Small Cap Feast

Small Cap Feast – 20 September 2021

Dish of the Day:

Off the Menu:

Tricorn is to leave AIM following an intention to appoint administrators

What’s Cooking in the IPO Kitchen?

Responsible Housing REIT to join the Main Market (Premium) raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.

Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. Offer TBA. Due 30 Sep.

Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.

Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offeringon the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.

Peel Hunt (to be renamed PH Capital), a UK mid and small-cap specialist investment bank, announces its intention to seek admission of its ordinary shares to trading on AIM. Admission is expected to take place on or around 29 September. In conjunction with a placing of Ordinary Shares the Company will be conducting an intermediaries offer.

Oxford Nanopore Tech—to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for £150m of a total raise of circa £300m. Due early Oct.

Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.

Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.

Petershill Partners, Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bn of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA

GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September

Responsible Housing REIT to join the Main Market (Premium) 5 October, raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.

Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (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. Offer TBA. Due Late September.

Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped coppergold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

Breakfast Buffet

Arecor RX 275p £76m (AREC.L)

he biopharmaceutical company advancing today’s therapies to enable healthier lives, today announces that its ultraconcentrated ultra-rapid acting insulin, AT278 met all of its primary and secondary endpoints with positive headline results from the Phase I clinical trial. – AT278 delivers significantly accelerated PK/PD profile compared to NovoRapid ® -Potential to be first concentrated (500U/mL) ultra-rapid acting insulin product enabling miniaturisation of next generation insulin delivery devices – Potential to enable more effective disease management for insulin resistant patients requiring >200 units of insulin per day.

City of London Investments 71.5p £75m (CIN.L)

The parent company of Recognise Bank Ltd, a digitally led new SME bank announced that the Prudential Regulation Authority has lifted the deposit restrictions on Recognise Bank. This will enable Recognise Bank launch its personal and business savings products and to start taking deposits. Recognise Bank will launch FSCS protected personal savings products on Tuesday 21st September 2021, with business saving products due to launch later. As announced in August 2021, City of London Group agreed the sale of Milton Homes Limited and completed a capital raise to meet the capital requirements for the PRA to remove restrictions on deposits. The development of Recognise Bank has been a central part of COLG’s strategy, to address the funding and service gap experienced by underserved UK SMEs. The new capital and funds from the deposit taking products will enable Recognise Bank increase lending to the UK’s small and medium sized businesses.

Evgen Pharma 6.2p £17m (EVG.L)

The clinical stage drug development company developing sulforaphane based medicines for the treatment of multiple diseases, notes the publication of data in glioblastoma cells (GBM) generated by Dr Euphemia Leung and Prof Bruce Baguley of the University of Auckland, New Zealand in the pre-print journal BioRxIV (Leung, Wright and Baguley, 2021 https://www.biorxiv.org/content/10.1101/2021.09.14.459936v1). The in vitro data show effectiveness of the Company’s lead asset SFX-01 in glioblastoma cells and 3D spheroids from several patients in New Zealand, together with the more commonly used commercially available cell lines. 3D spheroids are aggregations of tumour cells that more closely reflect the structure of tumours in patients. In these in vitro experiments, SFX-01 demonstrated inhibition of glioblastoma cell growth, confirming work previously announced by the Company in another academic centre. Evgen recently announced the grant of Orphan Drug Designation in the USA for Malignant Glioma, affording the programme additional data protection and other incentives.

Igas 34.55p £43.3m (IGAS.L)

IGas, through its wholly owned subsidiary GT Energy UK Limited (GTE), has signed a MoU with SSE for the development of a geothermal district heating project in the City of Stoke-on-Trent. SSE will develop and deliver a district heating network in Stoke-on-Trent working with GTE and Stoke-on-Trent City Council. The MoU grants exclusivity to each of SSE and GTE with regard to the Project for a period of 12 months with certain milestones including executing a heat offtake agreement in relation to GTE’s future geothermal plant.

Jade Road Investments* 20p £23.1m (JADE.L)

The London quoted pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns, announced its interim results for the six months ended 30 June 2021. Total income increased to US$1.25m from interest payments and fair value adjustments (H1 2020: US$1.19m). Net loss of US$0.27m (H1 2020: US$0.70m). The core drivers of the net loss are a US$259k finance expense, mainly related to the interest payable on the Company’s corporate bond. NAV per share at 30 June 2021 US$0.90 (GBP0.65) (30 June 2020 US$0.95/GBP0.75). Period end cash position of US$2.56m (30 June 2020: US$3.2m). Future Metal Holdings Limited: In March 2021, a new contractor was appointed to further enhance the efficiency of the operation and reach customers with a further geographical radius. Sales have seen an upward trend in the first half of 2021 compared to 2020. Fook Lam Moon: FLM’s business was impacted by the COVID-19 pandemic in 2020, which severely limited inbound tourism, particularly from Mainland China. As the Hong Kong government eases COVID-19 restrictions on restaurants and some air travellers in 2021, the food and beverage industry is gradually recovering to pre-pandemic levels. DocDoc Pte Ltd: in November 2020, DocDoc partnered with SpesNet Global Group, a leading healthcare technology provider, to integrate its digital third-party administrator (TPA) technology and provide a first-of-its-kind complete digital health ecosystem to insurers, supporting their policyholders through the continuum of care. Under this agreement, DocDoc will receive exclusive access to SpesNet’s platform to include Singapore, Malaysia, Thailand, Hong Kong, India, and the People’s Republic of China. Meize Energy Industries Holdings Limited has maintained a full order book from its clients in 2021 due to the strong market demand, especially the offshore wind market. The Jiangsu plant initiated an expansion in early 2021 to meet the rising demand, which was completed and commenced operation in June 2021.

K3 Tech 176.5p £79m (KBT.L)

K3, which provides mission critical software and cloud solutions announced the sale of the business and assets of its non-core Sage Business to Pinnacle Computing (Support) Ltd (Pinnacle), one of the UK’s largest resellers of Sage software, for £1.68m in cash at completion. Completion is expected in early October 2021, following a TUPE consultation process in respect of the transfer to Pinnacle of Sage Business employees, and the Disposal consideration is subject to a downward adjustment of circa £0.2m in respect of any restructuring costs that Pinnacle may undertake immediately following completion. In the financial year to 30 November 2020, the Sage Business generated revenue of £5.2m and a pre-tax loss of £1.0m. Current recurring revenues are £3.1m with gross profit of £1.5m. Net liabilities stood at approximately £1.0m at 30 May 2021. The disposal is in line with the Board’s strategy of focusing resources on key higher-margin products and markets, and follows the sale of other non-core businesses, as previously announced. The disposal proceeds will further strengthen K3’s balance sheet, and generate a profit pre-tax of approximately £1.6m, which will be accounted for as an exceptional contribution to trading results in the current financial year ending 30 November 2021.

Live Company Group 4.65p £6.8m (LVCG.L)

Signing of a new contract with Paisley First for BRICKLIVE Fantasy Kingdom. This will be the fifth time that the Group has worked with Paisley First, who plan to show the models in throughout Paisley Town centre. The Fantasy Kingdom models which include a dragon, princesses and a wizard will be on show from June 2022 to August 2022. Chairman David Ciclitira commented: “I am delighted to announce a further contract with Paisley First – our fifth with them, which builds on our strategy of establishing long standing relationships and repeat business with our clients. We continue to see green shoots in our sector as bookings and enquiries for 2022 increase .”

Mirriad 32.75p £91.4m (MIRI.L)

The in-content advertising company today announces a strategic partnership with Influential, the world’s largest influencer marketing company. Representing a significant opportunity, the agreement will expand the range of inventory Mirriad can access in the fast-growing and extensive influencer marketing sector. It also underlines the increasing speed of the company’s development in the strategically important US market. The exclusive agreement includes a targeted introducer strategy for Influential’s talent and the clients of both companies.

Open Orphan 26p £174.4m (ORPH.L)

The rapidly growing specialist clinical research organisation (CRO) and world leader in vaccine and antiviral testing using human challenge clinical trials , announces that hVIVO , a subsidiary of Open Orphan plc, has signed a £5.7m contract with a specialist biotechnology company developing therapeutics for respiratory viral infections, to test its antiviral product using the hVIVO Influenza human challenge study model. The human challenge study is expected to commence in Q1 2022 and will be conducted at hVIVO’s state-of-the-art facilities in London. The Company expects the revenue from the contract to be recognised across 2021 and 2022.

Shanta Gold 13.75p £144m (SHG.L)

Resource update for the West Kenya Project in Kenya. 82,700 ounces grading 10.62 g/t converted to Indicated resources at Isulu. Implied resource conversion ratio of approximately 130%, from Inferred. 34,900 oz grading 3.92 g/t converted to Indicated resources at Bushiangala. Implied resource conversion ratio of approximately 110%, from Inferred. 117,600 oz grading 7.04 g/t converted to Indicated in total at a conversion rate of over 100%, following Phase 1 drilling of 9,383 metres through to 30 June 2021;. Approximately 994,000 oz of Inferred resources is being targeted during Phase 2 and 3 drilling for potential conversion to Indicated category. Recent drilling results yielded numerous highgrade intervals, suggesting the presence of high-grade shoots on all levels. 38 unassigned significant intersections at Bushiangala yet to be included in the resource. An update on the impact on the overall Mineral Resource Estimate will be announced when Phase 2 drilling results are completed, expected in Q1 2022. Mineral Resource Model independently verified and Resource estimated by Adiuvare GE (Cath Pitman P. Geo) and is compliant with NI 43- 101 reporting standards.

Head Chef:

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

*A corporate client of Hybridan LLP

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