Small Cap Feast

Small Cap Feast – 23 September 2021

Dish of the Day:

Off the Menu:

John Laing Group has left the Official List (premium)

What’s Cooking in the IPO Kitchen?

Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and highquality customer service. Due October.

Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.

Responsible Housing REIT to join the Main Market (Premium) raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.

Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. Offer TBA. Due 30 Sep.

Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.

Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offeringon the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.

Peel Hunt (to be renamed PH Capital), a UK mid and small-cap specialist investment bank, announces its intention to seek admission of its ordinary shares to trading on AIM. Admission is expected to take place on or around 29 September. In conjunction with a placing of Ordinary Shares the Company will be conducting an intermediaries offer.

Oxford Nanopore Tech—to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for £150m of a total raise of circa £300m. Due early Oct.

Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.

Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA. Petershill Partners, Intention to Float on the London Stock Exchange.

Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bn of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA

GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due late September

Responsible Housing REIT to join the Main Market (Premium) 5 October, raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.

Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (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. Offer TBA. Due Late September.

Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped coppergold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

Breakfast Buffet

Capital for Colleagues 57.5p £8.9m (AQSE:CFCP)

The investment vehicle focused on opportunities in the Employee Owned Business sector, announces an investment update in respect of the quarter ended 31 August 2021. Portfolio comprised of 15 unquoted EOBs at the end of the quarter (31 May 2021: 14). Net Asset Value (NAV) of £10,764,556 (31 May 2021: £9,891,499 ) NAV per share increased to 69.71 pence in the quarter (31 May 2021: 64.06 pence per share). Bright Ascension Limited (‘BAL’) raised £1.0m through the issue of new ordinary shares to investors, matching development funding of a similar amount awarded to BAL as part of a European Space Agency (ESA) project. In conjunction with BAL’s fund raising, and to support the long-term growth plans of BAL, C4C exchanged its preferential participation rights relating to its ‘A’ Ordinary Shares into 50,000 new ordinary shares in BAL, with a deemed aggregate value of £1.75m. The Company also owns a fixed interest in the £250,000 principal amount of the former ‘A’ Ordinary Shares. Together, these represent a material uplift on C4C’s original £0.25m investment in BAL. The Company sold its investment in portfolio company Ecomerchant Natural Building Materials Limited for consideration of £0.25m, a profit on the original investment of around 150%. Capital for Colleagues invested £0.8m in ordinary shares in Craft Prospect (‘CPL’), a space engineering business founded in 2017, that develops enabling quantum and AI-based products and mission applications for the small satellite market. CPL will use the new funds for furthering its flight heritage capability, recruiting additional experience to its team, and developing new products and services. The Company currently has cash balances of £1.91m and no debt.

Enwell Energy 36.21p £116m (ENW.L)

The oil and gas exploration and production group, announced the spudding of the SV-31 well at its Svyrydivske (SV) gas and condensate field in Ukraine. The SV-31 well has now been spudded and has a target depth of 5,250 metres. Drilling operations are scheduled to be completed by the end of the first quarter of 2022, and, subject to successful testing, production hook-up is scheduled during the second quarter of 2022. The well is a development well, targeting production from the V-21 and V-22 horizons in the Visean formation, which have demonstrated good productivity in an existing nearby well.

IOG 27.25p £133.4m (IOG.L)

The Net Zero UK gas and infrastructure operator focused on high return projects, today announced a proposed placing and Subscription to raise gross proceeds of approximately £8.5m through the issue of new Ordinary Shares of 1 pence each in the capital of the Company. The New Ordinary Shares will be issued to existing and new investors pursuant to the Placing at a price of 25 pence . The net proceeds of the Fundraise will primarily be used by the Company to pursue a high-return incremental opportunity in addition to its existing development assets portfolio, by funding its 50% net share of the cost of drilling a dual-lateral appraisal well at the Kelham North and Kelham Central prospects in licence P2442 (Block 53/1b). Management estimates that Kelham North and Kelham Central contain gross mid-case resources of 36 Billion cubic feet equivalent (Bcfe) and 42 Bcfe respectively, while the wells have geological chances of success of 80% and 70% respectively.

Kibo Energy* 0.22p £5.6m (KIBO.L)

Kibo Energy PLC, the renewable energy focused development company, announced further to its 16 September 2021 announcement regarding the acquisition of a 54.54% interest in the 25 MWe Billingham waste gasification and power plant developed by EQTEC PLC (AIM: EQT), that the Company is now in receipt of a number of formal term sheets for the funding of the Transaction. The aggregate amount of funding offered to the Company under the term sheets exceed the total funding requirement of GBP 3m for the Transaction. The potential funders and the Company will now proceed with customary due diligence and approval procedures. The Company anticipates formal funding agreements to be completed contemporaneously with the completion of the Transaction. Louis Coetzee, CEO of KIBO said, “The Company is very pleased with the strong interest in and rapid progress made thus far in securing funding for the Transaction.”

Kistos 333p £276m (KIST.L)

The low carbon intensity energy producer pursuing a strategy to acquire assets with a role in energy transition announced that, following a planned four-week maintenance shutdown previously announced by the Company on 1 September 2021, the TAQA operated P15-D platform has resumed normal operations. In turn, this has allowed the resumption of gas export from the Q10-A gas field, which is operated by Kistos with a 60% working interest.

Kromek Group 16.4p £70.8m (KMK.L)

The worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, announces that it has received a contract worth up to $1.6m from a US federal entity for the Group’s D3S-ID wearable nuclear radiation detector that is designed to enable first responders, armed forces, border security and other CBRN experts detect radiological threats. The contract will be delivered over two years commencing immediately.

Petards Group* 10.75p £6.2m (PEG.L)

The developer of advanced security and surveillance systems reported its interim results for the six months ended 30 June 2021. Order book at 30 June 2021 £9m (H1 2020: £12m). Return to profitability at all levels and strong cash generative performance. eyeTrain deliveries and revenues recovered from H1 2020 COVID-19 related factors although order intake is still being affected. QRO continues to perform well with good contribution from NASBox product acquisition. Reduction in on-going cost base in 2020 has fed through to improved gross profit margin. Defence related activities on an improving trend. Revenue £7.7m (H1 2020: £7.1m). Gross profit margin increased to 39.6% (H1 2020: 34.4%). Adjusted EBITDA £929,000 (H1 2020: £337,000). Post-tax profit £430,000 (H1 2020: loss £469,000). Cash generated from operating activities £1,669,000 (H1 2020: £1,802,000). Net funds at 30 June 2021 increased to £2.7m (31 Dec 2020: net funds £1.2m). Group’s bankers replaced existing term loan with £0.5m CBILS term loan and secured undrawn £2.5m 3-year CBILS overdraft facility to May 2024. Diluted EPS 0.74p earnings (H1 2020: 0.82p loss)

Quadrise Fuels 3.64p £51.2m (QFI.L)

The supplier of MSAR® and bioMSAR™ emulsion technology and fuels, the low-cost, cleaner alternatives to heavy fuel oil and biofuels, updated on the testing of a produced oil sample taken from the Petroteq Oil Sands Plant from the Greenfield Energy LLC’s Utah operations team. An extensive programme of testing on the Greenfield oil sample was completed at the Quadrise Research Facility in Essex on schedule. The testing programme at QRF has confirmed the ability to produce commercial MSAR® and bioMSAR™ fuels from the sample of heavy sweet oil provided and a report of the testing results has now been issued to the client. Simulations of storage and handling of both MSAR® and bioMSAR™ produced were also completed during the programme which indicate that commercial production of MSAR® and bioMSAR™ fuels would be possible in Utah for potential power and marine end-user applications domestically and internationally. This testing programme concludes the Proof-of-Concept work that was scheduled in Phase 1 of the Commercial Trial Agreement announced on 18 August 2020 and Quadrise and Greenfield are now in discussions regarding potential future trials and deployment of the technology to produce MSAR® and/or bioMSAR™ fuel at commercial scale.

The British Honey Company 115.5p £19m (AQSE:BHC)

The producer of premium British Honey, Honey-infused spirits and no/low products, announces the following Board changes, all with immediate effect. Mr Michael Williams has stepped down as Interim Chairman and Chief Executive Officer with but will remain on the Board as a Non-Executive Director pending the appointment of his replacement as Chairman. A professional search firm has been appointed to seek a suitable successor. Mr Philip Seers has also resigned as Senior Non-Executive Director but will continue to provide advisory services to the Company as required by the Board. Mr Robert Porter-Smith has re-joined the Board as a Non-Executive Director. Mr Alex Maurice, currently the Company’s Chief of Staff, has been appointed Chief Operating Officer. It is the intention to appoint Alex Maurice to the board pending completion of the standard regulatory checks and a further announcement will be made in due course. Mr Maurice, who has been with the company since 2016 has been instrumental in the development of the Company’s market leading proprietary software.

Conygar Investment Co 134p £70.35m (CIC.L)

The property investment and development group, announces that Nottingham City Council has passed a resolution to grant planning permission for a 700-bed scheme on The Island Quarter. The new accommodation, which forms part of the plans for intergenerational living on The Island Quarter, the £1 billion 36-acre redevelopment, is likely to start on site shortly and be available for students to occupy at the start of the 2023/24 academic year. Christopher Ware, Director at Conygar said: “We’re delighted that the planning committee has approved the plans for the proposed student accommodation on The Island Quarter. Nottingham is home to world-renowned universities and further educational institutions, and its student population is growing rapidly. The demand from second and third-year students to remain in purpose-built accommodation is also increasing and there is a clear need for additional, quality student beds in the city.”

Head Chef:

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

*A corporate client of Hybridan LLP

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