Small Cap Feast

22th June 2023

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Industrials REIT has left the Premium Segment of London Stock Exchange. 

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

Artisanal Spirits Company 92.5p £64.7m (ART.L)
The owner of The Scotch Malt Whisky Society (SMWS), the curator and provider of premium single cask Scotch malt whisky and other spirits for sale primarily online to a discerning global membership, announces that SMWS won a record haul of five Gold medals and one Silver in the International Spirits Challenge, which promotes outstanding quality spirits from across the globe and receives thousands of entries from over 70 countries worldwide. The Company’s Gold award-winning entries included Cask No. 36.193 Juggling Oranges in a Humidor and Cask No. 94.31 Ice Cream by Candlelight. The accolade is recognition of the Company’s global strategy, plan and in-market delivery in 2022.

EQTEC 0.173p £20.2m (EQT.L)
The technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation, confirms that its Market Development Centre (MDC) in Gallina, near Castiglione d'Orcia, Tuscany, Italy, completed handover protocols and transfer of plant operations to EQTEC Italia MDC srl. It is the first of EQTEC's MDCs to be operational. Additionally, Italia MDC is pursuing refinance of the plant asset by an Italian bank, which is expected to complete during Summer 2023.

Fadel Partners 147p £29.4m (FADL.L)
The brand compliance and rights and royalty management software provider, announces its results for the year ended 31 December 2022. Revenue was up 10% to $13.2m (2021: $12.0m). Recurring revenue increased 34% to $8.7m (2021: $6.5m) reflecting the first full year of contribution from IDS of £1.1m ($1.3m). EBITDA loss was $1.5m (2021: $0.93m in EBITDA profit), due to the increased expenditure. Following the IPO in April 2023, cash balance exceeded $10.0m. Trading in FY23 has been in line with expectations and, with a growing pipeline of prospective clients.

Firering Strategic Minerals 7.25p £6.5m (FRG.L)
The exploration company focusing on critical minerals, reports the definition of multiple lithium in soil anomalies and a planned auger drilling programme following the large-scale Phase II soil sampling programme at the Atex Lithium-Tantalum Project in Côte d'Ivoire. Phase II Programme was undertaken in conjunction with Ricca Resources Limited, an Australian diversified minerals company. Several lithium in soil anomalies occur adjacent to and along similar orientations to the Spodumene Hill lithium occurrence where previous drilling returned significant intersections, including an oblique intersection with an apparent width of 64m at 1.24% Li2O and 25m at 1.39% Li2O. Pending results of the Phase I auger programme, further auger infill drilling on a nominal 80m x 20m grid along the defined pegmatite trends planned to define targets ahead of deeper drilling below the depth of weathering for mineralisation potential.

Good Energy Group 175p £29.5m (GOOD.L)
The renewable electricity and energy services provider, announces that it has acquired the entire issued share capital of Wessex EcoEnergy Limited, a UK based solar installation business, on a debt free, cash free basis for an initial consideration of £2.5m. Building on its acquisition of Igloo Works in December 2022, this acquisition represents a further milestone in delivering on Good Energy's strategy to expand its capability in decentralised energy services, complementing its established energy supply business and heat pump installation capability. It also supports Good Energy's ambition to help one million customers by 2025.

IOG plc 4.35p £22.8m (IOG.L)
The developer and producer of indigenous offshore gas via co-owned Saturn Banks production infrastructure, confirms that bondholders controlling 72.8% of the Voting Bonds (representing 100% of the votes casted) have now voted in favour of the proposed Bond amendments as laid out in the RNS of Friday 16th June. The proposed short-term amendments include the waiver of minimum Interest Cover Ratio requirement, the deferral of interest payment date from 20 June 2023 to 31 July 2023 and the waiver of cross-default until 31 July 2023 regarding the subordinated LOG convertible loan note.

Longboat Energy 21.5p £12.2m (LBE.L)
The emerging full-cycle E&P company provides an update on the creation of Longboat JAPEX Norge AS (the Joint Venture). The Norwegian Ministry of Petroleum and Energy has given its approval to the formation of the Joint Venture. Completion of the transaction is now expected to occur in the first half of July 2023. In May 2023, the Company announced that agreement had been reached with Japan Petroleum Exploration Co., Ltd (JAPEX) to make a significant investment into its Norwegian subsidiary, Longboat Energy Norge AS (Longboat Norge), to form a joint venture. Under this agreement, JAPEX will invest in cash of up to US$50m for 49.9% of Longboat Norge and provide the Joint Venture with a US$100m Acquisition Financing Facility to finance acquisitions and associated development costs.

Poolbeg Pharma* 8.4p £42.0m (POLB.L)
The clinical-stage biopharma company focusing on infectious and other prevalent diseases with high unmet medical needs, announces an update on its Oral Vaccine Programme following the award of non-dilutive grant funding by the Irish Government's Disruptive Technologies Innovation Fund (DTIF) in November 2022, as part of the Poolbeg led EncOVac Consortium. Having finalised the research plan and all consortium members completing the Consortium and Grant Agreements, the EncOVac Consortium is now entering the next phase to commence the validation of the encapsulation process. The validation is expected to complete in H2 2023. Poolbeg's Oral Vaccine Programme will possess the capability to generate vaccines for a wide range of diseases and represents a significant commercial opportunity.

Roquefort Therapeutics* 7.13p £9.2m (ROQ.L)
The biotech company focused on developing first-in-class medicines in the high value and high growth oncology market, announces the progress of its anti-cancer RNA oligonucleotide program targeting Midkine expressing cancers producing >90% in vitro efficacy (at the mRNA level) in human liver and neuroblastoma cancer cells. The Company's anti-cancer RNA oligonucleotide program will now progress into in vivo studies which are planned to complete in Q4 2023. Liver cancer incidences are forecast to increase to one million new patients per year by 2025. The 5-year survival rate is only 21% because the existing medicines have limited effect. This type of cancer is a key focus for Roquefort’s portfolio of Midkine targeting medicines including antibodies, mRNA and the anti-sense oligonucleotides.

Volex Group 277.75p £443.5m (VLX.L)
The integrated manufacturer of critical power and data transmission products, announces that it has agreed to acquire 100% of Murat Ticaret Kablo Sanayi A.Ş. (Murat Ticaret), a manufacturer of complex wire harnesses headquartered in Turkey for a total consideration of up to approx. EUR178m, together with a placing and retail offer to raise gross proceeds of approximately £60m in aggregate. The enterprise value of EUR178m implies an acquisition multiple of 5.3x Murat Ticaret's CY2022 EBITDA.

22 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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