Small Cap Feast

Small Cap Feast – 26th January 2022

Dish of the Day:

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What’s Cooking in the IPO Kitchen?

Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb.
ACP Energy plc, a company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset, seeking to join the Main Market (Standard) The Company intends to focus on opportunities in the natural resources sector, raising gross proceeds of £830k. Due 28 Jan.
Artemis Resources ltd, an ASX listed mining exploration and development company intends to join AIM. The Company owns projects based in the Pilbara region of Western Australia, the Greater Carlow Gold-Copper-Cobalt Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara. The Company also owns the Radio Hill processing plant that is currently on care and maintenance. This plant is strategically located only 35km from the Greater Carlow Project. Mkt Cap TBC, Capital to be raised approximately £5m. Due 7th Feb.
Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operations to supply labour to the northern section of the HS2 rail project from London to Birmingham. In addition, up to £4.5m will be raised for the existing shareholder from the sale of part of its interest in the Company. Hercules has a sustained track record of revenue growth from £9.7m in FY 2015 to £30.7m in FY 2019 and has experienced a strong rebound following Covid-19 growing to £14.0m in H1 FY 2021. Expected early Q1 2022.
Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.
Unbound Group PLC, (currently called Electra Private Equity PLC) to join AIM. Unbound Group, will be the parent company for a range of brands focused on the 55 plus demographic. Initially focused on Hotter Shoes, Unbound’s curated, multi-brand retail platform will offer additional products and services that will enhance the enjoyment and wellbeing of its targeted customer community. This online platform will be based on the foundations of Hotter Shoes as a trusted brand, cloud-based digital infrastructure, and strong customer personalisation through data insight. No capital being raised on Admission. Anticipated Mkt Cap c.£30m. Due 31st Jan.
Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Timing TBC.
SuperSeed Capital Limited, to join the AQSE Growth Market. The Company will invest in technology-led innovation primarily through unquoted funds managed by SuperSeed Ventures, the Company’s Investment Manager, with the objective of maximising the investors’ long term total returns – principally through capital appreciation. Mkt Cap and Capital to be raised TBC.
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Jan.
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission late Jan.
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. Due late Jan 2022.
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 early Q1 2022.
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. Due late Jan 2022.
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 Late Jan 2022. Mkt Cap and Capital to be raised TBC.

Breakfast Buffet

CPP Group 352p £31.1m (CPP.L)

A provider of assistance and insurance products which reduce disruptions to everyday life for millions of customers across the world, announces that, as part of its strategy to focus on its key growth areas, is exiting the Chinese market. A sale and purchase agreement has been entered into for the disposal of CPP China for nominal cash consideration of HK$1. As part of the Disposal, CPP Group has made a working capital cash injection into CPP China of £0.5m. The majority shareholder of T-Link is Wilson Chan, the CEO of CPP China. Jason Walsh, CEO of CPP Group, commented: ” This disposal is in line with CPP Group’s commitment to taking decisive action in withdrawing from markets where it does not believe its prospects are sufficiently strong. It follows the steps we took in 2021 to simplify and focus the Group, through the sale of our German card protection business and restructuring our operations in Mexico and Malaysia. The progress we have made on these fronts, together with further actions planned for 2022, allows us to reduce our ongoing operating expense base and concentrate on our technology-led strategy in our key markets where we have the scale and capabilities to generate sustainable growth and deliver greater value for all our stakeholders.”

D4T4 Solutions 292.5p £117.8m (D4T4.L)

The data solutions provider, announces the appointment of senior executives to US-based roles. Mark Krebs joins as Vice President of Sales, North America; Tiffany Staples as Vice President of Marketing; and Jim Murphy as Director of Fraud Management. These appointments will help D4t4 drive adoption of its Celebrus product suites in the US, a key growth market for the Group. Mark Krebs joins D4t4 with more than 20 years in executive-level sales, business development, and operations roles, with experience building companies and taking products to market. In his new position, Mark will focus on managing and driving growth across the Americas by expanding and securing new business, supporting key partnerships, and managing key accounts, among other duties. Tiffany Staples is recognised in her field as a marketing leader. She most recently served as Chief Marketing Officer of relocation management software company UrbanBound, where she successfully implemented a robust lead generation strategy while navigating the company through the COVID-19 pandemic. At D4t4, Tiffany will oversee marketing operations and develop the Group’s global marketing strategy, including lead generation, branding, digital and traditional marketing, events, and public relations. Jim Murphy is a certified fraud expert with a Master’s degree in Economic Crime Management and more than 20 years of anti-fraud work with organisations including Equifax, IBM and MetLife, where he has been instrumental in creating as well as vetting fraud technologies.

Deltex Medical 1.38p £8.1m (DEMG.L)

The global leader in oesophageal Doppler monitoring, has received an order from a key distributor in the Americas of US$200m for the current generation TrueVue monitors. This order will also result in attractive on-going contracted monthly revenues for the single-use probes, which are used with these devices. Over the past eighteen months Deltex and its distributor have been working in-market to gain regulatory approval for the current TrueVue monitor and to validate its use within the hospital systems. Initially the distributor purchased five monitors to carry out in-hospital evaluations and these trials proved successful leading to the TrueVue technology being chosen to fulfil the initial government tender in that market. As a result, Deltex has now received an initial order for monitors to fulfil government-awarded contracts, with installation expected over the next nine months. Further monitor orders are expected later this year once more tenders are awarded. This contract win reflects the broader growth achieved during 2021 by the Group’s international division. Whilst direct sales in the UK and US markets have been significantly adversely affected by COVID-19, the Group has re-focused its commercial activities on territories where, in collaboration with its network of distributors, it has been able to obtain regular access to operating rooms. This has enabled Deltex it to demonstrate the value and utility of its technology for elective surgery and in intensive care. In 2021, the international division’s revenues grew by more than 30% (2021 revenues: £0.83m 2020: £0.6m). This growth in revenues helps to demonstrate the success that Deltex Medical can achieve when it is able to access hospitals, and in particular operating rooms, to carry out on-site training and evaluations.

Dianomi 395p £118.6m (DNM.L)

The provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announced a trading update for the year ended 31 December 2021. The Group experienced strong revenue growth of over 25% compared to 2020, in line with market expectations. Adjusted EBITDA is expected to be slightly ahead of market expectations. Unaudited cash at the year-end was £10.3m (30 June 2021: £7.9m). Demand from both advertisers and publishers has been strong and the second six months of the year saw further new advertisers and publishers ‘go live’ on Dianomi’s platform, as well as growth within the existing publisher and advertiser base. In 2021, the Group also saw significant growth in both its video and lifestyle segments; video revenue grew almost 150% year over year and lifestyle revenue amounted to over £1.5m from a standing start. Whilst both are relatively new income streams, and represent a small proportion of overall revenues, there is significant further potential.

Empire Metals 1.3p £4.8m (EEE.L)

Empire Metals has agreed Heads of Terms to enter into a Tribute Agreement with Maher Mining Contractors Pty Ltd, giving Empire the right to explore, develop and mine within a granted area on Maher Mining’s 100% owned mining lease M27/158 (Gindalbie Gold Project), located near historic gold mining town of Gindalbie, and adjacent to Empire’s Eclipse Gold Project. Tribute Agreement would increase Empire’s mineralised footprint around its flagship Eclipse Project by over 200% to a total of 943ha. The Gindalbie Gold Project (the granted area contained within mining lease M27/158) sits adjacent to the eastern border of the Eclipse licence area and will extend the current area for exploration targets a further 2km along the Eclipse lodes trend, plus 1km to the north and 3km to the south. The granted area covers 643ha of highly prospective ground containing a number of historical mines located along a series of northwest-southeast striking mineralised trends. The main trend containing the Eclipse and Jack’s Dream deposits aligns with several of the old workings to the south including the Golden Puzzle, and Bulletin mines. Three other, sub-parallel north-west – south-east striking trends have been identified which combined with the Eclipse trend provides an exploration target extending over a strike length of 8 km. The licence area has been subject to significant exploration in the past, with a number of significant gold intercepts from historical RAB and RC drilling, plus extensive soils and geochemistry surveys. The cost to enter into the Tribute Agreement is A$250k for an initial 6-month exploration term. An additional A$250k is payable if Empire elects to extend the exploration period by a further 18 months. Minimum expenditure commitments during the two stages of exploration are A$250k for each period.

First Property Group 31.5p £34.8m (FPO.L)

The property fund manager and investor, announced the appointment of Ben Kerrison as Sustainability Manager. Ben joins the Company from Jones Lang LaSalle (JLL) where he was the Net Zero Carbon technical lead within JLL Upstream Sustainability Services. He brings with him a depth of experience including positions at Bureau Veritas, where he was embedded in Barclays’ Corporate Real Estate Solutions Environment Team, and as the Sustainability Specialist for EDF Energy Nuclear New Build.

Katoro Gold 0.77p £3.6m (KAT.L)

The gold and nickel exploration and development company, updated the market on the Haneti Project diamond drill programme, in which the Company holds 65% ownership interest with 35% held by Power Metal Resources plc (LON: POW). Following the Company’s announcement on the 11th January 2022, Katoro can now confirm that the drill rig has successfully been deployed and drilling on the 1000-meter programme has now commenced. The map highlighting the locations for the drill programme can be found on slide 11 on the following link: https://katorogold.com/wp-content/uploads/2021/05/HANETI-Pres-21_v2.0_040521-1.pdf .

Revolution Beauty 108.5p £339.2m (REVB.L)

The multi-brand, multi-category and multi-channel mass beauty innovator with proven global scale, announced an update on Christmas trading for the period from 1 November 2021 through to 31 December 2021. Strong Christmas Sales; In line with expectations, revenues over the peak Christmas trading period increased 41% year-on-year on an underlying basis. This was achieved despite a volatile consumer backdrop with many of the markets going into lockdown. USA Retailer Expansion; confirmation of roll out into over 2800 Walgreens’ stores in Q1 FY23 (with pipefill in Q4 FY22) and the launch of the Haircare category. Revolution Beauty’s Haircare product, Plex, will roll out into 870 Target stores towards the end of this month. The successful expansion into the US demonstrates Revolution Beauty’s ability to challenge the mass beauty category globally, with large high-profile listings. Makeup Revolution Launches in Boots; The Masterbrand of Makeup Revolution commences its launch into Boots stores on 21 February rolling out into the top 336 Boots stores across the UK. This will see Revolution Beauty sell its products across four categories (Cosmetics, Skincare, Haircare and Gifting) within the UK’s leading Health and Beauty Retailer. Direct to Consumer Division; Revolutionbeauty.com grew sales by 50% year-on-year for the month of December with returning visitors to the website increasing by 23% year-on-year. As predicted at Interim Results in November, Revolution Beauty’s Christmas Advent Calendar sold out on RB.com, selling over 100k units. The three localised websites in the UK, Australia and USA delivered encouraging results across the new categories of Haircare and Fragrance.

XP Factory 31p £45.26m (XPF.L)

One of the UK’s pre-eminent experiential leisure businesses operating under the Escape Hunt and Boom Battle Bar brands, updated on the half year to December 2021. £5.1m revenue delivered from owner-operated Escape Hunt sites in H2 (133% ahead of H2 2019). Escape Hunt site level EBITDA expected to exceed £2m in H2 (340% ahead of H2 2019). Positive Group EBITDA (excluding R&D credits) expected to be delivered in H2 with underlying Group EBITDA expected to be ahead of City expectations. £1.5m R&D grant (net of fees) received in January 2022. Completion of the acquisition of Boom Battle Bar on 23 November 2021. Number of new openings on track for both Escape Hunt and Boom Battle Bar.

Zephyr Energy 5.2p £67.1m (ZPHR.L)

Equity fundraise of £12m at 5p and US$28m senior debt facility to complete the acquisition of non-operated production assets and associated CAPEX in the Williston Basin; £1.2m broker option to enable existing Shareholders to participate in the equity fundraise; Proceeds will be used for the following operational purposes: To fully fund the US$36m Acquisition. The Acquisition will add a net 2.764m barrels of oil equivalent (mmboe) of Proven Reserves, and includes a growing production stream of approximately 1,105 barrels of oil equivalent per day (boepd) net to the Assets in December 2021. To fund an estimated US$6m in near-term drilling capital expenditure which, along with anticipated additional cash flow generated in the coming months, will accelerate drilling and production growth across Zephyr’s asset portfolio. To equip the Company’s State 16-2 well for production, and to fund development of the surface infrastructure required to enable the sale of gas via the nearby pipeline and/or to a potential 2-megawatt cryptocurrency mining facility development to be co-located on the well site.

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