Small Cap Feast

Small Cap Feast – 14 January 2022

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.

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 late Jan.

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

Asiamet Resources 2.75p £53.26m (ARS.L)

Asiamet announced further exceptional high-grade gold-silver and polymetallic results from ongoing resource expansion drilling at the BKZ deposit on its 100% owned KSK Contract of Work in Central Kalimantan, Indonesia. Drill hole BKZ33600-10 returned a stunning intersection of 99 metres @ 2.42g/t Au, 542g/t Ag, 5.02% Pb including 30 metres @ 6.3g/t Au, 1,188g/t Ag, 13.5% Pb, 0.14% Cu downdip to the east of previously reported high-grade copper and zinc-lead-silver-copper-gold mineralisation. This recently discovered gold-silver zone has now been intersected in six consecutive drillholes over 250 metres of strike outside the existing JORC Resources and remains open to the east and south.

Cornerstone FS 36p £7.3m (CSFS.L)

The cloud-based provider of international payment, currency risk management and electronic account services to SMEs, provides an update on trading for the year ended 31 December 2021. As noted in its announcement on 4 November 2021, the Group had been experiencing increased trading momentum, which has continued until the end of its financial year. As a result, and subject to audit, the Group expects to report full year revenue of approximately £2.3m (2020: £1.7m), a year-on-year increase of some 38% on 2020. This reflects a very strong second half of the financial year, with unaudited revenue approximately 75% higher than in the first six months of 2021.

Fusion Antibodies 107.5p £28m (FAB.L)

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announces the formation of a new Scientific Advisory Panel of leading experts to support the Company’s research and development across its range of antibody services, and to provide advice regarding emerging science and technology issues and trends. The panel, which met for the first time this week, comprises a number of key opinion leaders and specialists in the fields of antibody engineering and services. The first additions to the panel are Matthew Baker, PhD (NeoPhore), Professor Terry Rabbitts (Institute of Cancer Research), and Professor Charlotte Deane (University of Oxford).

Orosur Mining 13.75p £28.6m (OMI.L)

Orosur has signed a Joint Venture (JV) agreement with Meridian Mining UK Societas (TSXV: MNO) (in relation to the Ariquemes tin project in Brazil. The JV terms are largely in line with those indicated in the Letter of Intent (LOI) signed and announced on July 7th 2021, in which the Company can earn an equity interest of 75% in the Ariquemes project by spending US$3m over a four-year period, in two phases. Phase 1 – earn 51% interest by spending US$1 over a 24-month period. 2. Phase 2 – earn an additional 24% interest by spending US$2 over a subsequent 24- month period. Following this point, the two parties would jointly fund the Project on a pro-rata basis or dilute to a net smelter royalty.

Quiz 17.58p £21.8m (QUIZ.L)

QUIZ, the omni-channel fashion brand updated on trading for the period between 1 December 2021 to 31 December 2021 and its current cash position. Total Group sales in the period increased by 20%, or £1.4m, to £8.8m compared to December 2020, in line with the Board’s expectations. The Group is pleased with the gross margins generated in during the period which are consistent with those generated in the same period in FY2019, prior to the impact of COVID-19. Further to this positive momentum, total Group revenues in the nine months to 31 December 2021 totalled £61.0m, which represents an 88% increase on the £32.4m generated in the equivalent period in FY2020. The performance during the Period was driven by a 64% increase in revenues generated across QUIZ’s UK store and concession portfolio to £5.2m. The Group’s UK stores and concessions were closed for part of the comparable prior year period. Revenues were broadly consistent on a like-for-like basis with the sales generated in FY2019, prior to demand being impacted by COVID19. Online revenues decreased 26% to £2.1m, reflecting the termination of certain third-party partnerships during the financial year. Sales through QUIZ’s own websites were consistent with the previous year and in-line with Board expectations. International revenues, which comprise five stores and 15 concessions in Ireland and international franchise partners, increased 11% to £1.5m (FY2020: £1.4m). The Group is confident in the QUIZ brand’s potential for long-term international growth and continues to pursue opportunities in line with its strategy.

Secure Trust Bank 1,367.5p £255m (STB.L)

Pre close trading update ahead of its annual results announcements for the year ended 31 December 2021 scheduled for 24 March 2022. Total new business lending increased by 27.9% in the fourth quarter, to a record £471.1m, which was 51.5% (£160.1m) higher than Q4 2020. Record levels of new lending were achieved in each of Real Estate Finance, Vehicle Finance and Retail Finance. In Real Estate Finance, the performance followed strong demand for the Group’s green loan products. The performance of the Consumer Businesses was driven by strong pre-Christmas trading in Retail Finance and the continued benefit of expansion into broader market segments in Vehicle Finance. The core net loan book grew strongly in the fourth quarter and by double digits compared to Q4 2020. Growth in the quarter was higher than the run-rate required to achieve the Group’s medium term lending book growth target of a 15%+ compounded annual growth rate (CAGR).

Scotgold Resources 72.5p £43.15m (SGZ.L)

Q4 2021 production to 31 December 2021 (‘Q4 2021’) totalled 1,508 ounces of gold. Highest gold concentrate production recorded in December 2021 since first gold pour – 101 tonnes of concentrate produced equating to c.700 ounces of contained gold (c.60% increase to Company’s previous best monthly concentrate production). November production negatively impacted by covid related supply of explosives for the mine – short-term supply issue resolved in November and ore extraction now continues in line with the Company’s mine plan. Q4 2021 gold concentrate gold and shipments totalled 231.5 tonnes with a sales value of over £2.6m . Phase 1 Ramp-up nearly completed as of 31 December 2021 with the processing plant achieving 2,500 tonnes feed rate for the month of December. Q1 2022 gold production guidance range is for 1,400 to 2,200 ounces of gold. Low-capex optimisation initiatives, primarily the addition of a thickener into the tailings circuit, are underway to achieve Optimisation Phase Production run rate of c 16,000 – 17,500 ounces p.a. run rate of gold. Phase 2/Expansion Phase targeted for Q1 2023 hereto achieve 23,500 ounces p.a. run rate of gold. 2022 strategy focused on continuing to optimise Cononish processing plant and mining efficiencies to increase production profile whilst building a multi-asset gold production company in Scotland through targeted exploration .

Smartspace Software 76p £22m (SMRT.L)

The leading provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces announced a trading update for the 11 month period to 31 December 2021 in advance of the Company’s year end of 31 January 2022. The Group has been progressing its objective to build a high growth SaaS business with strong recurring revenues and, consequently, expects that results for the full year ending 31 January 2022 will be in line with market expectations. Accordingly group revenues for the year ended 31 January 2022 are expected to be c. £5.2m and adjusted EBITDA losses not more than £2.7m. The Group’s cash as at 31 December 2021 totalled £2.8m.

Tower Resources 0.27p £5.7m (TRP.L)

The AIM listed oil and gas company with its focus on Africa has raised £1.5m via a placing and subscription at a price of 0.26 pence per Placing Share, a discount of 29% to the closing share price on 13 January 2022. The Company will use the net proceeds to advance its portfolio and to cover working capital requirements going forward, including funding maintenance and planning expenditure in Cameroon to maintain the long-lead items inventory ready for the commencement of drilling and testing of the NJOM-3 well, pending completion of the farm-out, and to make payments and pre-payments to contractors. The fundraise should cover work programme costs in Namibia (for license PEL 96), where Tower plans to conduct a basin modelling study based on the latest data available from recent drilling in the areas adjoining the PEL96 acreage and also work programme costs in South Africa (for the Algoa-Gamtoos license operated by 50% partner New Age Energy Algoa (Pty) Ltd, which adjoins the Total-operated blocks 11B/12B) where the license partners are preparing for 3D seismic data acquisition in 2022/23;and general working capital purposes.

Trident Royalties 38.5p £109.8m (TRR.L)

The growth-focused mining royalty and streaming company announced that following the completion of the acquisition of producing gold offtake streams announced on 11 January 2022, Trident has generated its inaugural cash flow under the streams. Trident acquired 1,858 ounces of gold and subsequently sold for a margin of $30.68/oz, resulting in total cash flow of $57,001 and a NSR equivalent margin of 1.69% for the batch, well in excess of Trident’s long term base case assumption on acquisition of the Portfolio. Going forward, Trident will update shareholders of cumulative cash flow generated under the offtakes in the Company’s quarterly activities announcements.

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