Small Cap Feast

24th November 2023

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What’s Cooking In The IPO Kitchen?

23 November — Substrate Artificial Intelligence ITF: An artificial intelligence Company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health announces its Admission to the Aquis Growth Market. Expected Admission date is on or around the 7 December 2023.

15 November: Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore Admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.

Breakfast Buffet

Aurrigo International 105p £47.8m (AURR.L)
The international provider of transport technology solutions, has signed an agreement with the Digital Testbed Cargo Project Consortium (DTAC) to deploy the Company's Auto-DollyTug at Stuttgart Airport for autonomous cargo transport trials from the terminal to the deck of an aircraft. The project is funded by the German Federal Ministry of Digital and Transport (BMDV) and will be carried out under the academic leadership of the Frauhofer IML (Institute for Material Flow and Logistics) and the Frankfurt University of Applied Science.

BSF Enterprise 9.26p £9.6m (BSFA.L)
The biotech company and owner of UK-based clinical and cellular agriculture company 3D Bio-Tissues (3DBT), provides an update on the Company's partnership progress across several of 3DBT's product verticals. 3DBT announces that it has entered into a proof-of-concept contractual agreement with a cosmetic company, which will test the suitability of the Company's proprietary lipopeptide product, Etsyl™. In September 2023, 3D Bio-Tissues announced that it has been awarded a EUR612k grant from the European Institute of Innovation and Technology (EIT Food) to upscale the production and sales of its proprietary serum-free media, City-Mix™. The Company has also hired an experienced Technical Sales Specialist to strengthen its sales team.

Coro Energy* 0.228p £6.5m (CORO.L)
The South East Asian energy company with a natural gas and clean energy portfolio announces, in anticipation of and in preparation for the rollout of the recently announced 50MW rooftop solar project in Vietnam, that the Company has restructured its arrangements with its partners in Vietnam, increasing its equity interest in its Vietnamese venture from 85% to 92.5%. Further to an agreement dated 23 November 2023 Invest Gains Viet Nam Company Limited, the Company's partner in Vietnam inclusive of Vinh Phuc Energy has agreed to sell to the Company 7.5% of its 15% equity interest in Coro Renewables VN1 Joint Stock Company. The consideration for this transaction is up to approximately US$290k based on the current exchange rate, comprising of an immediate cash payment of US$100k. A further £150k in shares of the Company priced at £0.004 per share (a 67% premium to the closing middle market price on 21 November 2023), alongside a further contingent consideration of £50k in shares of the Company at that same price in the event that Coro achieves 100MW of solar generation in Vietnam.

First Class Metals 6.35p £5.1m (FCM.L)
The metals exploration company focused on the discovery of economic metal deposits across its extensive Canadian - northwest Ontario, land holding announces that it has completed a placing of New ordinary shares at a price of 6 pence per Placing Share (Placing Price), raising gross proceeds of £603k. The Placing Price represents a 16% discount to the mid-market closing price of its shares on 21 November 2023. The proceeds will primarily be used to develop a drilling program at the Zigzag lithium/Critical Metals property in Northern Ontario and the Company intends to repay in full the CLN, which stands at £500k drawn.

Ilika 42.5p £67.5m (IKA.L)
The developer of solid-state battery technology, provides a trading update for the six months ended 31 October 2023 (H1 FY24). The Company expects to announce revenue of £1.3m (H1 FY23: £0.2m) as a result of increased grant funding received. EBITDA loss, excluding share-based payments, is expected to be £1.9m (H1 FY23: loss of £4.1m). Cash and cash equivalents at the period end totalled £13.2m (H1 FY23: £18.6m). Ilika has completed the dispatch of the key equipment required to manufacture Stereax batteries to Cirtec and the Company confirmed the achievement of its D4 technical milestone for its Goliath programme. Ilika continues to interact with global automotive OEMs, with a view to sharing Goliath P1 prototypes for evaluation in H1 CY 2024.

Mercantile Ports & Logistics 2.65p £9.4m (MPL.L)
The Company that is operating and continuing to develop a port and logistics facility in Navi Mumbai, Maharashtra, India announces that it has been informed that Lord Howard Flight the Company’s Non-Executive Director is stepping down from the Board with immediate effect due to reasons of ill health.

Mothercare 4.78p £27.0m (MTC.L)
The British heritage international brand and franchise operator that connects with the parents of newborn babies, announces the unaudited half year results to 23 September 2023 (H1 FY24). International retail sales by franchise partners totalled £137.2m, a decrease of 15%. Adjusted EBITDA of £3.6m (H1 FY23: £3.2m) increased by 12%, reflecting tighter control of costs. Net debt increased to £15.8m (at 24 September 2022) and the Company held cash of £4.2m at the end of the period. In the interim the Company remain focused on restoring critical mass and monetising the Mothercare global brand IP to further free up cashflow

RUA Life Sciences 28p £6.2m (RUA.L)
The holding company of a group of medical device businesses focused on the long-term implantable biostable polymer (Elast-Eon™), provides an unaudited trading update for the six-month period ended 30 September 2023 (H1 FY24). Group revenue decreased to £794k, representing a decline of 28% (H1 FY23: £1,104k). The Group held cash of £0.5m on 30 September 2023 (31 March 2023: £1.5m). With a catch-up in order shipments together with the receipt of R&D Tax Credits of £381k, the cash position at 21 November 2023 stood at over £1.0m. Group losses before tax are expected to increase by 22% to £1.4m (H1 FY23: £1.1m). The Group is confident that full-year revenues will align with management expectations.

Team 17 Group 182.5p £266.1m (TM17.L)
The games label, creative partner, developer and publisher of independent video games, educational entertainment apps for children, announces a trading update for the year ending 31 December 2023. The Group expects to deliver full year adjusted EBITDA of at least £28.5m, which includes non-cash title impairments of up to £11.5m. The management believes that the Group is well positioned with strong traction across its new release and back catalogue titles, and currently expects FY23 revenues to be modestly ahead of current market expectations. Management expects to see an improved underlying trading performance in FY24 compared to FY23.

Trakm8 Holdings 15p £7.5m (TRAK.L)
The telematics and data insight provider, announces its unaudited results for the six months ended 30 September 2023 (H1 FY23). Revenue decreased to £8.5m (H1 FY22: £9.0m). Profit before tax was £13k (H1 FY22: loss £2.41m) and profit after tax was £0.10m (H1 FY22: loss £1.78m). Net bank debt was £5.57m (H1 FY22 £6.24m). The Company has secured a number of additional customers; however, there has been a reduction in total connections. The Board expects to meet market expectations.

24 November 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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