Small Cap Feast

Small Cap Feast – 05/10/21

Dish of the Day:

No joiners today.

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What’s Cooking in the IPO Kitchen?

Bens Creek Group to join Aim. Bens Creek, together with its subsidiaries, will, on Admission, own and operate a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia and eastern edge of the Commonwealth of Kentucky, in the central Appalachian Basin of the eastern United States of America. The Mine’s operations are located primarily in Mingo County, West Virginia. The Mine includes a wash plant and rail loading facility located on the freehold land. Capital to be raised on Admission: £7m. Anticipated market capitalisation on admission: £35m. Due 19 Oct.
M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.
Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m in the Initial Placing. Due 18 Oct.
Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct
Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October.
Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.
Responsible Housing REIT to join the Main Market (Premium) 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. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.
Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. The company last said Sept 13th that it expected to list end of September which has now passed.
Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.
Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.
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. It pushed back its AIM float on 30th September from end September to late October. It last night said that the amount to be raised is still yet to be confirmed.
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.

Breakfast Buffet

Accsys Technologies 158.5p £305m (AXS.L)

Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today announces that it has completed the refinance of its Group debt facilities through a new bilateral agreement with ABN AMRO, one of Accsys’ existing relationship banks. The new EUR60m 3-year bilateral facilities agreement with ABN AMRO comprises a EUR45m Term Loan Facility and a EUR15m Revolving Credit Facility RCF. The EUR45m Term Loan will be fully utilised to repay all of the Group’s existing debt, with the exception of the NatWest facility held by the Tricoya® consortium which will remain in place. The applicable interest rate for the Term Loan will vary between an all in cost of 1.75% and 3.25% depending on net leverage, resulting in a significant improvement compared to the previous facilities which had a weighted average cost of approximately 6%. The RCF interest rate will similarly vary, but between 2.0% and 3.5% above EURIBOR. The new facilities are secured against the assets of the Group which are 100% owned by the Company and include customary covenants such as net leverage and interest cover.

Altitude Group 35.5p £25.1m (ALT.L)

The operator of a leading marketplace for personalised products announced the appointment of Graham Feltham as Chief Financial Officer. He has been appointed to the Board with immediate effect. Further to the announcement on 25 June, Graeme Couturier has resigned from the Board with immediate effect and will leave the Company following a short handover period with Graham. Graham Feltham is an experienced public company CFO, and joins from AIM listed Newmark Security plc, where he was appointed CFO in 2019. Graham began his career at Ernst & Young, where he qualified as a Chartered Accountant in 2000. Subsequently, Graham worked at Belron International Ltd, the world’s largest vehicle glass repair and replacement company. Following his time at Belron, Graham spent approximately five years at StatPro Group plc, an AIM listed Software development group, as European Financial Controller and Group Financial Controller, where he managed the external financial reporting and performance and analysis teams. Following StatPro, Graham spent over four years as Group Financial Controller of Safetykleen Group, a private equity owned group specialising in a recurring book of business in surface cleaners and with annual revenues of over £235m. Graham played a key role in the sale of Safetykleen by Warbug Pincus to APAX Partners for £800m in 2017. He joined Newmark Security from Safetykleen in 2019.

Altus Strategies 71p £57.1m (ALS.L)

Updated independent Mineral Resource Estimate MRE has been prepared in accordance with the JORC Code, for the Tabakorole gold project located in southern Mali. Tabakorole is subject to a Joint Venture with Marvel Gold Limited (ASX: MVL). Altus holds a 49% equity interest and 2.5% Net Smelter Returnroyalty on the Project. Exploration activities at Tabakorole are being funded by Marvel. 17,300,000 tonnes at 1.2 g/t gold (“Au”) for 665,000 ounces in the Inferred category; 9,200,000 tonnes at 1.2 g/t Au for 360,000 ounces in the Indicated category; 24% increase in indicated ounces and 7% increase in inferred ounces; 70% of the MRE is situated within 150m of the surface; Preliminary high metallurgical recoveries indicate simple processing flowsheet; Shallow, higher-grade parallel zones have contributed to upgraded MRE; MRE remains open in parallel zones and at depth; Resource expansion drilling programme planned to commence in Q4 2021; Altus holds 49% of the Project and a 2.5% NSR royalty on Tabakorole gold production.

NetScientific 124.5p £3.5m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group, announces that its portfolio company, PDS Biotechnology Corporation (Nasdaq: PDSB), has announced the completion of enrolment for the first stage of the checkpoint inhibitor naïve arm of its VERSATILE-002 Phase 2 study for the treatment of recurrent and/or metastatic human papillomavirus (HPV16)-associated head and neck cancer. 90% of HPV-associated head and neck cancers are reported to be caused by HPV16 as reported by a study published in the Journal of Clinical Medicine. VERSATILE-002 is studying two groups of HPV16-positive head and neck cancer patients whose cancer has returned or spread. The first group has not been previously treated with a checkpoint inhibitor (CPI naïve). The second group of patients have failed multiple treatments including checkpoint inhibitor therapy (CPI refractory). As specified in the clinical trial design, objective response is measured by radiographic tumor responses according to RECIST 1.1 (tumor reduction of 30% or more). If objective response is achieved among at least four of the first 17 patients in the CPI naïve arm, this will trigger advancement to the second stage of the study arm and enrolment of the planned 54 patients in the CPI naïve arm. The trial is being conducted in collaboration with Merck & Co.

Pelatro 45p £20.4m (PTRO.L)

The telecom Customer Engagement Hub software specialist, announced a new contract. The mViva platform has been chosen by a small southern European telco, which is part of a large European telecom group, for campaign management operations. The contract is largely recurring in nature and is expected to contribute about $600k in revenue over three years. Commenting on the win, Subash Menon, Managing Director and CEO said “We are delighted to sign up this new customer in Europe. This should further strengthen our activities and presence in Europe, paving the way for more contracts in the region”.

PetroTal 25.25p £222m (PTAL.L)

PetroTal Corp. announced the 30-day initial production rate of over 7,700 barrels of oil per day for well BN-8H. Well 8H delivered over 7,700 bopd average production during its first 30 days of operation, with the most recent rate at 7,575 bopd; · As of October 3, 2021, during its first 30 days of operation, the well has produced 231,000 bbls; Well 8H is outperforming management expectations; and, Based on the 8H well’s ongoing performance and an expected $45/bbl oil netback, the 8H well should pay out in approximately 45 days, overall. PetroTal has also announced it had entered into additional put options with strike prices of $70/bbl Brent oil for approximately 25% of the H1 2022 management production profile. PetroTal continues to play a key role in bridging communication efforts between the government and local residents by promoting some of their key initiatives directly into the community. In order to create alignment with all stakeholders, PetroTal’s efforts include local labor allocation, financial support to develop sustainable projects, and intellectual resources to execute on those local projects.

SimiGon 4.75p £2.4m (SIM.L)

The specialist in modelling, simulation and training solutions has been awarded a contract by the United States Marine Corps (USMC) to provide Virtual Reality (VR) simulators. The Company will provide the Marine Corps Recruiting Command with SimiGon’s SIMbox-based F/A-18C and AH-1Z low-cost, portable VR simulation devices. Under the Contract, SimiGon is to deliver a turnkey hardware-software solution for up to 25 devices over a three-year ordering period, out of which, SimiGon received Delivery Orders for 17 reconfigurable VR simulators. The simulation devices are comprised of SIMbox-based F/A-18C and AH-1Z simulation software modules and Commercial Off the Shelf (COTS) hardware. The software will utilize SimiGon’s analytics capability to track performance of air candidates inside the simulation and automate reports for the Recruiting Command.

Sportech 38p £71.725m (SPO.L)

The international betting technology business, announces that further to the Company’s announcement on 6 August 2021 and specifically the information on the Company’s exclusive discussions to potentially sell its terrestrial lottery supply contract, the period of exclusivity afforded to the potential buyer has been extended to 29 October 2021 in order to bring the negotiations and any resulting transaction to a conclusion. There can be no certainty that this transaction will proceed and a further announcement will be made if and when appropriate.

Thor Explorations 0.93p £16.2m (THR.L)

Commercial production has been achieved at its wholly owned Segilola Gold Mine located in Osun State, Nigeria. First Gold poured in July 2021. The mine is fully operational and operating at the target daily mine production rate. The process plant is operating in-line with its design throughput capacity of 715,000 tonnes per annum.

Yooma Wellness 51p £49.7m (AQSE:YOOM)

The vertically-integrated global wellness platform that develops and markets a portfolio of wellness brands, announced today that it has completed the acquisition of Tokyo-based Vertex Co., Ltd. The transaction is valued at US$12m with $2.5m up front and was completed after market close on Friday, October 1. Vertex sells a range of proprietary wellness products in Japan through various home shopping networks; including QVC, Fuji TV, Nihon TV and others; as well as popular online marketplaces such as Rakuten, Yahoo! Shopping, and Amazon, and Vertex’s own Shop-V. The acquisition adds new product lines to Yooma’s wellness offerings, increases its customer base and the size of its distribution network, and provides a foothold in the Japanese marketplace for further expansion into Japan and the rest of Asia.

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