Small Cap Feast

14th November 2023

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What’s Cooking In The IPO Kitchen?

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: 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

ADM Energy* 0.50p  £1.8m (ADME.L)

The natural-resources investing company provides an update on its financing, debt and asset restructuring exercise. The total debt has been reduced by approximately £1.1m in combination of discounted debt settlements and equity transactions. Further to the announcement of 25 May 2023 regarding subscriptions for the Secured Convertible Loan Note (SCLN) issued by ADM Energy (USA), Inc. for US$900k, US$425k has now been received in cash with the balance of funds expected over next 90 days. In addition, OOFX Holdings, LLC (a substantial shareholder), pursuant to its existing loan agreements, advanced an additional net US$70k in cash to the Company in the second half of 2023. In order to focus on the Altoona lease, part of the Blade Oil V, LLC (Blade V) investment announced on 25 May 2023, the Company has returned the Texas and Kansas leases included in the Blade V investment, resulting in a reduction of US$406,850 of total maximum consideration associated with the transaction including US$250k of the total debt reductions announced in this RNS.

Aeorema Communications 77p £7.3m (AEO.L)

The strategic communications group announces its audited results for the year ended 30 June 2023 (FY23). Revenue was up 66% to £20.2m (FY22: £12.2m). Profit before tax was up 25% to £1.0m (FY22: £0.8m). The current cash balance was £1.9m. The Company proposes a 50% increase in the final dividend to 3 pence per share. The Company is now consolidating the results of recent investments and creating a strong platform for further growth across the Group. That said, many brands are delaying projects into the first half of calendar year 2024; the second half of the Company’s financial year.

B.P. Marsh & Partners 384p  £140.3m (BPM.L)

The private equity investor specialised in early stage financial services intermediary businesses announces that on 9 November 2023 it cancelled 178,000 ordinary shares of 10p each. These shares were previously held in treasury, taking the total number of shares held by the Company in Treasury to 60,097 shares. Meanwhile, the Company will undertake a share buy-back programme of a maximum aggregate consideration of £500,000, and subject to the ordinary shares being available to purchase at a price representing a discount of at least 20% to the most recently announced NAV per share of 567.3p.

Byotrol 0.725p  £3.3m (BYOT.L)

The antimicrobial technology Company announces the launch of PROCESSUS, a 360-degree instrument decontamination system, intended for the simple and effective reprocessing of instruments and specialist equipment, in both animal and human healthcare organisations. PROCESSUS is the third launch of Byotrol's next-generation surface disinfectant technology, which was first introduced in November 2022, under Byotrol's market-leading ANIGENE brand and subsequently launched under the CHEMGENE brand earlier this year.

Gear4music 116p  £24.1m (G4M.L)

The largest UK based online retailer of musical instruments and music equipment announces its unaudited results for the six months ended 30 September 2023 (1H FY24). Revenue was £62.6m, down 6% year-on-year. Operating loss was £0.9m, compared to £0.3m in loss in 1H FY23.Net debt was reduced to £18.1m, £3.7m lower than last year (30 September 2022: £21.8m). The Company is moderating its revenue expectation to £144m for the year. As such, full-year adjusted/underlying profit outlook remains in-line with current consensus market expectations.

Kodal Minerals 0.715p  £121.7m (KOD.L)

The mineral exploration and development Company focused on lithium and gold assets in West Africa announces a new JORC Mineral Resource estimate (MRE) for the Bougouni Lithium Project located in southern Mali (Bougouni) of 31.9m tonnes (Mt) at 1.06% Lithium Oxide (Li2O), an increase of over 40% from the previous Mineral Resource completed in 2019.  The significant increase is specific to the Ngoualana and Boumou deposits following the drilling programmes completed in early 2023.

Minoan Group 0.75p £5.6m (MIN.L)

The Company currently focusing on The Project at Cavo Sidero near Sitia in eastern Crete of Greece announced that following the shareholder approval at the General Meeting held on 10 November 2023, the Company is issuing ordinary shares at a price of 1p per share to settle £707,231 of the Loan outstanding to DAGG LLP.

R&Q Insurance Holdings 12.7p £47.7m (RQIH.L)

The Bermuda-based non-life global specialty insurance Company announced the proposed Sale of Accredited to Onex Corporation. The transaction is conditional on R&Q shareholder and regulatory approval as well as customary consents from certain R&Q debt providers. R&Q continues to work expediently towards satisfying these conditions and closing of the Sale is expected to occur in late Q1 2024 or early Q2 2024. In the announcement on 20 October 2023, the transaction is expected to bring in net cash proceeds immediately on closing of between approximately $170m and $210m and will be used entirely to facilitate a material de-leveraging of R&Q.

Surface Transforms 10.75p  £26.0m (SCE.L)

The manufacturer of carbon fibre reinforced ceramic automotive brake discs announces that further it has conditionally raised gross proceeds of £8.3m in a placing of ordinary shares at an Issue Price of 10 pence per share. In addition, the Company intends to provide all Qualifying Shareholders with the opportunity to subscribe for an aggregate of up to 20,000,000 Open Offer Shares at the Issue Price, to raise up to approximately £2.0m. The Company's contracted expected revenue pipeline is now £390m together with a perspective contract pipeline totalling £300m. The fundraising also enables the Company to deliver on its recent contract successes.

Zinc Media Group 92.5p  £20.5m (ZIN.L)

The UK-based television and content creation Company announces that, following a strong trading performance by The Edge Picture Co Limited (The Edge) in the period since acquisition in August 2022, the first-year earnings target, set out in the earn-out terms, was achieved. The first year earnout payment, payable to the vendors of The Edge is £0.85m, to be satisfied in cash for £247,375 and the balance settled by the allotment of ordinary shares of new Zinc Media shares based on a share price of 0.914 pence per share. The Earnout Shares are subject to a 12 month lock-in period. The cash element of the earnout payment will be satisfied from the Group's existing resources.

14 November 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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