Small Cap Feast

Small Cap Feast – 6th April 2022

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What’s Cooking in the IPO Kitchen?

Financials Acquisition Corp, a special purpose acquisition company (SPAC) intends to float on the LSE. Financials Acquisition Corp has been formed for the purpose of completing an initial merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with a technology-enabled company or business operating principally in the insurance or broader financial services industry. The Company has a global geographic focus, but specific attention will be paid to those companies and businesses operating in the UK and across Europe. Capital to be raised £150m.
First Tin plc, a tin development company with advanced, low capex projects in Germany and Australia, intends to list on the Main Market. First Tin is led by an experienced team of tin specialists, committed to the environmentally sensitive and low carbon development of advanced hard rock tin projects in conflict free, low political risk jurisdictions. The Company has raised £20m to execute its plan to bring its two 100% owned tin mines into production before the end of 2025 so that it can provide provenance of supply to support the current global clean energy and technological revolutions. Expected 8 April 2022.
Anglesey Mining, a UK mining company currently listed on the Main Market (Premium) intends to move to AIM. Anglesey’s principal asset is a 100% interest in the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales. Anglesey is currently exploring and developing the property, which has a high potential for the discovery of additional mineral resources through the development of a new, modern mine in an environmentally sustainable manner. Anticipated Mkt Cap TBC, current capitalisation c£8m. Expected 8 April 2022.
Cordiant Global Agricultural Income plc intends to float on the Main Market (Premium). The Company’s investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector. The Company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions. The Company will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit. Targeting gross proceeds of US$300m. Expected 12 April 2022.
Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC.

Breakfast Buffet

AfriTin Mining 9.5p £106.6m (ATM.L)

The African tech-metals mining company with a portfolio of mining and exploration assets in Namibia, announced the release of its five-year growth strategy. The Company aims to enlarge its footprint in Namibia by expanding existing operations and adding mining locations both in country and across Africa. In addition, revenue streams for multiple technology metals concentrates will be developed, expanding the current tin production to include lithium, tantalum and tungsten. Link to full pdf version with images on website. Uis Mine (Mining Licence ML 134): Current mining operation at Uis Mine is producing 850 tpa of tin concentrate; Continued expansion of current operation aims to increase tin concentrate production up to 2,800 tpa; in addition, lithium concentrate production of 60,000 tpa and tantalum concentrate production of 45 tpa will commence; Phase 2 feasibility studies for larger-scale 10 Mtpa ROM operation underway; Exploration drilling campaign in progress, with the aim of expanding the existing JORC (2012) tin mineral resource from 71.54 Mt to a figure of 200 Mt of resource containing tin, lithium and tantalum. B1/C1 (Mining Licence ML 129): 15km from Uis, Exploration programme in progress to confirm historical tin and tantalum resource, and investigate recent spodumene (lithium) discovery (announced 2 March 2022); and Brandberg West (Exploration Licence EPL 5445): 107km from Uis, Aggressive exploration programme underway at the site of the historic tin and tungsten mining operation, aiming to confirm the historical drilling database with a view to fast-tracking production.

Ariana Resources 4p £43.9m (AAU.L)

The mineral exploration and development company with gold mining interests in Europe announced an update to the mine development programme underway at Tavsan. The project is operated by Zenit Madencilik San. ve Tic. A.S. in partnership with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana: Tavsan gold and silver mine targeting production of up to 30,000 oz of gold per annum over eight years. Over 3,900m of resource drilling completed at Tavsan between December 2021 and March 2022. Land acquisition and access process has been completed; forestry permits applications remain in process with the Government. Discussions regarding debt financing of the required construction capital are continuing between Zenit and potential lenders. Ariana will be conducting a new mapping and exploration programme across Tavsan in the next few months, aiming to identify new zones of mineralisation.

Cerillion 755p £222.6m (CER.L)

The billing, charging and customer relationship management software solutions provider, announced that its technology has enabled MVN-X, South Africa’s leading telecommunications enabler and part of Ignition Group, one of Africa’s largest providers of technology, media, telecommunication and financial services, to reach 1m subscribers across its portfolio of customers. MVN-X supports 18 South African mobile virtual network operators (MVNOs), including Standard Chartered Bank, Mr Price and Pick n Pay, and other leading brands, retailers and corporates, providing them with critical infrastructure, operating systems and support services. MVN-X implemented Cerillion’s Convergent Charging System and Enterprise Product Catalogue modules, from the Company’s Enterprise BSS/OSS suite, in order to dramatically reduce the complexity of onboarding and launching new customers, and to streamline operations. Cerillion’s technology has enabled MVN-X to compete head-to-head with the most innovative of mobile network operators, and MVN-X is also now providing greater mobile coverage and choice for its customers.

Chariot 20.4p £153.6m (CHAR.L)

Further to the Company’s announcement on 27 September 2021, relating to the green hydrogen project in Mauritania, Chariot (AIM: CHAR), the Africa focused transitional energy company has signed a Memorandum of Understanding with the Port of Rotterdam International, a global energy hub and Europe’s largest seaport which handles a significant portion of Europe’s total energy demand. The MoU represents a first step towards establishing supply chains to import green hydrogen and ammonia to meet expected demand in the Netherlands and other countries in Northwest Europe. The two parties will work together to connect with off-takers and secure contracts for specific volumes. René van der Plas, Director of Port of Rotterdam International, stated: “We are excited to be teaming up with Chariot, to help with the distribution element of their green hydrogen project in Mauritania. The project could turn Mauritania into a leading supplier of green hydrogen to Europe, making it one of the largest energy projects of its kind in the world.”

FD Technologies 2,390p £665m (FDP.L)

FD Technologies provides a trading update for the financial year ending 28 February 2022 in advance of full year results expected to be announced on 10 May 2022. The Group expects to achieve its revenue and adjusted EBITDA guidance for the year. Delivery of the accelerated growth strategy announced in May 2021 remains on track, enabling KX to achieve its target of 25% growth in exit Annual Recurring Revenue, driven by increasing take-up of the KX Insights platform. Combined with the recent announcement of our strategic partnership with Microsoft means we have entered the new financial year in a position to build on this momentum. Seamus Keating, CEO, commented: “I am pleased with our financial performance and the execution of our accelerated growth strategy in what was a year of transformation for the Group. I’m excited by the opportunities across our business as we win new customers and continue to develop our offering to drive value, performance and returns.” FD Technologies is a group of data-driven businesses that unlock the value of insight, hindsight and foresight to drive organisations forward. The Group comprises KX, the leading technology for real-time continuous intelligence; First Derivative, which provides technology-led services in capital markets; and MRP, the only enterprise-class, predictive Accounts Based Marketing solution. FD Technologies operates from 15 offices across Europe, North America and Asia Pacific, and employs more than 3,000 people worldwide.

Gaming Realms 29p £84.7m (GMR.L)

The developer and licensor of mobile focused gaming content, officially launched its content in the Canadian province of Ontario on the first day its regulated gaming market opened on 4th April 2022. 7 games from Gaming Realms’ Slingo portfolio are now live in Ontario with Rush Street Interactive (BetRivers), Kindred and BetMGM. The Company expects that more of its content will be certified very soon and has agreements to go live with several other leading operators. Michael Buckley, Executive Chairman of Gaming Realms, commented: “We have been looking forward to launching in Ontario once the market opened, and we are delighted that our content is now live in what will be one of the biggest markets for Gaming Realms in North America.”

Inland Homes 43p £99.3m (INL.L)

Inland Homes plc, the brownfield developer, housebuilder and regeneration specialist focused on the South and South East of England, today announces the completion of two land sales: at the former Telephone Exchange in Staines and Phase 3 Gardiners Park Village, Basildon. The proceeds generated from the disposal of these assets will be used to drive a further reduction in the Group’s net debt, a strategic priority for the business. The sale of the former Telephone Exchange on Elmsleigh Road in Staines is to a private housebuilder. The Group achieved planning consent for 206 homes on the site in January 2022. The Staines scheme, which has an estimated gross development value (GDV) of £65m, is part of Inland Homes’ asset management division in which the Group identifies sites on behalf of investors and uses its extensive land and planning expertise to secure planning approval on their behalf. This is a high-growth arm of the Group which generates substantial service revenues with significantly reduced investment and capital consumption. The sale of Phase 3 at Gardiners Park Village, Basildon, which comprises 74 units, is also to a private housebuilder and has an estimated GDV of £27.5m.

One Heritage Group*45p £14.6m (OHG.L)

The UK-based residential developer focused on the North of England, yesterday announced that it had signed a development management agreement with One Heritage Great Ducie Street Limited in relation to a proposed residential development on land located between Great Ducie Street and Mirable Street. The Site comprises two parcels of land with an existing building on one parcel that will be demolished. It is located close to One Heritage Tower, a scheme where One Heritage has an existing development management agreement. The Site will be developed into 129 self-contained apartments across two buildings, 1 of 10 storeys on Mirable Street, the other a stepped 10 to 14 storey building on Great Ducie Street. There will also be two ground floor commercial units. The Site is expected to have a gross development value of circa £37.4m and due to complete in Q3 2024. The Agreement is a related party transaction as the Site is being acquired by a subsidiary of One Heritage Property Development Limited, which is the majority shareholder in the Company. Mr Yiu Tak (Peter) Cheung is a director of the Company and OHPD. The Company’s advisory fees for the development management of the Site are agreed at: 2% development management fee based on the total development costs and paid over the expected development period; 15% of the net profit generated at completion; and, 1% of any external debt funding raised.

Sosandar 28.5p £63.1m (SOS.L)

The online women’s fashion brand, provided a trading update for its financial year ended 31 March 2022. Following its record performance in Q3 FY22, the Company delivered its second consecutive EBITDA positive quarter in Q4 FY22 with very strong trading across all channels. As a result of this successful trading period, it now anticipates reporting revenue and EBITDA for the full year ended 31 March 2022 ahead of recently upgraded market expectations. The Company expects to report revenue in excess of £29m, up 138% year on year. EBITDA loss reduced by over 80% from a loss of £2.92m in FY21 (six consecutive EBITDA positive months in H2 FY22). Ever increasing engagement with loyal customer base through Sosandar.com: Number of orders increased 84%. Repeat orders increased 93%. Conversion rate increased to 3.9% from 3.1%. Average order frequency increased by 10% to 2.28 times per annum. Average order value of £90.39, up 9% from £82.70 in the prior year. Gross margin rose to 56% (from 48.0% in the covid impacted prior year). Ongoing investment in inventory following the equity fundraise in May 2021 executed to plan. Net cash in excess of £7m as at 31 March 2022 (FY21: £3.9m).

Xtract Resources 6.32p £53.5m (XTR.L)

Three further drill holes completed in the area between Racecourse and Ascot on the Bushranger copper-gold porphyry exploration project. Three further drill holes have been completed on the project which offer the potential to extend the Ascot mineralised zone 250m along-strike to the north. Drill hole BRDD-22-044 was the most southerly of the three, drilled directly east and intersected a wide zone of variable strength visible chalcopyrite mineralisation that shows similar characteristics to drill hole BRDD-21-035 drilled at Ascot. Drill holes BRDD-22-045 and BRDD-22-046 were drilled from the same location towards the northeast, and both holes intersected strongly altered volcanics with inclusions of variable strength visible chalcopyrite mineralisation, giving the opportunity to extend the mineralisation further north again.

Head Chef:

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

*A corporate client of Hybridan LLP

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