Small Cap Feast

22th January 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

12 Jan—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 London Stock Exchange plc (Admission). The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940s, 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 of the London Stock Exchange. The Company is expected to have a market capitalisation of approximately £123 million on Admission Expected Admission to take place in January 2024.

Reverse Takeovers:

Change of Market:

Banquet Buffet

Distil 0.65p £5.9m (DIS.L)
The owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka, notes that Ardgowan Distillery Company Limited (Ardgowan) has appointed Whisky industry stalwart Paul Currie, as Chairman in anticipation of its £20m 'cathedral of whisky' becoming operational at the end of 2024. With 30 years' experience founding successful independent distilleries including the Isle of Arran Distillers and The Lakes Distillery, Paul Currie brings an extensive understanding of the whisky industry to state of the art, net-zero designed Ardgowan distillery.

Eden Research 6.15p £32.8m (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 provides an unaudited trading update for the year ended 31 December 2023. Revenue is expected to have increased by approximately 72% to £3.1m, £0.3m or 11% ahead of market expectations of £2.8m (FY22: £1.8m). EBITDA (excluding share-based payments) is expected to be approximately £1.2m loss, £0.7m or 37%, ahead of market expectations of a £1.9m loss (FY22: £1.7m loss). The cash position at the year-end was £7.4m. Eden expects to see further strong product sales growth in 2024.

eEnergy Group 8.1p £31.4m (EAAS.L)
The net zero digital energy services provider announces that it has entered into an agreement to sell its wholly owned Energy Management Division to Flogas Britain Limited for an initial consideration of £29.1m, and additional contingent consideration based on the trading performance of the Energy Management Division for the period to 30 September 2025. The initial consideration of £29.1m comprises £25.0m cash already received by eEnergy and the balance of £4.1m will be used to repay amounts due from the Group to the Energy Management Division.

Empire Metals 12.25p £70.0m (EEE.L)
The resource exploration and development Company announces the analytical lab results from the recently completed Reverse Circulation (RC) drilling programme at the Pitfield Project in Western Australia which has successfully identified extensive, shallow zones of high-grade, bedded sandstone-hosted TiO2 mineralisation. Additional RC drilling, planned to commence later this quarter, will focus on further testing the known areas of extensive, thick, shallow, sandstone-rich beds containing higher grade TiO2 (titanium dioxide) mineralisation as well as several new target areas of high-grade potential identified along the length of the coincident regional magnetics-gravity anomaly.

Frontier IP Group 37p £20.8m (FIPP.L)
The specialist in commercialising intellectual property announces that portfolio company Alusid Limited has raised £500k through equity funding from Octopus Investments via the Octopus AIM VCT plc and Octopus AIM VCT 2 plc funds. The investment, the first in Alusid, is part of a larger funding round raising £1.13m from existing and new investors. The round values Alusid at £9.5m post investment. Proceeds will be used to support Alusid's expansion into new product ranges and territories. Frontier IP now holds a 35.4% equity stake in Alusid, which makes premium-quality tiles from recycled industrial waste.

Keras Resources 3.75p £3.0m (KRS.L)
Keras Resources announces the signature of a five year 50:50 Joint Venture Agreement (JV) between its wholly owned subsidiary, Falcon Isle Resources Corp (FIR) and Phosul LLC, a specialised organic soil enhancement fertiliser company with granulator operations in Idaho, United States. The JV includes the construction and commissioning, funded by Phosul, of FIR's 5tph granulator plant. The plant will produce a PhoSul granulate comprising 80% of FIR's high grade organic rock phosphate from its Diamond Creek mine. In addition, to facilitate the significant expansion in processing capacity, FIR has agreed to acquire an 8.4 acre property with 77,000 square feet of recently constructed undercover warehouse infrastructure for US$700k.

Kooth 288p £104.7m (KOO.L)
The global Company specialised in youth digital mental well-being announces a trading update for the year ended 31 December 2023. FY23 revenues are expected to be approximately £33.3m, a year-on-year increase of c.65%. As at 31 December 2023, the Group had an unaudited net cash balance of £10.9m (2022: £8.5m), and has recently entered into a working capital credit facility with Citibank of $9.5m that remains undrawn at this time. Revenue grew in the UK market for 2023, but as previously reported Kooth expect headwinds to remain in the near term, reflecting a focus on NHS cost saving and the ongoing acute care backlog.

Physiomics* 1.8p £2.4m (PYC.L)
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions announces changes to its board of directors. Dr Jim Millen, who was Chief Executive Officer has been appointed Non-Executive Chairman and Dr Peter Sargent, currently Chief Operating Officer, has been appointed as Chief Executive Officer and a director of the Company with immediate effect. Dr Jim Millen and Dr Pete Sargent will provide a brief update on these Board changes via Investor Meet Company on 29 January 2024 at 1:00 pm GMT, during which they would be happy to take questions relating to the changes announced today.

Shanta Gold 13.1p £137.7m (SHG.L)
The East Africa-focused gold producer, developer and explorer announces its production and operational results for the quarter ended 31 December 2023 (Q4 2023) for its East African assets, comprising New Luika Gold Mine (NLGM) and Singida Gold Mine (Singida) in Tanzania and West Kenya Project in Kenya. Group output was 100,571 ounces (oz), 2.6% ahead of the upper end of 2023 guidance of 98,000 oz, consisting of 29,323 oz from Singida and 71,248 oz from NLGM. The new five-year plan announced for Singida forecasts 169,000 oz production over 2023-2027 with potential for expansion.

Virgin Wines 38p £21.2m (VINO.L)
One of the UK's largest direct-to-consumer online wine retailers announces a trading update for the six months ended end of December 2023 (H1 FY24). Total revenue was £34.3m (H1 FY23: £33.6m), representing 2% YOY growth. EBITDA increased by 122% to £1.75m (H1 FY23: £0.8m), representing an EBITDA margin of 5.0% (H1 FY23: 2.3%), driven by revenue growth and stringent cost management. Net cash (which excludes Wine Bank Deposits) improved by £3.4m during the period to £11.0m (December 2022: £7.6m and June 2023: £5.5m). The Board remains confident of the Group's prospects in delivering a positive 2024 performance in line with current market expectations.

22 January 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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