Small Cap Feast

8th June 2022

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What’s Cooking In The IPO Kitchen?

AssetCo plc, intends to join re-join AIM. The Company’s strategy is to develop an agile asset and wealth management company that meets the needs of investors in the 21st century by acquiring, managing and operating asset and wealth management activities and interests, together with other related services. The Company is in the process of acquiring the entire issued share capital of River and Mercantile Group plc (RMG), via a reverse takeover and therefore a Readmission Document is required for the enlarged group. Due 15 June 2022.

Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due Date 9th June 2022.

Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Silverwood Brands (AQSE:SLWD), has signed a conditional share purchase agreement for the acquisition by the Company of Balmonds Skincare Ltd, a UK based skincare company that manufactures cosmetic skincare products primarily for consumers who suffer from skin conditions such as eczema, psoriasis and dermatitis. Balmonds’ product line is made from natural ingredients that work to protect and hydrate sore and inflamed skin. The proposed acquisition of Balmonds constitutes a reverse takeover under the AQSE Growth Market Rules. AGM to be held on 15 June 2022.

Breakfast Buffet

1Spatial 50p £55.2m (SPA.L)

1Spatial, today announces that, following a direct award via G-Cloud 12, it has secured a new two-year contract with High Speed Two (HS2), the company responsible for developing the UK’s new high speed rail network, to build a data validation gateway. The gateway will enable HS2 to validate the quality, conformance and design of construction-related data submitted by their Supply Chain which in turn will contribute to the efficiency and effective information delivery on Europe’s largest infrastructure project. This is 1Spatial’s first significant contract with HS2 and has a total value over the two years of £0.9m, with potential options to extend for a further two years. The gateway will comprise 1Spatial’s 1Data Gateway product as a web portal for data uploading, and 1Integrate, to check the compliance and quality of the data against stringent HS2 standards and criteria. This will enable validated data to then be passed onto a Common Data Environment (CDE) to ensure compliance with wider UK government Digital Engineering initiatives. Through 1Spatial’s products, the gateway will create greater reliability of data and reduce risks by delivering consistent and accurate geometrical, geospatial, and non-geometrical data ingested across the full Common Data Environment (CDE) domain.

Arrow Exploration 20p £41.6m (AXL.L)

Further update on the Rio Cravo Sur-1 well located on the Tapir Block in the Llanos Basin of Colombia. Spud on May 23, 2022, the RCS-1 well was drilled to a true vertical depth of 8,105 feet on June 3rd. The well has been successfully cased and cemented as of June 6th. Initial technical evaluation indicates six separate oil-bearing reservoirs, two of which were not evident in RCE-1 or RCE-2. Cumulative net pay in all zones exceeds 55 feet. The six separate reservoirs were found in the C7, the Gacheta and the Ubaque, between 7,077 feet and 8,105 feet. Comprehensive testing of these individual zones will commence in the next few days. It is anticipated that each zone will require five days of testing that includes perforating, flowing and shut in for pressure buildup and analysis. The well will be put on production immediately following the testing program. RCE-2 continues to produce at a stabilized rate of 1,000 BOPD (500 BOPD net) from 2 separate reservoir units in the Lower Miocene Carbonera Formation. Four additional zones identified in RCE-2 will ultimately be produced from existing and future wells. Marshall Abbott, CEO of Arrow commented: “Initial evaluation continues to demonstrate the multi-zone potential of this fault bounded structure. Known zones were penetrated at the highest structural elevations yet. As well, 2 new oil-bearing zones have been identified which will add materially to the overall field development plan.”

Blancco Technology 207p £156.6m (BLTG.L)

The industry standard in data erasure and mobile lifecycle solutions has agreed to acquire WipeDrive Inc, formerly known as White Canyon Software Inc, a US-based provider of data erasure software solutions for corporations and public sector organisations. The Board expects the Acquisition to be immediately earnings enhancing upon completion. The total consideration for WipeDrive is up to US$10m (£8m), consisting of an initial cash consideration of US$8.5m to be paid on completion and further contingent consideration of up to US$1.5m to be paid in cash 12 months following completion subject to certain performance criteria. The total consideration will be financed through the Group’s existing cash and debt resources. Headquartered in Pleasant Grove, Utah, WipeDrive was previously named White Canyon Software Inc and changed its name to WipeDrive in 2021. WipeDrive provides data diagnostic, wiping, transfer and verifying software tools. WipeDrive has a significant customer base of over 500 organisations, spanning IT Asset Disposition, Asset Management Systems, corporate and government agencies, including Fortune 500 companies, and large US government bodies. WipeDrive also has various proprietary technologies that Blancco will leverage with its current client base.

Cordel Group 6.7p £11.5m (CRDL.L)

The Artificial Intelligence platform for transport corridor analytics, announces that in partnership with Holland LP, it has been awarded a contract to deliver its LiDAR-based solutions to the Southeastern Pennsylvania Transportation Authority (SEPTA) in the USA. SEPTA is one of the largest transit systems in the United States, serving five counties in the Greater Philadelphia area and connecting to transit systems in Delaware and New Jersey. SEPTA operates bus, rapid transit, commuter rail, light rail, and electric trolley bus services for nearly 4m people. Cordel’s specialist rail analytics subsidiary, Cordel Technology Inc, announced on 27 September 2021 the commencement of its partnership with Holland LP, a leading US rail inspection company. Cordel’s sensors “piggyback” on Holland’s testing vehicles, enabling customers to benefit from both partners’ inspection data streams without requiring additional track time.

ECR Minerals 1.3p £13.6m (ECR.L)

Progressive update from drilling at HR3, Bailieston with high gold intercepts received for hole BH3DD034. Visible gold was previously announced from this hole. ECR CEO Andrew Haythorpe commented: “This is an outstanding result, capably executed and delivered by Adam and the drill team. As a geologist myself, along with the team, I am excited by the continuity of grade and the manner in which the Maori Anticline is further revealing itself through each assay result. There is clearly much more to come.” Drillhole BH3DD034 returned four high gold grade intercepts at drilled depths; (0.3m@ 20.34 g/t Au from 18.2m), (0.65m @ 13.02 g/t Au from 54.2m), (0.3m @ 10.59 g/t Au from 97.9m) and (0.25m @ 45.0 g/t Au from 149.2m). Visible gold recorded at 149.2m depth. Mineralised zones show continuity to adjacent previously drilled intercepts in hole BH3DD019.

Journeo 118p £10.3m (JNEO.L)

The provider of information systems and technical services to transport operators and local authorities, announced two contract awards for software, information systems and 5-year support services totalling £1.7m with Nottingham City Council. The first contract, valued at £1.4m is for the upgrade of 1,600 existing LED outdoor displays using a 4G Intelligent Gateway, the ‘Journeo Edge’. These upgraded displays will join over 1,000 displays previously supplied by Journeo throughout Nottingham City Council, Nottinghamshire County Council, Derby City Council and Derbyshire County Council, and will extend the life of the displays beyond the depreciation of the UK’s 2G and 3G networks. A small number of displays will also feature Journeo’s next generation 5G gateway. The second contract, valued at £0.3m, is for Journeo’s powerful new messaging software tool to enable Nottingham City Council to integrate vital travel disruption information with scheduled and real time departure data for over 10,000 bus stops throughout the region. This intelligent new service will consume data from standardised data feeds and autonomously distribute the most relevant information to transport users via displays, mobile apps and online sources already used by the authority to provide information.

Keywords Studios 2,403p £1,842.7m (KWS.L)

The international technical and creative services provider to the global video games industry, today announces that it has entered into a conditional agreement to acquire Forgotten Empires, LLC, a full service game development studio, for a total consideration of up to US$32.5m. The acquisition will further the Group’s strategy to become the ‘go to’ technical and creative services platform for the global video games industry. Founded in 2013 by studio head Ryan Shepherd, who will continue leading Forgotten Empires within Keywords Studios, the studio specialises in the development of real time strategy games (RTS) including Microsoft’s classic franchise, Age of Empires. Headquartered in Ohio in the US, Forgotten Empires’ talented team of 53 game developers are passionate individuals from around the globe who are also avid RTS fans. Forgotten Empires has worked on many games including all of the Age of Empires Definitive Editions, Age of Mythology: Extended Edition and Age of Empires IV and has worked alongside Keywords’ other game development studios Tantalus, Wicked Witch and Climax Studios on certain of those projects. Forgotten Empires generated revenue of US$7.2m in 2021 and is expected to grow strongly in the current year.

Sanderson Design Group 150p £106.5m (SDG.L)

The luxury interior design and furnishings group announced that its Harlequin brand has signed a three-year collaboration deal with Sophie Robinson, the interior designer and TV broadcaster known as “the queen of colour” owing to her passion for bright and exuberant interiors. Sophie Robinson, whose popular TV programmes include Channel 5’s Dream Home Makeovers, will design and style a capsule collection of wallpapers and fabrics for the Harlequin brand, expected to launch in Spring 2023, using her signature bright colours and bold design. The collaboration marks a further step in the development of the Harlequin brand. The renewed impetus behind the brand began last year with Harlequin’s Own the Room campaign and colour quiz, which helps consumers choose colours and designs from four profiles – Rewild, Reflect, Retreat and Renew. All new Harlequin collections are now categorised into these four profiles.

Scholium Group 44p £6m (SCHO.L)

Trading update for the 12 months ended 31 March 2022 from the holding company for a group of companies involved in the retail and trade of rare books, works on paper and fine art. Following on from the profitable interim period ended September 2021 the Group has continued to trade profitably for the six months ended 31st March 2022. The Board has taken the decision to close the Mayfair Philatelics business. A provision for any residual costs and charges arising from its closure is expected to be charged to the year-ended 31 March 2022 as a discontinued business expense. The Group remains well capitalised with over £9.3m of stock and cash of £0.7m at 31 March 2022. The Directors expect to release the preliminary statement relating to the results for the year ended 31 March 2022 by the end of August 2022.

Xeros Tech Group 32.5p £7.7m (XSG.L)

The licensor of proprietary solutions improving the sustainability and economics of the world’s clothing and fabrics, today provides an update on the forthcoming domestic market launch in India, by IFB Industries Limited of the world’s first Xeros enabled domestic washing machine. Since the end of regional Covid restrictions in India in late Q1, Xeros and IFB teams in Sheffield and Goa have been finalising machine designs and programming bespoke XOrb wash cycles, which improve performance with less water and energy. With these tasks complete, following an initial limited manufacturing run, IFB will soon be moving a number of machines into consumer homes for user testing and launch planning at the end of June 2022. From mid-June 2022 a Xeros team will be in Goa to assist with the initiation of these trials ahead of the full market launch of two sizes of IFB washing machine which is now planned for Q4 2022. This represents a slight delay from the previous guidance of a Q3 launch. Factory testing by both IFB and Xeros has confirmed the significant environmental benefits of Xeros’ technology, delivering water savings of up to 50% and, importantly for consumers, clear fabric care benefits are already evident after just a few washes. IFB has re-affirmed its commitment to the launch of their Xeros enabled domestic washing machine in 2022 and is actively working with the Company to achieve this goal. Xeros also confirms that it will release its final results for the year ended 31 December 2021 on Wednesday, 22 June 2022.

8 June 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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