Small Cap Wrap – Physiomics, Renold, Galileo Resources and more…

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.

16 October 2020

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What’s cooking in the IPO kitchen?

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.

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.

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 (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 21 October.

, 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.

() – 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

, 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

Physiomics* 6.85p  £6.7m ()

The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions has been awarded further contracts of undisclosed value for projects with existing clients Bicycle Therapeutics plc and Merck KGaA.

The project with Bicycle is the eighth signed with this high-profile UK biotech company, spanning four different assets within its pipeline, and involves population pharmacokinetic analysis of clinical data from one of these assets.  The project with Merck is an extension of one of the projects previously announced for calendar year 2020 in what is now the third year of work under the Master Services Agreement announced in November 2017. 

It is anticipated that both projects will be completed over the next four months.


Arcontech 201p  £26.7m ()

The provider of products and services for real-time financial market data processing and trading, announced the signing of a new agreement with a longstanding Tier 1 bank client. The agreement relates to the migration of the Client from Windows to Linux and to upgrade its systems to Arcontech’s new graphical user interface  and monitoring functionality for the client’s MVCS (Multi-Vendor Contribution System). Together with the new business win to contribute to Factset announced on 2 October 2020, the additional recurring revenue will be approximately £100,000 per annum.


Renold  11.7p  £26.4m ()

Renold, a leading international supplier of industrial chains and related power transmission products, today issued a period end trading update covering the six months ended 30 September 2020 ahead of announcing interim results on 11 November 2020. 

Renold delivered a resilient performance in the first half despite its markets being significantly impacted by the Covid-19 pandemic. The business remained profitable throughout the period and achieved a significant reduction in net debt of £10.2m to £26.4m (FY 2019/20: £36.6m), despite sales revenue down 17% on the prior year, at £82m.


Galileo Resources  0.75p  £6m ()

The exploration and development mining company, , further to its announcement on 15 September 2020, announced the completion on 15 October 2020  of the acquisition of 100% of Africibum Co Pty Ltd  and its interests in the North East Kalahari Copper Belt project in Botswana. Colin Bird, Executive Chairman and CEO of Galileo, commented:

“I am very pleased that we have completed the acquisition of Africibum whose licences lie in an area of high prospectivity in the Kalahari Copper Belt.  The licence area is 15 km from the Boseto Copper Project and generally on trend with other known discoveries in the area.  With drill holes assaying >1% Cu the project has already advanced beyond the conceptual stage, and it is the intention to test for an extension of the open strike on one licence and update the geophysics on another licence.

The Acquisition completes the Company’s Kalahari Copper Belt portfolio and we look forward to exploration in our expanded footprint in the Belt which is part of the Northwest Botswana Rift which the USGS in 2015 reported as the world’s most prospective area for yet-to-be discovered sediment hosted copper deposits” .


UK Oil & Gas 0.15p  £18.7m ()

Following Surrey County Council’s (“SCC”) 3rd August decision to redetermine the Company’s Loxley gas appraisal planning application, SCC have now confirmed to UKOG that the rerun is scheduled for 27th November 2020.

This unprecedented rerun decision was taken by SCC following receipt of external advice regarding the Company’s and over 100 other formal complaints questioning the lawfulness of SCC’s 29th June planning committee meeting (“PCM”). During this PCM the members voted by 6 to 5 against SCC’s planning officer’s recommendation to consent to UKOG’s development.

As per the Company’s 21st October announcement, an Xodus report estimates that the Company’s 100% held PEDL234 licence contains significant calculated mean and high case recoverable gas volumes of 34 billion cubic feet (“bcf”) and 54 bcf respectively, placing Loxley as the second largest gas accumulation ever discovered and flow tested in the UK onshore. Xodus calculate that approximately 78% of the overall Loxley gas accumulation lies within PEDL234.


URU Metals 315p  £4.7m ()

Progress in its environmental impact assessment as part of the application for a Mining Right for the Zebediela Project to mine the NI43-101 compliant indicated and inferred resource of over 9 billion pounds of nickel, which was ranked in 2014 as one of the top ten Class 1 nickel sulphide resources globally (Mudd, & Jowitt, (2014). A detailed assessment of global nickel resource trends and endowments. Economic Geology, 109(7), 1813-1841).

The Company submitted an application to convert its existing Prospecting Rights to a Mining Right to the South African Department of Mineral Resources (DMRE) as announced on the 30 August 2019. As part of the application, the Company is required to conduct an environmental impact assessment to understand the impact of an open pit operation to mine the nickel resource. The environmental impact assessment consists of various specialist studies which are currently underway.

Should a mining right be granted, the Company will secure the rights to mine and explore for, for the next 30 years, the following commodities: nickel, chrome, cobalt, copper, gold, iron, vanadium, platinum, palladium, rhodium, osmium, ruthenium and iridium. The area to the immediate east of the existing nickel resource was partly drilled in 2017, drill results contained nickel and platinum group elements (PGE’s) at a higher grade than that found in the Company’s existing NI43-101 compliant resource. The company believe this target area could be the up-dip extension of Ivanhoe Mines’ 800 m deep Platreef project. Ivanhoe’s Platreef Project is located immediately west and adjacent to URU’s Zebediela Project.


NetScientific 61.5p  £9.2m ()

The life sciences and technology investment and commercialisation company, it has agreed to acquire the outstanding minority interest of 43.6% of its portfolio company, ProAxsis Limited from QUBIS Limited and the founders (the “Sellers”), for a cash consideration of £228,532.50. In parallel, the key patent has been assigned by the sellers.

ProAxsis Limited is a commercial-stage diagnostics company, based in Northern Ireland, with a rapidly growing global client list of pharmaceutical companies and academic laboratories. The company has registered a CE Mark for activity-based immunoassays targeting Neutrophil Elastase (NE) and Proteinase 3, as biomarkers of lung infection and inflammation in chronic respiratory diseases such as COPD, cystic fibrosis and bronchiectasis. This technology has been translated into a point-of-care test (NEATstik®), to enable ongoing monitoring of active NE levels.

In the year ended 31 December 2019, ProAxsis generated revenues of £734,842 and a loss after taxation for the financial year of £181,082, of which £52,178 was included with non-controlling interests. Its net liabilities as at 31 December 2019 amounted to £2,401,970, of which £1,045,577 was included with non-controlling interests. Following the acquisition, ProAxsis will be fully consolidated within the Group, with no amounts included with non-controlling interests, and operate as a separate subsidiary.


 IXICO 90.5p  £42.6m ()

The data analytics company delivering insights in neuroscience, announces that it has entered into an agreement with NYU Langone Health to support a trial to determine if the immunosuppressant drug Sirolimus – approved by the FDA to prevent organ transplant rejection and for the treatment of a rare and progressive lung disease called lymphangioleiomiomatosis – is also able to slow the progression of disease in people with Multiple System Atrophy (MSA). Working with NYU Langone clinicians and researchers, the trial will help develop biomarkers for MSA from magnetic resonance imaging (MRI).


49p  £17m ()

Update concerning progress with proof of concept for a COVID-19 test that Paraytec Limited is conducting with the University of Sheffield.

As announced on 5 October 2020, proof of concept was achieved for the Optical Detection System.  Since then the focus of the Proof of Concept trials have has been on the Capture & Signal Generation Modules. 

Braveheart is now pleased to confirm that Proof of Concept has now been achieved for the Capture & Signal Generation Modules, which successfully completes the Proof of Concept trials. The directors of Braveheart believe that this test will be the first to combine a rapid result with very high detection sensitivity. Work will now turn toward the acquisition of clinically relevant data, to facilitate optimisation of the functional capabilities of the test, together with a programme of product refinement and development. Meanwhile, regulatory approval for live virus trials and the acquisition of clinical data is being sought.


DeepMatter 1.93p  £17.8m ()

The company focusing on digitising chemistry, has secured contracts with five new major customers over the last two months for its powerful computer aided synthesis design tool, ICSYNTH. In total, ICSYNTH customer numbers have more than doubled through the course of 2020, and the Company has achieved 100% customer renewals, adding to the Group’s underlying revenue base. The new customers include some of the world’s leading multi-national pharmaceutical, agrisciences, biotech and contract research organisations (CROs). Retrosynthesis is a growing area of the Life Sciences Research & Development space, providing an increasing opportunity for ICSYNTH.


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