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Small Cap Wrap – Crossword Cybersecurity, EKF Diagnostics, Alien Metals and more…


22 Oct 2020



*A corporate client of Hybridan LLP


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Thalassa (LON:THAL) today announced that the Prospectus for the listing of the ordinary shares of its subsidiary Anemoi on the Standard Segment of the Official List and the LSE’s Main Market for listed securities has been approved by the UK Listing Authority  and will be posted today, 19 October 2020, on its website at ‎ company-‎documents/‎. Application for Admission is being made to the UKLA and, subject to the UKLA’s approval, Anemoi expects that Admission will become effective and that unconditional dealings in the Shares will commence at 08.00 a.m. on 26, October 2020 under the ticker “AMOI”.

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

SourceBio International to list on AIM. Offer TBC.  Due 29 Oct. Press reports suggest raise of up to £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.

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

Buffettology Smaller Companies Investment Trust— Buffettology is seeking to raise a minimum of £100m via an initial placing, an offer for subscription and an intermediaries offer on the Main Market. will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4bn across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund.  Due 29 October.

Wheaton precious Metals (TSE:WPM) – Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q4 2020.

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. 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.  

Banquet Buffet

Crossword Cybersecurity* 265p £13.6m (LON:CCS)

The technology commercialisation company focused solely on cyber security and risk,  has been accepted onto the UK Government G-Cloud framework version 12. This enables public sector organisations to procure Rizikon Assurance and Consulting via the Digital Marketplace run by Crown Commercial Services.

Crossword has been accepted for the ‘cloud software’ and ‘cloud support’ categories giving marketplace users access to the Crossword Rizikon Assurance cloud-based supplier assurance and third-party risk management platform, which is already used by a number of public sector organisations including Stevenage, Peterborough and East Hertfordshire Councils to ensure GDPR compliance.

The Digital Marketplace and G-Cloud Framework make it easier for public sector organisations, including agencies and arm’s length bodies to find cloud technology and specialist services for their digital projects.


EKF Diagnostics 64.75p  £295m (LON:EKF)

The point-of-care business, announces that it has received initial orders for PrimeStore MTM COVID-19 sample collection devices from two new customers, the Health Service Executive , Ireland and a national health body in England. These orders will be fulfilled from EKF’s production facilities in Penarth, South Wales and Barleben, Germany. These orders will contribute to the expected strong Q4 performance and the Company intends to provide a further update on trading in early November.


Alien Metals 1.85p  £57m (LON:UFO)

Alien metals has executed an Earn-in Agreement with Capstone Mining Corp (TSX: CS) over its Donovan 2 Copper-Gold project in Mexico. Pursuant to the Agreement, Capstone has the ability to acquire up to an 80% interest in ghts:Donovan 2 by sole funding the Project up to completion of a Prefeasibility Study. 

–  Capstone can earn an initial 65% interest in Donovan 2 through a combination of cash payments and committed expenditure, consisting of:

o  US$290,000 in cash payments to Alien over three years; and  US$3,600,000 in valid exploration expenditure over three years (including US$150,000 being incurred by 31 December 2020). –  Capstone can increase their interest from 65% to 75% by making a further cash payment of US$200,000 and funding the costs associated with a Preliminary Economic Assessment (PEA)

–  Following delivery of the PEA, in the event Alien elects not to contribute pro-rata to its 25% interest, Capstone Mining has the ability to sole-fund the costs of a Prefeasibility Study (PFS) to earn an additional 5% in Donovan 2 (bringing their holding to 80% and Alien 20%) .   Thereafter, each party will fund their pro-rata interest in the Project or dilute according to industry standard mechanisms. In the event Alien dilutes to below 5%, it’s interest will convert to a 2% Royalty 

–  The Transaction with Capstone delivers the potential for immediate advancement of the Donovan 2 Copper-Gold project while allowing Alien to focus exploration activities across its project portfolio 


4D Pharma 107.25p  £141m (LON:DDDD)

The pharmaceutical company leading the development of Live Biotherapeutic Products , and Longevity Acquisition Corporation (NASDAQ: LOAC), a NASDAQ-listed Special Purpose Acquisition Company (“SPAC”), today announce the proposed combination of 4D and Longevity.

· The Merger is priced at an agreed valuation of £1.10 per 4D Ordinary Share, representing an 18 per cent. premium to the £0.932 Closing Price on the Last Practicable Date.

· The Enlarged Group expects to launch a new American Depositary Receipt programme  and will apply to admit its American Depositary Shares for trading on NASDAQ (the ” NASDAQ Listing”), under the ticker symbol ‘LBPS’.

· As a result of the Merger, the Enlarged Group will benefit from the US$14.6 million cash held by Longevity and backstopped by supportive investors, extending the current operational runway into early Q3 2021.

· 4D will also maintain its current listing on AIM, under the ticker symbol ‘DDDD’.


Water Intelligence 39.5p  £76.1m (LON:WATR)

The multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water announced the signing and launch of another formal national contract between its American Leak Detection (ALD) subsidiary and a  leading insurance company in the United States.  Insurance companies value ALD’s delivery of minimally-invasive water leak detection solutions anywhere, anytime across the US given that water is the leading source of homeowners’ claims.


Oakley Capital 255p  £480m (LON:OCI)

Oakley Capital IV2 has agreed to acquire WindStar Medical GmbH from ProSiebenSat.1 majority-owned NuCom Group. WindStar Medical is Germany’s leading over-the-counter  consumer healthcare company. The platform, which is expected to generate over EUR120 million in revenues this year, designs, develops and commercialises branded consumer health and private label products, with a track record of establishing best-in-class medical formulations and brands. OCI’s indirect contribution through its interest in Fund IV will be up to c. £ 43 million, dependent on the capital structure at completion, and  the transaction is expected to be completed by the end of the year.


Shearwater Group  160p  £38m (LON:SWG)

The organisational resilience group, has updated on trading for the six months ended 30 September 2020, ahead of the publication of the Group’s Interim Results in late November. The Group delivered a resilient performance during the period in line with Board expectations. The period saw Shearwater winning new customers and benefitting from strong cash generation, improving the strength of the balance sheet, while delivering on its strategic roadmap.

While COVID-19 has delayed client corporate decision making processes and has resulted in the commencement of some services contracts being deferred into the second half of the financial year, the Group benefits from little exposure to the sectors most impacted by COVID-19 and continues to see good levels of activity from sectors such as financial services and in the telecoms market as it prepares for the introduction of 5G.

Order intake during the period was in line with the prior year and Management plan, with several multi-million pound renewals and/or expansions with existing customers, alongside new client wins. The weighting of orders towards the end of the period provided for a lower level of recognised revenue, but an increased order book of contracted forward revenue as the Group enters the second half of the year.  The Group expects to report H1 FY21 revenue of approximately £11m (H1 FY20: £16.3m) and underlying EBITDA of £1m (H1 FY20: £1m), delivering a considerably improved underlying EBITDA margin in comparison to H1 FY20. Improved efficiencies in the Group’s Software division continue to deliver an underlying EBITDA margin of circa 40%.


Zephyr Energy 0.725p  £2.1m (LON:ZPHR)

The oil and gas company focused on responsible resource development in the Rocky Mountain region, provides an update on its project in the Paradox Basin, Utah, U.S. where the Company is preparing to spud the ‘dual-use’ State 16-2 well before the end of the year. With the funding of the State 16-2 well secured, Zephyr’s team is focused on the operational preparations for the drilling of the well.  New milestones achieved include the following:

 ·A US$600,000 initial tranche of DOE  (Department of Energy) funding has been received by Zephyr.  The funds received, equivalent to 30% of the US$2 million grant total, will be partially utilised to cover near-term costs including bonding, permitting and preliminary ground works at the site of the 16-2 well. 

 ·Zephyr has bolstered its operations team with the appointment of Bruce Houtchens, a highly experienced Drilling Manager who will assist the Company on the State 16-2 project.  

 ·A detailed initial well design is largely completed, which has allowed the Company to commence the tender process for project contracts.  


FRP Advisory Group  111.25p  £266.5m (LON:FRP)

AGM Statement from  the  UK specialist business advisory firm specialising in restructuring “Since announcing our final results on 27 August 2020, the Group has continued to grow and trading in our current financial year (ending 30 April 2021) to date remains in line with expectations. This has been achieved despite the significant reduction in the number of formal insolvency appointments compared with the prior year as a result of the support measures made available by the UK Government in response to COVID-19.


Gaming Realms 23.6p  £67.5m (LON:GMR)

The developer and licensor of mobile focused gaming content has launched its Slingo Originals content with betting and gaming operator, Paddy Power Betfair, a division within Flutter Entertainment plc, the global sports betting, gaming and entertainment provider.


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Derren Nathan

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Alien Metals’ farm-out will accelerate Donovan 2 development says research house

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