Small Cap Feast

13th March 2023

Dish of the day
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Off the menu
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Dish Of The Day:

MBH Corporation (M8H) has joined the Access Segment of the AQSE Growth Market.

No leavers today.

What’s Cooking In The IPO Kitchen?

M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023.

Altona Rare Earths, a mining company focused on the development of a significant Rare Earth Elements (REE) mining project in Africa, announced its intention of withdrawing from the AQSE Growth Market to the Standard Segment of the Main Market. The Company has just raised £2m and plans to use the proceeds to complete its maiden JORC compliant Mineral Resource Estimate and a Scoping Study for its Monte Muambe Rare Earths mining project in northwest Mozambique. Expected Admission date 20th March 2023.

Fadel Partners, a developer of cloud-based brand compliance and rights and royalty management software in the media, entertainment, publishing, consumer brands and hi-tech/gaming sectors intends to join the AIM market. Fadel has two solutions, being IPM Suite and Brand Vision. Expected Admission date is late March 2023.

Onward Opportunities Limited intends to join the AIM market. The Company's investment objective is to generate returns for Shareholders through investments in equity and equity-related instruments of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the London Stock Exchange. Expected admission date is mid-March 2023.

Essentially Group plc, its strategy is the acquisition, holding and development of companies active in the health food and beverages market, intends to join the AQSE Growth Market. On 1 September 2022, Essentially Group UK acquired Essentially Holdings Ltd (and its wholly owned subsidiary, Essentially Juices Manufacturing LLC (EJM)), EJM is active in the UAE and Kingdom of Saudi Arabia fruit and vegetable juice market. Expected 17th March 2023.

Several companies have released RNS announcements to say they have no SVB exposure whilst a smaller number of companies have announced statements outlining the risks; with a few outliers seemingly more worrying and requiring suspension. The Feast below covers non SVB news today and we hope the day will provide clarity and much needed stability for all those concerned.

Breakfast Buffet

Anglo Asian Mining 103.5p £118.2m (AAZ.L)
The listed gold, copper and silver producer primarily focused in Azerbaijan, announces it has identified significant copper mineralisation at Xarxar. AzerGold CJSC drilled 15 core drill holes with a total length of 4,923 metres. The mineralisation is copper-dominant and comprises mainly oxides and secondary sulphides, with minerals such as malachite, azurite, pyrite, chalcocite and bornite, together with some primary chalcopyrite as common minerals in the deposit. The Company acknowledge Xarxar Contract Area to have good exploration potential.

Arrow Exploration 18.8p £41.8m (AXL.L)
The operator with a portfolio of assets across key Colombian hydrocarbon basins, provides an update on the drilling activity at Rio Cravo Este (RCE) in the Llanos Basin of Colombia. The RCE-4 well reached total depth on March 8 2023 to a total measured depth of 8,546 feet (8,053 feet true vertical depth) and encountered 6 hydrocarbon bearing intervals totalling 45 net feet of oil pay. Two hydrocarbon bearing intervals have been identified: Carbonera C7: 25 feet net oil pay over two intervals and Lower Gacheta: 20 feet net oil pay over four intervals. It is expected that the RCE-4 well will begin production in late March 2023.

Dekel Agri-Vision 2.05p £11.4m (DKL.L)
The West African agriculture company focused on building a portfolio of sustainable and diversified projects, provides a February production update for its palm oil project and cashew processing plant in Côte d'Ivoire. Fresh Fruit Bunch volumes reduced by 31.2% to 9,418t (Feb-22: 13,683t). Strong local Crude Palm Oil (CPO) demand resulting in CPO sales prices remaining close to record levels at EUR984/t. The CPO extraction rate of 23.3% was a 4.5% increase (Feb-22: 22.3%). The Raw Cashew Nut buying season has now commenced and the Company is actively purchasing.

Fonix Mobile 200p £200.0m (FNX.L)
The UK focused mobile payments and messaging company, announces its unaudited interim results for the six months to 31 December 2022. Revenue increased by c.15% to £32.8m (H1 FY22: £8.6m), adjusted EBITDA increased c.13% to £6.2m (H1 FY22: £5.5m) and adjusted profit before tax increased 13% to £5.9m (H1 FY22: £5.2). Fonix continues to maintain high client retention, with over 99% of income of a repeating nature. Performance is in line with expectations and the business has a strong pipeline going into the second half of the year.

Mincon Group 91p £203.8m (MCON.L)
The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, announces its results for the year ended 31 December 2022. Group revenue increased 18% to EUR170m, (FY21: EUR144.3m). Gross profit increased by 11% to EUR54.1m (FY21: EUR48.7m) and operating profit increased by 9% to EUR19.7m (FY21: EUR18.1m). The group signed its first commercial contract for the Greenhammer system with a blue-chip mining contractor operating on a major gold mine in Western Australia. The Board remains confident to deliver in the year ahead.

Molecular Energies 120p £12.4m (MEN.L)
The international energy Company with both hydrocarbon, and alternative energy divisions provides an operational update. 2022 Argentine Financial Statements show profit before tax in excess of US$19m. Net Hydrocarbon Reserves in Argentina as at 31 December 2022 has now been independently assessed. The Company continues in negotiations with regard to the current level of interest payable by the Group to IYA, a Company ultimately beneficially owned by Peter Levine, the Company's Chairman and largest shareholder. Green House Capital, the alternative energies division of Molecular has been making active progress. Its joint venture with Dual Fuel, has made its first order of equipment to progress its development work on conversion of a diesel truck engine to run on a mix of hydrogen and diesel.

MTI Wireless Edge 48p £42.4m (MWE.L)
The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announces its audited results for the year ended 31 December 2022. Revenue growth of 7% to US$46.3m (2021: US$43.2m), a 12% increase in adjusted EBITDA to US$6.06m (2021: US$5.4m). Net profit grew 4% to US$3.85m (2021: US$3.7m). Reported net cash of US$8.1m (2021: US$12.5m). The first two months of 2023 have been in line with internal expectations.

Nightcap 11.5p £22.8m (NGHT.L)
The cocktail bar operator announces its interim results for period ending 1 January 2023. Revenue grew 48.7% to £23.5m, however a 5.8% like-for-like decrease occurred in H1 FY2023 against H1 FY2022, largely due to the ongoing rail strikes. Adjusted EBITDA increased by 25% to £2.0m and the Group had unaudited cash resources of c.£5.5m. The Group has opened six new sites across The Cocktail Club, Tonight Josephine and Barrio brands and continues to trade in line with market expectations.

Tern 6.75p £26.2m (TERN.L)
The company focused on value creation from Internet of Things technology businesses, notes that Wyld Networks AB has announced that it has received an approximately SEK 9.2m (c.£0.7m) purchase order for the Wyld Data service from a South African company deploying soil moisture sensors to optimize irrigation and automate scheduling systems for agriculture. Tern currently holds 40.2% of Wyld Networks' equity.

Woodbois 1.18p £26.5m (WBI.L)
The African focused forestry, timber trading, reforestation and voluntary carbon credit company, announces that gross proceeds of £3m have been raised by way of a conditional placing at a price of 1.2p per share. Proceeds will be used to provide general working capital and assist in the Company’s achieving full FSC Certification.

13 March 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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