Small Cap Feast

8th 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

Artemis Resources 1.43p £25.5m (ARV.L)
The gold, copper and lithium focused resources company, confirms that it has received firm commitments for a capital raising of A$2.03m at $0.018 per share. One free attaching option to be issued for every two new shares, with exercise price $0.025 and expiry date 9 March 2026. The issue price of $0.018 represents a 20% discount to the 15 day volume-weighted average price. Funds raised will go towards executing the Lithium Osborne Joint Venture (GreenTech 51% Artemis 49%), diamond drilling to test stratigraphy and geological structure, and ongoing field work, mapping and sampling, target identification.

B90 Holding 4.8p £21.1m (B90.L)
The online marketing and service provision company for the gaming industry, announces a strategic shift towards its core business-to-business (B2B) operations and the relaunch of its flagship brand, www.bet90.com. Historically, B90's operations were split into two areas of focus: (1) lead generation, provided by B90 subsidiaries Emwys, Oddsen.nu, and tippen4you.com; (2) provision of online gaming products provided by its own properties; Bet90.com and www.spinbookie.com. The relaunch of Bet90.com means the discontinuation of its business-to-consumer (B2C) gambling operations on that site.

Begbies Traynor Group 125p £196.7m (BEG.L)
The business recovery, financial advisory and property services consultancy, announces that it has completed the acquisition of Andrew Forbes Limited, a firm of chartered surveyors based in Bristol and operating across the South West. The business will integrate with Eddisons, the group's property division. In its financial year ended 31 March 2023, Alexander Forbes generated revenue of £1.7m (unaudited) and normalised pre-tax profits of £0.25m. The acquisition consists of an initial cash consideration of £0.5m; and an earn out of up to £0.5m, payable in cash, subject to maintaining profits in the three year period post completion. This gives a maximum consideration of £1.0m (on a cash free debt free basis).

Coro Energy* 0.24p £6.9m (CORO.L)
The South East Asian energy company with a natural gas and clean energy portfolio, announces that the sale of the Italian portfolio has now been approved by the Italian regulatory authorities and the sale has been completed. The total consideration for the sale, as previously announced, is up to €7.4m which consists of €5.86m upfront consideration (comprising €3.86m payable on completion plus €2m payable as soon as practicable after completion) and a 10% NPI on future profits capped at €1.5m. The Company has received €2.5m of the upfront consideration by way of advance payment (as announced on 10 August 2023). In addition to the above total consideration the sale and purchase agreement contains a working capital adjustment, which the Company estimates will result in a payment to Coro of €1m to €2m.

eEnergy Group 5.75p £20.2m (EAAS.L)
The net zero energy services provider announces that its long standing partner, Luceco plc will invest £1.75m via a subscription for new ordinary shares in eEnergy. Luceco is a supplier of wiring accessories, EV chargers, LED lighting, and portable power products and is listed on the Main Market of the London Stock Exchange. The subscription is for 35,078,000 shares at 5p per share, representing a premium of c. 25% to the closing share price on 7 November 2023. Following completion of this investment, Luceco will hold approximately 9.1% of the Company's enlarged share capital.

i3 Energy 11.76p £141.4m (I3E.L)
The independent oil and gas company with assets and operations in the UK and Canada, announces the following Q3 2023 operational and financial update. Average Q3 2023 production of approximately 21,156 barrels of oil equivalent per day (boepd), up 14% from the prior quarter and up 3% from Q3 2022. Net operating income for the quarter was US$25.97m, representing a 47% increase quarter-over-quarter. The Company remained focused on repayment of its new credit facility, with the original drawn amount of CAD 75m reduced to CAD 66.67m and net debt as at 30 September 2023 was approximately US$27.56m, down from US$38.98m as at 30 June 2023.

Oxford BioDynamics 34.95p £70.7m (OBD.L)
The biotech company developing precision medicine tests based on the EpiSwitch® 3D genomics platform, has appointed Dr Steven Arrivo as Senior Vice President of Business and Corporate Development. Dr Arrivo brings over 20 years of science and industry experience along with an established track record in business and corporate development. Dr Arrivo's role will be to implement effective marketing and sales strategies for the newly launched EpiSwitch® PSE prostate cancer detection test and his specific focus will be to grow sales in the US market.

Strip Tinning Holdings 50p £7.7m (STG.L)
The supplier of specialist connection systems to the automotive sector, announces the receipt of a serial nomination for production parts across its EV business. The nomination is for the supply of flexible printed circuits (FPCs) to a European manufacturer of advanced battery systems. The FPCs are for a mobile battery application used across a range of sectors, including the catering, construction, and film industries. Under the terms of the nomination, supply will start in December 2023 and run until the end of 2025, with a forecast lifetime sales value of $1m. Strip Tinning is replacing a non-European supplier part way through the product life cycle, hence the nomination's shorter than normal duration. The Company remains confident of securing a major EV nomination in early 2024.

Time Out Group 47.5p £160.4m (TMO.L)
The global media and hospitality business announces its audited results for the year ended 30 June 2023. Gross revenue grew by 43% to £104.6m (2022: £72.9m) and net revenue(1) by 37% to £76.0m (2022: £55.4m). Operating loss was £17.5m (2022: £14.1m loss), £3m year-on-year movement comprising £4.2m improvement in EBITDA less £7.7m increase in exceptional costs to £10.0m, of which £7.8m are non cash. Reported net debt was £49.7m (2022: £44.5m) including £24.9m (2022: £27.4m) of IFRS 16 lease liabilities. Q1 FY24 performance is in line with management expectations.

Wishbone Gold 2.2p £5.5m (WSBN.L)
The Gibraltar-based company engaged in gold, silver and copper exploration, announces that diamond drilling has started at its Cottesloe tenement. Support trucks and camp have been set up and drilling has commenced. As reported on the 17th July 2023, the Cottesloe Project contains a basinal syncline of the Broadhurst Formation. This formation consists of a package of carbonaceous shales and siltstones with known pyritic horizons. The pyritic horizons have formed into gossanous ironstones at the surface and these have returned extensive base metal anomalism in the 0.1-1.1% Copper (Cu), 0.1-3.8% Lead (Pb), 0.1-0.4% Zinc (Zn), and 2-80 g/t Silver (Ag) ranges.

8 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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