Small Cap Feast

2nd February 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Aukett Swanke Group 1.175p £3.4m (AUK.L)
The group providing Smart Buildings, Architectural and Design Services, provides the following pre-close update for the year to 30 September 2023 (FY 2023). The Group made a small pre-tax profit, before acquisition-related exceptional items, on revenue of approximately £14m (FY 2022: £7.1m). For the current year (FY 2024) the Management expect the Group's performance to remain second half weighted. The Company further reports a new 12-month funding facility for its subsidiary Torpedo Factory Group Limited (TFG). The new facility comprises a £1.40m loan, of which £1.36m is interest only and £0.04m is repayable on a monthly basis. This refinances and replaces an existing mortgage on the Property which was due to expire on 7 February 2024. The Group's only other bank borrowings are a separate CBILS-backed loan of approximately £0.1m, which is due to be fully repaid by May 2024, and an overdraft facility of £250k.

Dewhurst Group 775p £54.4m (DWHT.L)
The manufacturer and supplier of quality components to the lift, transport and keypad industries announces that it is commencing a share buyback programme of up to £2.5m (Share Buyback Programme) in order to return funds to shareholders. The Share Buyback Programme will take place within the limitations of the authority granted to the Board of Dewhurst at its Annual General Meeting, held on 14 February 2023, pursuant to which a maximum of 496,380 Ordinary Shares and 715,830 A Shares may be bought back by the Company at a price of not more than 105 per cent. of the average of the middle market quotations.

Hemogenyx Pharmaceuticals 3.7p £43.5m (HEMO.L)
A pre-clinical stage biopharmaceutical group developing new medicines and treatments to treat blood and autoimmune diseases announces that a patent application entitled Method of Eliminating Hematopoietic Stem Cells/Hematopoietic Progenitors (HSC/HP) In A Patient Using Bi-Specific Antibodies has been allowed to be issued as a patent by the United States Patent and Trademark Office. This further solidifies the Company's position as a leader in the area of conditioning bone marrow transplants.

Mosman Oil and Gas 0.0135p £1.5m (MSMN.L)
The hydrocarbon, helium and hydrogen exploration, development, and production company, announces that it has raised £300k (before expenses) by way of a placing of new ordinary shares at a placing price of 0.0125p per share. The placing price represents a discount of 36% to the closing price of 0.017p on 1 February 2024, the last practical trading date. The proceeds will be used largely for working capital including certain expected costs to develop Mosman's two 100% owned helium and hydrogen exploration projects in the Amadeus Basin in the Northern Territory of Australia, EP 145 and EPA 155 ahead of farmout Completion.

Mydecine Innovations Group 1.75p £0.919m (AQSE: MYIG)
A biotechnology company dedicated to revolutionising mental health and addiction treatment, announces that Neil Stevenson-Moore has resigned as a director of the Company. The Company would like to thank Mr. Stevenson-Moore for his contributions to the Company and wishes him well in this future endeavors. The Company is in the process of identifying a qualified replacement director and will make any necessary announcements in due course.

Octopus Renewables Infrastructure Trust 85.2p £481.3m (ORIT.L)
A closed-ended investment company investing in a diversified portfolio of renewable energy assets in Europe and Australia announces that it has completed the acquisition of four newly-constructed solar farms located close to Dublin, Ireland. The solar complex totals 199MW and was acquired from Statkraft Ireland Limited, which developed and constructed the projects under ORIT's oversight. Following the acquisition, ORIT's total capacity of operational renewable energy assets reaches 735MW. The total acquisition cost of EUR160m was in part financed using a EUR80.6m debt facility provided by Allied Irish Banks and La Banque Postale.

Orchard Funding Group 23.5p £5.0m (ORCH.L)
The finance group which specialises in insurance premium finance and the professions funding market, provides notification that following the conclusions of a recent FCA review, a number of insurers are withdrawing products from the guaranteed asset protection (GAP) insurance market. As over 20% of the Group's assets finance GAP insurance products (as at 31 December 2023, unaudited), the withdrawal of these insurance products is likely to have a material adverse impact on the Company's financial results over the current financial year.

Parkmead Group 16.75p £19.3m (PMG.L)
The independent energy group, provides an update on gas production following the LDS-01 well being brought into production in Q4 2023. The Diever-02 well was shut-in in October to allow the successful new discovery well LDS-01 to be brought onstream. Since coming onstream, gas production from LDS-01 has consistently produced at average rates of close to 5,000 boepd (gross) and upwards of 370 boepd (net). The total volume of gas produced from LDS-01 to date has now significantly exceeded the predicted P50 (most likely) gas reserves case. In addition the Group has also benefitted from delivering operational uptime at its 100% owned Kempstone Hill wind energy company, with revenues from the wind farm continuing strongly.

Tribal Group 45.4p £96.3m (TRB.L)
A provider of software and services to the international education market, provides an update on trading for the year ended 31 December 2023 (FY23). The Board anticipates a solid trading performance in FY23 with adjusted EBITDA and net debt expected to be comfortably ahead, and revenue marginally ahead, of current market expectations. This incorporates the Nanyang Technology University (NTU) provision release disclosed in the Group's half year results. Overall ARR is expected to have increased by 9% to £54.5m (2022: £50.2m). The Company closed the Year with a net debt position of £7.2m (2022: net debt of £3.4m). The Board is confident in the effectiveness of its cloud strategy and continued growth in 2024.

Wishbone Gold 1.15p £3.2m (WSBN.L)
The Gibraltar-based Company engaged in gold, silver and copper exploration announces it has raised £300k gross to one corporate investor at a price of 1.2 pence per share. The share price represents a premium of 6.6% to the closing price of 1.125p on 1 February 2024, the last practical trading date. This small placing will provide additional working capital for the Company but importantly will primarily be used to initiate exploration operations at the new Mosquito Creek property in the Pilbara.

2 February 2024
*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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