Small Cap Feast

Small Cap Feast – 10th January 2022

Dish of the Day:

East Star Resources (EST.L) the Kazakhstan-focused gold and copper explorer, has raised gross proceeds of £3.1m by way of an oversubscribed placing and subscription of 62,000,000 new shares at a price of 5p, and has today been readmitted to the Official List of the Financial Conduct Authority by way of a Standard Listing following its acquisition of 100% of the share capital of Discovery Ventures Kazakhstan Limited, which holds an initial package of four licences in two producing but underexplored mineral belts in Kazakhstan.

Off the Menu:

No Leavers Today.

What’s Cooking in the IPO Kitchen?

SuperSeed Capital Limited, to join the AQSE Growth Market. The Company will invest in technology-led innovation primarily through unquoted funds managed by SuperSeed Ventures, the Company’s Investment Manager, with the objective of maximising the investors’ long term total returns – principally through capital appreciation. Mkt Cap and Capital to be raised TBC.
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 Jan.
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 £20m. Expected admission date Late Jan 2022.
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 mid Jan 2022.
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. Due late Jan 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 24th Jan 2022.

Breakfast Buffet

Cambridge Cognition 128.5p £38.5m (COG.L)

Cambridge Cognition Holdings Plc, which develops and markets digital solutions to assess brain health, has been awarded contracts for two clinical trials by a top 20 pharmaceutical company to assess the pro-cognitive effects of a new drug in schizophrenia. Together the contracts are worth £700k over two years. This is the second pharmaceutical client to award Cambridge Cognition major contracts for cognitive assessments for schizophrenia in the last year1. Approximately 30 clinical trials on new drugs for schizophrenia run every year2, demonstrating the potential for further sales in this therapeutic area.

Cornish Metals 26.5p £72.3m (CUSN.L)

The Company has received notice from Cornish Lithium Ltd (CLL) whereby CLL has elected to extend its option to explore the Company’s mineral rights in Cornwall, UK, for minerals-in-brine for a further 12 months. Under the Exploration and Option Deed entered into by the Company and CLL in January 2017, CLL has chosen to extend the Deed for an additional 12-month period in consideration for the issuance to the Company of shares in the capital of CLL equal to US$100k based on CLL’s last share issue price. Upon receipt of the shares, the Company will own 6,713,940 shares of CL. Cornish Metals granted CLL an option to explore for minerals in brine and geothermal waters on Cornish Metals’ mineral rights in Cornwall, UK, in January 2017. The Company will have a 25% free carried interest in CLL’s first project on the Company’s mineral rights which has a Bankable Feasibility Study completed on it. Following the Bankable Feasibility Study, the Company will be required to contribute its share of development costs or its interest will be diluted.

Empyrean Energy 5.95p £37.9m (EME.L)

Update on preparations to drill the Jade prospect at its 100% owned Block 29/11 permit, offshore China: Empyrean and China Oilfield Services Limited (‘COSL’) survey engineers have held several meetings over the past week resulting in a revised scope of survey works and providing a greater sea swell tolerance to conduct the well site survey required over the Jade drilling location. A shorter survey duration requiring 3-4 days of swell less than 1.7m now required before rig mobilisation and drilling. CNOOC EnerTech-Drilling & Production Co (‘CNOOC EnerTech’) team has made significant progress in securing critical pre-drilling permitting including Standby Vessel and Environmental Impact permits already being completed. A further five permits are in progress and expected in the coming weeks with the last of eight permits requiring the well site survey in order to complete.

Frenkel Topping 76p £88.8m (FEN.L)

The specialist professional and financial services firm focused on asset protection for clients, has acquired the entire issued share capital of Cardinal Management Limited. Cardinal works in close partnership with a number of key NHS Major Trauma Centres (“MTCs”) to provide a Major Trauma Signposting Partnership support service. The total maximum possible consideration for the Acquisition is £10m in cash, of which an initial £5m (which is subject to adjustment following a completion accounts process) will be paid on completion. The additional consideration of up to £5m may become due to the sellers of Cardinal on an earn-out basis linked to certain challenging financial performance targets relating to future growth and profitability of Cardinal between completion and 31 December 2025. For the year ended 31st March 2021, Cardinal generated revenues of £0.9m, reported a £0.3m profit before tax and with £1m net assets on the balance sheet as at 31st March 2021.

Gateley 219.5p £261.5m (GTLY.L)

Gateley, the legal and professional services group, announced the acquisition of Adamson Jones Holdings Limited for a total consideration of £2.5m. Adamson Jones provides intellectual property (IP) services encompassing patent, design and trade mark protection advice in the UK, Europe and around the world. In the year ending 31 March 2021, Adamson Jones generated revenue of c.£3.6m. This is the first acquisition Gateley has made on to its Business Services Platform. The Acquisition sets a solid foundation for the development of complementary business services with an IP and brands focus, working alongside the existing team within Gateley Legal, and enabling the business to widen its scope in an area where it already has a well-established and continually growing client base.

GENinCode 32.5p £30.7m (GENI.L)

The predictive genetics company focused on the prevention of cardiovascular disease, announces the filing of its Pre-Submission for Cardio inCode-SCORE with the Food and Drug Administration (FDA). Cardio inCode-SCORE is an in-vitro diagnostic test which assesses an individual’s combined genetic and clinical risk to predict and prevent cardiovascular disease (CVD). Following extensive exchange of information and constructive discussions with the FDA, GENinCode has been invited by the FDA to file its Pre-Submission for Cardio inCode-SCORE. This marks the commencement of the regulatory pathway for US market approval, which is anticipated later this year. The FDA views Pre-Submission as a structured process for managing and tracking interactions between manufacturers and the FDA about the application for approval or clearance, prior to final submission. It is an interactive process designed to give the opportunity to obtain FDA feedback on the application with the goal of making the end submission process more efficient.

Landore Resources 25.5p £28m (LND.L)

Update on the progress of the drilling programme for 2020-21 on the BAM Gold Deposit, Junior Lake Property, Ontario, Canada. Highlights: BAM Gold Deposit Western Extension: The recently completed drilling has confirmed the continuation of the BAM Gold Deposit along strike to the west with drill hole 0421-823 intersecting 9.25 metres at 4.04 grams per tonne gold, including 1.01 metres at 31.50 grams per tonne gold. Visible gold was identified in five of the eight holes drilled. The mineralisation remains open to the west and down dip. Mineral Resource Update: All data from the 2020-2021 drilling campaign has now been compiled and forwarded to Cube Consulting of Perth, Western Australia (“Cube”) for the finalisation of the Mineral Resource Estimate update on the BAM Gold Deposit, the results of which are expected for completion and publication by early February.

Marks Electrical 119.5p £125.4m (MRK.L)

The fast-growing online electrical retailer, today announces its trading update for its third quarter ended 31 December 2021. Financial highlights: Record trading period in Q3-22 with 27.4% revenue growth to £22.3m (Q3-21 £17.5m), including a strong performance during the seasonally important Black Friday and Christmas trading events. Year to date (YTD) revenue growth of 55.0% to £59.8m (2021 YTD: £38.6m), keeping the business on track to deliver its 2022 revenue target. Operational leverage achieved during the period, driving margin expansion, with the Group on track to achieve its full-year Adjusted EBITDA margin target of 9%. Maintained inventory levels during peak trading period and continued focus on working capital management. Operational highlights: Growing in-house fleet of delivery vehicles achieved record delivery volumes during the quarter, with scope for further capacity utilisation as we continue to grow. Market share growth in Major Domestic Appliances segment continued during the period. Strong performance in Television segment with YTD revenue from this category up 103% YoY. Improved Trustpilot rating from 4.7 to 4.8.

Netscientific 86p £18.6m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group, announces that its wholly owned subsidiary ProAxsis Limited , has provided a CEO update on the progress it made during 2021. The CEO update notes key achievements during 2021, including an accelerated R&D programme, enhancement to the existing product portfolio and development of new revenues streams for 2022 and beyond. Much of the development work has been co-funded by grant support, including from Invest Northern Ireland and Innovate UK. The key development work included the development of NE Premium assay with 100-fold improved sensitivity to the current product; the in-licensing from the University of Geneva in February 2021 of a highly novel protease-related immunoassay for use in the monitoring of Bone Health in conditions such as osteoporosis; the in-licencing in June 2021 from AstraZeneca of their internally-developed COVID-19 serology (antibody) assay; and the development of a 2-plex protease multiplex panel, which enables simultaneous measurement of two key proteases (neutrophil elastase and proteinase-3), which have been associated with COVID-19 symptom severity.

Tavistock Investments 4.5p £24.6m (TAVI.L)

Tavistock has entered into an agreement to purchase 21% of the issued share capital of LEBC Holdings Limited. LEBC is an independent financial advisory group that has three wholly owned subsidiaries, two of which are regulated by the Financial Conduct Authority, LEBC Group Limited and Aspira Corporate Solutions Limited, and a third which is unregulated, LEBC Hummingbird Limited. Total cash consideration of £10m. The LEBC group was established in 2000 as a provider of financial planning and consultancy services to private and corporate clients. LEBC employs 46 financial planners, has over 75,000 clients and an estimated £5b of assets under advice, of which over £500m is invested in LEBC’s model portfolio service. LEBC’s draft accounts for the financial year ended 30 September 2021 show that it achieved gross revenues of approximately £15m and generated EBITDA of approximately £3.3m. At 30 September 2021, LEBC had gross assets of £9.6m and net assets of £5.6m. LEBC’s largest shareholder is the AIM quoted company, B. P. Marsh & Partners Plc which owns 60% of LEBC’s voting rights. BPM is a specialist investor in early-stage financial services intermediary businesses in the UK and overseas.

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