Small Cap Feast

6th November 2023

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What’s Cooking In The IPO Kitchen?

Tekcapital announced intention to spin off and IPO on 2 October: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.

Stranger Holdings announced 02 October 2023, a Company formed for the purpose of acquiring a business, project or assets announces a Proposed Acquisition of up to a 70% interest in the Henkries Uranium Deposit and Prospecting Right in the Republic of South Africa. The Company will acquire this indirect ownership via the acquisition of two intermediary holding companies, namely Mayflower Energy Metals Limited and Neo Uranium Africa Proprietary Limited. The Acquisition constitutes a Reverse Takeover under the Listing Rules since, in substance it results in a fundamental change in the business of the issuer. Trading in the Existing Ordinary Shares continues to be suspended. It is anticipated that Re-Admission and trading in the Company's Enlarged Share Capital will occur on or around 7 November 2023.

Breakfast Buffet

Celsius Resources 0.60p £13m (CLA.L)
The resources exploration and development Company announces that it has received the renewal of the exclusive prospecting license for the Opuwo Cobalt Project which is held under its Namibian subsidiary, Opuwo Cobalt Holdings (Pty) Ltd. The Namibian Ministry of Mines and Energy issued the two year renewal of the exclusive prospecting license for EPL 4346 on 11 October 2023, which covers approximately 683 km2. This will enable Celsius to further evaluate the project's viability with a view to finding a suitable partner. This project can potentially produce cobalt in a politically stable country.

Faron Pharmaceuticals 275p £189.2m (FARN.L)
The clinical-stage biopharma company pioneering macrophage reprogramming for effective anticancer immunotherapies announces that based on guidance from the U.S. Food and Drug Administration, hypomethylating agents -refractory or relapsed myelodysplastic syndromes has been selected as the initial indication to advance to Phase 2 in the BEXMAB study investigating bexmarilimab in combination with standard of care.

Kitwave 260p £182m (KITW.L)
The delivered wholesale business announces a trading update for the year ended 31 October 2023 (FY23). Following a strong performance in the first half of FY23, positive momentum continued across all of the Group's divisions. As a result, the Board expects the full-year financial results to be in line with current market expectations. Meanwhile, Paul Young, Chief Executive Officer, will be retiring and stepping down from the Board at the end of the Company's AGM to be held in March 2024. Ben Maxted, the Chief Operating Officer, will become Chief Executive Officer following Paul's retirement.

OPG Power Ventures 13.0p £52.1m (OPG.L)
The developer and operator of power generation assets in India announces its final results for the year ended 31 March 2023. FY23 revenue decreased by 26.7% to £58.7m, primarily due to lower generation on account of high coal prices and the Group's focus on profitable contracts. The profit before tax was £10.4m (FY 22: £13.0m). The Plant Load Factor (PLF) for the half year period to 30 September 2023 was at 64%. OPG continues to operate at an optimum PLF with a mix of long term and short term contracts with state utilities, and supplies through the Exchange.

Plexus Holdings 18p £18.6m (POS.L)
The oil and gas engineering services business announces a rental contract award from Neptune Energy UK. The contract is for Adjustable Surface Wellhead equipment and Mudline Tooling to allow the permanent abandonment of a UK North Sea well, with operations planned for commencement and completion during Q2 2024. The contract value is in excess of £175,000 and is yet another example of the growing rental wellhead market for jackup rigs engaged in both plug and abandonment operations and exploration well drilling.

Powerhouse Energy Group 0.255p £10.6m (PHE.L)
The creator, designer, and developer of a sustainable technology to recover clean energy, makes reference to its announcement on 15 September 2023 regarding the grant of its European patent application. On 3 November 2023, the Company received notification from the European Patent Office that the process for publication of the specification of the patent covered by the Grant was stayed on 9 October 2023. The Company has also been advised that the 'stay' attached to a granted patent would be removed upon the dismissal of such a claim. On 6 October 2023, an as-yet unspecified claim against the Company brought by GetGo Recycling Limited (14520867) (GetGo) was filed in the High Court in London (the Claim). The Company considers the Claim to be entirely without merit and vexatious and will vigorously defend any claim on its Intellectual Property. The Company has not had any dealings or any communication with GetGo.

Roquefort Therapeutics* 7.25p £9.4m (ROQ.L)
The biotech company focused on developing first in class medicines in the high value and high growth oncology market announces that the Mesodermal killer (MK) cell program has reached a significant milestone. The Company's MK cells are a proprietary and novel class of cellular medicine. In the new results announced today, MK cells were tested in combination with NK cells and showed: (1) the activation of NK cells; and (2) that this activation produced up to a two-fold increase in cytotoxicity over NK cells alone in three different difficult to treat cancers: Ovarian cancer, Acute myeloid leukemia and Multiple myeloma. This demonstration of the activation of NK cells in multiple cancer types including solid tumours, lymphomas and leukaemia is a significant commercial milestone because the NK cell activation is a highly attractive modality for large pharmaceutical companies.

SDI Group 116p £120.7m (SDI.L)
The Company focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications announces the acquisition on 3 November 2023 of Peak Sensors Holdings Limited, a UK manufacturer of temperature sensors. The total consideration is forecast to be approximately £2.4m. Peak Sensors’ revenues for the year ended 31 March 2023 were £2.1m, with an EBIT of c.£330,000. The acquisition is expected to be earnings enhancing in the first full year of ownership.

Springfield Properties 55p £65.2m (SPR.L)
The housebuilder in Scotland focused on delivering private and affordable housing announces that it has signed a new affordable housing contract, worth £6.1m, with The Highland Council. The design and build phase of the contract is due to commence in the coming weeks and be delivered over a period of approximately 18 months, with the Group receiving payment on a monthly basis. As noted in the Group's FY 2023 results announcement, the increase in the Scottish Government's affordable housing investment benchmarks in June has made affordable housing projects more attractive. This market is supported by strong fundamentals, including a Scottish Government target to deliver 110,000 new affordable homes by 2032.

Ten Lifestyle Group 91.5p £77.6m (TENG.L)
The global concierge platform driving customer loyalty announces the following contract expansions and new business wins: (i) An existing financial services client in the Americas has upscaled its contact. This increase from a Medium to a Large contract is expected to begin generating additional revenue from March 2024. (ii) Ten has entered into a contract with a new global Private Bank client with customers across AMEA. This service is expected to be launched across multiple markets in the region in 1H24. Once fully launched, this client is anticipated to equate to a Medium contract. (iii) Ten has signed an agreement with a niche B2B financial services client. Full launch of this partnership is expected to grow to a Medium contract in 2H24.

6 November 2023
*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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