Small Cap Feast

Small Cap Feast – 16th December 2021

Dish of the Day:

DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. 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.

Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC 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.

Off the Menu:

No leavers today.

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.
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.
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 early Q1 2022.
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. Due 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

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

The technology commercialisation company focused on cyber security and risk management, discovers new shortcomings to current supply chain risk assurance processes as part of a research project conducted in partnership with Liverpool John Moores University. The joint research project was undertaken to investigate the underlying problems and causes of failures in supply chain risk and assurance. The research project was awarded a £233K grant (of which £158k was awarded to Crossword as per the announcement on 15 December 2020) by the Made Smarter Innovation programme, delivered by UK Research and Innovation (UKRI). The award was made through the digital supply chain competition, which forms part of UKRI’s Industrial Strategy Challenge Fund (ISCF) Made Smarter Innovation programme. One of the key findings from the research is that the approach to most supplier assurance programmes is fundamentally broken – namely, that businesses haven’t standardised what information they ask for, how they ask it, and how they share it. This leads to a huge amount of duplication and supplier assurance fatigue and ultimately a lack of supply chain transparency. As part of the project, leading third-party risk assurance thought leaders, Crossword Cybersecurity and Liverpool John Moores University collectively used the £233K grant to develop a new digital supply chain risk & assurance method that can address the underlying problems and causes of failures in supply chains. The knowledge acquired from the research and new concept design will provide new thinking in approaches to improving supply chain resilience. Ken Fraser, Rizikon Assurance Product Manager at Crossword Cybersecurity commented: “The study shows that information standards to improve the efficiency of information exchange are the key to supply chain resilience. This is something we have designed and are adopting in Rizikon.”

FRP Advisory Group 125p £300.3m (FRP.L)

A leading UK professional services firm specialising in advisory services, announces its half year results for the six months ended 31 October 2021. Revenue for H1 2022 increased 25% on the prior period to £44.7m, 8% on an organic basis (H1 2021: £35.9m). Underlying adjusted EBITDA up 14% to £11.1m ( H1 2021: £9.7m). Strong balance sheet with net cash at 31 October 2021 of £9.2m (H1 2021: £15.4m) and an undrawn committed revolving credit facility of £10m. FRP Corporate Finance completed 50 transactions in H1 2022 with a combined deal value of £1.28bn and £0.5bn of debt raised. Key system upgrades have commenced to further improve operational efficiencies and enhance internal controls. Positive medium-term outlook for all of the Group’s markets. The Board remains confident of making further progress in the current financial year. Geoff Rowley, CEO, said: “We delivered another positive performance in H1 2022, continuing to execute our strategy to grow the business. The markets we operate in have been mixed. The Corporate Finance market is highly active as capital continues to be deployed. However, the extension of Government support over most of H1 2022 has resulted in restructuring administration activity remaining subdued”.

One Heritage Group* 46.5p £15.1m (OHG.L)

The UK-based residential developer focused on the North of England, is pleased to announce that it has signed a construction finance facility with Shawbrook Bank Limited on its Lincoln House, Bolton development. The gross amount of the Facility is £3.51m for a term of 20-months with an interest rate of 6.25% plus three month SONIA (“Sterling Overnight Index Average”). The Facility will be drawn down as construction costs are incurred on Lincoln House. Lincoln House is a development of 88 self-contained apartments in Bolton with a gross development value of £9.4m. Medlock FRB Ltd is the principal contractor on the site and construction work has already commenced. One Heritage expects the development to finish in Q2 2022, as opposed to Q1 2022 as we had previously disclosed. As part of the mitigation strategy set out in the Listing Prospectus issued on 18 December 2020, available on the Company’s website at https://www.oneheritageplc.com/wp-content/uploads/2021/02/20201223listingprospectus_web.pdf, the Company set out mitigation plans in the event that it was unable to secure sufficient finance for the developments to progress simultaneously. This included potential delays to developments. With the signing of this agreement, the Group is pleased to announce that the mitigation policy is no longer required. Jason Upton, CEO of One Heritage Group commented: “Delighted to sign this agreement with Shawbrook and will be drawing down against the Facility immediately as the Lincoln House construction accelerates. Furthermore, it is pleasing to see that as a Group we no longer need the mitigation policy thanks to the expertise and efforts of the enlarged team in our first 12 months of being a listed company.”

Palace Capital 255p £120.4m (PCA.L)

Palace Capital announces the appointment of Steven Owen as Chairman of its board of directors, with effect from 1 January 2022. Steven is the Non-Executive Chairman of FTSE 250 property investment group Primary Health Properties plc (“PHP”) having been appointed Chairman in April 2018. He was appointed to the Board as an independent Non-Executive Director in January 2014 becoming chairman of the Audit Committee and Senior Independent Director in April 2014. Steven has overseen PHP’s significant corporate activity in the period including its merger with MedicX Fund Limited in 2019 and the internalisation of its management structure in January 2021 with both transactions creating significant shareholder value. Stanley Davis will stand down as Chairman and from the Board on 31 December 2021. The Board would like to thank Mr Davis for his considerable service to the Company since co-founding it in 2010. Commenting on his appointment, Steven said: “I very much look forward to working with the Palace Capital Board and wider team as it continues with its strategic initiatives to generate attractive shareholder returns and close the current share price discount.”

Poolbeg Pharma 9.65p £46.3m (POLB.L)

The clinical stage infectious disease pharmaceutical company with a capital light clinical model, has signed a binding term sheet, encompassing all commercial terms, with AnaBio Technologies (AnaBio), with a full licence and collaboration agreement to follow. The partnership allows Poolbeg exclusive access to AnaBio’s microencapsulation and nanoencapsulation technologies, IP and expertise for oral vaccine applications. Poolbeg will utilise this technology in conjunction with its own expertise in infectious diseases, vaccine development and its associated technologies to develop an oral vaccine delivery platform. Poolbeg will also investigate using its proprietary Vaccine Discovery Platform in conjunction with this jointly developed oral vaccine delivery platform. Jeremy Skillington, PhD, CEO of Poolbeg Pharma, said “The pharma sector is increasingly recognising that oral vaccines can act as standalone regimens or as boosters to injected vaccines which can struggle to generate mucosal immunity. By working with the experts at AnaBio and accessing its advanced micro and nano encapsulation technology, this places Poolbeg in a prime position to develop products for the oral vaccine market with vaccines for enteric (gut) and respiratory pathogens.”

RUA Life Sciences 81.5p £20.1m (RUA.L)

The holding company of a group of medical device businesses focused on the exploitation of the world’s leading long-term implantable biostable polymer (Elast-EonTM ), today announces its unaudited interim results for the six months ended 30 September 2021. Highlights include: 12% increase in Revenues to £708k (H1 2020: £631k), Strong cash position at £4.8m (30 September 2020: £1.m, 31 March 2021: £6.3m), Investment in capital equipment for business expansion and continued progress on heart valve project with recent manufacturing trials of the 100% polymeric leaflet demonstrating a step change in quality of manufacture and durability potential. The results from those manufacturing trials have confirmed the predictive modelling undertaken prior to the trial thus giving additional confidence that further design and process improvements should again be achieved in manufacture. Bill Brown, Chairman of RUA Life Sciences, commented: “The change to the regulatory process for the vascular graft range is clearly a major disappointment for both the Company and its shareholders. We remain confident that approval remains a question of “when” and not “if”. Progress in the other parts of the business remains on track.”

Sareum Holdings* 5.2p £185.4m (SAR.L)

The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of autoimmune diseases and cancer, will hold its Annual General Meeting today at 10.00am. The AGM will also be relayed as a live webcast via the Investor Meet Company (IMC) platform. http://www.investormeetcompany.com/sareum-holdings-plc/register-investor .Key highlights from the Company’s statement include: The Board is highly optimistic about the future of its out-licensed asset SRA737, which is expected to enter new clinical trials in 2022 under the guidance of Sierra Oncology, the licence holder for this exciting candidate. SDC-1801 continues to advance towards first clinical trials. The final toxicology and safety studies required to file for an exploratory Clinical Trial Authorisation (“CTA”) have been completed and the Board expect the finalised reports in the first quarter of 2022. The results received to date fully support the company’s plan to submit this CTA for SDC-1801. Sareum’s cash position as at 30 September 2021 was approximately £4.4m. 2022 looks promising with the company expecting to report on continued progress both with their proprietary programmes, in particular the advancement of SDC-1801 into clinical trials, and with their partnered asset SRA737 should Sierra advance its development.

Semper Fortis Esports* 1.275p £5.3m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, announces its first commercial sponsor, The Topps Company, Inc. Topps is best known as a leading producer of Match Attax, American football, baseball, basketball, ice hockey and other sports and non sports themed trading cards, including the soon-to-be-released Total Football game. Topps will be the first to collaborate with SMPR as a branding partner and will be a highlight sponsor for the SMPR Rocket league car decal, which is a collectible item used to customise the appearance of a player’s battle-car, provided as an in-game asset in Rocket League games. The SMPR branded car can be purchased and downloaded by anyone who plays the game from the Rocket League items shop. The Esports Shop is an in-game marketplace where exclusive RLCS-themed items can be purchased. This is the first time that Rocket League game publisher Psyonix has offered customised decals for Esports teams competing in the RLCS, SMPR is thrilled to join forces with Topps to enhance this opportunity even further. Viewers can see the SMPR decal in-play when the Rocket League team is in action, pulling in viewership by the thousands across competitions this season. Viewers will now see the latest version of the SMPR decal, including the Topps logo in the Esports Shop, and this will be updated in early 2022. Jassem Osseiran, COO of Semper Fortis Esports, commented: “We are thrilled to have Topps on board and associated with the SMPR brand. This partnership will look to achieve great things, engaging with both SMPR and Rocket League fan bases.”

SigmaRoc 83p £506.5m (SRC.L)

The AIM quoted buy-and-build construction materials group, updates the market on its performance for the 11 months to 30 November 2021,as well as several key developments in the Group. Highlights include: Group revenues for the period were £236.5m, up 107% over the prior year. Like-for-like revenues increased 13.4% year-on-year in the period, including like-for-like growth of 9% against a strong comparative period in H2. Product availability has remained good, in spite of supply chain challenges. As a result of the continued solid trading, the Board remains confident in the Company delivering an underlying EBITDA performance for the full year ahead of analyst consensus. SigmaRoc also announces the proposed appointment of Ms Axelle Henry as an Independent Non-Executive Director, with effect from March 2022, subject to satisfaction of customary new director due diligence and onboarding processes. Ms Henry has served as Chief Financial Officer for Verlinvest Group, a Brussels-based international investment business, since April 2014 and also serves on the board of directors for a number of their private companies, as well as Nasdaq quoted Vita Coco. She has held a variety of senior executive positions, including as Deputy Chief Financial Officer of Groupe Bruxelles Lambert. Ms Henry has over 20 years’ experience in the Private Equity and Investment Sector, starting her career with KPMG as senior auditor. She holds degrees in commercial engineering from the Solvay Business School (Université Libre de Bruxelles).

ZOO Digital Group 116p £101.7m (ZOO.L)

The leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry, announces the launch of ZOO Academy, a programme of academic courses, educational collaborations and practical workshops to inspire and develop the translators, script adapters, dubbing actors and directors of the future. With demand for content production surging around the globe, ZOO Academy is working with leading universities and teaching professionals to proactively build long-term capacity in the localisation talent pool, particularly among those languages that currently have low supply. ZOO Academy Partners will deploy ZOO’s cloud-based scripting and dubbing platforms (ZOOsubs and ZOOdubs) as part of audio-visual translation courses around the world.

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