Small Cap Feast

24th January 2024

Dish of the day
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Dish Of The Day:


Ten Entertainment Group has left the Premium Segment of the Main Market on the LSE

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

Atlantic Lithium 20.5p £129.2m (ALL.L)
The African-focused lithium exploration and development company targeting to deliver Ghana's first lithium mine, announce that, in line with the non-binding Heads of Terms (Strategic Investment) announced on 8 September 2023, the Minerals Income Investment Fund of Ghana (MIIF) has completed a subscription for 19,245,574 Atlantic Lithium shares (Subscription Shares) at a price of US$0.2598 per share, for a value of US$5m. The Subscription Shares equate to 3% of the enlarged issued share capital of the Company. MIIF's US$5m investment forms part of its agreed total US$32.9m Strategic Investment in the Company and its Ghanaian subsidiaries to expedite the development of the Project and the broader Cape Coast Lithium Portfolio in Ghana towards production.

Frenkel Topping Group 49p £62.7m (FEN.L)
The specialist financial and professional services firm operating within the personal injury and clinical negligence marketplace, provides a trading update for the year ended 31 December 2023. Revenue increased by 32% to £32.8m in FY23, driven by acquisition and organic growth. Adjusted EBITDA is expected to be £8m. Assets Under Management (AUM) up 12% to £1,335m (2022: £1,187m). The Company had £2.4m of net cash at the year end. FY24 has started strongly with a number of AUM opportunities in the pipeline. Post period end the Company has signed a new £7.5m Revolving Credit Facility with Santander.

Hummingbird Resources 8.4p £67.1m (HUM.L)
Hummingbird notes the announcement made by Pasofino Gold Limited (Pasofino) regarding a non-brokered private placement totalling approximately US$2.33m (the Placement), inclusive of a US$2m investment by Hummingbird. This investment increases Hummingbird's shareholding in Pasofino to 53%. As previously disclosed, a portion of the US$28.1m recently raised by Hummingbird was earmarked for advancing the Dugbe Gold Project in Liberia, bringing this asset closer to production. The funds from the Placement will be utilised to optimise the 2022 Definitive Feasibility Study and further advance the project. Hummingbird and Pasofino have identified several opportunities to maximise the value of Dugbe and reduce the overall project capital expenditure.

Lords Group Trading 40p £66.2m (LORD.L)
The distributor of building materials in the UK provides a trading update for the year ended 31 December 2023. Subject to audit, the Group expects to report FY23 revenue of £463m, up 3% (FY22: £450m) and FY23 adjusted EBITDA of approximately £26.6m, down 11% (FY22: £30.0m), in line with current market expectations. The trading demonstrated Lords' resilience and capability to deliver growth. Lords has made steady operational progress across both Merchanting and Plumbing & Heating divisions. Furthermore, seven additional sites across the UK have been added through acquisitive and organic growth, generating an expected £25m of annualised revenues at maturity. The Group continues to take a prudent approach to FY24.

Molecular Energies 36.5p £3.8m (MEN.L)
The international energy company announces its intention to raise at least £500k pursuant to a placing of not less than 991,851 new ordinary shares and a subscription of not less than 436,714 ordinary shares at a price of 35 pence per share. The total number of new ordinary shares to be issued pursuant to the Placing and Subscription, being not less than 1,428,565 new shares, represent not less than approximately 13.8% of the Company's issued share capital. The net proceeds will provide working capital as the Company continues the spin-out of its alternative energy division, Green House Capital Group plc, and pursues new business opportunities.

NAHL Group 63.75p £29.9m (NAH.L)
The UK marketing and services business focused on the UK consumer legal market, provides a trading update for the year ended 31 December 2023. Based on unaudited results, the Board expects to report revenues of approximately £42.2m (2022: £41.4m), 2% ahead of the prior year. Operating profit is expected to be slightly ahead of market expectations at c. £4.1m (2022: £4.8m). The Group continued to generate cash flow through the second half of the year and as a result has been able to reduce net debt, ahead of market expectation. Net debt at 31 December 2023 was £9.7m, down 16% from £11.5m at 30 June 2023.

Plexus Holdings 16.25p £17.1m (POS.L)
The oil and gas engineering services business and owner of the proprietary POS-GRIP® method of wellhead engineering, provides an overview of its strategy following the signing of a new IP Licence Agreement with SLB and confirms receipt of the US$5.2m Licence Agreement payment. Plexus will use the funds to build new inventory for the historical core jack up exploration rental wellhead and associated mudline hanger sales business, a sector Plexus has re-entered in co-operation with SLB. Through this Licence Agreement, SLB has joined TechnipFMC in acquiring long-term rights to certain applications of POS-GRIP technology.

Premier African Minerals 0.195p £51.1m (PREM.L)
The multi-commodity mining and natural resource development company, provides an update on further assay results and current progress on Zulu Lithium and Tantalum (Zulu). CEO George Roach commented: "ZDD162 and ZDD163 are very pleasing results coming from the Southeast zone under development which is not part of the current pit operations. This Southeast zone appears to be Spodumene Quartz Intergrowths (SQI) dominant with more than 90% of the mineralisation associated with spodumene.” All components for the thickener are now either at site or on route. The final components and the ball mill are all expected to be loaded for planned departure for site on 29 January 2024. The mill is expected to be factory run on the 26 January 2024 immediately prior to loading.

Tern Plc 1.95p £7.6m (TERN.L)
The investment company specialising in supporting high growth, early-stage, disruptive Internet of Things (IoT) technology businesses, announces that it has raised £400k, before expenses, through a placing of 20,000,000 new ordinary shares (Placing Shares) at a price of 2.0 pence per new Ordinary Share (the Issue Price). The Placing Shares will represent approximately 4.9% of the Company's enlarged issued share capital following the Placing. The Issue Price represents a discount of approximately 30.4% to the mid-market closing price of 2.875 pence per share on 23 January 2024. The net proceeds will be used to invest further in one or more of Tern's portfolio companies in the near term and for general corporate purposes.

Verici Dx 8.875p £15.1m (VRCI.L)
The developer of advanced clinical diagnostics for organ transplant, announces a proposed placing (the Placing), via an accelerated bookbuild at a price of 9.0 pence per ordinary share to raise gross proceeds of £5.5m. The placing price represents a discount of 11.1% to Verici's closing mid-price on 23 January 2024. The Placing will involve the issue of not less than 61,111,111 new Ordinary Shares, representing at least 35.9% of the existing issued ordinary share capital of the Company. In addition to the Placing, it is proposed that there will be a separate conditional retail offer to existing shareholders.

24 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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