Small Cap Feast

7th February 2024

Dish of the day
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Dish Of The Day:



Whats baking in the oven?

Potential Initial Public Offerings:

12 January: The London Tunnels PLC announces its intention to seek Admission to the Standard Segment of the Official List and to trading on the Main Market of the LSE. The Company plans to restore, adaptively reuse and bring back to life the Kingsway Exchange Tunnels in Central London, originally built in the early 1940’s, and designed to shelter people during the London Blitz. The Company has successfully raised approximately £10m from investors and aims to admit its Ordinary Shares at a price of £2.00 per share to the Main Market. The Company is expected to have a market capitalisation of approximately £123m on Admission. Delayed: Expected Admission was before the end of January 2024.

Reverse Takeovers:

30 January: Location Sciences Group Plc is proposing to acquire the entire issued share capital of Sorted Holdings Limited (Sorted) for a nominal consideration of £1.00 (Acquisition). Sorted operates a software-as-a-service (SaaS) business model providing delivery experience software which serves ecommerce retailers - from large, global enterprises to smaller, independent start-ups. Pursuant to Rule 14 of the AIM Rules for Companies, the Acquisition constitutes a reverse takeover. Capital to be raised on Admission is approximately £2.0m via a subscription for new Ordinary Shares. Anticipated market capitalisation on Admission is approximately £6.68m. Expected AIM Admission date is 19 February 2024.

Change of Market:

Banquet Buffet

Aurrigo International 95p £43.5m (AURR.L)
A leading international provider of transport technology solutions has signed an agreement with the Digital Testbed Air Cargo Project Consortium (DTAC) to deploy the Company's Auto-DollyTug at Munich International Airport for autonomous cargo transport trials. This agreement follows on from the recent project announcement with DTAC at Stuttgart Airport. Auto-DollyTug is scheduled to be deployed in Q2 2024, with results published in Q3 2024. The project is being funded by the German Federal Ministry of Digital and Transport.

Creo Medical Group 39p £141.0m (CREO.L)
The medical device Company focused on the emerging field of minimally invasive surgical endoscopy for pre-cancer and cancer patients provides a trading update for the year ended 31 December 2023. Group revenues grew 13% from £27.2m in FY22 to £30.8m in FY23. Underlying operating costs were reduced by £3.7m (a reduction of 10% YoY) through tight cost control. As a result, the EBITDA loss was reduced to £16.4m (FY22: £20.8m). The Company looks forward to another year of strong growth and remain confident of its goal to achieve cashflow break even in 2025.

Deltic Energy 31.5p £29.3m (DELT.L)
The natural resources investing Company with a high impact exploration and appraisal portfolio focused on the Southern North Sea announces that it has entered into an agreement in respect of the farm-out of a 25% interest in Licence P2437, containing the Selene Prospect, to Dana Petroleum (E&P) Limited on the following terms: $500K in cash on completion in relation to back costs incurred by Deltic; Dana to carry Deltic for its residual cost exposure to the Selene well (after utilisation of the existing carry from the Shell farm-out) to a value of $5m, and $6m if successful; and Dana to pay its 25% share of costs from 1 January 2024.

Goldplat plc 6.1p £10.2m (GDP.L)
The AIM listed Mining Services Group, with international gold recovery operations located in South Africa and Ghana, announces an operational update for the 2nd quarter ended 31 December 2023 (Q2 FY24). The operation in Ghana achieved an operating profit of £1.82m (£1.03m Q2 FY23) driven by strong supplies and the sale of inventory. South Africa's performance continues to be impacted by electricity cuts and a reduction in by-product supply. This resulted in an operating loss of £315k for the quarter (£356k operating profit Q2 2023). The combined operating profit was £1.505m during the quarter, up 9% compared to £1,382m in Q2 FY23 and £3.368m (excluding listing and head office costs, interest and foreign exchange movements) in 1H FY24, up 20% from £2.813m H1 FY23.

GreenRoc Mining 1.85p £3.1m (GROC.L)
The Company focused on the development of critical mineral projects in Greenland announces that, following a modification to Greenland's mining laws that became effective on 1 January 2024, the Company expects to be in a position to apply for an Exploitation Licence for its Amitsoq Graphite Project (Amitsoq) in South Greenland in the first half of 2024, paving the way to a possible licence grant before the end of 2024. The exploration licence for the Melville Bay Iron Project has been surrendered.

Helium One Global 1.825p £62.1m (HE1.L)
The primary helium explorer in Tanzania announces that it has raised £4.7m, before expenses, through a Company led placing at a price of 1.5p per share, a discount of approximately 30% to the closing share price of 2.16p on 06 February 2024. The Placing has been undertaken with long term supportive investors. This Placing enables the Company to determine the next stage of its work programme following the success of the Tai-3 and Itumbula West-1 exploration wells.

Pennant International 33.5p £12.4m (PEN.L)
The IPS (integrated product Support) software and services Company provides a trading update for the year ended 31 December 2023 (FY23). Revenues were £15.5m, up 13% (2022: £13.7m) and adjusted EBIT was £0.4m (2022: EBIT loss of £1.0m). Net debt at the year-end was £1.9m (2022: net debt of £0.4m), with post year-end receipts resulting in a net cash of £0.3m during the week commencing 15 January. In addition, the Company announces that Ian Dighé has been appointed to the Board as an independent non-executive director and Chair designate. Phil Cotton will step down as Chair at the next AGM to be held in May 2024. Following the AGM, Phil Cotton will continue to serve on the Board as an independent non-executive director.

Redx Pharma 32.5p £126.4m (REDX.L)
Jazz Pharmaceuticals (Nasdaq: JAZZ) and Redx Pharma announced that the companies have signed a definitive agreement under which Jazz will acquire Redx's KRAS (Kirsten rat sarcoma virus) inhibitor program. Jazz and Redx will collaborate to advance candidates through IND-enabling (Investigational New Drug) studies; Jazz will be responsible for all clinical development, regulatory, manufacturing and commercialization activities. Jazz will make an upfront payment to Redx of $10m. Redx is eligible to receive up to $870m in development, regulatory and commercial milestone payments, in addition to tiered, mid-single digit percentage royalties based on any future net sales.

Vast Resources 0.0875p £4.9m (VAST.L)
The mining and development Company focusing on high-quality brownfield projects announces the Q4 2023 production report at its Baita Plai Polymetallic Mine (Baita Plai) in Romania. A total of 24,178 tonnes mined, 562 DMT (dry metric tonnes) concentrate produced at 18% Cu concentrate grade during the quarter, compared to 25,600 tonnes mined, 559 DMT (dry metric tonnes) concentrate produced at 21% Cu concentrate grade in Q3 2023. As expected, the average copper concentrate grade decreased in Q4 2023 due to the area that was being mined. However, subsequent to the period end, the quality of concentrate has improved as the Company begins to access higher grade zones.

Zinc Media Group 84.5p £19.2m (ZIN.L)
The award-winning television and content production Group announces that it expects to deliver a record year of revenue and profitability in line with market expectations for FY23, and is starting FY24 with the highest level of forward bookings. FY23 revenue increased over 30% to £40m (FY22: £30m) driven by 20% organic growth in television revenues and a full year of recognition of The Edge (acquired in August 2022). Adjusted EBITDA is expected to be £1m (FY22: £0.1m), the highest for over ten years and in line with market expectations. The cash balance was £4.9m as at 31 December 2023 (31 December 2022: £3.6m), driven by a positive trading performance and working capital inflows.

7 February 2024
*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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