Small Cap Feast

Small Cap Feast – 23 November 2021

Dish of the Day:

Ashtead Tech (AT..L), 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 . Capital to be raised on Admission: c.£51.6m (comprised of c.£15.5m of primary proceeds for the Company and c.£36.0m of secondary proceeds for the selling shareholders) Anticipated market capitalisation on Admission: £128.9m

Atrato Onsite Energy (ROOF.L), a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Achieved its target raise of £150m.

Mila Resources (MILA.L)  readmitted to the main market (standard) following  the acquisition of an initial 30% interest in the Kathleen Valley gold project and the exploration licence E36/876 in the Kathleen Valley. Raised gross proceeds of £3,500,000 through a Placing and Subscription at an offer price of 2.4p per share to support a comprehensive exploration and drilling programme at the Project, including the proposed first drill programme of 11,000m, and for further working capital

 

Off the Menu:

No leavers today

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.

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.

 

 

Breakfast Buffet

4basebio 760p £93.6m (4BB.L)

The specialist life sciences group focused on exploiting intellectual property in the field of cell and gene therapies and DNA vaccines announced a Joint Development Agreement (JDA) between its wholly owned subsidiary 4basebio Discovery Limited and Leucid Bio Limited, a biotech company pioneering next-generation Chimeric Antigen Receptor T-Cell (CAR-T) Therapies  for hard-to-treat cancers. CAR-T therapy is an ex-vivo cell therapy which involves genetically reprogramming a patient’s T-cells to recognise and destroy cancer cells. While current practice relies on integrating viral vectors to deliver the genetic payloads to generate the CAR T-cells, non-viral based approaches, such as MaxCyte’s electroporation technology, are gaining popularity given their scalability, improved safety profile and flexibility in delivering payloads aimed at creating allogeneic, off-the-shelf CAR T-cells. Under the JDA, the companies will evaluate the use of 4basebio’s Hermes™ non-viral nanoparticle and synthetic hpDNATM technology for enhanced delivery of genetic payloads to generate CART-cells. The successful outcome of this project will pave the way for development of a novel, high-performance and more cost-effective cell engineering method for CAR-T products.

 

AEX Gold 32p £57.5m (AEXG.L)

Completion of its geophysical exploration programme conducted across its 100% owned Tartoq gold exploration licences in Southern Greenland.  The 248km2 Tartoq licences host mineralisation that is considered analogous to projects in Canada’s Abitibi greenstone belt and AEX believe that the licence holds the potential to host a multi-million ounce Orogenic Gold deposit. Historical drilling (460m of ‘Winkie drilling’ and 1,364m of core) across the Nuuluk & Iterlak sub blocks include intersections of 2.5 m @ 4.8 g/t Au at Nuuluk, 2.0 m @ 6.6 g/t Au at Nuuluk and 1.97 m @ 8.28 g/t Au at Iterlak, (2020 SRK CPR).Highlights · Successful completion of a 84km2 airborne magnetics and radiometrics survey across the prospective Tartoq Gold Belt · Machine Learning aided interpretation from Goldspot, the Company’s technical partners · Clearer understanding of the controls to mineralisation within the Tartoq licence · Identification of structures prospective for the hosting of mineralisation · Programme materially improved AEX’s structural understanding of the licence with identification of a series of priority targets for follow up exploration.

 

Deltic Energy 2p £28.05m (DELT.L)

Deltic Energy announced that the 3D seismic survey over Licence P2428 and surrounding areas has now been completed. Following the announcement of Deltic’s farm-out agreement with Cairn Energy PLC  on 12 August, the Company announced the commencement of the 3D seismic survey over Licence P2428 on 10 September 2021. The seismic vessel, under contract to ION Geophysical, was mobilised to site to acquire approximately 680km2 of new 3D seismic data over the Plymouth Zechstein Reef prospect and surrounding areas on Licence P2428. Acquisition of the 3D seismic data was completed on 21 November and the vessel will now be demobilised back to its home port. The data collected will now be processed by ION to pre-stack depth migration (‘PSDM’) with the final results expected to be delivered in Q2 2022. Under the farm-out agreement, Cairn is responsible for 100% of the costs of the seismic acquisition, processing and associated work programmes up to the point at which a positive well investment decision is made.

 

European Metals 78.5p £137.7m (EMH.L)

Update in relation to the outcomes of the Life Cycle Assessment conducted by Minviro in relation to lithium battery chemicals production from the Cinovec mine. · Cinovec’s Global Warming Potential has been modelled using ISO-compliant LCA by consultancy Minviro Ltd, providing clear resolution of the drivers of the project’s emissions. · GWP Impact Mitigation Scenarios identified for the Cinovec Project, potentially including solar power, electric mining fleet, Hypex Bio explosives and use of green hydrogen for thermal energy (Cinovec Decarbonised Case) which could make Cinovec’s lithium chemicals have some of the lowest CO2 intensity in the world if all impact mitigation strategies are pursued.· CEZ plans to provide 100% renewable energy to power the mine, the Front-End Comminution and Beneficiation (FECAB) and Lithium Chemical Plants (LCP) · LCA also assessed Acidification Potential (AP), Water Use and Land Use (per ISO standards). –  AP is comparable to Chilean Brine but only 13% of the equivalent for Australian spodumene processed in China. –  Cinovec Water Use projected to be lower than all benchmarks and <5% of Chilean Brine Water Use even when water evaporated from the brine is not included in the water use calculation.

 

Good Energy Group 287.5p £48.24m (GOOD.L)

The 100% renewable electricity supplier and innovative energy services provider, announces its subsidiary Zap-Map, the UK’s leading EV mapping service, has partnered with Allstar Business Solutions Limited, one of the UK’s leading fuel and electric vehicle (EV) charging companies, to provide a seamless payment solution for fleets with EVs. Attracting 180,000 UK users per month to its app, Zap-Map provides EV drivers with access to detailed mapping of charge point locations across the UK, allowing users to search for chargers, plan their journeys, pay for charging and share live updates with other EV drivers all within one, unified app experience. The agreement, which follows the UK government’s announcement setting out its strategy for net zero, will support Allstar in enhancing its on-the-road charging offering to its customers through additional features in the Zap-Map app.

 

Knights Group 415p £346.34m (KGH.L)

Knights, one of the fastest growing legal and professional services businesses in the UK, today provides a trading update for the half year ended 31 October 2021. Highlights of which include:· Revenue of c.£59.7m representing growth of 29% (H1 21: £46.2m) · Underlying adjusted PBT of c.£7.6m representing growth of 26% (H1 21: £6.0m) · Underlying PBT margin maintained at 13% (H1 21: 13%) · Cash conversion remains excellent · Industry leading lockup 1 of 99 days, underpinned by debtor days of 33 despite integration of new recruits and recent acquisitions · Net debt 2 as at 31 October 2021 of £23.1m (FY 21: £21.1m) after £5.8m of acquisition consideration and related costs.

 

M&C Saatchi 168.25p £205.7m (SAA.L)

The Company announced a further trading upgrade for 2021. Since the last trading update on 21 September 2021, the Company has continued to trade well. As a result of the continued strong performance, management now believes the Company’s headline profit before tax for FY21 will be ahead of consensus expectations, with both revenue and operating profit margin ahead of market forecast. New business continues to be strong with new client assignments including projects for Apple and Mars. Also extended relationships with Commonwealth Bank, Whoop and TikTok, and ‘Icelandverse’ became one of the most talked about campaigns of the year.

 

Mirada 70p £6.24m (MIRA.L)

The provider of integrated software solutions for digital TV operators and broadcasters, announces that across its customer base it has surpassed the deployment of one million set-top boxes  powered by its Android TV Operator Tier offering. Android TV is fast becoming the platform of choice for operators. It offers superior functionality, with an app store, voice control, personalised recommendations and a user interface that puts content first. It also grants operators and service providers the ability to easily layer on their own branding. Using statistics published by technology research firm Omdia, Mirada STBs now constitute approximately 5% of the expected 20m global Android TV Operator Tier STB installed base in 2021. Omdia forecasts that 50m Android TV Operator Tier STBs will be in use in 2024, with Mirada confident of continuing to consolidate its market share.

 

Semper Fortis Esports* 1.4p £5.8m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services , reported that its SMPR Rocket League team has qualified for The Rocket League RLCS Fall International Major which will take place in Stockholm, Sweden, from 8-12 December 2021. SMPR is one of 16 teams qualified to do battle with some of the best sides from around the world. The prize pool allocated for the Fall International Major stands at $300,000. Jassem Osseiran, COO of Semper Fortis Esports, commented: “SMPR’s qualification for this Major comes off the back of a creditable 2nd place finish in the EU Regional Event 3 this last weekend. We look forward to competing strongly against some of the best teams in the world at what will be the first physical event in this League to be staged since the start of the pandemic.”

 

Supply@MeCapital 0.18p £64.8m (SYME.L)

The fintech business which provides an innovative Platform for use by manufacturing and trading companies to access Inventory Monetisation© solutions enabling their businesses to generate cashflow, today announces its arranging agreement with Intesa Sanpaolo Private Bank (Suisse) Morval SA (ISPB Morval) to finalise the structuring of the funding for the Company’s Shariah-compliant Inventory Monetisation platform. The first inventory monetisation transactions that will benefit from ISPB Morval arranging activities relate to SYME’s portfolio of clients based in the MENA (Middle East and North Africa) region, introduced by Lenovo Financial Services META LLC per the agreement announced via RNS on 11 January 2021. As first announced in the RNS of 20 January 2021, SYME received approval from Sheikh Dr. Mohamed Elgari and Sheikh Yusuf Talal DeLorenzo in their capacity as members of the Shariah scholar board that the functional and legal structure of SYME’s Inventory Monetisation platform is compliant with AAOIFI Shariah standards and acceptable under the principles of Shariah. The Company now expects that the Shariah funding route structured by ISPB Morval will feed into the Global Inventory Monetisation program, as per the announcement in the RNS of 09 August 2021, and become a dedicated compartment.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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