Small Cap Feast

24th October 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Eastinco Mining (ATN.L) has joined AIM
Off The Menu:
Ted Baker has left the London Stock Exchange

What’s Cooking In The IPO Kitchen?

Ithaca Energy, a UK independent exploration and production company focused on the UK North Sea, intends to join the Premium Segment of the Main Market. Ithaca Energy is one of the largest independent oil and gas companies in the UKCS, ranking 2nd by resources and 3rd by production. During the six months ended 30 June 2022, Ithaca Energy’s average daily production (oil and gas) on a net working interest basis was c. 66.7 kboe/d, the Group’s revenue was c.$1,338m, Adjusted EBITDAX was c. $907m, profit after tax was c. $1,558m.

BWP REIT, a newly formed single asset company, announces its intention to raise £35m through the issue of 35m ordinary shares at the issue price of £1 per share, to acquire Bridgewater Place, an office-led mixed use property situated in central Leeds and valued at £63m. BWP REIT will apply for listing on the Wholesale Segment of the International Property Securities Exchange (PSX). Expected 27 October 2022.
World Chess plc, a leading chess organisation, intends to join the Main Market. World Chess Plc is the holding company of a group which aims to promote the mass market appeal of chess globally through the commercial offering of chess related activities. Euro 8m to be raised. Expected November 2022.

OTAQ plc, (OTAQ.L) the technology company with three divisions: Aquaculture, Geotracking Devices and Offshore intends to delist from the Main Market and join the AQSE Growth Market. OTAQ is developing adjacent technologies to take advantage of a number of growth initiatives that will broaden the Group’s current product portfolio in the global marine aquaculture sector and facilitate entry and growth into the geotracking devices sector. Expected 9 November 2022. Raising a total of £3.6m, £2m raised.

Cooks Coffee Company ltd, an international coffee focused café chain which currently owns the Esquires Coffee and Triple Two Coffee Brands, intends to join the AQSE Growth Market. The Company is the 4th largest coffee focused café chain in the UK. Cooks Coffee is currently listed on the New Zealand Stock Exchange. Raising £1.5m through a rights issue in New Zealand and a private placement. Expected 2 November 2022.

Guanajuato Silver Company ltd, a fast growing silver producer in Mexico currently listed on the TSX Venture Exchange, intends to join the AQSE Growth Market. The Company currently owns five precious metals mines and three production facilities. GSilver is primarily focused on reactivating past producing silver and gold mines in the state of Guanajuato. Expected 25 October 2022.

TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validation and sourcing of Lateral Flow Tests on a commercial scale. Due 31 October 2022.

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m. Delayed but due in October.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m. Due 3 November 2022.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late October.


Breakfast Buffet

Aferian 83p £69.4m (AFRN.L)

The B2B video streaming solutions company announces a trading update. The Amino business has experienced delays, consequently, device revenues are now expected to be approximately 10% lower than its expectation for the year ending 30 November 2022. This trend is expected to continue into the first half of FY23 as some customer inventory levels remain high to mitigate the earlier supply chain disruptions. Exit ARR and software revenue growth of approximately 15% and 5% respectively (25% and 15% on a constant currency basis) remains in line with original management expectations. The Board now expects Group adjusted operating profit for the year ending 30 November 2022 to be in the range of $7.8m to $8.8m. There will also be a one-off charge of approximately $5.5m for costs incurred in relation to an aborted significant acquisition opportunity. Net cash at 30 November 2022 is expected to be in the range of $2m net cash to $2m net debt.

Cerillion £11.20 £330.2m (CER.L)

The billing, charging and customer relationship management software solutions provider, announces a trading update for the financial year ended 30 September 2022. Revenue is expected to be marginally ahead of market expectations and adjusted profit before tax is expected to be materially ahead of the consensus forecast of £10.1m, as a result of favourable foreign exchange rates, higher resource utilisation, lower net finance costs and lower depreciation and amortisation than anticipated. Net cash at 30 September 2022 is anticipated to close at approximately £20.0m (30 September 2021: £13.2m), also ahead of market expectations.

D4t4 Solutions 240p £96.1m (D4T4.L)

The data solutions provider announces the following trading update for the six months to 30 September 2022. Results are expected to be in line with management expectations, with revenues of approximately £8.1m (H1 FY22: £7.5m) and adjusted losses before tax of approximately £1.3m (H1 FY22: profit £0.1m). Annual recurring revenue increased during the period to £15.8m (31 March 2022: £14m). Of this increase £0.4m arises from customer wins, with £1.4m from the period-end revaluation of ARR contracts in foreign currency. The cash balance at the half year end was robust at £26.2m.

Eneraqua Technologies 305p £101.3m (ETP.L)

The specialist provider of energy and water efficiency solutions, announces the award of a contract to deliver ground source heat pump systems for a new UK social housing client, to be phased over up to 3 years. This new contract win, together with other smaller recent awards across the Group, have an aggregate contract value of up to £35m. These new wins increase the order book, taking cover for its FYJan24 revenue target to 85% (from prior 72%).

Neometals 63.5p £337.6m (NMT.L)

The sustainable battery materials producer announces that the Vanadium Recovery Project (VRP1) in Pori, Finland has been granted an Environmental Permit by the Regional State Administrative Agency for Southern Finland. Permit authorises, subject to conditions, construction and operation of a vanadium recovery plant to produce supply constrained of approximately 9,000tpa vanadium pentoxide in Europe. Neometals is earning a 50% equity interest in an incorporated joint venture to develop VRP1 with an unlisted Australian mineral development company, Critical Metals Ltd.

OptiBiotix Health 17.5p £15.4m (OPTI.L)

The life sciences business developing compounds to tackle obesity, cardiovascular disease and diabetes, announces that its exclusive distributor Nahdi Medical has received approval from the Saudi Food and Drug authority (SFDA) for GoFigure shakes and bars containing patented weight management aid SlimBiome®. The SFDA approval originally envisaged for early 2022, is of strategic importance as it facilitates the registration processes in the other GCC (Gulf Cooperation Council) countries. As a direct consequence, OptiBiotix has received the first purchase order from Nahdi.

Petrel Resources 1.35p £2.1m (PET.L)

The oil exploration company announce that it has arranged a placing with Monecor (London) Ltd trading as OvalX to raise £250k before expenses via the issue of 20,833,333 new ordinary shares at a price of 1.2p per Placing Share. Each Placing Share has 1 warrant attached with the right to subscribe for one new ordinary share at 1.8p per new ordinary share for a period of 2 years. The proceeds of the placing will serve as additional working capital, as Petrel’s board continues to assess new projects in Iraq and advance its Ghanaian interests.

Sareum Holdings* 147.5p £100.4m (SAR.L)

The biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces its audited results for the year ended 30 June 2022. Sareum reported a loss on ordinary activities of £2.2m (2021: loss of £1.5m), reflecting the increased R&D investment required for late preclinical development. Throughout the period £3.6m was raised through subscriptions. Cash at the bank as of 30 June 2022 was £4.3m. Post period, a Clinical Trial Application for a Phase 1a/b study with SDC-1801 has been submitted to the Medicines and Healthcare products Regulatory Agency (MHRA). Sareum plans to initiate Phase 1 clinical trials by the end of 2022 in healthy subjects, with a study in psoriasis patients planned for 2023.

SDI Group 117p £179.4m (SDI.L)

The designer and manufacturer of scientific and technology products for digital imaging, sensing and control applications, announces on 21 October 2022 the acquisition of Fraser Anti-Static Techniques Limited (Fraser), a UK manufacturer of anti-static equipment. Total consideration is estimated at £13.0m, net of £3.9m excess cash acquired, consisting of initial consideration of £15.4m (including £3.4m of excess cash) and the balance payment of £1.5m in cash (including £0.5m of excess cash) shortly after completion, dependent on the net assets of Fraser delivered at completion. The net assets include freehold ownership of Fraser’s three manufacturing units, valued at approximately £1.76m. The acquisition is expected to be enhancing in the current year.

ValiRx 15.5p £14.0m (VAL.L)

The life science company focusing on early-stage cancer therapeutics and women’s health, announces today the formation of a new partially-owned subsidiary company, Cytolytix Limited, and that Cytolytix has signed an IP License Agreement with King’s College London. Cytolytix has been established to progress the triple negative breast cancer project, CLX001, through preclinical development to a stage of readiness for clinical trials. ValiRx holds 60% of the shares in Cytolytix. The remaining 40% is split between King’s College London (20%), and the two academic inventors of CLX001, Martin Ulmschneider and Charles Chen.

24 October 2022
*A corporate client of Hybridan LLP

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