Small Cap Feast

Small Cap Feast – 21 December 2021

Dish of the Day:

All Things Considered joins AQSE Growth Market.

M7 Regional E-Warehouse REIT joins the Wholesale Segment of the IPSX.

Roquefort Investments joins the Main Market following a Reverse Takeover.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Hydrogen Utopia International PLC (HUI), to join Access Segment of the Aquis Stock Exchange. The company aims to become one of the leading new European companies specialising in turning Non-Recyclable Mixed Waste Plastic into carbon-free fuels, new materials or distributed renewable heat. HUI’s activities will range across the full value chain, from the production of energy from Non-Recyclable Mixed Waste Plastic for local communities, to the sale of its products (Syngas, hydrogen, electricity and heat) to end customers. HUI’s initial strategic focus is to work closely with Powerhouse Energy Group PLC to create a project pipeline of HUI Facilities. Due 4 Jan 22. Mkt Cap TBC.
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Dec.
Aptamer Group to join AIM. Aptamer Group operates within the life sciences sector and is a leader in the provision of aptamer discovery and selection services and in developing aptamer-based reagents. Aptamers are synthetic nucleic acid-based biological molecules, selected based on their specific characteristics to bind to a ‘target’ of interest. Targets can include proteins, cells, viruses or small molecules (e.g. therapeutic drug molecules). Anticipated Mkt Cap £80.7m. Capital to be raised £10.8m. Due 22 Dec.
CT Automotive Group to join AIM. CT Automotive is a UK-headquartered company that designs, develops and supplies interior components for the global automotive industry. Customers include a number of original equipment manufacturers (OEMs) and Tier One suppliers to OEMs. Mkt Cap on Admission £74.9m. Capital to be raised £33.6m. Due 23 Dec.
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission date Late Dec.
Libertine to join AIM. Libertine has developed a technology solution for powertrain OEMs, enabling efficient and clean power generation from renewable fuels. Libertine’s linear electrical machines, controls and tools together form a development platform (intelliGENTM) which the Group provides to OEM customers for their product development programmes. The company also provides engineering services and prototype hardware to support OEM customer evaluation of its technology, and incorporation of this technology into customer-led Linear Generator development programmes. Mkt Cap on admission £27.6m. Capital to be raised £9m. Expected admission date 23 Dec.
Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer TBC. Due 27 Dec.
Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately £ 1.7m before expenses. First dealings in the shares are expected to commence in January 2022. The flotation is expected to value Lift at approximately £2.7m.
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 mid January 2022.
LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market 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.
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. Due Jan 2022.
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 early Q1 2022.
ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM. 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. £6m to be raised on Admission. Anticipated Mkt Cap £26m. Due 30 Dec.
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. Due 24th Jan 2022.
Facilities by ADF to join AIM. Facilities by ADF plc is a provider of premium serviced production facilities to the UK film and High-end Television industry. The Group hires out its facilities to productions throughout the UK and Europe, providing its services to some of the world’s largest traditional and on-demand content production companies. The Group’s business has grown to a business servicing productions with its fleet of over 500 trailers and vehicles and providing its services to the largest global production companies including Netflix, Sky, BBC, ITV, Disney, HBO and Apple amongst others and has an estimated 35% market share of providing facilities to the UK HETV market. Anticipated Mkt Cap £37.75m. Capital to be raised £15m. Due 5 Jan 22.

Breakfast Buffet

Crossword Cybersecurity* 33p £24.7m (CCS.L)

The technology commercialisation company focused on cyber security and risk management today announces that it has signed heads of terms to acquire a cyber threat company which, on completion, would bring its portfolio to five cyber security offerings alongside its cyber security consulting business. Crossword will now focus its full attention on marketing and selling its product portfolio and consulting services to scale up the business. Crossword has agreed, subject to contract, to pay a total consideration of £1.529m for the cyber threat company, in a mixture of cash and shares, some upfront and some deferred. This price represents an annual recurring revenue multiple of 5.25. The acquisition brings additional SaaS products which provide clients with high value cyber security insight at an affordable cost. It will bring circa twenty new clients to Crossword, across various sectors in multiple jurisdictions. The target company is reaching breakeven, with 90% recurring revenue. Cross sell opportunities will be explored with the acquisition, alongside operating synergies. A further announcement will be released once the acquisition agreement has been signed which is expected early 2022. This pending acquisition will be Crossword’s third acquisition in less than 12 months and achieves the stated aim of having a portfolio of five products by the end of 2022. On the back of a successful 2021, with revenue growth achieved expected to be over 40%, at the lower end of market expectations, Crossword is confident that 2022 will see revenue growth accelerate.

Eurasia Mining 21.25p £593.5m (EUA.L)

The palladium, platinum, rhodium, iridium and gold producing company, announces that it has appointed Mr. Kotaro Kosaka as a non-executive Director of the Company. Mr Kosaka holds a Master’s Degree from Stanford University (USA) as well as a BA Degree from Keio University (Japan). Following 13 years in management roles with Mitsubishi Corporation, Kotaro has focused on his chairman role of Kono Foundation, originally founded by Mr. Junzo Kosaka, also the founder of Shin-Etsu (41 bln JPY market capitalisation and leading semiconductor manufacturer listed on the Tokyo Stock Exchange).

Firering Strategic Minerals 13.2p £11.5m (FRG.L)

An exploration company focusing on critical minerals announces that SEMS Exploration has completed the first regional detailed geological map of the Company’s flagship Atex Lithium-Tantalum Project in Côte d’Ivoire (Atex). The Company further announces that, as of 16 December 2021, it has completed 240 auger holes as part of its Phase 1 exploration programme. The Atex licence area was mapped systematically by E-W traverses spaced at 1 km, recording more than 60 outcrops of potential interest. Two prospective areas to the north and south of Spodumene Hill were mapped at a line spacing of 500 m. The aplites found during the mapping programme lie up to 3-4 km to the NNE and SSW along strike of Spodumene Hill and could indicate extensions of the spodumene-bearing pegmatite/aplite zone currently being tested by auger drilling. The northeast corner of the Atex licence shows some 7 km of faulted contact between Birimian mafic volcanic and sedimentary rocks, making the area potentially prospective for orogenic Au (gold) mineralisation; 240 auger holes have been completed for a total of 1,328 metres with an average hole depth of 5.5 m; 1,283 auger drill and soil samples have been sent to Intertek Laboratories in Yamoussoukro for sample preparation and will be assayed using a 4-acid digest. Board believes Atex Lithium-Tantalum Project in northern Côte d’Ivoire has the potential to become Africa’s next significant lithium pegmatite and coltan resource.

Immedia Group 13p £4.5m (IME.L)

A supplier of multi-media content and digital solutions for leading brands and global businesses announces Trading Update and Contract Extension. September and October 2021 have been two of the best trading months in the Company’s history, helped hugely by the creative content and AV installation work done for participants at COP26 in Glasgow. Whilst much of this is one-off project work, the Company have seen a renewal in demand across all sectors – audio, creative, video production and installation. Company has renewed its contract with IKEA Limited for a further three years. By the end of the contract term the Company will have served IKEA for 20 years. The Company provides music and audio production and distribution services to IKEA stores in the United Kingdom and Republic of Ireland. Immedia Group also provides an update on the Sprift Loan. On 15 July 2021 the Company entered into a cost recovery agreement with Sprift Technologies Limited. Sprift Technologies generated revenue growth of circa 100% in the eight months ended 30 September 2021 compared to the equivalent period last year. In the interest of facilitating further growth of the Borrower, the Company has entered a revised facility agreement with Sprift and Mark Horrocks that increases the facility size from £1.05m to £2.55m, defines equity conversion terms in the event of defined liquidity events and sets out board participation rights. No further funding will be provided by the Company under this agreement.

Mediazest* 0.1p £1.3m (MDZ.L)

The audio-visual solutions provider, provides an update on current trading and performance during the second half of the financial year ended 30 September 2021. As expected and previously noted, the second half of the year showed notable improvement in the Company’s financial performance as demand for new projects increased in conjunction with the lifting of Covid related restrictions. As a consequence, cash in hand at the period end also showed improvement upon the prior year and the half year interim results. The Group’s year end audit is now underway and this will continue throughout January 2022. The Group expects to announce its annual financial results shortly thereafter. The Group’s operating subsidiary, MediaZest International Limited, continues to experience strong demand across key sectors including Retail, Automotive and Corporate Office. The long-term strategic focus on large scale roll out opportunities that have the potential to run for several years, and on recurring revenue streams across multi-year deals continues to deliver improving results. The Directors believe the Group is well set heading into 2022, although the Board remains mindful of the risk of potential future disruption in light of the continually evolving Covid pandemic. Key project highlights in recent months include a new Innovation Centre for leading supply chain and logistics provider Wincanton, the new Rockar Jaguar Land Rover dealership in London’s Canary Wharf coupled with several new stores for each of long-term clients Pets at Home, HMV, Post Office and Lululemon. The Board believes the anticipated improvement in financial results and the foundations in place with several existing long-term clients provide the Group with a platform from which to grow both organically and by acquisition in 2022.

NetScientific 104p £21.8m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group, announces that on 20 December 2021, it completed a convertible loan investment and share acquisition totalling approximately £1.3m in Q-Bot Limited. Q-Bot is a London-based award-winning robotics and AI company that has pioneered cutting edge technology and digital solutions for the inspection, maintenance, insulation and upgrade of buildings and homes. In the year to 31 March 2021, Q-Bot generated a loss before taxation of £1.36m on sales of £1.03m, with net assets of £3.7m (based on unaudited management accounts). NetScientific’s corporate finance and venture capital division EMV Capital Ltd led and advised the £2.8m transaction, featuring EMVC advising on a first close of a £1.5m Convertible Loan Facility (of which NetScientific is responsible for £0.54m) with a committed first close of £0.58m, of which £0.3m was provided by NetScientific out of its £0.54m undertaking; and EMVC advising on the purchase from early Q-Bot investors and a departing founder of shares in Q-Bot for a consideration of £1.3m, of which c.£1.0m was provided by NetScientific. The Board considers that these transactions will result in a broadening of the Group’s portfolio, via its hands-on investment approach, and deepening its participation in a proven pioneering robotics and AI business with rapid scale-up potential.

Open Orphan 22.5p £141.7m (ORPH.L)

A rapidly growing specialist contract 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 £5m influenza human challenge study contract with a biotech company developing an antiviral drug for protection against respiratory viral infections. The study, which is expected to commence in H2 2022, will test and assess the efficacy of a single dosing regimen of the client’s antiviral drug, with healthy adult volunteers, using the hVIVO Influenza human challenge study model. Conducted at hVIVO’s state-of-the-art facilities in London, Open Orphan expects the majority of revenues to be recognised in 2022.

Rambler Metals & Mining 31.5p £46.1m (RMM.L)

A copper and gold producer, explorer and developer announces an update to copper contained in its Mineral Resources Estimate and operations at the Ming Copper-Gold Mine, located in Eastern Canada. The updated resource estimate, depleted by production through December 8, 2021, includes 23.66m tonnes of Measured and Indicated Resources grading 1.81% copper, containing 944m pounds (428,113 tonnes) of copper. This represents a 5% increase in contained copper relative to the previous resource estimate declared in May 2021, after mining depletion. The Inferred Mineral Resources include 6.395m tonnes grading 1.70% copper containing 239m pounds of copper at a 1% copper cut-off. Gold and silver assays from 2021 are unavailable as of December 20, 2021, due to an industry-wide shortage of third party assay lab capacity versus samples submitted for precious metal assay from mining and exploration companies. Therefore, this resource update is for copper only. Rambler will update the resource (and reserves) again when precious metal assays are received. All zones remain open for extension with further drilling.

Silver Bullet Data 215p £28.2m (SBDS.L)

A provider of digital transformation services and products, announces that it has entered into a further significant agency contract in respect of its ‘4D’ product with Nunn Media Pty Ltd. Nunn Media, is the largest independent media and marketing agency in Australia, managing in excess of AUS$300m of media billings annually and servicing more than 200 clients. 4D will now be the preferred partner for Nunn Media in relation to contextual solutions, supporting its clients’ migration from the utilisation of third-party cookies to first-party-driven data contextual insights and targeting. The Nunn Media contract enables the 4D product to be utilised across Nunn Media’s client base and is a further step in the roll out of 4D across multiple geographies and languages, laying the foundation for further growth in 2022 as the use of third-party cookies continues to diminish within the advertising ecosystem.

Xtract Resources 4.65p £40.6m (XTR.L)

The Company advises that independent laboratory assays have been received for drill hole BRDD-021-015 on the Phase 2 diamond drilling programme at the Bushranger copper-gold exploration project. BRDD-21-015 has returned intervals of copper and gold mineralisation on the main western zone of the Racecourse porphyry, which is inclusive of two main zones of copper mineralisation. Assay results have graded up to intervals of 10m at 0.63% Cu from 616m depth and 8m at 0.34 g/t Au from 462m depth; the two main intervals returning 28m at 0.32% CuEq from a downhole depth of 482m, and 78m at 0.27% CuEq from a downhole depth of 560m.The hole was drilled at an inclination -55 towards the east, above drill holes BRDD-21-002 & BRDD-21-003 from the Phase 1 drilling and designed to test the extension of mineralisation in these holes to shallower depths.

Head Chef:

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

*A corporate client of Hybridan LLP

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