Small Cap Feast

Small Cap Feast – 18 February 2021

Dish of the Day:

None

 

Off the Menu:

GoCo Group plc left the Premium list of the Main Market following a recommended cash and share acquisition by  Future plc, itself Standard listed on the Main Market.

 

What’s Cooking in the IPO Kitchen?

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring.   Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Auction Technology Group is considering an IPO on the Main Market.  The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions.  In FY20 the Group delivered pro forma revenue of £52.3m, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3m pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Team PLC announced their plans for an AIM IPO.  Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 .  Deal details TBC. 

Virgin Wines UK Plc recently set out their plans for an AIM IPO.  Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates.  Deal details TBC but media reports suggest a £100m valuation.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange.  Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA.  Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March.  The company raised more than $180m in January with a valuation of more than $7bn.

 

Breakfast Buffet

Altus Strategies 86.5p £60.6m (ALS.L)

The mining royalty Company generating a diversified and precious metal focused portfolio of assets announces that reverse circulation (RC) drilling has extended the strike length of the FT Prospect by at least 150m, to beyond 3km at the Tabakorole gold project (Tabakorole) located   in southern Mali. Altus holds a 49% equity interest and 2.5% Net Smelter Return (NSR) royalty on the Project. Exploration activities at Tabakorole are being funded by Marvel Gold Limited (ASX: MVL) (Marvel Gold) under its joint venture with Altus. Steven Poulton, Chief Executive of Altus, commented: “The Tabakorole project in southern Mali currently hosts a significant gold resource which is open along strike in both directions, and at depth. These are very encouraging initial drilling results from the resource expansion programme. They extend the potential strike of the FT Prospect to the southeast by at least 150m, to more than 3km. The results from the balance of the drilling programme, which also includes the potential northwest strike extension, are expected over the coming weeks.”

 

OptiBiotix 57p £50m (OPTI.L)

The life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, provides a strategic and financial update ahead of the Group’s final results for the year ended 31 December 2020. OptiBiotix’s commercial strategy of securing deals with multiple partners who make up the value chain (manufacturers, formulators and distributors) across multiple territories is producing results with rapid revenue growth against a low and decreasing cost base, demonstrating the scalability of the commercial model. The Company is now at a commercial tipping point with its probiotic and functional fibre divisions achieving profitability, increasing margins, an appreciating asset in its investment in SkinBioTherapeutics plc, and an established network of partners growing sales and expanding both the product range and territories in which they sell products.

 

Angle 94.5p £204m (AGL.L)

The liquid biopsy Company announced that the University Medical Centre Hamburg-Eppendorf, Germany, has published new research in the peer reviewed journal Cancers, that demonstrates the ability of the Parsortix® system to harvest circulating tumour cells (CTCs) with a mesenchymal phenotype, which can be used to detect the metastatic biomarker cysteine-rich angiogenetic inducer 61 (Cyr61) in breast cancer patients. The Cyr61 protein is a potent regulator of many cellular functions important in cancer development, including cell proliferation, survival/apoptosis, senescence, motility/chemotaxis, invasion into the extracellular matrix, gene expression, differentiation, and angiogenesis. Cyr61 is expressed in most forms of solid tumours and in breast cancer, potentially playing a role in tumour progression, metastatic expansion, and the development of resistance to anti-cancer drugs including endocrine therapies.

 

Essensys 212.5p £112m (ESYS.L)

The global provider of mission critical software-as-a-service (SaaS) platforms and on-demand cloud services to the flexible workspace industry, announces an unaudited trading update for the half year ended 31 January 2021. The Group has delivered a robust performance in the first half of the year with revenue in line with management expectations at £10.6m.  Despite the continued impact of Covid-19 the Group’s US business continues to grow strongly with half year recurring revenue increasing 18% to £4.42m from £3.76m whilst the UK business continues to prove its resilience. Connect site churn remains very low at 3% year to date.  The Group closed the half year with 431 live Connect sites, a net increase of 8% year-on-year (400 as at 31 January 2020), and has an additional 38 new Connect sites contracted for delivery.

 

Agronomics 20p £100m (ANIC.L)

The investor in alternative proteins with a focus on cellular agriculture and cultivated meat, announced it has today invested a further 2m (Subscription) in existing investee company Meatable B.V. (Meatable). The Subscription will be paid using cash from the Company’s own resources and will take Agronomics’ total cash investment in Meatable to € 5m. Richard Reed, Chairman of Agronomics, noted: “We are delighted to further support Meatable as one of the leading companies in the field of cultivated meat and a major holding in the Agronomics’ portfolio. We maintain our enthusiasm for Meatable, as they continue to scale-up production, achieve their scientific milestones, and move towards commercialisation.”

 

1Spatial 31p £34.3m (SPA.L)

The developer of Location Master Data Management (LMDM) software and solutions announced that, in collaboration with Ordnance Survey, it has been awarded a contract to deliver a Proof on Concept for the Energy Networks Association (ENA). The project will deliver an in-depth digital system map of the UK’s energy system to support a more efficient pathway to net zero. The collaboration will see 1Spatial’s 1Integrate and 1Datagateway tools deployed to ingest, audit and validate the network data from all of Britain’s electricity and gas network operators to ensure it is fit for purpose before being visualised in Ordnance Survey’s Digital Asset Hub. The joint solution will host the integrated National Energy System Map covering the entirety of Great Britain. The map will provide customers with information about energy network assets, where those assets are located as well as who owns them.

 

Cora Gold 8.5p £17.5m (CORA.L)

The West African focused gold Company reported that the Farassaba III permit has been re-awarded, on the 12 February 2021, for a new nine-year term.  The new permit, which covers the same 93km2 area of the expired permit, comprises part of the +300km2 group of four permits which are collectively known as Cora’s ‘Yanfolila Project Area’.  The Yanfolila Project Area is located around the Yanfolila Gold Mine of Hummingbird Resources Plc (AIM:HUM).  The permits range between 8km-30km in distance from the Yanfolila Gold Mine processing plant. Bert Monro, CEO of Cora Gold, commented, “Farassaba III is one of four Cora permits that surround the operating 2Moz Yanfolila Gold Mine.  The permits range from only 8km from the processing plant up to around 30km away so are within possible trucking distances if economic discoveries are proven on the permits.  Cora has had some exciting drill results across this portfolio of permits and looks forward to completing further exploration on the ground during 2021.”

 

Supermarket Income REIT 109.25p £728m (SUPR.L)

The real estate investment trust providing secure, inflation-protected, long income from grocery property in the UK, announces the acquisition of a further stake (Acquisition) in the beneficial interest in one of the UK’s largest portfolios of supermarket properties (Portfolio) from an Aviva Investors managed fund. The 25.5% beneficial interest has been acquired through the Company’s existing 50:50 joint venture with British Airways Pension Trustees Limited. The purchase price is £115.0m (excluding acquisition costs) meaning that the Company’s contribution to the JV to fund the Acquisition is £57.5m (excluding acquisition costs). The JV acquired its initial 25.5% beneficial interest from British Land Plc in May 2020. Following this second acquisition, the JV’s ownership in the Portfolio is 51.0%. The remaining 49.0% beneficial interest is held by Sainsbury’s plc.

 

Inspiration Healthcare 106.5p £72.5m (IHC.L)

The global medical technology Company confirms that it expects to announce its preliminary results for the financial year ended 31 January 2021 on 27 April 2021. The Group also gives a post period end update in respect of the financial year ended 31 January 2021. Following the announcement made on 25 January 2021, when the Group announced that it expected to exceed market expectations with revenues to exceed £36.5m, it now anticipates reporting Group revenue of approximately £36.8m representing an increase of 52% compared to the prior financial year with the inclusion of SLE, Viomedex and the ‘one time’ ventilator orders relating to Covid-19 in the UK. As announced in January 2021, EBITDA1 is expected to be not less than £4.9m, representing growth of more than 53% over the prior financial year.

 

Oriole Resources 1.5p £23m (ORR.L)

The exploration company focussed on West Africa provides an update on its 90 per cent owned district-scale licence package in Central Cameroon (‘Licence Package’). Following the recent issue of the licences made to the Company’s subsidiary, Oriole Cameroon SARL, and its partner Reservoir Minerals Cameroon Sarl, a subsidiary of Bureau d’Etudes et d’Investigations Géologico-minières, Géotechniques et Géophysiques SARL (‘BEIG3’) (announcement dated 3 February 2021), an independent desktop remote sensing study has now been completed over the entire 3,592km 2 Licence Package. This work has identified 12 initial priority gold targets, which will be given particular attention during the Company’s planned mapping and stream sediment sampling programmes later in H1-2021.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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