Small Cap Feast

Small Cap Feast – 24 November 2021

Dish of the Day:

Foresight Sustainable Forestry Company (FSF.L) has joined the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raised  £130m.

 

Off the Menu:

Atlas Mara has left the Main Market (Standard)

 

What’s Cooking in the IPO Kitchen?

Windward to join AIM. Windward is a leading predictive intelligence company, fusing artificial intelligence (AI) and maritime expertise seeking to digitalise the global maritime industry. As at 30 September 2021, the Company had 120 permanent employees and had an annual contract value of US$19.7m, with 99 per cent. of the revenue being subscription based. Offer and timing  TBC.

Ondine Biomedical to join AIM. Ondine Biomedical Inc. is a life sciences company, incorporated in Canada, focusing on the development of photodisinfection-based therapies to provide solutions to drug-resistant infections  Capital to be raised: £22.2m ($30.0m). Anticipated market capitalisation on Admission at the placing price: £103.9m ($140.1m). Due 6 Dec.

Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately 1.7m before expenses. First dealings in the shares are expected to commence in December 2021. The flotation is expected to value Lift at approximately £2.7m.

ThomasLloyd Energy Impact Trust plc, a newly established closed-ended investment company which will invest in a diversified portfolio of unlisted sustainable energy infrastructure assets in fast-growing and emerging economies in Asia, seeking to join the premium segment of the Official List . Due 14 Dec raising up to $335m.

Hambro Perks  international investment firm focused on technology investing, to float on the LSE (Standard). HPAC intends to raise up to £150m through the listing. HPAC believes there is a compelling opportunity to generate shareholder value by investing in proven ‘tech winners’ emerging from the UK and Europe. It will leverage its full platform – including its international sourcing network, proprietary pipeline, investment team, executive team, board of directors and special advisors – to identify, select and enter into a business combination with a high-performing, later-stage technology-enabled business within an initial period of 15 months from the settlement date, subject to two three-month extension periods.  Due 7 Jan 2022

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.

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

88 Energy 1.47p £217m (88E.L)

Merlin-2 Appraisal Well Location Selected. Merlin-2 location selected from the three locations initially permitted for the appraisal program. Target drilling location situated east and downdip of Merlin-1· Merlin-2 well location expected to display thicker reservoir sections and higher permeability / porosity sands, targeting 652m barrels of oil with geological chance of success of 56%. Remaining two locations, together with Harrier-1, are permitted and can be drilled at a later stage. Production test for the Merlin-2 well planned subject to results of wireline program. Permitting and planning of Merlin-2 is at an advanced stage, with the benefit of learnings from Merlin-1.

 

Alien Metals 0.76p £29.85m (UFO.L)

UFO  has entered into a Binding Heads of Agreement with ASX listed Platina Resources Limited (ACN 119 007 939)(ASX: PGM)  to conditionally acquire Platina’s 30% joint venture interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia. The Munni Munni Project is adjacent to the Company’s highly prospective Elizabeth Hill project which already hosts potential for further significant silver, copper, nickel and PGE mineralisation. The Munni Munni Project hosts, the largest intrusion in the West Pilbara and one of the largest undeveloped primary Platinum Group Elements (PGE) Resources in Australia:-  The historic non-compliant JORC 2004 resource estimate implied 24Mt @ 2.9g/t Platinum Group Element (PGE) and gold for 2.2Moz PGE and gold. Around 95% of the historical resource estimate was in the Measured and Indicated categories. The historic JORC resource estimate suggests that the deposit contains 1.14Moz palladium, 0.83Moz platinum, 152Koz gold and 76Koz rhodium.  Total consideration is A$2.23m of which A$1.98m will be satisfied by the issue of  ordinary shares in Alien.

 

Arkle Resources 0.8p £2.5m (ARK.L)

Further results from its recent exploration programme at Mine River on the Wexford/Wicklow border in Ireland.  Tombreen target has now grown to a 1.5km long, 750 metres wide gold corridor. Trenching has discovered gold in rock at two new locations. Further drilling finds gold at Tombreen, Tombreen West and soil anomaly A. Trenching of the B and C soil anomalies has identified further gold mineralisation. Results of trenching include 2.15g/t Au and 1.47g/t Au in blue quartz. Drilling at Tombreen West identified 0.5 metres at 2.58g/t Au from 119.9 metres. Drill testing of soil anomaly A identified 0.5 metres at 0.9g/t Au from 143.5 metres. Step out hole at Tombreen identified 2.0 metres @ 1.24g/t Au from 188 metres. Drilling has now ceased for 2021.  Results from the last hole are expected within the coming weeks.

 

Bens Creek 28.5p £99.8m (BEN.L)

The owner of a metallurgical coal mine in North America supplying the steel industry, has today published pictures of the Group’s highwall miner which has been delivered and is currently being assembled on site at the mine in West Virginia. In line with the Company’s announcement of 29 October 2021, the single highwall miner and related highwall mining equipment has been supplied to the Group by Mega Highwall Mining LLC (MHW) pursuant to the contract mining services agreement that has been entered into between MHW and the Group. As stated in the Group’s admission document, published on 13 October 2021, the Group aims to move into production by the end of Q4 2021. Pictures of the highwall miner being assembled are available to view on the Group’s website at https://benscreek.com/highwallminers.html.

 

Breedon Group 101.1p £1,708m (BREE.L)

The  vertically integrated construction materials group in Great Britain and Ireland today reports on its performance for the 10 months to 31 October 2021. Group revenue of £1,045m up 31% versus the same period in 2019. Like-for-like revenue increased 15% on the same period in 2019. Positive margin performance reflects dynamic pricing and cost recovery actions. Layered hedging policy continued to mitigate key commodity cost pressures. The recovery experienced in the first half of 2021 has been sustained, with supply chain disruption managed effectively by our local teams who have stayed close to their customers and suppliers. While the dynamic cost environment is likely to persist into 2022, the medium-term outlook for our end markets and demand levels remains encouraging, with both the UK and Irish Governments committed to material long-term spending plans for construction.

 

Gateley Holdings 220p £262m (GTLY.L)

The legal and professional services group  announced a trading update ahead of its half year results for the six months ended 31 October 2021 which will be announced on 12 January 2022. The Board is delighted with the strong performance of the Group in the period, both in terms of activity levels and fee generation, which were in line with management’s expectations. Revenue for the period has grown by 23% and is expected to be not less than £62.0m. Momentum built during the strong second six months of FY21 has continued, further vindicating the Group’s decision in 2020 to retain capacity during the onset of the pandemic. Gateley continues to benefit from lower-than-normal levels of discretionary expenditure which is expected to last at least through the remainder of the financial year. Underlying adjusted profit before tax* is not less than £8.1m for the period, compared with £7.5m for the prior period. Cash generation during the period has remained strong after reintroducing dividends to shareholders and bonus payments to staff, net cash was £7.8m at the period end. The Board looks forward to the second half of the financial year with confidence.

 

Journeo 111p £9.7m (JNEO.L)

The information systems and transport technical services group announced a three-year Software as a Service (SaaS) contract for CCTV technology management  with Arriva UK Bus. The value of the contract over the three-year period is £1.3m and includes engineering, software licenses and technical support services across the Arriva UK fleet of 4,700 buses. The contract also includes a customer option of extending the software licenses by a further two years at additional cost.

 

Marlowe 877p £724.75m (MRL.L)

The UK leader in business-critical services and software which assure regulatory compliance, provided a trading update ahead of publication of the Group’s interim results for the six months ended 30 September 2021 on 1 December 2021. Trading in the first half of the financial year was strong and the Group now expects to report FY 2022 full year results ahead of current market expectations as a result of strong organic growth and the successful execution during FY 2022 to date of the Deepen, Broaden, Strengthen and Digitalise compliance software and service strategy .H1 FY 2022 Group revenue up 61% to 134.5m, organic revenue growth of 15%, 8% when adjusting for COVID impact. H1 FY 2022 Divisional adjusted EBITDA margin increased 300 bps to 17.8%. H1 FY 2022 Adjusted EPS up 50% to 16.0p and H1 FY 2022 Adjusted profit before tax up 127% to £15.2m. A record period for acquisitions. Twelve acquisitions completed during H1 FY 2022 for a total initial consideration of £76.5m, adding approximately £11.4m of adjusted EBITDA.

 

Tekmar Group 52.5p £27.1m (TGP.L)

The provider of technology and services for the global offshore energy markets announced a contract award from Global Offshore to supply Cable Protection Systems (CPS) for the Arcadis Ost 1 offshore wind farm in Germany. Arcadis Ost 1 is a 257MW offshore wind farm under development by Parkwind Ost GmbH. The wind farm will be located in the Baltic Sea, northeast of the island of Rügen in Germany. Once fully operational Arcadis Ost 1 will create enough green energy to power approximately 290,000 households in the region. Under the supply contract, Tekmar will design, manufacture, and supply its latest generation of TekTube CPS to protect the wind farm array cables as they transition from the seabed into the wind turbine foundation at 27 separate locations. The CPS will be manufactured at Tekmar’s state-of-the-art facility in the northeast of England and delivered to Global Offshore in 2022.

 

Zenova Group 20.5p £19.14m (ZED.L)

The provider of innovative fire safety and heat management technology and products has secured a major contract for the supply of its products in four European countries. The three-year contract, which commences on 1 January 2022, is with a Spanish company that will become an Authorised Distributor of Zenova products and will promote and sell them to its clients in Spain, Germany, Austria, and Switzerland. Its clients include a German business that is a leading international specialist in the production of ready-to-use high-tech coatings, and has an established salesforce, warehousing and distribution infrastructure. Under the terms of the contract, the Authorised Distributor has committed to purchase a minimum value of €9.8m of Zenova’s products over the next three-years, with €1.8m due in 2022.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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