Small Cap Feast

Small Cap Feast – 29/03/2021

Dish of the Day:

ActiveOps (AOM.L), a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices has joined AIM. Raising £75.7m for selling shareholders at 168p. Mkt cap £119.8m. For FY20, the Group grew SaaS revenues by 21 per cent. to £16.2m (of which 13 per cent. was organic growth) (£13.4m for FY19). Total Group revenues grew 13.5 per cent. to £20.4m (£18.0m for FY19). The Group continues to invest in its product offering, with all R&D costs fully expensed to the Group’s profit and loss account.

Off the Menu:

No Leavers Today

What’s Cooking in the IPO Kitchen?

MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23 million. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.
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 £1.5bn 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.
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 £7.6bn and £8.8bn. Raising c. £1bn. Due 7 April

Breakfast Buffet

Critical Metals 17.5p £7m (CRTM.L)

Critical Metals plc, an investment company established to target opportunities in the mining sector, announced interim results for the six-month period ended 31st December 2020.
· Listed on the Main Market of the London Stock Exchange in September 2020, following an £0.8m fundraising
· Engaged in early stage discussions regarding potential future transactions
· Strand Hanson Limited appointed as Corporate Advisor to guide the Company through the investment/acquisition process in respect of potential targets
· Post period end, further support received from shareholders exercising warrants, strengthening the Company’s cash position by c.£935,000 in preparation for future opportunities

Zephyr Energy 2.25p £16.2m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development, announced a placing and subscription at a price of 2.0 pence per Placing Share, to raise £10m before expenses. The Placing has been supported by a range of new and existing institutional investors, family offices, Zephyr Board members and other investors. The proceeds from the Placing will be invested with the objective of transforming the Company into a self-sustaining platform for organic growth with a diverse portfolio of production assets in two established USA oil producing basins.
The Placing will fully fund the $3.5m State 16-2 CC LN appraisal well drilling programme targeting the Company’s first production from its Paradox project .
· The Placing also allows the Company to proceed with the proposed acquisition, and to fund associated capital expenditure , of highly economic working interests in currently producing and near-term production wells in the Bakken Formation, North Dakota, USA.
Production from the Acquisition will provide the Company with immediate oil production and the substantial cashflows expected to be generated from the Bakken project have the potential to fund multiple additional Paradox wells over the next 12 months. The Company will also be able to utilise its historical tax losses of more than $16m to offset federal income taxes due on profits from the Acquisition.

Cerillion 445p £131m (CER.L)

The billing, charging and customer relationship management software solutions provider, has secured its largest contract win to date, with a 10-year agreement worth a total of $18.4m, signed with a full-service network operator in Latin America. This contract, together with a smaller £2.7m extension recently secured with an existing customer in Europe, is anticipated to result in the Company exceeding current management expectations for pre-tax profit in the current financial year ending 30 September 2021.

Keras Resources 0.115p £7.23m (KRS.L)

Update on progress at the Diamond Creek high-grade direct shipping ore (DSO), organic phosphate mine in Utah, USA owned by the Company’s 51% subsidiary, Falcon Isle Holdings LLC.
Encouraging results from the Falcon Isle marketing campaign over the winter period which has reinforced management’s confidence that 2021 sales targets will be met.
COVID-19 travel restrictions, which prevented the plant manufacturer’s engineer to be on site during construction, has slowed the construction timeline and the new Diamond Creek processing plant will now be commissioned in Q2 2021.· Due to the significant demand for both milled and granulated product Falcon Isle has extended its third-party toll treating agreements to ensure that product is available during the final stage of the plant construction.
The increase in run-of-mine production during the 2020 mining campaign has ensured that there is sufficient plant feed until mining resumes in the Spring. · Once installed the increased plant capacity and the expected associated economies of scale will reduce the unit cost and bolster margins going forward.

Destiny Pharma 197.5p £118.2m (DEST.L).

Destiny Pharma Reports Positive Phase 2b Results for XF-73 Nasal Gel
Primary endpoint achieved with >99% nasal bacterial load reduction (p<0.0001)
Excellent safety profile. No treatment related adverse events
There is a global need for better treatments such as XF-73 which has been awarded Qualifying Infectious Disease Product (QIDP) and Fast Track status by the US FDA. Destiny Pharma now plans to discuss possible Phase 3 clinical study designs with regulatory bodies including the US FDA. The Company believes that there is a significant commercial opportunity for XF-73 in the hospital setting which could generate peak annual product sales of up to $1bn in the US alone.

Cadence Minerals 20.25p £30m (KDNC.L)

DEV Mineraço S.A’s (DEV) has commenced the shipment of the iron ore stockpiles from Santana, Amapa, Brazil. This shipment was approved via a court petition and represents the first shipment of Iron Ore from this asset since its closure in 2015.
· The first shipment of 45,000 tonnes of iron ore from the Amapa Iron Ore Project has commenced, · The vessel is currently loading and is due to sail this week
· Iron Ore 62% Fe, CFR China at US$167.05 per tonne (26/02/2021), · Approximately 1.39Mt of iron ore currently stockpiled as DEV’s wholly-owned port, · Operations are continuing in Brazil to prepare for the next shipment.

Haydale Graphene 6.65p £28.3m (HAYD.L)

The advanced materials group, has partnered with 401 Tech Bridge, Rhode Island, US, to provide a HT200 Plasma Reactor and advanced materials support for their innovation ecosystem, supporting economic growth.
The HT200 Plasma Reactor will be utilised in the 401 Tech Bridge Advanced Materials and Technology Center, managed by the University of Rhode Island (URI), to support material commercialisation efforts of Graphene Composites and other local composites and textiles-based businesses. This adds to 401 Tech Bridge’s capability supporting its ambition to accelerate the adoption of new materials and support companies’ efforts in developing products that will change the world.

Okyo Pharma 8p £54m (OKYO.L)

The life sciences and biotechnology company focused on the discovery and development of novel molecules to treat inflammatory dry eye diseases and ocular pain, announces that it has appointed Dr Rajkumar Patil as Chief Scientific Officer.
Dr Patil brings 30 years of ophthalmic and pharmaceutical R&D experience. Dr Patil worked with Ora Inc, as Vice President of Research & Development, where he was responsible for driving all anterior and posterior segment research of Ora’s R&D Institute. During 2013-2018, he worked at iVeena Delivery Systems as Vice President of Advanced Ocular Delivery Systems. His term at iVeena included a two-year sabbatical in Singapore, where he served as an Associate Professor of Ophthalmology at DUKE/NUS Medical School and Principal Investigator at Singapore Eye Research Institute.

Abingdon Health 90p £86m (ABDX.L)

The UK-RTC (Rapid Test Consortium) announced that the AbC-19™ rapid neutralising antibody test is being deployed in Phase 2 of the UK Biobank Coronavirus self-test antibody study.
The study will provide researchers with unique opportunities to investigate the long-term health effects of SARS-CoV-2 infection (“long COVID”) and other health research related to COVID-19. The AbC-19™ Rapid Test is being utilised in Phase 2 of the study, which initiated in March 2021. Further details of the study can be found on the UK BioBank website.
Participants will be sent the AbC-19™ test as part of a finger-prick home-testing kit that is simple and quick to do, returning results within 20 minutes. The results can then be submitted via the UK Biobank website. The test results and questionnaire data provided by participants will be incorporated into the UK Biobank resource and made available to approved researchers for vital COVID-19 research.
The AbC-19™ Rapid Test is a single use test for the detection of neutralising IgG antibodies to the full trimeric spike protein of the SARS-CoV-2 virus. The test has been developed by the UK Rapid Test Consortium (UK-RTC) of which Abingdon Health is the lead member.

ADM Energy* 3.9p £4.8m (ADME.L)

The natural resources investing company, will host an investor conference call, via webcast, on Wednesday, March 2021 at 12:00 BST. The Company’s CEO, Osamede Okhomina, will lead the call and give a presentation on ADM’s recent investment in the development of the Barracuda Oil Field, Nigeria, as announced on 23 March 2021. Mr. Okhomina will also answer questions from investors in a Q&A session. The Company will only use publicly available information for the call.
The investor call is open to all existing and potential shareholders. Interested parties can register their interest and pre-submit questions at the following link:
Participants are invited to submit questions in advance by 12:00 BST on 30 March 2021.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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