Small Cap Feast
Small Cap Feast – 1st April 2022
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What’s Cooking in the IPO Kitchen?
First Tin plc, a tin development company with advanced, low capex projects in Germany and Australia, intends to list on the Main Market. First Tin is led by an experienced team of tin specialists, committed to the environmentally sensitive and low carbon development of advanced hard rock tin projects in conflict free, low political risk jurisdictions. The Company has raised £20m to execute its plan to bring its two 100% owned tin mines into production before the end of 2025 so that it can provide provenance of supply to support the current global clean energy and technological revolutions. Expected 8 April 2022.
Asimilar Group plc, currently listed on AIM, intends to the join Aquis Stock Exchange Growth Market. The Group invests in the technology and software sectors and aims to focus primarily on opportunities in the Big Data, Machine Learning, Telematics and Internet of Things areas. Whilst the Directors are principally focused on making investments in private businesses, they do not rule out investments in listed businesses if this presents, in their judgment, the best opportunity for Shareholders. Expected 4 April 2022.
Anglesey Mining, a UK mining company currently listed on the Main Market (Premium) intends to move to AIM. Anglesey’s principal asset is a 100% interest in the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales. Anglesey is currently exploring and developing the property, which has a high potential for the discovery of additional mineral resources through the development of a new, modern mine in an environmentally sustainable manner. Anticipated Mkt Cap TBC, current capitalisation c£8m. Expected 8 April 2022.
Cordiant Global Agricultural Income plc intends to float on the Main Market (Premium). The Company’s investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector. The Company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions. The Company will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit. Mkt Cap and Capital to be raised TBC.
Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC.
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. Mkt Cap approximately £80m. Raising up to £30m. Due 5 April 2022.
Barkby Group 15p £20.5m (BARK.L)
Barkby Pub Co. Ltd has acquired the Freehold of The Coach and Horses, a 16th century village pub with 9 rooms in Chiselhampton, Oxfordshire. Barkby will now undertake a comprehensive refurbishment of the pub with reopening scheduled for June 2022. The acquisition is a further expansion of the Group’s portfolio of high-quality pubs with accommodation. Barkby Pubs’ portfolio now consists of 8 premises with a total of 69 rooms. Charles Dickson, Executive Chairman of Barkby Group Plc, commented: “The Coach and Horses’ location in the Oxfordshire countryside is highly complementary to our existing portfolio of premium pubs. The pub will offer customers a high-class drinking, dining and sleeping experience, and I very much welcome them into the Barkby Group.”
BWA Group 0.47p £1.9m (AQSE:BWAP)
BWA Group plc, which has mineral exploration licences in both Cameroon and Canada at various stages of development and is quoted on London’s AQSE Growth Market, announces, by way of an update to its announcement of 9th March 2022, that it is negotiating with certain parties to provide the funding described in that announcement and that, accordingly, the issue will remain open. The delay has largely been caused by market uncertainties arising from the war in Ukraine. Those parties who have already subscribed to the issue will be given the opportunity to continue their subscription until the issue closes or to withdraw. A further announcement will be made as soon as possible.
Cohort 462p £190m (CHRT.L)
The technology group, announced that its subsidiary Marlborough Communications Limited has received two orders from the UK Ministry of Defence for its long-term partner INVISIO’s hearing protection and communication ancillaries, for use on armoured fighting vehicles and in dismounted close combat, one of the most demanding and challenging noise environments within the UK military. Deliveries commence in the second half of 2022 through to mid-2023. The first order, which is valued at over £9m, is for the INVISIO V-Series Gen II platform for use on armoured fighting vehicles. The solution offers the user efficient communication and unique dual hearing protection by combining the in-service INVISIO X5 in-the-ear headset and its T7 over-the-ear headset, which both connect to the INVISIO V60 control unit. The second order is for further deliveries of INVISIO’s Tactical Hearing Protection System Dismounted Close Combat Users program (THPS DCCU). The THPS DCCU provides superior hearing protection and enhanced situational awareness for dismounted close combat personnel.
EQTEC 0.95p £81.4m (EQT.L)
The technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production announced that EQTEC’s wholly owned subsidiary, Deeside WTV Limited has signed a binding supplemental agreement with Logik Developments Limited. The Supplemental Agreement, inter alia, sets out the terms on which Logik and Deeside WTV have agreed to vary the terms of the share purchase agreement signed by the Parties on 7 December 2020, as amended by the supplemental agreement announced on 6 December 2021. Deeside WTV will acquire 32% of the share capital of Logik WTE Limited the entity which holds the land and necessary planning permissions for the Deeside RDF project, with the consideration to be satisfied by the settlement of advances from the Group to Logik and the Project SPV in an amount of c. £2.3m; Completion of is subject to third party consent and is expected to complete on or before 30 June 2022; Parties are in discussions to procure a buyer for the Project SPV at a minimum valuation of £15m. Subject to the sale of the Project SPV, EQTEC will invoice up to £2m for its project development services to the Project SPV (such fee to be reduced on a pound for pound basis if the investment received is less than £17m), subject to certain conditions to be finalised and agreed as part of ongoing discussions with potential buyers.
Lords Group Trading 100p £158.5m (LORD.L)
The distributor of building materials in the UK, has acquired a 90% interest in the leading plumbing and heating businesses, DH&P Trade Counters Holdings Limited and DH&P HRP Holdings Limited (together DH&P), for a total consideration of £9.3m. The remaining 10% interest in DH&P’s issued share capital will be retained equally by the business’ current vendors, who will remain in their management roles with the business. The Acquisition has been funded from Lords’ existing resources and is expected to be immediately earnings accretive post completion. The business further extends the Group’s existing plumbing and heating network of 9 branches represented under the Mr Central Heating brand. For the year ended 30 July 2021, DH&P generated revenues of £ 27.6m and underlying EBITDA of £2m. The Acquisition consideration will be satisfied by an initial £8.93m cash payment and a deferred cash element of £357k to be paid in 12 months, on a cash-free, debt-free basis. Simultaneous call and put options over the remaining 10% of DH&P’s issued share capital will be held by the Group and DH&P’s vendors, respectively, which will not be exercisable prior to 31 March 2025 and the price subject to DH&P’s EBITDA performance.
Love Hemp Group 0.55p £6.5m (AQSE:LIFE)
The brand-led consumer goods company focussed on CBD health and wellness solutions, has been included on the latest update from the Food Standard Agency’s Public List of CBD products, enabling Love Hemp to progress through to the validation stage in due course. Love Hemp has worked hard to ensure that the products are of the highest quality standards and meet all requirements as stipulated by any regulatory body. The FSA’s latest Public List endorses all of the submitted products and enables Love Hemp to continue to trade legally. Importantly, the FSA’s decision also provides clarity for consumers. Love Hemp had submitted multiple individual products at the beginning of this process, two years ago, and has invested initially over £300k to ensure it received the best legal and scientific advice for a successful application. As part of the manufacturing and production process, Love Hemp is one of the few brands with an in-house Quality Assurance team which gathers and catalogues invaluable product and study data to ensure quality control. Yesterday’s announcement from the FSA confirms that Love Hemp is well positioned to accelerate its growth plans with existing and prospective sales channels, high street retailers, business to business, alongside our own e-commerce platforms, direct to consumer.
Oracle Power 0.34p £9.1m (ORCP.L)
The international natural resources project developer, has successfully raised gross proceeds of £800k by way of a placing at a price of 0.325p per Ordinary Share. The net proceeds of the Placing are expected to be primarily applied to support the advancement of the Company’s green hydrogen project through the joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum (through his wholly owned company, Kaheel Energy Limited), as was announced on 30 March 2022. The joint venture company, Oracle Energy Limited, will be focused on investing in and developing a facility for the manufacture of green hydrogen in the Province of Sindh, Pakistan. As previously announced, Oracle Energy Limited, will be funded on a 70:30 basis by Kaheel Energy Limited, and Oracle Power respectively and the funds raised today are expected to be used primarily to accelerate the advancement of the green hydrogen project through the joint venture.
Quiz 14.98p £18.6m (QUIZ.L)
The omni-channel fashion brand provided a trading update for the financial year ended 31 March 2022. The positive sales momentum previously reported by the Group during the Christmas trading period continued through the final quarter of the Group’s financial year. This encouraging momentum was achieved across both the Group’s store and concession portfolio as well as its e-commerce website, and resulted in like-for-like revenues broadly consistent with those generated in FY 2019, prior to the impact of COVID-19. As a result of this strong performance, total FY 2022 Group revenue is expected to be ahead of expectations at approximately £78m. Furthermore, the Group is pleased with the gross margin generated across the year, and that the gross margin recorded in the last quarter was consistent with the same period in FY 2019. This was driven by strong full-price sell through of QUIZ’s trademark occasionwear and dressy casualwear products in response to the increased prevalence of social occasions such as weddings, and holidays compared to the previous year. QUIZ therefore anticipates reporting a return to profitability in FY 2022 with an EBITDA generated of no less than £4.3m and a profit before tax of no less than £0.5m.
Simec Atlantis Energy 2.05p £14.8m (SAE.L)
SAE announced that MeyGen has secured a non-convertible loan of £2.5m from Scottish Enterprise, which will enable the redeployment of the remaining two turbines at the MeyGen site within the next 12 months. This follows the successful deployment in March 2022 of the AR1500, 1.5MW tidal turbine. The first of these turbines is scheduled for redeployment in May 2022 and the final turbine will be deployed in March 2023, complete with a retrofitted wet mate connection system, which more than halves the costs of future turbine recoveries and deployments. Demonstrating the viability of the tidal turbines is vital to the success of MeyGen, the largest planned tidal stream project in the world. When operational, the turbines have far exceeded expectations and this funding from Scottish Enterprise will support deployment and activity to ensure continuation of the project.
Tekcapital 31.5p £44.6m (TEK.L)
The UK intellectual property investment group focused on creating valuable products from investing in university technology that can improve people’s lives, provided an update on MicroSalt, Inc., the U.S. operating subsidiary of Salarius, Ltd. The Company successfully completed roll-out of SaltMe! crisps to Kroger Company, the United States largest supermarket by revenue. The roll-out has been expanded from 1,800 stores to 2,200 stores. Combined with other store locations, SaltMe! crisps are now being sold in over 2,400 stores across United States. Additionally, the Company announced that its SaltMe! potato chips will be available to foodservice (catering) operators. This major milestone is consistent with MicroSalt’s mission to provide healthier, full-flavor snacks that deliver 50% less sodium per serving, to help promote cardiovascular health. Rick Guiney, CEO at MicroSalt Inc. said “Our microscopic salt crystal technology is creating new opportunities for consumers to lower their sodium intake without sacrificing flavor. It makes perfect sense for foodservice operators to offer this option to the thousands of consumers they serve looking to live a healthier lifestyle without sacrificing flavor.” MicroSalt is a subsidiary of portfolio company, Salarius. MicroSalt aims to revolutionise the food industry with its patented sodium microparticle, that delivers the full-flavour experience of salt with roughly half the sodium. MicroSalt® is all-natural, non-GMO, and Kosher.
Emily Liu, CFA, CAIA
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