Small Cap Feast

Small Cap Feast – 12/10/21

Dish of the Day:

No Joiners Today.

Off the Menu:

Arrow Global has left the Main Market following a takeover.

St Peter Port Capital has left AIM after entering a solvent members’ voluntary liquidation of the Company.

What’s Cooking in the IPO Kitchen?

Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company’s investment objective is to provide investors with an attractive and sustainable level of income returns, with the potential for capital growth, by investing in commercial scale energy storage and renewable energy generation projects, with an initial focus on a diversified portfolio of battery energy storage systems located in Great Britain. The Company has contracted with Tesla Motors Limited in respect of its initial portfolio of battery storage projects, to be acquired on IPO, which will benefit from Tesla’s 2-hour duration Megapack systems and Autobidder AI revenue optimisation platform. Due Early Nov.
Stelrad Radiator Group, the specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, is considering an IPO on the Main Market (Premium). Potential secondary and primary (c.£25m) offer. Timing TBA.
Pantheon Infrastructure to join the Main Market (Premium). PINT will target attractive risk-adjusted total returns comprising capital growth and a progressive dividend through making equity and equity-related investments in private infrastructure assets alongside other leading private asset investment managers. Due Mid Nov.
Quantum Exponential to join AQSE. The Company intends to identify investment opportunities in the quantum technology sector primarily in the NATO allied countries. The Company has identified over 175 start-ups which potentially meet their investment strategy with a focus on seed funding for start-ups with second stage funding plans in preparation. Offer and timing TBA.
Pod Point, one of the United Kingdom’s leading providers of Electric Vehicle charging solutions is considering a Main Market (Premium) listing. As at 30 June 2021, Pod Point had installed more than 89,000 home charge points and over 13,000 commercial units, including those located at workplaces and destination locations (such as shops and leisure attractions). Timing and offer TBA.
Tungsten West to Join AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon, England. Hemerdon represents the world’s third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Expected 21 Oct. Offer TBA
Softline the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segment of the Official List of the FCA and to trading on the Main Market for listed securities and on Moscow Exchange. The Group had a turnover of US$1.8 bln for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets. Primary proceeds from the Offer are expected to be around US$400m. Due Late Oct.
Marks Electrical, a fast growing online electrical retailer, announced its intention to proceed with an initial public offering and to seek admission to trading on AIM. Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products. In the year to 31 March 2021 revenue grew to £56m, up 78% against the previous financial year, while EBITDA increased to £7.45m, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022, with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021. Offer TBA Admission is expected to take place in late October 2021.
Future Metals NL (ASX:FME) (formerly named Red Emperor Resources NL) to join AIM. No funds being raised. Future Metals is a platinum group metals exploration and development company that holds a 100% interest in the Panton PGM Project in Western Australia (the “Panton Project”). The Panton Project comprises 3 granted mining leases (M80/103, M80/104 and M80/105), which cover an area of approximately 23km2 and are located 60km north of Halls Creek and 1km from the Great Northern Highway, in the East Kimberly region of Western Australia. The Panton Project has a JORC (2012) Mineral Resource Estimate of 14.3Mt at 2.19g/t platinum, 2.39g/t palladium, 0.31g/t gold, 0.27 per cent. nickel and 0.08 per cent. copper. Due mid October. Mkt cap c£35.8m.
Bens Creek Group to join AIM. Bens Creek, together with its subsidiaries, will, on Admission, own and operate a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia and eastern edge of the Commonwealth of Kentucky, in the central Appalachian Basin of the eastern United States of America. The Mine’s operations are located primarily in Mingo County, West Virginia. The Mine includes a wash plant and rail loading facility located on the freehold land. Capital to be raised on Admission: £7m. Anticipated Mkt Cap on admission: £35m. Due 19 Oct.
M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.
Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m in the Initial Placing. Due 18 Oct.
Responsible Housing REIT to join the Main Market (Premium) 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. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.
Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. The company last said Sept 13th that it expected to list end of September which has now passed.
Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m POSTPONED
Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.
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. It pushed back its AIM float on 30th September from end September to late October. The amount to be raised is still yet to be confirmed.
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

ADM Energy* 2p £3.15m (ADME.L)

The natural resources investing company, announced the completion of the 16th Lifting at the Aje Field, part of OML 113 offshore Nigeria. The Lifting totalled 232,379 barrels with a net share of 21,424 barrels to ADM, which equates to ADM’s profit interest of approximately 9.2%. The proceeds of the Lifting will be applied against the project debt, contributing to a reduction in the outstanding balance. The nominated offtake partner for the Lifting was Mecuria, a global energy and commodity group.

Ariana Resources 4.1p £44.8m (AAU.L)

Update on Venus Minerals Ltd. Venus is focused on the exploration and development of copper and gold assets in Cyprus. Ariana is continuing its earn-in to 50% of Venus and is currently entitled to 37.5%, with 50% expected to be achieved in early Q4 2021. Venus Minerals has completed a binding Heads of Terms agreement with a leading mining company in Cyprus for a 50:50 Joint Venture for the development of the Apliki Copper Mine; Venus is to be the operator of Apliki. Joint Venture will draw upon local mining, engineering and heap-leach expertise gained during many years of successful operation of the nearby Skouriotissa Mine. A definitive agreement concerning Apliki is expected to be concluded by mid-November. Ariana is now committed to completing its funding of Venus Minerals to achieve a shareholding of 50%. Venus Minerals to pursue a stock exchange listing in London prior to the end of 2021.

Ethernity Networks 35.75p £24.1m (ENET.L)

Ethernity Networks 35.75p £24.1m (ENET.L)
The supplier of data processing offload solutions on programmable FPGA (field programmable gate array) for accelerating telco/cloud networks, announces today that it has signed a contract with a global wireless OEM based in Europe to supply its ENET 4840 40Gbps FPGA System-on-Chip (SoC) with support for Carrier Ethernet Switching, Wireless Bonding, and IPSec security. The ENET 4840 is a customised version of the device that is used within the UEP-20 Universal Edge Platform product design, which will also be supplied to the OEM for manufacturing. The initial committed order within the contract is worth approximately $400k with the majority of the revenue accruing in 2022 and with additional orders anticipated thereafter.

Galantas Gold 25p £18.7m (GAL.L)

Results for its ongoing 4,000-meter drill program at the Omagh Project in Northern Ireland. The first hole to target the Kearney vein from an underground drill platform returned two high-grade intersections: 17.7 grams per tonne (g/t) gold (Au), 50.9 g/t silver (Ag) and 4.6% lead (Pb) over 2.5 metres; including 30.5 g/t Au, 60.8 g/t Ag and 4.4% Pb over 0.8 metres. This shallower intersect, occurring at approximately 136.5 metres vertical depth from surface, provides continuity to a parallel-running zone of mineralization 13 metres west of the main Kearney vein and this structure will be tested with further underground drilling. 10.8 g/t Au, 23.6 g/t Ag and 3.3% Pb over 1.5 metres. This intersection at 176.3 metres vertical depth penetrates a gap in the current resource model. Surface drilling targeting the Joshua vein is also in progress and results for the first of these holes are as follows: 7.7 g/t Au, 24.3 g/t Ag and 0.6% Pb over a 2.7-metre downhole intersection.

Greatland Gold 18.3p £725.5m (GGP.L)

Publication of the Stage 1 Pre-Feasibility Study results at the Havieron gold-copper deposit in the Paterson region of Western Australia. This Stage 1 Study of the South-East Crescent reflects the ‘staged approach’ to the evaluation and development of Havieron and does not consider bulk mining methods; Economics of maiden PFS supports the total capex while generating strong early cash flow, IRR and payback.; Low upfront capital, Greatland share US$73m; Outstanding low-cost operations, AISC US$643/oz, with further opportunity to reduce; Internal Rate of Return 27% (real IRR, after tax); Payback 3.0 yrs2,6; High Grade 4.58g/t Au Eq2,7; Capital efficient, low environmental impact with underground mining and use of existing Telfer processing facility for majority of plant infrastructure; 17% of revenues estimated to be generated from copper production; The Stage 1 Study demonstrates that including additional existing Inferred Mineral Resource allows for an ~3Mtpa or greater operation.

PCI PAL 65.5p £42.8m (PCIP.L)

The global cloud provider of secure payment solutions for business communications, announced a further strategic expansion of its market leading partner eco-system with an integration to Amazon Connect, Amazon’s omnichannel cloud contact centre solution. Amazon customers can now access PCI Pal services across its global cloud platform from anywhere in the world via their existing AWS Marketplace agreements. PCI Pal is the first global vendor in the secure payments space to achieve this, further illustrating its class leading cloud technology, as well as its commitment to a partner-led sales approach.

IQE 44.58p £357.6m (IQE.L)

The supplier of compound semiconductor wafer products and advanced material solutions to the global semiconductor industry, has entered into a multi-year strategic IT transformation agreement with Critical Manufacturing to support the future growth of IQE. IQE has engaged Critical Manufacturing to deliver a Manufacturing Execution System (MES) which will: Enable IQE to continue providing world-leading wafer quality as the Group scales operations; Increase agility and responsiveness to customers to ensure IQE continues to be the partner of choice in advanced semiconductor materials; and create consistency in global operations to maximise production flexibility and efficiency.

Voyager Life 23p £2.13m (AQSE:VOY)

Trading update from the health and wellness company supplying high-quality Cannabidiol (CBD), hemp seed oil and hemp-related products. 32 formulated products and 90 total SKUs available across website and stores; Revenue from incorporation to 30 September 2021 of approximately £65k; Cash balance of approximately £1.8m (as at 8 October 2021) with no debt; Monthly overheads of below £50k (as at 30 September 2021); Inventory of over £80k (at cost price); Voyager products now sold in 80 third party stores; Voyager products will be listed by CLF, a leading wholesaler UK of health and wellness products, in January 2022; Forthcoming store openings in Edinburgh and Dundee.

YouGov 1190p £1302m (YOU.L)

The international research and data analytics group, has acquired Rezonence Ltd in a move that will bring clients ethical activation at scale. Rezonence is a technology business with a patented FreeWall® – an interactive advertising format that facilitates access to premium online content after consumers engage with an advert or taking a micro-survey. Through its network of publishers, Rezonence’s technology will enable a massive expansion of data-generating and data-deploying touchpoints between YouGov and consumers. The acquisition turns hundreds of millions of consumers across the world into potential zero-party virtual YouGov panellists. This allows data collection at unprecedented scale and enables ethical activation that benefits both clients and consumers. Clients get addressable audiences through fraud-free and transparent interactions, while consumers get rewarded for their engagement with access to premium content and more relevant ads. Rezonence has been wholly acquired by YouGov for an undisclosed sum to enrich and expand YouGov’s capabilities.

Zenova 148p £324m (ZED.L)

Launch of its Zenova WB wildfire product following a number of highly successful tests. Importantly the product has now also been embraced by the University of Exeter’s highly respected wildFIRE Lab, an independent organisation that conducts leading research on fire behaviour and fire effects on ecosystems. In standard laboratory-controlled conditions Zenova WB prevented ignition and flaming of dry grass fuels that were treated with it. Moreover, despite exposures to temperatures of ~750oC, no heat was emitted from the dry-grass fuel and smouldering was prevented. A short video of the product in action can be viewed at the following link: https://zenovagroup.com/products/zenova-wb/ The testing was led by Professor Claire Belcher, Director of the wildFIRE lab at the University of Exeter and a renowned expert in the transmission and causes of wildfires. Following the studies she commented: “We tested Zenova WB fluid in controlled conditions in the laboratory and I was amazed by its ability to prevent ignition and spread of fire in dry grassy fuels, which are typically the most ignitable fuel across many landscapes. I really look forward to working with the Zenova team in the future, to conduct trials on multiple vegetation substrates, both in the laboratory and during real landscape scale wildfire settings.”

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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