Small Cap Feast

Small Cap Feast – 9th September 2022

Dish of the Day:

No joiners today

Off the Menu:

ScotGems Plc has left the Main Market

What’s Cooking in the IPO Kitchen?

Critical Metals plc, a company established to acquire mining opportunities in the critical and strategic metals sector, is to be re-admitted onto the Main Market under the ticker “CRTM”, following the proposed acquisition of a 57% interest in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project located in the Democratic Republic of Congo. Conditionally raised £1.8m. Expected 12th September.
Aurrigo Group plc, a international provider of transport technology solutions, intends to join AIM. The Group designs, engineers, manufactures and supplies OEM products and autonomous vehicles to the automotive, aviation and transport industries. Capital to be raised and Mkt Cap TBC. Expected Mid-September.
Scythian Mining, a clean gold explorer and developer with operations in Kazakhstan, intends to IPO on the London Stock Exchange in mid-2023, due to successful drilling at Kokkus. Scythian is negotiating an additional funding agreement with a US investor for a further 15,000m of drilling to increase the Kokkus resource with a target of 2-3m oz Au plus a PFS before the IPO.
Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.
Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.
Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.

Breakfast Buffet

Amur Minerals 1.34p £18.6m (AMC.L)

The nickel copper sulphide mineral exploration company focused on the far east of Russia announces its unaudited half-year results for the period ending 30 June 2022. Operating loss was US$1.7m, compared with $1.1m in 1H21. Cash balance was US$5.3m. On 8 August 2022, Amur announced its agreement to sell its indirect subsidiary Kun-Manie for an aggregate consideration of US$35m. The buyer is Bering Metals LLC, a Russian company controlled by Vladislav Sviblov. Following receipt of the consideration of US$35m, Amur intends to pay a special dividend of 1.8p per share, within 90 days of the transaction completion. Meanwhile, the company is seeking to acquire another business.

90 Holdings 4.63p £12.3m (B90.L)

The online marketing and operating company for the gaming industry, announces that it has raised £305k (before expenses) through a subscription for 7.625m new ordinary shares at a price of 4p per share, at a discount of approximately 3.3% to the volume weighted average price for the 5 trading days up to and including 8 September 2022. The subscription Shares represent 2.9% of the Company’s existing issued share capital. The net proceeds will be utilised for working capital and marketing activities.

Coro Energy 0.30p £6.4m (CORO.L)

The Southeast Asian energy company with a natural gas and clean energy portfolio, provides an update on Mako Gas Project. The partners in the Duyung PSC have approved an updated Plan of Development (PoD) and have approved and secured alignment with SKKMIGAS on the PoD. The PoD now been submitted to the Indonesian Ministry of Energy and Mineral Resources for approval. The Operator of the Duyung PSC is WNEL, a 100%-owned subsidiary of Conrad Asia Energy Ltd, who hold a 76.5% interest in the Duyung PSC. Coro hold 15%. Empyrean Energy plc hold 8.5%.

Creo Medical Group 68p £123.4m (CREO.L)

The medical device company focused on surgical endoscopy, announces its unaudited results for the six-month period ended 30 June 2022. Revenue was £13.6m, up 5.4% from £12.9m in H1 2021. Underlying EBITDA loss (with R&D tax credits added back) was £11.9m. Cash and cash equivalents was £26.1m and interest bearing liabilities increased to £10.5m at 30 June 2022. Growth in Creo core technology and Kamaptive revenues, gross margin in non-core products and cost control will support the continued reduction in underlying operating loss for 2H 2022.

Great Western Mining 0.13p £4.8m (GWMO.L)

The explorer and developer of gold, silver and copper targets in Nevada, announce the assay results from summer 2022 drill campaign at the Mineral Jackpot and Rock House prospects in the Walker-Lane trend. Four holes were the first ever drilled in this historic group of mines at the Mineral Jackpot and Hole 4 encountered a significant silver intercept with associated gold at very shallow depth. Three holes drilled to follow up successful 2021 programme at the Rock House and there was reportable gold intercepts near to surface. New copper zone was also identified.

Hardide 19p £10.6m (HDD.L)

The developer and provider of advanced surface coating technology, announces its intention to raise gross proceeds of approximately £0.5m through (i) a placing of new ordinary shares via book-building and (ii) a subscription for new ordinary shares by certain directors for an aggregate amount of £0.2m. The fundraising will satisfy the near-term cash requirements. However, further working capital will be required given the challenging business environment and the outstanding cash payment from a significant customer.

London Security £29.00 £355.6m (LSC.L)

The company engaged in the manufacture, sale, and rental of protection equipment announces its unaudited interim results for the six months ended 30 June 2022. Revenue increased by 7.1% to £88.6m but operating profit decreased by 11.4% to £10.9m year-on-year, due to worldwide supply chain disruption, energy and wage inflation. Net cash balance as at 30 June 2022 was £27m, compared with £27.6m on 31 December 2021. During the period, London Security made four acquisitions on the continent and will continue to seek acquisition opportunities across Europe. The company believes that with a healthy balance sheet, it is well placed to cope with any economic downturn.

Marwyn Acquisition 1.8p £11.7m (MACP.L)

The investment company announces its results for the year ended 30 June 2022. Loss after taxation £0.4m (FY21: £0.7m) and net cash balance was £4.8m (FY: £5.2m), with no debts. The Directors believe that the recent decline in certain sector valuations is likely to continue over the short term due to macroeconomic and geopolitical uncertainty, and as a result may provide opportunities for attractively priced assets. The strategy is to acquire platform trading assets in the industrials, manufacturing, engineering, construction, building products or support services sectors.

Manolete Partners 214p £93.6m (MANO.L)

The insolvency litigation financing firm announces that it has received a rare adverse decision in the High Court on one of its larger cases and as a result, the Board has decided to write down the full value of the case for the six months ended 30 September 2022 (FY23 interim results). The impact will be a reduction of £2.3m in pre-tax profits and the cash costs paid out on this case to date are £637k. In addition, due to the challenges in the UK macro-economic climate, the Board has taken a more prudent view of the valuation of the Company’s c.280 ongoing litigation case investments. In conclusion, the company expects to announce a pre-tax loss of c.£5m in the FY23 interim results, the large majority of which will be due to the adjustment of unrealised revenues and unrealised profits.

XP Factory 12.8p £19.2m (XPF.L)

The experiential leisure business operating the Escape Hunt™ and Boom Battle Bar™ brands, announces the acquisition of 100% of Boom Battle Bar Cardiff Limited in Cardiff for an enterprise value of £2.15m. The unaudited net assets of Boom Cardiff as at 30 June 2022 were £240k. Meanwhile, XP Factory’s unaudited half-year results to 30 June 2022 are expected to show revenue in excess of £8m, compared to £1.2m in 1H 2021. Despite the macro-economic backdrop, trading in the UK since 30 June 2022 in both Boom and Escape Hunt sites has been encouraging.

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Emily Liu, CFA, CAIA
0203 764 2344
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