Small Cap Feast

28th July 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 12 July: Substrate Artificial Intelligence, 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, intends to join the Access Segment of the AQSE Growth Market.

Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Announced ITF 3 July: Metals One Plc, a company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper intends to join the AIM Market. The Company will have interests in the Paltamo and Rautavaara projects (nickel, copper, zinc) in Finland (together the Black Schist Project) and the Brownfield Råna Nickel project in Norway (Brownfield Rana Project). These projects represent opportunities to develop deposits of scale, in stable jurisdictions, well situated to supply fastest growing European electric vehicle and energy storage markets. The Company aims to raise £2.5m at 5 pence per share with an anticipated market cap of £10.72m. Delayed - Expected Admission 31 July 2023.

Breakfast Buffet

AFC Energy 18.14p £135.4m (AFC.L)
The provider of hydrogen powered generator technologies, and Speedy Hire Plc (LON: SDY), a UK tools and equipment hire services company, announces the proposed launch of a dedicated hydrogen powered generator plant hire business. The collaboration will take the form initially of AFC Energy providing Speedy with its existing H-Power Tower Generators on a cross-hire basis on commercial terms. It is the intention of Speedy and AFC Energy to form a 50:50 joint venture (JV), with detailed terms to be agreed between the parties. The JV would provide a full-service hire model coordinating the generator equipment, maintenance, technical support, site preparation and fueling. It is proposed that the AFC Energy equipment will be available for hire exclusively from the JV through Speedy for an initial 3 year period. Once established, the JV will initially purchase 30kW H-Power Generators from AFC Energy for a consideration of c.£2m in aggregate. The first of these systems are expected to be available later this year.

AQRU 0.10p £1.27m (AQSE: AQRU)
The incubator specialising in opportunities in decentralised finance (DeFi), announces its unaudited financial results for the six months ended 30 April 2023 (H1 2023). Revenue decreased to £106k (H1 2022: £554k) and AQRU reported a loss before tax of £1.263m (H1 2022: £2.316m). Net cash of £7.4m as at 30 April 2023 (30 April 2022: £30.2m) of which £5.8m (30 April 2022: £24.1m) related to deposits by customers on the online retail platform. During the period, the Company completed business streamlining cutting headcount and marketing expenses. AQRU also increased the minimum account size to $250k for our AQRU app reducing assets on the platform and streamlining customer service costs. The AQRU retail app has struggled to gain further traction in the challenging digital asset environment and the board are looking at potential avenues to realise any value contained in this asset which could be either via a sale or fundraising for this business unit. The board continue to explore options and will update the market in due course.

DP Poland 7.75p £55.2m (DPP.L)
The operator of Domino's pizza stores and restaurants across Poland and Croatia, announces that as a result of Andrew Rennie's appointment as an Executive Director of Domino's Pizza Group Plc., he will resign from the Board of DP Poland as a Non-executive Director with effect from 1 October 2023. Andrew is joining Domino's Pizza Group Plc., who operate and franchise Domino's stores in the UK and the Republic of Ireland, as Chief Executive Officer with effect from 1 August 2023. As a result of his resignation the Board have agreed that Andrew will no longer subscribe for a further 3,191,489 Second Subscription Shares at 8 pence, as contemplated following the acquisition of All About Pizza d.o.o on 29 July 2022. The Board will commence a process to identify a replacement independent Non-Executive Director.

East Imperial 1.45p £4.9m (EISB.L)
The purveyor of ultra-premium beverages, announces a partnership with Air New Zealand. Air New Zealand launches the first of its signature drinks onboard its international network. In partnership with the Company, the new drinks will feature in Business Premier Cabins on Air New Zealand's New York and Chicago routes. It will be available onboard from late August 2023. The seasonal drinks are a nod to local ingredients, the first drinks are gin-based cocktails but can also be served as an alcohol-free option. The airline will seek customer feedback on the new cocktails and look to introduce other signature cocktails on a seasonal rotation.

Inspecs Group 120.5p £122.5m (SPEC.L)
The designer, manufacturer, and distributor of eyewear, announces a trading update for the six months ended 30 June 2023 ahead of reporting its interim results on 7 September 2023. Trading for the first half of 2023 is in line with management expectations, with revenue increasing 6% to £111.1m (H1 2022: £104.8m) and 2.3% to £107.2m on a constant currency basis. Net debt (excluding leases) decreased by £5.0m to £22.6m (31 December 2022: £27.6m). During the period, the Group invested £0.9m on construction of a new manufacturing facility in Vietnam and paid a further £2.2m of deferred and contingent consideration relating to the EGO and BoDe acquisitions. The Board remains confident in delivering full year results in line with market expectations.

Invinity Energy Systems 48.3p £92.2m (IES.L)
The global manufacturer of utility-grade energy storage, announces the sale of a 0.2 MWh Invinity VS3 flow battery system to VSUN Energy, a wholly owned subsidiary of Australian Vanadium Limited (ASX: AVL), for use by leading Australian power provider Horizon Power. The microgrid project will see Horizon Power, a state government owned energy utility company, evaluate the role that Invinity's vanadium flow batteries can play in reducing fossil fuel consumption for distributed electricity networks. The battery will be located at a Horizon power site in Kununurra, Western Australia. VSUN will undertake the installation, commissioning and ongoing maintenance of the energy storage system. Delivery is expected to commence in late 2023. The contract was included as part of the Company's Base category in its most recently disclosed commercial pipeline.

Pantheon Resources 11.73p £106.4m (PANR.L)
The oil company developing its 100% working interest in the Ahpun and Kodiak Fields provides an operational update and refined management estimates of preliminary development costs for the Ahpun field. The Company expects to receive an Independent Expert Report from Netherland, Sewell & Associates on recoverable resources from the Kodiak field in August 2023. The primary contractors have now confirmed availability of sufficient pumping horsepower at acceptable service rates, and a suitable workover rig has been identified, which, subject to execution of contracts, would have a planned date for mobilisation in September 2023. However, the precise start-up of operations will be refined nearer the time. Management modelling of the economics for 20 well development pads estimate robust returns with valuations of $6-$8 /bbl and rates of return of 33%-53% at ANS prices of $70-$80 /bbl ANS respectively.

Rotala 44.5p £13.8m (ROL.L)
The provider of transport solutions across the UK, announces its unaudited interim results for the six months ended 31 May 2023. Revenues increased approximately 35% to £52.6m (H1 2022: £39.0m); with Commercial and Contracted Revenue of £48.2m, Charter Revenue of £0.6m and Grants and subsidies £3.8m. Profit before tax and exceptional items £865k (2022: £4k). Net debt at 31 May 2023 of £45m (2022: £43m), although post period the sale of Bolton depot completed for £12.7m cash, reducing Net debt to £32m. Interim dividend declared of 0.5p per share (2022: 0.5p) and Normalised earnings per share of 1.43p (2022: 0.01p). Passenger numbers remain at 90%-95% of pre-COVID levels. Trading remains in line with the Board's expectations for FY 2023.

Science in Sport 14.75p £25.4m (SIS.L)
The performance nutrition company serving elite athletes, sports enthusiasts, and the active lifestyle community, announces the resignation of Tim Wright, Non-Executive Director and the appointment of Paul Richardson as a Non-Executive Director, both with immediate effect. Accordingly, Tim Wright will not seek re-election at today's Annual General Meeting. Paul Richardson is a board representative of Otus Capital Management, which holds 19,552,540 ordinary shares in the Company. Paul Richardson is a Solicitor by qualification and after a period in private practice moved in house as Head of Legal and Business Affairs before moving into senior management roles which have included Chief Executive and Chairman of private and listed companies, the most recent of which was Chairman at AIM company Frenkel Topping Group Plc.

Sovereign Metals 27p £143.4m (SVML.L)
The mineral exploration Company provides its quarterly report for the period ended 30 June 2023. Subsequent to the end of the quarter, Rio Tinto made an investment of A$40.4m in Sovereign resulting in an initial 15% shareholding plus options to increase their position to potentially 19.99% within 12 months. Investment proceeds will be used to advance the Kasiya Rutile-Graphite Project, a potential industry-leading major source of critical raw materials from Malawi. Sovereign is in the final stages of the Pre-Feasibility Study (PFS) for Kasiya, with advancements made throughout the quarter. The Company have also completed initial downstream testwork, which demonstrated superior qualities and excellent suitability as feedstock for use in lithium-ion batteries.

28 July 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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