Small Cap Feast

Small Cap Feast – 20/04/2021

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What’s Cooking in the IPO Kitchen?

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley. Target Admission Date of 26 April.
Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April.
Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security Due early May,
musicMagpie is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games). Expected 28 April. Offer details TBA
Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April.
Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”
PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April.
Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April.
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Due 27 April.

Breakfast Buffet

Boku 181p £530.5m (BOKU.L)

The global provider of mobile payment and identity solutions has partnered with French mobile service providers SFR, Orange and Bouygues Telecom to launch mobile identity products aimed at protecting consumers against cyber-hacks, account takeover attacks, SIM swap attacks, and other forms of digital fraud. There is a growing demand for mobile identity authentication services in France as more companies continue to realise the necessity of advanced multi-factor authentication and digital identity proofing solutions in the wake of increased incidences of digital fraud. Boku’s Digital Identity Proofing solution will match mobile subscribers account registration details to new account registration information to ensure that new accounts are being created by the person, and not a fraudster. The Phone Number Verification (Authentication) solution will verify mobile number possession directly on the device by using its built-in connectivity to the mobile operators’ wireless network. Moreover, Boku will be able to provide signals around changes to the SIM card, phone number changes and reassigned numbers to further curb various common tactics of fraudsters.

RGB Group 129.5p £110.84m (RBGP.L)

The professional services group announced its audited results for the year ended 31 December 2020. Group revenue and gains on litigation assets up 8% to £25.6m (2019: £23.7m). Professional Services revenue up 12.6% to £22.4m (2019: £19.9m). Gains on litigation assets of £3.1m (2019: £3.8m). EBITDA of £10.2m (2019: £9.4m). Separately announced the acquisition of the business of Memery Crystal LLP, a leading legal services provider, for a total consideration of £30.0m. The Board expects the transaction to be immediately, and materially, earnings and value-enhancing to the Group. In the year ended 30 April 2020, Memery Crystal had unaudited revenue of £23.2m and profit for the year (before members remuneration and profit share) of £8.0m.

Mulberry Group 238p £143m (MUL.L)

Launch of the The Mulberry Made to Last Manifesto, laying out an ambitious commitment to transform the business to a regenerative and circular model, encompassing the entire supply chain – from field to wardrobe – by 2030. The launch marks the Company’s 50th anniversary year as a British luxury brand. The Made to Last Manifesto focuses on six key actions for change. 1. Pioneer a local, transparent ‘farm to finished product’ supply chain model 2. Develop the world’s lowest carbon leather sourced from a network of organic and environmentally conscious farms 3. Achieve net zero carbon emissions by 2035 4. Continue to extend the life of Mulberry products through repair and restoration 5. Buy back, resell or repurpose any Mulberry bag 6. Extend Mulberry’s commitment to being a real Living Wage employer by working with its network of suppliers to achieve the same

Water Intelligence 830p £128.6m (WATR.L)

The multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water announced the acquisition of intellectual property assets from FastDitch, Inc., a US corporation. The IP Assets will be used to launch a new subsidiary of the Group’s core American Leak Detection business dedicated to providing water infrastructure solutions. The subsidiary will operate under the tradename Intelliditch. As set forth in a recent market communication, the Group is accelerating its growth plan given the anticipated increase in market demand for water infrastructure solutions stimulated by the Biden Administration’s American Jobs Plan. The IP will be used to manufacture proprietary lightweight HDPE lining solutions for earthen or concrete water channels enabling cost-effective reduction of water loss. The products are also adaptable for mitigating stormwater run-off problems. Given the multi-year drought in the American West, demand for effective irrigation solutions is acute. In addition, the Biden Administration’s water infrastructure initiatives target the problem of stormwater run-off.

Gfinity 4.9p £42.95m (GFIN.L)

The esports solutions provider today announces the appointment of Thomas (Tom) Preising to the new role of Chief Revenue and Transformation Officer. Tom joins the Gfinity team with immediate effect. Tom has over 33 years’ experience in senior operations roles for technology companies and has established a successful track record of implementing business transformation. He joins Gfinity from AMP Capital, a large infrastructure equity fund, where he led on innovation and efficiency for its portfolio companies. Previous to this, Tom spent 16 years at Apple Inc. overseeing key emerging markets including India, Latin America and the Middle-East, before being appointed as Global Business Operations Director. Tom also held operations and business roles at HP’s PC and printing business for 12 years in Europe and SE Asia.

Mkango Resources 20.75p £28.05m (MKA.L)

Mkango Resources Ltd. Announced the appointment of Jones Group International as its United States strategy advisor. Jones Group International, a Washington, US based advisory firm led by retired General James Jones, former National Security Advisor to President Barack Obama, will assist Mkango, advising on US critical materials security, energy security, market access and trade promotion. Alexander Lemon, President of Mkango stated: “The Biden administration has an ambitious agenda for a clean energy revolution which will begin with the recently announced $2tn Infrastructure bill aimed at clean energy initiatives and is expected to result in increased U.S. stockpiling of rare earths. The United States intends to achieve a carbon free power sector by 2035 and a net zero economy by 2050. “Reaching these goals will require significant quantities of rare earths. Mkango’s Songwe Hill Rare Earths project in Malawi, plans for a separation plant and interest in UK rare earth magnet recycler, HyProMag, means it is well placed to play a strategic role in supplying the US critical minerals supply chain as well as other key markets.”

Crimson Tide 3.45p £15.8m (TIDE)

The provider of mpro5 is pleased to announce has signed a three year agreement with the World Federation of Haemophilia (WFH). This follows the successful completion of the pilot phase announced by the Company on January 26, 2021. The agreement will initially enable up to 100 clinicians globally to use mpro5 to scan pharmaceuticals, verifying their expiry and authenticity, and allowing the WFH to gain real-time insights into product usage. The mpro5 platform will be integrated into WFH’s DPUMS system enabling real-time data captured from mpro5 to be available to all users around the world, replacing the ineffective existing paper-based data input.

Maestrano 16.5p £27.85m (MNO.L)

The Artificial Intelligence platform for transport corridor analytics announces the appointment of Mechanical Testing, Inc. (MTI) as a distributor for its Nextcore products in the USA. MTI is a New York-based provider of drone services for the construction industry. Their addition to the Nextcore distribution network means there are now 16 Nextcore distributors internationally. Nextcore provides high accuracy LiDAR (Light Direction and Ranging) from moving drone airframes, processing and delivering rich and usable data directly to surveyors, planners, constructors and maintainers.

i-nexus Global 11.25p £3.3m (INX.L)

The provider of cloud-based Strategy Execution software solutions designed for the Global 5000 notes the recent rise in its share price coupled with market speculation regarding potential new contract awards. The Company confirms that business activity has continued in the ordinary course since the announcement on 02 December 2020 of the Company’s audited results for the year ended 30 September 2020 and that there have been no new material contract awards since that date. The Company will release interim results for the six months ended 31 March 2021 in late May.

Focusrite 1115p £654m (TUNE.L)

The global music and audio products company supplying hardware and software used by professional and amateur musicians and the entertainment industry announced the launch of a new brand, Optimal Audio, operating in the commercial audio market. Commercial audio is professionally installed sound systems in a range of public enterprises such as bars, hotels, and retail. Optimal Audio offers a one-stop solution of control, amplification, and loudspeakers for small to medium-sized commercial installations, with a focus on supporting multi-zone venues, providing a streamlined product offering that delivers high quality sound. The products are easy to install and can be operated by anyone, not only by sound engineers.

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