Small Cap Feast

Small Cap Feast – 24/03/2021

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What’s Cooking in the IPO Kitchen?

PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, considering an IPO on the High Growth Segment of the Main Market of the London Stock Exchange. PensionBee is a leading online pensions provider in the UK, with approximately 130,000 Active Customers and £1.5 billion of assets under administration , in each case as at 28 February 2020.

Cornerstone FS to join AIM, an SME focused, cloud-based provider of international payment, currency risk management and electronic account services focused on removing the complexity of international payments for customers. Raising £2.2m. Mkt Cap £12.3m. Due 6 April.

Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April 2021.

Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021.

ActiveOps, a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices is planning to join AIM. Details TBA. Due late March.

Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work.

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.

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.

Deliveroo has applied for admission of the Company’s Shares to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange. Deliveroo works with over 115,000 best loved restaurants, takeaways and grocery stores globally and provide work to over 100,000 riders across 800 locations in 12 markets, serving 6m customers globally. The price range for the Offer has been set at £3.90 to £4.60 per Share, implying an estimated market capitalization at Admission of between £7.6 billion and £8.8 billion. Raising c. £1bn. Due 7 April

Breakfast Buffet

ADM Energy* 4.15p £5.1m (ADME.L)

The natural resources investing company, announced the successful completion of its Fundraising which has now closed oversubscribed. The offer was enlarged to accommodate additional investor interest from both new and existing investors.

The Placing and Subscription Offer has raised approximately £1,220,000 (before commission and expenses) through the placing and subscription of 28,710,250 new Ordinary Shares at an Issue Price of 4.25 pence per share. Certain directors, PDMRs and other investors participated in the Subscription.

As previously disclosed, the purpose of the Subscription and Placing is, inter alia, to fund the acquisition of a 51% interest in Karra Oil Noble Hill, and through that a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda Field in OML 141, an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria.

Aquis Exchange 580p £158m (AQX.L)

A survey undertaken by Aquis Stock Exchange (AQSE) and ShareSoc has shown that individual investors do not feel they have good, equal access to growth stocks.

Key findings of the survey

· 55% of individual investors polled feel they don’t have, or aren’t sure they have, good access to growth companies · Around 50% of respondents commented that they do not believe that they have enough access to IPOs and fundraises · Individual investors are frustrated about the privileged access afforded to institutional investors, often at discounted prices · Over 80% of respondents feel individual investors should be able to trade shares in any public company they choose, irrespective of the exchange it is on.

The survey showed that most individual investors are not taking up the trading opportunities available on AQSE. AQSE is a home to growth companies and is dedicated to providing better access to SME stocks for individual investors.

On the Apex segment of AQSE growth market:

– Individual investors are able to immediately participate in IPOs as a growth prospectus is required – Short selling is prohibited (aside from Market Makers) – Spreads are all within 5% – the result of its previously announced innovative Market Maker scheme.

Block Commodities 0.0295p £2.17m (AQSE:BLCC)

Cannabis Seed Stock – Option Agreement—The Company and Century Cobalt Corporation, have entered into an option agreement to acquire approximately 2m seeds from a private seed bank based in Cleveland, Ohio. CCOB is a publicly traded (OTCQB: CCOB) cobalt exploration and development company headquartered in Los Angeles, California.

The seeds comprise 4 varietals suitable for the production of medicinal grade cannabis, with an average 14.5% Cannabinoid content and a 0.25% THC content. If the Option is exercised, each of BCL and CCOB will hold an interest of 50% in the cannabis seed stock.

The option is for an exclusivity period of 90 days to complete due diligence and the purchase. The proposed terms of the purchase are as follows: Payment of an Option fee of £2, to be apportioned equally between the Acquiring Parties, and Payment by BLCC of GBP 100,000 through the issue of 142,857,143 fully paid ordinary shares in BLCC (calculated at 0.07p per share) upon exercise of the option, and contemporaneously the payment by CCOB of GBP100,000 of CCOB fully paid ordinary shares in CCOB at US Cents 7 per share (using the US$:GB£ closing middle market exchange rate published by the Bloomberg on the day immediately prior to completion).

Altona Rare Earths 13p £2.4m (AQSE:ANR)

Altona has entered into a Memorandum of Understanding with Ussokoti Investimetos Limitada to start a legal and technical Due Diligence period of 90 days with a view to acquiring up to 70% in the Monte Muambe Rare Earths Project, via an earn-in arrangement. The tenement is located in Tete Province, Northwestern Mozambique, held by Ussokoti under Prospecting Licence 7573L. The licence covers a 4km diameter circular carbonatite intrusion.

The project has seen previous exploration for the mineral fluorspar, between 2010 and 2012, including 165 reverse circulation drillholes totaling over 12,000m. Drill holes intersected Rare Earth Elements (“REE”) mineralisation in at least four different zones within the intrusion, all of which are open in several directions. Additionally, only about 5% of the surface area of the intrusion have been drilled so far, thus leaving significant potential for discoveries.

Available data indicate that REE mineralisation is at least partly bastnaesite-hosted, and that individual REE intercept grades reach up to 4.1%. Three significant intercepts have been reported: 49m at 2.51% Total Rare Earths Oxide (TREO) from the surface, 36m at 2.53% TREO from the surface, and 96 m at 2.2% TREO from surface.

Hargreaves Services 324p £105m (HSP.L)

The diversified group delivering services to the industrial and property sectors announced that its specialist earthworks business, Blackwell, has been appointed by the EKFB JV to carry out earthworks on part of the HS2 project.

The appointment follows Blackwell’s 2018 engagement by the EKFB team as an advance works contractor and falls on the ninth anniversary of Blackwell’s association with the HS2 programme in a professional services capacity. The subcontract appointment is for 30km of the HS2 earthworks centred on Aylesbury in Buckinghamshire and involves the movement of nearly 15m cubic meters of chalk and clay over the next four years. The award is the largest in Blackwell’s 65 year history.

The award is a welcome addition to the Group’s steadily growing order book, adding to the six framework agreements previously announced in the first half of the financial year. The appointment demonstrates further progress in the Group’s stated plan to deliver reliable and growing profits from Distribution & Services.

Bahamas Petroleum 0.475p £23m (BPC.L)

Update on its high-impact exploration assets in The Bahamas and Uruguay.

· Since the completion of the drilling of Perseverance #1 , the Company has had discussions with industry counterparties in relation to a potential farm-out of its licences in The Bahamas, and is working to formalise an entirely new farm-out process. Consequently, the Company intends to renew the four southern licences in The Bahamas into a third, three year “drill or drop” exploration period

· Final Perseverance #1 drilling cost expected to be approx. $45m compared to pre-drill estimate of approx. $35m; additional costs of approx. $10m incurred as a result of heightened Covid-19 procedures (approx. $3m) and side-tracking operations related to mechanical debris in the well (approx. $7m)

· Formal contract execution for Off -1 block in Uruguay expected 2Q 2021; independent technical work undertaken by Uruguayan national oil company ANCAP indicates a P50 estimated ultimate recovery volume (EUR) of 1.34bn barrels at the Lenteja prospect

· Cash on hand of approx. $13m (as at 1 March 2021, including unconditionally committed convertible notes); anticipated additional capital requirement in 2021/22 across the business of $25 – $40m, the Company expects to more than cover the difference from various potential funding sources.

Titon Holdings 136.5p £15.2m (TON.L)

The international manufacturer and supplier of ventilation systems, and window and door hardware announced theappointment of Matthew Norris as Chief Executive Officer. Matthew will take up the position of CEO and join the Board on 12 July 2021.

Mat brings extensive experience from his previous roles, firstly at Ford Motor Company where he became a Program Leader and Product Development Manager and then working for Philips Electronics in their Consumer Lifestyle division, where he was Director of Manufacturing and Engineering at their site in Suffolk. Mat then worked for Johnson Matthey as General Manager at their Royston site before most recently becoming Operations Director for Jim Lawrence Lighting and Home, a manufacturer of high-end lighting and home furnishings products based in Suffolk. Mat has led innovation and delivered profitable growth and cultural change in all of his leadership roles.

Fox Marble Holdings 2.2p £8.3m (FOX.L)

The company focused on marble quarrying and processing in Kosovo and the Balkans has signed its fourth contract in less than a year to supply a major municipal construction project in Kosovo. The contract, valued in excess of EUR190,000, is to deliver cut and finished paving tiles for installation in the first stage of the redevelopment of the town square in Kamenica, eastern Kosovo.

The 6,500sq metres of cut and finished paving tiles will be supplied over the course of 2021 using material from Fox Marble’s quarries processed in its factory in Lipjan, Kosovo. This contract has been entered into with the developers charged with restoring the town square, which will be paved with material exclusively supplied by Fox Marble.

Feedback 1.325p £14.14m (FDBK.L)

The specialist medical imaging technology company, has been awarded a one year contract with a value of £84,000 with the Royal Berkshire NHS Foundation Trust for Bleepa, its flagship clinical communications platform, across a number of targeted clinical settings. The contract funding has been drawn down from the NHSx National Clinical Communication Tool Framework.

Novacyt 746p £527m (NCYT.L)

The international specialist in clinical diagnostics, announces that, further to the announcement on 2 February 2021, the Company will launch SNPsig® VariPLEXTM this week as a CE-Mark approved polymerase chain reaction (PCR) assay panel able to detect the four COVID-19 variants of concern (VOC) that are currently recognised and the two most biologically significant mutations in a single kit.

Head Chef:

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

*A corporate client of Hybridan LLP

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