Small Cap Feast

5th April 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
AdvancedAdvT Limited (ADVT) has been readmitted to the Main Market following the reverse takeover of M&C Saatchi.
Off The Menu:
Simigon and Clinigen have left AIM.

What’s Cooking In The IPO Kitchen?

First Tin plc, a tin development company with advanced, low capex projects in Germany and Australia, intends to list on the Main Market. First Tin is led by an experienced team of tin specialists, committed to the environmentally sensitive and low carbon development of advanced hard rock tin projects in conflict free, low political risk jurisdictions. The Company has raised £20m to execute its plan to bring its two 100% owned tin mines into production before the end of 2025 so that it can provide provenance of supply to support the current global clean energy and technological revolutions. Expected 8 April 2022.

Anglesey Mining, a UK mining company currently listed on the Main Market (Premium) intends to move to AIM. Anglesey’s principal asset is a 100% interest in the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales. Anglesey is currently exploring and developing the property, which has a high potential for the discovery of additional mineral resources through the development of a new, modern mine in an environmentally sustainable manner. Anticipated Mkt Cap TBC, current capitalisation c£8m. Expected 8 April 2022.

Cordiant Global Agricultural Income plc intends to float on the Main Market (Premium). The Company’s investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector. The Company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions. The Company will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit. Targeting gross proceeds of US$300m. Expected 12 April 2022.

Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC.

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. Mkt Cap approximately £80m. Raising up to £30m. Due early April 2022.

Breakfast Buffet

Atalaya Mining 390p £548.9m (ATYM.L)

New Mineral Resource Estimate, prepared in accordance with CIM guidelines and disclosure requirements of NI 43-101, for its 100% owned Proyecto Masa Valverde (PMV). PMV is located in the Iberian Pyrite Belt of southern Spain approximately 28 km to the south of Atalaya’s 15 Mtpa processing plant at Proyecto Riotinto. PMV consists of two deposits, Masa Valverde and Majadales, which are 1km apart. Majadales was initially discovered by Atalaya’s exploration team in 2019. Significant increase in tonnage and contained copper, silver and gold vs. prior estimate. Increases of 42%, 33%, 26% and 34%, respectively at the Masa Valverde deposit. Masa Valverde Initial Indicated Mineral Resource: 16.9 Mt at 0.66% Cu, 1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au (1.51% CuEq). Containing an estimated 112 kt Cu, 262 kt Zn, 110 kt Pb, 14.7 Moz Ag, 0.3 Moz Au. Masa Valverde Inferred Mineral Resource: 73.4 Mt at 0.61% Cu, 1.24% Zn, 0.61% Pb, 30 g/t Ag and 0.62 g/t Au (1.37% CuEq). Containing an estimated 448 kt Cu, 911 kt Zn, 448 kt Pb, 70.8 Moz Ag, 1.5 Moz Au. Two copper-rich zones (10.2 Mt Indicated and 48.1 Mt Inferred) could deliver higher grade material for processing at the existing Proyecto Riotinto plant with minimal modifications. Majadales Initial Inferred Mineral Resource: 3.1 Mt at 0.94% Cu, 3.08% Zn, 1.43% Pb, 54 g/t Ag and 0.32 g/t Au (2.55% CuEq).A Preliminary Economic Assessment on PMV is expected to be completed in H2 2022, with a focus on scenarios that would leverage the existing plant at Proyecto Riotinto and access the orebodies via a single ramp.

Aferian 135.5p £115m (AFRN.L)

The B2B video streaming solutions company, today has acquired 100% of the issued share capital of Exabre Limited, trading as The Filter, a UK-headquartered AI-powered video recommendation service. The Filter’s cutting-edge data science, analysis and machine learning technologies help consumers find and watch more of the video content they love. The Filter’s customers include streaming providers Joyn in Germany, EPIX in the USA and BBC Studio owned UKTV Play in the UK. The Filter generated a loss before tax of $0.5m for the year ended 31 December 2021 and had total assets of $1.0m as at 31 December 2021. The initial consideration is £1.5m ($2.0m), satisfied in cash, of which £1.2m ($1.6m) was paid on completion and £0.3m ($0.4m) has been deferred until 18 months after the acquisition date. Additional consideration is payable, of up to £2.5m ($3.2m), subject to achieving certain annual recurring revenue (ARR) growth at increments of additional ARR of £0.5m ($0.6m). The additional consideration will be settled in cash and payable in two tranches, at the first and second anniversaries of the acquisition.

Belluscura 113.5p £129.2m (BELL.L)

The medical device developer focused on lightweight and portable oxygen enrichment technology, announces that Jim Clement has joined the Company as Head of Commercial Strategy. Jim has over 30 years’ experience in the durable medical equipment industry, including previously holding the title of General Manager of a portable oxygen concentrator company. Over his extensive career, Jim has held leadership positions in all areas of medical device manufacturing, particularly focused on Commercial Operations and Global Product Development of oxygen therapy devices. Robert Rauker, Chief Executive Officer, Belluscura plc, commented: “We are very excited to have Jim join our team. His extensive knowledge of the industry will be a valuable asset to the Company.”

DP Poland 7.25p £45m (DPP.L)

DP Poland, the operator of pizza stores and restaurants across Poland announced the appointment of Peter Furlong to the Board as Non-Executive Director, with immediate effect. Mr Furlong has a background working as a debt and equity proprietary trader with Morgan Stanley and RBS. Following this, he joined Pageant Holdings Limited, an Ireland-based family office where he is currently a Director. Pageant has been invested in DP Poland since 2013 and has supported the Company through its recent fundraising rounds in December 2020 and November 2021. Pageant is a family office that invests in undervalued stocks and growth equity stories. Pageant holds 59,884,633 ordinary shares in DP Poland, equating to approximately 9.7% of the total voting rights. In addition, Nick Donaldson, Non-Executive Chairman of the Company, announces his intention to retire from the Board from the date of the 2022 annual general meeting.

E-Therapeutics 25.5p £131.8m (ETX.L)

The specialist in computational drug discovery with a focus on developing RNA interference (RNA) therapeutics, announces that it has entered into a research collaboration agreement with iTeos Therapeutics, Inc. (iTeos, Nasdaq: ITOS), a clinical-stage biopharmaceutical company pioneering the discovery and development of a new generation of highly differentiated immuno-oncology therapeutics for patients. The collaboration will focus on the discovery of novel therapeutic approaches and targets in immuno-oncology. e-therapeutics will remain free to explore additional collaborations in the space. Under the terms of the agreement, e-therapeutics will receive upfront and near-term cash payments material to the revenue of the Company. The Company is also eligible to receive undisclosed milestone payments through pre-clinical and clinical development, in addition to regulatory milestones per programme.

Faron Pharma 222.5p £118.4m (FARN.L)

The clinical stage biopharmaceutical company focused on building the future of immunotherapy by harnessing the power of the immune system to tackle cancer and inflammation, today announced that, due to low COVID-19 hospitalisation rates and a shortage of patients not already receiving steroids, the Company is closing its Phase II/III HIBISCUS trial assessing Traumakine (Intravenous Interferon beta-1a; IFN beta-1a) as a first-line treatment for hospitalised COVID-19 patients who require low flow oxygen support. The Company’s decision was based on a recommendation from the HIBISCUS Independent Data Monitoring Committee (IDMC) to discontinue the study due to slow recruitment. The IDMC also informed the Company that there were no safety concerns related to treatment of enrolled patients. Traumakine will be re-positioned for multiple indications in organ protection together with partnerships. Near term value inflections are expected from the accelerated development of Bexmarilimab.

Intercede Group 44p £25.5m (IGP.L)

Intercede, the leading specialist in digital identity, credential management and secure mobility, announces that, subject to the completion of the year end audit, revenues for the year ended 31 March 2022 are expected to be in the region of £9.9-10m, which is approximately 9% lower than the previous financial year (4% lower at constant exchange rates). Whilst the number of new deployments is the highest in recent years, delays have been experienced with a number of large new opportunities that had been expected to close this year and consequently there has not been a substantial license order received during the year ended 31 March 2022. Furthermore, COVID-19 has continued to impact trading outside the US market. Although revenues are lower than market expectations, strong progress has been made during the past year with all other aspects of the business. MyID v12 has been launched which includes FIDO functionality thereby enabling the Group to substantially increase its addressable market following the long-awaited issue of FIPS 201-3 which finally took place in February 2022. New partnerships have also been formed during the year in Europe, the US, ASEAN, Latin America and Africa which is critical for the Group’s future growth prospects. Having increased the value of annual recurring revenues from Support & Maintenance plus repeatable Professional Services revenues to reach the point where they now largely cover annual fixed costs, the Group is expected to remain profitable. As at 31 March 2022, gross cash balances totalled £7.8m (2021: £8m).

Ondine Biomedical 47p £91.5m (OBI.L)

Independent research has confirmed previous results showing that Ondine Biomedical’s photodisinfection technology is highly effective against human clinical isolates of SARS-CoV-2. The study, published in the Journal of Photochemical & Photobiological Sciences, was led by a team of researchers from the University of Coimbra, Portugal, and was conducted at leading European research centre, the University of Coimbra Hospital Centre (CHUC). The study was made possible through a grant from Centro2020 of PT2020 (European Regional Development Fund, Fotovid project n. 49708) to LaserLeap Technologies, a partner in this study. Key findings from the study reconfirmed that a single dose of photodisinfection is capable of destroying both the SARS-CoV-2 viral spike and viral genome, reducing viral load to below detection limit within 5 minutes. In addition, the photodisinfection treatment was found to inhibit SARS-CoV-2 infectivity in mammalian cell culture by 99.99%, inactivating the virus with minimal toxicity to the mammalian cells.

Sovereign Metals 51p £220.5m (SVML.L)

Updated mineral resource estimate (MRE) confirms Kasiya as the world’s largest rutile deposit and second largest graphite deposit. Contained rutile at the Kasiya mega-deposit now stands at 18 Mt – tripling the previous MRE. Contained flake graphite by-product now stands at 23 Mt. High global resource grade @ 1.64% RutEq (recovered rutile + recovered graphite). 662 Mt (37%) of the total MRE reports to the Indicated category with remainder in Inferred category. Scoping Study to be updated to reflect the substantial MRE scale increase to examine the impact of higher grades, increased production volumes and increased mine-life.

Water Intelligence 810p £140.6m (WATR.L)

The multinational provider of precision, minimally-invasive, leak detection and remediation solutions for both potable and non-potable water is accelerating its multi-year growth plan with an expansion of its credit facilities to include an additional $15m for further acquisitions of its American Leak Detection franchises (ALOC) and a two-year extension of its $2m line for working capital. The New Facilities grow the Group’s long-standing commercial banking relationship with People’s United Bank. Today’s transaction also launches a broader relationship with People’s new parent M&T Bank Corp, a leading bank in the United States. Today’s financing will facilitate continued accretive growth for all shareholders because the ALOC provides $15m of non-dilutive capital to reacquire a portion of the approximately $100m of profitable gross sales currently being executed by franchisees within the Group’s American Leak Detection subsidiary.

5 April 2022
*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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