Small Cap Feast

15th June 2023

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What’s Cooking In The IPO Kitchen?

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with the YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.) It is rumoured to be valued at between £800m and £1bn with Admission currently expected to occur in July 2023.

WE Soda, the world’s largest producer of natural soda ash, more commonly known in the UK as sodium carbonate or washing soda, announces that it is considering listing on the Premium Segment of the Main Market. WE Soda, an extractor of soda ash in Turkey and the US, is a subsidiary of Ciner Group, an industrial and media conglomerate. It is a high-margin business and last year it reported adjusted operating profits of $892m on revenues of $1.77 bn. The Offer would be wholly comprised of ordinary shares to be sold by the existing shareholder. Separately from and in addition to the Offer, the Company is also considering making an exempt public offer of Shares to retail. WE Soda has decided not to IPO in London stating “extreme investor caution” and “an inability to reach the valuation that it desired”. The Company was looking to raise up to $800m, valuing it at up to $7.5bn, with an offering to retail investors of up to £7m in shares.

Breakfast Buffet

Agronomics Limited 10.75p £106.8m (ANIC.L)
The company focused on the field of cellular agriculture, announce that it has invested AUD2.5m in HydGene Renewables Pty Ltd, a developer of synthetic biology to engineer microorganisms for use in hydrogen production. This investment was paid using cash from the Agronomics’ own resources and will result in Agronomics holding 188,239 Series Seed Preferred Shares and owning, on a fully diluted basis, 12.50% of HydGene. This is part of HydGene's AUD6m Seed financing round. Joining the round are the Clean Energy Finance Corporation (CEFC - whose investment is managed by Virescent Ventures), Understorey Ventures and NOAB Ventures.

Chaarat Gold Holdings 9.1p £62.8m (CGH.L)
The gold mining company with an operating mine in Armenia, and assets at various stages of development in the Kyrgyz Republic, announces its audited results for the 12 months ended 31 December 2022. Revenue amounted to US$92.3m (2021: US$92.4m). EBITDA was US$6.5m, 52% lower compared to last year (2021: US$13.5m). Cash and cash equivalents decreased from US$11.1m in 2021 to US$0.6m the end of 2022. To achieve the planned future capital developments of assets and to repay the convertible loan notes due on 31 July 2023, management will need to raise future financing. There are currently no binding agreements in place in respect of any additional funding.

Coro Energy 0.22p £6.1m (CORO.L)
The South East Asian energy company with a natural gas and clean energy portfolio, announces that it has signed the acquisition of a rooftop solar portfolio of 3.25MW from the shareholders of KIMY Trading and Service JSC (KIMY), as previously announced on 25 November 2022 and 29 March 2023. The total acquisition price is US$1.3m (US$543/MW) comprised of (1) at completion: assumption by Coro of US$600k of existing specialist renewables debt with a Vietnamese bank; US$112k payable in cash, of which US$30k is ring fenced to secure certain required firefighting certificates; US$285k payable in new ordinary shares in the Company to be issued at the mid- market price six months following completion and locked in for 18 months from completion; (2) A further US$300k in cash in six equal monthly instalments from completion. Completion of the acquisition of the Portfolio is expected to occur in Q4 2023.

Eden Research 8.6p £32.7m (EDEN.L)
The company focused on sustainable biopesticides and plastic-free formulation technology for use in the global crop protection, animal health and consumer products industries, announces the appointment of Anasac Colombia Ltd (Anasac) as its exclusive distributor of Mevalone® in Colombia. Anasac's appointment precedes a regulatory application which will be made to the relevant authorities to allow the use of Mevalone on ornamental crops (such as freshly cut flowers) in Colombia to prevent and cure outbreaks of Botrytis cinerea. Once approved, ornamental plant growers and florists will be permitted to apply Mevalone to their flowers during production and after harvest.

GB Group 255.4p £644.9m (GBG.L)
The experts in digital location, identity verification and fraud prevention software, announces its audited results for the year ended 31 March 2023 (FY23). Statutory revenue grew 15.0% from £243m in FY22 to £279m in FY23 as a result of acquisitions and exceptional cryptocurrency volumes in the prior year. Operating loss was £112m (compared to operating profit of £23m in FY22), due to goodwill impairment charge of £122.2m against Identity business in the Americas (i.e., iDology and Acuant acquisitions). Net debt was £106m as at 31 March 2023 (FY22: £107m). The Board recommends a final dividend per ordinary share of 4.00p, up 5%. The Board is confident that GBG will deliver its FY24 profit expectations.

Horizonte Minerals 140.5p ££377.6m (HZM.L)
The nickel company developing two tier 1 assets in Brazil, presents the second pictorial update showing construction progress at the Company's Araguaia Nickel Project. Horizonte Minerals is developing two 100%-owned, Tier 1 projects in Pará state, Brazil, the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are large scale, high-grade, low-cost, low-carbon and scalable. Araguaia is under construction with first metal scheduled for early 2024. When fully ramped up, with Line 1 and Line 2, it is forecast to produce 29k tonnes of nickel per year. Vermelho is at feasibility study stage and is expected to produce 24k tonnes of nickel and 1.25k tonnes of cobalt to supply the EV battery market.

N Brown Group 23.9p £108.9m (BWNG.L)
The top 10 UK clothing & footwear digital retailer, provides a trading update for the 13 weeks ended 3 June 2023 (Q1 FY24). Group revenue was £148.7m (down 9% year-on-year), comprised of £93.6m product revenue (down 11.9% year-on-year) and £55.1m financial service revenue (down 6.3% year-on-year). Trading was in line with the Board's expectations. Strong balance sheet maintained, with total accessible liquidity of c. £118m. The Group continued investment in transformational priorities including moving towards full roll-out of new mobile-first website for Jacamo, following successful launch of new Simply Be website. FY24 guidance remains unchanged.

Oriole Resources 0.20p £5.6m (ORR.L)
The exploration company focussed on West Africa, provides an exploration update on its 90%-owned Bibemi orogenic gold project in Cameroon. In December 2022, the Company reported a maiden JORC-compliant Resource of 305kTroy ounces grading 2.19 grammes per tonne (g/t) gold (Au) for Bakassi Zone 1, one of four prospects at the Project. An additional JORC Exploration Target at Bakassi Zone 1 is estimated to be between 1.5-2.2m tonnes at grades ranging from 1.10 to 2.10 g/t for between an additional 53k and 148k oz of Au. There exists significant potential to expand the Resource at Bakassi Zone 1 and to identify additional resources at the other three prospects on the licence, Bakassi Zone 2, Lawa West and Lawa East, which are all located within a few kilometres of Bakassi Zone 1.

Parkmead Group 18.5p £20.2m (PMG.L)
The last 18 months has seen Parkmead deliver strong cash flow from natural gas fields in the Netherlands, plus income from renewable energy for the first time with sales of electricity direct to the national grid from Parkmead's wind turbines in the UK. As a result, Parkmead announces the appointment of Andrew Smith MRICS to the Board of directors, effect from 15 June 2023. Andrew is Parkmead's existing Managing Director of Renewables. In addition, Group Financial Controller Ryan Stroulger's employment with the Company has ended by mutual agreement.

Warpaint London 282.5p £216.8m (W7L.L)
The specialist supplier of colour cosmetics and owner of the W7 and Technic brands, provides a trading update. Strong trading has continued in Q2 2023. Sales for the five months to 31 May 2023 were £29.7m, 45% ahead of the same period last year with margins continuing to be robust and ahead of those achieved in 2022. The Board now expects that the Group's full year 2023 performance will be ahead of its prior expectations. Cash balances as at 31 May 2023 was £7.5m (31 December 2022: £5.8m) and no debt.

15 June 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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