Small Cap Feast

Small Cap Feast – 19 November 2021

Dish of the Day:

Life Science REIT (LABS) has joined AIM raising £350m. Anticipated mkt cap also £350m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. .

Red Capital (REDC)  has joined the main market. Red Capital is focused on investment and acquisition opportunities in the business services and technology sectors.  Company is led by David Williams as Chairman, and Simon Webster as Director, both of whom have substantial experience creating value through accelerated buy-and-build growth strategies.  Initial placing of £1m to be used to support the Company’s M&A search and diligence activities in pursuit of its first acquisition

 

Off the Menu:

No leavers today

 

What’s Cooking in the IPO Kitchen?

4GLOBAL to join AIM, a London based software, data and services sport and health company. Offer TBA. Due early Dec.

Skillcast to join AIM. Skillcast provides software and content subscriptions and related professional services to enable companies to implement their staff compliance and training obligations.  Offer TBA. Due early Dec.

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 early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market of the London Stock Exchange 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.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa.  The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021.  Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website).  The Company does not intend to raise any capital prior to or concurrent with admission to AIM.  The market capitalisation on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on Admission: £92.0m.  Due 22 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. 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.  Due early Dec. Raising £5m.

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 December.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. 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.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

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. 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.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the DRC and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Due Mid Nov. Offer TBC.

 

Breakfast Buffet

Cordel Group (formerly Maestrano) 12.5p £21.3m (CRDL.L)

CRDL. Maestrano, the Artificial Intelligence platform for transport corridor analytics, announced that, further to its announcement on 18 November 2021, the Company’s change of name to Cordel Group plc (AIM:CRDL) has now been completed and is expected to take effect on AIM from 8.00 a.m. today. The Company’s ticker will be CRDL and the website address (including the investor relations content and the information required by AIM Rule 26) will change to www.cordel.ai . The Company’s ISIN (GB00BYZQM590) and SEDOL (BYZQM59) will remain the same.

 

eEnergy 13.75p £47.5m (EAAS.L)

AGM statement from the  Energy Efficiency-as-a-Service and Energy Management-as-a-Service business in the UK and Ireland  “The Group continues to trade in-line with market expectations for the current financial year ending 30 June 2022 (FY22). eEnergy continues to make significant progress towards its stated goal to provide a simple, one stop shop solution to organisations and companies wanting a path to Net Zero emissions. eEnergy’s growing portfolio of energy reduction solutions, complemented by its ‘Buy & Build’ strategy has helped diversify the Group and cultivated a large and relevant customer base to which the Group can cross-sell by delivering its end-to-end offering. The acquisitions made in FY21 have been integrated into the Group and are delivering to expectations. The UtilityTeam acquisition, the largest to date, completed in September, is being integrated by the newly established leadership team to form the consolidated Energy Management division.  This work is on track and expected to complete by the end of June 2022. Further, in FY22, the Group expects to roll out a new onsite solar generation offer and intends to add electric vehicle charging solutions that will help clients achieve energy independence and resilience as they implement net zero strategies.”

 

Ironridge Resources 22.5p £129m (IRR.L)

The African focussed minerals exploration company announced that the Cape Coast application has been granted as an exploration license. The newly granted license is adjacent to the Mankessim exploration license which hosts the Ewoyaa Lithium Project where the Company has defined an initial JORC 2012 compliant mineral resource estimate of 14.5Mt at 1.31% Li2O in the inferred and indicated category, including 4.5Mt at 1.39% Li2O in the indicated category in Ghana, West Africa.

 

ReNeuron 111p £63.3m (RENE.L)

The  UK-based global leader in the development of cell-based therapeutics, announces that new data relating to its CTX-derived induced Pluripotent Stem Cell (CTX-iPSC) platform has been presented this week, showing their commercial potential for the development of mass-scale therapeutics for peripheral nerve repair. The data has been presented at the 6th world congress of the Tissue Engineering and Regenerative Medicine International Society (TERMIS2021), a leading scientific conference taking place in Maastricht, Netherlands. Ms Rebecca Powell from the University College London Centre for Nerve Engineering presented new data showing for the first time that ReNeuron’s CTX-iPSCs can be differentiated to produce Schwann cells, a specific type of support cell that promotes the survival and function of peripheral nerves and importantly, when present in the appropriate three-dimensional configuration, could promote the regrowth of nerve axons damaged by traumatic injury, thus hopefully resulting in the regain of lost functions.

 

Scancell 20.5p £167m (SCLP.L)

The developer of novel immunotherapies for the treatment of cancer and infectious disease, today announces the enrolment and treatment of the first patient in its multicentre SCIB1 Phase 2 clinical trial at the Churchill Hospital, Oxford University Hospitals Trust, UK. The Phase 2 study is designed to assess whether the addition of SCIB1 to pembrolizumab (Keytruda®) will result in an improvement in the tumour response rate, progression-free survival and overall survival in patients with advanced melanoma, who are also eligible for treatment with pembrolizumab. As a result of the COVID-19 pandemic, screening and recruitment into the study was paused due to the prioritisation of COVID-19 patients in UK hospitals. Patient screening has now been re-initiated in the UK, with Professor Poulam Patel, Professor of Clinical Oncology at the University of Nottingham as the Chief Investigator. The Nottingham site, along with the Oxford centre, Velindre Hospital and Mount Vernon Hospital are actively screening subjects, with additional centres due to come online in the coming months.

 

SDX Energy 9.75p £20m (SDX.L)

The MENA-focused energy company announced the commencement of the second phase of its 2021 drilling campaign in Morocco, with the spud of the KSR-19 well. KSR-19 will be followed by the SAK-1 well which, if successful, will open a new exploration area for SDX in the Company’s Lalla Mimouna Sud concession.

 

Symphony Environmental Technologies* 28p £50.2m (SYM.L)

The global specialists in technologies that make plastic and rubber products “smarter, safer and more sustainable” announced a strategic alliance with a team of specialised and experienced people in India who understand the culture and business requirements of a country with 17.7% of the world’s population. Symphony Environmental Limited a wholly owned subsidiary of the Company, has therefore entered into an agreement to form a joint venture company in India with Indorama India Private Limited, a wholly owned subsidiary of Indorama Corporation Pte. Ltd. The JV company, called Symphony Environmental India Pvt Ltd, will have an initial share capital, the equivalent in Indian currency, of GBP 100,000. The shares of Symphony India will be held 46.5% by Symphony UK, 46.5% by Indorama and 7% by Mr. Arjun Aggarwal, an Indian citizen, who has been appointed Managing Director of Symphony India. Symphony UK has awarded Symphony India an exclusive Distribution Agreement to market and sell Symphony’s d2w and d2p masterbatches in India. The parties are already preparing an active programme of media communications and direct selling.

 

Van Elle Holdings 45p £48m (VANL.L)

The UK’s largest ground engineering contractor today provides a trading update for the six months ended 31 October 2021 ahead of announcing its half-year results, which are expected to be released on Monday 31 January 2022. Strong activity levels have continued in most divisions, leading to significantly increased revenues of approximately £60m. This represents a 56% increase over the prior year comparative period (HY21: £38.3m) as well as a return to growth over pre-Covid comparative revenues, with run rates exiting the Period showing good capacity usage across all divisions. As expected, recovery in Rail volumes continued to lag the other segments, with residential construction showing the highest activity levels. Encouragingly, the Rail business has seen an improvement in enquiries and contract activity towards the end of the Period, which is expected to continue in the second half. The Group has continued to experience the effects of industry-wide supply chain challenges, salary inflation and short-term employee availability.  The Board is pleased with the progress delivered in the first half of the year and continues to be confident that FY22 full year performance will be in line with market expectations.

 

Westminster Group 4.1p £13.6m (WSG.L)

Westminster, the specialist security and services group, notes recent press speculation with regards to a potential airport contract in the Central African Republic. The Company confirms that it is in discussions relating to a managed services contract, although there is no certainty as to whether these will result in a contract or to the timing thereof. The Company had anticipated securing and commencing the contract referred to above, and select other contracts, including its managed services contract for 5 airports in the Democratic Republic of Congo, earlier this year. However, as cautioned in the Company’s interim results statement released on 13 August 2021, the impact of, inter alia, ongoing COVID-19 related travel restrictions, a delay in ratification of the DRC contract, and ongoing general business caution across the Company’s targeted jurisdictions, have delayed certain anticipated contract awards and/or associated revenue generation. Consequently, the Company now expects H2 2021 revenue to be marginally ahead of H1 2021 and H2 2021 loss before tax to be broadly similar to H1 2021. In addition to the above mentioned CAR contract the Company notes that it is in advanced discussions on several sizeable potential contract awards that could positively impact this year’s expected outturn, although it is more likely that these will slip into 2022.

 

Wishbone Gold 10.9p £18.8m (WSBN.L)

Wishbone Gold 10.9p  £18.8m (WSBN.L)

Preparation for drilling at Red Setter has commenced and independent consultants have reported that the geochemistry programme recently conducted, although only 60% completed to date, has defined 4 new high priority target zones for follow up drilling. The Red Setter Project is situated on the 57.4km 2 wholly owned Exploration Licence EL45/5297 and is located 13 km south-west of Newcrest Mining’s Telfer Gold-Copper Mine and 60 km west of Newcrest and Greatland Gold’s Havieron discovery in the Paterson Range of Western Australia.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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