Small Cap Feast

Small Cap Feast – 29/09/21

Dish of the Day:

Peel Hunt (PEEL.L) has joined AIM, a leading UK mid and small-cap specialist investment bank operating across three divisions: Investment Banking, Research & Distribution and Execution & Trading. The main country of operation of the group is the UK. In FY21 the Group continued its strong performance momentum, generating revenues of £196.8m, up from £95.5m in the previous year. Size of offer £112m, of which £40m was new shares and the balance was selling shareholders. Market cap on listing £280m.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m in the Initial Placing. Due 18 Oct.
Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct
Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October.
Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.
Responsible Housing REIT to join the Main Market (Premium) raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.
Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. Total offer £85.4m. Primary £15m. Mkt cap £180.6m. Due 30 Sep.
Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.
Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.
Oxford Nanopore Tech—to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for £150m of a total raise of circa £300m. Due early Oct.
Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.
Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.
Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

Breakfast Buffet

Alpha FX Group 2,010p £823.1m (AFX.L)

Alpha FX Group plc, a provider of FX risk management and alternative banking solutions to corporates and institutions internationally, today announces the launch of its alternative banking platform for the alternative investment sector. As part of this launch, the Group intends to open an office in Luxembourg to show its commitment to the local market, which represents a significant opportunity for the alternative investment banking solution. This follows a lengthy and highly successful ‘private launch’ of the platform within Alpha’s existing client base. This provided the Group with the time to gather user insights and develop further enhancements as it worked towards launching ‘Version 2’ of the platform, released in May 2021.

Anglo Asian Mining 135p £154m (AAZ.L)

Anglo Asian Mining, a gold, copper and silver producer operating in Azerbaijan has signed ‘Heads of Terms’ with the Government of Azerbaijan, which awards the Company three new concessions with a combined area of 882 square kilometres. Two of the new concessions border the existing Gedabek and Gosha Contract Areas. They contain the large-scale Garadagh porphyry deposit and the adjacent Xarxar copper deposit and assessment of these valuable assets will start immediately. A comprehensive exploration programme to prepare JORC compliant mineral resource and ore reserve estimates will commence after ratification of the new concessions. Development will follow the finalisation of the ore reserve estimates and the Company anticipates ore will be extracted by open pit mining. The third new concession area is called Demirli and is adjacent to the Kyzlbulag Contract Area in the Karabakh economic region. The Demirli concession contains the Demirli copper-molybdenum deposit. As part of the Agreement, the Company will relinquish its rights to the Soutely mine in the Kalbajar district. This follows the Company’s assessment of Soutely’s security risks and the significant capital expenditure required to develop the mine over the longer timeframe. However, the Company is in discussion with the Government to obtain alternative exploration territory in the Kalbajar district.

Cadence Minerals 18.25p £27.1m (KDNC.L)

Cadence Minerals announces that Castillo Copper (ASX/LON: CCZ) (Castillo) has entered into a 90-day option agreement with Lithium Technologies Pty Ltd and Lithium Supplies Pty Ltd in whichCadence owns a 29% shareholding, to acquire subject to due diligence the Litchfield and Picasso Lithium Projects in the Northern Territory and Western Australia respectively. Consideration for 100% of the holding companies which hold these assets (plus others) is up to AUS$3m in equity of Castillo. Cadence CEO Kiran Morzaria added: “The potential acquisition by Castillo provides Cadence with an exposure to developing copper assets which complements our already substantial lithium portfolio. Moreover, given Castillo’s established in country leadership and cash position we see this potential acquisition by Castillo as the best strategic approach to maximize returns for our shareholders. We look forward to seeing Castillo develop these assets further.”

Gfinity 4.05p £44.4m (GFIN.L)

Gfinity, a world-leading esports and gaming solutions provider, today announces it has entered into a commercial agreement with Coca-Cola Hellenic Bottling Company as the tournament operator for its upcoming Coca-Cola COPA Challenge, presented by The Coca Cola Company. The Coca-Cola COPA Challenge (https://www.coca-colacopa.com/ie) is a new competitive gaming tournament launched by Coca-Cola HBC and presented by The Coca Cola Company, which will see gaming influencers compete against one another at the prominent Football Manager title. Football Manager is the highly popular football management simulation game developed by British developer Sports Interactive and published by SEGA. The month-long tournament will run throughout October consisting of 8 shows broadcast digitally. Under the terms of the agreement, Gfinity will be responsible for the full operation of the tournament from the design stage through to launch and broadcast delivery. In addition, Gfinity also announces today it has been appointed by ASK4 as the tournament operator for the company’s sponsored FIFA 22 tournament for students in purpose-built student accommodation. The tournament will run week commencing 20th November 2021. ASK4 is a specialist Internet service provider, delivering superfast connections to students and residents in multi-tenant buildings throughout the UK and Europe. Gfinity will be responsible for the full operation of the tournament.

ImmuPharma 7.26p £19.3m (IMM.L)

The specialist drug discovery and development company announces interim results for the six months ended 30 June 2021. Financial highlights include: Cash balance of £4.2m as at 30 June 2021 (31 December 2020: £5.9m); loss for the period of £3.7m (30 June 2020: £3m); research and development expenses of £1.3m (30 June 2020: £0.9m). Lupuzor™ (P140) is entering a pharmacokinetic study prior to the optimised Phase 3 study in lupus in conjunction with its licensing partner, Avion Pharmaceuticals. P140 for Chronic Inflammatory Demyelinating Polyneuropathy, a neurological disorder targeting the body’s nerves is in active preparation for a phase 2/3 clinical study has now been initiated. New Board established: Tim McCarthy appointed as Chief Executive Officer, Dr Tim Franklin appointed as Chief Operating Officer and Dr Sanjeev Pandya & Lisa Baderoon appointed as NED’s.

Mirada 65p £5.9m (MIRA.L)

A leading provider of integrated software solutions for digital TV operators and broadcasters announces its final results for the year ended 31 March 2021. Highlights include: revenue of $11.13m (2020: $13.16m ), in line with market expectations; gross profit of $10.84m (2020: $12.48m); a net loss for continuing activities of $2.99m (2020: loss of $1.11m); and net debt at 31 March 2021 of $7.07m (2020: $5.05m). José-Luis Vázquez, CEO of Mirada, commented: “The past year has been challenging in many ways, but we emerge from it a stronger business with a powerful product offering that puts us at the forefront of the latest market trends; impressive references; a leaner, more efficient sales strategy; and a growing proportion of recurring revenues. We have ambitious plans to drive the business forward in the coming months and I look forward to keeping shareholders updated.”

Mosman Oil and Gas 0.1525p £5.7m (MSMN.L)

The oil exploration, development, and production company announces an update on the Winters-2 well in Polk County, Texas. Further to the announcement made on 21 September, Mosman confirms the equipment to drill the well has started to arrive onsite. Spud is expected in the next few days and the drilling is scheduled to take 7-10 days. A further update will be made upon completion of drilling.

Sareum Holdings* 6.7p £230.6m (SAR.L)

The specialist drug development company, notes that Sierra Oncology, the licence holder for SRA737 (a novel Chk1 inhibitor where Sareum stands to receive 27.5% of the economics of a license agreement which comprise aggregate outstanding milestones of up to $290.0m plus royalties), presented at 21.00 BST on 28 September at the 2021 Cantor Virtual Global Healthcare Conference in a Fireside Chat. During this conference and included in a slide of recent and upcoming milestones, Sierra Oncology’s CEO, Stephen Dilly, referred to the initiation of additional clinical studies with pipeline agents including SRA737 in other haematologic and solid tumour indications in the first half of 2022. Specifically, reference was made to a potential role for SRA737 in combination studies in solid tumours, including pancreatic cancer, where patients have become resistant to PARP inhibitors. Sareum’s CEO, Dr Tim Mitchell, commented : “This timeline for the possible initiation of combination studies by Sierra including SRA737 in the first half of 2022 is very encouraging and would represent a significant advance in the development of the SRA737 programme. We look forward to further updates on the clinical development of SRA737, a molecule that has shown great promise in clinical trials and preclinical studies, particularly in combination with other types of cancer therapy.”

Head Chef:

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

*A corporate client of Hybridan LLP

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