Small Cap Feast

30th November 2021

Dish of the day
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Off the menu
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Dish Of The Day:
Gelion (GELN.L) has joined 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 Market Capitalisation £154.37m. Due 30 Nov.
Off The Menu:
Two off AIM today. Caribbean Investment Hdgs and Silence Therapeutics. 

 One off the Main Market (Premium), Stock Spirits.

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.

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

Advance Energy 3.925p £40.3m (ADV.L)
The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, provides an update on the Buffalo project offshore Timor-Leste ahead of the drilling of the Buffalo-10 well. The Operator, Carnarvon Petroleum Timor, Lda., has been advised that the Valaris JU-107 jack-up rig is in the final stages of its current operations with another operator, with rig handover expected within the next two weeks. The operations team is waiting and ready to receive the Valaris JU-107 jack-up rig to commence drilling operations at the Buffalo-10 well-site. Logistics teams are in place, and all appropriate support services and equipment have been contracted, with the last remaining regulatory approvals expected prior to receipt of the rig. The Buffalo-10 well is designed to test the presence of a significant attic oil accumulation that remains after the original development was closed-in and convert the 2C certified resources of 34.3 MMstb to reserves following re-certification.

Diversified Energy 99.65p £846m (DEC.L)
Diversified Energy announced today that to support methane-reduction commitments it made at its Capital Markets Day event, it has engaged Bridger Photonics (Bridger), a leading provider of methane leak detection technology, to perform multi-year aerial scans of the Company’s natural gas production and distribution assets starting with the Appalachian region. Bozeman, Montana-based Bridger specialises in the application of precision laser imaging, detection, and ranging (LiDAR) equipment to identify methane emissions from gas and oil facilities. “We are thrilled to support Diversified Energy’s leadership role and strong commitment to emissions reduction,” said Pete Roos, President and CEO of Bridger Photonics. “Our Gas Mapping LiDAR technology will efficiently detect, pinpoint, and quantify typically more than 90% of basin emissions to inform and streamline Diversified’s repair and maintenance activities,” Roos added.

Sensyne Health 90p £148m (SENS.L)
The clinical AI company, has agreed settlement terms with the London Stock Exchange for a public censure and fine of £580k discounted to £406k for early settlement, for historical breaches of AIM Rules 13 and 31 in relation to the payment of certain IPO bonuses in 2018. Sensyne Health has fully cooperated with the London Stock Exchange during the period of its investigation over the past two years, and both acknowledges and reiterates its apology for its failure to properly understand and meet its AIM disclosure obligations during the first year of its listing as a public company, between November 2018 and October 2019. Since that period, Sensyne has taken significant steps to strengthen its governance to meet the standards required of a publicly listed company and is committed to upholding these standards. Over the past two years, the Board has overseen the successful implementation of recommendations from a Board effectiveness review conducted by A&O Consulting and recruited four new Independent Non-Executive Directors to strengthen the public market expertise of the Board.

Quantum Blockchain Tech 3.05p £27.9m (QBT.L)
The board of Quantum Blockchain Technologies has made the key decision to focus on the development of the more efficient 5nm Application-Specific Integrated Circuit (ASIC), rather than a 7nm ASIC (as announced on 5 November 2021), to use as its proprietary Bitcoin mining tool. This decision was taken following a recent market announcement by a leading international Bitcoin mining equipment manufacturer that it will use 5nm ASICs for its the next generation of Bitcoin miners, which it expects to release in the second half of 2022. Accordingly, QBT has updated its development programme for the prototyping and industrial manufacturing of its proprietary Bitcoin mining, to use the 5nm ASIC. Based on the Company’s internal projections, it believes that its previously planned optimised 7nm ASIC, would run at the same speed as the proposed 5nm ASIC, as announced by the above-mentioned Bitcoin miner manufacturer; this calculation is assuming the same number of ASICs will be used in the next mining model, as the above-mentioned miner currently applies to its existing model. The rationale to move from a 7nm to 5nm, is because the estimated speed of QBT’s proprietary Bitcoin mining ASIC is expected to be at least twice as fast as the leading international Bitcoin miner manufacturer, before taking into account the optimisations of a second patent under development, which are yet to be factored in. The Company will, therefore, move directly to developing a 5nm ASIC prototype, although it will still consider a phase of testing, as an intermediate step, on the 12nm ASIC, as announced on 5 November 2021. The Company recognises that this significant step change, from 7nm to 5nm will, with regards to industrial production be significantly more expensive than its original strategy. However, as a first step, the initial phase of prototype testing of a 5nm ASIC will not cost the Company much more than the same process for a 7nm ASIC.

Oilex 0.17p £9.2m (OEX.L)
Oilex Ltd announced on 7 September 2021 that it was establishing an opt-out unmarketable parcel sale facility for shareholders who held less than $500 worth of fully paid ordinary shares in the Company on the ASX share register (Unmarketable Parcel). The Company wishes to advise that since the closure date of the Facility on 22 October 2021, approximately 80% of the Unmarketable Parcels of shares have been sold on market, however due to recent liquidity issues, the remaining disposal is taking longer than originally timetabled. The revised estimated payment date for return of funds to shareholders who have participated in the Facility is anticipated to be the end of December 2021. Shareholders should however please note that the payment date may be subject to further variation or early completion, subject to finalisation of the on-market share disposal, and the discretion of the OEX board.

Powerhouse Energy 4.6p £181.7m (PHE.L)
The UK technology company commercialising hydrogen production from waste plastic, notes that its development partner, Hydrogen Utopia International PLC (HUI), has signed a letter of intent with the City of Simitli, Bulgaria. The letter sets out HUI’s intention to build and manage a Distributed Modular Gasification plant (DMG®) using Powerhouse’s technology sited in a commercial sector close to existing waste remediation facilities in Simitli in the south-west of Bulgaria. The project would be subject to approval by Powerhouse. Powerhouse is pleased to see HUI’s progress in Bulgaria. Powerhouse announced on 7 October 2021 that it had entered into a binding collaboration agreement (the “Collaboration Agreement”) with HU2021 International UK Limited, a wholly owned subsidiary of Hydrogen Utopia International PLC, to market the deployment of DMG® technology in territories outside the UK. All potential projects under the Collaboration Agreement are subject to approval by Powerhouse and the formal IP Implementation licence to HUI for construction of its projects approved by Powerhouse, which will cover the licence fees to be received by Powerhouse for any deployment of the DMG technology, has yet to be agreed.

Ormonde Mining 0.9p £3.8m (ORM.L)
Brendan McMorrow, who was appointed as a non-executive director of the Company on 30 September 2021, has been appointed Chief Executive Officer with immediate effect. Mr McMorrow has over 25 years’ experience as a senior executive and director of publicly listed natural resources companies and will assist the Company in the identification of new opportunities within the natural resources sector. The position of CEO will be reviewed in the context of the completion of a transaction. In addition to his position as CEO, Mr McMorrow will continue to act as Company Secretary, and Chair of the Audit Committee and will sit on the Remuneration, Technical, and ESG Committees. The Company wishes to thank Jonathan Henry, Brendan’s predecessor, for his diligent and committed service to the Company over the past two years.

Silverbullet 275p £37.6m (SBDS.L)
The provider of digital transformation services and products has entered into a further significant agency contract in respect of its ‘4D’ product with Mediatrack SAS. Mediatrack, based in Paris, is a leading and fast growing operational consulting group focused on marketing and media in the retail sector and is the second largest independent media agency in France. Mediatrack manages approximately EUR900m of annual billings and services over 100 clients. 4D will now be the preferred partner for Mediatrack in relation to contextual solutions, supporting its clients’ migration from the utilisation of third-party cookies to first-party-driven data contextual insights and targeting.

SulNOx 40.5p £34.2m (AQSE:SNOX)
LocoSoco Group plc has agreed to become an Independent Sales Organisation for the SulNOx Group. LocoSoco promotes eco-friendly, sustainable and ethically sourced products and services. The team provide the tools, technologies and products to support those people, businesses and communities that want to make a difference. LocoSoco create, source and distribute products and technologies that contribute to sustainability in a way that creates shared wealth. LocoSoco already work with large organisations, retailers, channel partners and public bodies. SulNOx is a hydrocarbon fuel emulsification specialist.

URU Metals 215p £3.5m (URU.L)
In August 2021, URU successfully completed the disposal of the Zebediela Nickel Project to Zeb Nickel Corp. (TSX-V: ZBNI) and the Project remains the primary focus of URU, through its 74.82% interest in Zeb Nickel Corp. and URU’s continuing role as the technical operator of the Project. John Zorbas, CEO of URU, was appointed a director of Zeb Nickel Corp. on 29 November 2021. Jay Vieira, Non-executive Chairman of URU, also remains a director of Zeb Nickel Corp.

30 November 2021
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged


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