Small Cap Feast

Small Cap Feast – 07 February 2022

Dish of the Day:

Artemis Resources ltd, (ARV.L) an ASX listed mining exploration and development company has joined AIM. The Company owns projects based in the Pilbara region of Western Australia, the Greater Carlow Gold-Copper-Cobalt Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara. The Company also owns the Radio Hill processing plant that is currently on care and maintenance. This plant is strategically located only 35km from the Greater Carlow Project. Mkt Cap approximately £52m, Capital raised £5m.

Off the Menu:

No Leavers Today.

What’s Cooking in the IPO Kitchen?

GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended will carry on business as a Real Estate Investment Trust, subject to meeting the necessary qualifying conditions. The Company will invest, predominantly, in independent Co-Living Asset, both operational and under development, let to a diversified mix of residents, located in urban centres in the UK and Ireland where there is a shortage of high quality, affordable residential accommodation. Due March.
Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb.
Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.
Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Due Early Feb.
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Feb.
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £10.7m. Expected admission 9th Feb.
Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Delayed until second half of Q1 2022.
Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due early Q1 2022.
Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Due early Feb.
Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in. Delayed until Mid-Feb. Mkt Cap and Capital to be raised TBC.

Breakfast Buffet

Applied Graphene 25.5p £16.4m (AGM.L)

The producer of specialty graphene nanoplatelet dispersions, will be taking part in two events over the coming months across its key market sectors. AGM plans to showcase the Company’s latest developments in graphene dispersion technology at both the AMPP Annual Conference + Expo and the American Coatings Show. AGM’s graphene nanoplatelet dispersions offer an innovative approach to combatting corrosion which is a more environmentally friendly alternative to zinc-based chemistries. Formulators can maximise the potential of existing additives in synergy with graphene to significantly extend the life of coating materials.

Igas Energy 16.27p £20.4m (IGAS.L)

Kate Coppinger has accepted an invitation to join the Board of IGas as an Independent Non-executive Director with immediate effect. Kate will be a member of the audit and remuneration committees. Kate is currently Non-executive Director at Serica Energy plc, an AIM listed, independent UK natural gas producer. Kate initially worked for CIBC World Markets as a research analyst before joining Harrison Lovegrove in 2000 where she moved into transaction execution. Following the acquisition of Harrison Lovegrove by Standard Chartered Bank in September 2007, Kate continued in oil and gas M&A transactions. In 2014, she was appointed Managing Director, Oil & Gas Corporate Finance, where she was responsible for origination and execution of transactions for European clients, a position she held until leaving Standard Chartered Bank in 2020.

Insig AI 39.58p £41.74m (INSG.L)

Insig AI has been selected for PwC’s Scale FinTech programme. The programme is designed to give access to new commercial opportunities within PwC as well as among its clients. After an extensive selection process, Insig AI was one of only nine companies this year chosen from more than 700 applicants from around the world. Insig AI is also the only FinTech with ESG expertise on the programme. This is the fifth year that PwC, in partnership with the consulting company GrowthBuilders, has run the Scale FinTech programme, targeting technology scale-ups with innovative FinTech solutions. Steve Cracknell, Chief Executive of Insig AI, commented: “It is a great achievement to be selected, against strong global competition, for PwC’s Scale FinTech programme. This is a fantastic opportunity for Insig AI to gain exposure to potential customers, and to engage with the experts at PwC who are also trying to understand and solve their clients’ fast-evolving ESG challenges.

Nanosynth 0.75p £15.6m (NNN.L)

Nanosynth announced the appointments of Peter Jeremy McNamara as Chief Operating Officer and Andrew Stedman as Chief Financial Officer with immediate effect. Both positions will be non-board roles. Peter Jeremy McNamara, known as Jeremy McNamara, is an experienced corporate leader with international board level roles across finance, marketing, operations and general management. He has led and turned around businesses in a variety of industries including manufacturing and professional services. Jeremy spent two years living in the USA and has worked across all continents. He is a Chartered Accountant. Andrew Stedman has 20 years of experience across multiple roles within finance and commercial functions, including a number of FTSE 100 organisations. He is a qualified CIMA accountant and has worked in various market sectors (including Consumer, IT, Telco, Healthcare and Construction) and across a number of continents. He is a specialist in Transformation, Commercial Support, Governance and Strategic Implementation and has a key focus on driving incremental cash value for a business in order to provide a sustained platform for growth.

Oracle Power 0.33p £8.7m (ORCP.L)

The drill programme over five geochemical target areas is underway at its 100% owned Jundee East Gold Project, located in the Eastern Goldfields region of Western Australia, which is located approximately 7km due east of Northern Star’s 5.4Moz Jundee Gold Mine. First pass Reverse Circulation programme with 62 holes, to a depth of 120m, for a total of 7,440m has commenced. First pass Reverse Circulation programme with 62 holes, to a depth of 120m, for a total of 7,440m has commenced. Maiden drill testing of a previously unrecognised greenstone belt with the objective to confirm its presence. Drilling to focus on five priority areas identified from a comprehensive geochemical programme conducted in 2021. The drill programme is expected to take between 4 to 5 weeks with results expected approximately 6 to 8 weeks from completion, subject to laboratory availability.

Personal Group 363p £113.3m (PGH.L)

The digitally-enabled employee benefits and services provider, has extended its existing agreement with Sage, the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs), with a new five-year contract. Sage Employee Benefits (SEB) is the Group’s digital workforce engagement platform for SMBs created and sold in partnership with Sage. The venture provides Personal Group with the opportunity to substantially increase its footprint within the SMB sector with potential access to Sage’s significant UK customer base whilst allowing Sage to expand its customer offering to include a best-in-class benefits and engagement solution. The new contract builds on the success of Personal Group and Sage’s partnership over the past year and will see the two companies continue to take this best-of-breed market proposition to more customers. Following its establishment several years ago, momentum in small to medium businesses using the SEB platform has picked up significantly in 2021 growing from 30 SMB users at the start of 2021 to c. 1,500 by the end of the year generating an increased gross Annual Recurring Revenue of £1.6m. The extension of the relationship with Sage is an example of the Personal Group’s continued execution and delivery of its growth strategy, extending its influence across multiple channels and markets. The contract demonstrates the growing opportunity and demand for wellbeing and benefits services within the SMB sector.

Sanderson Design Group 182p £129m (SDG.L)

The luxury interior design and furnishings group, announces that its Morris & Co. brand has signed an agreement with Harrods, one of the world’s leading luxury stores, to launch the Morris & Co. Home Emporium, a new shop-within-a-shop concept expected to open in Harrods’ flagship Knightsbridge store in April this year. The Morris & Co. Home Emporium, a destination for consumers to experience the world of William Morris, will sell the full breadth of Morris & Co. products across furniture, bedlinen, cushions, rugs, fabric, wallpaper, paint, tableware, throws, scarfs, and leather goods. A bespoke interior design service for residential or contract projects will also be provided. The Morris & Co. Home Emporium will have an online presence on Harrods’ website, where Morris & Co. products will be available for purchase. The launch is in line with the Group’s strategy of elevating its brands and driving a closer relationship with retail customers. The initiative also leverages the Group’s Morris Archive, one of the largest and most significant heritage resources in the UK interiors industry.

SpaceandPeople 12.25p £2.4m (SAL.L)

The promotional and brand experience specialist, today issues a pre-close trading update for the year ended 31 December 2021. Trading during the second half of 2021 began to recover as restrictions eased, although this was negatively affected to an extent due to Government advice in the key December trading period. Revenue for FY21 was substantially better than FY20 at £4.5m (FY20: £2.8m) with the re-opening of venues in the second half of the year leading to a bounce back in trading activity. As at 31 December 2021, the Group had cash of £1.35m (31 December 2020: £0.8m) with £2.0m of term loans (2020: £1.8m) and undrawn bank facilities of £0.75m (2020: £0.5m). Therefore, cash headroom at 31 December 2021 was £2.1m (2020: £1.3m). Trading has continued to recover in early 2022 in both the UK and Germany and the Board is increasingly confident on the outlook for the business and has the resources and opportunities to deliver sustained and improved financial performance. The Group expects to announce its 2021 results during the week commencing 25 April 2022.

Thor Explorations 13p £83.4m (THX.L)

Commencement of the 2022 exploration campaign at the Douta Gold Project in Senegal. The Douta Gold Project encompasses the Makosa Gold Deposit which currently comprises an Inferred Resource of 730,000 ounces of gold as announced in its maiden Mineral Resource Estimate published on 18 November 2021. A comprehensive exploration program, that commences with a first phase of 5,000 metres of reverse circulation drilling, has been designed to extend the strike extensions of the resource which remains open-ended along strike to the north. During 2022 the work program, which includes an additional 25,000 metres of RC and diamond drilling, is also targeting an upgrade to the existing resource at Makosa and testing three priority targets within the licence. The Company is also reported that operations at its 100% owned Segilola Gold Mine in Nigeria continued to perform at budget and design capacity without any unplanned stoppages during January. Total gold production for the month, was 7,041 ounces with regular gold exports occurring without any issues.

Zephyr Energy 5.15p £67.1m (ZPHR.L)

Update on fourth quarter 2021 hydrocarbon production from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S. Williston Basin Production update. Q4 operational production rates from the Company’s Williston Basin portfolio averaged 548 barrels of oil equivalent per day net to Zephyr. In addition, three wells on the Sundance Kid pad were brought online in late December, which added an additional net 106 boepd on an operated basis. As a result, Zephyr’s existing non-operated portfolio produced at a total run rate of 654 boepd by the end of Q4. Zephyr sold 43,185 barrels of oil equivalent during Q4, and net sales to Zephyr for the quarter. Production from the Company’s non-operated portfolio is expected to further increase over the coming months as additional wells from the existing portfolio are brought online and when the Company’s proposed $36m acquisition of further non-operated assets in the Williston Basin is completed as expected in mid-February.

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Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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