Small Cap Feast

Small Cap Feast – 06 January 2020

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What’s Cooking in the IPO Kitchen?

Main Market (Premium)

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February


Breakfast Buffet

Serabi Gold (SRB.L) 79.5p £46.8m

Results from its ongoing surface and underground exploration diamond drilling programme being undertaken on the Sao Chico orebody at its Palito Complex.  

A 9,600 metre ‘step out’ surface diamond drill programme commenced in early Q4 to test the east and west continuity of the Sao Chico orebody.  In addition, an underground drilling services contractor is undertaking an 8,000 metre underground drilling programme to test the depth continuity.

The drilling completed to date indicates payable strike continuity of mineralisation for 200 metres to both the east and west of current mining limits.

Key intercepts to the west include intersections grading 21.03 grammes per tonne (“g/t”) and 15.39 g/t (holes 19-SCUD-219 and 248 respectively).

Key intercepts to the east include intersections of 16.61 g/t and 27.35 g/t (holes 19-SC-143 and 142 respectively).

Underground drilling also confirms extension of current Sao Chico ore-body for a further 100 metres. Key intercepts at depth include intersections of 34.42 g/t and 114.49 g/t from holes 19-SCUD-284 and 19-SCUD-274 respectively.


Knights Group (KGH.L) 342p £253m

Acquisition of ERT Law Limited (“ERT”), a commercial litigation law firm in BirminghamTotal consideration of £1.8m. Half cash half shares. The acquisition of ERT builds on the Company’s recently established presence in Birmingham.

ERT is a specialist in commercial litigation, servicing a number of blue-chip and FTSE listed companies. Its 24 fee earners will join the 32 fee earners in Birmingham following the acquisition of Emms Gilmore Liberson in November 2019, further strengthening the Company’s high quality platform in the important and attractive West Midlands region. Following completion, the total number of fee earners across the Company will be 633.

In its unaudited accounts for the year ending 30 April 2019, ERT reported revenue of circa £2m with a corporatised PBT margin of circa 15%. Following integration, including the delivery of cost synergies, the Board expects ERT to deliver a PBT margin in excess of 20%. The acquisition will be earnings enhancing in the first financial year post acquisition.


Nu-Oil & Gas (NUOG.L) 0.05p £1.3m

The AIM Rule 15 cash shell company, announces that it has raised gross proceeds of £420,000  at 0.0525p. 

The Company has until 4 May 2020 to announce a reverse takeover transaction before it would be suspended from trading pursuant to AIM Rule 40.  Shareholders should, however, be aware that, whilst the Company is confident of completing a reverse takeover transaction within this timeframe, there can be no guarantee of such occurring.


Altitude (ALT.L) 53p £36.7m

The operator of the leading marketplace for personalized products is delighted to announce a major strategic alliance with the Advertising Specialty Institute (“ASI”) the largest media, marketing and education organization serving the $24.7 billion US promotional products industry. 

Founded in 1962, ASI serves a network of over 23,500 distributors, decorators and suppliers and owns and operates ESP®, the largest promotional product and supplier database in North America.

As a result of this alliance, ESP® has been seamlessly integrated into both the AIM Smarter portal and AIM Tech Suite, giving AIM members priority access to AIM’s preferred suppliers, c.1,000,000 products and an additional c.3,000 suppliers.

This integration will provide AIM members even greater efficiency and an expanded search through AIM’s single source search engine with data now powered by ESP, featuring real time supplier product and pricing data by which products can be sourced and purchased utilizing the AIM Tech Suite CRM and order management platform.


Boku (BOKU.L) 85.5p £216m

The world’s leading independent carrier commerce company, announces that, further to the announcements on 2 January 2019 and 31 January 2019 in relation to the completion of the acquisition of Danal, Inc. common shares in the Company have been issued to Danal shareholders following the release of the Common Shares that were subject to holdback for 12 months as Boku has not filed any claims for indemnification.

Following the issue of the Holdback Shares the total consideration paid by the Company to acquire Danal comprised the issue of 26,700,000 Common Shares, the issue of warrants over 1,634,699 Common Shares exercisable for five years at an exercise price of £1.41 each and US$1.0 million in cash. No additional earn-out consideration is payable by the Company.

The total purchase price accounted for by the Company for the acquisition of Danal has now therefore been finalised at US$25,077,547.13, being approximately 8.6% of the Company’s market capitalisation as at close of business on 31 December 2019.


Urban Logistics (SHED.L) 146p £128m

Urban Logistics, the AIM-listed REIT focused on last mile logistics, is pleased to announce an update on proposed acquisitions.

Urban Logistics is solely focussed on the urban logistics real estate sector and invests in smaller, single let units. Since IPO in April 2016, Urban Logistics has assembled a well-diversified and high-quality urban logistics portfolio of 38 properties and applies a strategy of active asset management and capital recycling.

Over the period from IPO to 30 September 2019:

  • EPRA NAV per share increased by 45.2%, representing an average increase of 11.4% per annum;
  • The Company paid out dividends totalling 19.55p per share; and

As at the date of this announcement, the total pipeline is in excess of £300 million. This pipeline includes units for an aggregate consideration of £146 million where the Manager is in advanced negotiations and further properties with an aggregate consideration of more than £150 million where the Manager is in preliminary stage discussions

Tremor International (TRMR.L) 176p £216m

 The specialist  in video advertising technologies, announces that it has reached an agreement with News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV), a global diversified media and information services company, to acquire Unruly, News Corp’s programmatic video marketplace.   The Transaction will be satisfied through the issue of approximately 6.91%. of Tremor International’s issued voting share capital to News Corp. Under the terms of the Transaction, News Corp will be subject to an 18-month lockup period. Tremor has also entered into a global partnership with News Corp that will equip Tremor with the exclusive right to sell outstream video on more than 50 News Corp titles in the UK, US and Australia. Under the terms of the Transaction, Tremor International has committed to an ad spend of £30 million with News Corp over a three-year period as part of this agreement.

News Corp has also agreed to contribute cash towards the cost of integrating Unruly with the Company. Furthermore, it is anticipated that Rebekah Brooks, Chief Executive Officer of News UK, will be joining the board as a non-executive director.


Great Western Mining (GWMO.L) 0.135p £1.5m

 Results of its recently completed soil sampling exercise over the Mineral Jackpot area in Mineral County, Nevada.

A total of 249 soil samples and one grab sample were taken at Mineral Jackpot during November and December 2019. Soil sampling has approximately doubled the size of the previously defined mineralised footprint over the Mineral Jackpot area, proving up connectivity between abandoned, historic mine workings for Au and Ag.

Geochemical signatures analysed during this project include Au (Gold), Ag (Silver), Pb (Lead), Zn (Zinc), Sb (Antimony), Bi (Bismuth), and As (Arsenic – commonly associated with the presence of Gold).

The single grab sample taken during the soil sampling exercise, MJG001, was acquired close to a recently discovered adit (horizontal mining tunnel) 100 metres to the north west of the existing Silver Bell workings.  The grab sample yielded an assay of 27.4 g/t Au, 151 g/t Ag and 0.14% Cu. This clearly indicates that mineralisation continues north westwards from Silver Bell towards Mineral Jackpot and this is confirmed by the soil sample results.


Powerhouse Energy (PHE.L) 0.565p £11.1m

 The UK technology company pioneering hydrogen production from waste plastic, is delighted to announce that a grant of £1.25m has been awarded to, Waste2tricity Protos Ltd, for the DMG® Hydrogen from Waste development at Protos, near Ellesmere Port, in Cheshire.


Open Orphan (ORPH.L) 5p £12.9m

New 3-year contract with a tier 1 German pharmaceutical company which is one of Europe’s top research-driven pharmaceutical companies. The contract guarantees significant annual revenue with work under the contract to commence this month.

This contract sees Venn Life Sciences, part of Open Orphan plc, build upon its strong existing relationship with this German pharmaceutical company with a new consultancy for Pharmacokinetic  analysis.


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Derren Nathan
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