Small Cap Feast

Small Cap Feast – 25 November 2021

Dish of the Day:

Hambro Perks (HPA1.L) the international investment firm focused on technology investing, has floated on the London Stock Exchange (Standard). HPAC  has raised £140m 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, if required and approved by a shareholder vote.

 

Off the Menu:

No leavers today

 

What’s Cooking in the IPO Kitchen?

entGuarantor Holdings PLC provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector. The rent guarantee service is an online service where applications can be managed on a secure and bespoke digital platform designed and built by RentGuarantor Holdings PLC. Due to join the Aquis Stock Exchange on 8 Dec.

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.

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

Anexo Group 136p £157.8m (ANX.L)

The specialist integrated credit hire and legal services provider has signed a major agreement with UK-based broker MCE Insurance to offer post-accident claims services to all MCE’s non-fault insurance customers. This follows motor insurer Sabre Insurance Group plc signing an agreement with MCE which will see it become the exclusive underwriter of MCE’s motorcycle policies. Anexo expects the agreement to lead to a significant increase in both the number of vehicles on the road and the number of cases being handled by Bond Turner. The agreement, which is for an initial three-year period, is expected to have a materially positive impact on revenues and to enhance earnings from FY 2022.

 

Brandshield Systems 16.5p £19.5m (BRSD.L)

The provider of cybersecurity solutions from brand protection to online threat hunting, announces new data regarding the rise of e-commerce fraud ahead of another potentially record-breaking Black Friday shopping event, which saw consumers spend over $9bn online during 2020. BrandShield’s report analysed the top products across popular consumer categories including apparel, luxury goods and electronics leading up to the holiday season. Through a deep analysis of websites, domain names and social platforms, the Company found that domain registrations relating to popular electronic brands and consumer products increased dramatically. From October 2020 to November 2020, PlayStation and Nike were the first and second most targeted brands, with suspicious related domain registrations increasing by 127% and 88% respectively. Suspicious domain registrations for Airpods increased 81% over the same period. The report also found that online stores for big-box retailers and online marketplaces were popular targets for cybercriminals, with suspicious domain registrations related to online retailers increasing markedly from October 2020 to November 2020. Target, BestBuy, and Costco saw domain registrations increase by 138%, 89%, and 141%, respectively. BrandShield has provided consumers with a number of tips to help combat the mounting threat of seasonal shopping fraud analysed within their report.

 

Kooth 374p £123.6m (KOO.L)

The UK’s leading digital mental health platform, has appointed Dr Tim Budden as Chief Technical Officer (CTO). In this role, he will be responsible for the further development, and innovation, of Kooth’s products and services, and will report directly to Tim Barker, Chief Executive Officer (CEO). Tim brings over 26 years of deep technical expertise in the fields of artificial intelligence (AI), machine learning (ML), data science, natural language processing and building privacy-by-design platforms. He joins Kooth from Hazy, a deep-tech business focused on enabling data scientists to create privacy-safe data sets from business data. Prior to Hazy, Tim held senior positions at a number of high-profile companies including DataSift (acquired by Meltwater), Sensat and Clearstream where he led the product, engineering and data science teams.

 

Michelmersh Brick 132p £125.8m (MBH.L)

The specialist brick manufacturer today announces a trading update ahead of its final results for the year ending 31 December 2021. The Group intends to report its full 2021 results on 30 March 2022. “The trading performance of the Group has continued to be positive in the final quarter of the financial year. We continue to see strong demand in our end markets from new housing, key repairs, maintenance and improvement and commercial regeneration projects. Despite the ongoing inflation impacts on our supply chain, the Group is managing its costs in line with management expectations. Specifically on energy prices, the Group’s hedging policy means the Group is well placed to manage the impact of gas price volatility over the medium term with our requirements significantly hedged through to 2023. As a result of strong trading, the Board is pleased to announce that it now expects revenue and profit for the Group to be ahead of market expectations for the 12 months ending 31 December 2021. Further, the Group has a strong and well-balanced forward order book giving management confidence as we move into 2022.”

 

Origen Enterprises EUR3.32 EUR413.5m (OGN.L)

The international Agri-Services group, providing specialist agronomy advice, crop inputs and digital agricultural solutions to farmers, growers, landscapers and amenity professionals today issues its first quarter Trading Update for the three months ended 31 October 2021   Strong start to trading in the seasonally quiet first quarter, compared to FY21 where carry-over of stock on-farm reduced demand. Group Revenue was EUR454.1m for Q1 FY22, compared to EUR318.3m in Q1 FY21, representing an increase of 42.6%. Improved revenues were a result of increased demand, some early season forward buying by farmers and an encouraging autumn/winter planting season, particularly in the UK. Increased global fertiliser and feed prices represented approximately half of the revenue growth in the quarter. On an underlying constant currency basis, revenue (excluding crop marketing revenue) increased by 44.0%, reflecting an underlying volume increase of 21.0% in sales of seed, crop protection and fertiliser in the period. The planted area for autumn and winter crops is expected to be broadly in line with Q1 FY21, with an increase in cropping area expected in the UK offset by a modest reduction in Continental Europe. In Latin America, the total cropping area dedicated to soya is expected to increase. Strong crop prices globally mean that on-farm sentiment across the Group’s markets is positive.

 

Phoenix Copper 59.5p £69.5m (PXC.L)

Further analytical results from the Company’s 2021 Deep Sulphide core drilling programme, below the known open pit oxide resource, at the Empire Mine in Idaho, USA. Assay results from Holes KXD21-04, KXD21-05, and KXD21-06 intercept high-grade mineralisation across a suite of metals. Significant intercepts of 2.9 g/tonne gold, 187 g/t silver, 1.45% copper, 4.93% zinc, and 8,030 ppm (0.80%) tungsten intercepted. Anomalous molybdenum and tungsten mineralisation also intercepted.  A total of 979 m of the current 4,500 m deep sulphide programme have been completed to date (excluding 68 m long KXD21-01, which was abandoned due to interference with historical underground workings).

 

Poolbeg Pharma 9.75p £48.75m (POLB.L)

The clinical stage infectious disease pharmaceutical company with a capital light clinical model, has appointed Professor Daniel Hoft to its Scientific Advisory Board. Prof Hoft, M.D., Ph.D. is the Dianna and J. Joseph Adorjan Endowed Chair of Infectious Diseases and Immunology, and Director of the Division of Infectious Diseases, Allergy & Immunology at Saint Louis University (SLU) School of Medicine. He has been working in immunology and infectious diseases for 32 years. Prof Hoft has published over 140 peer reviewed scientific publications.

 

President Energy 2.45p £50.1m (PPC.L)

The energy company announces the completion of its farm-out of the Pirity Concession, Paraguay. The farm-out to CPC Corporation, Taiwan, the state -owned energy company of Taiwan has now fully completed, on the terms referred to in the announcements, after satisfaction of all applicable conditions. CPC and President, through their subsidiary companies, now have an equal 50/50 interest in the Pirity Concession, Paraguay with President continuing as operator under an international form of Joint Operating Agreement. Both CPC and President look forward to the drilling of the exploration well at the Delray Complex within the Concession. The Company estimates that this complex has 230m barrels of Pmean unrisked original oil in place. The location of the exploration well within the complex has been identified and planning has begun for the drilling of the well in H1 2022 after the end of the rainy season.

 

Secure Trust Bank 1310p £244m (STB.L)

Secure Trust Bank PLC announces that it anticipates the full financial year 2021 IFRS 9 impairment charge will be materially below consensus (£12.9m).  As a result, the Board expects that STB’s profit before tax in FY21 will be above the top end of analysts’ consensus estimates. Separately has agreed to acquire AppToPay Ltd owner of a proprietary technology platform to support its planned entry into the digital Buy Now Pay Later market.

 

Trinity Exploration 131p £63.35m (TRIN.L)

The independent E&P company focused on Trinidad and Tobago, is pleased to announce that it has received approval for the Field Development Plan (FDP) for the Galeota Asset Development Project from the Ministry of Energy and Energy Industries (MEEI). The comprehensive and relatively quick approval by the MEEI review team, against the background of the pandemic, is extremely helpful and provides a suitably matured development concept which can be reviewed by potential funding partners as part of the farm-down process. The FDP is focused on the Phase 1 development of the Galeota licence, which has the potential to add additional peak production of c4,000 bopd on the submitted development concept. More recent dynamic modelling has indicated that intra-year peak production could be significantly higher, at up to 7,000 bopd.

 

Head Chef:

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

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