Small Cap Feast

Small Cap Feast – 15th June 2022

Dish of the Day:

Silverwood Brands (AQSE:SLWD), has been re-admitted onto the Access Segment of the AQSE Growth Market following the acquisition of Balmonds Skincare Limited by way of a signed share purchase agreement.

Off the Menu:

River and Mercantile Group has left the Main Market following a reverse takeover by AssetCo (AIM:ASTO). Marshall Motors has left AIM. Ocean Outdoor has left the Main Market.

What’s Cooking in the IPO Kitchen?

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 2022.
Disko Exploration. Bluejay Mining (JAY.L) is undertaking a review into a demerger and potential separate stock market listing, on a London based stock exchange of its wholly owned subsidiary Disko Exploration Limited. Disko currently holds the following interests: 1. Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland which entered into a definitive joint venture agreement with KoBold Metals Company to execute an extensive exploration program in 2022 for battery metals (49% owned by Disko). 2. Kangerluarsuk, a 100% owned lead-zinc-silver project in Greenland. 3. Thunderstone, a 100% owned gold-base metals & REE project in Greenland. Timing TBC.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Breakfast Buffet

Base Resources 16p £180.7m (BSE.L)

African mineral sands producer, Base Resources Limited reports that mining at its Kwale Operations has, over the past week, progressively returned to normal following the outage caused by localised flash flooding. Although this was an abnormal weather event, a series of mitigations are being implemented to reduce the likelihood of a future reoccurrence, including construction of additional storm water diversion bunds and the acquisition of supplementary high capacity diesel dewatering pumps. Base Resources confirms that it remains on schedule to achieve financial year 2022 production guidance.

Dillistone Group 22.5p £4.4m (DSG.L)

At today’s AGM, Giles Fearnley, Chairman of Dillistone, will make the following AGM statement: “We are pleased to report that the improved trading performance noted in the late months of 2021 has continued into 2022. Across both our contingency and executive search products, we see reasons for optimism with all our products performing broadly in line with – or better than – we would have anticipated at this point in the year. We are also pleased to confirm that Talentis has continued to grow rapidly, with recurring revenue in Q1 2022 being double that delivered in Q4 of 2021. The current quarter is likely to see a further doubling in which case it will become the fourth successive quarter in which realised recurring revenue has doubled on the previous period. This grow rate is expected to slow over the traditionally quiet summer, but we are confident that the product will deliver further strong growth in the final months of the year. The business is trading in line with market expectations for the full year.”

Kodal Minerals 0.26p £44m (KOD.L)

Updated Project Feasibility Study and the development status for its Bougouni Lithium Project in southern Mali. Confirmation of robust development project at Bougouni with key metrics including: NPV7% of US$760M (US$567M post-tax) compared to US$293M (US$201M post tax) in the original Feasibility Study. Life of mine (8.5 years) revenue exceeding US$2,145bn based on an average sell price of US$1,060 per tonne (FOB basis). C1 cash costs of US$362 per tonne of 6% Li2O spodumene concentrate (SC6), and costs of US$474 per tonne including transportation and other selling costs. Total SC6 production of 2,024,000 tonnes with an annual average production of 238,000 tonnes. Bougouni Project development based on unchanged operating assumptions of open cut truck and shovel contractor mining operation, feeding 2Mtpa of lithium ore to the flotation processing plant, utilising a conventional flotation circuit to maximise spodumene recovery. Capital cost of the Project increased approximately 20% to US$154M reflecting increased raw material and fuel costs. A separate study to assess the capital development cost, including a review of the process plant, has been undertaken by Yantai Jinpeng Mining Machinery Co. which indicates an estimated 20% capital cost saving for the process plant and associated facilities compared to the feasibility study update figures.

NAHL Group 36.8p £17.0m (NAH.L)

AGM Statement from the UK marketing and services business focused on the UK consumer legal market. Since the publication of the 2021 Final Results on 29 March 2022, the Group has continued to perform in line with market expectations. In the first five months of the year, the Group’s Consumer Legal Services division generated 34% more personal injury enquiries than the equivalent period last year, in a claims market that remains subdued following the impact of the COVID-19 pandemic and the introduction of the Civil Liability Act reforms last year. In line with its strategy, the Group continued to grow and invest in its fully integrated law firm, National Accident Law (NAL). 26% of total enquiries were distributed to NAL in the Period, representing an increase in the number of enquiries allocated to NAL of 95% compared to the equivalent period last year. In addition to growing the value of its book of ongoing claims, NAL also collected 21% more cash from settlements in the Period, compared to the prior year. Earlier this month, National Accident Helpline launched a new TV advertising campaign intended to further strengthen its brand position and contribute to volume growth. Overall, the Board’s expectation for the full year remains unchanged and the Group will provide a trading update for the six months to 30 June 2022 on 1 August 2022.

Netscientific 81p £17.1m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group announces that portfolio company Q-Bot has successfully closed a £1.62m investment round to fund the next stage of its growth. The additional funds will allow Q-Bot to accelerate the rollout of its unique patented solution of using robots to apply underfloor home insulation across the UK, and meet growing overseas demand for Q-Bot’s solution. Q-Bot is a London-based award-winning robotics and AI company that has pioneered cutting edge technology and digital solutions for the inspection, maintenance, insulation and upgrade of buildings and homes. In the year ended 31 March 2022, Q-Bot generated sales of £2.2m, and expects significant growth in sales as market deployment accelerates. With this funding, Q-Bot will continue its strong growth to meet the rapidly increasing market demand for its offering to UK social and private landlords in the context of rising energy bills and move to decarbonisation of UK housing. Q-Bot’s growth is through an expansion of its network of Accredited Installation Partners, industrialising robot manufacturing at scale, growing sales into the UK and international markets.

Redx Pharma 64p £213.3m (REDX.L)

Jazz Pharmaceuticals (NASDAQ: JAZZ) and Redx (AIM: REDX) announce the U.S. Food and Drug Administration (FDA) has cleared the Investigational New Drug (IND) application for JZP815, a pan-RAF inhibitor for the treatment of solid tumors and hematologic malignancies that contain mutations in the MAPK pathway, enabling Jazz to proceed with initiating a clinical trial for JZP815. As a result, a milestone payment of USD $5m from Jazz payable to Redx has been triggered. The milestone payment was triggered under the Agreement in which Jazz acquired Redx’s pan-RAF inhibitor programme, announced on 10 July 2019. Redx carried out development activities up to the completion of IND-enabling studies. Today’s milestone is on top of USD $6.5m already received under the collaboration and Redx remains entitled to development, regulatory and commercial milestone payments as well as incremental tiered royalties in mid-single digit percentages, based on any future net sales. Preclinical data from this pan-RAF programme was recently presented at the American Association for Cancer Research conference in March. JZP815 is a precision pan-RAF inhibitor with a differentiated mechanism of action, and Jazz expects to assess its utility in treating several types of difficult-to-treat solid tumours where there remains significant unmet patient needs. Jazz expects to advance JZP815 into a Phase 1 clinical programme and, when initiated, JZP815 will be the fifth compound discovered by Redx to enter the clinic.

Orcadian Energy 43.5p £27.7m (ORCA.L)

The low-emissions North Sea oil and gas development company, announced a seismic licensing deal with the energy data company TGS. The agreement will provide Orcadian with high quality seismic data, revealing the reservoir structures and even the likely fluid type. The deal with TGS ensures that Orcadian will be able to use the best data available to evaluate the multitude of development opportunities and prospects within its North Sea portfolio. Orcadian will gain access to 2,070 sq km of newly reprocessed and interpreted, high quality 3D seismic data covering the bulk of its licences and enabling evaluation of nearby open acreage in the upcoming 33rd round; Near term costs have been deferred and future payments to TGS will largely derive from a 1% royalty on production; TGS will, subject to Pilot FDP approval, acquire 100 sq km of new seismic over the important Elke and Narwhal discoveries; The North Sea Transition Authority (NSTA) has confirmed that acquisition of this data will satisfy the Phase B work commitment on P2482, Orcadian has requested that NSTA allows P2482 to continue into Phase B.

Scancell Holdings 14.3p £116.2m (SCLP.L)

The developer of novel immunotherapies for the treatment of cancer and infectious disease, today announces an update to the Phase 2 SCOPE clinical trial being conducted at multiple centres in the UK. Following the approval of a protocol amendment by the Medicines and HealthCare products Regulatory Agency (MHRA), the trial will include a cohort of melanoma patients who will receive SCIB1 plus doublet therapy consisting of ipilimumab (Yervoy®) plus nivolumab (Opdivo®) in addition to the cohort who will receive SCIB1 with pembrolizumab (Keytruda®). The updated protocol also allows all patients to receive the SCIB1 vaccine as a needle-free injection.

Tertiary Minerals 0.16p £2.4m (TYM.L)

The traded mineral exploration and development company, whose strategic focus is on energy transition metals, advises that it has received and accepted a letter of resignation from its Managing Director, Mr. Patrick Cullen, effective 20 June 2022. The Company will seek to recruit a replacement Managing Director, with Mr. Cullen’s responsibilities being assumed by other members of the Board in the meantime. Commenting today, Executive Chairman Patrick Cheetham said: “The Board does not expect its strategy or ongoing work programmes in Zambia or Nevada to be materially affected by this change and the Board would like to thank Mr. Cullen for his contribution to the Company since joining as Managing Director in September 2021.”

T42 lOT Tracking Solutions 11.5p £6.1m (TRAC.L)

t42 loT Tracking Solutions plc, which provides real-time tracking, security, and monitoring solutions for the global supply chain, logistics, container and freight market, has received its first commercial order for t42’s sensor fusion based tracking solutions and cloud platform services in Latin America, delivered under the framework agreement with a Latin American consortium announced on 17 December 2021. In this initial order 500 units are being supplied and it is expected that further devices will be ordered for use at additional ports across Latin America, with potential sales as indicated and more fully explained in our earlier announcement in December 2021. Port authorities deploying t42’s tracking solutions benefit from increased visibility and capability to track and monitor goods in transit. The customer is a Latin American consortium of five leading local companies responsible for providing local port authorities with trade data for a major regional port in Latin America. t42’s tracking solutions and services will help manage the growing trade through the port.

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