Small Cap Feast

29 November 2021

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What’s Cooking In The IPO Kitchen?

Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly office space, a c1,100 space car park and commercial retail spaces that include a Tesco Metro unit on the ground floor. The Capital Building is 82% let with a weighted average unexpired lease term of 22 years (based on space currently let) to five tenants, including a Government-backed entity and a global insurer. Timing tbc, early 2022.

Homes for People – HOPE plc – is drawing up plans to list on the specialist real estate exchange IPSX. HOPE said it had identified a pipeline of suitable homes that it would seek to acquire after its fundraising of £150m. HOPE believes its ability to offer inflation-linked rental income, which will be distributed to investors on a quarterly basis, will prove attractive. Timing tbc, early 2022.

Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer and timing TBA

RentGuarantor Holdings PLC provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector. The rent guarantee service is an online service where applications can be managed on a secure and bespoke digital platform designed and built by RentGuarantor Holdings PLC. Due to join the Aquis Stock Exchange on 8 Dec.

Windward to join AIM. Windward is a leading predictive intelligence company, fusing artificial intelligence (AI) and maritime expertise seeking to digitalise the global maritime industry. As at 30 September 2021, the Company had 120 permanent employees and had an annual contract value of US$19.7m, with 99 per cent. of the revenue being subscription based. Offer and timing TBC.

Ondine Biomedical to join AIM. Ondine Biomedical Inc. is a life sciences company, incorporated in Canada, focusing on the development of photodisinfection-based therapies to provide solutions to drug-resistant infections. Capital to be raised: £22.2m ($30.0m). Anticipated Mkt Cap on Admission at the placing price: £103.9m ($140.1m). Due 6 Dec.

Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately 1.7m before expenses. First dealings in the shares are expected to commence in December 2021. The flotation is expected to value Lift at approximately £2.7m.

ThomasLloyd Energy Impact Trust plc, a newly established closed-ended investment company which will invest in a diversified portfolio of unlisted sustainable energy infrastructure assets in fast-growing and emerging economies in Asia, seeking to join the Premium Segment of the Official List . Due 14 Dec raising up to $335m.

4GLOBAL to join AIM, a London based software, data and services sport and health company. Offer TBA. Due early Dec.

Skillcast to join AIM. Skillcast provides software and content subscriptions and related professional services to enable companies to implement their staff compliance and training obligations. Total capital to be raised on Admission £4.5m, o/w Primary funds £3.5m and Secondary funds raised for selling shareholders £1.0m. Anticipated Mkt Cap on Admission: £33.1m. Due 1 Dec.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa. The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021. Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website). The Company does not intend to raise any capital prior to or concurrent with admission to AIM. The Mkt Cap on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney. Capital to be raised on Admission £19.04m (£16m primary and £3m secondary). The company has also raised Capital of £6m following a conversion of loan notes. Anticipated Mkt Cap £154.37m. Due 30 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Due early Dec. Raising £5m.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100%.

Breakfast Buffet

Arcontech Group 105.5p £14.1m (ARC.L)
The provider of products and services for real-time financial market data processing and trading, announces that its trading performance has regrettably fallen below current market expectations due to one customer reducing its market data spend with the Company, and notification from another customer that it will not be renewing its contract from the start of second half of 2022. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing not to renew its contract for one Arcontech product because it is switching to use a solution included in a legacy, bundled contract. The Company is consequently revising its year end market guidance to reflect this net reduction of revenue. The reductions will take effect at the beginning of the second half of Arcontech’s financial year and consequently will negatively impact revenue by annualised c.£300K, half of which will impact in the current financial year. However, notwithstanding the above the Company senses an overall improvement in the business outlook which until now has seen growth affected by Covid.

Avacta Group 127p £322m (AVCT.L)
The clinical stage biopharmaceutical company developing innovative cancer therapies and powerful diagnostics based on its proprietary Affimer® and pre|CISION™ platforms, announced that the US Food and Drug Administration (FDA) has approved its Investigational New Drug (IND) application for AVA6000. This will allow the Group to expand its Phase I clinical trial, ALS-6000-101, into clinical trial sites in the United States. AVA6000 is a novel form of doxorubicin that has been modified with Avacta’s pre|CISION™ platform to improve its safety and therapeutic index. Anthracyclines such as doxorubicin, a generic chemotherapy for which the market is expected to grow to $1.38bn by 2024, are widely used as part of standard of care in several tumour types, but their use is limited by cumulative toxicity. AVA6000 has been designed to limit cell penetration of the drug, and therefore its cell killing effect, until it is specifically activated by fibroblast activation protein α (FAP) which is in high concentration in many solid tumours compared with healthy tissues. The resulting reduced exposure of healthy tissues to active doxorubicin has the potential to significantly increase its therapeutic index by reducing the incidence of adverse effects, including cardiotoxicity and myelosuppression.

Caledonia Mining 985p £115m (CMCL.L)
CMCL announced that in respect of its Victoria Falls Stock Exchange (“VFEX”) listing, due to extremely positive Zimbabwe investor response, Caledonia has decided to raise more funds than originally anticipated and therefore to issue more shares. At the offer price of US$12.64 per depositary receipt, Caledonia expects to issue up to approximately 630,000 new shares, raising approximately $7.96m(before expenses). The proceeds of the offer will be used for general corporate purposes in Zimbabwe. As announced on July 8, 2021 one of the benefits of a listing of depositary receipts representing the Company’s shares on the Victoria Falls Stock Exchange (in Zimbabwe) is an improvement in the proportion of the revenues received in US dollars for gold produced at the Company’s majority owned Blanket Mine. The Company looks forward to benefitting from this development going forward. The admission of new shares, listing and dealings are expected to occur on or about December 2, 2021.

Clinigen 591p £788m (CLIN.L)
The global pharmaceutical Services and Products company, announces it has signed an exclusive agreement with Nippon Shinyaku Co., Ltd (‘Nippon Shinyaku’) to implement a Managed Access Program for VILTEPSO® (viltolarsen) for patients with Duchenne muscular dystrophy (DMD) who are amenable to exon 53 skipping therapy. DMD is a progressive muscle disease that primarily occurs in boys due to a genetic mutation in the dystrophin gene. This prevents the production of normal dystrophin resulting in reduced muscle strength/function that progressively continues to decline. There are many types of genetic mutations that can cause DMD. Viltolarsen skips exon 53; and therefore has the potential to rescue the dystrophin protein for 8-10% of DMD patients. Following finalization, the Managed Access Program will enable early access to VILTEPSO ® for eligible patients in countries where it is not commercially available. VILTEPSO ® is currently only approved in the US and Japan. Under the terms of the agreement, Clinigen will manage key elements of the program including regulatory oversight, logistics and access management.

Directa Plus 158p £97m (DCTA.L)
The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announces that it has won a project tender from the state of Lombardy’s TECH FAST programme for accelerating innovation processes by Lombardy based companies. The project will last for 12 months and has a total value of EUR 294,058, of which 50% is non-refundable. The project will commence immediately.

Franchise Brands 140p £134m (FRAN.L)
FRAN has acquired the entire issued share capital of Azura Group Ltd, a leading franchise management software system developer. Having worked in partnership with Azura in recent years, the Acquisition enables the Group to consolidate its software development and secure ownership of the related intellectual property created to date, as well as bring Azura’s skilled team in-house. The Board also believes there is an opportunity to use Franchise Brands’ experience and expertise to grow Azura’s business, by improved development of its end-to-end franchise management Software as a Service platform, to enhance sales to other franchise businesses in the UK and overseas. The gross consideration for the Acquisition is £1m, payable as £850k in cash and £150k in Franchise Brands shares. It is warranted by the vendors that the cash in Azura’s balance sheet at completion will not be less than £175k resulting in a net consideration of £825k. The Board believes the Acquisition will be earnings enhancing in the first full year following acquisition.

Ince Group 45.96p £32.21m (INCE.L)
The Law and professional services firm announces that its Interim Results for the six months to 30 September 2021 will be published on 8 December 2021. The Company expects to report unaudited revenue for HY22 of £49.9m, an increase on the £47.6m for the same period last year. Adrian Biles, Chief Executive of The Ince Group, said: ” Now that trading in our shares has been restored, I am pleased to confirm that current trading is in line with our expectations and we look forward to reporting the full interim results on 8 December 2021.

Molten Ventures 909.5p £1392m (GROW.L)
The venture capital firm investing in and developing high growth digital technology businesses, today announces its interim results for the six-month period ended 30 September 2021. Gross Portfolio Value of £1,350m (31 March 2021: £984m). 27% Gross Portfolio fair value growth in the six-month period to 30 September 2021 (six months to 30 September 2020: 10%) Net assets of £1,357m (31 March 2021: £1,033m). NAV per share increased to 887p (31 March 2021: 743p). £156m available plc cash (31 March 2021: £161m). Post period-end, we have deployed £36.6m in investments including an investment in Satellite Vu, a British start-up using satellite technology to determine valuable insights into economic activity, energy efficiency and carbon footprint. We have realised cash proceeds of £26.1m post period-end, as a result of further Trustpilot and UiPath share sales.”

Osirium 16.75p £4.9m (OSI.L)
The vendor of cloud-based cybersecurity software, today provides an update on the trading for the current financial year ending 31 December 2021. The Group has continued to make good operational and strategic progress with an impressive c.70% increase in new customers in the second half of the year to date, compared to the same period in 2020, demonstrating success in the Group’s growth opportunities. New customer acquisitions has been driven by the Group’s increased reach into new markets and a more general acceleration of interest in Privileged Security products across a number of sectors. Average initial contract values have been lower and decision times longer, however, due to ongoing caution and disruption around customers’ strategic IT plans, due to the COVID-19 pandemic. As a result, the Board anticipates that bookings and revenue for the year to 31 December 2021 will be broadly at the same levels achieved in the prior year and slightly behind current market expectations.

Symphony Environmental Technologies* 26p £46.6m (SYM.L)
The Global specialists in technologies that make plastic and rubber products “smarter, safer and more sustainable”, is pleased that DEFRA (the UK government department for Environment, Food and Rural Affairs) has NOT listed oxo-biodegradable plastic in its November 2021 public consultation as a “frequently littered and problematic plastic.” The Scottish Government has likewise issued draft Regulations in November which do not list oxo-biodegradable plastic. Symphony views this as a major step in the right direction. Symphony is also encouraged that the UK Government has given grants for the development of oxo-biodegradable technology (sometimes described as biotransformation), demonstrating an understanding that these technologies can reduce the problem of plastic litter which does not get collected for recycling. The British Royal Family has also shown support. HRH The Prince of Wales has visited a facility developing biotransformation technology, and Symphony is a subscriber to the Prince’s “Terra Carta” Sustainable Markets Initiative. DEFRA and the Scottish Government have now seen the evidence from the four-year Oxomar study sponsored by the French government proving that oxo-biodegradable plastics do biodegrade, even in the oceans, much more efficiently than conventional plastics. They have also seen the study by Queen Mary University London showing that the biodegradation of LDPE (low-density polyethylene) containing Symphony’s d2w was 90 times greater than ordinary LDPE after 35 days. They are also aware that the European Chemicals Agency, after ten months’ study was not convinced that oxo-biodegradable plastic created microplastics. Michael Laurier, CEO of Symphony said, “We welcome the position taken by the UK and Scottish Governments, and we will now be putting more effort into explaining and marketing our d2w technology in the UK.”

29 November 2021
*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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