Small Cap Feast

Small Cap Feast – 17th December 2021

Dish of the Day:

Following a reverse takeover Anemoi International joins the Main Market.

Off the Menu:

Prophotonix leaves AIM.

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 £10m. 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. £6m to be raised on Admission. Anticipated Mkt Cap £26m. 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 24th Jan 22
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

Artisanal Spirits 97p £66.8m (ART.L)

The owner of The Scotch Malt Whisky Society (“SMWS”), the leading curator and provider of premium single cask Scotch malt whisky and other spirits for sale primarily online to a discerning global membership, announces that it has agreed to increase its equity interests in its subsidiary undertakings The Scotch Malt Whisky Society Japan Limited (incorporated in Japan) (“SMWS Japan”) and The Scotch Malt Whisky Society Limited (incorporated in Hong Kong) (“SMWS China”). David Ridley, Executive Managing Director of the Company, commented: “With Asia being one of the fastest growing whisky markets in the world, our China and Japan operations will continue to form an integral part of the ASC growth story for years to come. With an established presence in each, we believe that now is the time to take these steps to increase our share of the value created and help support the future growth in both China and Japan. We have a wide range of exciting plans in place to enhance the experience of our members in Asia and, supported by these improved terms, we are excited about what the future holds for The Scotch Malt Whisky Society in the region.”

Circle Property 201p £57.4m (CRC.L)

Further to the announcement dated 1 September 2021, Circle Property Plc, which invests in, develops and actively manages well-located regional office assets, announces that it has completed the sale of One Castle Park, Bristol for £20m. The sale price of £20m represented a 3.9% increase on the 31 March 2021 valuation of £19.25m. The investment property was acquired by the Company in November 2012 for £4.165m. The Company has a financing facility in place with RBS and HSBC for £100 million comprising a senior revolving facility for £65m (of which the Company has drawn £58.544m) with an “accordion” option for a further £35m. In line with the Board’s commitment to reduce the Company’s gearing, £18m of the sale proceeds from the Disposal will be used to repay a proportion of the Facility. Following this repayment, the Group’s LTV will reduce to 36.9% (excluding cash at bank) with a Group cash balance of £7.6m, reflecting a net LTV of 29.9%. The total amount drawn down under the Facility will reduce to £40.544m. In addition, the Company announces that it has exchanged contracts to sell 141 Moorgate, London to Moorgate (141) Properties Ltd. The total sale price of approximately £7.1m (of which 51.04% is due to the Company as head lessee) represents a 27.3% increase on the 30 September 2021 valuation of £2.85m (the valuation of the Company’s 51.04% interest). The cash proceeds from the sale due to the Company of £3.6m will, on completion, be utilised to reduce the Company’s gearing.

Invinity Energy Systems 91.5p £87.4m (IES.L)

Further to the 8 November Operational Update RNS, Invinity Energy Systems plc, a leading global manufacturer of utility-grade energy storage , is provides an update on Q4 2021 project deliveries, including the successful delivery of a number of key UK and US projects. Energy Superhub Oxford (ESO), UK: In line with the previously stated schedule, the complete Invinity system comprising 27 VS3 flow batteries in three battery clusters has now been delivered, installed and energised at the ESO site. With a total capacity of over 5 MWh, equivalent to the daily electricity needs of over 600 UK households, this is the largest flow battery installed in the UK to date. Scottish Water, UK: Installation and commissioning is now nearing completion for the four VS3 flow batteries delivered to Scottish Water’s site in Perth, UK. With a combined total capacity of over 0.8 MWh, the flow battery system is coupled with a 1 MWp solar array, Scottish Water’s largest to date. European Marine Energy Centre (EMEC), UK: The 1.8 MWh Invinity flow battery system has now been manufactured and is awaiting dispatch to the customer site on Eday, Orkney. As indicated in the 8 November Operational Update RNS, due to the risk of further delays in receipt of ancillary components and logistical challenges, factors beyond Invinity’s control, the Company expects system delivery will take place in early 2022 rather than late 2021. US Projects: successful delivery, installation, commissioning and handover of two VS3 battery modules at a site in Colorado for leading renewable energy company Ameresco who will conduct a multi-stage investigation into the application of flow battery technology to microgrids in defence applications. Asian Projects: successful delivery of 0.4 MWh of projects to customer sites in Taiwan and China. Yadlamalka, Australia: progress continues to be made by their project partners in respect of resuming the project as originally planned in H1 2022. The Company expects to provide an update during Q1 2022 on project progress.

Live Company Group 3.4p £5m (LVCG.L)

The Company announces an update on KPOP.FLEX and Marwell Zoo, a placing to provide funding for working capital and expansion of the KPOP brand. KPOP.FLEX festival update: ticket sales with Ticketmaster opened on Friday 10th December 2021, ticket sales to date have far outmatched expectations in excess of 10,000 tickets already sold in forty countries despite only two artists being confirmed. To provide funding for the KPOP-FLEX as well as the expansion of the concept and additional working capital for the growth of the Group post lock-down, the Company has raised £0.40m by way of a placing of 11,428,572 new Ordinary Shares of 1p each through Monecor (London) Limited trading as ETX Capital (“Monecor”) at a placing price of 3.5p per share. The Placing Price represents a discount of circa 6.7% to the closing price per Ordinary Share of 3.75p on AIM on 15 December 2021. Marwell Zoo: As previously announced the Company secured a multi-year contract with Marwell Zoo in November 2019 as part of which the Company can confirm that an all new BRICKLIVE tour: Brickosaurs Evolution will be on display at this iconic zoo from April 2022 to September 2022.

Mattioli Woods 885p £445.9m (MTW.L)

The specialist wealth and asset management business, today issues the following trading update for the six months ended 30 November 2021. Net inflows into the Group’s investment and asset management services and the number of new clients on-boarded in the financial year to date are ahead of the prior year, reflecting the strength of existing client referrals and new business initiatives. These initiatives are also driving an increasing pipeline of new business enquiries, with organic revenue growth in excess of 10% for the period. Each of the Group’s recent acquisitions are performing and integrating well. The anticipated revenue and cost synergies identified on Mattioli Woods’ acquisitions of Maven Capital Partners and Ludlow Wealth Management are already starting to be realised, with both businesses trading ahead of budget for the year to date. Anticipated further consolidation within the wealth management, pensions administration and financial planning sectors, with many more opportunities coming to market. The Group expects to build upon its strong track record of successful acquisitions by continuing to assess and progress bolt-on opportunities in the nearer term as well as potentially more substantial opportunities in the longer term, with all required to meet its strict investment criteria. The Group’s trading outlook for the current financial year remains in line with management’s expectations and Mattioli Woods remains well-positioned to deliver sustainable shareholder returns. A fuller trading update is expected to be released in early January 2022.

Oxford BioDynamics 36.3p £35.1m (OBD.L)

A biotechnology company developing precision medicine tests for immune health based on the EpiSwitch®3D genomics platform, provides an update on both its EpiSwitch® CST (COVID Severity Test) and EpiSwitch® CiRT (Checkpoint Inhibitor Response Test). EpiSwitch® CST: further to the announcement made on 25 October 2021, EpiSwitch® CST is available in the US. With the resurgence of COVID, specifically the delta and omicron variants, interest in EpiSwitch® CST has been increasing and the Company has launched a new digital marketing campaign to raise awareness of the availability of the test. EpiSwitch® CST can identify those with the greatest risk of experiencing critical, life-threatening disease because of a SARS-Cov-2 viral infection. EpiSwitch® CiRT: is a blood-based predictive test of a patient’s likely response to checkpoint inhibitor therapies to treat certain cancers, offering valuable insight for oncologists and payors alike. Clinical validation of the test is well underway and is expected to be completed by the end of 2021. As with many projects in biotech worldwide, the COVID-19 resurgence over the last month has impacted the final stages of validation by constraining people, resources and timelines. The Company has therefore taken the decision to launch EpiSwitch® CiRT in the new year, but is preselling the test to selected oncologists now and is poised to officially launch with an accompanying marketing campaign early in 2022.The Company expects to make further announcements related to EpiSwitch® CiRT in the coming weeks.

President Energy 2.1p £45.3m (PPC)

The energy company with a diverse portfolio of energy assets provides an update in relation to the spin-off and IPO of Atome Energy PLC. Atome has successfully completed its fundraising (subject to Admission) through its brokers and PrimaryBid, and has raised up to £9m at 80p per Atome Share. Of the £9m, the sum of £6m has been raised in the placing and Peter Levine through PLLG Investments Limited has agreed to provide Atome with a standby equity facility of up to £3m if needed for the balance. The facility will permit the minimum necessary dilution for all shareholders in Atome as the facility will only be exercised if in the reasonable opinion of the Directors of Atome it is required to fund further working capital needs. Under the facility Atome have will the right to require PLLG Investments Limited to subscribe for new Atome Shares at the issue price of 80p per Atome Share in the 18 months from Admission. The Company expects that Atome will publish its Admission Document later today, and Admission is expected to occur on 30 December 2021 as planned.

Rural Broadband Solutions* 3.2p £10.4m (AQSE:RBBS)

A significant provider of high speed broadband to rural areas of Great Britain, announces a Placing, Acquisition, Trading Update and appointment of Investec Bank as infrastructure funding advisor. A Placing and Subscription raising £1.675m at 3 pence per share in order to fund the acquisition of Cadence Networks Limited and drive organic growth before infrastructure funding is expected to be confirmed early next year has been undertaken. The acquisition of Cadence Networks Limited is being completed simultaneously with the Placing and Subscription and the Company announces that Investec Bank has been appointed as its infrastructure funding advisor. Cadence Networks is an Internet Service Provider (“ISP”) that provides bespoke communication and infrastructure services. Its current infrastructure within three London based data centres will give RBBS a significant foundation upon which it can build its own national data network, so that it is able to manage the quality of service and capacity to its own customers without using third party wholesale providers. The acquisition is strategically significant because it gives RBBS the entire route of traffic to the internet and allow RBBS to increase its gross margins as it will be able to buy data transfer capacity in bulk. Cadence also brings with it senior technical management enabling Chris New, currently leading the team as Chief Strategist & Technical Officer, to move towards more of a CEO role in 2022. Trading Update: Pre-registered project proposals (“PRPs”) have been approved by BDUK for £599k; A further £2.35m of PRPs have been submitted to support the builds within the giga bit village plan, with further submissions in the pipeline to fund our fibre network uplift within the towns; and 2,733 premises are now connected to our fixed wireless network (FWA) comprising approximately 270 masts / relays and multiple fibre connections. Money received from the PRPs which are submitted and approved as part of the Gigabit Voucher Scheme forms a separate revenue line and is intended to fund Capex for the Shropshire network.

Sareum Holdings* 5.45p £175.3m (SAR.L)

The specialist small molecule drug development company, announces that it has raised approximately £1.63m, before expenses, through a subscription by new and existing high net worth individuals for 32,636,311 new ordinary shares of 0.025p each in the capital of the Company at a price of 5.0p per share. The net proceeds from the Subscription will enable the Company to advance its two proprietary TYK2/JAK1 inhibitor programmes: SDC-1801, which is targeting autoimmune diseases, including the potentially life-threatening hyper-inflammatory response (the “cytokine storm”) that affects some Covid-19 patients, through Phase 1a clinical development; and SDC-1802, which is targeting cancers, through preclinical development; as well as for working capital purposes. As noted in its Final Results Statement of 25 October 2021, the Company is targeting the application for a Clinical Trials Authorisation for SDC-1801 in mid-2022, subject to successful progress. Clinical trial plans, including priority autoimmune indications and potential Covid-19 application, will also be developed in parallel. Preclinical development of SDC-1802 will be accelerated and is expected to complete in 2023, again subject to successful progress. Dr Tim Mitchell, CEO of Sareum Holdings plc, said: “This new subscription brings the funds raised by Sareum this year to over £6 million, reflecting the strong and continuing interest in our proprietary TYK2/JAK1 development programmes. Our significantly strengthened financial position will now enable us to take SDC-1801 through Phase 1a clinical development to assess its safety in healthy human volunteers. We also have the resources to complete the preclinical development for SDC-1802 for cancer. 2021 has been a significant year for Sareum and we look forward to reporting progress with our TYK2/JAK1 inhibitor development programmes in 2022.”

Tekmar Group 52.5p £24.8m (TGP.L)

A leading provider of technology and services for the global offshore energy markets, announces a contract award by DEME Offshore to supply Cable Protection Systems (CPS) for the Dogger Bank Wind Farm in the UK. Dogger Bank is a 3.6GW offshore wind farm located 130km off the North East coast of England. The project is a joint venture between SSE Renewables, Equinor and Eni and is set to become the world’s largest offshore wind farm, capable of generating enough renewable energy to power 6m UK homes once fully operational. Tekmar Energy has signed a contract with EPCI contractor DEME Offshore to design, manufacture and supply Generation 10 TekTube CPS to protect subsea inter array cables on the first two phases of the project, Dogger Bank A and B, with a customer option for the third phase, Dogger Bank C. All systems will be manufactured at Tekmar’s state-of-the-art facility in the North East of England which is located less than 50km from Dogger Bank’s export cable landfall site in Teesside for the third phase of the project. The first systems are expected to be delivered from August 2022 with production continuing into 2024.

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