Small Cap Feast

Small Cap Feast – 17 November 2021

Dish of the Day:

Joiners

Technology Minerals (TM1.L), a company focused on creating a sustainable circular economy for battery metals, has joined the Official List by way of a ‎Standard Listing.  The Company has successfully raised gross proceeds of approximately £1.5m at 2.25 pence per share. The placing follows on from a pre-IPO fundraise in which the Company raised approximately £5m. On Admission, the Company will have a market capitalisation of the Company of just under £27.3m.

 

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Leavers

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What’s Cooking in the IPO Kitchen?

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa.  The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021.  Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website).
The Company does not intend to raise any capital prior to or concurrent with admission to AIM.  The market capitalisation on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on Admission: £92.0m.  Due 22 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

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.

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 December.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

Life Science REIT to join AIM  raising up to £300m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due 19 Nov.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

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. Q4 2021.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the 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. Due Mid Nov. Offer TBC.

Breakfast Buffet

Alumasc Group 242.5p £87.6m (ALU.L)

The Alumasc Group plc, manufacturer and supplier of sustainable building products, systems and solutions, has received London Stock Exchange’s Green Economy Mark.   The Alumasc Group plc provides high-quality, low carbon, sustainable building products, systems and solutions which help manage the scarce resources of energy and water in the built environment and improve quality of life for the owner/occupier. Paul Hooper, CEO of The Alumasc Group plc, said: “We are delighted to have received London Stock Exchange’s Green Economy Mark, recognising Alumasc’s contribution to the global green economy. Our business uses sustainable materials to address the challenges of climate change on the built environment.  Around 80% of Group sales are derived from products which improve building energy efficiency, manage urban water drainage, and improve urban biodiversity and access to green spaces. The Mark will support us in communicating our green credentials to investors and other stakeholders, highlighting our efforts to support the transition to a net zero economy.”

Bidstack 2.3p £21.5m (BIDS.L)

The native in-game advertising group announced the addition of three new and exclusive titles from Dovetail Games, the award winning developer and publisher of market leading simulation entertainment software, based in Kent, UK, to its portfolio of simulation games. Their simulation games that faithfully recreate real world situations, which are available across PC and Console, are played in key markets including the UK, USA and Germany and bring digital hobbies to life for passionate enthusiasts in more than 100 countries around the globe. The new partnership will see Bidstack deliver seamless branded experiences into these virtual environments and create a new revenue stream for Dovetail Games while respecting the player experience by maintaining the authenticity of their titles. The three titles Train Simulator 2022 , Train Sim World 2 and Bassmaster Fishing 2022, are ideal environments to host non-intrusive in-game ads as they feature natural spaces and surfaces where players would expect to see advertising in their daily lives such as on train liveries, platform billboards and around competitive fishing competitions, reflecting the real-world experience.

Bradda Head 8.7p £25.5m (BHL.L)

Bradda Head has completed its core drilling programme at its Burro Creek East asset in Arizona. ·The first of Bradda’s fast-track drilling programmes at its 47kmof sedimentary claims has been completed, all remaining core has now been logged, delivered to ALS in Tucson, and will shortly be assayed. Bradda has drilled 10 holes (7 new locations and 3 twinned) for a total of 1,145m metres. Originally 5 twinned holes were planned, but the Company decided to focus on resource expansion after receiving positive assays from the first three twinned holes. The 7 new holes have allowed them to test more of the unknown areas of the asset and, combined with recent geophysical data, have enabled their geologists to increase the knowledge of the deposit significantly. Assay results received so far from the 3 twinned holes on this project (RNS 27/9/2021) have confirmed the 2018 programme’s results and have indicated the presence of expected but previously unknown mineralised material in the Lower Clay zone as well as expanded Upper Clay zone material at the Burro Creek East asset. Recent geophysical work at the Burro Creek East asset has added to Bradda’s geological model and will be included in the updated resource calculation (due Q1 2022) which is expected to be a significantly larger than the current 185kt LCE JORC inferred resource. Assay turnaround times have been slow in returning due to the very high volume of exploration in the US.

Camellia 6,625p £183m (CAM.L)

Following its announcement on 2 August 2021 of an 80% stake in Bardsley England,  the UK’s second largest apple supplier,  Camellia Plc, the global agriculture group, announces the purchase of the remaining 20% stake in Bardsley England for a consideration of £1.7m from Bardsley Limited.  As part of the purchase, Bardsley England has sold an existing loan with a face value of approximately £1.1m to Bardsley Limited resulting in net cash outflow from Camellia of approximately £0.6m. The harvest this year has been disappointing due to adverse weather conditions and the business has also been impacted by weaker than expected customer demand.  However, the long-term fundamentals of the business remain strong and various initiatives are in progress to improve its performance and profitability.

Chariot 8.15p  £51.9m (CHAR.L)

The Africa focused transitional energy company, has signed binding key terms of a long-term joint development partnership, with Total Eren, a leading France-based renewable energy Independent Power Producer. The agreed terms will set out the relationship between the Partners from 1 January 2022 for the joint origination and development of wind and solar projects for mining clients in Africa. Partnership for three years, with the option to extend for a further two years. Chariot will have a right to invest between 15-49% into the co-developed projects. The Partners also have ambitions to collaborate on other non-mining energy projects and transactions in Africa.

Corero Network Security 10p £49.5m (CNS.L)

The provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) cyber defense solutions has recently secured a number of significant customer orders totalling over $4m since the half year in the Hosting Provider market segment. These recent wins continue to build upon Corero’s established expertise in protecting customer infrastructure from DDoS attacks, using world class technology and multi-terabit deployments. Revenues associated with these orders will be recognised over the course of the lifetime of each of the contracts.

First Property Group 31.75p £35m (FPO.L)

As previously disclosed, the fund life of The UK Pension Property Portfolio LP  a closed-ended commercial property investment fund managed by the Group, was due to end on 5 February 2022. Terms have now been agreed with two of the Partners in UK PPP for the sale/ purchase of their interests in it and for the Fund’s life to be extended by some five years to 13 January 2027. The price for the Limited Partnership interests being sold/ purchased, representing 56.6% of the Fund, amounts to £36.75m.  £32.25m  of the Price is being paid by Fprop UK Special Opportunities LP (Spec Opps), a Fprop managed fund, and will result in it owning 49.7% of UK PPP. The consideration payable by Spec Opps is split between an amount of £21.5m up-front and an amount of £10.75m deferred until 31 March 2022. The deferred element will be funded by the sale of properties by UK PPP. Some £22m of property sales would be required to fully fund this element. The remainder of the Price is being paid by another investor.

 

Kingswood Holdings 28.5p £61.8m (KWG.L)

Agreement to acquire the business assets of Smythe and Walter, a financial planning business based in Faversham, Kent. The transaction boosts Kingswood’s UK client facing advisory team to 71 people and increases UK funds under advice/management to 4.7bn from circa  9,300 active clients. Kingswood Group AuA now totals over 6.4bn from global retail and institutional clients. Following completion, £420K will be paid immediately and up to £420k will be payable on a deferred basis over the following two years, subject to the achievement of pre-agreed performance targets. The acquisition will be funded from cash recently received by Kingswood from the issue of new convertible preference shares, under the terms of its Convertible Preference Share subscription agreement with HSQ INVESTMENT LIMITED, a wholly owned indirect subsidiary of funds managed and/or advised by Pollen Street Capital Limited.

Mirada 70p £6.23m (MIRA.L)

The provider of integrated software solutions for digital TV services, announces its strategic collaboration with US-based Shift 2 Stream, Inc. Based in Atlanta, Georgia, USA, Shift 2 Stream empowers rural, regional, small and mid-size internet service providers and cable operators to deliver cost-effective application-based TV services to their residential and business subscribers.  Shift 2 Stream currently services the United States, Canada and the Caribbean, where it has built a large network of partners and a strong market position with its broad experience deploying game changing video solutions. As a result of this collaboration, Shift 2 Stream will become an official reseller of Mirada’s products and services through the integration of Mirada’s Iris technology into its new Opt2Me solution. Opt2Me is the first fully end-to-end hybrid cloud TV-as-a-service platform optimised for rural and regional ISPs and cable operators wanting to add pay TV and video streaming services.

Tyman 398.5p £782m (TYMN.L)

The  international supplier of engineered components and access solutions to the construction industry, provides an update on trading for the period from 1 January 2021 to 31 October 2021. The positive trading momentum has continued into the second half of 2021, with the International division performing particularly strongly, largely mitigating the widely publicised supply chain constraints that have impacted North America and the UK during the period. As indicated at the time of the interim results in July, strong market demand and market share gains have continued despite global supply chain challenges, notably material and labour availability, as well as global freight disruption. The Group now expects that full year adjusted operating profit will be marginally below consensus. Group revenue increased by 12% to £529m on a reported basis and by 19% on a like-for-like (LFL) basis for the ten months to 31 October 2021 compared with the corresponding period in 2020, which was impacted by operational shutdowns and reduced demand due to COVID-19. Compared to the corresponding period in 2019, LFL revenue was 8% higher.

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