Small Cap Feast

Small Cap Feast – 16th September 2022

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company’s investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150m. Expected 4 October 2022.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Timing TBC.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.

Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.

Breakfast Buffet

Coro Energy 0.28p £6.0m (CORO.L)

The Southeast Asian energy company with a natural gas and clean energy portfolio, announces its unaudited half-year results for the period ended 30 June 2022. Revenue was $2.64m, 10x of $0.263m in 1H 2021. Gross profit was $1.3m (1H 2021: $191 in gross loss). Operating profit narrowed to $0.83m during the period (1H 2021: $2.2m in operating loss). All revenue in 1H 2022 came from the production of its Italian gas portfolio of 2,425,342. Meanwhile, Coro expects its 3MW rooftop solar pilot in Vietnam to become operational later this year. Coro also has two development stage renewables projects in the Philippines, a 100MW solar project and a 100MW wind project.

Drumz plc 0.95p £4.0m (DRUM.L)

The investment company focused on the technology sector announced its interim results for the six months ended 30 June 2022. Revenue was £30,000 (2021: £18,000) and an operating loss of £184,000 (2021: loss of £261,000). At 30 June 2022 Drumz had cash resources of £413,000 (2021: £380,000). The two principal assets are Acuity Risk Management Limited (Acuity) and a legacy holding in KCR Residential REIT plc (KCR). Acuity’s revenue for the year ended 31 March was £1.55m, up 26% from the prior year. Drumz is looking to acquire a target business so that it can transform from an investment company to a trading company.

Empyrean Energy 1.0375p £8.2m (EME.L)

The Australia-based oil and gas development company announce its final results for the year ended 31 March 2022. Total expenses increased by 710% to $7.7m, primarily due to $4.1m impairment and $2.0m cyber fraud loss. In May 2022 US$2.25m was raised through an equity placement to complete further post well analysis of the Jade well, satisfy any further costs associated with the Jade drill, conduct a comprehensive oil migration study in conjunction with CNOOC for potential oil charge to the Topaz prospect. However, in order to meet the well commitment at Topaz and to meet the repayment terms of the convertible note of $4.1m, the Company is required to raise further funding either through equity or the sale of assets and as at the date of this report the necessary funds are not in place.

Katoro Gold 0.325p £1.5m (KAT.L)

The gold and nickel exploration and development company announces its unaudited interim results for the six months ended 30 June 2022. Operating loss was reduced by 18% year-on-year to £640,372. As of 30 June 2022, the company had a cash balance of £342,481 and a financial liability of £184,779. During the period, the company completed the drill program on Haneti Nickel project (see RNS dated 31 May 2022). Katoro Gold is assessing various new projects to further diversify its portfolio, in alignment with its focus on gold and mineral exploration and development in Africa.

Light Science Technologies 6.75p £11.8m (LST.L)

The controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, provides an update on progress on its contract with Zenith Nurseries Ltd to develop a cloche lighting and sensor technology system. The project’s first milestone, Gateway 1, is now complete, resulting in revenue of £51,000. The customer has redefined its near-term priorities in response to ongoing energy and import conditions and the project will proceed to Gateway 4. This phase is expected to commence in 1H 2023 with potential revenues of c.£1.9m. The overall time scale and potential contract value of £13.84m remains unchanged.

MySale Group 2.25p £21.4m (MYSL.L)

The online retailer announces that it is today publishing its response circular in relation to the unsolicited cash offer for the entire issued and to be issued ordinary share capital of MySale, not already owned by Frasers, at a price of 2p per share (the Offer Price) in cash on 17 August 2022 (the Offer). On 29 June 2022, Frasers acquired 270.7m MySale Shares at a price of 2p per share and, together with the contracts for difference already held by Frasers, became MySale’s largest shareholder with 28.66% voting rights. By taking into account the average share price over the 12-month period ended on 16 August 2022, the Offer Price represents a discount of approximately 53.0%. Hence, the MySale Directors do not consider that the Offer Price reflects an appropriate control premium.

Naked Wines 94.65p £70.0m (WINE.L)

The online wine retailer announces that Rowan Gormley, former-CEO and material shareholder, has been appointed as an advisor to the board as the company finalises its revised operational and financial plans. The company will announce these revised plans during the week commencing October 17th. As of the date of this announcement, Rowan Gormley (directly and via related parties) owns 2,134,104 shares representing 2.9% of the Group’s issued share capital and will be subject to Naked’s share dealing policy. The position of Board adviser is unpaid and is expected to last for a period of two to three months. Mr Gormley will represent the views of shareholders and advise the Board accordingly.

Ncondezi Energy 0.925p £3.8m (NCCL.L)

The African power development company announces the finalised terms and conditions of convertible loans: (1) restructuring of Seritza Limited working capital facility term loan to a convertible loan note, subject to shareholder approval; (2) the convertible loan to be increased by an additional £100,000 to be made available by certain Directors of the Company, to accelerate development of the Solar Project (First Tranche); (3) perhaps an additional tranche of £150k (Second Tranche) at the convertible loan lender’s discretion in the six months following the restructuring. Certain Directors have entered into a binding undertaking, preventing the shareholder loan being called before the later of 30 November 2023.

Roquefort Therapeutics* 7.875p £10.2m (ROQ.L)

The biotech company focused on developing first in class drugs in oncology  announces the completion of its acquisition of the entire issued share capital of Oncogeni Limited for an aggregate consideration of £5.5m satisfied by the issue of 50m new ordinary shares. In conjunction with the acquisition, Roquefort has appointed Ajan Reginald as Executive Director and Chief Executive Officer; Professor Sir Martin Evans (a Nobel laureate) as Executive Director and Group Chief Scientific Officer; Dr Darrin Disley as Non-Executive Director; and Professor Armand Keating as an independent Chief Medical Advisor (a non-board position). Meanwhile, Roquefort also completed a placing of 7 ,249,998  shares at 14p per share to raise gross proceeds of £1m. The proceeds will be used to fund the Oncogeni pre-clinical drug development programs and working capital. Executive Chairman Stephen West and CEO Ajan Reginald will give a live presentation via the Investor Meet Company platform on Thursday 22 September at 2.00pm BST.

Windward Ltd. 77.5p £64.8m (WNWD.L)

The leading Maritime AI company announce that it will be presenting at the 2022 GTR (Global Trade Review) Commodities conference in Geneva on 20 September, after contract wins with three Swiss commodity trading companies in recent months. The new clients are involved in the trading of oil and gas, petrochemicals, bulk products, fertilisers, and soft commodities. They are using Windward’s platform to enhance their due diligence and screening processes to mitigate all maritime related risks including sanctions risk and compliance risk.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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