Small Cap Feast

25th April 2022

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What’s Cooking In The IPO Kitchen?

Lift Global Ventures plc to join AQSE Growth Market. The Company’s investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content providers and Technology platforms which facilitate capital raising and/or lending. Mkt Cap and Capital to be raised TBC, expected 29 April.

Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC, expected later in April.

Breakfast Buffet

7digital 0.32p £8.7m (7DIG.L)

The specialist in B2B end-to-end digital music solutions, has signed a new two-year contract worth at least £1m with a pan-Asian consumer services company. The new customer will be using several unique services provided by 7digital’s music-as-a-service platform to deliver an app-based music streaming service to enhance its engagement with its customers. The Company will provide access to its global catalogue, full license compliance management and curation via the 7digital Playlisting Tool. Paul Langworthy, CEO of 7digital, said: “This is a major, multi-year contract for 7digital that further enhances our visibility over our forecast revenues for the next two years. It is an important endorsement of our offering having been awarded by a multinational corporation and after a competitive tender. This win also reflects how brands are increasingly utilising digital music solutions to engage with their customers. We’re pleased to see our pipeline continue to translate to signed contracts and we look forward to updating the market on further progress.”

Botswana Diamonds 1.1p £9.3m (BOD.L)

The diamond explorer, announced the results of a conceptual open pit mine optimisation evaluation on the River Blow on its Thorny River property in South Africa. An analysis of the River Blow and its extension indicates potential open pit options. Assuming mid-range diamond values of $170/ct, mid-range mining costs, a discount rate of 10%, a recovered grade of 40cpht and 1.7M tons of kimberlite mined indicates that a mine is likely to be commercial. The results exclude any additional resources from adjacent targets which will be drilled in the coming months.

Cadence Minerals 17.13p £29.5m (KDNC.L)

Further to the announcement made on the 7 April 2022, Cadence Minerals announced that DEV Mineração S.A’s has completed the sale and shipment of Iron Ore from the Amapa Iron Ore Project. DEV has shipped and sold the fourth batch of iron ore from the stockpiles. The loading of the 48,492 wet tonnes of iron ore sinter fines (approx. 58% Fe) at Companhia Docas de Santana was completed on the 23 April. Iron Ore 62% Fe, CFR China at US$150 per tonne (22/04/2022). Approximately 1.2 Mt of iron ore is currently stockpiled in DEV’s wholly-owned port.

Ixico 38p £18.3m (IXI.L)

The medical imaging advanced analytics company delivering intelligent insights in neuroscience, today provides a trading update ahead of its interim results for the six months ended 31 March 2022. Revenues expected to be £3.9m for six months to 31 March 2022 (H1 2021: £4.9m); Contracted order book of £12.6m as at 31 March 2022 (H1 2021: £19.0m); Strong cash balance of £5.8m (H1 2021: £7.0m), debt free, and operating cash generative; Positive earnings before interest, tax, depreciation and amortisation to 31 March 2022 (H1 2021: £0.9m); Across the first six months of the year, the Company has performed in line with its expectations and the Board continues to expect to deliver a stronger second six months to meet market expectations for FY22.

K3 Capital 245p £180m (K3C.L)

The multi-disciplinary and complementary professional services group advising UK SMEs has announced the appointment of former ManpowerGroup Executive Vice President, Ian Symes, as its new Group Managing Director. Ian joins K3 from ManpowerGroup, where he was Executive Vice President and global leader of the Right Management brand, a HR solutions business employing more than 900 staff across 35 countries with revenues of more than $200m. Ian joins K3 with extensive international experience having led businesses across Europe and North America. Ian will primarily be supporting the Group’s CEO, John Rigby, in leading the operations of K3’s expanding portfolio of businesses. John commented: “Ian brings an incredible wealth of leadership experience in B2B services, growing businesses across different sectors and geographies. We are excited that he joins K3 Capital Group as we accelerate our business, increasing market share and expanding into new services and sectors.” Ian commented on his appointment: “I am very excited to be joining such a forward thinking and rapidly growing company, and I am looking forward to working alongside the existing management teams to help drive the Group to the next level.”

MusicMagpie 50p £53.9m (MMAG.L)

The re-commerce business in the UK and US specialising in refurbished consumer technology, has entered into a contract to sell consumer electronic products on Back Market, the online marketplace dedicated to refurbished devices. The launch of musicMagpie’s products will occur on the Back Market UK marketplace by the end of this month and on the Back Market US marketplace in mid-May 2022. In addition to mobile phones, the agreement includes tech categories such as games consoles, tablets, wearables and MacBooks. The launch adds an additional sales channel for musicMagpie’s products and will supplement existing sales through its own websites as well as Amazon and eBay.

Polarean Imaging 56p £119m (POLX.L)

The medical imaging technology company, with an investigational drug device combination product using hyperpolarised 129 Xenon gas to enhance magnetic resonance imaging in pulmonary medicine, announces it has received an additional research unit order for a Xenon Polariser 9820. The system will be installed in the Center for Pulmonary Imaging Research at the Cincinnati Children’s Medical Center (CCHMC). The Company holds a Small Business Innovation Research grant with the Cincinnati Children’s Center, awarded by the National Heart, Lung and Blood Institute in April 2017. CCHMC is a non-profit academic medical center, which is distinguished and globally renowned for paediatric teaching and research, and is one of the Company’s longest key clinical collaborators. A key focus of the collaboration is to lead the field of paediatric pulmonary imaging through advanced imaging techniques and multi-nuclear capabilities, including hyperpolarised 129 Xenon gas.

Premier African Minerals 0.32p £62.1m (PREM.L)

Premier African Minerals Limited has signed a binding Joint Venture Agreement with Li3 Resources Inc. whereby Li3 Resources will acquire a 50% interest in Premier’s hard-rock lithium assets located in the Mutare Greenstone Belt in Zimbabwe. Premier acquired these claims in June 2020 (see RNS 10 June 2020). The assets are held by Premier’s wholly-owned subsidiary LicoMex Private Limited. The Li3 Project holds a number of prospective claim blocks in the Mutare Greenstone Belt, an area prospective for lithium and gold. This JV Agreement facilitates exploration activities that are funded independently of Premier’s Zulu Lithium Private Limited operations. Li3 Resources has until 31 December 2022 to acquire the 50% interest in the Li3 Project by spending US$250k in further exploration works.

Union Jack Oil 28.75p £32.4m (UJO.L)

The UK focused onshore hydrocarbon production, development and exploration company, announced that material landmark net revenues of US$5m have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin. Union Jack holds a 40% economic interest in this producing hydrocarbon development. Landmark US$5m revenues generated to Union Jack since re-commencement of production during August 2021. Well continues to produce under natural flow with zero water cut. Site upgrades ongoing. As at 22 April 2022, the Company’s cash balances and short term receivables stand at in-excess of £7.05m. Net revenues of £2.4m registered to date during 2022, already comfortably exceed 2021 year-end unaudited revenues of in-excess of £1.8m. The Company is covered for all operational and all contracted or planned CAPEX costs, including any budgeted drilling activities. Debt free. Company solicitors progressing legal work on Capital Reduction exercise to enable the Company to execute share buy-back programme or dividend payment.

Zoo Digital 119p £105.1m (ZOO.L)

The provider of end-to-end, cloud-based localisation and media services to the global entertainment industry, today provides a pre-close trading update for the financial year ending 31 March 2022 in advance of full year results expected to be announced on 6 July 2022. Following the announcement on 22 March 2022, where revenue was forecast to be at least $65m and EBITDA at least $6.5m, the Group today further upgrades its expectations for the year ended 31 March 2022. Revenue for the full year is now expected to be approximately $70m (FY21: $39.5m), a significant acceleration of organic growth over the prior year of 78%. EBITDA (adjusted for share-based payments) is also expected to be materially ahead of the previously upgraded expectations at approximately $8m, an increase of approximately 78% on the prior year (FY21: $4.5m). Net cash on 31 March 2022 was $5.4m (FY21: $2.9m), which reflects strong cash generation despite significant investment to expand capability and underpin future revenue growth. The Company intends to provide a further update on its outlook for the FY23 financial year with its full year results on 6 July 2022.

25 April 2022
*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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