Small Cap Wrap – Tertiary Minerals, Serica Energy, Intuitive Investments and more…

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21 Jan 2021

@HybridanLLP

*A corporate client of Hybridan LLP

 

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Off the menu

Tiziana Life Sciences has moved from AIM to the Main Market

Octagonal has cancelled its AIM listing

 

What’s cooking in the IPO kitchen?

NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine  and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority  for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA

Foresight Group , the award-winning infrastructure and private equity investment manager  to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA.

Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021.  The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada.

VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments announced it intends to launch an IPO of shares on the Official List (Premium) of the Main Market of the London Stock Exchange.  Due by Early Feb.

 

Banquet Buffet

Tertiary Minerals 0.4p  £3.33m (LON:TYM)

Tertiary has entered into an agreement to sell data rights and intellectual property over the Kalkkinen Platinum Group Metal Prospect in Finland to unlisted explorer Element-46 Ltd (E46). Tertiary carried out reconnaissance exploration at Kalkkinen in 2004-5 which resulted in the discovery of a zone of outcropping massive sulphide mineralisation where chip sampling returned results which include 2.3% copper with 3.4 g/t palladium-platinum-gold over 0.75m and 0.3% copper with 3.2 g/t palladium-platinum-gold over 1m.

Mineralisation at Kalkkinen occurs as massive sulphides and interstitial sulphides in pyroxenite. Chalcopyrite and several small grains of gold were found associated with michenerite (a palladium-bismuth telluride) and other bismuth and lead tellurides were also identified.

E46 has now applied for a licence reservation over the Kalkkinen prospect and as a result of its agreement with E46 Tertiary now holds a 2% Net Smelter Return (NSR) Royalty over the area of the licence reservation. E46 may purchase the NSR Royalty interest and all other rights granted to the Company in exchange for US$1,000,000 at any time before commencing construction of a mine on the area of the licence reservation. In consideration of the transfer of data to E46, Tertiary will be issued with 200,000 ordinary shares in E46 at a deemed issue price of 12 pence per share upon the grant of the licence reservation.

 

Serica Energy 127.2p  £341m (LON:SQZ)

Serica has received a renewed License and secondary sanctions assurance from the US Office of Foreign Assets Control (“OFAC”) relating to the North Sea Rhum field, in which the company has a 50% interest. The License and assurance will allow certain U.S. and U.S.-owned or controlled entities and also non-U.S. entities to continue providing goods, services and support to Rhum beyond 28 February 2021; when the current License was due to expire. This will enable operations and production from the Rhum field to continue unaffected.

The previous OFAC License was valid for a period of 16 months. In this case OFAC has issued the License for a period up to 31 January 2023. The License may be renewed on application by Serica assuming the conditions continue to be met. The RNS also includes a wider operations update.

 

Intuitive Investments  23.75p  £9.6m (LON:IIG)

The closed-end investment company focussed on the life sciences sector, announced its investment of US$1 million by way of unsecured convertible loan notes in BioQ Pharma Incorporated .

BioQ is a well-established, commercial-stage, medical device and pharmaceutical company, addressing the infusible drugs market. BioQ’s proprietary InveniousTM platform comprises a “connect-and-go” drug-device system combination, which can be utilised to improve the delivery of infusible medicines.  BioQ’s platform includes a bespoke unit-dose delivery solution for infusible drugs, whereby a diluent delivery system and administration line are combined in one self-contained, ready-to-use presentation. The key benefits of the platform include reduced cost and complexity compared to current infusion techniques. Further information on BioQ can be found at the company’s website. The terms of the CLN include a coupon of 10% that is accrued and paid on conversion or repayment, warrant coverage, and provisions for conversion into new equity at the time of a qualifying future fundraise (at a 35 per cent. discount to the price of such fundraise) or at maturity.

 

Evgen Pharma 11.125p  £15.3m (LON:EVG)

The collaboration with a prominent European university has generated highly positive data for SFX-01 in pre-clinical models of glioma and glioblastoma.  

Glioma is the most common form of brain tumour affecting around 5 per 100,000 people. The more severe, grade IV classification, glioblastoma, is a very serious form of brain tumour representing 45% of all cases and has a poor prognosis with median survival of around 14 months. The five-year survival of the severe grades is 5%.

 The data generated for SFX-01 in standard pre-clinical models and orthotopic models (where glioma cells are implanted in brain tissue representing a more disease-relevant model) show tumour shrinkage and significantly extended survival times. SFX-01 was also found to potentiate (i.e. substantially increase) the therapeutic effect of radiotherapy in these models. The therapeutic options for glioma are limited to surgery, radiotherapy and the one drug widely available, temozolomide. There is a clear unmet need for more treatments for use in conjunction with the current standard of care.

 

Eve Sleep 5p  £13.63m (LON:EVE)

The direct to consumer sleep wellness brand operating in the UK, Ireland  and France announces a trading update for the full year ended 31 December 2020.   18% sales growth in H2, exceeded twice raised expectations for 2020 .

Revenue increased 6% to £25.2m (2019: £23.8m), driven by 18% growth in H2

Record trading over black Friday period and the first week of the Boxing day sales

EBITDA losses cut by 81% to £2.0m (2019: EBITDA loss of £10.7m)

Closing net cash at 31 December 2020 of £8.3m (2019: £8m), bolstered by £0.3m of tax payments deferred until after the year end

Trading in the first few weeks of the year has started well and is following the same positive trends seen in recent months. The availability of raw materials and component supply remains an industry issue and a potential limiting factor on near term growth. At this time the Company has not experienced any material cost/duty increases as a direct result of Brexit, though there has been some slowing of the pace of deliveries to Ireland and Northern Ireland resulting from courier related issues. eve will continue to closely monitor the situation but does not expect any material full year impact at this time.

 

ECSC Group 82.5p  £8.3m (LON:ECSC)

The  provider of cyber security services updated for the twelve months ended 31 December 2020.

Highlights

· Adjusted EBITDA  profit in excess of £0.4m (2019: break-even)

· Managed Detection & Response (MDR) division recurring revenue growth of 22% to £2.42m (2019: £1.98m)

· Group revenue of £5.7m (2019: £5.9m)

· 90 new Assurance division clients (2019: 118)

· Cash of £1.12m at period end (31 December 2019: £0.35m), including £0.42m of COVID-19 related medium-term government support relating to VAT and PAYE deferral.  The Group’s bank facility of £0.5m remains unutilised.

 

Robinson 165p  £27.4m (LON:RBN)

The custom manufacturer of plastic and paperboard packaging issued a trading statement for the year ended 31 December 2020.

Revenues are expected to be £37m for the year, which represents a 6% increase on 2019. The Directors anticipate adjusted and reported profit before tax for 2020 to be ahead of current market expectations, and ahead of 2019.

During the year the Company has invested £4.6m in new additional and replacement production equipment and in the refurbishment of a manufacturing building in its UK business. These investments are consistent with our commitment to maintain a competitive manufacturing infrastructure that supports our intention to compete and win in our markets through sustainable supply, innovation capabilities, excellent product quality and cost-efficient operations. This investment in the business was funded by strong cash generation from operations resulting in net debt at 31 December 2020 of £6.6m (2019: £6.9m).

 

Avingtrans 283p  £90.3m (LON:AVG)

Avingtrans  which designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy and medical sectors  announced that its wholly owned subsidiary, Booth Industries (Booth), has secured a contract extension worth £2.9 million with a UK Government agency.

The extension is for the supply of doors designed, developed and tested over several decade’s by Booth and demonstrates the businesses unique capability to supply high-integrity assured solutions for specialised applications. Work will begin immediately, with the doors being delivered over the next 18 months.

 

Image Scan 2.9p  £4m (LON:IGE)

The specialists in the field of X-ray imaging for the security and industrial inspection markets, announce the award of a contract to supply three portable X-ray scanning systems to the Royal Air Force.

The systems to be supplied are the ThreatScan®-LSC, a combination package including a large format ThreatScan®-LS1 panel, a compact ThreatScan®-LS3 panel with back-pack, a tablet PC imaging station and the I-Gen generator. This combination system provides great deployment flexibility for different threat scenarios. The award is the Company’s first contract with the RAF.

 

Chamberlin  SUSPENDED (LON:CMH)

The specialist castings and engineering group, announced on 16 December 2020 BorgWarner‘s intention to cancel all contracts with effect from 22 January 2021.  However the Company advises that it has now received revised orders from BorgWarner through to 22 March 2021.  

The Board is implementing further measures to reduce costs and is exploring options to strengthen the balance sheet, including investigating the possibility of new equity capital and alternative measures to ensure the Company’s future. A further announcement will be made in due course.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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