Small Cap Feast

6th July 2023

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What’s Cooking In The IPO Kitchen?

Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join intends to join the Access Segment of the AQSE Growth Market. Expected Admission 20 July 2023.

Metals One Plc, a company focusing on acquiring natural resources projects with a focus on critical battery metals, including nickel, lithium, cobalt and copper intends to join the AIM Market. The Company will have interests in the Paltamo and Rautavaara projects (nickel, copper, zinc) in Finland (together the Black Schist Project) and the Brownfield Råna Nickel project in Norway (Brownfield Rana Project). These projects represent opportunities to develop deposits of scale, in stable jurisdictions, well situated to supply fastest growing European electric vehicle and energy storage markets. The Company aims to raise £2.5m at 5 pence per share with an anticipated market cap of £10.77m. Expected Admission date is 17 July 2023.

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the Access Segment of the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience.

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

CAB Payments Holdings Limited, a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets is joining the Premium Segment of the Main Market on around 11 July. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with the YTD adjusted EBITDA margin at 64%. CAB Payments has set an offer price of 335p per share, which will give it a debut market cap of £851.4m.

Breakfast Buffet

Byotrol 2.0p £9.1m (BYOT.L)
The specialist infection prevention and control company, reports the approval of a UK patent following its discovery of unique anti-viral properties of certain enhanced extracts of commonly available brown seaweed. The award has been supported by the scientists at the University of Liverpool led by Professor James Stewart, and by funding received from the Biotechnology and Biological Sciences Research Council (BBSRC) and Innovate UK. The grant of the patent application gives Byotrol validated, valuable and protected intellectual property, to support the development of commercial relationships.

Canadian Overseas Petroleum 2.05p £11.8m (COPL.L)
The international oil and gas exploration, production and development company with operations focused in Converse and Natrona counties, Wyoming, USA, provides an update on its operations. Oil Production in Q2 rebounded to an average 1,250 Bbl./d, with production for the month of June averaging 1,249 Bbl./d following pipelining at the Company’s Barron Flats Shannon Unit (BFSU) which caused intermittent interruptions in injection volumes and production volumes. Construction of the BFSU’s $4.5m high-pressure gas gathering system upgrade is on target for completion this month as previously disclosed. Three conversions of BFSU flowing wells to pumping-flowing wells have been completed and performance has been within expectations.

Distil 0.45p £3.1m (DIS.L)
The owner of premium drinks RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka, Blavod Black Vodka and Diva Vodka, provides a trading update on the first quarter (April - June 2023) of its current financial year. Revenues increased 206% from £119k to £364k year-on-year. The business remodel has given the team greater control of its marketing investment, and as a result, marketing investment decreased 72% year-on-year. This quarter RedLeg Spiced Rum activated directly with consumers at two key UK consumer events, The Great Escape Festival in Brighton (80,000 attendees), and Taste of London in Regents Park (55,000 attendees). This quarter also saw the successful launch of the RedLeg e-commerce site which allows Distil to sell directly to consumers online, delivering a new revenue stream for the business.

Ferrexpo 89.18p £533.4m (FXPO.L)
The premium iron ore pellet producer and exporter to the global steel industry, with operations in central Ukraine, and customers across Europe and Asia, reports production results for the second quarter (2Q 2023) and six months to the end of June 2023. The Group successfully operated two pelletiser lines, the second which was recommissioned earlier in the year, ramping up to add flexibility and capacity. Total iron ore pellet production for 2Q 2023 was 1,066m tonnes, 18% higher compared to the previous quarter, and for the 1H 2023 1,967m tonnes, a 57% increase compared to 2H 2022. Sales continued to be exported by rail and barge to Central-Eastern Europe, and the Black Sea. Sales for the quarter totalled 1.2m tonnes, 45% higher than the previous quarter, and 2.1m tonnes for 1H 2023, a 15% increase compared to 2H 2022.

Gelion 27.75p £30.1m (GELN.L)
The Anglo-Australian battery innovator provides an update on the strategic evaluation of its Zinc battery solution and on advances made on its Lithium Sulfur technology. Zinc battery solution: early progress has been made on the anode side, with improved system behaviour. However, the R&D Programme also identified potential safety concerns on the cathode side. As a result, Gelion is migrating to a zinc solution that avoids the potential safety concerns. Gelion expects to validate the potential of this technology over the next six months and report back in early 2024, keeping in line with the timelines communicated for the current R&D Programme. Lithium Sulfur: Gelion intends to increase the testing capacity of its R&D facilities by 50% in regard to the potential of intellectual property packages acquired from Johnson Matthey when combined with Gelion's existing technologies. The site will have the capability to increase Gelion's prototyping toward cell development and is due to be operational in September 2023.

Golden Metal Resources 8.75p £7.4m (GMET.L)
The mineral exploration company focused on tungsten, gold, copper and silver within Nevada, USA, announces the Company has staked claims over a significant footprint within the Kibby Basin, where lithium brine discoveries were recently made. The claims acquired sit very near to the Company's 100% owned flagship Pilot Mountain Project located within the prolific Walker Lake Mineral Belt in Nevada, USA. Nevada is a well-established lithium jurisdiction which hosts some of the United States and the world's largest lithium deposits including Thacker Pass and Silver Peak. Within the State, lithium is found predominantly within brines and clays.

Horizonte Minerals 158p £424.7m (HZM.L)
The nickel company developing two Tier 1 assets in Brazil, announces that it has received its mining approval permit for its 100%-owned Araguaia Nickel Project. The approval was issued by the Pará State Secretariat for Environment and Sustainability and enables Horizonte to commence its mining activities, with initial work underway to establish ore stockpiles on the ROM pad ahead of the commissioning phase. Over the course of the next six months, stockpiles will be established, with sufficient ore to feed the plant for the subsequent six months. The Pequizeiro Pit, located 750 metres from the plant site, will be the primary source of ore to Araguaia, supplying the first two years of the Project’s mine life and contributing over 50% of the mine production for the first ten years.

STV Group 234p £109.3m (STVG.L)
The Scottish digital media brand announces it has acquired, through its wholly-owned subsidiary STV Studios Limited, 100% of the issued share capital of unscripted television production network Greenbird Media Limited for a total cash consideration of approximately £24m, of which £21.4m was paid on completion. The acquisition will make STV Studios one of the largest production groups in the UK, and is major step towards its objective of becoming the UK's No.1 nations & regions producer. An initial cash payment of £21.4m includes £11.5m for the repayment of loan notes to Keshet at completion, a cash adjustment of £0.3m, and the balance payable to the existing shareholders, equivalent to 86% of the equity, including Keshet's entire equity interest. Deferred consideration in relation to the balance of 14% of the equity is payable to the Founders based on agreed EBITDA targets over the 2 years ending 31 December 2024.The remaining consideration of c.£1m relates to surplus cash balances held by the majority companies at completion.

TPXimpact Holdings 34.5p £31.8m (TPX.L)
The technology-enabled services company focused on people-powered transformation, announces its unaudited results for the year ended 31 March 2023. Performance is in line with market consensus. Revenue increased 5.0% to £83.7m (2022: £79.7m) and Adjusted EBITDA decreased to £2.5m (2022: £12.2m). The Company reported an operating loss of £19.4m (2022: operating profit of £3.2m), after including £11.8m non-cash impairment charge for goodwill/ intangible assets. Post period, trading for the first two months of FY24 has been in line with management expectations, with like-for-like revenue growth of over 5%. With over £80m of FY24 revenues represented by committed spend, the Group’s FY24 outlook remains unchanged with like-for-like revenue growth of 15-20% and adjusted EBITDA margins of 5-6%.

Virgin Wines 29p £16.2m (VINO.L)
The UK direct-to-consumer online wine retailers, announces it has signed a new strategic partnership with WH Smith Travel, one of the UK's leading travel retailers and part of WH Smith plc. The agreement represents progress for Virgin Wines as part of the Group's strategic focus on commercial partnerships. The exclusively curated range of quality wines is now stocked across 39 WH Smith stores within airports and train stations nationwide. Virgin Wines continues to explore additional potential value accretive partnerships, following others recently agreed with British brands including Saga, Moonpig and Currys.

6 July 2023
*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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