Small Cap Feast
Small Cap Feast – 13/10/21
Dish of the Day:
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Off the Menu:
Cambria Autos has left the AIM following a takeover.
Cambria Autos has left the AIM following a takeover.
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
Avingtrans 440p £141m (AVG.L)
Avingtrans which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors announced its £2.5m participation in a £12.9m fund raise by emerging medtech leader, Adaptix Ltd based in Oxford, UK. Adaptix’s focus is on transforming radiology, by allowing low-cost, low-dose 3D portable imaging. It has developed a number of novel technologies and imaging approaches in relation to Digital Tomosynthesis (DT). At the core of Adaptix’s technology is the ‘Flat Panel X-ray Source’ (FPS) which consists of a monoblock containing an array of individually controlled X-ray emitters combined with a high-voltage power supply. Avingtrans, through its majority owned-subsidiary Magnetica (MNA), intends to collaborate with Adaptix, to develop a disruptive business offering. This offering will bring together low-cost 3D imaging in the form of MNA’s Cryogen-free MRI and Adaptix’s DT, to allow fusing of the image data, giving enhanced low-cost diagnostic capability, initially for orthopaedic imaging. The target markets include some 28,000 US sites focused on minor injuries (urgent care) and private orthopaedic practices (private practices and ambulatory surgical centres).
Bradda Head 7.63p £22.34m (BHL.L)
The North America-focused lithium development group announced that its planned initial and preliminary metallurgical testwork programme has commenced with SGS Canada on samples from its 100% owned Burro Creek East lithium deposit. Burro Creek East already has a JORC-compliant resource identified and further drilling to add to this resource is already underway. The Company’s primary aim is to develop a suitable process flowsheet, whereby the target processing cost of Li extraction is less than US$4,000/t LCE (Lithium Carbonate Equivalent). The Company views this level as a suitable goal, noting that current lithium forecasts are pricing the long-term lithium carbonate market at upwards of US$12,000/t, and current spot prices are close to US$25,000/t. Bradda’s Wikieup project, where drilling is due to commence this quarter, is adjacent to Arizona Lithium Ltd.’s (previously known as Hawkstone Mining Ltd.) Big Sandy project where metallurgical testing has demonstrated the viability to produce a 99.8%-purity lithium carbonate from its ore.
Ebiquity 55p £43m (EBQ.L)
The specialist in media investment analysis, announces the opening of a new office in Gurgaon, India, in response to the significant growth in the Indian advertising market. The office builds on the presence of FirmDecisions, Ebiquity’s contract compliance specialist business, which has been operating in Mumbai since March 2017. India is among the fastest-growing advertising markets in the world and expected to attain 9th rank in overall ad spending by the end of 2021. Ad spend in India is forecast to grow by 23.2%, and Digital is expected to grow by 28% by the end of this year. India’s digital transformation is moving at a rapid pace, and Ebiquity recognises the need to have a strategic local presence to support current and new clients.
EQTEC 1.17p £101m (EQT.L)
The world-leading gasification solutions company building a cleaner waste-to-energy industry has signed an agreement for the proposed acquisition of a 5MWe project in Drama, North Eastern Greece, through the recently established EQTEC Synergy Projects Limited, a joint venture between EQTEC and its Greek strategic partners, German EPC company, ewerGy GmbH. Once acquired, the JV will lead the development of a new biomass-to-energy plant, generating 5MW green electricity from locally and sustainably sourced forestry waste. Due diligence, including financial and technical feasibility, has been completed. Completion of the acquisition of the Project is subject to entering into of a Project Purchase Agreement, customary for this type of transaction.
European Metals 70p £123m (EMH.L)
The Company has recently completed a drilling campaign at Cinovec South, comprising 22 diamond drill core holes for 6,622 metres, with the goal of increasing resource certainty in the existing resource model in and around the initial planned mining areas and upgrading part of the resource from the Indicated category to the higher confidence Measured category. Re-classification of 53.3m tonnes (MT) into Measured resource category grading 0.47% Li2O and 0.08% Sn. 28.5 MT of Inferred resource upgraded to Indicated resource category. The Measured and Indicated resource has increased from 372.4 to 413.4 MT @ 0.47% Li2O and 0.05%Sn. The total Measured, Indicated and Inferred resources have increased by 12.3MT to 708.2MT @ 0.43% Li2O and 0.05% Sn (0.1% Li (0.2153% Li2O) Cut-off). Increase in overall resource to 7.39 MT LCE. As reported previously, because zinnwaldite is paramagnetic, wet magnetic separation, the first stage of the ore processing has the effect of greatly increasing the grade of lithium oxide in the concentrate to approximately 2.85%. The zinnwaldite concentrate produced from Cinovec requires only roasting, compared to the calcination and roasting required of processing spodumene. This not only improves the economics, it will also have the effect of considerably reducing greenhouse gas emissions of the Project when compared to spodumene projects.”
Harland & Wolff 3.25p £25.55m (HARL.L)
The shipyard and energy infrastructure group with over 160 years of maritime and offshore engineering pedigree announced that its subsidiary, Islandmagee Energy Limited, has been notified by the Department of Agriculture, Environment & Rural Affairs (DAERA) that it will issue the Environmental Consent Decision, Marine Licence, reviewed Abstraction Licence and Discharge Consent for the Islandmagee Gas Storage project. The Company has reviewed the conditions attached to the draft Marine Licence and believes that they are fair and reasonable, and therefore, acceptable, which will lead to the issuance, by DAERA, of the full Marine Licence within the next 28 days. The issuance of this licence will facilitate the abstraction and discharge of seawater and brine respectively during the cavern formation. Given the ongoing gas supply crisis within Europe and the critically low levels of gas storage currently available in the UK compared with the rest of Europe, the Company believes that it is vital that this storage project is constructed and commercialised to help ensure security of supply in the UK, as well as support the transition to a Net-Zero economy.
Marlowe 905p £698m (MRL.L)
The leader in business-critical services and software which assure safety and regulatory compliance announced the appointment of Rachel Addison as a Non-Executive Director of the Group from 1 November. Rachel will also take up the role of Chair of the Audit committee. Rachel is an experienced Finance Director and most recently has been Chief Financial Officer of Future plc, the global platform business for specialist media. Prior to Future she was CFO at TI Media Limited and held a number of senior financial, operational and board level roles at Trinity Mirror (now Reach) Regionals, Local World Limited, Northcliffe Media Limited and a variety of other businesses. Rachel is a chartered accountant having started her career at Arthur Andersen.
Synairgen 145.65p £293m (SNG.L)
The respiratory company developing inhaled interferon beta for the treatment of severe viral lung infections, today announces the appointment of Gareth Walters, Ph.D. to the newly-created role of Chief Regulatory Officer in preparation for SNG001 regulatory submissions. Dr. Walters brings more than 30 years’ expertise of global regulatory strategy to Synairgen: from preclinical, to marketing authorisation, through to post-approval and commercialisation.
Open Orphan 20.5p £137.5m (ORPH.L)
The specialist in vaccine and antiviral testing using human challenge clinical trials, announces the appointment of Yamin ‘Mo’ Khan as an Independent Non-Executive Director to the Board of Open Orphan with immediate effect. Mo will also Chair both the Audit and Risk and Nomination Committees. Mo is a business leader and customer focused CRO executive with over 25 years of global clinical research experience across clinical operations, project management, business development and executive management functions. He previously worked at Pharm-Olam International, a global CRO, from 2000-2019 across a variety of senior positions including Executive Vice President of Clinical Development and Global Director of Clinical Operations. Mo was a key leader in driving the expansion and growth of the company from a small niche European CRO to a global player with offices across all continents. Latterly, he led global business development at Pharm-Olam resulting in significant growth and a successful sale in 2017, delivering substantial returns to its shareholders. Prior to this he worked at Innovex and Quintiles CRO (IQVIA).
Versarien 62p £87.9m (VRS.L)
James Stewart CBE will retire as Non-executive Chairman of the advanced engineering materials group on 31 December 2021 and Diane Savory OBE DL will be appointed as the Company’s new Non-executive Chairman on 1 January 2022. As part of the transition process, Ms Savory will attend monthly Board meetings until formally taking office. Diane Savory has, until recently, served as Chair at GFirst LEP (Gloucestershire). She is a member of the Retail Sector Council at the Department of Business, Enterprise, Innovation and Skills and worked at Superdry Plc for a total of 22 years, including as a main board director, during which time it grew from an SME to a London Stock Exchange Main Market listed company. Diane’s experience is allied to particular elements of the Company’s GSCALE project.
Emily Liu, CFA, CAIA
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