Small Cap Feast

Small Cap Feast – 15/09/21

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What’s Cooking in the IPO Kitchen?

Peel Hunt, a UK mid and small-cap specialist investment bank, announces its intention to seek admission of its ordinary shares to trading on AIM. Admission is expected to take place on or around 29 September. In conjunction with a placing of Ordinary Shares the Company will be conducting an intermediaries offer.
Oxford Nanopore Tech—expected intention to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. Timing and offer TBA.
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.
Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.
Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA
GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September
Responsible Housing REIT to join the Main Market (Premium) in late September 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.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
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. Offer TBA. Due Late September.
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

4d Pharma 75p £135m (DDDD.L)

The pharmaceutical company leading the development of Live Biotherapeutic products (LBPs), a novel class of drug derived from the microbiome, today announces new biomarker analyses from two ongoing clinical trials of its lead immuno-oncology single strain Live Biotherapeutic, MRx0518, in both neoadjuvant and refractory solid tumor settings, at the European Society for Medical Oncology (ESMO) Congress, September 16-21, 2021. “At the core of 4D pharma’s platform is the importance of understanding the impact of Live Biotherapeutics on human biology to rationally select and develop candidates, predict and measure response. These new biomarker data provide us with critical guidance on the biological and mechanistic impact of MRx0518 therapy in patients with various solid tumors,” said Dr. Alex Stevenson, Chief Scientific Officer, 4D pharma. “These new findings indicate the potential to predict patients most likely to respond to MRx0518 therapy based on tumor biology.” “Furthermore, the monotherapy data demonstrates that a short course of MRx0518 treatment is able to positively modulate prognostic indicators of immunotherapy response,” he added. “We look forward to utilizing and implementing these important new findings as we work to progress this novel oncology Live Biotherapeutic through development towards approval.”

Crossword Cybersecurity* 33.5p £25.1m (CCS.L)

The technology commercialisation company focused on cyber security and risk management announced the appointment of Alison Dyer, Chief Information Security Officer at URENCO and former Director at GlaxoSmithKline (GSK), who joins the Crossword Advisory Board as Chair. She takes over from Dr Robert Coles who has moved to Crossword’s main Board of Directors. The Advisory Board, made up of senior figures from academia, the corporate world, defence and government, provides a range of unique perspectives on cyber security that benefit Crossword clients and inform Crossword’s product development strategy. Alison Dyer joined URENCO, a global supplier of enrichment services and fuel cycle products, in 2018 and is responsible for all aspects of their information and cyber security, covering both information and operational technology. Prior to this Alison was Director of GlaxoSmithKline’s (GSK) global cyber security programme, where she led multiple strategic delivery workstreams including security technology, governance, culture, third party management and operational technology security. Alison holds a BEng in Mechanical Engineering from Imperial College, London and an MSc in Information Security from Royal Holloway University.

Futura Medical 39.6p £113.7m (FUM.L)

The pharmaceutical company developing a portfolio of innovative products based on its proprietary, transdermal DermaSys® drug delivery technology and currently focused on sexual health and pain, today announces that the first patient visit has occurred in the confirmatory clinical study, FM71, for MED3000 that will be supporting the US regulatory submission for the product. MED3000 is a breakthrough, fast acting topical gel formulation for the treatment of erectile dysfunction (ED) and is CE marked in Europe and the UK as a clinically proven topical treatment for adult men with erectile dysfunction. The start of FM71 is in line with planning and both the FM71 and non-clinical Human Factors studies are now progressing in parallel targeting patient completion by the end of Q2 2022 in order for submission of MED3000 for US regulatory approval as a DeNovo medical device for ED treatment, with OTC classification by end Q3 2022. US marketing authorisation therefore remains on track for approval of MED3000 in Q1 2023.

Hornby 43.5p £73.4m (HRN.L)

AGM Trading Update from the international models and collectibles group. “For the period from the 1st April to the 31st August 2021, sales and margins have been slightly lower than the previous year but in line with internal budgets. Trading patterns have begun to return to those experienced in pre-covid times. On 30 July 2021, the Group completed the acquisition of the remaining 51% of LCD Enterprises Limited for a cash consideration of £1.3m. As is usually the case in our industry; the outcome for the full year is subject to the sales rate over the key Christmas trading period. Our outstanding order book is very strong and substantially higher than a year ago, however timing is everything when it comes to Christmas and we are mindful of the potential supply disruption at the ports continuing.”

Intuitive Investments 18.25p £7.4m (IIG.L)

Investment of £125k to acquire 25,000 new A preferred shares in Momentum Bioscience Limited as part of a £3.89m fundraising round. The Investment provides IIG with a 2.4% interest in Momentum’s share capital as enlarged by the Fundraising. Momentum is developing a revolutionary rapid diagnostic test for patients suspected of sepsis, an infection of the blood stream resulting in symptoms including a drop in a blood pressure, increase in heart rate and fever. Last year, the World Health Organisation (WHO) reported that there were 49m deaths from sepsis globally and 11m avoidable deaths. The current standard of care typically takes 1-5 days to detect viable bacteria or fungi (organisms) in blood, relying on downstream workflows to provide an identification of the organism thereafter. Momentum’s SepsiSTAT® system enables reporting of the presence or absence and ‘pan gram identification’ of viable organisms in just two hours, helping direct the right antimicrobials. The system also provides a pure concentrate of growing organisms for further analysis.

Lexington Gold 4.2p £11m (LEX.L)

The gold exploration and development company with projects in North and South Carolina, USA, has received notification from FTE Drilling with regards to a revised schedule for the commencement of the 5,000m RC drilling programme. In order to facilitate routine drill rig maintenance, the allocated drill rig and crew is now scheduled to arrive on site during the week commencing 4 October 2021 rather than the previously announced date of the week commencing 20 September 2021.

Oracle Power 0.34p £7.8m (ORCP.L)

The international natural resources project developer announced that, as anticipated following the approval of the Programme of Work, the drill programme is underway at the Northern Zone Gold Project, located 25km east of Kalgoorlie in Western Australia. The first phase is to complete 7 Reverse Circulation (RC) drillholes up to 260 metres deep, for a total of ~1,500 metres specifically targeting gold mineralisation within a series of stacked porphyry intrusions.

Physiomics* 6.3p £6m (PYC.L)

The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions will publish its results for the full year ending 30 June 2021 on Thursday, 30 September. Dr Jim Millen, CEO of Physiomics, will provide a live presentation relating to the Company’s full year results via the Investor Meet Company platform on 30 September at 2pm BST. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your the ‘Investor Meet Company’ dashboard up until 9:00 a.m. the day before the meeting or at any time during the live presentation. Investors who already follow Physiomics plc on the Investor Meet Company platform will automatically be invited. Potential investors can sign up to ‘Investor Meet Company’ for free and register to join the presentation via https://www.investormeetcompany.com/physiomics-plc/register-investor.

Sabien Technology 25.25p £3.7m (SNT.L)

The Company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today an agreement with City Oil Field Incorporated of South Korea. The agreement provides that Sabien acts as an exclusive sales agent for COF in the UK, with non-exclusive rights in other territories, for an initial period of 1 year. A longer-term relationship is anticipated, and future sales targets have been agreed in outline. COF’s proprietary technology and techniques, collectively a Resource Gathering Operation (RGO), focus on the production of light and ultra-pure fuel products from low temperature processing of end-of-life plastics. This process involves the catalytic degradation of waste plastics and vinyl materials via a wave energy application utilising specifically designed ceramic ball catalysts. This enables the required degradation to occur at low temperatures (200°C to 270°C), producing a heavy oil. A further refinement process, which also makes use of the ceramic ball technology, leads to production of a highly refined, ultra-pure fuel product (i.e. a fuel from waste).

Tatton Asset Management 546p £316m (TAM.L)

The investment management and IFA support services group announced the acquisition of £650m Verbatim funds for a cash consideration of up to £5.8m and a long-term strategic distribution partnership with Fintel plc (AIM: FNTL), a leading provider of fintech and support services to the UK retail financial services sector. The transaction supports the Group’s strategy to grow assets under management (AUM) through both acquisition and through strategic partnerships that extend its distribution channels facilitating further organic growth; The acquisition of the Verbatim multi-asset and multi-index funds adds c.£650m to Tatton Investment Management’s AUM, complementing and extending our existing fund range; The five-year strategic distribution partnership with Fintel plc provides access to over 3,800 new financial intermediary firms and its 6,000 Defaqto users, significantly enhancing our reach and distribution to further contribute to the organic growth of our AUM; and the technology provides insights and analysis, enabling targeted product design and distribution further benefiting the Group through access to 2,500 market-leading fintech licences to distribute to Tatton and Paradigm firms and users. The transaction, which includes both the acquisition of the funds and a five-year strategic distribution partnership agreement, is expected to be earnings enhancing in the financial year ending 31 March 2022 and beyond; over the remainder of FY22, the partnership, including the Verbatim funds, is expected to generate adjusted operating profit of c.£0.6m, with adjusted operating profit of c.£1.5m expected in FY23, the first full financial year.

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Derren Nathan
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