Small Cap Feast

Small Cap Feast – 29/04/2021

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What’s Cooking in the IPO Kitchen?

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Aquis Stock Exchange Growth Market (Access Segment). Admission on AQSE is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.
Glantus Holdings, a provider of accounts payable automation and analytics solutions, is considering a listing on the AIM market of the LSE. It is focusing on three product areas; Active AP Discovery, Intelligent AP Automation and Advanced AP Analytics, it utilises its internally developed data platform to offer an integrated solution for the finance function, accounts payable in particular. These solutions are offered to over 300 customers, more than 50 of which Glantus classifies as large enterprises. The Group headquarters is in Dublin, Ireland. The main office for EMEA operations is in Harpenden, England. The main office for US operations is in San Jose, California. The core product development team is based in Katowice, Poland with additional team members in a satellite office in Vilnius, Lithuania, and management support from the Dublin headquarters. Valuation, amount to raise, and timing TBC
East Star Resources plc, a company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset, has announced that the Prospectus dated 27 April 2021 has been approved by the FCA in connection with an application for admission onto the Official List by way of Standard Listing Rules. The Company intends to focus on opportunities in the natural resources sector. In connection with Admission, the Company will raise gross proceeds of £1.98m. Timing of Admission onto the Standard List TBC.
Alphawave IP Group is considering an IPO on the standard listing segment of the London Stock Exchange. Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing an equity value of up to USD 4.5b for the Group at Admission. During the year ended 31 December 2020, the Group generated revenue of USD 32.8m, exhibiting robust growth and delivering a CAGR of 161 per cent. since the year ended 31 May 2018.
Watchstone Group plc (LON:WTG) intends to apply for admission of its Ordinary Shares to trading on the Access segment of the AQSE Growth Market operated by the Aquis Stock Exchange (AQSE). It is expected trading will commence on 30 April 2021.
Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager’s data science and machine learning strategy. Capital to be raised on Admission approximately £6.1m. Mkt cap c. £66.4m. Due 10 May.
Dispersion Holdings PLC, an investor in the high growth FinTech sector within the UK, the USA and Canada, has announced its intention to IPO on the Access Segment of the Aquis Stock Exchange Growth Market. The Board intends to deploy the majority of the Company’s cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad FinTech sector, and to apply expertise to the business operations and strategic plans of these companies. Target Admission Date of 30 April.
Darktrace plc. Intends to float on the main market of the London Stock Exchange (premium). Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security. Due early May.
Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”
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.

Breakfast Buffet

Europa Metals 11p £5.4m (EUZ.L)

Drilling Update Toral Zn, Pg & Ag Project, Spain. The objective of the most recent drilling campaign was to infill known gaps in the resource drilling pattern, around the current known Indicated resource between the 100 – 800 metre horizon of the Toral resource. Primary drill holes are now completed (TOD-028-029 and 030) with TOD-028 and TOD-029 assays sent to laboratories. Following a positive internal inspection of Drillhole TOD-029, 4 additional daughter holes have been drilled and completed (TOD-029 a-d) to further ore-sorting test work in the upper siliceous zone of the deposit and contribute to the Pre-Feasibility Study metallurgical review. Further ore sorting analysis of the upper zones of Toral will contribute to investigating how the potential first years of production can be developed.

Base Resources 15p £177m (BSE.L)

Quarterly update from the African focused, mineral sands producer and developer with a track record of project delivery and operational performance. Kwale Operations maintained operational consistency through the quarter with health and safety protocols in place to minimise the risk of COVID-19 to personnel and surrounding communities. Kwale Operations FY21 production guidance increased for both ilmenite and zircon. Ilmenite and rutile prices trended upwards in the quarter, with higher zircon prices secured for the June quarter. Kwale North Dune PFS completed, with a focused study on mining higher grade subsets of the North Dune and Bumamani deposits underway and due in mid-2021. Discussions with the Government of Madagascar on Toliara Project fiscal terms continue to progress. Half-year dividend of AUD3.0 cents per share paid. Outstanding US$25m balance of the revolving credit facility repaid, and facility retired early.

Verici DX 68p £96.4m (VRCI.L)

The developer of advanced clinical diagnostics for organ transplant, announces it has signed the lease for the premises intended to be the CLIA1-certified laboratory, situated at the Innovation Park2 in Franklin, Tennessee, US, which is within the Palmetto region for CMS Medicare governance. Palmetto GBA, LLC is one of the largest Medicare administration contractors in the US. In January 2021, the Company appointed David Schultenover to accelerate the CLIA approval process to enable faster commercial launch of Verici Dx’s lead products, ClaravaTM and TutevaTM and setting up these premises is the first step in that accelerated pathway. The Company requires a CLIA-certified laboratory to be able to offer their diagnostic products to clinicians as a laboratory developed test (LDT) and approvals are expected by the end of the year. The Center for Medicare and Medicaid Services (CMS) regulates laboratory testing in the US through the CLIA regime, which requires all clinical laboratories to be certified before they can accept human samples for diagnostic testing.

Mobile Streams 0.27p £5.8m (MOS.L)

The mobile content and data intelligence company, announced that by utilising both the Streams content platform and the previously announced investment by MOS, Quanta Media Group is preparing to launch its first three, direct to consumer, mobile content sites. These sites will be targeted at customers wishing to place sports bets and play online casino games in the Dutch language in The Netherlands once the regulated Dutch i-Gaming market opens on 1 October. Ed Simons, Non-Executive Chairman QMG, said: “Starting October 2021, The Dutch i-Gaming lead generation market is estimated to be worth in excess of EUR200m per annum. We are thrilled to be entering our first market with sites powered by Streams and look forward to capturing our percentage of market share. We also hope that other opportunities will come from our relationship with MOS.”

Star Phoenix 1.7p £2.6m (STA.L)

The company focused on growth through attractive opportunities, updated in relation to its activities with the following highlights: Advanced discussions are underway in relation to new projects; Specialist broker has been appointed to assist with the sale of the rig business; Lease agreement for one of the rigs has been signed and further are being secured to provide additional revenue whilst the rigs sale process is ongoing; Preparation for arbitration against LandOcean is ongoing with claims estimated in excess of US$10m; Work is continuing on progressing an arbitration claim against the government of Georgia, with an investment dispute exceeding US$22m; and Indonesia oil and gas interest to be relinquished.

Horizonte Minerals 8p £136m (HZM.L)

The nickel company focused in Brazil, has awarded the contract for the Environmental & Social Impact Assessment (ESIA) for the Company’s 100% owned nickel cobalt Vermelho project to Ramboll. Ramboll is a leading global consultancy firm with 300 offices worldwide, including Belo Horizonte. Ramboll’s Impact Assessment services are based on both commercial understanding and technical rigour to deliver projects that are advanced, sustainable and provide value to society. Horizonte has previously worked with Ramboll on the hydrology for its flagship Araguaia ferronickel project. Horizonte CEO, Jeremy Martin commented: “The appointment of Ramboll highlights our commitment to the highest standards of sustainability practices as we work to develop Vermelho. Vermelho is a tier one nickel-cobalt project that will come online to supply the rapidly growing EV battery market. The planned completion of Araguaia financing will enable Horizonte to expedite the development of Vermelho through feasibility and permitting.”

City Pub Group 125p £132m (CPC.L)

CPC has acquired a 49% stake in Barts Pub Ltd, owner of the iconic Kensington Park Hotel in Ladbroke Grove, for £0.75m. The KPH is a leasehold pub located 200 metres from Ladbroke Grove tube station. It has large trading areas on the ground and first floors, benefits from seven hotel letting rooms and has potential for a further four letting rooms on the top floor. Ladbroke Grove is a prime residential area in London and the Company trades very successfully at the Cock & Bottle, Notting Hill, which is located close by. The City Pub Group will operate the pub under a management contract and has an option to buy the freehold for £5.5m up until March 2024. Further it has increased its stake to 24% in certain companies within the Mosaic Pub and Dining Group, through the acquisition of existing shares in The Galaxy (City) Pub Company Limited, The Pioneer (City) Pub Company Limited and The Sovereign (City) Pub Company Limited for a total cash consideration of approximately £1.18m.

Appreciate 38.2p £71.2m (APP.L)

The UK’s leading multi-retailer redemption product provider to corporate and consumer markets, today provides an update on its full year performance for the year ended 31 March 2021. Results for the year are in line with market expectations. A resilient second half performance reflects strong Corporate demand, increased digital sales and previous restructuring actions, mitigating COVID impacts. This excludes c.£3.0m of non-recurring restructuring costs including the wind down of hamper production and the Republic of Ireland business, of which at least £0.6m is expected to be classified as exceptional costs. Year end free cash of £32.9m (excluding funds required to be held in trust) (2020: £29.6m). Total Group billings, including free school meals initiative, of £406.5m (2020: £419.9m)

Inspecs Group 404p £409m (SPEC.L)

The designer, manufacturer and distributor of eyewear frames, today announces a trading update for the three months to 31 March 2021 ahead of announcing Final Results on 18 June 2021. The Group delivered a strong trading performance in the first quarter with revenues of $67m. This performance was achieved despite nationwide lockdowns in the UK, Germany and France and a variety of state lockdowns in the USA. Whilst this performance marks a positive start to the year, the Board remains cautious on 2021 as COVID-19 remains prevalent across the world. The integration of Eschenbach Holdings continues progressing to plan and the benefits of the enlarged group working together are starting to be realised, with a number of joint projects underway. We look forward to driving further synergies and will provide a more detailed update on progress at the Group’s Final Results.

Arricano Real Estate 0.325p £33.6m (ARO.L)

Further to the announcement dated 9 April 2021, Arricano announces that the restrictions regarding customer access to Kyiv retail shopping centres, will expire on 1 May 2021. As a result, Arricano’s Prospekt and Rayon shopping centres will start trading normally. However, in Arricano’s City Mall centre, which is located in Zaporizhzhia, all outlets, apart from hypermarkets, pharmacies and some other essential stores, remain closed until further notice. A further announcement will be made when City Mall is allowed to re open fully.

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