Small Cap Feast

1st February 2023

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Dish Of The Day:

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Leavers:
Micro Focus International has left the Premium Segment of the Main Market.




What’s Cooking In The IPO Kitchen?

Constance Iron Limited, whose principle activities will be the development and production of magnetite iron ore projects in Australia announces a consideration of an IPO and admission of shares onto the Standard Segment of the Main Market of the London Stock Exchange. The Company is targeting to raise gross proceeds of c. £60m which will be ustilised to fund the exploration and development to production of the Norseman Iron Ore Project where the Company has a 65% net profit interest in the Project.


Fulcrum Metals, a holding company of a mineral exploration group with base, precious and energy metal projects in Canada, intends to join AIM. On Admission, the Group's projects will comprise six gold and base metal projects in Ontario, Canada. The Group's projects are pre-discovery with large, diversified land packages that have either substantial historical samples or prospective geology and are located nearby mineral rich deposits or producing mines. Expected mid-February 2023.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both Publicly Traded and Private companies - c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Delayed to 3rd February 2023.


Breakfast Buffet

Arrow Exploration Corporation 17.75p £39.9m (AXL.L)
The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provides an operations update including its 2023 capital budget. Arrow is poised to spud the first of three low risk infill wells, RCE-3, within the next five days. Arrow expects RCE-4 and RCE-5 will be drilled immediately following RCE-3. Arrow has commenced the 3D seismic project on the Tapir block and is scheduled to be completed in Q1 2023. Average January production was c.1,800 boe/d amd. In December 31, 2022 Arrow's cash balance was c.$13m. The Group’s 2023 capital budget totals $32m and is to be financed through cash reserves and operating cash flow.

Aurrigo International 88.5p £36.9m (AURR.L)
A provider of transport technology solutions announces that it has been awarded a grant for approximately £0.7m through Innovate UK and the Centre for Connected and Autonomous Vehicles' Commercialising Connected and Automated Mobility competition. Aurrigo is being funded to provide three self-driving zero-emission Auto-Shuttles, which will transport passengers and the deployment of a highly automated, remotely supervised, zero-emission passenger mobility service within the City of Sunderland. Development work is expected to commence in March, with the aim of demonstrating the service during 2024.

Crimson Tide 3.1p £20.4m (TIDE.L)
The provider of the mpro5 solution, announces the signature of its inaugural subscription contract in the United States. The three-year contract is worth over £0.25m and will see mpro5 implemented as the Smart App Solution in a building-wide IoT project in our clients' offices in San Francisco. mpro5 will be used to initiate smart actions from sensor readings in this office, which is envisaged to be the first in a wider implementation of mpro5 in the US and other locations.

Keywords Studios £28.40 £2217.8m (KWS.L)
The international technical and creative services provider for video games and entertainment industries, announces it has acquired 47 Communications LLC (47), a leading US-based PR and communications agency with expertise in the video game, technology and entertainment sectors. 47 will join Keywords' marketing businesses in the Engage service line, to deliver holistic solutions to clients' player engagement needs. 47 generated revenues of approximately $11m and the consideration payable for the Company is in line with Keywords' targeted valuation range. The terms of the transaction include contingent consideration payable in a mix of cash and new ordinary shares depending on future performance over three years.

Kibo Energy* 0.13p £4m (KIBO.L)
The renewable-energy-focused development company provides an operational update. The Company is focused on developing, owning, and operating sustainable energy projects that can be brought into production within an 18-to-24-month timeline. KIBO continues to actively execute the following strategic work streams: to exit coal by a disposal process of its coal assets, all of which are in southern and eastern Africa; Convert its African electricity-generating asset fuel supply from coal to biofuel technology, subject to proven technical and commercial feasibility; and enter the Long Duration Energy Storage market, comprising Battery Energy Storage Systems integrated with utility-scale and microgrid renewable energy solutions. The Company is in a realistic position to see several projects in revenue generation over the next 12—24 months.

Made Tech Group 32.5p £48.5m (MTEC.L)
A provider of digital, data and technology services to the UK public sector, provides a half year update on trading for the six months ended 30 November 2022. The Group generated year-on-year revenue growth of 76% to £20.6m. (H1 2022: £11.7m) with adjusted EBITDA in line with management's expectations at £0.5m (H1 2022: £1.2m). The Group is debt free and holds net cash at Period end of £9.0m (H1 2022: £11.1m). The Board announces that, in recent weeks, Made Tech has been awarded three substantial new contracts, collectively worth £27m and is confident in the Group’s growth prospects.

Orcadian Energy 11p £7.3m (ORCA.L)
Orcadian Energy announces its intention to raise gross proceeds of approximately £0.5m by means of a placing of new Ordinary Shares to certain institutional and other investors at a price of 10 pence per share. The Placing Price represents a discount of approximately 33%. The Company is undertaking the placing to progress its corporate and operational strategy and the net proceeds will therefore be applied towards its Pilot Licence by funding progress towards the Field Development Plan, licence fees, and for general working capital purposes.

Petards Group* 10p £5.7m (PEG.L)
The developer of advanced security and surveillance systems, announces the appointment of John Wakefield, as an independent Non-Executive Director with immediate effect. John is an experienced quoted company director and corporate adviser. He is currently non-executive chairman of Baron Oil Plc and a non-executive directive of Drumz Plc both of which are listed on AIM and he has previously worked at several nominated adviser firms. John will assume the role of Chair of the Nominations Committee and will also be a member of both the Audit and Remuneration Committees.

Restore 335p £458.7m (RST.L)
The UK's provider of digital and information management and secure lifecycle services, provides a trading update for the year ended 31 December 2022. The Group achieved strong sales during the year including storage and service contract wins with BBC Heritage (c.£22m over 10 years) and Department for Work and Pensions (c.£1m per year). Five acquisitions were completed during 2022 across Restore Technology, Restore Records Management and Restore Harrow Green for c.£12.4m. The Board reports that Restore has performed in line with expectations.

Wynnstay Group 540p £120.6m (WYN.L)
The Group supplying a wide range of agricultural products and grain marketing services provides final results for the year ended 31 October 2022. The Group’s revenues increased by 42% to £713.03m (2021: £500.39m), and reported profit before tax was £21.12m (2021: £10.99m). Net cash increased 53% to £14.15m (31 Oct 2021: £9.24m) Post period, the group acquired Tamar Milling Ltd, in November 2022, extending its geographic footprint, and manufacturing capacity. The Board believes Wynnstay remains well-positioned to attain its growth targets.

1 February 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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