Small Cap Feast

Small Cap Feast – 14th December 2021

Dish of the Day:

Sovereign Metals (SVML.L/ASX:SVM) has joined AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa. The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021. Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website). Mkt Cap on Admission is expected to be approximately A$280m (being approximately £150m).

ThomasLloyd Energy Impact Trust plc (TLEP), a newly established closed-ended investment company which will invest in a diversified portfolio of unlisted sustainable energy infrastructure assets in fast-growing and emerging economies in Asia, has joined the Premium Segment of the Official List . Raising up to $115m.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

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 Dec.
Aptamer Group to join AIM. Aptamer Group operates within the life sciences sector and is a leader in the provision of aptamer discovery and selection services and in developing aptamer-based reagents. Aptamers are synthetic nucleic acid-based biological molecules, selected based on their specific characteristics to bind to a ‘target’ of interest. Targets can include proteins, cells, viruses or small molecules (e.g. therapeutic drug molecules). Mkt Cap and Capital to be raised TBC. Due Mid Dec.
CT Automotive Group to join AIM. CT Automotive is a UK-headquartered company that designs, develops and supplies interior components for the global automotive industry. Customers include a number of original equipment manufacturers (“OEMs”) and Tier One suppliers to OEMs. Mkt Cap and Capital to be raised TBC. Due 23 Dec.
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising 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 date Late Dec.
Public Policy Holding Company, to join AIM. PPHC, through its wholly-owned companies, operates a portfolio of independent firms that offer public affairs, crisis management, lobbying and advocacy services on behalf of corporate, trade association and non-profit client organisations. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
Libertine to join AIM. Libertine has developed a technology solution for powertrain OEMs, enabling efficient and clean power generation from renewable fuels. Libertine’s linear electrical machines, controls and tools together form a development platform (‘intelliGENTM’) which the Group provides to OEM customers for their product development programmes. The company also provides engineering services and prototype hardware to support OEM customer evaluation of its technology, and incorporation of this technology into customer-led Linear Generator development programmes. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
LBG Media, digital media and youth content publishers to join AIM. The Company is a multi-brand, multi-channel digital youth publisher and is a leading disrupter in the digital media and social publishing sectors. The Group produces and distributes digital content across a range of mediums including video, editorial, image, audio, and experience. Mkt Cap £360m. Expected admission date 15th Dec.
Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer and timing TBA.
Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately 1.7m before expenses. First dealings in the shares are expected to commence in December 2021. The flotation is expected to value Lift at approximately £2.7m.
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 early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.
LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Due early Dec. Raising £5m.
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.
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 16th Dec.
ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation. Due Mid Dec.
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. Q4 2021.
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. Due 20 Dec.

Breakfast Buffet

Altus Strategies 58.5p £47m (ALS.L)

Fundraise completed raising gross proceeds of £19.8m (approximately US$26.1m). New Ordinary Shares to be issued at a price of 53.5p / C$0.90 per share. Altus welcomes new institutional investors to its register. La Mancha investment of £6.9m to maintain its 35.08% strategic shareholding in Altus. Altus directors and officers participated in the Subscription investing approximately £0.5m (approximately US$0.7m). Net proceeds of the Fundraise to be applied to the acquisition of up to 24 royalties from Newcrest Mining Limited and for general corporate purposes.

Bradda Head Lithium 7.25p £21.26m (BHL.L)

Drilling has commenced at Bradda’s Wikieup project following the Company obtaining full drilling permits after the completion of bond payment adjudication on 9th December 2021. Drilling commenced on Friday 10th December. The programme is for 28 holes (3,000m), roughly 3 times the size of the recent Burro Creek East drill programme, and covers portions of the Company’s Wikieup Project claims. Bradda Head is using sonic drilling, which is more environmentally sensitive due to the use of very little water compared to diamond core drilling or R/C. Over the first 3 days of drilling Boart Longyear drilled 40m on average per 12-hour shift of this 28 hole, 3,000m programme. The previous programme at Burro Creek East (diamond core drilling) only achieved 11m on average per 12-hour shift over the whole programme. The drill rate being seen at Wikieup highlights the shortened drill programme timetable and the cost efficiency of using sonic drilling at our sedimentary projects, as well as the water saving nature of sonic versus diamond drilling. The results from this programme at Wikieup will likely form a maiden resource in Q2 2022. Bradda Head has recently (RNS dated 17/11/2021) completed a 10-hole (1,144m) diamond drill programme at its Burro Creek East project in Arizona, where an updated resource is due in Q1 2022. Bradda Head has an existing resource of 185kt of LCE at Burro Creek East and expects this updated resource due in Q1 2022 to significantly expand upon it. Bradda has 47km2 of sedimentary claims in Arizona and so far has only drilled on approximately 2%.

Cerillion 840p £247.9m (CER.L)

Cerillion plc, the billing, charging and customer relationship management software solutions provider, announced the appointment to the Board of Andrew Dickson as Chief Financial Officer, subject to the satisfactory completion of regulatory due diligence. The forthcoming appointment follows Oliver Gilchrist’s decision to step down and retire from the Company following twenty years as Chief Financial Officer of Cerillion. These Board changes will take effect from the Company’s upcoming AGM to be held on 4 February 2022. There will be a handover period between Oliver and Andrew to ensure a smooth transition. A further announcement will be made in due course following completion of the regulatory due diligence in respect of Andrew’s appointment. Andrew Dickson, FCA, aged 41 years, is an experienced finance director, who has worked in both the UK and USA. He joins Cerillion from The Vitec Group plc, the London-listed global provider of premium-branded hardware and software solutions to the content creation market, where he was Director of Finance.

Crossword Cybersecurity* 33p £24.7m (CCS.L)

The technology commercialisation company focused on cyber security and risk management, today announced that National Nuclear Laboratory (NNL), the government owned but operationally independent UK national laboratory for nuclear fission, is using Rizikon Assurance , Crossword’s supplier assurance and third-party risk management platform, to bring new efficiencies to its supplier onboarding and management processes. NNL has been creating a culture change in the way it serves its customers, and engages supply chains to maintain a solid reputation, be agile, reliable, safe and innovative, managing hundreds of supplier contracts across the full nuclear lifecycle. Some of these suppliers are small, but offer highly specialised services to the nuclear sector, whilst others are international organisations on multi-year contracts for construction, maintenance, and decommissioning projects. Rizikon is a secure, encrypted portal which puts an organisation in control of managing risks in its supply chain and the financial, regulatory, and reputational risks they indirectly carry. Rizikon contains standard questionnaires on subjects such as cyber security, GDPR, supplier on-boarding, modern slavery, and anti-bribery & corruption. Customers can also create their own question sets and scoring approaches, enabling a 360-degree view of supply chain risk in a single pane of glass.

Galantas Gold 21p £18m (GAL.L)

Results from its ongoing 4,000-metre drilling program at the Omagh Project in Northern Ireland. Hole FR-DD-21-171 intersected 10.1 grams per tonne (g/t) gold (Au), 93.5 g/t silver (Ag) and 3.4% lead (Pb) over 6.5 metres. This hole, drilled from surface, successfully targeted a potential ‘dilation zone’ within the Joshua Vein and is located approximately 120 metres from hole OM-DD-15-155 drilled in 2015 which intersected 9.9 g/t Au over 21.6 metres (estimated true width of 13 metres). Hole FR-DD-21-UG-172 drilled from the underground at the Kearney Vein intersected two zones of mineralization including 10.4 g/t Au, 50.5 g/t Ag and 2.4% Pb over 2.8 metres. Mario Stifano, CEO of Galantas, commented: “We are very pleased with the continued success of our exploration program which continues to demonstrate high-grade mineralization at Omagh, particularly high-grade gold in wider dilation zones at both Kearney and Joshua veins. We look forward to providing further updates on drill results and our mine production plan in the near future as we advance this unique opportunity to significantly grow high-grade resources at Joshua and Kearney, which remain open on strike and to depth, while also producing gold.”

Getech Group 34p £22.8m (GTC.L)

The NetZero technology provider and data-led energy asset developer, announced that its wholly owned subsidiary, H2 Green Limited, has signed a legally binding agreement with SGN Commercial Services (SGN) to develop a major green hydrogen production, storage and distribution facility on SGN’s former gas holder site in Inverness. In addition, Getech has agreed with SGN to progress three further UK sites to an advanced stage of evaluation and the parties are discussing the addition of several, recently identified sites to the joint review list. New green hydrogen hub to be developed in Inverness, with a capacity which is expected to scale to 8 tonnes of hydrogen per day. Due to Inverness’s location, climate and topography, hydrogen presents a natural path for decarbonisation in the Inverness area and the Scottish Highlands. The site is situated between the city’s rail depot and industrial area, providing green hydrogen directly to large volume anchor customers, including rail, bus and heavy goods vehicles. Local customers for by-products of hydrogen generation, such as zero-carbon heat and medical-grade oxygen, include hospitals, aquiculture and water treatment works. Ownership of the site to be transferred from SGN to an operating company owned by H2 Green and created to progress the Inverness Development Site. Land value has been agreed, priced at pre-development market cost, payable in cash or project equity. H2 Green has granted SGN an option to enable its scalable equity participation in the project. SGN to now prepare Inverness site for development including removal of the existing gas holder, planned to occur in Q2 2022.

Kibo Energy* 0.19p £5.7m (KIBO.L)

The energy development company with an increasing focus on renewables, announces that its non-executive chairman, Mr. Christian Schaffalitzky, will retire from the board early in 2022. Mr. Schaffalitzky’s decision is part of his retirement planning as he reduces his workload across his business interests. The Company has commenced the search for a new non-executive chairman with a strong track-record in the renewable energy field and expects to make an announcement early in 2022. Louis Coetzee, CEO of Kibo said: “I want to thank Christian on behalf of the Kibo Board for his dedication and commitment to Kibo over the last 13 years. His technical knowledge and company management skills have made a significant contribution to the Company’s development during his time as Chairman. I wish Christian the very best with his retirement plans. I look forward to sharing more information on the appointment of a new company chairman early in 2022. Separately, we were saddened to learn of the recent passing of one of Kibo’s founders, Richard Speir. Richard was a geologist and oceanographer who was an expert on Tanzanian economic geology and was responsible for identifying the potential of the Katoro nickel project, held by our subsidiary company Katoro Gold plc. He will be missed”.

Sureserve 92.5p £149m (SUR.L)

The compliance and energy services Group, announces the appointment of Sameet Vohra as Interim Chief Financial Officer, a non-Board position, with immediate effect until a permanent CFO is appointed. Sameet brings with him significant finance and commercial experience built across a broad spectrum of businesses where he has held senior finance roles, including at Science Group plc, Ted Baker plc and Spectris plc. The Group is continuing its search for a permanent CFO and will make a further announcement in due course.

Tekcapital 31p £43.9m (TEK.L)

Innovative Eyewear Inc., a U.S. subsidiary of its portfolio company Lucyd Ltd, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission, for a proposed initial public offering of shares of its common stock in the United States. Tekcapital currently owns 100% of the share capital of Lucyd Ltd and approximately 80% of the share capital of Innovative Eyewear, Inc. The number of shares of common stock to be sold and the price range for the proposed IPO have not yet been determined. Innovative Eyewear intends to commence the sale of its securities in the IPO following completion of the SEC review process, subject to market and other conditions. A copy of the registration statement is available on www.sec.gov . The Company intends the shares to be listed on the NASDAQ under ticker: LUCY. At this stage there can be no certainty of the total IPO proceeds. Further announcements will be made, as required, in due course.

Thor Mining 0.65p £11.4m (THR.L)

Placing of $2.75m (£1.5m), to fund exploration activities at the Company’s project interests, with particular emphasis on the Ragged Range gold and nickel prospects in the Pilbara, Western Australia. Price of $0.0125 (0.67 pence) per Ordinary Share. Nicole Galloway Warland, Managing Director of Thor Mining, commented: ” These funds will allow Thor to maintain its intensive exploration programs at our exciting Ragged Range gold & nickel project, including follow up RC drilling and regional exploration, as well as exploration drilling at Wedding Bell Uranium-Vanadium Project, USA and Molyhil tungsten-molybdenum-copper Project, NT. We are very pleased to have ongoing support from the Company’s existing shareholders, and welcome new shareholders to our share register, who recognise the significant potential of our diverse commodity portfolio. We look forward to drilling news flow expected from Ragged Range and Alford East projects over the next few weeks, as well as an update on the drilling status at our uranium and vanadium prospects, USA.”

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