Small Cap Feast
Small Cap Feast – 04 January 2021
Dish of the Day:
Since 23rd December 2020: Pineapple Power, a special purpose acquisition company to seek and acquire businesses in the clean energy sector, has Joined the Main Market (Standard) raising gross proceeds of £1,316,010 (PNPL.L) Vector Capital (VCAP.L) has joined AIM, a commercial lending Group that offers secured loans primarily to businesses located in the UK. Substantially all of the Group’s loans are secured by a first legal charge against real estate. The Group’s customers typically borrow for general working capital purposes, bridging, land development and acquisition. As of 30 September 2020, the Group had a loan book of £34.7m, with an average loan size of approximately £0.57m. Raised £3.1m at 38p. Mkt Cap on admission £16m. Reverse take-over under rule 14 by MelodyVR (AIM:MVR) Group of Rhapsody International, trading as Napster. Napster is now a wholly-owned subsidiary of MelodyVR Group. The enlarged group will combine the service offerings of MelodyVR and Napster, offering music fans a consolidation of music artist’s repertoires including recorded music, short form video content, long form video content, digitally ticketed live streams, educational videos and immersive AR/VR content, into one premium subscription product. Raising $10.1m. Market cap £92.4m at 3.75p. Eddie Stobart Logistics (ESL.L) has converted to an AIM investing company. Name change to Logistics Development Group. Focus sectors: logistics, transport, warehousing and e-fulfilment assets. £9m raised via a placing and subscription and up to £7m via open offer. Market cap c.£35.1m.
Since 23rd December 2020:
Pineapple Power, a special purpose acquisition company to seek and acquire businesses in the clean energy sector, has Joined the Main Market (Standard) raising gross proceeds of £1,316,010 (PNPL.L)
Vector Capital (VCAP.L) has joined AIM, a commercial lending Group that offers secured loans primarily to businesses located in the UK. Substantially all of the Group’s loans are secured by a first legal charge against real estate. The Group’s customers typically borrow for general working capital purposes, bridging, land development and acquisition. As of 30 September 2020, the Group had a loan book of £34.7m, with an average loan size of approximately £0.57m. Raised £3.1m at 38p. Mkt Cap on admission £16m.
Reverse take-over under rule 14 by MelodyVR (AIM:MVR) Group of Rhapsody International, trading as Napster. Napster is now a wholly-owned subsidiary of MelodyVR Group. The enlarged group will combine the service offerings of MelodyVR and Napster, offering music fans a consolidation of music artist’s repertoires including recorded music, short form video content, long form video content, digitally ticketed live streams, educational videos and immersive AR/VR content, into one premium subscription product. Raising $10.1m. Market cap £92.4m at 3.75p.
Eddie Stobart Logistics (ESL.L) has converted to an AIM investing company. Name change to Logistics Development Group. Focus sectors: logistics, transport, warehousing and e-fulfilment assets. £9m raised via a placing and subscription and up to £7m via open offer. Market cap c.£35.1m.
Off the Menu:
Since 23rd December 2020: Horizon Discovery has cancelled its AIM listing. Formation Group has left the Aquis Stock Exchange.
Since 23rd December 2020:
Horizon Discovery has cancelled its AIM listing.
Formation Group has left the Aquis Stock Exchange.
What’s Cooking in the IPO Kitchen?
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the “London Cocktail Club”), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan.
HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan .
VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
Zephyr Energy 0.9p £6.3m (ZPHR.L)
The Rocky Mountain oil and gas company focused on responsible resource development, provided an operational update:
Drilling crews at the State 16-2 well site have been operating around the clock since the December spud, and progress to date is fully in line with the Company’s expectations. Following the spud of the State 16-2 well, the Company received the third US$600,000 tranche of the US$2 million grant funds allocated by the U.S Department of Energy and its National Energy Technology Laboratory for the drilling of the well.
Management continues to assess acquisition opportunities with the potential to deliver near-term cash flow at attractive valuations. Potential acquisitions under consideration have the following criteria which meet the Company’s strategic profile:
Oil and gas interests located in the greater Rocky Mountain region of the U.S.; Current or near-term production potential, in order to balance the significant long-term upside potential provided by the Company’s Paradox project; Low-risk, low-entry cost assets located in core areas of established, historically prolific basins; Ability to generate near-term value from the Company’s existing $15 million tax loss asset; and Proprietary acquisition angles (via land strategy, relationship, or unique view on upside opportunity).
Mosman Oil & Gas 0.155p £4m (MSMN.L)
The oil exploration, development and production company, announces that it has signed a binding contract for the sale of the Welch Project, in Texas, for US$420,000 (cA$553,000) in cash, with Steadfast Energy Partners, LLC (50%) and Silver Dollar Energy Investments, LLC (50%), and the closing is scheduled for 15 January 2021.
Ncondezi Energy 6p £22m (NCCL.L)
Update on historical development cost reimbursement negotiations with China Machinery Engineering Corporation (CMEC) for its integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique.
- US$26.7m is in-principle agreed as the target Project historical expenditure
- US$21.0m expenditure was audited by third-party and the audit report was accepted by CMEC “in principle”
- US$5.7m of costs relating to historical senior and project management costs still under negotiation
- CMEC and Ncondezi agree to finalise historical development cost once Project power tariff has been approved by Electricidade de Moçambique
IDE Group Holdings 2.9p £11.6m (IDE.L)
The mid-market network, cloud and IT managed services provider has signed a significant new contract with an existing customer within its partnership channel. Under the terms of the Contract the partner has committed to procure services from IDE to a value of £22.5 million over the next three years, with the opportunity to extend for up to another two years if the commitment is not met. The £22.5 million is in addition to the existing circa £5 million per annum of revenue contracted with the partner. The Contract was awarded based on the excellent service provided by IDE to the partner over the years together with a commitment from IDE to reduce the cost of services across the partner’s customer base.
Conygar Investment Co 104.5p £56m (CIC.L)
Conygar announced the submission of detailed planning for the first major phase of Conygar’s mixed use scheme in the centre of Nottingham. The application includes a 223-bed hotel providing both long and short stay accommodation, over 240 build to rent apartments, co-working space and an extensive food and beverage area. This will be located adjacent to the pavilion which gained consent in autumn 2020.
Robert Ware, Chief Executive of Conygar commented: “We are delighted to be able to submit our application for this exciting next phase of the Island Quarter.”
Griffin Mining 114.5p £198m (GFM.L)
The new Mining License (ML) covering both the Zone II and Zone III areas has finally been approved and issued by the Chinese Ministry of Land and Natural Resources. The new mining licence will allow the mining of significant additional resources. The granting of the 3rd Stage Zone III Project Final Acceptance Permit will increase the annual mined ore from Zone III to from 820,000 tonnes in 2020 to 1.1 million tonnes in 2021, but with the increased ore accessed from Zone II, this will increase to over 1.5 million tonnes per annum in 2022, increasing as more capital development is completed. No additional capital is required for any above ground processing facilities which were upgraded and completed some time ago whilst waiting for the new ML. The Company remains debt free.
Sirius Real Estate 96.75p £1,011m (SRE.L)
The owner and operator of branded business parks providing conventional space and flexible workspace in Germany, announces that it has completed three transactions totalling EUR26.0 million (including acquisition costs). These comprise two previously announced acquisitions (Norderstedt, Hamburg for EUR9.1 million and Nuremberg for EUR13.7 million), and a new acquisition for EUR3.2 million immediately adjacent to the Company’s existing Mannheim II business park.
Great Western Mining 0.22p £6.6m (GWMO.L)
GWMO has poured first gold and silver and produced a doré bar as a pilot exercise using material from test spoil heaps on its Mineral Jackpot property in Mineral County, Nevada. The success of the trial proves the concept of being able to extract gold and silver from up to 12,000 tons of material available from 38 spoil heaps on the property.
Jersey Oil & Gas 125.5p £27.4m (JOG.L)
The independent upstream oil and gas company, focused on the UK Continental Shelf (UKCS) region of the North Sea, has reached a settlement with TGS-Nopec Geophysical Company ASA (TGS) pursuant to an agreement entered into with TGS on 9 February 2018. Under the agreement, TGS claimed uplift payments from JOG totalling US$1,050,838 in respect of: a) licence awards to Jersey Petroleum Limited (JPL) in the Oil & Gas Authority’s (OGA’s) 31st Supplementary Offshore Licencing Round; and b) the acquisition by JPL of Equinor UK Limited’s 70% interest in Licence P2170 (Verbier). Jersey Oil and Gas has disputed the validity of both claims, following which two hearings have taken place in the Norwegian courts. On the basis of legal advice received, JOG has negotiated and agreed a final settlement payment to TGS of US$850,000.
Following this payment, which is settling a one-off and isolated dispute, the group’s estimated cash position at 31 December 2020 was c.£5m, which is c.£3m ahead of its initial 2020 budgeted year-end cash balance.
JOG looks forward to updating shareholders on the group’s Greater Buchan Area development project during the course of Q1 2021.
Goldplat 7.9p £13.4m (GDP.L)
The gold producer, with international gold recovery operations located in South Africa and Ghana and an a held for sale underground mining operation in Kenya (Kilimapesa), is pleased to provide an update on the sale of Kilimapesa. As announced on 1 October 2020, the term sheet was extended to 31 December 2020 based on certain conditions. The parties have now agreed to extend the term sheet and exclusivity period again, from 31 December 2020 to 28 February 2021. The value of the consideration shares to be issued has been increased from USD1,500,000 to USD1,750,000, and an option that can be exercised by Mayflower has been included for consideration to be paid in cash of USD1,500,000 rather than shares. The extension is also dependent on Papillion creditor deeds being executed by 15 January 2021, a majority of Papillon shareholders confirming pre-approval of the proposed reverse takeover by 20 January 2021 and GMR to being put in a position to complete due diligence by 25 January 2021.
To date, from signing of initial terms Mayflower has supported Kilimapesa with a subordinated loan of USD400,000 and has committed to support Kilimapesa with a further USD100,000, if required, before completion of transaction.
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