What’s cooking in the IPO kitchen?
AIM
appScatter Group—Sch1 from the B2BSaaS platform that allows its paying users to distribute their apps to, and manage their apps on, multiple app stores. Following admission, appScatter intends to launch the public version of the platform, at which point the platform will be available to all app developers and publishers worldwide. Offer TBC, expected early Sept 2017
Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 percent. for the year ending 31 March 2019. Issue price 100p. Raising up to £150m.
Destiny Pharma—A clinical stage biotechnology company - lead asset (XF-73) targets antibiotic-resistant bacterial infections in hospitals. Offer TBA. Due early September.
Avingtrans (AVG.L) Sch1 on its Reverse Takeover of Hayward Tyler (HAYT). Combined market cap of c.£75m. Expected 01 September 2017
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 Premium Listing
Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017
Breakfast buffet
Starcom (LON:STAR) 2.13p £5.2m
The specialist in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, announced that an agreement has been reached with CropX Ltd for the supply of a number of units based on the technology of Kylos Air with agreed modifications. Initial order to be delivered by January 2018. Subject to satisfactory performance, further orders expected to be placed between April & August 2018. The potential order value of the agreement is bound by commercial confidentiality but would be significant in relation to historic revenues for 2017 (consensus £4.3m). An initial payment of a development service fee (which includes the cost of the initial order) has been received. CropX is an Israeli company which is now a world leader in the provision of its devices to farmers enabling them accurately to measure the irrigation needs, in real time, of their crops through the deployment of sensors in their fields.
Aura Energy (LON:AURA) 1.4p £11.11m
Following ongoing metallurgical optimisation and modelling, particularly around the leach reagent recycle and consumption, the operating cost for the Tiris Uranium Project has been reduced by an estimated 35%.
The estimated Tiris operating cost now stands at $19.40/ lb U3O8. Aura is currently completing a Definitive Feasibility Study (DFS) on the Tiris Project which includes additional resource definition work and metallurgical test work. This breakthrough has arisen from additional internal modelling using previous test work data to optimise primary leach reagent usage, the recycle of leach agent in the plant and consumption of the leaching reagent via impurities.
Sunrise Resources (LON:SRES) 0.15p £2.71m
The Company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, advised on progress in its strategy to valorise and rationalise its project portfolio with the sale of its Junction Gold (-Copper) Project in Humboldt County, north-western Nevada, USA. Junction Project sold to TSX-V listed VR Resources Ltd. Initial payment $10k + 50k shares in VR due on Completion. Further payment of 50k shares in VR should drilling take place. Project returned to Sunrise if no drilling takes place within 18 months of the date of the Acquisition Agreement. Further payment of 250k shares in VR should VR complete and file a 43-101 compliant report containing a resource estimate for the Project. Royalty payments on production equal to 3% of the Net Smelter Return, subject to VR's right to buy up to half of the royalty entitlement (1.5%) for $500k per half-percent. Terms of agreement, including royalty, extend to a 2 mile area of influence from the current Project claim boundary.
Collagen Solutions (LON:COS) 4.87p £15.8m
AGM Statement from the developer and manufacturer of medical grade collagen components. “I am pleased to highlight our recent progress with respect to our key initiatives for this fiscal year. First, we have now enrolled 12 of 15 (80%) of the patients scheduled in the open label extension study for ChondroMimetic®, an osteochondral scaffold for the repair of cartilage defects in the knee. We expect final data collection and analysis by the end of the calendar year, with a submission for CE-mark certification to follow. We have strengthened our tissue business by recently expanding our abattoir capacity by approximately 80%, and additional abattoir qualifications and yield improvement initiatives are in process. Our core business momentum is continuing with four new early-stage customer deals in the first quarter of the fiscal year, including two new tissue customers.”
Thor Mining (LON:THR) 0.9p £3.82m
Positive outcomes from a diamond drill hole at the Desert Scheelite deposit at the Company's wholly owned Pilot Mountain tungsten project in Nevada, USA. Several scheelite (tungsten trioxide) mineralised intervals were identified by blue fluorescence under ultra violet "UV" light. Intercepts of sulphide mineralisation including copper bearing chalcopyrite.
Significant Intercepts: 15 metres (m) of scheelite mineralisation from 198 metres.
· 4m of scheelite mineralisation from 217m.
· 18m of scheelite mineralisation from 256m, including sub massive sulphide mineralisation, including chalcopyrite, for 5m from 256m and for a further 4m from 266m.
Detailed logging of the core samples is complete and samples submitted for laboratory assay.
Watkin Jones (LON:WJG) 198.25p £506m
The UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, is pleased to announce that the Group has forward sold a development of 354 beds on Little Patrick Street in Belfast and completed a development agreement to deliver 972 beds on the Hollis Croft scheme in Sheffield to the same institutional investor. The consideration payable to Watkin Jones plc over the course of the developments is circa £90 million, net of client funding costs. Both developments are due for completion for the summer of 2019 and, following these agreements, Watkin Jones have now forward sold 1,981 of the 3,545 beds planned to be delivered ahead of the 2019/2020 academic year. All schemes to be delivered during FY17 and FY18 and ahead of the 2017/2018 and 2018/2019 academic years have been forward sold. FYSep17E PE c.15x. Yield 3.3%.
Condor Gold (LON:CNR) 51p £31.3m
New results from drilling on the Mestiza Vein Set at the La India Project, Nicaragua. A drill programme of 5,922 m has now been completed. The initial focus was on the Tatiana Vein, one of the four constituent veins; later drilling tested the nearby Buenos Aires and Jicaro veins. The objective is to convert an historic Soviet mineral resource (2,392 kt at 10.2 g/t gold for 785,694 oz gold) to Canadian NI 43-101 standard. A high-grade ore shoot on the Tatiana vein is defined over a strike length of 450 m. It has mineralised true widths up to 4.6 m (averaging 2.2 m over the main mineralised section), in addition to a hanging wall vein up to 6.1 m true width (averaging 1 m). Best results received from the most recent 2,848 m include: LIDC365 drill width 3.60 m (true width 3.12 m) at 13.7 g/t gold and 13.9 g/t silver from 142.6 m downhole depth. LIDC363 drill width 7.00 m (true width 6.10 m) at 2.90 g/t gold from 145.5 m.
OPG Power Ventures (LON:OPG) 42.25p £148.5m
Q1 Jun 17 update from the developer and operator of power generation plants in India. · Q1 FY18 total generation of 1.25bn units up 27% from 0.98bn units in Q4 FY17
Q1 FY18 plant load factor ("PLF") in line with expectations at 78% for Chennai and 79% for Gujarat as compared to the National Average PLF of 57.20% for Thermal Power Projects as per the Power Ministry's bulletin
Since June 2017 forecast international coal prices have unexpectedly risen and this significant increase is expected to have a corresponding impact on the Company's FY18 results. However, the coal price is forecast to fall to lower levels in FY19 and beyond.
Dividend policy to be maintained for FY18.
FYMar17 results expected to be announced by the week of 25 September 2017, with earnings and dividends expected to be in line with consensus expectations (£208.16m rev, EPS 6.2p, div 6.2p)
Berkeley Energia (LON:BKY) 45.25p £115.17m
Bekeley has entered into an investment agreement with the sovereign wealth fund of the Sultanate of Oman agreeing to invest up to $120 million to fully fund the Salamanca mine into production. The investment will position the fund as a long term strategic investor in the Company as well as a potential offtake partner, and is structured as:
· an interest-free and unsecured convertible loan of $65 million which can be converted into ordinary shares at 50 pence per share resulting in the fund owning approximately 28% of the Company; and,
· three tranches of options convertible at a weighted average price of 85 pence per share contributing a further $55 million towards the later phases of the Company's development of the Salamanca mine resulting in the fund holding a further 9% of the Company.