Small Cap Feast

10th November 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:

Neo Energy Metals (previously Stranger Holdings plc) joined the Official List of the London Stock Exchange yesterday via a Standard Listing on the Main Market. As part of a reverse take-over process, the Company raised £4.9m. The market capitalisation was c.£15m upon Admission.

No leavers today.

What’s Cooking In The IPO Kitchen?

Tekcapital announced intention to spin off and IPO on 2 October: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.

Breakfast Buffet

Argentex Group 62.3p £70.5m (AGFX.L)
The service led, tech enabled provider of currency management and payment services to international institutions and corporates, announces that the Board expects the revenue and operating profit for the year ending 31 December 2023 to be below current market forecasts and at approximately the same levels as for the year ended 31 December 2022. The Board is disappointed to have seen similar financial numbers year on year but Argentex continues to be a stable, profitable and cash generative business.

Challenger Energy Group 0.063p £6.6m (CEG.L)
The Caribbean and Americas focused oil and gas company, with a range of oil production, development, appraisal, and exploration, advises that consistent with the terms of the short-term bridge loan (as per announcement of 27 October 2023), part of the proceeds from the sale of the Cory Moruga licence have been applied to repayment of the bridge loan. Consequently, the short-term bridge loan has been fully discharged resulting in the Company becoming debt-free.

Dekel Agri Vision 2.15p £12m (DKL.L)
The West African agriculture company focused on sustainable and diversified projects, provides an October 2023 monthly production update for its Ayenouan palm oil project in Côte d'Ivoire (Palm Oil Operation). The Palm Oil Operation recorded increases in Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) production of 2.8% and 14.5% respectively. Early guidance for November 2023 shows CPO production is likely to be materially higher than prior year. CPO sales prices in October decreased from EUR822 per tonne last month to EUR788 per tonne. The CPO extraction rate was relatively low at 19.4%; however, early November extraction rates have materially increased over the past 10 days together with CPO production volumes.

Goldplat 6.25p £10.5m (GDP.L)
The mining services group, with international gold recovery operations located in South Africa and Ghana, announces an operational update for the 1st quarter ended 30 September 2023 (Q1 FY23). Operations in South Africa and Ghana achieved combined operating profit for the quarter of £1.85m (excluding listing and head office costs, interest and foreign exchange movements), compared to the combined operating profit of £1.94m for Q1 FY22. During the period the Company incurred capital expenditure of £205k on a lower grade milling, gravity and flotation circuit. Cash balances was £1.35m, with significant balances invested in debtors with the Group’s main exposure to a new smelter in Europe and South Africa.

Helium One Global 5.4p £51.5m (HE1.L)
The primary helium explorer in Tanzania provides an update on Tai-3 operations. The Company's Epiroc Predator 220 drilling rig has encountered an issue with the hydraulic system, as a result, is affecting the performance of the iron rough neck mechanism. As a result of this, the Company has had to temporarily shut down operations whilst the full extent of the issue is determined. The Tai-3 results during drilling were positive with helium showing up to six times above background at multiple levels, increasing in frequency and quality with depth.

Physiomics* 1.6p £2.2m (PYC.L)
The mathematical modelling company, supporting development of oncology drugs and personalised medicine solutions, announces that it has been awarded a grant by Innovate UK and The Office for Life Sciences as part of the UK Government's Advancing Precision Medicine programme. The project is called PREDICT-ONC: Precision Risk Evaluation and G-CSF Dosing for Chemotherapy-Induced Neutropenia Tool (Project) and will be carried out in partnership with Beyond Blood Diagnostics Limited and Blackpool Teaching Hospitals NHS Foundation Trust. The Project's total costs, shared between the three partners, are expected be £571k, of which Physiomics' costs are expected to be £196k (primarily comprising staff salaries). The Project costs are 70% funded by the grant, hence Physiomics will receive £137k over the course of the Project which will start immediately and is expected to run until October 2025.

Strategic Minerals 0.11p £2.2m (SML.L)
The mineral company announces an update from its 100% owned subsidiary Cornwall Resources Limited (CRL), regarding the completion of its involvement in the Deep Digital Cornwall (DDC) project. DDC was led by the University of Exeter's Camborne School of Mines (CSM), in which CRL and Cornish Lithium Plc were delivery partners. CRL's DDC outputs included: 1) Analytical data for 2,184 soil samples, 2) A highly detailed ground gravity survey and 3D interpretation, and 3) datasets from the DDC aerial survey of the Redmoor area, consisting of electro-magnetic and magnetic data over 40 km². CRL is in discussions to further advance collaboration on DDC outputs, data interpretation and follow up activities.

Tungsten West 1.55p £3.1m (TUN.L)
The mining company focused on restarting production at the Hemerdon tungsten and tin mine in Devon, UK, announces the appointment of Mr. Alistair Stobie as its Chief Financial Officer (CFO) effective Monday 13 November 2023. Mr. Stobie has a strong track record of leading the finance function of AIM-listed businesses within the energy and natural resources sector. Mr. Stobie was previously CFO at Hurricane Energy, which raised c.$700m to fund drilling campaigns and an Early Production System during his tenure.

ValiRx 12.25p £12.2m (VAL.L)
The life science company focusing on early-stage cancer therapeutics and women's health, has entered into an agreement with StingRay Bio Limited (StingRay) to investigate a lead series of drug candidates for use in oncology. Under the agreement, the Company will carry out a defined series of preclinical tests on the molecules over the next twelve months to validate the technology and determine suitability for commercialisation. The cost of the work will be borne by ValiRx and will be capped at £100k over the twelve month period. At the conclusion of the evaluation period the Company has an option to license the technology on pre-agreed terms.

Warpaint London 335p £258.5m (W7L.L)
The supplier of colour cosmetics and owner of the W7 and Technic brands, provides a trading update. Group sales for the year ending 31 December 2023 are now expected to be at least £85m (2022: £64.1m), and profit before tax for the year is now expected to be in excess of £16m (2022: £7.7m). Results for the year are expected to be above market expectations. Launches in November 2023 include a range of W7 products in 400 Etos stores in the Netherlands and 100 Watsons stores in the Philippines.

10 November 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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