Small Cap Feast

Small Cap Feast – 22 November 2021

Dish of the Day:

Eneraqua Technologies (ETP.L) has joined AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Mkt Cap on Admission: £92.0m.

 

Off the Menu:

Salt Lake Potash has left AIM

 

What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

 

4GLOBAL to join AIM, a London based software, data and services sport and health company. Offer TBA. Due early Dec.

Skillcast to join AIM. Skillcast provides software and content subscriptions and related professional services to enable companies to implement their staff compliance and training obligations.  Offer TBA. Due early Dec.

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 early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market of the London Stock Exchange 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.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa.  The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021.  Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website).  The Company does not intend to raise any capital prior to or concurrent with admission to AIM.  The market capitalisation on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

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.

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 December.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. 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.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

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. Q4 2021.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the 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. Due Mid Nov. Offer TBC.

 

Breakfast Buffet

Aura Energy 14.5p £55.7m (AURA.L)

Aura Energy’s 2021 AGM is set to allow for a strategic transformational board restructure to advance Aura from a uranium explorer to a uranium producer. Mining M&A heavyweight Mr. Phil Mitchell to be elected at the AGM as Aura’s Independent Non-Executive Chairman, with significant experience having held senior roles with global mining companies Rio Tinto, Anglo American and heading acquisitions for billionaire Robert Friedland’s company, High Power Exploration. Mr. Warren Mundine to be elected at the AGM as Independent Non-Executive Director. Mr Mundine is one of Australia’s prominent independent thinkers and a thought leader in the mining sector and nuclear power space as former director of the Australian Uranium Association. Mr. Bryan Dixon to be elected at the AGM as Independent Non-Executive Director, contributing significant experience as a Chartered Accountant, building junior exploration companies into producers, with over 20 years in the mining sector.  With Aura now preparing for production at the low capex, low operating cost Tiris Uranium Project, this new team will lead the development path to production and capitalise on the high growth demand for nuclear power and carbon free energy. Mr. Peter Reeve to transition from MD & CEO of Aura to CEO of the Company’s 100% owned gold subsidiary, Archaean Greenstone Gold Pty Ltd. Mr Reeve will drive a proposed spin-out and listing process of Archaean on the ASX in 2022 with a planned in-species distribution to Aura shareholders (subject to future shareholder and ASX approval).

 

Everyman Media 148.5p £135.4m (EMAN.L)

Everyman Media Group PLC, the independent, premium cinema group, announced a trading update for the financial year ending 30 December 2021. Admissions have been ahead of expectations since publishing its interim results in September 2021. Therefore, Group revenues and EBITDA for the financial year ending 30 December 2021 will exceed current market expectations. On the basis of no further COVID-19 restrictions in 2021, the Group expects to report turnover of not less than £46.3m and EBITDA of not less than £7.0m. Looking beyond the current financial year, early indications suggest the appetite for cinema remains strong and we are optimistic for the outlook of the sector.

 

Instem 815p £180.9m (INS.L)

The provider of IT solutions to the global life sciences market announces the release of the latest edition of its Leadscope Model Applier computational toxicology software solution. This release includes a comprehensive package of new and updated models to meet the growing market demand for in silico solutions and is expected to create the following opportunities for Instem. New routes to market, increased revenue streams, strengthened in silico offering, and increased regulatory-backed solutions. The core software capabilities have been enhanced significantly, enabling clients to deploy a unique, highly-differentiated solution developed with considerable regulatory and industry collaboration. The new software brings compelling benefits; reducing the time to bring products to market, the risk of costly later stage R&D failure and use of animal experimentation.

 

Jersey Oil and Gas 149.5p £48.7m (JOG.L)

The independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea announced certain changes to the composition of the Company’s board of directors, a senior management appointment and an update on its Greater Buchan Area (GBA) farm-out process.  Les Thomas, formerly Non-Executive Director, has assumed the role of Non-Executive Chairman. Graham Forbes, formerly Chief Financial Officer at Ithaca Energy Inc from 2010 to 2020, appointed as CFO. Richard Smith, previously Corporate Development Director at Ithaca Energy from 2010 to 2020, has joined the senior management team as Chief Commercial Officer. JOG remains actively engaged with multiple counterparties, including major infrastructure funders with respect to electrification, with regards to its GBA farm-out process – macro environment has markedly improved since initial industry engagement.

 

Pioneer Holdings 101.5p £52.225m (AQSE:PNER)

Pioneer Media Holdings Inc.  has submitted an initial application to list its common shares (on the NEO Exchange a tier one Canadian stock exchange based in Toronto). Pioneer believes that the graduation from CSE to the NEO Exchange, will enable the Company’s Common Shares to be traded on a senior exchange in Canada, providing exposure to an increased number of retail and institutional investors. The Company anticipates that after listing on the NEO Exchange its Common Shares will trade under the symbol “JPEG”. In connection with the migration the Company will arrange for the delisting of its Common Shares from the Canadian Securities Exchange. Pioneer actively invests in a diversified portfolio of early-stage to mid-level companies in the Metaverse including NFT gaming, eSport, and mobile gaming.

 

President Energy 2.3p £47.1m (PPC.L)

The energy company with a diverse portfolio of energy assets provides an update on its oil and gas operations in Argentina and Louisiana. Workover of two gas wells in Rio Negro, Argentina completed with aggregate current incremental production 40,000 m3/d of gas (230boepd). New oil well in Salta drilling ahead at 2,500 metres depth with target depth of 3,300 metres expected to be reached in next seven days. Workover of Triche well in Louisiana continuing.  Paraguay farm out still expected to complete at or around end November.

 

SEED Innovations 6.35p £13.5m (SEED.L)

The company investing in fast growing and industry leading businesses with a focus on the medical cannabis, health and wellness space has invested a further EUR450,000 in Fralis LLC, trading as Leap Gaming, an Israel based B2B developer of high-end 3D gaming applications whose games are offered by leading online and retail gaming operators worldwide.  The Investment, funded from existing Company cash resources, is by way of an extension to the existing EUR1m 1% Convertible Loan Note as part of a funding round by Leap to raise up to a further EUR1.2m. The Investment takes the total amount invested by SEED in Leap convertible loan notes to EUR741,641 (c.£630,000 based on approximate GBP cost prices on the investment dates).  The Company also holds 47.06% of the total equity of Leap (on an un-diluted basis).

 

Tower Resources 0.41p £8.6m (TRP.L)

The  oil and gas company with its focus on Africa updated regarding its farm-out to Beluga Energy Limited  of a 49% non-operating working interest in its Thali Production Sharing Contract (PS) in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon S.A (TRCS). The Cameroon Petroleum Code provides that approval of a transaction of this type should be provided by the Minister of Mines, Industry and Technological Development (MINMIDT) within 60 days of 21st September 2021, when it was formally requested, which means by Saturday 20th November 2021. To date, Tower has received no objection to the transaction, nor any further request for information from MINMIDT, and whilst Tower believes that the conditions for the approval have been met, Tower is yet to receive a formal letter (a “decret”) confirming MINMIDT’s approval of the transaction. While the Company waits for a formal decret, Beluga continues to work on its financing process, and the Company continues to work with the intended rig provider and service companies on the schedule and terms for the NJOM-3 well.

 

Yooma Wellness 51p £11.76m (AQSE:YOOM)

The global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands,  announced that ASDA, one of Britain’s leading retailers, is now stocking 17 of Vitality CBD Limited’s well-being and active CBD products in ASDA’s vitamin aisles and in-store pharmacies, making Vitality CBD the most extensive CBD product range in ASDA. ASDA’s vitamin aisles will be stocking Vitality CBD’s range of 600mg-2400mg Well-being CBD Drops in multiple flavour options and easy-to-dose CBD Gummy Bears, starting at £15 RRP. A further selection of their naturally flavoured Well-being CBD drops up to strengths of 4800mg as well as their CBD Muscle Balm will be available in ASDA’s in-store pharmacies. For those new to CBD, trained staff members will be on hand to provide assistance and recommend products.  At only 67 pence per day, Vitality CBD’s 4800mg Drops/Spray is their best value CBD oil yet.

 

Zephyr Energy 7.3p £94.26m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations,  has entered into a binding agreement acquire further non-operated working interests in currently producing and near-term production wells in the Williston Basin, North Dakota, USA. The Directors of Zephyr believe that the assets will be an ideal addition to Zephyr’s existing asset portfolio and that the cashflows generated from the acquisition will enable the Company to proceed with, amongst other things, the fast-track development of its flagship Paradox project. Under the terms of the acquisition, which is expected to close by 22 December 2021, Zephyr will acquire working interests in 163 currently producing wells with approximately 871 barrels of oil equivalent per day net to the assets being produced in September 2021. In addition to the PDP wells, the acquisition includesc18 proved not producing (PNP) and drilled but uncompleted (DUC) wells, all of which have been drilled and are expected to come online in the coming months. When online, which is expected to be in 2022, the PNP and DUC wells are expected to increase net production of the assets above 1,100 boepd; and 47 proved but undeveloped  locations for future drilling demonstrating the long-term potential of the assets. Consideration for the acquisition, which is subject to various customary closing adjustments, is US$36m, of which US$3m will be paid immediately as a non-refundable deposit.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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