Small Cap Feast

4th February 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Hercules Site Services (HERC.L) a technology enabled labour supply company for the UK infrastructure sector, has joined AIM. The IPO is intended to help Hercules rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operations to supply labour to the northern section of the HS2 rail project from London to Birmingham. In addition, up to £4.5m will be raised for the existing shareholder from the sale of part of its interest in the Company. Hercules has a sustained track record of revenue growth from £9.7m in FY 2015 to £30.7m in FY 2019 and has experienced a strong rebound following Covid-19 growing to £14.0m in H1 FY 2021. Anticipated Mkt Cap £29.6m. £8m raised.
Off The Menu:
No Leavers Today.

What’s Cooking In The IPO Kitchen?

GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended will carry on business as a Real Estate Investment Trust, subject to meeting the necessary qualifying conditions. The Company will invest, predominantly, in independent Co-Living Asset, both operational and under development, let to a diversified mix of residents, located in urban centres in the UK and Ireland where there is a shortage of high quality, affordable residential accommodation. Due March.

Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb.

Artemis Resources ltd, an ASX listed mining exploration and development company intends to join AIM. The Company owns projects based in the Pilbara region of Western Australia, the Greater Carlow Gold-Copper-Cobalt Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara. The Company also owns the Radio Hill processing plant that is currently on care and maintenance. This plant is strategically located only 35km from the Greater Carlow Project. Mkt Cap approximately £52m, Capital to be raised £5m. Due 7th Feb.

Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.

Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Due Early Feb.

Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Feb.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £10.7m. Expected admission 9th Feb.

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. Delayed until second half of Q1 2022.

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 early Q1 2022.

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. Due early Feb.

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. Delayed until Mid-Feb. Mkt Cap and Capital to be raised TBC.


Breakfast Buffet

Alien Metals 0.9p £37m (UFO.L)

Update on its high-grade Hancock iron ore project in the Pilbara Region of Western Australia. The company recently completed the excavation of a bulk sample weighing 2,378kg of high-grade iron ore from the Ridge C resource. A series of grabs taken from the bulk sample have returned high-grade results with an average grade of 62.2% Fe across the samples and low levels of impurities. The sampling indicates that the high-grade material commences from less than 1m below surface. The samples represent a homogenous bulk sample across the centre of the Ridge C resource and provides further confirmation of grade and quality of the deposit.

Chariot 9.4p £74.6m (CHAR.L)

Total Eren, a leading renewable energy Independent Power Producer (IPP) based in France and Chariot the African focused transitional energy company, announced the signing of a Memorandum of Understanding with Tharisa plc, the platinum group metals and chrome producer, listed on the Johannesburg and London stock exchanges, to develop, finance, construct, own, operate and maintain a solar photovoltaic (PV) project for the supply of electricity to the Tharisa mine, in the North West Province, South Africa. The solar PV project is initially anticipated to be 40 MWp with demand expected to increase over the life of the Tharisa Mine. This MoU is the first step towards implementation of the Project and signing of a long-term Power Purchase Agreement for the supply of electricity on a take-or-pay basis.

Galantas Gold 33p £25.3m (GAL.L)

Galantas Gold Corporation announced the closing of the loan agreement for US$1.06m with Ocean Partners UK Ltd. Terms of the Loan Agreement, as previously announced on January 25, 2022. The Loan matures on July 31, 2022. The Loan will bear interest at an annual rate of 10% compounded monthly payable upon repayment of the Loan. US$20k structuring fee has been paid to Ocean. US$40k consulting fee will be paid to Ocean, to be invoiced separately by Ocean. 250,000 warrants have been granted to Ocean, which will be exercisable for a period of 12 months at an exercise price of CAD$0.50. The bonus Warrants are subject to a hold period under applicable securities laws and the rules of the TSX Venture Exchange, expiring on June 4, 2022. US$40k extension fee will be paid to Ocean if the Company elects to extend the Loan for a further six months from the Maturity Date. Proceeds from the Loan will be used for further development of the Omagh Gold Project in Northern Ireland and working capital.

Kefi Gold And Copper 0.73p £21.5m (KEFI.L)

Update in respect of the Company’s Tulu Kapi Gold Project part of the KEFI-operated Ethiopia joint-venture Tulu Kapi Gold Mines Share Company. Ethiopia’s civil war abated at the end of Q4-2021 and its State of Emergency is being lifted. Security conditions at the Tulu Kapi site, district and transport routes are improving. The Project finance syndicate remains in place to launch the Project as soon as normal conditions that govern the execution of such a project and its financing are satisfied. TKGM is in extensive consultations with the Ethiopian Ministry of Mines, to provide the assurances being sought to minimise further project delays. Meetings have now been scheduled for next week, including high-level meetings on 7 February 2022. Operationally activities continue: this month’s Project priorities include reviewing detailed resettlement plans for the affected households with the newly-appointed local government administration and to complete all outstanding documentation with the Ministry and other Government agencies; and in the following few months to finalise documentation for execution whilst, on the ground, finish preparing the new lands for resettling households. All parties are acting in good faith to prepare to implement the Project launch. Progress is intended to be quick but will rely on the continued improvement of security and completion of all documentation and other standard confirmations, such as insurance, to the satisfaction of the Ministry and other authorities, the senior lenders and other syndicate members.

Mobile Streams 0.49p £12.3m (MOS.L)

Mobile Streams will be launching new services in India in partnership with Vodafone India (Vi) during the first quarter of 2022. The Company intends to launch gaming, esports and Metaverse services via its own App to Vodafone India’s over 273m customers. The service will be delivered via an App on the Google App Store in India and will enable customers to pay directly from their Vodafone bill via their Google wallet. Initial games will be available by the end of first quarter subject to approval from the Google play store. The Company is also in advanced discussions with the Jio mobile network in India regarding new service launches and will update the market on those in due cause. This announcement means the Company has now reinvigorated and re-launched in all the main territories of the legacy business inherited from previous management, and look forward to announcing further continued expansion in due course.

Live Company Group 3.6p £5.3m (LVCG.L)

All tickets for the KPop.Flex festival that will take place in Frankfurt on 14 May 2022 have now been sold. The stellar line up of acts has resulted in unprecedented demand for the event which will be the largest of its kind in Europe. As previously announced on 9th December 2021 the event is a joint venture agreement with KPE (a 50% subsidiary of LVCG) acting as the Touring Promotor. KPE earns revenue via a number of sources including; 40% of all sponsorship revenue, 100% of the net revenue of event related on-line merchandising, 75% of merchandising at the event, 100% of broadcast and streaming rights (ex-Korea), annual consultancy fees of EUR200k and a percentage of ticket sale profits. Investors are reminded that with all tickets sold the event is profitable. Investors can see the latest KPop.Flex videos and all information about the KPop.Flex festival can be seen on the company web-site www.livecompanygroup.com.

Nostra Terra Oil & Gas 0.38p £2.7m (NTOG.L)

The oil & gas exploration and production company with a portfolio of development and production assets within several basins in the US, announced that Paul Welch has been appointed as an Independent Non-Executive Director with immediate effect. Paul is an international energy executive with over 30 years of industry experience having worked for Shell Oil Company and several large independents including Hunt Oil Company, Pioneer Natural Resources and as CEO of AIM listed explorer Chariot Limited (previously Chariot Oil and Gas Limited) (AIM: CHAR) (2009-2012) and CEO of Sea Dragon Energy (2013-2015) which in October of 2015 became SDX Energy plc (AIM: SDX) (2015-2019) following the merger with Madison PetroGas. He was subsequently appointed CEO of Cosimo Holdings Ltd in 2019, a private oil and gas company. He is currently Chairman and Executive Director of ACP Energy, a company formed to make acquisitions in the energy sector and recently admitted to the Main Market in London. Paul graduated from the Colorado School of Mines with both a Bachelor and Master’s degrees in Petroleum Engineering. He also holds an MBA in Finance from the Southern Methodist University in Dallas, Texas.

Pioneer 90p £57.6m (PNER.L)

Pioneer Media Holdings Inc. has completed the acquisition of the entire share capital of Bark Ventures, a NFT play-to-earn game developer focused on developing games for niche communities, based in Vancouver, BC. As part of Pioneer’s growth strategy, the technology incubator is acquiring key assets within Web3 including NFT, NFT Games and DAO’s (decentralised autonomous organisations) as the Company continues to expand into this evolutionary, decentralised landscape. Pioneer’s strategic M&A plan is being deployed to create a full Web3 ecosystem, to capitalise on the dramatic change to the crypto landscape in a short amount of time. Mike Edwards, CEO of Pioneer commented, “We feel confident that these new emerging trends will be the cornerstone of the next digital age, and the recent surge in NFT’s, NFT Games and DAO’s are changing the historical distribution channels and breaking down barriers to entry. This is a transformative time, and our strategy is to create a full, Web3 ecosystem that provides investors access to a portfolio of innovative small and medium sized companies within a rapidly growing sector.”

ULS Technology 84.4p £55m (ULS.L)

The provider of online digital platforms for the UK conveyancing and financial intermediary markets, announces that eConveyancer has launched an exclusive conveyancing partnership with comparison website, Moneyfacts. The partnership will enable customers using Moneyfacts to search for and instruct a conveyancer from eConveyancer’s panel of more than 50 audited and benchmarked conveyancing firms. Moneyfacts is an independent money comparison site that has provided “best buy” charts to the UK press and media for over 30 years, including titles like The Sunday Times, Financial Times and The Spectator. The site provides up-to-date and impartial financial information to help millions of people every year to make more informed financial choices.

Windward 165p £134.7m (WNWD.L)

Winward, a leader in maritime predictive intelligence, reports record levels of Annual Contract Value (ACV) growth in the year ended 31 December 2021, following the Company’s admission to AIM in December 2021. ACV increased by 38% to $21.1m (2020: $15.3m) in the year, and by 7% from 30 September 2021, as set out in the Company’s admission document, demonstrating continued strong sales momentum in Q4. Customer numbers increased significantly in 2021, to over 80 by year end from 45 at the start of the year. The Company expects to report revenue growth in 2021 of approximately 18% to approximately $17.3m (2020: $14.6m). Encouraged by momentum across the business, investment in headcount continued in Q4 and into the new year, ahead of an expected acceleration in new business and revenue growth in 2022. The Company is seeing the effect of salary inflation pressures, consistent with the wider technology sector. As a result of these cost pressures the EBITDA loss for the year ended 31 December 2021 is expected to be slightly higher than expectations, with the salary cost pressures expected to continue in the current year.

4 February 2022
*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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