Small Cap Feast

20th June 2023

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What’s Cooking In The IPO Kitchen?

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

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.


Breakfast Buffet

Atlantic Lithium 32.15p £195.9m (ALL.L)
The funded African-focussed lithium exploration and development company targeting to deliver Ghana’s first lithium mine, announces initial assay results from the resource and exploration drilling programme recently commenced at the Ewoyaa Lithium Project in Ghana, West Africa. Highlights include: Initial assay results received for 2,208m of infill reverse circulation drilling completed at Ewoyaa as part of the broader 18,500m 2023 planned drilling programme. Newly reported assay results confirm mineralisation continuity within the Ewoyaa South-2 deposit, part of the 35.3Mt @ 1.25% Li2O Ewoyaa JORC (2012) Compliant Mineral Resource Estimate. Multiple high-grade drill intersections reported as downhole intercepts, with true widths estimated in the intersections table. The Definitive Feasibility Study remains on track for release end Q2 2023. Awaiting approval of Mankessim licence consolidation ahead of resubmission of Mining Lease application for the Project.

Celsius Resources 1.25p £28.4m (CLA.L)
The company focused on the exploration, extraction, and development of mineral properties in Australia announces that a secondary tenement, the Botilao Porphyry Copper-Gold Prospect under its Philippine subsidiary, Makilala Mining Company, Inc., which is located beside the Maalinao-Caigutan-Biyog project will be explored to complement the development of the area with a potential to extend the operational mine life. The Mines and Geosciences Bureau has confirmed that all documentary requirements have been satisfied, which will allow the permit issuance upon the clearance of signatories which is anticipated in the coming weeks. This tenement could add significant value and complement the MCB Copper-Gold Project, given its location and porphyry Cu-Au mineralisation within the area.

Cobra Resources 1.33p £6.8m (COBR.L)
The gold, rare earth and IOCG exploration company focused on the Wudinna Project in South Australia, announces additional Rare Earth Element (REE) results from Aircore drilling, which demonstrate further REE resource growth and a highly desirable style of mineralisation. Characteristics of REE mineralisation demonstrate properties supportive of ionic mineralisation (subject to desorption and simple leach testing). The drilling has tested only 1.5 km of a prospective >30 km zone of palaeo-channel where clays are likely to make contact with saprolite on channel boundaries - highly scalable. Selected samples have been sent to Australia's Nuclear Science and Technology Organisation for desorption and simple leach testing.

EKF Diagnostics Holdings 36p £163.3m (EKF.L)
The global diagnostics business, announces that its Life Sciences division’s new 14,500L enzyme fermenter has successfully completed Factory Acceptance Testing. This will be the Company’s largest fermenter in its capacity expansion programme, and is scheduled for delivery this month, with installation and validation to be completed in Q3 2023. In addition, and as planned, the validation process has begun for the new 65L, 300L, 1,500L, and 3,000L fermenters, which are now all on site in the Life Sciences facility in South Bend, Indiana. This range of smaller fermenters, remain on track to be operational and revenue generating over the summer.

Gear4music 95.5p £20.0m (G4M.L)
The UK based online retailer of musical instruments and music equipment, today announces its financial results for the year ended 31 March 2023. Revenues increased 3% to £152m (FY22: £147.6m), while gross margins fell slightly to 25.7% (FY22: 27.9%) reflecting a reduction in inventory. EBITDA decreased 34% to £7.4m (FY22: £11.2m) and Gear4music reported a loss for the period of £0.4m (FY22: profit £5m). The Group carried net debt of £14.5m at the year-end (31 March 2022 net debt: £24.2m), having reduced stock by £11.1m (24%) over FY23.

Guild Esports 0.65p £3.4m (GILD.L)
The global teams organisation and lifestyle brand announces that it has completed a £622k fundraise, by way of a share placing and subscription of 103,700,000 new ordinary shares at a price of £0.006 per share. Of the £622k raised, a contribution of £100k came via subscription from the Company's directors and executive management and £24k from the members of the Company’s senior leadership team. The net proceeds of the Fundraise will be used for general working capital purposes to drive the Company's strategy. In addition, the Company will use the new funds to facilitate investment into the Guild Racing team roster, allowing the Company to field drivers in professional sim racing and leverage the state-of-the-art Guild Sim Racing Facility that was announced 12 June 2023.

Intercede Group 51p £29.7m (IGP.L)
The cybersecurity software company specialising in digital identities, announces the appointment of John Linwood as a Non-Executive Director with immediate effect. Mr. Linwood has over 40 years' experience in the technology sector and has held management positions in multiple global organisations including Yahoo, the Ministry of Defence, BBC and Microsoft. Mr. Linwood sits on several boards, including the National Grid Energy System Operator and Brooks Macdonald Group plc. The Company also announces that Chuck Pol and Rob Chandhok, Non-Executive Directors of the Company, will step down from the Board in due course.

Seeing Machines 5.62p £233.6m (SEE.L)
The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, announces a collaboration with Swedish startup, Devant, a world leading supplier of human centric synthetic data. This collaboration brings together Seeing Machines' 20+ years' experience and access to human behavioural insights with Devant's specialist rendering capabilities, leaving Seeing Machines positioned to accelerate the development and training of its Machine Learning networks that underpin its advanced driver and occupant monitoring system (DMS/OMS) solutions.

Somero Enterprises Inc 295p £164.6m (SOM.L)
The concrete placing solution provider, announces a trading update. The Company expects H1 2023 revenue will range between 15% and 20% below the record US$68.5m revenue reported in H1 2022. FY 2023 revenue will approximate US$ 120.0m (compared to market consensus estimates of US$132.1m) and EBITDA of approximately US$ 36.0m (compared to the previous market consensus estimate of US$ 42.8m). Lowered expectations for H1 2023 and FY 2023 revenue have been driven primarily by the US market. Strong contributions to 2023 revenue are anticipated from Europe, Australia, and the Rest of World territories, with Europe and Australia each expected to report H1 2023 revenue that meets or exceeds the comparable H1 2022 total. Due to the anticipated 10% reduction in 2023 sales, the Company has reduced its operational workforce by 10%, a restructuring that takes effect alongside this trading update.

Tekcapital 13.5p £24.1m (TEK.L)
The UK intellectual property investment group announces that Innovative Eyewear, Inc. the developer and retailer of smart eyewear under the Lucyd®, Nautica®, and Eddie Bauer® brands has signed license the irreverent sports culture brand, Reebok® for smart eyewear, via an agreement with Authentic Brands Group, a global brand development, marketing and entertainment platform. The initial Reebok smart eyewear collection is expected to launch early in 2024 with styles for men and women. Tekcapital currently owns approximately 62% of Innovative Eyewear, Inc.

20 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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