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In this weekly column, Stockhead overviews all substantial holder filings of ASX small-caps. Substantial shareholders are those holding 5% or more and these could be directors, individual investors or institutional investors such as fund managers and super funds.

Companies are required to announce when new substantial holders have come on board, when they have ceased to be shareholders or when they change their holdings. At first glance, some of these may seem minor, especially because companies don’t have to clarify why. But upon closer examination of the companies and their circumstances these transactions may show the confidence (or lack of) that those investors hold in the company.

 

Been and Gone

There has been a lot of turnover at Xenith IP Group (ASX: XIP) in light of the looming takeover by IP investor QANTM. Perpetual, Fidelity and the Commonwealth Bank sold their stakes which totalled nearly 16% between the three of them.

But it was not QANTM that took this up. It was rival investor, IPH, who bought a 19.99% stake in Xenith. IPH are ASX listed and have a successful track record of acquisitions in recent years that have made it a billion-dollar company.

While IPH have made clear it will vote QANTM’s offer down, it has not said if it will seek to acquire Xenith itself. While Xenith has continued to recommend shareholders vote in favour of QANTM’s offer, it is unlikely IPH will stay silent having forked out $33 million in debt to facilitate this transaction.

Newly listed Uniti Wireless (ASX: UWL) were another company with significant activity with Chase Nominees, IOOF Holdings, Copia Investment Partners and Vibumum Funds buying 12.56%, 15.38%, 5.52% and 7.64% respectively, equating to more than 40% of the Company.

Yet the only news out of this company since listing was the departure of two directors, and prior to these purchases, no holder held more than 8% and only four held over 5%.

Perhaps these institutions were inspired by Splitit’s (ASX: SPT) listing, which was significantly over-subscribed leading to the stock price rising nearly 5 times as investors who missed out on the IPO scrambled to buy a piece of the buy-now pay-later company.

Global Energy Ventures (ASX: GEV) welcomed Regal Funds as a shareholder, which bought 6.97% as part of its recent $4.7 million placement in which GEV’s directors contributed $210,000. 

City Chic Collective (ASX: CCX) saw small cap fund manager Spheria Asset Management acquire 6.14% of the company. The share price of this fashion retailer is nearly 4 times higher than a year ago and up 35% this month.

Maybe the catalyst was its first half results which left CEO Phil Ryan, “extremely pleased”. With revenue of $75.4m and EBITDA of $15.8m, there’s no sign this company is slowing down any time soon.

Here is a wrap of all becoming or ceasing to be substantial holder notices lodged with the ASX in the last week, among small cap companies.

Swipe or Scroll to reveal the full table. Click headings to sort.

CompanyCodeMarket CapBuyer StakeBecoming or Ceasing
MSL SolutionsMPW$20.5MFMR Investments0.0512Becoming
Uniti WirelessUWL$27.0MChase Nominees0.1256Becoming
Chorus LtdCNU$436.0MAccident Compensation Corporation5% (to 4.958%)Ceasing
Uniti WirelessUWL$27.0MIOOF Holdings0.1538Becoming
IncentiaPayINP$19.2MNew Gold Coast Holdings0.0548Becoming
Xenith IP GroupXIP$141.9MIPH Ltd0.1999Becoming
Uniti WirelessUWL$27.0MVibumum Funds0.0764Becoming
Global Energy VenturesGEV$52.0MRegal Funds0.0697Becoming
Hammer MetalsHMX$6.4MZenith Pacific0.0636Becoming
OrthocellOCC$13.6MQi Xiao Zhou0.05Ceasing
Xenith IPXIP$140.2MPerpetual0.0456Ceasing
Xenith IPXIP$140.2MFIL Ltd0.055Ceasing
XTDXTD$4.0MSG Hiscock & Co0.0521Ceasing
Xenith IPXIP$142.0MCBA0.056Ceasing
City Chic Collective LtdCCX$259.2MSpheria Asset Mgmt0.0614Becoming
IVE GroupIGL$337.9MAustralianSuper0.0502Becoming
Virtus Health LtdVRT$332.8MAllan Gray Australia0.0509Becoming
Peninsula Energy LtdPEN$47.8MPala Invstments7.90%Ceasing
Uniti WirelessUWL$27.0mCopia Investment Partners0.0552Becoming

Changers

After crossing the 90% threshold, Ramelius Resources has continued chipping away at Explaurum (ASX: EXU) with the intention of fully acquiring the company. It now owns 93%.

While Ramelius has made an offer to remaining shareholders to sell, this closes on Friday and it seems it will move to compulsorily acquire shares afterwards.

Only a week after announcing it wanted to grow industrial hemp in Oregon, LTL Capital has increased its stake in CropLogic (ASX: CLI) from 5% to 8.37%.  

Despite Spheria Asset Management seemingly believing City Chic Collective’s (ASX: CCX) run will continue, Wilson Asset Manager is hedging its bets, reducing its 9.14% stake to 7.38%.

Although Adam Smith Asset Management did not follow Perpetual, FIL and CBA completely out the door of Xenith IP (ASX: XIP), it reduced its stake from 7.34% to 5.69%.

IOOF was another active fund manager this week reducing its stake in Pacific Energy (ASX: PEA) from 12.22% to 11.06%; whilst hiking its stake in RedBubble (ASX: RBL) from 5.04% to 6.05% and in Primero Group (ASX: PGX) from 8.95% to 10.34%.

Among the other notable ‘top ups’ were Vibumum Funds’ hike of its 20.99% stake in Coventry Group (ASX: CYG) to 26.1% and Immersion Capital’s increasing of its 14.17% stake in ELMO Software (ASX: ELO) to 15.58%.

 

Here is a wrap of all changes in substantial holder notices lodged with the ASX in the last week, among small cap companies.

Swipe or Scroll to reveal the full table. Click headings to sort.

Listed CompanyCodeMarket CapPurchaser or SellerPrevious StakeCurrent Stake
Adherium ADH$4.0mFIL 0.08460.0712
Lifestyle CommunitiesLIC$530.0mWashington Soul Pattinson0.0610.071
LiveTilesLVT$214.2mKarl Redenbach0.20180.1833
LiveTilesLVT$214.2mPeter Nguyen-Brown & NIA Tech0.17850.1499
CropLogicCLI$3.9mLTL Capital0.050.0837
AdairsADH$316.8mBrett Blundy0.1530.141
Indoor Skydive Australia Group LtdIDZ$2.6mChallenger0.12660.1126
1414 Degrees14D$49.6MHarold George Tomblin0.09490.0627
Coventry GroupCYG$64.2MVibumum Funds0.20990.261
ExplaurumEXU$84.7MRameulis 0.90920.9321
Global Energy VenturesGEV$52.1MFletcher Maurice Brand0.06550.062
Gas2GridGGX$4.3MDennis James Morton0.19890.1575
IncentiaPayINP$20.5MSinetech Ltd0.10950.0876
Paragon Care LtdPGC$161.8MKarst Peak Capital0.07240.0596
PureProfile LtdPPL$4.1MEFM Global Growth Fund0.1070.135
Reece PharmaceuticalsRCE$16.6MGraham & Olga Melrose0.35520.2835
Xenith IP GroupXIP$140.2MAdam Smith Asset Mgmt0.07340.0569
8IP Emerging Companies8IC$30.0mMason Stevens Ltd0.12050.1105
Black Rock MiningBKT$40.4mCopulous Group0.20380.2152
Hillgrove ResourcesHGO$48.0mMunro Family Super Fund0.0850.0966
Pacific EnergyPEA$275.0mIOOF Holdings0.12220.1106
Incentia Pay LtdINP$19.2mNew Gold Coast Holdings0.05480.1367
Red 5 LtdRED$143.0mRuffer LLP0.08390.0692
1414 Degrees14D$49.6MHarold George Tomblin0.09490.0627
Coventry GroupCYG$64.2MVibumum Funds0.20990.261
Global Energy VenturesGEV$52.1MFletcher Maurice Brand0.06550.062
Gas2GridGGX$4.3MDennis James Morton0.19890.1575
IncentiaPayINP$20.5MSinetech Ltd0.10950.0876
Paragon Care LtdPGC$161.8MKarst Peak Capital0.07240.0596
PureProfile LtdPPL$4.1MEFM Global Growth Fund0.1070.135
Xenith IP GroupXIP$140.2MAdam Smith Asset Mgmt0.07340.0569
City Chic CollectiveCCX$259.2MWilson Asset Management0.09140.0738
Celamin HoldingsCNL$7.1MLion Selection Group0.21490.1926
ELMO SoftwareELO$283.9MImmersion Capital Master Fund0.14170.1558
GBST HoldingsGBT$115.1MSpheria Asset Mgmt0.07580.0909
Gas2Grid LtdGGX$4.2MDavid Munns0.06190.0531
RedBubble LtdRBL$254.9MIOOF Holdings0.05040.0605
Primero GroupPGX$64.4MIOOF Holdings0.08950.1034

While all these were reported to the ASX this week, the change may have occurred several days earlier. This is not intended to be a comprehensive list and although investors’ outlooks in these companies may be implied from these decisions, they should not be relied on to make your own investment decisions.