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Small Cap Wrap – Petards Group, Thor Mining, C4X Discovery Holdings and more…


21 Oct 2020


*A corporate client of Hybridan LLP

Dish of the day

Rural Broadband Solutions Plc* joins the AQSE Growth Market, having acquired Secure Web Services Limited, raised GBP2.5m and changed its name from SAPO Plc.

Off the menu

No Leavers Today

What’s cooking in the IPO kitchen?

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 GBP0.001 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). GBP14.5m fundraise. Mkt Cap c.GBP28.3m. Due 3 November

SourceBio International to list on AIM. Offer TBC. Due 29 Oct. Press reports suggest raise of up to GBP35m. 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 GBP250m. 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 GBP179m, announced its intention to raise up to GBP62.5m 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 GBP100m 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 GBP1.4bn across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit(R) 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

Petards Group* 8.5p GBP4.9m (LON:PEG)

The software developer of advanced security and surveillance systems has been awarded a contract to supply Bombardier Transportation with Petards eyeTrain systems.

The new contract, which is for the supply of Petards eyeTrain systems to be fitted to BOMBARDIER ELECTROSTARTM Electrical Multiple Unit (EMU) trains as part of a GBP55m upgrade programme with train owner Porterbrook and train operator Govia Thameslink Railway (GTR). The upgrade will further enhance the ELECTROSTAR’S video and data collection capability with the addition of the Petards eyeTrain Track Debris/Third Rail Cameras throughout the fleet. Activities will commence immediately with the first equipment deliveries starting early 2021 and it is expected that the deliveries will be completed early 2023.

Thor Mining 1.27p GBP18.3m (LON:THR)

Visible gold in stream sediment sample panning, from the third phase of gold geochemical sampling carried out earlier this month at the 100% owned Pilbara Goldfield tenements (E46/1262 and E46/1190) in Western Australia.

13 of the 54 stream sediment sites had visible gold in panning. Visible gold in panning is consistent along the interpreted 13km anomalous gold corridor, trending along the thrust faulted mafic/ultramafic contact.

A 1.5km NE-SW traverse across the anomalous gold corridor was completed, with 14 rock chips collected for assay submission. The central portion of the traverse is dominated by Fe-Mn quartz vein/breccia float.

Subject to the geochemical results and the modelling of the recently flown airborne magnetic survey, a soil sampling program is proposed over priority targets within the anomalous 13km gold trend to delineate coherent gold trends prior to drill testing.

C4X Discovery Holdings 15.5p GBP18.5m (LON:C4XD)

The Drug Discovery company, today announces a proposed conditional placing to raise approximately GBP15.0 million, made up of: . EIS/VCT Placing Shares to be offered to VCTs or those investors seeking to claim EIS relief in relation to their investment; and . Units, each comprising one General Placing Share and one Warrant, to be offered to those investors who are neither VCTs nor seeking EIS relief.

The 14p The Issue Price for each Relevant Security represents a discount of approximately 11.1 per cent. to the closing middle market price of 15.75 pence per existing ordinary share on 20 October 2020, being the last practicable date prior to the date of this Announcement. The net proceeds of the Placing (excluding any proceeds arising from exercise of the Warrants) will be used to strengthen the Company’s balance sheet as partnering discussions and strategic collaborations progress, to advance the core investment portfolio to near-term inflexion points and to continue to apply C4XD’s technologies to validate the next generation of commercially-attractive targets and programmes. The net proceeds of the Placing are expected to provide the Company with at least twelve months working capital.

Equatorial Palm Oil SUSPENDED (LON:PAL)

Proposed Reverse Takeover Transaction and Suspension of Trading

Signing of conditional Acquisition Agreement to acquire up to 100% of Capital Metals Limited. the Rule 15 cash shell has reached conditional agreement with parties holding a majority of the shares of Capital Metals Limited , a company developing a mineral sands project in Sri Lanka, to acquire their shares in CML in exchange for ordinary shares in the Company.

Capital Metals Limited was incorporated in 2015 to acquire licenses prospective for mineral sands in Sri Lanka (“Project”). Since acquiring the Project, CML has developed it by undertaking drilling and exploration, establishing a JORC Resource and completing detailed metallurgical test work to establish the quality of the mineral sands’ products in the Project. CML has spent more than GBP5.5m on the Project and has built an international shareholder base.

The Project has a JORC resource estimate of 17.2Mt at 17.6% Total Heavy Minerals (“THM”) including ilmenite, zircon, rutile & garnet and 84% of the Resource is Measured & Indicated. The JORC resource estimate indicates that the THM of the Project is amongst the highest grade of mineral sands projects globally and the metallurgical work provides the Project with the information for offtake discussions. Also, there is scope to increase the Resource given the current Resource only measures the first 3m from surface. Key infrastructure is already in place including facilities at Oluvil port, located a short distance from the Project, which include grid power, scheme water, sealed roads and up to 10,000 tonnes shipping capacity.

D4t4 Solutions 191.5p GBP77m (LON:D4t4)

The data solutions provider, provided a trading update for the six months to 30 September 2020.

Financial highlights

. Group revenue and adjusted profit for the first half in line with management expectations

. Half year revenue of GBP5.09m (H1 2019-20: GBP8.84m) with a number of significant new contracts expected to close in the half still pending, though expected to be awarded in H2, due largely to contracts in current negotiation taking slightly longer to close given the current environment

. 12 monthly recurring revenue, as a percentage of total revenue, increased to over 55% (March 2020: 45.2%)

. Strong interim net cash position of GBP12.08m

Zytronic 110p GBP17.65m (LON:ZYT)

Trading update: “At the time of our Interims in early May we explained that, due to the effects of the COVID-19 pandemic, anything except short term forecasts were challenging, and the prospects of a positive return during this financial year would be remote. Sales for the year to 30 September 2020 have reduced to GBP12.7m (2019: GBP20.7m) and the business has remained profitable before exceptional items relating to restructuring and furlough costs. EBITDA for the year ended 30 September 2020 is positive.

The Group’s cash position continues to be strong at GBP14.0m (2019: GBP13.1m) and has increased by GBP1.6m since 31 March 2020, benefitting from a reduction in working capital. Whilst we are still facing uncertainty regarding levels of future business, particularly from the Gaming and Financial sectors, Zytronic is in a strong financial position. We expect to update shareholders and report our full year’s results in early December.” Zytronic is a world-renowned developer and manufacturer of a unique range of internationally award winning optically transparent interactive touch sensor overlay products for use with electronic displays in industrial, self-service and public access equipment.

Cohort 585p GBP239.61m (LON:CHRT)

The independent technology group, announced that its subsidiary Chess Dynamics Ltd has been awarded three new contracts with UK and European customers, with a combined value of approximately GBP16 million. The three contracts cover its Naval, Land and Custom business areas. Initial work will commence in the Group’s current financial year, and deliveries will take place from 2021 through to 2028.

Tremor 210.5p GBP280m (LON:TRMR)

The specialist in video advertising technologies, updated on trading in the current financial year ended 31 December 2020. As disclosed in Tremor’s interim results published on 22 September, the Company experienced strong demand across its key growth engines in Q3 2020. Management are pleased to confirm that this strong trading has continued to gather further momentum with the Company’s key growth engines – Connected TV (‘CTV’), Self-service and Private Marketplaces – attracting significant client interest. Therefore, the Company now expects trading for the full year ended 31 December 2020 to be ahead of market expectations, with revenues and Adjusted EBITDA now expected to be in the range of $340-360 million and $30-36 million respectively.

Spectra Systems 189p GBP85m (LON:SPSY)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, has executed a comprehensive services contract with a central bank for the development, manufacture and servicing of a sensor system for this customer. The contract includes $1.9MM to initiate Phase 1 development work and has three major additional phases which include a $5.6MM Phase 2 development through 2023, as much as $34MM for the delivery of an as yet unspecified number of sensors, and a service component worth approximately $7.5MM.

IDOX 50.5p GBP224m (LON:IDOX)

The supplier of specialist information management software and solutions to the public and asset-intensive sectors, has announced the appointment of Matthew Salter as Head of Professional Services, a senior management, non-Board role. This newly created role will lead transformation and strategic change across the Group’s recently consolidated professional services teams and support our colleagues to continue to provide excellence within our customer services.

With a wealth of knowledge of the sector, Matthew joins Idox having spent the past four years as Delivery Director at Capita Group plc, where he helped shape and drive supporting services for key products. With proven expertise in cloud delivery and business growth, having worked with Civica, both in the UK and Australia, coupled with previous leadership and senior roles at Northgate, Matthew’s industry experience will further strengthen the professional services teams within Idox Software.

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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