Small Cap Feast

8th January 2024

Dish of the day
No Joiners today
Off the menu
No leavers today
Happy New Year to all our Readers!

Dish Of The Day:

Admissions whilst we were away: 
18 December 2023: Good Life Plus (AQSE: GDLF) joined the Access Segment of the Aquis Stock Exchange following a reverse take-over. Formally Semper Fortis Esports Plc, Good Life Plus operates an entertainment focused monthly subscription service for consumers that provides access to daily luxury prize draws, along with numerous offers, discounts and rewards. Gross proceeds raised upon Admission of £1.4m at a price of 2 pence per share. Market Capitalisation on Admission was approximately £12.58m. 
20 December 2023: EnergyPathways Plc (EPP.L) - Formally Dial Square Investments which was listed on the Standard Listing of the Main Market transferred from the Main Market and joined the AIM Market via an acquisition of EnergyPathways Limited which constituted a reverse take-over. The Company raised gross proceeds of £2m at a price of 4 pence per share. Market Capitalisation on Admission of approximately £6.32m. 
21 December 2023: Kondor AI ITF: A U.K. registered AI company planning to launch the Kondor AI app, which will analyse pictures and live photos and provide solutions to questions and challenges based on visual input, successfully completed its Admission to the AQSE Growth Market. 
4 January 2024: SigmaRoc (SRC.L) announces its Admission to AIM following a reverse take-over after the Company announced it entered into an agreement to acquire certain European lime businesses from CRH plc (CRH) comprising of standalone businesses in Germany, the Czech Republic and Ireland (Deal 1 Targets). The total consideration payable by SigmaRoc for the Deal 1 Targets was EUR745m (£645m). The Company raised £198.8m from the Placing and £1.2m from the Retail Offer. Market capitalisation on Admission was c.£530m (at an issue price of 47.5 pence) and the share opened at 53.4p, a market capitalisation of £595.3m.

Delistings whilst we were away and today: 
18 December: Yooma Wellness Inc (AQSE: YOOM) withdrew from the Aquis Market 
19 December: Reconstruction Capital II Ltd (RC2.L) left AIM 
20 December: Gresham House Plc (GHE.L) left AIM 
22 December: Wentworth Resources Plc (WEN.L) left AIM 
22 December: Restaurant Grp Plc (RTN.L) left AIM 
27 December: Deepverge Plc (DVRG.L) left AIM 
27 December: Scotgold Resources Plc (SGZ.L) left AIM 
28 December: Scotgold Resources Plc (AQSE: SGZ) withdrew from the Aquis Market where it was dual listed 
02 January 2024: Guanajuato Silver Company (AQSE: GSVR) withdrew from the Aquis Market 
04 January: Petroneft Resources Plc (PTR.L) left AIM 
04 January: MBH Corporation (AQSE: M8H) withdrew from the Aquis Market 
05 January: Real Good Food Plc (RGD.L) left AIM 
08 January: Online Blockchain Plc (OBC.L) left AIM 
08 January: Tintra Plc (TNT.L) left AIM

Whats baking in the oven?

Potential Initial Public Offerings:


Reverse Takeovers:


Change of Market:
05 December: AdvancedAdvT Limited (ADVT.L):
Intends to delist from its Standard Listing of the Main Market on 10 January and apply for the Admission of its shares to trading on AIM on 10 January 2024. The Company will not raise additional capital on Admission. Anticipated market capitalisation on Admission is c.£109m (based on the pre suspension price of 82 pence per share).

Banquet Buffet

Arecor Therapeutics 174p £53.3m (AREC.L)
The biopharmaceutical group announces the expansion of its ongoing, exclusive formulation study collaboration with one of the world's largest chemicals marketing and pharmaceuticals companies, which focuses on the development and commercialisation of speciality drugs. The collaboration since it began in November 2022 uses Arecor’s proprietary formulation technology platform, Arestat™, to develop a differentiated, ready-to-use liquid formulation of its partner's product, AT351. Arecor will undertake additional in-house activities to accelerate the development programme and progress towards its partner's Pre-Investigational New Drug (Pre-IND) meeting with the US FDA.

Celebrus Technologies 236p £93.5m (CLBS.L)
The data solutions provider announces several contract wins made during the quarter to 31 December 2023: (1) a three-year deal with a new customer; a European retailer of experience gifts; (2) a contract with an existing top 10 banking customer, which has renewed its multi-million dollar annual license for a further three years, increasing ARR to the Group by 19% from the original contract; (3) a contract win with a UK bank for a three-year multi-million dollar contract for the full Celebrus platform; (4) a three-year contract with a new customer in the US healthcare sector.

CMO Group 24p £17.3m (CMO.L)
The online-only retailer of building materials, announces an update for the full year to 31 December 2023. As consumers shifted towards smaller projects due to the ongoing economic challenges and average orders values were lower in the latter part of 2023. The total sales for the year to 31 December 2023 are expected to be broadly in-line at c.£71.5m (2022: £83.1m), full-year adjusted EBITDA is expected to be c.£1m (2022: £2.1m), below previous guidance. The Group remains well financed with cash of c. £4.3m (FY22: £6.2m) and net debt at 31 December 2023 of £1m (FY22: net cash £1.4m).

Croma Security Solutions 67p £9.2m (CSSG.L)
The security solutions provider announces that it has completed the acquisition of two separate locksmith businesses for a combined cash consideration of £438k which includes a freehold property valued at £0.35m. The two locksmith businesses have a combined annual turnover of £0.5m and are a good fit with the Group's existing network. The acquisitions are part of the Group's ambitions to roll out its security centre network nationwide and takes the total number of centres to 16. There are further acquisition opportunities under consideration by management with the potential to transform more traditional locksmiths into modern security centres with stronger in-store product ranges and greater profit potential.

Emmerson 1.35p £13.9m (EML.L)
The company that is developing the Khemisset Potash Project in Morocco provides an update on activities during Q4 2023. Emmerson is still awaiting the session of the Commission Ministérielle de Pilotage to obtain environmental approval. In December 2023, the Company announced the extension of the appointment of a syndicate of international and Moroccan banks as initial mandated lead arrangers (MLAs) to co-ordinate and fund dual-tranche debt financing facilities for the development of the Project for a further 12 months until 31 December 2024. The debt facility under discussion amounts to US$310m, including an ECA-covered tranche of US$230m supported by UK Export Finance, and a dual currency (US$ and Moroccan Dirham) commercial tranche of US$80m.

Helium One Global 0.225p £7.7m (HE1.L)
The helium explorer in Tanzania announces that drilling at the Itumbula West-1 well commenced on 06 January 2024. Downhole reservoir testing equipment has been mobilised internationally to perform open hole well testing and fully evaluate the fault zones. Portable mass spectrometer and field pressure-volume-temperature specialist are on site to measure and validate helium gas shows as well as downhole samples. Baker Hughes, an energy technology company, continues to provide third party services for wireline, fluids and cementing. Part relinquishment of Prospecting Licence (PL) 10704/2015 in the Balangida Rift Basin, following an internal license review completed earlier last year, is now ratified by Tanzanian Government.

Huddled Group 3.85p £12.3m (HUD.L)
The company focused on building a portfolio of e-commerce brands, reports an update on unaudited results for the year ending 31 December 2023 (FY23). Revenue from continuing operations (constituting Discount Dragon and Let's Explore) is expected to be £2.2m, with almost all of this falling in the last quarter of the year during which the acquisition of Discount Dragon was completed and the Let's Explore division entered its peak trading period. Profit on disposal of the LBE and Uvisan divisions is £15m. Net cash was £4.2m as at 31 December 2023 and further cash of $1.25m is due to be received in February 2024 from the settlement of the loan note by the buyer of the Immotion Location Based Entertainment VR business.

Kibo Energy* 0.0375p £1.4m (KIBO.L)
The renewable energy-focused development company provides an update on its subsidiary Mast Energy Developments (MED) regarding MED’s Joint Venture Agreement (JVA) with Proventure Holdings (UK) Ltd, part of the Proventure Group. Proventure has still not made the first £1m payment to the Project Special Purpose Vehicle, which MED now understands was delayed due to a lack of coordination and administrative difficulties on the side of Proventure over the festive period. Proventure CEO, Mr. Kona, will travel to London soon to work with MED to expedite the delivery of the overdue payments, as well as to finalise the outstanding administration to complete the JVA transaction. MED is furthermore in discussions with respect to an alternative source of short-term funding to ensure that any further delays regarding the JVA will not unduly impact MED's operations.

MediaZest* 0.0425p £0.6m (MDZ.L)
The creative audio-visual company announces that it has raised a total of £120k (before expenses) via the issue of ordinary shares at a price of 0.04 pence per share. This represents a discount of approximately 6% to the closing middle market price of 0.0425 pence per share on 5 January 2024. The net proceeds will support working capital, business development and growth of the Company’s Dutch subsidiary to exploit new opportunities in the EU. The Company continues to sign regular repeat work on projects – often on a store by store or dealership by dealership basis. The value of MediaZest’s recurring revenue contracts has increased, with contracts currently running at around £700k per year on an annualised basis, some of which are multi-year deals. In addition, new European installations are predominantly geared towards strong recurring revenue streams and 3-year deals.

Surface Transforms 11.25p £39.6m (SCE.L)
The manufacturers of carbon fibre reinforced ceramic automotive brake discs, provides a trading update for the year to 31 December 2023 (FY23). Subject to audit, revenue for FY23 grew 63% to £8.3m (2022: £5.1m). Gross cash at 31 December 2023 was £6.1m, including the cash received from the December 2023 equity fundraising. The Company is maintaining its revenue guidance for 2024 at £23m. Overall, the outlook for 2024 to 2027 continues to remain positive reflecting contracts in series production and recent new business announcements, with capacity being installed to fulfil these awards.

8 January 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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