Small Cap Feast

Small Cap Feast – 02/09/21

Dish of the Day:

Access Intelligence (ACC.L) has acquired Isentia Group. The Acquisition constitutes a reverse takeover under AIM Rule 14. £50m to be raised on admission of the fundraising shares. Anticipated Mkt cap on re-admission of the Enlarged Group: £153.1m (based on the placing price of 120 pence). The Enlarged Group will provide a broad suite of technology products for marketing intelligence, reputation management, and data insights and the Enlarged Group’s main country of operation will be Australia.

Longboat Energy (LBE.L), Longboat has secured three bilateral transactions to acquire a significant, near term, low risk exploration drilling programme in the Norwegian Continental Shelf. These agreements will provide Longboat Energy with a working interest in up to seven near term exploration wells. The farm-in agreements will constitute a reverse takeover for the purpose of Rule 14 of the AIM Rules. £35m raised prior to re-admission. Readmitted at Mkt cap of c.£40m.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Reuters reports that Oxford Nanopore, a provider of rapid COVID-19 tests to the UK’s national health service, is working with banks to launch an initial public offering on the London Stock Exchange in the coming weeks. The company aims to build on the 2.48 bln pounds ($3.42 bln) valuation achieved in a funding round in May, two sources familiar with the matter said. The Oxford-based life sciences firm, which counts IP Group and Singapore’s Temasek among its shareholders, provides DNA/RNA sequencing technology for sectors such as biomedical, pathogen, plant and animal scientific research, infectious diseases and food and agriculture.
VSA Capital has applied for admission to the AQSE Growth Market. VSA Capital is an international investment banking and broking firm, with offices in London and Shanghai, providing corporate finance, advisory and capital markets services to private and public companies Offer tba. Due 9 Sep
Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.
Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.
South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. Timing and offer TBA.

Breakfast Buffet

Black Sea Property 0.00225p £4.08m (AQSE:BSP)

After a lengthy approvals process with the authorities in Sofia, the Company has now received permission to reconstruct one of the Company’s principal investments, the historic Ivan Vazov building (previously known as the Unicredit building) in central Sofia. The Ivan Vazov building consists of a basement, five floors and an attic, with total floor space of 9,107 m2. As part of the Company’s development plan, the Company will convert the internal space into luxury, high specification offices, with the attic floor being reconstructed and converted into a mansard roof space.

ECR Minerals 1.75p £17.5m (ECR.L)

100% owned Australian subsidiary, Mercator Gold Holdings Pty Ltd, has purchased a property at 35 Brewing Lane, Springmount, Australia, subject only to the payment of the completion monies. The Property is located within the Company’s existing 100% owned Creswick license area. It is anticipated that monies will be paid, and completion will occur, on or around 27 September 2021, and further updates will be provided at that time. The property consists of 16 acres, within the 45 square kilometre Creswick license area in Victoria, Australia. The property is held over three titles. The Property will provide a base for activities across the license area as ECR advances its drilling programmes and, when appropriate will be the site for development for the mine decline. The purchase price of the property is AUD500k which is to be settled in two tranches, consisting of a AUD50k deposit which has already been paid and the balance to be paid on 27 September 2021. The purchase will be funded by the Company’s existing cash resources. The Group has £4,222,940 in cash after paying the deposit. This is the equivalent of USD5,824,631.

IronRidge Resources 23.50p £121.5m (IRR.L)

Additional broad and high-grade lithium pegmatite drill intersections at new targets adjacent to the Ewoyaa Lithium Project, where the Company has defined a JORC compliant mineral resource estimate of 14.5Mt at 1.31% Li2O in the inferred and indicated category, including 4.5Mt at 1.39% Li2O in the indicated category in Ghana, West Africa. Vincent Mascolo, Chief Executive Office said: “We have defined a new mineralised structure at the Grasscutter target, where broad pegmatite intersections, including 49m at 1.21% Li2O, have been reported within 620m of the resource footprint. The board is confident the additional exploration targets will increase resource scale and improve project economics, where we have defined Ghana’s first lithium resource of 14.5Mt at 1.31% Li2O, within 110km of an operating deep-sea port.”

Mobile Streams 0.26p £6.1m (MOS.L)

The mobile content and data intelligence company, announced that its LiveScore service in Mexico, which was launched at the end of July, has exceeded its August subscriber target by 250% with over 3,500 subscribers now signed up. Based on this number of subscribers, MOS estimates that this service in Mexico alone should generate at least $1.5m over 3 years in additional revenue for the Company.

Premier African Minerals 0.195p £36.9m (PREM.L)

Update on progress at Premier’s Zulu Lithium and Tantalum project in Zimbabwe where drilling has commenced with 1,000 meters completed. Two rigs drilling to date have been focused on step out zones intended to increase the Mineral Resource estimate. Six Diamond holes completed to date with planned 20,000 meters of diamond core drilling including sample collection for test work. Good intersections of visible spodumene mineralisation encountered. Best intersections of 20.68 meters in ZDD52 including continuous intersection of 12.1 meters at depth of 47.35m to 59.45m. Location of mineralised intersections in completed boreholes indicate continuity within the step out zone and subject to assay results may increase the overall resource estimate at Zulu Lithium. One rig will be dedicated from September to larger diameter core recovery for metallurgical, mineralogical, and geotechnical test work. Third rig expected on site October 2021. First assay results expected September 2021.

Redx Pharma 59p £162.1m (REDX.L)

The drug discovery and development company focused on cancer and fibrosis, announced that a milestone payment of $3m from Jazz Pharmaceuticals plc (NASDAQ: JAZZ) has been triggered as a result of the initiation of IND enabling studies of JZP815, a preclinical Pan-RAF inhibitor, for the potential treatment of RAF driven tumours. Mutations leading to uncontrolled signalling in the RAS-RAF-MAPK pathway are seen in around one third of all cancers.

Surface Transforms 70p £136.6m (SCE.L)

The manufacturer of carbon fibre reinforced ceramic brake discs, has been notified of its selection as a tier one supplier of a carbon ceramic brake disc to its existing mainstream customer described previously as OEM 5. Prototype orders have been received and are being fulfilled. All terms and conditions have been carried over from the master purchase agreement with this customer signed in mid 2019. The car is a facelift to an existing internal combustion engine model with start of production in Q1 2024 and the Company’s brake discs will be fitted as an option to the front axle. The lifetime value of the contract is expected to be approximately EUR5m spread over the 5 years from 2024 to 2028.

XL Media 63p £165.4m (XLM.L)

The global digital performance publisher, announces the acquisition of the business and assets of Saturday Football Inc., a major online publisher of college football news for a total consideration of US$23.0m cash (c.£16.8m) plus US$1.0m (c.£0.7m) in long term incentive shares. Founded in 2014, Saturday Football Inc. operates two leading college football media sites, and, which cover the popular Southeastern Conference and Big 10 college sports conferences. Combined, the sites generate an audience of approximately 10m visits per month. Through the due diligence process, XLMedia management have estimated the owned sites generated unaudited revenue and EBITDA, before founders’ compensation, over the trailing 12 months ending 31 July 2021 , of approximately $2.5m and approximately $606k respectively. Management believes that post integration into the Group the assets will generate significantly more revenue due to closer collaboration with CBWG.

Wishbone Gold 9.90p £17.1m (WSBN.L)

Updates on the 100% owned Cottesloe Project, located 55 km south-west of the Telfer Gold Mine and about 35 km south-east of Wishbone’s Red Setter Project, in the Patersons Range of Western Australia. Cottesloe Project tenement E45/4543 term has been extended by the Western Australian Government by 5 years to 30/06/2026. Geophysical studies have distinguished several IOCG style targets along with broad Electromagnetic and Gravity anomalies, supporting the prospectivity of the Basin for Sedimentary Exhalative (SEDEX) style base metal mineralisation. Overall, 7 Geophysical targets varying in size up to 3.7km x 1.2km have now been identified to date from geophysics. The presence of strong base metal anomalies, coincident geophysics and prospective geology is highly encouraging. A Programme of Works (PoW) for drilling 20 holes has been approved by the DMIRS. A recent test run of soil geochemistry conducted by Wishbone’s consultants over 5 small traverses showed positive responses, and suggests that the exploration technique is valid. Soil sampling appears to be highly effective in the area. Accordingly Wishbone has expanded the geochemistry programme over a greater area of the project with a new 875 sample programme to assist with refining drill targets for the maiden drill programme.

Zephyr Energy 6.325p £81.7m (ZPHR.L)

Update on its flagship project in the Paradox Basin, Utah, U.S. Positive results from the State 16-2LN-CC diagnostic fracture injection test; well to be completed using hydraulic stimulation. Final State 16-2LN-CC well completion design work is currently underway. Despite increasing challenges posed by industry supply chain constraints and volatile weather across the western U.S., the Company has secured equipment and a completion crew which will be on-site during the second week of October. From that point, completion operations are expected to take less than a week and production testing will commence immediately thereafter, with initial flow tests and results expected by the end of October.

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Derren Nathan
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