Small Cap Feast

12th February 2024

Dish of the day
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Dish Of The Day:


Safestyle UK plc (SFE.L) has left AIM.

Whats baking in the oven?

Potential Initial Public Offerings:

12 February media report: The private equity owners of Shawbrook are seeking to revive plans for a float of the bank in a potential boost to the London stock market. In 2017, Shawbrook was bought by BC Partners and Pollen Street Capital for £868m.

29 January media report: Raspberry Pi, the developer of small single-board computers, is preparing for an IPO when the market is ready. CEO Eben Upton indicated that London is the natural listing location for a company like Raspberry Pi, and it wouldn't be an impediment to attracting US (or other international) investment.

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Arix Bioscience 142p £183.7m (ARIX.L)
On 1 November 2023, the boards of RTW Bio and Arix announced that they had agreed to the terms of a recommended all-share acquisition of Arix's assets by RTW Bio, to be effected through a scheme of reconstruction and the voluntary winding-up of Arix (the Scheme). Further details are set out in the circular published by Arix on 5 January 2024. In connection with the Scheme, Arix confirms that trading in the Shares on the London Stock Exchange will be suspended by no later than 7:30 a.m today, 12 February 2024, in anticipation of the Second General Meeting.

Directa Plus 18p £11.9m (DCTA.L)
The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets announces a trading update for the year ended 31 December 2023. The Group expects to report revenues of approximately EUR11m, with an improvement in adjusted EBITDA loss of at least 20% from 2022, slightly ahead of consensus. The current order book for delivery in 2024 stands at approximately EUR7.8m, mostly made of recurring clients, further reinforcing the Board’s confidence for increased traction in the year ahead.

Eckoh 42.5p £123.4m (ECK.L)
The provider of Customer Engagement Data Security Solutions announces the resignation of David Coghlan, a non-executive Director of the Group, with immediate effect due to personal reasons. A search will be initiated, and the Board will look to replace the position at the earliest convenience, however, until a replacement has been appointed Christopher Humphrey, Chairman will replace David as Chair of the Remuneration Committee.

ECR Minerals 0.28p £4.5m (ECR.L)
The exploration and development Company focused on gold in Australia provides additional results from its drilling programme at the Davey Road site in its Creswick tenement. Significant increase in gold grades overall with the best result now 41.03 g/t Au over 1 metre. Furthermore, the Company announced several other results including 10.26 g/t Au, 8.46 g/t Au and 6.22 g/t Au. Importantly, the bulk sample results show contiguous gold over multiple metres - of particular note, approximately 4.4 g/t Au average over 3 metres in hole 1 (between 36 - 39 metres depth). This phase of drilling has been completed on time and on budget and second phase of drilling at Kuboid Hill, Creswick is now underway.

Good Energy Group 256p £43.2m (GOOD.L)
The 100%. renewable electricity and energy services provider has announced that it has entered into a conditional binding agreement to acquire the entire issued share capital of JPS Renewable Energy Ltd. The Acquisition is on a debt-free, cash-free, basis for an initial consideration of £7.0m with further deferred consideration of up to £6.75m, payable in cash over a two-year period. The Company further announce a Vendor Placing to raise approximately £2.1m for the Vendors at the Placing Price of 250 pence. The Placing Price represents a discount of 9.4 per cent. to the mid-market closing price of 276 pence on 9 February 2024. The Acquisition is expected to be earnings accretive in the current year ending 31 December 2024.

Journeo 259p £42.7m (JNEO.L)
A provider of information systems and technical services to transport operators and local authorities provides an update on trading for the year to 31 December 2023. Group revenues increased by 118% to £46m (2022: £21m). Adjusted profit before tax is anticipated to be in-line with market expectations and cash balances at the year-end were £8.1m, including payments in advance of £1.6m (2022: £0.5m). The acquired businesses, Infotec and MultiQ, have performed well since joining the Group and contributed £21m in revenues during the year.

Poolbeg Pharma* 9.35p £46.8m (POLB.L)
A biopharmaceutical Company focused on the development and commercialisation of innovative medicines targeting diseases with a high unmet medical need announces that independent research conducted on behalf of Poolbeg confirms a >$10bn market opportunity for POLB 001 in Cancer Immunotherapy-Induced CRS as an orally delivered preventative therapy. Cancer immunotherapies have been approved in rare and orphan blood cancers and so the Company can see potential for POLB 001 in one or more of these cancer types. The Company also announced further detail on the significant market opportunity for POLB 001 CRS induced by CAR-T and bispecific antibody treatments, where CRS can affect the majority of patients and can lead to extended hospital stays, discontinuation of treatment and mortality risk. Poolbeg recently announced promising in vivo results for POLB 001 in addressing cancer immunotherapy-induced CRS, where CRS clinical symptoms were significantly improved by administration of POLB 001.

Tertiary Minerals 0.085p £1.8m (TYM.L)
The explorer focussed on copper and precious metals in Zambia and Nevada, USA, announces that it has raised £375k, through a placing of new ordinary shares in the Company at a price of 0.08 pence per share (Placing Price). The Placing Price represents a 15.8% discount to the closing market bid price on Friday 9 February 2024. The net funds raised will be applied to exploration activities at the Company's projects in Zambia and Nevada and for general working capital.

TPXimpact Holdings 40.5p £36.9m (TPX.L)
The technology-enabled services Company focused on people-powered digital transformation provides an update on trading for the three months ended 31 December 2023 (Q3). Like-for-like basis, third quarter revenues were up 32% to £20.2m and year-to-date up 25% to £61.8m. New business won in the financial year so far amounted to £130m, including £25m of wins in Q3, and the pipeline for new projects remains encouraging. Net debt at 31 December 2023 decreased to £10.7m. As previously announced, management are targeting FY24 revenue in the range of £80-85m (like-for-like revenue growth of 15-20%) and adjusted EBITDA in the range of £4-5m. The Board confirms trading is in line with achieving the Company’s targets.

ValiRx 4.85p £6.4m (VAL.L)
A life sciences Company focusing on early-stage cancer therapeutics and women's health announces an agreement with the University of Dundee and their Drug Discovery Unit (DDU) to access research relating to novel therapeutic candidates. The first evaluation agreement under this agreement has also been signed (Evaluation Agreement). The Evaluation Agreement focuses on investigating a lead series of therapeutic candidates in the research area of pro-senescence. The agreement is scheduled to be active for a period of five years, during which time, the Company will have the opportunity to review research projects from the DDU with a view to initiating additional evaluation projects on pre-defined terms.

12 February 2024
*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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