Small Cap Feast
Small Cap Feast – 07/09/21
Dish of the Day:
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Off the Menu:
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What’s Cooking in the IPO Kitchen?
Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA
GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September
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.
Arecor Therapeutics 236p £65.3m (AREC.L)
The biopharmaceutical group advancing today’s therapies to enable healthier lives, today announces that it has signed a formulation agreement with Intas Pharmaceuticals Ltd. Under this agreement, Arecor will use its proprietary formulation technology platform Arestat™ to develop a differentiated product for Intas. The new product formulation supports improved usability for the patient compared to current marketed products and in particular facilitates home use outside of a healthcare environment. Intas will fund the development work and has the option to acquire the global rights to the new proprietary formulation and associated Intellectual Property under a technology licensing model (with associated potential milestone and royalty payments) to further develop and commercialise the product. Accord Healthcare, an affiliate of Intas, will, upon successful completion, promote this product across all major markets.
Blackbird 36.5p £123.4m (BIRD.L)
The developer and seller of the market-leading cloud native video editing platform, Blackbird, today announces that a global broadcast company has licensed its core video technology, Blackbird, including its patented video codec technology, for a 5 year period. This is the first OEM licensing deal of its kind for Blackbird and is worth an expected minimum of EUR2m over the contract length. The customer is globally recognised as a leader in live video technology for broadcast and new media productions. Through its range of products and solutions, the customer delivers high-profile and prestigious live sports, entertainment and breaking news content from around the world to millions of viewers daily – in real-time.
CAP-XX 6.25p £31.8m (CPX.L)
The manufacturer of ultra-thin prismatic and cylindrical supercapacitors, announced that Spire Health, the leading provider of respiratory remote patient monitoring (RPM), has selected the CAP-XX supercap to provide the peak power needed to deliver respiratory and pulse rate monitoring for pulmonary patients in the company’s new Health Tag garment-adhered sensor. The company’s original Health Tags used CAP-XX supercapacitors to deliver wellness alerts to consumers. The new Health Tag’s core focus is now healthcare, where the CAP-XX supercapacitors are used to notify a patient’s care team of changes in their health in an effort to enable early interventions and prevent hospital admissions.
Orosur Mining 23p £42.2m (OMI.L)
Orosur has been informed by its Colombian Joint Venture partner, Minera Monte Águila SAS that it has elected to exercise its right to assume operatorship of the Anzá Project in Colombia. Monte Águila is a 50/50 JV between Newmont Corporation (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited (TSX:AEM), and is the vehicle by which these two companies jointly exercise their rights and obligations with respect to the Exploration Agreement with Venture Option (Exploration Agreement) over the Anzá Project. The Anzá Project now moves into its fourth year of Phase 1 during which time a further US$4m is required to be spent pursuant to the Exploration Agreement.
Poolbeg Pharma 12.85p £64.25m (POLB.L)
The clinical stage infectious disease pharmaceutical company with a capital light clinical model, provides an update on the strengthening of its intellectual property (IP) position around lead product, POLB 001, a small molecule immunomodulator for the treatment of severe influenza. As detailed in the Admission Document, Poolbeg has a worldwide license for POLB 001 and is developing a strong IP portfolio with patent protections in place covering the use of the class of p38 MAP kinase (mitogen-activated protein kinase) inhibitors for the treatment or prevention of severe influenza and hypercytokinaemia (or “cytokine storm”). The Company continues to also evaluate POLB 001’s therapeutic uses beyond severe influenza. The US Patent and Trademarks Office examiner reviewing the patent application around POLB 001 has indicated to the Company that the majority of the claims, including the main claim are allowable. The main claim relates to the use of p38 MAP kinase inhibitors as a class of compounds, including POLB 001, for the treatment of severe influenza through modulation of the immune response. Poolbeg anticipates receiving a formal patent grant in due course. The European patent was granted prior to the IPO with claims to the treatment of severe influenza, which is characterised by symptoms that persist or recur for more than two days without signs of resolution, with a p38 MAP kinase inhibitor inhibiting the release of pro-inflammatory mediators from endothelial cells and pro-inflammatory cytokines from immune cells. This granted patent offers protection until 2037.
RA International Group 64p £110m (RAI.L)
The specialist provider of complex and integrated remote site services to Humanitarian, Governmental and Commercial organisations globally announced the award of a significant new contract in a joint venture with ECC, the US based global construction and environmental remediation contractor. The contract with US Navy Facilities Engineering Systems Command Far East is a five year contract for design and construction services supporting their base on the island of Diego Garcia in the Indian Ocean. The contract ceiling for this award is USD 249m and RA International and ECC will compete for individual task orders with four other awardees.
Semper Fortis Esports* 2.1p £88m (AQSE: SEMP)
The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, will be participating at the Stack Fest event (https://stack-fest.com/) to be held on 9-11 September with various events, panels and sub-events happening physically at the Olympic Park in London. The Company’s CEO, Kevin Soltani will be a guest speaker on the first day of the event. Kevin Soltani, CEO of Semper Fortis Esports, commented: “I am delighted to have been invited to speak at this major esports and games festival at which numerous leading sponsorship brands will be represented. I look forward to highlighting Semper Fortis’s ambitions in the space and connecting with industry leaders who are making big moves across the UK games ecosystem.
Shearwater 152p £36.2m (SWG.L)
The organisational resilience group that provides cybersecurity advisory and managed security services, announces that its group company, Pentest, has secured a one-year contract renewal worth $1m, with a global technology corporation. Under the terms of the renewal, Pentest will continue to deliver a range of vulnerability assessment and penetration testing services to the organisation. These services will continue to form a key function within the organisation’s global cloud technology infrastructure.
Star Phoenix 1.6p £2.4m (STA.L)
The Company focused on growth through attractive opportunities, announces that the Board of Directors has approved delaying all directors’ salaries and payments from 1 September 2021 subject to further review at the beginning of 2022 in accordance with the cash position of the Company at that particular time. This has been taken as a cash conservation measure to preserve the Company’s cash reserves whilst it seeks the collection of the monies owed to it by LandOcean, as updated in the Company’s announcement of 14 July 2021. The Company’s current cash resources are approximately US $1.4m. Absent any further monies from its case against LandOcean or the sale of any of its assets, the Company has sufficient cash resources until at least the end of Q1 2022 when the Tribunal makes a final award. Star Phoenix is seeking new hydrogen projects and divestment of rig and equipment assets in Trinidad. The Company has achieved the following developments since the previous update: Four offers of purchases of two production / workover rigs and other oilfield equipment have been received recently. The Board of Directors will undertake a review of those offers and will then decide how best to proceed. Secondly, a lease agreement for the equipment, including two fully equipped mud circulating tanks and one MCC unit equipped with two 250KVA generators, has already been executed at a rental fee of USD 570 per calendar day.
United Oil & Gas 2.8p £18.2m (UOG.L)
The growing oil and gas company with a portfolio of production, development, exploration and appraisal assets announced that, further to the signing of non-binding Heads of Terms as previously announced on the 28 July 2021, it has now entered into a binding sale and purchase agreement with Quattro Energy Limited to sell UK Central North Sea Licences P2480 and P2519 for a headline consideration of up to £3.2m (c. US $4.4m). United’s Chief Executive Officer, Brian Larkin commented: “The sale of United’s Licenses in the North Sea demonstrates our commitment to portfolio optimisation, which forms a key part of the Group’s strategy. The transaction proceeds will provide financial flexibility for the Company to grow its low-cost production business in Egypt and the Greater Mediterranean area, complemented with selected high impact exploration opportunities in the Caribbean and Latin America.”
Emily Liu, CFA, CAIA
0203 764 2344
0203 764 2345
*A corporate client of Hybridan LLP
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