Small Cap Feast

15th December 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
 The Small Cap Team will take a break until Monday 8 January 2024 after today. Merry Christmas to all our readers..

Dish Of The Day:

Admissions: 
Flex Labs (AQSE: FLEX), a software business engaged in the development of advanced artificial intelligence (AI), joins the Access segment of the AQSE Growth Market.

Delistings: 
No leavers.




Whats baking in the oven?

Potential Initial Public Offerings:

11 December: Kondor AI ITF: A U.K. registered AI company planning to launch the Kondor AI app, which will analyse pictures and live photos and provide solutions to questions and challenges based on visual input, is seeking Admission to the AQSE Growth Market. Expected AQSE Admission is on or around 21 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-December.


Reverse Takeovers:

06 December: Good Life Plus RTO: Formally Semper Fortis Esports Plc, announces its Admission to Access Segment of the Aquis Stock Exchange which constitutes a reverse take-over. Good Life Plus operates an entertainment focused monthly subscription service for consumers that provides access to daily luxury prize draws, along with numerous offers, discounts and rewards. Aquis Admission is expected 18 December.


30 November: EnergyPathways RTO: Formally Dial Square Investments Plc, listed on the Standard Listing of the Main Market, announces its Admission to AIM pursuant to the Acquisition of EnergyPathways Limited which constitutes a reverse take-over. EnergyPathways is an integrated energy transition company, initially targeting development of UK gas assets, with the aim of bringing these into production. AIM Admission is expected mid-December.


Change of Market:
05 December: AdvancedAdvT Limited (ADVT.L):
Intends to delist from its Standard Listing of the Main Market and apply for the Admission of its shares to trading on AIM on 10 January 2024.


Banquet Buffet

88 Energy 0.25p £65.5m (88E.L)
The oil and gas exploration and production company with a North American focus announces that it has expanded its footprint in Texas Permian Basin with acquisition of further non-operated working interest in leases and wells. The Company announces it has acquired ~64.4% net working interest (WI) in 1,262 net acres, located ½ mile south and ¼ mile north of existing Project Longhorn assets (Longhorn) connecting the acreage position. The price of the total working interest is US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC (Bighorn) which comprises of Longhorn Energy Investments LLC (LEI) a 100% wholly owned subsidiary of 88 Energy (75% ownership) and Lonestar (25% ownership). 88 Energy expects Longhorn total gross production to reach approximately 600 - 675 BOE per day (~75% oil) by year end 2024.

Arkle Resources 0.35p £1.6m (ARK.L)
The Irish gold and zinc resources discovery company, announces that it has been awarded two exploration licences in the Makgadikgadi Salt Pans in North Eastern Botswana. The licences, PL 075/2023 and PL 0148/2023, cover 312 and 525 sq kilometres respectively in size. The licences are awarded to prospect for lithium in the Salt Pans. Early-stage prospecting work will begin in early 2024.

Atlantic Lithium 23.58p £144.3m (ALL.L)
The African-focused lithium exploration and development company targeting to deliver Ghana's first lithium mine, announces it has successfully completed a placing and raised A$8.0m at a price of A$0.44 (23.35 pence) per new share, a 10.2% discount to the last closing price of A$0.490. Proceeds will enable the completion of the activities agreed under the grant of the Mining Lease for the Project, key items of early works and permitting-related expenditure, for further extensional drilling to support the delivery of an upgraded Mineral Resource Estimate in Q3 2024, and for working capital purposes.

Barkby Group 6.35p £9.1m (BARK.L)
The roadside real estate business, announces that its joint venture (JV) with Meadow Partners LLP to acquire and develop a portfolio of UK-based Roadside Real Estate assets, has completed its first acquisition, (Acquisition). The JV has acquired an asset in Stoke for a total cost of £5.28m. Meadow acquired the asset in September 2023 and is selling it to the JV at cost. The Acquisition will be funded in line with the principal terms of the JV's equity commitments, whereby Meadow will own and fund 97% of the JV while Barkby will own and fund 3%. Therefore, Barkby has made an initial equity contribution of £167.6k to the JV to fund the Acquisition.

Chamberlin 2.8p £3.9m (CMH.L)
The specialist castings and engineering group, announces an update in relation to Russell Ductile Castings, the Group's Scunthorpe based foundry (RDC). November 2023 saw RDC receive its highest level of monthly order intake on record, exceeding £1.85m - primarily due to new order awards in the renewables sector. RDC's new leadership team has introduced a higher level of focus on the commercial development of the business and as a result has secured 5 new key customers for the business - with a current order book of around £4.0m.

Getech Group 5.1p £3.4m (GTC.L)
The locator of subsurface resources, provides a trading update for the financial year ending on 31 December 2023. A number of projects expected to commence this financial year are now expected to occur in 2024, as a result annual sales are expected to be in the order of £4.0m to £4.4m. Revenue levels are expected to be below market expectations for 2023. The Group's orderbook currently stands at £3.7m (30 June 2023 £4.4m). Of this, approximately half is expected to convert into revenues recognised in 2024. The Company is focused on managing working capital to maintain a positive cash position

Kibo Energy* 0.04p £1.5m (KIBO.L)
The renewable energy-focused development company, announces that its subsidiary Mast Energy Developments PLC (MED), a UK-based multi-asset owner, developer and operator in the rapidly growly flexible power market, has received a director loan amounting to £81k from Paulus Fillippus Venter, a non-executive director and significant shareholder of MED. The proceeds will be used for MED's working capital requirements and is a result of Mr. Venter selling 14,000,000 MED shares (Loan Shares) of his total beneficial holdings of 17,708,538 MED shares.

Naked Wines 45.53p £33.7m (WINE.L)
The online wine retailer announces its half year results for the 26 weeks ended 2 October 2023. Total revenue was £132.3m, down 20% at reported currency rates and down 18 % at constant currency), adjusted EBIT was £2.2m and loss before tax was £9.7m. Post period, the Company held net cash of £7.1m and total available liquidity of £53m as of the end of November, an improvement from the end of H1. Inventory optimisation expected to deliver £40m-50m cash inflow over next 18 months. Customer order patterns are currently in line with the Company’s forecasts.

Sosandar 15p £37.2m (SOS.L)
The company focusing on fashion brands in the UK creating quality, trend-led products for women of all ages, announces the appointment of Nick Mustoe as Non-Executive Chairman. Nick has been Interim Non-Executive Chairman since 16 March 2023. In addition, Jon Wragg, Independent Non-Executive Director, has notified the Board of his intention to step down from the Board in order to focus on other commitments, and, with the Company's agreement, has done so with immediate effect.

XLMedia 6.25p £16.2m (XLM.L)
The digital media company, provides a pre-close trading update for the year ended 31 December 2023. On 28 September 2023 the Company noted on its interim results that it had seen a reduced level of customer acquisition marketing activity, particularly, the withdrawal of the Barstool brand from the market and the subsequent launch of ESPNbet has resulted in a significant change in the revenue profile of the Group's North American activities. The Group's revenues for the full year are now expected to be in the range of $50m to $52m while adjusted EBITDA is expected to be in the range of $12m to $14m. The Group expects to see continued progress from its European brands in 2024.

15 December 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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