Proactive Investors - Run By Investors For Investors

Breakfast News - AIM Breakfast : 21st Century, Empyrean Energy Plc. Evgen Pharma, Green Dragon Gas Ltd., Touchstone Innovations Plc, Landore Resources Ltd., LightwaveRF, Velocity Composites Ltd, Vianet Group

Breakfast News - AIM Breakfast : 21st Century, Empyrean Energy Plc. Evgen Pharma, Green Dragon Gas Ltd., Touchstone Innovations Plc, Landore Resources Ltd., LightwaveRF, Velocity Composites Ltd, Vianet Group

What’s cooking in the IPO kitchen?

AIM

Alpha Financial Markets Consulting— Global provider of specialist consultancy services to the asset and wealth management industry. Due Oct. Revenue of £6.7 million for the year ended 31 March 2011 to £43.6 million for the year ended 31 March 2017. Offer TBA.  Due 11 Oct.

Cora Gold— West African focused gold exploration business, significantly enlarged by the amalgamation of the gold exploration assets in Mali and Senegal of Hummingbird Resources  and Cora Gold's former parent, Kola Gold. Due 9 Oct. Offer raising £3.45m at 1.65p, mkt cap £9.07m

City of London Group (COLG) - Sch 1—RTO of  Milton Homes Limited,  an equity release provider which has a UK residential property portfolio of 586 properties with a market value of approximately £77 million as at 30 June 2017.  Offer TBA. Due 5 Oct

Springfield Properties—Scottish housebuilder. “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” Expected Mid October. Offer TBA.

OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.

Main Market Standard Listing

SolGold—Publication of prospectus regarding transfer from AIM. Due 6 Oct

Glenveagh Properties— Dual Dublin and London IPO. Irish homebuilder with a principal focus on the Greater Dublin Area. The Group will combine an attractive land bank with a Gross Development Value of c.€1.1 billion. Seeking to raise gross proceeds of up to €550 million. Due 10 Oct

Main Market Premium Listing

People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.

ContourGlobal LP—Report on Bloomberg that the thermal energy power generator is considering a London listing.

  
 
 
Breakfast buffet

Velocity Composites (LON:VEL) 84.5p £ 31.42m

“Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, is delighted to announce that it has secured a long term (Life of Contract) agreement (the "Agreement") with an existing UK customer in the UK composites' sector (the "Customer"). The Customer, which is US owned, supplies OEMs and Tier 1 aircraft manufacturers. The Agreement secures existing business in the region of £4.1m per annum which includes an additional £0.9m per annum of new business. The aircraft platforms concerned are the A350, A320 and A330 which are strategically important to Velocity.”

FYDec17E rev £20.4m and £0.5m PBT.

Empyrean Energy (LON:EME) 18.38p £73.32m

“The oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has been informed by Sacgasco Limited (ASX: SGC) ("Sacgasco"), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that Paul Graham Drilling Rig 9 and associated equipment continues to be moved off the Dempsey 1-15 well location to make way for a more appropriately sized and cost effective completions rig to carry out extensive testing. Paul Graham Rig 3 has been selected for the planned completion and testing program.”

The casing perforations for the first reservoir flow test are anticipated to take place towards the end of October 2017.

The adjacent JV owned meter station is being readied for gas flows from the Dempsey well.

Landore Resources (LON:LND) 1.9p £14.93m

Landore has received the final assay results from the summer 2017 drilling campaign at the BAM East Gold Project at Junior Lake.

·    The latest drilling results continue to report wide zones of gold mineralisation within the Inferred area of the BAM East Gold Deposit including drill hole 0417-621 reporting 49 metres (m) at 1.08 grams per tonne gold (g/t.)  

·    Step out drilling along strike from the BAM East Gold Deposit has extended the mineralisation with similar lithology and grades a further 300m to the east to 3500E giving a potential resource continuity of 1.5 kilometres. The BAM East Gold mineralisation remains open along strike to the east, west and down dip.

·    Roscoe Postle Associates Inc. (RPA) of Toronto have commenced the NI 43-101 Technical Report and resource update for the BAM East Gold Deposit incorporating the results from the summer 2017 drilling program with the targeted completion within Q4 2017.    

Green Dragon Gas (LON:GDG) 60p £95.98m

“One of the largest independent companies involved in the production and sale of coal bed methane (CBM) gas in China, is pleased to announce its wholly owned subsidiary Greka Energy (International) B.V (Greka BV) has entered into three Supplementary Agreements with China United Coalbed Methane Corporation (CUCBM), a subsidiary of China National Offshore Oil Corporation (CNOOC), regarding three Production Sharing Contracts (PSC's) in China in the Shanxi, Anhui and Jiangxi regions.”

Highlights:

·     PSC exploration period extended to Q2 2019

·     Minimum work commitment for each PSC identified and confirmed.

FYDec17E rev £32.18m and £1.7m loss.

LightwaveRF (LON:LWRF) 23.75p £9.21m

“The smart home solutions provider, announces a trading update for the financial year ended 30 September 2017.

The Company anticipates that revenue will have more than doubled from the prior year (2016: £1.44m).  Gross margin is also expected to have materially increased (2016: 32.5%). Capital expenditure on both the Company's Generation 2 Apple HomeKit certified product range and further product developments has increased over the year.  Additionally, investments in revenue generating activity as well as administrative expenses have increased.  Even after these increases, the Company expects losses before tax for the year ended 30 September 2017 to be broadly in line with those of the prior year (2016: loss of £0.84m).

The Company's recently announced electrical wholesale distribution agreement with Deta Electrical is now being implemented, and its Generation 2 product range has been released. Distribution through Apple online and in retail stores is expected to follow shortly.” We could see no forecasts.

21st Century Tech (LON:C21) p £m

“The specialist provider of tailored solutions to the transport community, solving complex operational requirements both on and off vehicle, is pleased to announce it has been awarded an important on-vehicle safety systems engineering contract with a major UK bus fleet operator worth just over £1m.

The contract was awarded following a competitive tendering process involving many industry specialists through which 21st Century had to demonstrate its abilities to deliver not only on cost and quality, but also deep technical knowledge to complete what is an intricate rollout programme.

The electronic safety system monitors a number of items within the vehicle and generates audible voice messages to alert the driver to potential hazard conditions, further enhancing safety for drivers, passengers and members of the public.”  Due to complete in 2018.

We could see no forecasts.

Touchstone Innovations (LON:IVO) 111.5p £31.19m

Touchstone has invested a further  £1.4m as part of a £16.5m funding round by Featurespace, the machine learning fraud prevention company. The round as led by Highland Europe.  The round was also supported by Worldpay Group plc, a leading global payment processing company, and Invoke Capital, a technology investment company. The new funding will enable Featurespace to drive revenues of its product platform and to continue to expand internationally.

Following this new investment, Touchstone will hold a 27.9% interest in the Company. The current valuation, including this investment is £15.6 million. The Company has developed a machine learning software platform, ARIC™, that identifies abnormal behaviour in high-volume, real-time customer interactions. Through analysing every individual customer interaction and understanding normal behaviour, Featurespace helps to protect customers from fraud attack, and reduces the costs of lost transactions. The business last year signed a deal with TSYS, one of the largest payments processors in the US. 

Evgen Pharma (LON:EVG) 22p £16.3m

The  “clinical stage drug development company focused on the treatment of cancer and neurological conditions, is pleased to announce the grant of the first European patent for SFX-01, the Company's lead product.

SFX-01 is a synthetic version of the naturally occurring compound sulforaphane, which has been stabilised in an alpha-cyclodextrin lattice. Evgen Pharma is currently conducting two Phase II trials of SFX-01, one in advanced breast cancer and one in a type of stroke called subarachnoid haemorrhage.

The patent granted today, which covers the manufacturing and scale-up of SFX-01, marks the first patent to be granted for SFX-01 in Europe, where a composition of matter patent is also pending. Today's patent grant marks the Company's eighth patent to be granted this year, reflecting the growth in the Company's patent estate.”

Vianet (LON:VNET) 1.9p £14.93m

“The international provider of actionable data and business insight through devices connected to its Internet of Things ("IOT") platform, is pleased to announce the acquisition of Vendman Systems Ltd ("Vendman"), a leading Enterprise Resource Planning ("ERP") and mobile software provider for unattended retailing, for a total consideration (including an earn out), of up to £4.25 million, payable in cash.”

“Vendman is UK market leader and provides management services for over 200,000 machines in the UK and European unattended retail markets and has a track record of growth.   Unaudited accounts for the 12 months ended 31 March 2017 recorded revenues of £1.8 million, over 90% of which were recurring, and an operating profit of £0.27 million with net assets of £0.28 million.”

FYMar18E rev £14.5m, PBT £2.3m and div 5.7p.

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such.

Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, does not constitute “independent investment research” for the purposes of the Financial Conduct Authority rules. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, directors, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the Financial Conduct Authority) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the Financial Conduct Authority).

Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

Neither the whole nor any part of this document may be duplicated in any form or by any means. Neither should this document, or any part thereof, be redistributed or disclosed to anyone without the prior consent of Hybridan LLP.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use