these orders will be recognised over the course of the lifetime of each of the contracts.

 

Quixant 149p  £99m (LON:QXT)

The provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries, provides the following update on trading for the current financial year, ending 31 December 2020.  Since the release of the Group’s interim results on 30 September 2020, trading in its core gaming market has exceeded expectations. As a result, the Group now expects to report full year adjusted profit before tax of at least $1m on revenue of at least $61m.

 

Active Energy 0.575p  £8.9m (LON:AEG)

The international biomass based renewable energy and forestry management business has been awarded a new U.S. patent for its CoalSwitch™ process and the beneficiation of biomass. The patent, number 10,858,607, was awarded on 8 December 2020 and will ensure Active Energy holds the legal rights to exclude any other company from producing, selling or using the claimed CoalSwitch™ process for over 17 years. The proprietary CoalSwitch™ process includes subjecting steam-exploded biomass to a second washing step to remove additional salts and light volatile compounds derived from the biomass.

This new patent combines with the U.S. process patent, number 10,647,935, which was awarded for AEG’s PeatSwitch™ technology on 12 May 2020. AEG’s PeatSwitch™ patent gives AEG the exclusive rights over the process of producing an engineered soil from raw biomass in AEG’s unique reactor. 

The Company continues to file further patent applications in the US and will follow each of these with additional filings in Canada, Malaysia, Thailand and Europe.

 

NetScientific 49.5p  £7.38m (LON:NSCI)

The life sciences, technology, investment and commercialisation company, announces that its portfolio company ProAxsis Limited, has been awarded a high impact Innovate UK grant as part of the recent “UKRI Ideas to Address COVID-19” competition.  The company will immediately initiate the £390,000 project, which will be co-funded by Innovate UK, to develop novel protease biomarkers to identify high-risk patients.

ProAxsis is established at the forefront of respiratory diagnostics, with clients in the Pharma and clinical trials markets. Its R&D pipeline is reinforcing this position by expanding the applicability of its technology – including around the use of its biomarkers platform to help in the fight against COVID-19.

 

Reabold Resources 0.53p  £37.6m (LON:RBD)

RBD announced results of the West Newton B drilling operations, which have exceeded pre-drill expectations, further suggesting that the West Newton discovery would be the largest UK onshore discovery since 1973.  Drilling operations have been completed safely.

B-1Z well encountered a gross 62 metre hydrocarbon bearing reservoir interval in the primary Kirkham Abbey target formation. Overall Kirkham Abbey estimated hydrocarbon column is at least 118 metres, significantly exceeding previous observations. The oil-water contact is yet to be encountered at West Newton. Enhanced porosities of over 14 per cent. observed on wireline logs, comparing favourably to previous A-2 well.  The Kirkham Abbey formation is materially de-risked with evidence of good reservoir continuity. West Newton B-1Z is approximately 2.5 kilometres from the A-1 and A-2 discoveries. Production casing is being run in preparation for well testing.

 

Induction Healthcare 78p  £32.8m (LON:INHC)

The healthcare technology company that helps achieve digital efficiencies for hospitals, their front-line clinicians and patients, announces results for the six months ended 30 September 2020. 

· First full year of revenue · Strong momentum in sales and Annual Recurring Revenue (ARR) run rate across all its subscription-based software products · Revenues of £0.6m, includes first revenue generated by Induction Switch (as previously indicated) · Robust balance sheet, with net cash of £5.0 million; prudent management of costs and cashflow · Deferred revenue at £0.6m (H1 2020: nil)

· Strong pipeline of orders with multi-year contracts· Healthy acquisition pipeline targeting new and complementary products and geographies, supporting the strategy to add solutions that deliver value to patients, doctors and other clinicians · Growth of registered users and user engagement across Induction’s product suite, and progress with key frameworks and collaborations such as NHSX Clinical Communication Framework and Cerner creates a strong foundation for continued growth in recurring revenue in the year ahead.

 

UK Oil & Gas 0.1425p  £17.8m (LON:UKOG)

Together with its 50-50 Turkish joint venture partner, Aladdin Middle East (AME), the Company has applied to the Turkish authorities for three further exploration licences in south east Turkey. The application area covers four c. 150 km² blocks lying to the south and south east of the Company’s 305 km² Basur-Resan Licence (see RNS releases of July 23 and October 13, 2020). This application is on a ground floor basis with UKOG responsible solely for its 50% share of any future costs.

The four blocks straddle multiple large identified undrilled surface geological features (i.e. surface anticlines), each geologically similar to the Company’s Basur-Resan oil appraisal project, AME’s producing East Sadak oil field and the Kurdistan Region of Iraq’s oil fields to the south. To date, the application blocks have been scantily explored with almost no seismic coverage and few wells.

 

Thor Mining 0.975p  £14.8m (LON:THR)

Identification of a number of significant magnetic targets following the interpretation, of the Airborne magnetics survey flown in October 2020, at the 100% owned Ragged Range Project in Western Australia.

· Sterling Prospect, identified as the principle initial target, is approximately five kilometres long & between 300 and 500 metres in width; Anomalous stream sediment gold assays (up to 2.2g/t Au) clearly related to the structural contact of the Euro Basalt and younger Dalton Suite, at the Sterling Prospect. Gold present in streams confirms that gold mineralisation occurs very close to surface. (ASX/AIM: THR 1 December 2020); Three isolated, strong magnetic anomalies,  highlighted on the geological maps with links below, have no simple geological explanation in the magnetics. These are priority targets for follow-up;

The Ragged Range area is structurally complex with many phases of folding and shortening of the prospective Euro Basalt.  This leads to the creation of space, significantly increasing the potential to host gold mineralisation.

 

GYG  69.5p  £32.4m (LON:GYG)

The market leading superyacht painting, supply and maintenance company, announced the signing of a Refit contract for a 100+ metre yacht.  

The work is scheduled to commence in Europe in 2022, further improving the forward visibility of the Order Book, which remains at record levels, including eight New Build projects for delivery in the next two years. This is another significant turnkey project for the Group, utilising the Refit services including bespoke scaffolding, containment, hardware removal, caulking and complete repainting. It follows the recently announced signing of a 115+ metre yacht in Germany which is due to complete in H121. 

“This contract highlights our increasing average order value as a result of our market leading position in the premium 70m+ yacht market, as well as the turnkey range of global services we are able deploy at scale on vessels which are increasingly complex in nature.”

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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