Small Cap Feast

Small Cap Feast – 6th January 2022

Dish of the Day:

Graft Polymer (GPL.L) has joined the Main Market (Standard). Graft Polymer is a UK incorporated holding company with an innovative research and manufacturing facility, based in Slovenia. The core business of the Group comprises polymer modification and drug delivery systems developments. Established in 2017, the Group has already introduced more than 50 products to the market. Graft Polymer has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing and reducing material consumption, in turn reducing costs. Approximate Mkt Cap on admission £22.4m. Capital raised approximately £5m.

Hydrogen Utopia International PLC (HUI) has joined the Access Segment of the Aquis Stock Exchange. HUI specialises in turning Non-Recyclable Mixed Waste Plastic into carbon-free fuels, new materials or distributed renewable heat. HUI’s activities will range across the full value chain, from the production of energy from Non-Recyclable Mixed Waste Plastic for local communities, to the sale of its products (Syngas, hydrogen, electricity and heat) to end customers. HUI’s initial strategic focus is to work closely with Powerhouse Energy Group PLC to create a project pipeline of HUI Facilities. Approximate Mkt Cap on admission £28.82m Capital raised £3m.

Off the Menu:

JKX Oil & Gas plc leaves the Main Market.

What’s Cooking in the IPO Kitchen?

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 Jan.

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 date Late Jan 2022.

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 mid Jan 2022.

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. Due late Jan 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 24th Jan 2022.

Breakfast Buffet

Advance Energy 3.7p £39m (ADV.L)

The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, provide an update on the Buffalo-10 well being drilled offshore Timor-Leste. Since the last announcement on 31 December 2021, the conductor has been installed and cemented in place, and the 17 ½” hole has been drilled down to planned section total depth of approximately 804 metres measured depth (MD). The rig is now setting and cementing the 13 3/8″ casing and installing the wellhead, before drilling ahead in the 12 ¼” hole section to approximately 2,800 metres MD and then setting the 9 5/8″ casing, after which the target Elang reservoir interval will be drilled and logged. No hydrocarbons are anticipated to be intersected in the 12 ¼” hole section of the well. The Buffalo-10 well is being drilled offshore Timor-Leste within the TL- SO T19-14 Production Sharing Contract in a water depth of approximately 30 metres with a target depth of approximately 3,500 metres.

Atalaya Mining 431.5p £601.3m (ATYM.L)

Atalaya Mining Plc (AIM:ATYM, TSX:AYM) announces that it has approved the construction of the first phase of an industrial-scale plant (Phase I) that utilises the E-LIX System, which will produce high value copper and zinc metals from the complex sulphide concentrates sourced from Proyecto Riotinto, unlocking significant value from Atalaya’s portfolio of polymetallic resources. It is expected to reduce Atalaya’s carbon footprint through a reduction in land and sea freight and by utilising power from Proyecto Riotinto’s planned solar plant. Phase I plant capacity has been designed to produce between 3,000 to 10,000 tonnes of copper or zinc metal per year depending on the ratio of copper to zinc in the concentrate feed. The estimated capex for Phase I is EUR 12m and the design allows for unlimited capacity expansion through the addition of multiple lines in parallel. Atalaya will start the construction of the plant in the coming weeks and it is expected that the plant will be operational in 2022, including commissioning.

BiVictriX Therapeutics 29.5p £19.5m (BVX.L)

An emerging biotechnology company applying a novel approach to develop next generation cancer therapies using insights derived from frontline clinical experience today announces that it has appointed Glyn Baker as Chief Financial Officer, in a non-board role. Glyn has worked in the biotechnology industry for around 20 years, initially as a financial and IT consultant before moving to various senior finance management roles. Most recently, Glyn has been involved in establishing a new Cambridge, UK based start-up in the neurodegenerative disease space. Prior to this, Glyn was Finance Director of drug discovery company Inflazome Ltd. In his role there, Glyn successfully managed a EUR40m Series B investment round and arranged a US$20m venture debt facility with Oxford Finance LLP based in Boston in the US. Before Glyn joined Inflazome he was the CFO of TwistDx Ltd. Ms Laura Brogden, the Company’s Financial Controller, will remain with BiVictriX for a period of three months to ensure an orderly handover of responsibilities to Glyn Baker.

Kefi Gold and Copper 0.791p £20.3m (KEFI.L)

The gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia announces an update to the Mineral Resource Estimate (MRE) at the Hawiah Copper-Gold Project part of the KEFI-operated Saudi Arabian joint-venture Gold and Minerals Limited (G&M). Highlights include: Hawiah Mineral Resource Estimate has increased by 5.6m tonnes to 24.9 Mt at 0.90% copper, 0.85% zinc, 0.62 g/t gold and 9.81 g/t silver, representing a tonnage increase of 29%. The total contained metal content now stands at 223,000 tonnes of copper (up 33%), 210,000 tonnes of zinc (up 34%), 497,000 ounces of gold (up 42%) and 7.8 million ounces of silver (up 22%). An upgrade in key areas from the previous Inferred category Mineral Resource with 10.9Mt now an Indicated category Mineral Resource at 0.96% copper, 0.86% zinc, 0.64 g/t gold and 9.98 g/t silver, paving the way for the completion of the Preliminary Feasibility Study in 2022. Total Mineral Resource (Indicated and Inferred) reporting to the Open-Pit Scenario have increased from 0.1 Mt to 8.4 Mt, raising the possibility of an initial open-pit mining operation and a lower start-up capital requirement. The Hawiah deposit remains largely open at depth and drilling programmes are commencing in January 2022 with a view to further increasing the Hawiah Mineral Resource, raising the likelihood of further increases to the MRE in 2022.

Lords Group Trading 121.5p £191m (LORD.L)

A leading distributor of building materials in the UK, announces that it has acquired Advance Roofing Supplies Limited, a supplier of roofing materials, for a consideration of £ 3.74m of which £3.49m has been paid on completion and the balance of £0.25m is payable twelve months after completion. As at completion, Advance Roofing Supplies had excess cash of £0.74m. In due course, Lords expect to expand the Advance Roofing Supplies brand via implant branches into relevant Merchanting locations, starting with the Beaconsfield site which itself is currently undergoing an extensive redevelopment to enable extended product range and capacity. For the year ended 31 March 2021, Advance Roofing Supplies generated EBITDA of £ 0.6m on revenues of £ 6.8m. The acquisition has been funded from Lords’ existing resources and is expected to be immediately earnings accretive post completion.

Pantheon Resources 80.65p £630.4m (PANR.L)

The AIM-quoted oil and gas company with a 100% working interest in a number of oil projects spanning c. 153,000 acres immediately adjacent to transportation and pipeline infrastructure on the Alaska North Slope (“ANS”), announces the following operations update. 2022 Drilling season objectives: to prove the resource at Theta West and the commercial potential of its discovered resources at its Talitha and Greater Alkaid projects. Pantheon has a 100% working interest in each of these projects. Pantheon is funded to execute the evaluation of these potentially large resources, currently estimated by management to contain a combined 17bn barrels of oil in place with an estimated recoverable volume of 2.2bn barrels of oil. The 2022 work programme will involve the testing of the multiple oil zones confirmed by Pantheon at Talitha #A; drilling a new well at Theta West – the ‘Theta West #1’ well; and drilling an appraisal/development well at Greater Alkaid, offsetting the Alkaid #1 discovery well.

SDX Energy 10.5p £20m (SDX.L)

The MENA-focused energy company announces the commencement of oil production at the MSD-21 infill development well on the Meseda field in its West Gharib concession, Egypt (SDX: 50% working interest). The well has now been successfully perforated, tied-in to the existing facilities, and flow tested. It is expected that, post-clean up, the well will achieve a stabilised gross production rate of c.300bbl/d which is in line with pre-drill estimates. MSD-21 is the first well in a fully-funded, 12-well development campaign at the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. The development drilling campaign is aiming to grow gross production from current rates of c.2,100bbl/d to c.3,500 – 4,000bbl/d by early 2023. The rig is now in the process of moving to the next well in the campaign, MSD-25, which is expected to spud by mid-January.

SRT Marine Systems 47.5p £69.8m (SRT.L)

A global provider of next generation integrated maritime domain and coastal surveillance and monitoring systems for national coast guards and fishery authorities announces that on Wednesday 5th January 2022 it received formal written notice of award for a new SRT-MDA ™ System project with a national coast guard. The formal contract signing is expected to be completed before the end of January. The award is for the first of three phases of a project worth a gross total of £40m. The phases are scheduled to be implemented serially, one after the other, over a total period of two years. The project will require the delivery, installation, commissioning, and support of a national scale SRT-MDA ™ System. It will enable the national authority to track, monitor and manage all maritime activity of any size and type in their territorial waters and EEZ in real time from multiple command centres across the country and provides a robust platform upon which additional capabilities can be added in the future to realise their ultimate objective.

Ten Entertainment Group 256.5p £168.1m (TEG.L)

A leading UK operator of 46 bowling and family entertainment centres today announces a trading update for the 52 weeks to 26 December 2021. Highlights include: 32.4% sales growth since May compared to FY19. Consistently strong like-for-like growth for FY21 of 29%. Total Group sales of £67m despite closure for 38% of the year. Record profit delivered in each month since June. First half lockdown losses offset to deliver a return to full-year profitability. Strong cash generation repays net bank debt to below pre-pandemic levels. A new-build centre in Walsall will open in H2 and a new centre acquisition has been agreed for H1. Expect to open at least four centres in FY22 with several in advanced stages of negotiation. Customer experience has improved with four major refurbishments in FY21 and seven planned for FY22. The Group plans to release its full-year results for FY21 on 29 March 2022.

Verici Dx 54p £75.8m (VRCI.L)

The developer of advanced clinical diagnostics for organ transplant announces that its two leading products have completed the testing requirements of the multi-centre validation study, in line with the Company’s expectations to have done so by the end of 2021. Reaching the clinical endpoints of the study means that, for both products, sufficient numbers of participants have completed the required follow-up to outcomes assessment, including biopsy findings, which are required for the full data analysis and clinical study report to be conducted in Q1 2022, as per the Company’s targets. The potential to inform earlier clinical interventions with treatments such as anti-fibrotic therapies ahead of irreversible organ damage is another key step to improving transplant outcomes.

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