Small Cap Feast

4th July 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Re-admission of 888 Holdings to the Main Market following the reverse takeover of William Hill.
Off The Menu:
Umuthi Healthcare Solutions has left the Main Market.

What’s Cooking In The IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July.

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Anticipated Mkt Cap £16.58m. Due 6 July 2022.

Breakfast Buffet

Beowulf Mining 4.3p £35.8m (BEM.L)

The Company has agreed loan financing from a Nordic Institutional Investor of SEK 22m (approximately £1.76m) before expenses. The funding will be used to advance the Company’s projects and achieve key milestones, with the focus being on Kallak. With the award of the Kallak North Exploitation Concession and the appointment of Ulla Sandborgh as CEO of Jokkmokk Iron, this financing builds momentum. It supports the Company’s ambition to have Kallak producing high-quality iron ore products in 2026. Currently, the Company is working with ESG, environmental and engineering consultants on environmental baseline studies and the completion of a Scoping Study timetabled for Q4 2022.

Firering Strategic 6.6p £5.7m (FRG.L)

Firering, an exploration company focusing on critical minerals, announces that it has increased its stake in its flagship Atex Lithium Tantalum Project in Côte d’Ivoire from 51% to 77%. Yuval Cohen, Chief Executive of Firering, said: “We are delighted to have increased our ownership stake at our flagship Atex Lithium Tantalum Project, which we believe has the potential to become a significant lithium resource in West Africa. We are making rapid progress at Atex with the commencement of our 3,000m diamond drilling programme with eleven drill targets identified to intercept the potentially lithium-bearing pegmatite veins – marking a huge step forward in our exploration work. Our heightened confidence is reflected in our decision to increase Firering’s ownership stake in Atex to 77%.”

GRC International 27.5p £29.7m (GRC.L)

The international governance, risk management and compliance company whose main business is cyber defence-in-depth, announces that its IT Governance business is now providing Payment Card Industry (PCI) Qualified Security Assessor (QSA) services in the USA. The business has been authorised to operate in the US and now appears on the PCI Security Standards Council (PCI SSC) website. All businesses that accept payment cards are vulnerable to hackers trying to steal financial information and commit identity fraud. The Payment Card Industry Data Security Standard (PCI DSS) introduced by the PCI SSC, exists to ensure that businesses process credit and debit card payments effectively to protect cardholder data. All organisations that accept, store, transmit, or process cardholder data must comply with the PCI DSS. IT Governance’s new PCI QSA licence means that the business can now extend its Qualified Security Adviser services to the US. It can undertake security audits on organisations that process payment cards and certify that they are compliant with the PCI DSS.

Kibo Energy* 0.1p £2.7m (KIBO.L)

The renewable energy focused development announced that further to the RNS dated 1 April 2022, the Company has agreed a further extension of three months for the Redemption Date of the Convertible Instrument, with all remaining Noteholders. The new extended Redemption Date will now be 30 September 2022. The Further Extension includes Notes in aggregate of £657,985.

Omega Diagnostics 3.3p £7.8m (ODX.L)

Further to the Circular published on the 13 May 2022 indicating that the Group’s CD4 business was being marketed for sale, Omega, the specialist medical diagnostics company focused on industry-leading Health & Nutrition and Global Health products, announces that after receiving a number of indicative offers, the Company has now selected a preferred bidder to acquire its CD4 business. On 2 July 2022, Omega and the preferred bidder signed Heads of Terms in relation to the sale of the Company’s CD4 business, which manufactures and supplies VISITECT® CD4 and VISITECT® CD4 Advanced Disease tests.

Palace Capital 271p £125.3m (PCA.L)

The Main Market property investment company, announces an update from the Board on the strategic options it intends to pursue as part of its commitment to maximising value for shareholders and closing the current share price discount to NAV following the statement made in the Preliminary Results on 14 June 2022. The Group intends to have a pure focus as an ESG driven, regional office market specialist where its expertise can be used to create value from offices with relatively low EPC ratings. In order to execute and finance this strategy, it is proposed that the industrial portfolio, comprising 7 assets, together with an additional property previously classified as a retail warehouse property, will be marketed for sale as a single portfolio. The independent valuation of these properties as at 31 March 2022 was c. £46.5m. £4.5m of non-core disposals since 31 March 2022. Now targeting a LTV limit of 35% and on a normalised basis within the 25%-35% range. The LTV as at 31 March 2022 was 28%.

Sareum Holdings* 207.5p £141.2m (SAR.L)

The specialist drug development company, notes that GSK has completed its acquisition of Sierra Oncology, Inc , the licence holder for SRA737 (a novel Chk1 inhibitor), for US$1.9bn in cash. GSK has noted that the key driver of the acquisition was momelotinib, a drug Sierra is developing for the treatment of myelofibrosis. Sierra submitted a New Drug Application to the US Food and Drug Administration in June 2022 for marketing approval. Following the acquisition, GSK also now owns the licence rights to SRA737, a clinical-stage oral, selective Checkpoint kinase 1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. Under an amended US$299m licensing deal on SRA737 between Sierra and CRT Pioneer Fund LP (announced 12 November 2020), Sareum is eligible to receive a 27.5% share of any future milestone payments as well as royalties on any future sales. The dosing of the first patient with SRA737 in any new clinical trial would result in a US$2.0m payment from Sierra (now GSK), with 27.5% of this due to Sareum.

Tekcapital 20.3p £30.3m (TEK.L)

The UK intellectual property investment group focused on creating valuable products from investing in university technology that can improve people’s lives, announced that MicroSalt, Inc., the U.S. operating subsidiary of Salarius, Ltd. has provided an update of its commercial activities. MicroSalt continues its rapid expansion in the low salt and sodium markets and is has executed its first bulk B2B MicroSalt order in the US.

WANdisco Name 298.5p £196.5m (WAND.L)

The data activation platform, has won a new Internet of Things contract with a large European automotive components supplier. The Client has entered into a Commit-to-Consume contract which is valued at a minimum of $5m over five years, to replicate over an exabyte of automobile sensor data to the Amazon Web Services’ cloud. The terms of the contract provide that 50% of the $5m will be paid in advance. As it is a Commit-to-Consume contract, revenue will be recognised as the customer moves its data.

Zenova Group 15.8p £14.7m (ZED.L)

The provider of innovative fire safety and heat management technology and products, has commissioned Gardiner Associates Training and Research (GATR) to undertake live demonstrations of its Zenova FP fire protection paint in various environments, including furnished domestic rooms. Taking place in mid-August and early September, those attending the demonstration events will include experts from the insurance sector, fire & rescue services and police services. GATR is Europe’s largest provider of fire investigation training programmes and over the past 25 yrs and have delivered hundreds of theory and hands-on practical courses to thousands of representatives from UK and overseas fire & rescue services, police services, the forensic providers and insurance industry.

4 July 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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