Small Cap Feast

Small Cap Feast – 20th May 2022

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What’s Cooking in the IPO Kitchen?

Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due 30th May 2022.
EnSilica, intends to join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties – otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware making products smaller, faster, lower power, and/or more secure and can provide novel functionality, improve supply chain security and protect products from being copied). The Company has expertise in designing complex mixed signal ASICs, which combine digital and analogue functions onto a single chip. Raised £6m. Mkt Cap Approximately £37.6m. Due 24th May 2022.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022.

Breakfast Buffet

7digital 0.26p £7.2m (7DIG.L)

The specialist in B2B end-to-end digital music solutions, announced that its eMusic Live venture has once again partnered with AEG Presents to exclusively livestream this year’s Hangout Music Festival in the US. The festival will feature some of the world’s biggest artists including Maren Morris, Kane Brown, Leon Bridges, Illenium, Sublime with Rome, and many more. This latest collaboration follows eMusic Live’s successful livestream of AEG’s Cali Vibes, the world’s premiere reggae festival, in February this year, reflecting the deepening of the relationship. The eMusic Live platform is the first-of-its-kind platform for the live music industry to stage virtual concerts and create unique artist-to-fan experiences. Unlike other festival livestream platforms, eMusic Live creates an experience that matches the live event much more closely. Each artist receives their own unique event page that is fully branded and customised to each individual artist brand, merchandise and music. Hangout Music Festival is taking place in Alabama, US, this weekend. With a diverse line-up of over 50 artists spanning the pop, rock, hip-hop, electronic, country and more, genres, the live event has attracted globally renowned performers. In addition to the livestream and merchandise offering, eMusic Live’s platform will feature community elements such as an interactive scheduler, next event recommendations and a chat function for fans to share their experiences. AEG Presents is the world’s largest live entertainment company and an authority in live music.

Audioboom Group 1,472.5p £238.9m (BOOM.L)

The leading global podcast company, announced that, according to Triton Digital’s April 2022 Podcast Reports, it is now ranked as the fourth largest US podcast publisher based on both the number of average weekly downloads and average weekly users. Additionally, Audioboom is now the second largest publisher in New Zealand based on both the number of monthly listeners and monthly downloads. In the US, Audioboom averaged 21.6m downloads per week during April and moved into fourth position. In New Zealand, Audioboom moved into second position. In the Triton Digital April reports, Audioboom ranked third in Australia and fourth in Canada, highlighting the global scale the Company has developed. Audioboom has continued to outperform its competitors over the last twelve months in the Triton Digital Podcast Reports. Triton’s US report highlights Audioboom’s 80% growth in weekly downloads between April 2021 and April 2022 – during the same period the top 10 publishers, excluding Audioboom, grew at 30%.

DeepMatter 0.12p £4.4m (DMTR.L)

The digital chemistry data and software company, has renewed its long-term commercial relationship with Springer Nature, a leading global research publisher for a further three years. The Agreement is expected to generate revenues of at least EUR206k during the term. DeepMatter licences proprietary algorithms and supports Springer Nature in handling proprietary data to accelerate and enhance discovery for its academic and industry customers. Mark Warne, CEO of DeepMatter, commented “Springer Nature is committed to supporting researchers in sharing research data and we are delighted to be working with them to provide products and services making sharing research data faster, easier and more impactful”.

EagleEye Solutions 470p £112.7m (EYE.L)

The SaaS technology company that creates digital connections enabling personalised, real-time marketing, announced a continued positive trading performance since the release of Interim Results in March 2022. A notable development in the period is the go live of the national US grocer, announced in January 2022, secured alongside partner, Neptune Retail Solutions. As a result, the Board now anticipates revenues and adjusted EBITDA for the year ending 30 June 2022 will be ahead of current market expectations by approximately 7% and 10% respectively. Eagle Eye has benefitted in the year from significant new customer wins across multiple geographies, the accelerated ability to take these customers live, deepening with existing customers and the impact of lifting COVID restrictions. The Group continues to benefit from the strength of its SaaS model, having reported Annual Recurring Revenue of £18.9m, Net Revenue Retention of 130% and churn of 0.04% at the Interim Results, and is confident it will report continued positive progress for FY22. The Group will provide a further update on trading for FY22 in July 2022, ahead of the release of audited Final Results in September 2022. Market consensus for FY22 is Group revenue of £28.1m and adjusted EBITDA of £5.2m.

In the Style Group 91p £47.8m (ITS.L)

The digital womenswear fashion brand, announced a new partnership with Dame Deborah James and The Bowelbabe Fund. Having been in development for several months, the collaboration has now launched with the sale of the bespoke Bowelbabe ‘Rebellious Hope’ t-shirt. 100% of profits from the t-shirt will be donated directly to The Bowelbabe Fund, which raises money for Cancer Research UK. Following the launch of the charity t-shirt, the full ITS X Dame Deborah James clothing collection will be unveiled. Each piece in the collection has been designed collaboratively with Dame Deborah and perfectly encapsulates the British summertime and activities that Dame Deborah loves. The Bowelbabe Fund was founded by Dame Deborah and her family earlier this month to help fund clinical trials and research into new treatments for cancer patients, as well as raising awareness of bowel cancer. In less than one week since its foundation, it has already surpassed £6m in donations. This collaboration is the latest fundraising by In The Style. The brand has raised more than £1m for charities including the Samaritans, Family Action and Age UK through sale of special charity collections since the company was founded in 2013.

Kibo Energy* SUSPENDED (KIBO.L)

The renewable energy focused development company, announces the appointment of Mr. Cobus van der Merwe as Group Chief Financial Officer with effect from the 1st June 2022. Cobus has over 10 years’ experience in managerial and executive roles in the investment management and the energy, utilities and resources sectors. Most recently, Cobus held a Senior Management position at PricewaterhouseCoopers, servicing clients based in the United Kingdom, Ireland and Africa. Prior to this, he was Partner and Chair of the Investment Committee at PSG Wealth, where he managed bespoke investment portfolios for high net-worth individuals. It was during this time that he gained extensive experience in capital raising and facilitating deal making. Cobus is a registered Chartered Accountant (South Africa). Furthermore, the Company confirms that the current Group CFO, Mr. Pieter Krügel, has now been appointed as Chief Executive Officer of Mast Energy Developments, from 1st of June 2022. Louis Coetzee, CEO of Kibo Energy, comments: “On behalf of the Company, we are delighted to welcome Cobus to the team. His strong background in investment management for the energy and resource industries will play an integral role in delivering the Group’s growth strategy. I would also like to thank Pieter for his significant contribution to the Group as CFO over the last 4 years and look forward to continue working with him as part of the Kibo group in his new capacity as CEO of MED.”

Next Fifteen Communications 1,275p £1,249m (NFC.L)

The Board of Next Fifteen Communications Group plc and the M&C Saatchi (SAA.L) Independent Directors announced that they have reached agreement on the terms of a recommended cash and share acquisition by which the entire issued and to be issued ordinary share capital of M&C Saatchi plc will be acquired by Next Fifteen, to be effected by means of a court sanctioned scheme of arrangement between M&C Saatchi and the M&C Saatchi Shareholders under Part 26 of the Companies Act 2006. Under the terms of the Acquisition, holders of M&C Saatchi Shares will be entitled to receive for each M&C Saatchi Share: 0.1637 of a New Next Fifteen Share and 40 pence in cash. The Acquisition Price represents a premium of approximately: 49.8% to the Closing Price of 165.0 pence per M&C Saatchi Share on the Last Practicable Date.

Restore 440p £601.4m (RST.L)

The UK’s leading provider of digital and information management and secure lifecycle services, provides a trading update ahead of its Annual General Meeting to be held later today. Trading for the four months to 30th April was in line with Board’s expectation. Strong momentum seen in H2 2021 continued throughout the period: Revenue c.37% ahead of the comparative period driven by organic growth (+14%), acquisition effects (+18%) and COVID-19 repair (+5%). Run rate revenue expanded from £255m reported in January 2022 to more than £265m at end of the period. Digital and Information Management division experienced high organic growth rates through storage expansion and strong demand for integrated services with Restore Digital winning and executing on major contract wins in the period, including Scottish Census. Secure Lifecycle Services showed continued revenue momentum with growing underlying demand in Restore Technology, sustained project delivery across UK from Harrow Green and growing revenues from Restore Datashred as office activity increases and from strong paper pricing. Cost inflation greater than anticipated but largely mitigated to date through productivity and pricing. Acquisition strategy progressed in the period with two transactions completed and c.£10m of capital deployed to acquire Ultratec, expanding the capability of Restore Technology, together with a small bolt-on in Records Management. The pipeline of strategic deals remains very strong across the Group with a number of potential acquisitions currently in exclusivity. The Group’s interim results will be announced on the 28th July 2022.

Spectra Systems 145p £65.6m (SPSY.L)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies and gaming security software , announces that Brian McLain, Chief Financial Officer and Company Treasurer, has tendered his notice to resign from the Company on 3 June 2022. Mr. McLain is departing to pursue other business opportunities. Dr. Nabil Lawandy, CEO of Spectra Systems, stated: “Brian has been an invaluable resource to the Company and to me and on behalf of the Board I thank him for all of his contribution to Spectra and wish him every success in future. We are confident we will attract highly qualified candidates and be successful in appointing a new Chief Financial Officer in the very near term. A search for his successor is underway and we will make an appropriate announcement when that process concludes.”

Yellow Cake 383.5p £702m (YCA.L)

Yellow Cake, a specialist company operating in the uranium sector holding physical uranium for the long term, has taken delivery of 2,022,846 lb of U3O8 from Kazatomprom at the Cameco storage facility in Canada, following the exercise of the Company’s Buyback Option. As previously announced, the Company exercised its Buyback Option with Kazatomprom in terms of which it acquired 2,022,846 lb of U3O8 from Kazatomprom at a price of US$43.25/lb. The Company took delivery of this material at the Cameco storage facility in Canada on 19 May 2022. Kazatomprom delivered the U3O8 in accordance with the agreed schedule. Yellow Cake currently holds 17,855 , 601 lb of U3O8 in storage in Canada and France. In addition, the Company has entered into a previously announced agreement to purchase 950,000 lb of U3O8 from Kazatomprom to be delivered to the Company at the Cameco storage facility in Canada by 30 June 2022. On completion of this transaction, Yellow Cake will hold 18,805,601 lb of U3O8 in storage in Canada and France. Yellow Cake’s estimated proforma net asset value on 19 May 2022 was £3.96 per share or US$908.0m subject to certain assumptions.

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