Small Cap Feast
Small Cap Feast – 10th June 2022
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What’s Cooking in the IPO Kitchen?
AssetCo plc, intends to join re-join AIM. The Company’s strategy is to develop an agile asset and wealth management company that meets the needs of investors in the 21st century by acquiring, managing and operating asset and wealth management activities and interests, together with other related services. The Company is in the process of acquiring the entire issued share capital of River and Mercantile Group plc (RMG), via a reverse takeover and therefore a Readmission Document is required for the enlarged group. Due 15 June 2022.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.
Silverwood Brands (AQSE:SLWD), has signed a conditional share purchase agreement for the acquisition by the Company of Balmonds Skincare Ltd, a UK based skincare company that manufactures cosmetic skincare products primarily for consumers who suffer from skin conditions such as eczema, psoriasis and dermatitis. Balmonds’ product line is made from natural ingredients that work to protect and hydrate sore and inflamed skin. The proposed acquisition of Balmonds constitutes a reverse takeover under the AQSE Growth Market Rules. AGM to be held on 15 June 2022.
4Basebio 465p £57.3m (4BB.L)
The Cambridge based life sciences group focused on the development of synthetic DNA and non-viral vectors for use in the field of cell and gene therapies and vaccines, announces its collaboration with University of Alabama and Teesside University in a research project aimed at developing an effective treatment for Neurofibromatosis Type 1 (NF1).The universities have been awarded almost $1m from the US based Gilbert Family Foundation to fund a 3 year research program aimed at developing a life-changing gene therapy with applicability to all NF1 patients and which will use a non-viral vector for targeted delivery of full length NF1 DNA. 4BB will support this project by designing and developing a 4BB non-viral Hermes™ vector and 4BB hpDNA™ sequence as payload for UA and TU. NF1 is a genetic condition which causes usually benign tumours to develop anywhere in the nervous system, including the brain, spinal cord and nerves. NF1 is caused by mutations in the NF1 gene which regulates the production of neurofibromin protein.
AEX Gold 46p £80m (AEXG.L)
The independent mining company with an unrivalled land package of gold and Strategic Mineral assets covering an area of 7,615.85km2 in Southern Greenland, announced after over a year of discussions that it has now signed a non-binding heads of terms with ACAM LP to establish a special purpose vehicle and create a joint venture for the exploration and development of its Strategic Mineral assets for a combined contribution of £36.7m (circa C$58m). Subject to negotiation of the final terms of the JV, ACAM will invest £18m (circa C$28.5m) in exchange for a 49% shareholding in the SPV, with AEX holding 51%. AEX is expected to contribute its Strategic non-precious Mineral licences as well as a contribution in kind, valued, in aggregate, at £18.7m (circa C$29.5m) in the form of site support, logistics and overhead costs associated with utilizing its existing infrastructure in Southern Greenland to support the JV’s activities. An option for further future funding of £10m is to be available on the achievement of agreed milestones.
Angus Energy 1.17p £16.1m (ANGS.L)
The Company updates on progress on its commissioning schedule at Saltfleetby. With all equipment necessary to export sales gas now on site, the process has been handed over to commissioning specialists. Whilst the last of the electrical and mechanical tie-ins are being completed early next week, they will continue with hydrotesting (already largely complete,) nitrogen leak testing, final verification and function testing of all pressure equipment and finally live gas testing with well-head gas. This exercise is not wholly sequential as there is considerable overlap of function testing and leak testing. Contractors are working toward a target date for first flow of well-head gas through the plant during the week commencing 20 June 2022 with first export nominations the week following. Angus looks forward to providing updates on detailed progress through the remainder of the commissioning sequence. The Company has concluded all preparatory risk assessment and planning for the forthcoming side-track at Saltfleetby and has advised suppliers of a spud date for drilling of 21 July 2022.
Empyrean Energy 1.4p £11.2m (EME.L)
Update on the completion of post well analysis and entering the second phase of exploration and drilling the Topaz prospect at its 100% owned Block 29/11 permit, offshore China. Post-well analysis confirmed reservoir quality better than pre-drill estimate with regional seal confirmed and depth conversion approach validated. As a part of post-well evaluation, CNOOC geochemical and basin modelling experts provided excellent assistance in interpreting the critical elements of effective regional oil migration pathways-leading to positive implications for the Topaz prospect. Based on post drill technical evaluation, and CNOOC-assisted migration pathways assessment, Empyrean has decided to enter the second phase of exploration and drill the Topaz prospect.
Ergomed 1,040p £517.6m (ERGO.L)
AGM Statement from the Company focused on providing specialised services to the pharmaceutical industry. “Ergomed started 2022 from a position of strength, with a robust order book and strong sales momentum continuing from prior years. Over the first few months of this year, the Company has built further on this momentum, thanks to our resilient services-based business model and the global strength of our offering following the successful integration of businesses acquired in prior years. Underpinning this, Ergomed is in a robust financial position with a strong balance sheet and cash generation. The Company has made further significant strategic progress in the current year. Our organic growth has continued with year-to-date revenues increasing in line with prior trends. Our expansion into new territories is ongoing, with a new legal entity established in France and others in progress in Romania, Italy, Ireland and Portugal. We have also continued to further strengthen the Company’s leadership team, attracting senior executives with significant prior experience in the CRO, PV and pharma services sectors, and announced today the appointment of Anne Whitaker as a new independent Non-Executive Director.” “With continuing strong sales and order book growth, together with effective cost management, in 2022 Ergomed continues to demonstrate its resilience and defensive characteristics, notwithstanding the challenging macro-economic environment, and the Board expects to deliver the anticipated trading growth and financial results for the full year in line with current market expectations.”
Eneraqua Tech 270p £89.7m (ETP.L)
A specialist provider of energy and water efficiency solutions, announced the award of two English local authority contracts to deliver net water neutrality pilot programmes. The contracts will see Eneraqua Technologies’ subsidiary, Cenergist Ltd, supply and install Control Flow HL2024 systems in existing homes to improve their water efficiency. The water saved will then offset the water used by new homes built in the areas thereby addressing local water stress issues. The Control Flow HL2024 products have proven water savings of up to 26% in existing homes. This is the first use of Control Flow HL2024 in a net water neutrality program. Water stress already affects many areas in the UK and globally and is expected to worsen with the effects of climate change in the coming years. Commenting on the awards, Eneraqua Technologies CEO, Mitesh Dhanak, said: “Control Flow HL2024 is a proven product and we are delighted that it has been chosen for these water neutrality programmes. This approach provides a cost-effective solution for new build homes in water stress areas. As well as the UK, water stress affects many areas in Europe and internationally.”
Light Science Tech 8.8p £15.2m (LST.L)
Light Science Technologies Holdings plc, the controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, provides an update on current trading. As of today’s date, the sales pipeline of quoted work is over £60m, of which there are forward orders and contracts worth £18m. The sales pipeline continues to grow with a number of factors contributing, including the pressing need for food security and to grow more produce locally, sustainably and energy efficiently. However, the positive pipeline growth is negated by the elongation of the sales cycle due to a number of factors, including government grant delays and input inflation experienced by growers which cannot be passed on to customers, which has led to capital expenditure by growers being delayed. As a result, Group revenue is now expected to be approximately 35% below market expectations for the year ending 30 November 2022. Accordingly, the Group currently expects to report a loss before tax for the current year in the region of £2m. The benefit of the conversion of the pipeline will, in the Board’s view, fall into the next financial year. Notwithstanding the delay in revenue, the Board is confident the overall prospects for the Company remain strong.
Midatech Pharma 10p £9.8m (MTPH.L)
The R&D biotechnology company focused on improving the bio-delivery and biodistribution of medicines, announces that Rolf Stahel, Chairman and non-executive director, intends to retire after the Company’s AGM on 20 June 2022. It is expected that Dr. Stephen Parker will be appointed as non-executive Chairman of the Board, following the AGM. Stephen Parker has over 30 years’ experience in leadership roles both in the healthcare industry and in advisory roles. Currently, he is Chairman of Sareum Holdings plc (AIM:SAR) and Drishti Discoveries Ltd, a Non-Executive Director of MGC Pharmaceuticals Ltd (LON:MXC) and an Executive Director of sp2 Consulting Limited. Previously, Stephen held a number of executive and board positions at various public and private biotech companies and senior roles at leading investment banks. Stephen has an MBA from City University and a D.Phil. in biochemistry from Oxford University. Separately Midatech announced that investigators from Columbia University Irving Medical Center and New York-Presbyterian will present interim results from their ongoing Phase 1 study on Midatech’s MTX110 in Diffuse Intrinsic Pontine Glioma at The International Symposium on Pediatric Neuro-Oncology that will take place on 12-15 June 2022 in Hamburg, Germany.
Netcall 81.5p £122.1m (NET.L)
The leading provider of intelligent automation and customer engagement software, has signed a significant multi-year contract for the Liberty platform with a S&P 500 international financial services firm with operations spanning 120 countries. The revenue for the initial 3 year cloud subscription period is $19m and is expected to generate similar margins to Netcall’s overall group margin, thereby providing a significant contribution to the Group’s revenue and profit. As a result, the Board now expects adjusted EBITDA for FY23 to be significantly ahead of its previous expectations. The customer has selected Liberty Create, Netcall’s low-code offering, and Liberty RPA to build and deploy powerful business applications across its global operations, with a view to delivering better outcomes for customers and other stakeholders. The contract win follows a global framework agreement announced on 9 August 2021 and the initial applications going live in North America and Europe.
Origin Enterprises 437.5Euro cents EUR506.2m (OGN.L)
The international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals, today issues its FY22 Trading Update for the three and nine months ended 30 April 2022. Strong performance in the seasonally important third across all segments. Group revenue increased 47.3% to EUR880.6m in Q3 and 50.2% to EUR1,757.7m in the year-to-date. On an underlying basis, at constant currency, revenues increased by 45.4% in Q3 and by 46.4% year-to-date. High crop prices continue to support strong on-farm sentiment, with crop establishment and weather conditions generally favourable across all three segments. Increase in underlying volumes year-to-date of 2.3%, excluding crop marketing volumes, despite a decrease in Q3 of 8.8%. Strong volume performance across the Group’s seed and crop protection portfolios were offset by reduced fertiliser demand due to significantly higher raw material costs. EUR40m share buyback programme 96% complete. As announced separately today, Chairman Rose Hynes to be succeeded by Gary Britton at the 2022 AGM. Guidance for fully adjusted diluted earnings per share, excluding any impact of the on-going share buyback programme, for FY22 in the range of 64 to 68 cent.
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