Small Cap Feast

Small Cap Feast – 08/09/21

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

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.

Breakfast Buffet

Accesso Technology Group 905p £373m (ACSO.L)

The premier technology solutions provider to leisure, entertainment and cultural markets, gives the following trading update ahead of its interim results which will be released on 14 September 2021. Through July, August and the Labor Day holiday period, accesso has built on excellent first half performance and continued to capture high demand for its technology solutions. As a result, trading during this period was very strong. The Group’s ongoing momentum now leads the Board to revise upwards its expectations for full year 2021 revenues to not less than $117m. This represents full recovery to 2019 trading levels. This rapid growth in revenue alongside a slower return to normal operating expenses will result in Cash EBITDA being significantly ahead of current market expectations for both the half and the full year. The Group is currently deploying additional resources across technology implementation, product development and customer support to calibrate for the new demand. As previously signalled, these investments will have a limited impact on Cash EBITDA in 2021; their full annualised effect will be felt in the 2022 financial year.

Cora Gold 18p £44.25m (CORA.L)

Advisory Panel of experts to support and inform the development of its DXRX platform – the world’s first diagnostic commercialisation platform for Precision Medicine. The new additions to the panel are Dr. Avi Kulkarni, Senior Vice President, Global Head of Life Sciences Research & Development at Cognizant, and Agathe Blanchon-Ehrsam, VP Long-Range Innovation and Portfolio Development at Danone. Dr. Avi Kulkarni has over 20 years’ experience in Personalised Medicine and brings a leadership view that integrates four pillars: strategy, operational performance, entrepreneurship and scientific experience and scholarship. Dr Kulkarni previously held management consultancy roles at IQVIA and Booz & Co, before spending a decade in the biotechnology industry around Stanford University helping to build three biotechnology start-ups: CareDx/XDx (CDNA), Lumen Therapeutics, and Aviir. Agathe Blanchon-Ehrsam, will join the panel as a Strategy Advisor for the DXRX platform. She brings over 20 years of strategic consulting experience. Agathe has helped to build brands and grow organisations with strategic and hands-on experience across a variety of business situations from vision setting, strategy definition and leadership team facilitation, to complex team management, marketing campaign design and KPI optimisation.

Diaceutics 115p £96.7m (DXRX.L)

The diagnostic commercialisation company, announces the addition of two new Key Opinion Leaders to its Advisory Panel of experts to support and inform the development of its DXRX platform – the world’s first diagnostic commercialisation platform for Precision Medicine. The new additions to the panel are Dr. Avi Kulkarni, Senior Vice President, Global Head of Life Sciences Research & Development at Cognizant, and Agathe Blanchon-Ehrsam, VP Long-Range Innovation and Portfolio Development at Danone. Dr. Avi Kulkarni has over 20 years’ experience in Personalised Medicine and brings a leadership view that integrates four pillars: strategy, operational performance, entrepreneurship and scientific experience and scholarship. Dr Kulkarni previously held management consultancy roles at IQVIA and Booz & Co, before spending a decade in the biotechnology industry around Stanford University helping to build three biotechnology start-ups: CareDx/XDx (CDNA), Lumen Therapeutics, and Aviir. Agathe Blanchon-Ehrsam, will join the panel as a Strategy Advisor for the DXRX platform. She brings over 20 years of strategic consulting experience. Agathe has helped to build brands and grow organisations with strategic and hands-on experience across a variety of business situations from vision setting, strategy definition and leadership team facilitation, to complex team management, marketing campaign design and KPI optimisation.

Gfinity 4.45p £41.4m (GFIN.L)

The esports and gaming solutions provider, today announces the acquisition of the trade and assets of SiegeGG Corporation, which operates siege.gg, a leading website for statistics, analysis and news around the Rainbow Six Siege video game. SiegeGG with immediate effect will become part of the fast-growing Gfinity Digital Media group. SiegeGG Corporation, the previous owners of SiegeGG, will be issued with 9m new ordinary Gfinity shares in consideration for the Acquisition. The founders will also be entitled to an annual payment of 30% of revenues generated by SiegeGG, subject to appropriate caps, in the first two years following the Acquisition, payable in annual instalments at the end of each year. Additionally, the founders will be entitled to an annual payment of 20% of the net profits generated by SiegeGG subject to appropriate caps, in the first two years following the Acquisition. The SiegeGG management team will commence full time employment contracts with Gfinity. For the year ended 31 December 2020, SiegeGG reported unaudited revenues of $0.1m and profit before tax of c$40k. It had net assets on 31 December 2020 of $68k. It has already exceeded these revenue and profit figures in 2021 as it continues to grow. Gfinity directors believe that this growth can be significantly accelerated through inclusion in the GDM network.

Ixico 80.5p £38.8m (IXI.L)

The AI data analytics company delivering insights in neuroscience, announces that it has been awarded a contract by a new biopharmaceutical client to support its Phase I multiple system atrophy clinical trial. Multiple system atrophy (MSA) is a rare condition of the nervous system that causes gradual damage to nerve cells in the brain. Conducted across investigator sites within the Unites States, the clinical trial will enroll patients with the parkinsonian subtype of MSA (MSA-P) to assess the safety, tolerability, and preliminary efficacy of GDNF gene therapy for this rapidly progressing condition. For the study, IXICO will provide advanced neuroimaging solutions involving structural magnetic resonance imaging (MRI), FDG-PET and DaT scans. The study is worth more than $500k over 4 years

Jadestone Energy 78.5p £365m (JSE.L)

The independent oil and gas production company focused on the Asia Pacific region, provides an update on the planned completion of the acquisition of the 69% operated interest in the Maari asset, shallow water offshore New Zealand. Further to the Company’s announcement on 31 August 2021, and following discussions with the seller OMV New Zealand Limited ), both Jadestone and OMV NZ have agreed to extend the long stop date under the Maari sale and purchase agreement to 31 December 2021. Both OMV NZ and the Company continue to work to satisfy the remaining outstanding conditions and to complete the transaction. However, and as previously disclosed, there is ongoing uncertainty in the timing of New Zealand Government approval. As a result, further updates on the Maari acquisition will only be made in the event that the transaction completes, or there is a material change in the status of the transaction.

Lansdowne Oil & Gas 0.68p £5.9m (LOGP.L)

The independent oil and gas company focussed on offshore Ireland, announces that at the AGM being held later today the following board changes will be announced and will come into effect on 09 September 2021. Viscount Torrington will step down from the Board with Jeffrey Auld taking over as Non-Executive Chairman of the Company. In addition Daniel McKeown has been appointed as an independent Non-Executive Director of the Company. Daniel graduated with a BA Economics & Political Science from the University of Dublin, Trinity College and a Diplôme de Grande Ecole (Commerce), Msc. in Management Science and Diplom-Kaufmann from ESCP Europe, Paris. He has more than 15 years of financial, commercial and operational experience in upstream oil and gas, having worked for Goldman Sachs, Perella Weinberg, SeaCrest Capital, Allied Irish Bank and Azinam Ltd.

Solid State 1065p £91.1m (SOLI.L)

AGM Statement from the specialist value added component supplier and design-in manufacturer of computing, power, and communications products. “The Board is pleased to report a continuation of the positive start to the year, as announced in July within our 2021 Annual Results. The order book is strong with an encouraging balance across industry sectors and regions, including a rebound in some sectors previously affected by COVID delays. The acquisitions of Willow Technologies and Active Silicon have quickly proven their value, resulting in new business which could not have been secured by either party alone. Solid State remains acquisitive for complementary technologies and international opportunities that would advance the Group’s ambition of broadening its product and market exposure. The Group continues to invest in developing its product offering for targeted strategic growth markets and ensuring Group resilience through sector and product diversity. The Board remains alert to the challenges presented by global supply chain and COVID risks. The Group balance sheet strength and the experience of the management team have contributed to a mitigation strategy which has assisted greatly in navigating many of the hazards. The Board remains optimistic about the Group’s prospects and will provide a trading update for the first six months of the financial year in October 2021.”

The Property Franchise Group 313p £100.3m (TPFG.L)

The UK’s largest property franchisor announced the acquisition of 80% of the issued share capital of The Mortgage Genie Limited (TMG). The initial consideration is £400k with an estimated additional payment of c.£90k once the post completion process has been satisfactorily finalised. TMG is a mortgage broker operating as an Authorised Representative of the PRMIS mortgage network which is owned by LSL Property Services Limited . In the year to 31 July 2020, TMG generated £950k of turnover and £71k of profit before tax and, with the improvement in the market since then, management are confident of exceeding that performance in the financial year ended 31 July 2021.

Zephyr Energy 6.15p £75.3m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development announced the acquisition of two additional non-operated near-term production portfolios in the Williston Basin, and a JV with Purified Resource Partners LLC related to ongoing non-operated business development efforts. The first acquisition purchased 72.5 net acres, resulting in an average 5.6% working interest (WI) in four drilled but uncompleted (DUC) wells operated by Prima Exploration Inc. (Prima) which target production from the Middle Bakken reservoir in Richland County, Montana, U.S. The second acquisition purchased an average 3.1% WI in 11 wells (one currently being drilled and 10 DUC wells) operated by Whiting Petroleum Corporation (Whiting), all of which target the Middle Bakken reservoir in Mountrail County, North Dakota, U.S. Total consideration for the new acquisitions is $968k which has been paid for from the Company’s existing cash resources. The JV with Purified is for the identification and execution of additional non-operated acquisitions. Purified’s principals have substantial experience in the Williston Basin, a basin in which they previously helped assemble and close over $70m of non-operated asset acquisitions and associated CAPEX for a private equity-backed vehicle. More recently, Purified assisted and/or co-invested in all four Williston acquisitions that Zephyr has closed this year, and their team will have the right to continue to co-invest up to 20% in future transactions.

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