Small Cap Feast

1st February 2024

Dish of the day
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Dish Of The Day:

Microsalt (SALT.L) has joined AIM. The developer of salt-producing technology designed to deliver full flavor with less sodium as part of its spin out from AIM listed Tekcapital (TEK.L). Tekcapital holds a 77.24% interest in MicroSalt. Microsalt successfully raised approximately £3.14m (before expenses) and had a market capitalisation of c.£18.5m on Admission.


Whats baking in the oven?

Potential Initial Public Offerings:

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Arkle Resources 0.43p £1.9m (ARK.L)
The diversified exploration Company with principal assets in gold, zinc and now lithium exploration licences in Ireland announces the results from the Company's December 2023 drilling programme at the Inishowen Co. Donegal gold prospect. The results expand the strike length of the known gold bearing structure with grades of up to 1.65 g/t gold over 0.8m gold from split core samples. Gold grades were found within both quartz veins but also within fault gouge and surrounding wall rock. In future, drilling is expected to use triple-tube in order to limit the core-loss.

Boku 159.5p £473.8m (BOKU.L)
A provider of mobile payment solutions announces that Stewart Roberts, Senior Independent Non-executive Director has informed the Board of his intention to retire as a Director and leave the Company at its next AGM, expected to be held in May 2024. The Board announces that Charlotta Ginman, an existing Non-executive Director of the Company, has assumed the role of Senior Independent Non-executive Director with immediate effect and will take over from Stewart as Chair of the Audit Committee and a member of the Remuneration Committee.

Cake Box Holdings 165p £66.0m (CBOX.L)
The retailer of fresh cream cakes announces the appointment of Shaun Smith as an independent Non-Executive Director with effect from 1 February 2024. On appointment, Shaun will become a member of the Audit, Remuneration, Nomination and ESG Committees and is expected to become the Chair of the Audit Committee after the completion of the FY24 audit. Shaun has extensive experience and is currently Non-Executive Chair of Driver Group Plc, a Non-Executive Director of Inspecs Group Plc and Epwin Group Plc, where he is also Audit Committee Chair.

CAP-XX 0.75p £5.4m (CPX.L)
A Company focusing in the design and manufacture of thin, flat supercapacitors and energy management systems announces its interim results for the half-year ended 31 December 2023. Total revenue of approximately A$2.3m was reported, an increase of 40% (H1FY2023: A$1.6m), and average product gross margin increased to 35.7% (H1FY2023: 28.8%). Adjusted EBITDA loss of A$1,077k (H1FY2023: Adjusted EBITDA* loss of A$966k), and the Company has cash reserves as at 31 December 2023 of A$0.3m with no debt. In addition, the Company has an unused line of credit of approximately A$1.5m. The sales order book at 31 December 2023 was 33% higher than at 1 January 2023 and the Company is continuing to add new distributors to broaden its sales channels.

Galileo Resources 1.15p £13.4m (GLR.L)
The exploration and development mining Company announces two further new targets on licences PL039/2018 and PL040/2018 located towards the south-eastern basin margin of the Kalahari Copper Belt. The new Galileo geochemical targets occupy a similar geological setting to that drilled by Khoemacau Copper Mining coincident with the Mowana Fold axis and Zones 5 and 9 mineralisation together with the recently announced drill intercepts by Arc Minerals on the adjoining Virgo Project. At Mowana, Khoemacau reported drill intercepts of 4.3m @ 1.65% Cu and 6.1m @ 2.56% Cu. Arc also recently drilled scout holes on the same structure on an adjacent licence and reported 1m intervals assaying up to 3.65% Cu. The Company is assessing available geophysical data ahead of a drill programme over priority targets.

Power Metal Resources 1.15p £24.0m (POW.L)
The exploration Company with a global project portfolio has raised £1.3m in a strategic financing through the issue of new shares at an issue price of 1.0 pence, representing a premium of approximately 3.09 per cent. to the closing mid-market price of 0.97 pence on 31 January 2024. The Financing will be applied to the acceleration of high impact exploration initiatives and corporate activities across the Power Metal group.

SEEEN 4.75p £4.4m (SEEN.L)
The media and technology platform that delivers Key Video Moments to drive Video Commerce provides a trading update for the year ended 31 December 2023. Total Group revenues for the year ended 31 December 2023 are expected to be approximately $2.1m (2022: $3.3m), and the Group has a cash position of $1.2m as at 31 December 2023. The Group announced its First FAST (Free Advertising Supported Television) channel client, as part of the Group's YouTube CSP, expected to be worth approximately $1m in revenues per year and has a strong growth pipeline for 2024 with c.$2m in annual revenue for its Creator Services Partner business.

Thruvision Group 19p £30.5m (THRU.L)
The provider of walk-through security technology launches its next-generation, three camera variant product range. The LPC71 Series improves and expands the Group's WalkTHRU capability and is based on an upgraded and modular Terahertz sensor platform and new, future-proofed image processing software including a separately licensable bundle of enhanced features, called SmartSCREEN. The new technology has a return on investment of six months or less and the Group is offering a hardware upgrade path for existing customers.

Various Eateries 26p £45.5m (VARE.L)
The owner, developer and operator of all day clubhouse, restaurant and hotel sites in the UK announces its results for the 52 weeks ended 1 October 2023. Revenue growth of 12% to £45.5m (2022: £40.7m), largely driven by new site openings and adjusted EBITDA loss of £2.2m (2022: profit of £0.4m). Total loss before tax of £6.7m (2022: loss of £7.2m and the Company holds cash at bank of £1.9m (2022: £9.4m). The Company successfully completed an equity fundraise of £10.1m from institutional investors in early December 2023, at a 4% discount, and conversion of debt into equity and plans to open up to ten Noci sites and up to three Coppa Club sites in the next phase.

Venture Life Group 36.75p £46.5m (VLG.L)
A Company focusing on developing, manufacturing and commercialising products for the self-care market announces a trading update for the year ended 31 December 2023 (FY23). Full year revenue c.£51m was +16% YoY (2022: £44.0m), EBITDA margin progression of c.2ppts highlighting gearing effect from increased volume and EBITDA expected to be in line with management expectations. Net cash from operations increasing over 70% to c.£9.5m (2022: £5.6m), and 28 new listings achieved across UK retailers during the year. The Company is in a good position to deliver strong shareholder returns.

1 February 2024
*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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