Small Cap Feast

Small Cap Feast – 2nd February 2022

Dish of the Day:

Hiro Metaverse Acquisitions I S.A. (HMA1.L), a special purpose acquisition company sponsored by Hiro Sponsor I LLP, an affiliate of Hiro Capital, a videogames and metaverse technology venture capital fund, has joined the London Stock Exchange. HMAI raising through the listing. Founded by Luke Alvarez, Sir Ian Livingstone CBE, and Cherry Freeman, three senior leaders with an established track record of entrepreneurship and investment in the video gaming, digital sports and technology sectors, Hiro Capital invests in high-growth video games, esports, interactive streaming, gamified fitness and metaverse technology innovators. The founding team has an established track record of entrepreneurship and investment across video gaming, software and technology, having collectively co-founded and invested in over $9bn worth of companies in these sectors, from start-ups to IPO in London and New York.

Off the Menu:

No Leavers Today.

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.
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 approximately £52m, Capital to be raised £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 4 Feb. Anticipated Mkt Cap £29.6m. To be raised £4m primary and £4m secondary.
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.
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. Due Early Feb.
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 Feb.
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 Feb.
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. Delayed until second half of Q1 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 early Feb.
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. Delayed until Mid-Feb. Mkt Cap and Capital to be raised TBC.

Breakfast Buffet

AQRU 2.15p £26m (AQSE:AQRU)

The incubator specialising in decentralised finance (DeFi), announces that it has acquired Bison Exchange UAB, a blockchain technology company registered in Lithuania, for a cash consideration of EUR30k. Following the acquisition, Bison Exchange UAB changed its name to Accru Finance UAB as part of a broader streamlining process that included the Company changing its name from Dispersion Holdings plc to AQRU plc earlier this year and launching the new website. Kameliya Krasimirova Gankova has been appointed a Director of Accru Finance UAB and will oversee the Company’s activities in Lithuania. Accru Finance UAB is registered as a Virtual Asset Service Provider with the Financial Crime Investigation Services and supervised by the Central Bank of Lithuania. The company is fully entitled to provide virtual currency exchange and wallet custody operations. The Directors of AQRU believe that the acquisition will enable the Company to offer its consumer-facing DeFi platform and associated products in Lithuania, a hub of operations for businesses in the DeFi and cryptocurrency space, in a regulatory compliant manner. The acquisition will also bolster the Company’s regulatory footing in the European Economic Area.

Chamberlin 5.25p £3.7m (CMH.L)

The specialist castings and engineering group has conditionally raised £1.8m at 5p. The Placing Price represents a discount of 31 per cent. to the closing mid-market price of 7.25 pence per Ordinary Share on 1 February 2022 (being the last practicable date before the release of this announcement). As announced on 16 September 2021, the Company commenced a review of the use of its substantial property assets with the objective of strengthening the balance sheet and improving operational and investment returns from Group resources. This review continues and the Board remains focused on ensuring that the Group has the necessary resources to deliver on its growth strategy. The additional funds from the Placing and Subscription are expected to enable the Company to execute its strategy and will strengthen the Company’s balance sheet, giving it more flexibility to manage and achieve its optimum financial position. If the Placing and Subscription do not proceed, it will not be possible to pursue the Company’s strategy and the Board would be required to consider alternative options for the Company in the context of very limited resources.

DX Group SUSPENDED (DX..L)

The provider of delivery solutions, including parcel freight, secure courier and logistics services, updated on trading for the 26 weeks ending 1 January 2022, the first half of its current financial year. Trading over the period was in line with the Board’s expectations, despite the tight labour market and customers’ supply chain disruptions. Group revenue was approximately 11% ahead of the first half of the previous financial year, and momentum has continued into the third quarter of the financial year. DX Freight continued to improve its volumes and margins against the same period last year. Volumes at DX Express were consistent with the first half of last year, with the product mix showing a slight shift back towards its historic B2B weighting rather than B2C, following the easing of coronavirus restrictions. Net new business at both divisions continued to be robust and the pipeline of new business opportunities remains healthy. Network expansion plans progressed well in the period. Following the opening of four new depots and the expansion of a further depot in the first half, two new depots were opened in early January 2022, at Bodmin and Coventry, in line with plans. They will support productivity improvement at DX Freight. An additional five depots are scheduled to become operational in the second half of the financial year, supporting both DX Freight and DX Express activities. The Group’s financial position remains strong. Net cash at the period end totalled £14.5m (2 January 2021: £14.1m) and the £20m invoice discounting facility was undrawn, giving the Group significant levels of headroom.

Griffin Mining 87.5p £152.2m (GFM.L)

Griffin Mining Limited announced the resignation of Damien Houseman as General Manager Caijiaying Mine and that John Steel, the Mine Manager Caijiaying Mine, has been appointed the Chief Operating Officer of the Company with immediate effect. Damian will leave at the end of February to take up a new position more suitable to his personal circumstances and the Company thanks him for his past dedicated and loyal service and wishes him well in his future endeavours. John Steel is a graduate Mining Engineer from the Ballarat School of Mines and holds a Master of Business Administration from Deakin University. He is a member of the Australian Institute of Mining and Metallurgy. John has extensive global mining experience including over a decade of in site operational expertise with tier one companies in Australia, Canada (Xstrata Mining PLC) and the Middle East (Brarrick Gold Corporation). John also has extensive supplier side experience holding country Managing Director positions in Norway (EPC Groupe) as well as General Manger positions with several explosive and technology service providers within Australia.

Intercede Group 75p £42.9m (IGP.L)

The specialist in digital identities, credential management and secure mobility, has successfully won a competitive bid to supply a new customer, a prestigious independent US Federal Agency. The contract relates to the supply of Intercede’s MyID credential management software to deploy digital identities to mobile devices in the form of derived PIV credentials, compliant with US government security standard FIPS 201 and SP800-157. The solution leverages Intercede’s technology partnership with Microsoft, by delivering PKI credentials into Microsoft Intune managed smartphones enabling sensitive data protection and secure access to agency systems. A purchase order has been received for an initial 20,000 devices plus associated Professional Services and Support & Maintenance totalling $0.5m, the majority of which will be recognised as revenue in the current financial year. The deployment has the potential to rollout to substantially more devices over time.

Quartix Technologies 385p £186.26m (QTX.L)

The supplier of subscription-based vehicle tracking systems, software and services, has received London Stock Exchange’s Green Economy Mark. This classification, first introduced in 2019, was created to highlight companies and investment funds listed on all segments of London Stock Exchange’s Main Market and AIM that are driving the global green economy. To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from products and services that contribute to the global green economy. The underlying methodology incorporates the Green Revenues data model developed by FTSE Russell. It provides a detailed taxonomy of environmental goods, products and services, and is designed to recognise both pure-play green technology companies, as well as those across all industries that make significant contributions to the transition to a sustainable, low carbon economy.

Sabien Technology 27.5p £4m (SNT.L)

The Company focused on a Green Aggregation Strategy, announces today that it has entered into a Memorandum of Understanding with Irish Renewable Fuels Ltd., (IRF) in relation to a proposed reprocessing facility utilising the City Oil Field (COF) plastic to oil technology to be established in the Republic of Ireland. The key elements of the MoU are: Sabien acting as sales agent on behalf of COF in the Republic of Ireland; b.grn Group Ltd, in which Sabien holds a minority equity position, is also a party to the MOU and is expected to participate as a development partner in the potential project; The customer, IRF, has an existing site and buildings in the Irish Midlands where it plans to install COF equipment; The MOU anticipates a formal contract will be entered into within the next year 12 months of the date of the MOU.

Samarkand Group 127.5p £69.76m (AQSE:SMK)

The cross-border eCommerce technology solution provider, this morning provided a trading update based on recent trading conditions and the near-term outlook in its key market, China. Supplier-side challenges during the first half of the year had been largely mitigated by Q3 with revenue returning to strong growth as announced in the interim update on 16th December 2021. A number of externalities in the Chinese market will have a significant impact on the remainder of the financial year, a key trading period for the business. Due to current market conditions and an increased investment in our core technology revenue is expected to be lower and EBITDA loss higher for the current financial year. Despite short term volatility the Company do not see any structural challenges to the eCommerce market in China, which remains the biggest and most dynamic in the world. Response as remained positive demonstrated by the strategic investment by China’s largest logistics company SF Express and more recently with an alliance partnership with FedEx. This will see the Nomad Checkout solution integrated with the FedEx system, co-branded marketing efforts and promotion as the only cross-border eCommerce solution for China to their global client base. A healthy and growing pipeline of merchants is being built for the Nomad Checkout solution in Europe and Asia, and the first wave of enterprise clients will launch in Q1 2022. The fundamentals of the eCommerce acceleration business remain strong. The portfolio has been strengthened by the addition of Venture Life. The Company expect to update the market with material new client wins in due course. The owned brands continue to perform well, early performance of the recently acquired Zita West is growing revenues at a rate of 25% year over year.

Scirocco Energy 0.825p £6.4m (SCIR.L)

Operations update from the investing company targeting attractive assets within the European sustainable energy and circular economy markets. The Company recently supported Energy Acquisitions Group Ltd (EAG), the specialist acquisition and operating vehicle in the sustainable energy sector, to acquire its first cash generative anaerobic digestion asset, Greenan Generation Limited (GGL), in which Scirocco Energy holds a 50% interest. At current power price levels EBITDA for the first 12 months of EAG ownership is estimated to exceed £600k rather than the £470k guidance previously issued. Under the arrangement with SEM (announced by Scirocco in an RNS dated 9 December 2021) the Company and EAG gained exclusive access to a technical solution for the processing of digestate into a nutrient dense organic fertiliser. The EAG team is engaged in discussions regarding two merchant installations of the SEM equipment on third party AD plants. Operational activities under the Ruvuma PSA in Tanzania, where Scirocco Energy owns a legacy 25% working interest, have progressed under the supervision of operator, ARA Petroleum Tanzania. Seismic camp fully constructed, and the contractor Africa Geophysical Services Limited is completing the mobilisation of all necessary equipment to site due to be completed by mid-February. APT continue to progress with well planning for the CH-1 well with key contracting now being undertaken. The operator continues to target a Q3 spud.

Totally Plc 34.25p £62.4m (TLY.L)

Totally’s Urgent Care division has been awarded a two-year contract extension for the provision of GP services to NHS North West London CCG, worth circa £1.3m per annum. Under the terms of the Contract, Vocare Limited, which is part of Totally’s Urgent Care division, will provide GP-led primary care services for Initial Accommodation Centre service users located within 34 hotels in the London borough of Hillingdon and neighbouring boroughs. The Contract was initially awarded in February 2020 to meet the primary care needs of individuals seeking asylum in England who were located mainly within the Hillingdon Borough of London. During the Covid-19 pandemic, the contract scope was expanded to include support for new arrivals into UK local airports who exhibited symptoms of Covid-19. The extension will run from 1 April 2022 to 31 March 2024.

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