Small Cap Feast
Small Cap Feast – 22 February 2021
Dish of the Day:
Off the Menu:
Imimobile has left AIM following a takeover by Cisco
Imimobile has left AIM following a takeover by Cisco
What’s Cooking in the IPO Kitchen?
AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.
Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.
Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring. Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”
NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.
Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions. In FY20 the Group delivered pro forma revenue of £52.3m, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone
Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3m pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021.
Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021.
Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5 million. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission.
Virgin Wines UK Plc recently set out their plans for an AIM IPO. Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates. Deal details TBC but media reports suggest a £100m valuation. Targeting 2nd March Admission
Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.
Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.
According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
OnTheMarket 110p £76.7m (OTMP.L)
The majority agent-owned company which operates the OnTheMarket.com property portal announced an update on trading for the year to 31 January 2021. Trading ahead of expectations . The Company now expects for the year to 31 January 2021:· revenues to be approximately £23m (FY20: £18.8m); and adjusted operating profit for the year to be approximately £2.3m (FY20: loss of £9.2m).
While the Company continues to closely monitor the impact of COVID-19, it expects marketing expenditure to return to more usual pre-COVID levels in the year to 31 January 2022. With a strong balance sheet and anticipated continued growth in the revenue-generating customer base, the Company is also planning to increase investment in new products and services and to invest further in internal website development resources. This will position OnTheMarket to take advantage of the significant growth opportunities available, providing customers with increasing value across a broader suite of products and services and continuing to strengthen consumer engagement, benefiting the Group in the medium and long term.
Maestrano 15.25p £23.4m (MNO.L)
The Artificial Intelligence platform for transport corridor analytics, announces the setting up of an international Advisory Board for its Cordel automated infrastructure monitoring subsidiary. Maestrano has secured senior railway executives for the Advisory Board from its key markets of Australia, the UK and USA. All have considerable experience in the monitoring of railway assets through innovative technology solutions and wide ranging personal networks in the rail industry.
The Advisory Board will provide Cordel with advice on business strategy, high-level insights on current and future trends in the company’s key markets and help with identifying and delivering potential opportunities in these markets. It will also act as a sounding board for management. The Advisory Board will be chaired by Nick McInnes, Maestrano non-executive Director, and will comprise the following further members:
Robert Mason, who has considerable experience running railway operations from his time as CEO of Railcorp and NSW Trains in Australia and as Director of London Underground in the UK; Stirling Kimkeran, former CEO and Co-Founder of Omnicom Engineering, who developed a range of technology solutions for improving asset management in railways and, following the acquisition of the business by Balfour Beatty in 2016, remained Head of Omnicom Balfour Beatty until 2019; and Mike Mischke, an independent consulting engineer focused on advancing new systems technology in the railway industry.
Fonix Mobile 161p £161m (FNX.L)
The UK focused mobile payments and messaging company announced its interim results for the six months to 31 December 2020, which show continued strong revenue and profit growth across all business segments. Revenue of £24.6m up by 25% (H1 2019: £19.7m). Gross profit of £5.8m up by 22% (H1 2019: £4.8m). Adjusted EBITDA of £4.6m up by 28% (H1 2019: £3.6m). Profit after tax of £2.7m (H1 2019: £2.8m). Adjusted basic and diluted earnings per share for the period of 3.6p (H1 2019: 2.9p). Underlying operating cash inflow for the period of £3.6m (H1 2019: £3.1m). Underlying cash and cash equivalents at the period end of £3.6m (30 June 2020: £2.3m). Maiden interim dividend of 1.7p per share, amounting to £1.7m, to be paid in March 2021.
Fonix has continued to attract new customers during the period across the media, charity, gaming and digital services sectors and retains a robust pipeline of prospects, with over 20 customers added and no customers lost in the period. A highlight of the period was the successful BBC Children in Need campaign in November which raised £13.9m in donations using their platform. The event was also the first in the UK where a £40 single donation was permitted by the mobile network operators. Fonix expects continued growth through 2021 from both existing clients and a strong pipeline of new business opportunities.
NetScientific 57.5p £8.6m (NSCI.L)
The life sciences and sustainability technology investment and commercialisation Group, announces that its portfolio company ProAxsis Limited has announced that it has entered into a global licensing agreement with the University of Geneva and the University Hospital of Geneva, to develop new assays against fractures and other metabolic bone diseases.
Researchers at the University have developed a highly novel assay for a Cathepsin K-dependent periostin cleavage product, as a biomarker of bone fragility related to disorders such as osteoporosis. The technology is currently the subject of patent applications in Europe and the US. As a result of this agreement, ProAxsis will complete the technical validation of the assay, and seek to commercialise the assay in key territories before the end of 2021.
CentralNic Group 95.25p £222.6m (CNIC.L)
The global internet platform that derives revenue from the subscription sales of domain names and web services, announces that it has entered into a binding agreement to acquire Wando Internet Solutions GmbH for an initial consideration of EUR 5.4m (c.USD 6.5m). The transaction is expected to close in the course of today.
Based in Berlin, Germany, Wando is a technology company operating in the fields of Social marketing, Display advertising and SEM Advertising. In FY2020, Wando generated unaudited revenue of EUR 4.9m (c. USD 5.6m) and unaudited EBITDA of EUR 1.2m (c. USD 1.4m). CentralNic’s distribution network is an important sales channel for Wando, representing more than half its revenue. Through a closer vertical integration, CentralNic expects to grow Wando’s sales.
Chariot Oil & Gas 7.67p £29.8m (CHAR.L)
The Africa focused transition energy company has signed a Collaboration Agreement with Subsea Integration Alliance to work together to enable the front-end design, engineering, procurement, construction, installation and operation of the Anchois Gas Development project in Morocco. Subsea Integration Alliance is a nonincorporated strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production, and processing systems division of Schlumberger. Chariot and Subsea Integration Alliance will adopt a “One-team”, integrated and collaborative approach to safely fast-track first gas to maximise the return on investment. The scope of the Agreement covers:
· Front-end engineering support and engineering design work.
· Engineering, procurement, construction, installation, pre-commissioning and commissioning work.
· Operations and maintenance of the facilities.
· Commitment to ESG and the importance of contributing to social development through the creation of direct and indirect jobs in Morocco.
Reabold Resources 0.59p £49.9m (RBD.L)
The investor in upstream oil and gas projects has entered into a conditional convertible loan instrument with Corallian Energy Limited pursuant to which Reabold will advance £1m to Corallian.
Pursuant to the existing shareholders agreement, to which Reabold is a party, the Convertible Loan is conditional on Corallian receiving the consent of 75 per cent. or more of its shareholders. Reabold has an existing 36.9 per cent. shareholding in Corallian, which, for the avoidance of doubt, can count towards the 75 per cent. threshold. Corallian intends to utilise the proceeds of the Convertible Loan to support workstreams related to the submission of a draft Field Development Plan for the Victory gas field, which Corallian is aiming to do before the end of 2021, and for general working capital purposes.
Clear Leisure 2.3p £17.8m (CLP.L)
£1m placing at 1p to an individual investor, Mr John Story. The net proceeds of the Placing will allow Clear Leisure to accelerate and widen the development of its crypto currency plans including: more quickly entering into cloud mining contracts with existing mining pool operators; financing the setup of a bitcoin mining operation in Italy; sourcing economic renewable wind farm and hydroelectric energy; in addition to the proposed operation in Italy, build one or more replicas of the Company’s existing bitcoin cryptocurrency infrastructure currently located in Serbia; and financing the developing of innovative hardware solutions for crypto currency mining and making a direct move in the segment of new crypto validators.
DXS International* 7.75p £3.7m (AQSE:DXSP)
The digital clinical decision support Company announced that David Immelman and Steven Bauer will provide a live presentation relating to an overview of DXS International with emphasis on ExpertCare, the new Chronic Disease Management solution which currently focuses on hypertension, via the Investor Meet Company platform on 5th March 2021 at 10:00am. The Company will also give an update on its Point-of-Care, CompleteCare and MyVytalCare products.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet the Company via:
Cornish Metals 10.25p £14.4m (CUSN.L)
CUSN announced the closing of the Company’s previously announced agreement in principle with Osisko Gold Royalties whereby Osisko has converted its C$7.17m senior secured convertible note dated January 26, 2018 into:
(i) a 1.5% Net Smelter Return ) royalty with respect to the South Crofty tin project, and;
(ii) a 0.5% NSR royalty on other mineral rights held by the Company in Cornwall (see news releases dated January 29, 2018 and January 18, 2021 ).
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