Small Cap Feast

Small Cap Feast – 15th December 2021

Dish of the Day:

LBG Media (LBG.L), the UK-based multi-brand, multi-channel digital youth publisher has joined 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. Issue at a price of 175p per share (raising gross proceeds of £30.0m for the Company and £81.1m for selling shareholders). At the Placing Price the Company’s market capitalisation will be approximately £360m.

Off the Menu:

U and I Group, has left the Premium Listing Segment of the Official List.

What’s Cooking in the IPO Kitchen?

Hydrogen Utopia International PLC (HUI), to join Access Segment of the Aquis Stock Exchange. The company aims to become one of the leading new European companies specialising in turning Non-Recyclable Mixed Waste Plastic into carbon-free fuels, new materials or distributed renewable heat. HUI’s activities will range across the full value chain, from the production of energy from Non-Recyclable Mixed Waste Plastic for local communities, to the sale of its products (Syngas, hydrogen, electricity and heat) to end customers. HUI’s initial strategic focus is to work closely with Powerhouse Energy Group PLC to create a project pipeline of HUI Facilities. Due 4 Jan 22. Mkt Cap 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 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). Anticipated Mkt Cap £80.7m. Capital to be raised £10.8m. Due 22 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.
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 mid January 2022.
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 16 Dec. Raising £5m on Admission. Mkt Cap on Admission £21.4m
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 30 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

Atlantic Lithium 26.3p £151m (ALL.L)

The African focussed lithium exploration and development company announced initial infill drilling results at the Ewoyaa Lithium Project in Ghana, West Africa, where the Company recently announced an updated Scoping Study and increased JORC resource of 21.3Mt @ 1.31% Li2O, resulting in a significant improvement in project economics and life of mine. Initial infill drilling results received validate grade and continuity where drilled at the Project. Highest metal content intersection (lithium grade x meters) reported to date of 91.6m at 1.6% Li2O from 8m in hole GDD0015. “Our resource continues to grow, and the upside of the Project is clear; as such, we expect that the Project metrics will improve beyond the current defined LOM. It is estimated by the Company that every additional year of production will add up to c.US$60m in post-tax NPV per annum. Given these fundamentals, we are very excited by the resurgence and exponential growth potential across the lithium supply chain and reaffirm to the market that Atlantic Lithium is ideally poised to benefit from the growing lithium market going forward.”

Avacta Group 108.5p £275.3m (AVCT.L)

The clinical stage biopharmaceutical company developing innovative cancer therapies and powerful diagnostics based on its proprietary Affimer® and pre|CISION™ platforms announced that the AffiDX® antigen lateral flow test has been shown to detect the Omicron variant of the SARS-CoV-2 virus in clinical samples. The Omicron (B.1.1.529) variant, with more than 35 mutations of the original SARS-CoV-2 virus, first appeared in South Africa a few weeks ago and was designated a variant of concern by the World Health Organisation (WHO) on 26 November 2021. The UK has now reported over 3,000 cases of this more infectious variant of the virus. The AffiDX® SARS-CoV-2 antigen lateral flow test has been evaluated at the Carlos III Hospital in Madrid using a small number of actual patient samples confirmed to be Omicron variant positive. The results indicate that the AffiDX® antigen test detects the new Omicron variant in addition to all previously identified new variants of concern.

ECR Minerals 1.2p £12.2m (ECR.L)

Two new tenements recently granted for undertaking exploration work within Victoria, Australia. ‘MGA’ now has a total of 523 km2 of ground granted for exploration for gold within Victoria. One tenement (EL006907) is strategically placed between the historical rich Ballarat East-Nerrina goldfield and the current exploration licence ‘EL006148’. This tenement is host to the continued strike of the Dimocks Main Shale (DMS) horizon, believed to host the source veining for much of the alluvial gold within the Creswick deep lead alluvial system. The second tenement (EL007484) is situated 50km north of Bairnsdale in the east of the state of Victoria encompassing the alluvial fields of Swifts Creek and the Mid to Upper reaches of the Tambo River.

Likewise Group 45p £86.6m (LIKE.L)

The distributor of residential and commercial flooring to retailers and contractors, announced that further to the Company’s announcement released earlier today, 15 December 2021, the bookbuild has closed and the Company has conditionally raised gross proceeds of £14m, through the successful Firm Placing and the Clawback Placing, at an Issue Price of 35 pence per New Ordinary Share. Likewise has entered into a conditional agreement to acquire the entire issued share capital of Valley Wholesale Carpets, a UK-based distributor and wholesaler of carpets, for a maximum consideration of £30m, including approximately £10m of cash within Valley Wholesale Carpets. Valley Wholesale Carpets generated audited revenue of £47.3m in the year ended 30 September 2021, up 32% on the previous financial year, and EBITDA of c.£5.7m, up c.89%. The Acquisition is expected to be immediately earnings enhancing and is expected to deliver approximately 25% earnings enhancement during the first full year of ownership.

Power Metal 1.35p £18.2m (POW.L)

The London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from its joint venture subsidiary New Ballarat Gold Corporation PLC (NBGC) which is undertaking gold exploration at its granted exploration licences in the Victoria Goldfields in Australia. NBGC’s first diamond drill programme begins at O’Loughlin’s prospect south of Buninyong. Grant of new 489 km2 exploration licence EL007282 (Blue Sky) in Victoria, Australia, with 9 licences now granted covering 1,501 sq km.

Restore 473p £646.5m (RST.L)

The provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions has acquired 100% of the share capital of Capture All Limited, a digital services business based in Falkirk for consideration of £0.9m. The acquisition of Capture All further progresses the Group’s strategy to significantly expand Restore Digital, the UK’s market leading digital service business that comprises business process outsourcing, digital mailroom services, document scanning, cloud hosted data storage, information management systems and digital transformation consultancy. Capture All is a highly respected digital business with a key position in the Scottish market, operating from two sites in Falkirk. The Company works across both the private and public sectors and has experience of complex project delivery including work for NHS Scotland and the Scottish Fire and Rescue Service. This is the Group’s second acquisition in the digital sector this year and follows the significant EDM acquisition in April 2021 which doubled the size of the business unit, growing run rate revenue to £46m per year. Further to the update provided at the time of the Group’s capital markets day on 11 November 2021, trading has continued to be strong with positive development of the sales pipeline, a number of significant contract wins and business performance in line with the Board’s expectations for the 11 months to 30 November.

Sareum Holdings* 5.3p £178.65m (SAR.L)

Sareum has today announced that the European Patent Office will be issuing an Intention to Grant notice for a patent in respect of an invention associated with Sareum’s proprietary SDC-1802 TYK2/JAK1 Kinase Inhibitor Programme. The Company expects that the patent will be formally granted within four months, subject to certain formalities being completed. Sareum’s approach to patent protection enables them to retain full value in these programmes as part of its business development discussions.

Semper Fortis Esports* 1.4p £5.8m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services announced that the SMPR Rocket League team secured a Top Four position in the first LAN RLCS Major since the COVID-19 pandemic, which took place over last weekend in Stockholm, Sweden. The team began the competition with great energy, beating out South American and MENA based opponents on Day 1, eventually finding themselves in the Quarter Finals where they would beat Top EU rivals Dignitas and eventually losing out in the Semi Finals against tournament winners Team BDS. The team found great synergies in their first LAN event under the SMPR brand, donning their newly released Jerseys and interacted heavily with media and opponents’ teams over the weekend. The (3rd/4th) place earned the team a total of $25,500 in prize pool winnings. Jassem Osseiran, COO of Semper Fortis Esports, commented: “The team found excellent stride in being together across the weekend, showing that esports such as Rocket League does constitute physical interactions just as in traditional sports. In a short period we have become a serious contender for a top four position globally which is very exciting and pivotal for our strategy moving forward.”

Time Finance 22.75p £21m (TIME.L)

Update on the Company’s trading performance for the six month period ended 30 November 2021, ahead of the publication of its Interim Results which are scheduled for release on 20 January 2022. In line with its strategic objectives, the Group has continued to experience positive trading momentum regarding lending origination on its own-book, with the Board and management team remaining focussed on the Group’s recovery from the impact of the pandemic. The Group’s balance sheet strengthened further during the period, with unaudited Net Tangible Assets at 30 November 2021 of more than £29m. Deals in arrears are at their lowest levels since the fourth quarter of 2018, and no deals remain in forbearance as a result of the impact of the pandemic. Furthermore, the Company’s gross lending book increased from its 31 May 2021 level of £116m to approximately £121m as at 30 November 2021. Notwithstanding this positive momentum, it is clear that the economic effects of the pandemic continue to overshadow many of the sectors of the economy. Consequently, the Board remains both vigilant and cautious as to the potential impact that further economic uncertainty or additional government restrictions could have on the Group. Time Finance’s strategy is to focus on providing or arranging the finance UK SMEs require to fund their businesses and arranging vehicle and property-backed finance for consumers. The multi-product range for SMEs includes asset, vehicle, loan and invoice finance facilities.

Tungsten West 65p £115.25m (TUN.L)

Tungsten West, the mining Company focussed on recommencing production at the Hemerdon tungsten and tin mine in Devon, England, announced that its temporary aggregates plant has been commissioned. The newly installed Terex® AggWash 60 plant was commissioned at the end of November and will operate whilst the Hemerdon process plant is redeveloped and a separate full-scale aggregates plant is built. Aggregates produced at Hemerdon are a by-product of the metalliferous mining process and due to technical innovation planned at the upgraded Hemerdon process plant, now represent a secondary cash-flow opportunity as well as assisting the Company in its ‘no-waste’ target for the Project.

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

*A corporate client of Hybridan LLP

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