Small Cap Feast

Small Cap Feast – 23 February 2021

Dish of the Day:

Auction Technology Group  (ATG.L) has listed on the Main Market (premium).  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. Mkt cap £600m. £272.7m raised including £246.4m new money.


Off the Menu:

No Leavers Today 

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.

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.


Breakfast Buffet

Crossword Cybersecurity* 298p £17.2m (CCS.L)

The technology commercialisation company focused on cyber security and risk management, has reached agreement with the University of Glasgow to support its PRC (Privacy Risk and Compliance) Project, in creating a new software product aimed at Privacy Governance.  Crossword will help to design, market test and build the software product. Ultimately this product will be owned by a newly formed separate University of Glasgow spin-off business.

Under the agreement, Crossword will provide a team of product managers, designers and developers who will act under the direction of the University of Glasgow’s academic champion.  Crossword will use its large customer base and its in-house team of Privacy & GDPR Consultants to market test the product. Following a rigorous tendering process, the contract was awarded to Crossword for delivery during 2021. Crossword previously worked with the University of Glasgow team in the InnovateUK CyberASAP programme for cyber security academic start-ups.  This collaboration very much stems from that work in 2019.


OKYO Pharma 9.75p £65.6m (OKYO.L)

The biotechnology company focused on the development of novel drugs to treat inflammatory eye diseases and chronic ocular pain, today announced that patent No. 10,899,796 entitled “Compounds and Methods for Treating Pain” was issued by the United States Patent and Trademark Office  on January 26, 2021. This patent covers a class of bovine adrenal medulla (BAM) peptides linked to specific lipids that demonstrate potential for treating symptoms of neuropathic pain, ocular pain, ocular inflammation and/or dry eye disease.

The work recited in this patent lays out the potential of this class of lipidated BAM analogues as non-opioid analgesics for ocular pain management without the side effects and potential abuse associated with opioid medications. The Company originally announced in February 2018 that it had obtained exclusive licenses from On Target Therapeutics LLC and Tufts Medical Center, respectively, covering this ophthalmic disease drug program. These licenses included the rights to the intellectual property estate covering composition-of-matter and methodology claims on these lipid-linked analogues.


Strategic Minerals 0.55p £10.5m (SML.L)

The profitable producing mineral company, announced that its 100%-owned subsidiary Cornwall Resources Limited  is commencing a trenching and auger exploration program to investigate the possible presence of extensions of mineralisation up to 1,000 m to the west of the presently established Redmoor resource.

  • Multiple prospective targets for tin and copper have been identified as a result of a review of historic exploration data to the west of the Redmoor deposit.
  • Historic drill intercepts report up to 1.26% tin over 2.55 m in core, and 0.23% tin in percussion samples.
  • Significant soil anomalies feature values of up to 1,500 ppm tin and 630 ppm copper.
  • Anomalies have a similar trend to known mineralisation further east.
  • CRL to implement a low-cost combined trench and powered-auger sampling program to assess the potential of these anomalies as targets for future reconnaissance drilling.


Begbies Traynor 106.5p £136m (BEG.L)

The   business recovery, financial advisory and property services consultancy, today issues a trading update for its third quarter ended 31 January 2021.

The group has continued its strong trading performance since the half year across both of its operating divisions. This performance leaves the Company confident of the outcome for the full year and delivering results at least in line with expectations for the year as a whole  (current range of analyst forecasts for adjusted PBT of £10.2m-£10.7m).

The business recovery and financial advisory business continues to perform well, maintaining its run rate for activity levels and new appointments. This is in spite of the continuing Government economic support measures, which as previously reported have reduced the number of insolvencies in the UK since March 2020.


SimplyBiz 188.75p £183m (SBIZ.L)

The independent provider of fintech and support services to the UK’s retail financial services sector, has appointed John Milliken to its Executive Leadership team as the new CEO of Defaqto, the UK’s leading research, ratings and fintech business.

John’s extensive experience in scaling technology companies and leading the deployment of digital services will be crucial as he works on expanding Defaqto’s market reach and accelerating growth from its unique software platform and data assets, following its successful integration into the wider Group.

John has led and scaled various fintech, SaaS, enterprise software and deep-tech businesses as both CEO and COO. His practical experience of sustainably growing technology companies includes doubling ARR in his most recent role as CEO of Cantab Research and scaling rapid growth as COO of Infomedia.


Goldplat 7.55p £12.8m (GDP.L)

The Gold producer, with international gold recovery operations located in South Africa and Ghana provided an update relating to the sale of the Kilimapesa Gold Mine in Kenya.

Formal legal documentation relating to the acquisition of total issued share capital of Kilimapesa by Mayflower Gold Investments Limited a wholly owned subsidiary of Mayflower Capital Investments Pty Limited has been signed by all parties.  The formal documentation includes a Share Purchase Agreement entered into by Gold Mineral Resources Limited (GMR, a wholly owned subsidiary of Goldplat) with Mayflower Gold.  The SPA sets out the terms of the Transaction under which Mayflower Gold will acquire 100% of the entire issued share capital of Kilimapesa which holds the licences and assets that form the producing Kilimapesa Gold Mine and processing operations located in Narok County, Kenya. The completion date for the Transaction has been changed from 28 February 2021 to 31 March 2021.

A deed of novation and royalty agreement has also been entered into by GMR and Mayflower Gold.  The royalty agreement, GMR has the right to receive a 1% gross net smelter return royalty subject to a maximum of US$1,500,000 on future gold produced and sold by Kilimapesa.


Sigma Capital Group 156.5p £140m (SGM.L)

Sigma, the PRS (Private Rental Sector), residential development and urban regeneration specialist, announced the commencement of its first PRS development in Scotland with Springfield Properties plc  as Strategic Delivery Partner. The site will be the first development of single family homes for the private rented sector in Scotland. It also marks the launch of Sigma’s rental brand, “Simple Life” in Scotland.

The site will comprise 75 family rental homes with a combined estimated rental value of approximately £0.76m per annum. It is part of a substantial , new standalone village development of around 3,000 homes already well underway by Springfield at Bertha Park , outside Perth on the Ruthvenfield Road. The gross development cost of Sigma’s site is £11.75m, including land acquisition, and a s with Sigma’s other PRS developments , it is being delivered under a fixed-price ‘design and build’ contract.  Construction on the site is expected to commence in late March.


Serinus Energy 3.5p £40.7m (SENX.L)

Serinus announced the flow-test results of the Moftinu-1008 well in Romania. The well flowed 4.0 million standard cubic feet per day (MMscf/d” (approximately 667 boe/d) on test.  As previously announced, the Moftinu-1008 well was drilled to 1,000 metres. The well has four gas-bearing sands that appeared on logs: A1, A2, A3, and B1. All four zones were perforated and completed. Out of these four zones, the Company decided to commence testing the A2 and A3 sands separately and comingled.

The well testing procedure and results are as follows:

  •   Moftinu-1008 started flowing from the A2 and A3 sands on a 12/64″ choke followed by incremental increases in choke size up to 44/64″, and a final eight-hour build-up period.  The total comingled flow time from the A2 and A3 sands was 12.5 hours.
  •   On the 44/64″ choke size, the well flowed at an average rate of 4.0 MMscf/d with no progressive pressure decrease throughout the test.

The well is now awaiting tie-in as the flowline connecting in to the Moftinu Gas Plant has been completed and requires final pressure testing.


Amino Technologies 150p £114m (AMO.L)

The software-led global media technology company that delivers modern TV experiences, announces PayTV+ deployments for GO Malta (GO), Malta’s leading communications services company and Cablenet, the number one cable operator in Cyprus.

GO provides Digital Terrestrial Television to 500,000 subscribers in Malta while Cyprus-based Cablenet is primarily a cable operator. Both companies required a solution that enabled the continued provision of high-quality traditional linear TV while rolling out a next generation digital experience. GO, Cablenet and operators across the industry share the same challenges as traditional linear TV and streaming converges.


Kazera Global 1.425p £9.8m (KZG.L)

Diamond production and general update from the AIM quoted investment company.

 Considerable progress achieved at the Company’s Diamond asset with just over 220ct being sorted in the last month, with a mining grade of 10ct per 100 tons, in line with internal forecasts

  • New block opened at Diamond asset, which initial results indicate an average mining grade of 20ct per 100 ton
  • The Company has entered into Joint Venture with a third party who has the right to mine a further block in the area, on a revenue sharing basis
  • Delays caused by the COVID pandemic in regards to the issuance Company’s Mining Permit and Prospecting Licence at the Heavy Mineral Sands Project appear to have cleared
  • Regulatory progress in respect of the proposed equity investment in the Company


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Derren Nathan
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