Small Cap Feast

Small Cap Feast – 27th May 2022

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What’s Cooking in the IPO Kitchen?

According to news reports, The Very Group, is looking to float after calling off their plan for a £4bn IPO last year due to a volatile market. The ecommerce group is owned by the Barclays family. According to the Sunday Times, the retailer has offered incentives to senior leaders at the firm for pulling off a flotation, which the Barclays family now hope to get underway in mid-2023.
Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due 30th May 2022.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Breakfast Buffet

4D Pharma 33.77p £60.9m (DDDD.L)

A pharmaceutical company leading the development of Live Biotherapeutic products (LBPs), a novel class of drug derived from the microbiome, today announced the presentation of a trial in progress poster from the Phase II clinical trial of MRx0518 in combination with BAVENCIO® (avelumab), a PD-L1 blocking antibody, as a first-line maintenance therapy for patients with unresectable locally advanced or metastatic urothelial carcinoma that has not progressed with first-line platinum-containing chemotherapy, at the 2022 American Society of Clinical Oncology Annual Meeting in Chicago, IL. The study is being conducted in collaboration with Merck KGaA, Darmstadt, Germany and Pfizer Inc.

Aura Energy 11.25p £56.8m (AURA.L)

Aura Energy Limited (ASX:AEE, AIM:AURA), a company focused on the development of the 85% owned Tiris Uranium Project in Mauritania, announces that a diamond drill rig has been mobilised to Tiris from Nouakchott, to commence the 10,000 metre infill drilling program, with results expected in Q4 FY2022. The diamond drilling will generate large diameter (PQ) core in approximately 60 holes to validate the downhole radiometric logging results that the resource estimate will be based on, and will provide density data throughout the deposit. As announced on 20 January, Aura’s 2022 resource upgrade program will include further drilling, seeking to upgrade more of the Company’s 56 Mlb resource from Inferred to Measured and Indicated, and to identify further exploration targets within the tenure. The program is designed to expand what is already one of the lowest capex and lowest operating cost uranium projects in the world.

Big Technologies 286.5p £830.7m (BIG.L)

Big Technologies plc, the UK-based, remote people monitoring technology company, will hold its first AGM in London today. At the meeting, Simon Collins, Chairman, will make the following statement for the four months ended April 2022.“Following our initial public offering in July 2021, I am pleased to report that the team at Big Technologies has adjusted well to life as a listed business and we are confident in the future prospects for the Group. Our customers, suppliers, employees and shareholders have all benefitted from our listing, which brings increased disclosure, scale, financial strength and flexibility.” “In the four months ending April 2022, we have recorded unaudited consolidated revenue of £13.9m, an increase of 18% versus the same period in 2021. Monthly Recurring Revenue in April 2022 was £3.9m and net cash as at 30 April 2022 increased to £52.6m. These positive trends lead the Board to remain confident in the Group’s ability to deliver results at least in line with current market expectations”. “Our business has a clear strategy and strong values which underpin everything that we do. Our systems are trusted the world over to make a tangible difference to people’s lives and we look forward to the next few years with confidence.”

Bushveld Minerals 9.25p £117.1m (BMN.L)

The AIM-listed, integrated primary vanadium producer which owns high-grade vanadium assets in South Africa, announces the appointment of David Noko as an independent non-executive director to the Board of Directors, concurrent with this appointment, the Company also announces the retirement of Anthony Viljoen from the Board. David has years of experience both as an executive and more recently as board member on several prominent companies, including, Royal Bafokeng Platinum Limited, Harmony Gold Mining Company Limited, AstraPak Pty Ltd and Platistone Holdings (Pty) Ltd. He is currently a Non-Executive Director at inter alia African Rainbow Minerals and Tongaat Hulett, as well as being a Lead Advisor at his consultancy company, ESG Advisory Ltd. He is also the Chairman of the Council of the University of the Free State. David’s career included senior roles at General Electric Company, Pepsi Cola International, South African Breweries (Pty) Ltd, De Beers Group and most recently held the position of Executive Vice President at AngloGold Ashanti.

Gemfields 16.15p £118.1m (GEM.L)

Gemfields announces the results of a record-breaking emerald auction comprising a series of five sequential mini-auctions held during the period 9 – 26 May 2022. The auction contained a selection of grades that are typically offered at Kagem Mining Ltd’s (Kagem) auctions of higher quality emeralds as well as one special piece. The auction lots were made available for in-person and private viewings by customers in Bangkok, Thailand. Following the viewings, the bidding took place via an online auction platform which permitted customers from multiple jurisdictions to participate in a sealed-bid process. Highlights include: Total revenues of USD $43.3m, an all-time record for Kagem auctions; All 38 lots offered were sold (100%); Average price of USD 155.90 per carat, an all-time record for Kagem auctions; 100% of the carats offered were sold; The 41 auctions of Kagem gemstones held since July 2009 have generated USD 835.3m in total revenues.

Hummingbird Resources 13.25p £52.2m (HUM.L)

Announces its audited financial results for the year ended 31 December 2021. Financial results: Sales of US$156.6m (2020: US$181.7m) were generated from 87,553 oz of gold sold in 2021 at an average price of US$1,788/oz (2020: 104,174 oz sold at an average price of $1,745/oz), with additional US$6.2m (2020: US$3.4m) revenue generated from sale of SMO gold. EBITDA of US$28.2m (2020: US$75.2m). Adjusted EBITDA of US$18.6m (2020: US$62.3m). Diluted loss per share of US$ 2.78 cents (2020: earnings per share of US$ 5.02 cents). Total bank debt of US$61.8m with US$13.2m capital repaid in the year. Net debt of US$21.0m (2020: net cash $1.5m). Operational Results: 87,558 oz of gold poured in 2021 (2020 : 101,069 oz). All in Sustaining Cost of US$ 1,536 /oz in 2021 (2020 : US$1,147/oz). Total Recordable Injury Frequency Rate of 0.59 (2020: 0.82). Company Reserves increased to c.1.12m ounces in 2021, a 438,600 oz increase to the previous Company reserve statement in October 2019 of 672,000 oz. Completion of c.68.000 metre drilling programme in 2021 at both Yanfolila, Mali and Kouroussa, Guinea.

In The Style 87.5p £45.9m (ITS.L)

In The Style is proud to announce that it has raised half a million pounds in aid of The Bowelbabe Fund for Cancer Research UK. The funds have been raised through the sale of the Dame Deborah James ‘Rebellious Hope’ t-shirt, the first item to be unveiled to customers from In The Style’s Dame Deborah James collection, as well as from the sale of products within the full collection during the evening of its launch on Thursday. The collection comprises 18 products and is available in sizes 6-28. It includes dresses, skirts, blazers, shirts and blouses, t-shirts and hair accessories, with each and every piece perfectly encapsulating the British summertime and activities that Dame Deborah loves. In The Style would like to extend its thanks to logistics partners Evri and Mandarin Global Logistics for their support with reduction on delivery costs, to increase the amount paid to The Bowelbabe Fund.

Kibo Energy* 0.165p £5m (KIBO.L)

The renewable energy focused development company, announces the termination of its intended acquisition of the Victoria Falls Solar Park project in Zimbabwe from Broomfield International Limited. Kibo has concluded its due diligence investigation on the Project, the findings of which were not completely to the satisfaction of Kibo, with certain aspects of the Project requiring some further development work over a short period of time and in other instances, Broomfield not being able to provide certain material information with regards to the Project to Kibo’s satisfaction. In light of the discussions relating to the Transaction being terminated, Kibo’s restoration to trading, and commencement of dealings, on AIM and the AltX of the JSE of the Company’s existing Ordinary Shares will become effective at 7.30 a.m. and 9.00am today respectively. Kibo will now focus its attention and efforts on its existing and new sustainable and renewable energy projects, most notably its Waste-to-Energy project in South Africa which is progressing to financial close, and its new Long Duration Energy Storage solutions project to deploy 1 Gigawatt over the course of the 5-year term in partnership with CellCube. Furthermore, Kibo is in the process of examining the conversion of its existing energy projects in Tanzania, Botswana and Mozambique to clean / renewable energy projects.

Phoenix Global Resources 3.97p £110.6m (PGR.L)

The upstream oil and gas company announces its audited final results for the year ended 31 December 2021. Highlights include: Revenue of US$78.4m (2020: US$54m). Adjusted EBITDA US$13.1m (2020: Adjusted EBITDA loss of US$7.2m). Cash generated from operations US$49.6m (2020: cash used in operations US$6.3m). Operating loss of US$58.7m (2020: loss of US$219.7m). Average daily sales in 2021 of 4,425 beopd (2020: 3,776 boepd). 2P reserves at 54.0MMboe (2020: 18.8MMboe). Chairman, Sir Michael Rake commented: “Argentina continues to experience high inflation and a continuous devaluation of the Peso. The country is in its fourth straight year of recession. Whilst agreement has been reached between the Argentine government and the IMF to restructure the country’s US$45bn of debt, the underlying economic indicators are not encouraging. Notwithstanding, the current administration continues its intent to provide economic and regulatory support to four key sectors of the economy: agriculture; oil and gas; mining; and intellectual services.”

XL Media 30p £78.1m (XLM.L)

A leading global digital performance publisher, announces the appointment of David King as Chief Executive Officer and as a member of the Board of Directors. He is expected to join the Group on 1 July 2022. Stuart Simms, the Company’s existing CEO, announced his intention to step down on April 4 2022 and will leave the Company following a period supporting an orderly handover with David. David joins the Company having held a number of senior Executive roles in companies across the media sector, most recently as CEO at JPIMedia Group, where he led the business through a period of considerable change. This included leading the digital acceleration programme, incorporating a data led strategy to drive audience growth and build new digital revenue streams. David also oversaw an ongoing rationalisation programme, growth of ‘the i’ newspaper and the sale of the group in three stages. David brings extensive leadership and financial expertise. Before entering local media, David was appointed Time Out’s first CEO and before that was CFO of BBC Worldwide for nine years. In his early career David spent six years as a Management Consultant at PwC, working with a number of blue-chip clients. He is a qualified Chartered Accountant.

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Emily Liu, CFA, CAIA
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