JULY 2018
 
 
 
 
COMPANY NEWS
 

AfriAg Global (AFRI) intends to change its investing policy so that it includes medicinal cannabis opportunities. A medical advisory board will be appointed and they will carry out due diligence on the opportunities. AfriAg (Pty) Ltd previously had the right to take a 60% stake in House of Hemp but this deal was terminated when the South African government delayed setting up the legal framework for medicinal cannabis.

Capital for Colleagues (CFCP) had a NAV of 41.73p a share at the end of May 2018. There are 18 investments in unquoted employee-owned businesses valued at £5.82m. The most recent was a £600,000 loan to Poole-based aerospace components manufacturer TG Engineering.

Daniel Thwaites (THW) increased its 2017-18 revenue by 9% to £92.2m, while operating profit improved by 7% to £12.9m. There was a 79% increase in earnings per share to 13.8p, mainly due to a swing from a loss on interest swaps to a profit.  The total dividend is unchanged at 4.46p a share. Investment in the pubs and hotels operations and in the new craft brewery at Mellor Brook has led to a rise in net debt from £47.6m to £63.7m. The old brewery will be demolished and the land will eventually be sold or developed. Poor weather means that the new financial year has started more slowly than last year.

PCG Entertainment (PCGE) has raised £303,000 at 0.15p a share and around £119,000 will go towards paying the £119,000 settlement with D-Beta, which provided an equity sharing facility. D-Beta has sold its existing stake. PCG is talking to Cavitation Solutions Ltd about distributing cavitation technology, which deals with oil and other water pollutants, in China. It is also talking to ChainZy about distributing its blockchain-based technology in Asia. There is interest from third parties concerning the use of PCG’s media and gambling licences in China.

Kent-based wines maker Chapel Down Group (CDGP) has built up a significant presence in the English wines market. The company has a winery in Tenterden and it is building a new brewery for its beer operations. Chapel Down reported a 15% increase in annual sales to £11.8m. Wine sales were one-fifth higher at £8.12m with cider and beer sales, via associate Curious Drinks, were 7% ahead at £3.68m. Operating profit improved from £346,000 to £470,000 but there was a much larger loss from the Curious Drinks associate so pre-tax profit was lower. The new brewery should be open in the first quarter of 2019.

Cyber security technology developer Crossword Cybersecurity (CCS) is still at a very early stage of its development but it more than doubled its revenues in 2017. The loss still increased from £950,000 to £1.24m despite the improvement in revenues from £345,000 to £737,000. The cash outflow was £1.06m, which left £490,000 in the bank. Since then, £2.16m was raised via a placing at 270p a share. Crossword has interests in a number of early stage businesses, including CyberOwl, a joint venture between Coventry University and Crossword, which has backing from Mercia Fund Management. CyberOwl is developing network security software for target-centric monitoring.

KR1 (KR1) generated gains of £4.3m on its trading in digital coins and tokens during 2017. There was also a total unrealised gain of £10.8m on these investments and a £1.18m foreign exchange gain. The total pre-tax profit was £14.5m, with a tax charge of £2.87m. That tax charge is included in trade creditors due within one year of £4.21m. There is cash in the bank, but total current assets were £3.5m. A creditor has subsequently been paid with £79,000 of shares, issued at 10p each. The KR1 share price has more than quadrupled over the past year and there is regular daily trading in the shares.

Field Systems Designs Holdings (FSD) has one of the longest track records on NEX and it has its highest share price in more than one decade of trading. Field Systems Designs, installs and supplies electrical, instrumentation and control systems, for the water, power and transport sectors. In the six months to November 2017, revenues jumped from £8.47m to £12m, while pre-tax profit improved from £114,000 to £211,000. There was £3.34m of cash in the bank and NAV was £3.31m, which is more than the market capitalisation.

Medicinal cannabis business investor Sativa Investments (SATI) has raised £500,000 from Miton Investment Management at 4p a share. Demand for the shares remains strong. Executive director Mark Blower has sold one million shares at 4p a share, having exercised options for the same number at 0.5p each, and Non-executive Noel Lyons has sold 500,000 at 4.25p each, having exercised 500,000 options at 0.5p each. Sativa joined NEX on 29 March after raising £1.1m at 1p a share. The share price had already reached 3.125p by the end of the first week. Sativa has founded the Sativa Foundation to fund academic research into medicinal cannabis.

NEW ISSUERS
 
 Tectonic Gold PLC (TTAU) is a specialist gold exploration company, focused on the identification and delineation of large-scale, multi million-ounce Intrusion Related Gold System (“IRGS”) assets. Tectonic Gold holds a number of gold discoveries in the Lachlan Fold Belt in Eastern Australia, a prolific gold region that is home to Australia’s two largest gold production companies, Newcrest Mining and Evolution Mining.
 

High Growth Capital plc's (HASH) Investment Strategy will be to initially effectively become a UK, Canadian and Australian-focused medicinal cannabis and related products’ index tracker and investor. The Company will aim to track companies in the sector that are quoted or listed on public company stock exchanges and Recognised Investment Exchanges such as the NEX Exchange Growth Market.

The Company aims to ensure that it provides investors with direct exposure to such companies, developing a de-facto ‘tracker’ covering such UK listed cannabis companies admitted to any and all UK public markets.

 
 
 

The Barkby Group PLC (BARK) is a boutique hospitality group, focused on premium gastropubs, inns and function spaces in Oxfordshire and Gloucestershire. The Group currently owns three highly acclaimed gastropub properties with a total of 38 hotel rooms, and is focused on delivering a high-end experience in select “destination” locations. The Company seeks to differentiate itself by quality of food and service and upscale accommodation.

 
 

Ananda Developments plc's (ANA) investment strategy is to invest in companies, projects or products that are either progressing medicinal or therapeutic Cannabis research and development, or are developing or have already developed, products that contain Cannabis derived cannabinoids and require funding to progress work plans or commercialise products. Ananda will look to invest in companies or projects in Israel, Canada and the Netherlands.

 
 

Eight Capital's (MORE) objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation, by taking advantage of opportunities to invest in the technology, media, and telecom (TMT) sector.

 
 
JUNE MARKET STATISTICS
 
 
NEX Group
  Top 5 Traded by Value
  Security Name Ticker Trades Value (GBP) Volume  
  Chapel Down Group plc CDGP 74 28,793,718 52,224,851  
  Shepherd Neame SHEP 80 1,765,790 160,132  
  Sativa Investments plc SATI 335 996,212 32,660,550  
  VI MINING PLC VIM 26 550,349 155,208  
  Block Commodities Ltd BLCC 56 260,052 521,615,387  
 
NEX Group
  NEX Exchange Market Overview
  Market Monthly Volumes (trades) Month on Month Change Value Month on Month Value Change Most Active Security  
  Primary 1,269 44 38,458,178 33,792,446 Sativa Investments plc - 335  
  Secondary 47,796 (10,834) 345,408,426 (52,792,939) Sirius Minerals Plc - 4,965  
 
NEX Group
 
NEX Group
  Forthcoming Announcements
  Issuer Event Date  
  Angelfish Investments plc Annual General Meeting 16/07/2018  
  EPE Special Opportunities plc Annual General Meeting 24/07/2018  
  Milamber Ventures Plc Annual General Meeting 24/07/2018  
  Startup Giants plc Annual General Meeting 26/07/2018  
  All Star Minerals plc Annual General Meeting 27/07/2018  
  Valiant Investments plc Annual General Meeting 31/07/2018  
  MetalNRG Plc Final Results 31/07/2018  
  Hydro Hotel Eastbourne plc Interim Results 31/07/2018  
  AFH Financial Group plc Interim Results 31/07/2018  
  Asia Wealth Group Holdings Ltd Final Results 31/07/2018  
  GUNSYND Final Results 31/07/2018  
 
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NEX GROUP: NEX Group plc offers customers better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Customers use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world’s capital markets. NEX is headquartered in London with offices worldwide. NEX. Empowering markets.
 
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