Small Cap Feast

Small Cap Feast – 11th May 2022

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What’s Cooking in the IPO Kitchen?

EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more secure and can provide novel functionality, improve supply chain security and protect products from being copied. The Company has expertise in designing complex mixed signal ASICs, which combine digital and analogue functions onto a single chip. Mkt Cap TBC. Due late May 2022.
GS Chain, a company established with the purpose of undertaking acquisitions of an interest in an operating company or business in the technology sector, intends to list on the Main Market (Standard). Timing TBC.
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 May 2022.

Breakfast Buffet

1Spatial 43p £47.5m (SPA.L)

The specialist in Location Master Data Management (LMDM) software and solutions, announces that following a competitive tender, it has secured a four-year data management contract to support the replacement of the Transportation System Network (TSN) for the California Department of Transportation. The contract has a total value of approximately US$1.4m over 4 years, including US$0.7m in software licence revenue over 4 years, and has been secured in partnership with Rizing, a global SAP partner headquartered in Stamford, CT. The State of California is an existing client of 1Spatial, having already selected 1Spatial’s Next Generation 911 solution.

Advanced Oncotherapy 22.25p £103.8m (AVO.L)

The developer of LIGHT, the next-generation proton therapy system for cancer treatment, notes the recent publication of two papers showcasing the potential superiority of the LIGHT system, over other existing proton therapy systems, in the delivery of FLASH. In the first paper titled “Ultra-high dose rate radiation production and delivery systems intended for FLASH” written by Jonathan Farr, Chief Clinical Officer at the Company, and his co-authors, the LIGHT system was assessed and it has been shown that it is ideally positioned to deliver FLASH, as it is a ‘pulsed system’ sending out up to 500m protons in each burst, at 200 times per second. The number of particles per pulse has been noted as a critical FLASH parameter for other (electron) systems, and now it is becoming available from LIGHT for proton FLASH treatments. In the second paper titled “Treatment planning for FLASH radiotherapy: General aspects and applications to proton beams”2, Anna Kolano, a Medical Physicist at the Company, and her co-authors highlight the applicability of FLASH in patient treatment. FLASH proton therapy is currently administered clinically with “Shoot-Through FLASH Beams”, analogous to X-rays, as legacy proton systems require thick physical beam absorbers to achieve the lower energies required for patient treatment. However, the LIGHT system, which produces all energies electronically, is designed to deliver FLASH treatments anywhere in the human body. Hence, the LIGHT FLASH plan for “Conformal Scanned FLASH Beams” is conceptually superior to the Shoot-Through method.

DeepMatter Group 0.13p £4.9m (DMTR.L)

The digital chemistry data and software company, has signed a second multi-year licensing and collaboration agreement with Standigm Inc., a leading workflow artificial intelligence (AI) drug discovery company, based in South Korea with an increasing international footprint. The second agreement is expected to generate revenues for DeepMatter of £280k. DeepMatter’s first licensing agreement with Standigm was announced on 1 March 2022. Following the successful deployment of DeepMatter’s unique data and laboratory integration platform earlier this year, the agreement includes licensing for DeepMatter’s proprietary chemical structure and reaction data and machine-learning Retrosynthesis Software. DeepMatter and Standigm will collaborate to develop further AI-driven drug discovery capabilities, drawing upon the Group’s deep digital chemistry expertise.

Duke Royalty 37.25p £133.65m (DUKE.L)

Duke Royalty has successfully raised £18.5m (before expenses) under the Placing at the Issue Price of 35p. Cenkos and Canaccord acted as Joint Bookrunners in connection with the Placing. In addition, the Company has raised the maximum amount under the PrimaryBid Offer of £1.5m, before expenses, following the closing of the offer on 10 May 2022. The net proceeds from the Fundraising are intended to be used to invest further capital into existing Royalty Partners deploying a buy and build acquisition strategy, and new opportunities.

Horizonte Minerals 6.88p £261.8m (HZM.L)

The nickel development company focused in Brazil, has awarded the earthworks contract for the construction of its 100%-owned Araguaia ferronickel project to Copa Construço S.A.. Copa is a leading Brazilian company with extensive experience in mining projects and civil infrastructure, ranging from roads, viaducts, hydroelectric power plants, ports, airports and transmission lines. Copa has a portfolio of more than 2.5 bln cubic meters of concrete installed throughout the country and has quality management certification. Awarding the earthworks contract is an important step in the construction of Araguaia. The scope of the contract incorporates the ‘process plant and supporting infrastructure’ components of the bulk earthworks for the ferro nickel plant. The contract scope is designed to ensure the site is ready for the civil construction works on completion, and will see Copa levelling the main plant area, creating a series of stepped plateaus that will support the key process equipment packages and buildings, installing initial drainage facilities, as well as the main ramp and crusher platform.

Phoenix Copper 44.5p £54.2m (PXC.L)

The USA-focused base and precious metals emerging producer and exploration company, updated on its management activities. Last week, Phoenix CEO Ryan McDermott, ESG Programme Lead Lenie Wilkie, and Public Relations Manager Brittany Lock, met with two of Idaho’s Congressional delegation and staffers in Washington D.C. where they expressed the Company’s current focus to support the United States’ domestic supply of critical and strategic minerals. Phoenix is an 80% owner of the historically producing Empire copper mine near Mackay, Idaho, and wholly owns two cobalt exploration properties near Salmon, Idaho. U.S. Senator Jim Risch and U.S. Senator Mike Crapo of Idaho are long-standing advocates for developing a secure supply chain of the minerals necessary for national security and the technologies that will power the future. Senator Risch currently represents Idaho’s interests in the United States’ Senate Committee on Energy & Natural Resources and serves on the subcommittee on Public Lands, Forests, and Mining. These committee and subcommittee assignments give him a voice in legislation that shapes mineral production in the United States. Meanwhile, Senator Crapo currently participates in the Renewable Energy and Energy Efficiency Caucus where he works to disseminate information about, and increase support for, renewable energy and energy efficiency technologies.

Polarean Imaging 53p £112.6m (POLX.L)

The medical imaging technology company, with an investigational drug device combination product using hyperpolarised 129 xenon gas to enhance magnetic resonance imaging (MRI) in pulmonary medicine, and Oxford University Hospitals NHS Foundation Trust (OUH) announce that they have entered into a research collaboration to study the long-term effects of COVID-19 in patients who are still experiencing difficulty breathing months after the virus infection is gone, as part of the upcoming EXPLAIN study. Under the terms of the collaboration, Polarean will provide its investigational xenon polariser system to OUH for their research. In turn, OUH will work with Polarean to optimise the imaging workflow and analyse the datasets coming from the newly enrolling EXPLAIN study. Through novel analyses of gas-exchange images, Polarean and OUH hope to better characterise long COVID and improve patient care.

SolGold 26.13p £599.3m (SOLG.L)

Appointment of Ayten Saridas to the position of Group Chief Financial Officer of SolGold. Ms. Saridas, who will assume her new role on June 27, brings over 30 years of international corporate finance experience with a proven track record in delivering results and creating value. Ayten is a high-impact executive who brings a compelling blend of strategic and capital allocation discipline, well-honed finance skills, and transformational leadership abilities. Ms. Saridas previously held the position of Group CFO for ASX listed and US based Coronado Global Resources where she led the company through the largest global IPO for a metallurgical coal company in 2018. Prior to this Ms. Saridas held a number of CFO and executive roles with major ASX listed companies across the energy, resources and infrastructure sectors, including Santos, AWE Limited and Woolworths.

Transense Technology 72p £11.8m (TRT.L)

The provider of specialist sensor systems, announced the appointment of Jordan Taylor to a newly created position of Business Development and Marketing Manager for the Transense SAW business. Jordan is an experienced Marketing and Business Development professional, and has previously worked alongside Transense director, Ryan Maughan, at AVID Technology, a leading company in electrification and heavy-duty automotive markets. In addition, he has extensive business experience in Asia having lived and worked in Japan for several years. Jordan’s appointment will increase the business’s capability to support new and existing customers and help them to adopt the Transense SAW technology. Nigel Rogers, Executive Chairman, said: “We have created this new role to build capacity in the business to manage our opportunity pipeline for SAW technology in the automotive electric drive and industrial machinery markets. Adding an experienced business development professional such as Jordan to the team can help to accelerate new business conversion and raise the profile of the company and technology in the market.”

Zephyr Energy 5.1p £65.9m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations updated on first quarter 2022 hydrocarbon sales from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S. Q1 sales from the Company’s Williston Basin portfolio averaged circa 1,600 barrels of oil equivalent per day (boepd) net to Zephyr, up from 548 boepd in Q4 2021. During the quarter, Zephyr sold 144,540 barrels of oil equivalent. 16 new producing wells from Zephyr’s existing portfolio are expected to be brought online during the next six months. The Company has currently hedged just under half of its forecast non-operated production over the next 2 years. Using an average hedged production price of US$98 for the remainder of the year and using US$90 flat for the remainder of its anticipated production, the Company forecasts a range of US$35-40m in revenue from production for FY 2022 from its non-operated portfolio based on forecast production range of 500,000 – 550,000 boe during the year.

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