Small Cap Feast

9th February 2024

Dish of the day
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Dish Of The Day:


Hawking Plc (HNG.L) has left the Standard Segment of the London Stock Exchange

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

Bens Creek Group 6p £24m (BEN.L)
The owner of a metallurgical coal mine in North America supplying the steel industry, provides the following trading update. The Company announced on 26 June 2023 and 7 July 2023 that it had issued $13m of convertible loan notes to Avani Resources Pte Ltd. This financing was expected to be sufficient to meet the Company's working capital requirements through to 31 December 2024. However, the Company's cash flows since the start of the year have been further negatively affected by a combination of factors. As such Avani have, agreed to provide an additional working capital facility of up to $5m with an advance payment of $1.25m. The Company further announce that Adam Wilson has informed the Board of his intention to stand down from the board and his position as CEO of the Company once a replacement CEO has been appointed.

Bezant Resources 0.023p £2.6m (BZT.L)
The copper-gold exploration and development company provides an update for Hope and Gorob copper-gold project situated within EPL 5796 (Project) in central Namibia. On 27 October, 2023 the company reported an updated JORC-2012 compliant Mineral Resource Estimate (MRE) completed by Addison Mining Services (AMS) of 15 Mt @ 1.2% Cu and a projected average grade of 0.4 g/t Au. The MRE includes 1.24 Mt @ 1.6% Cu and 0.4 g/t Au (Indicated) and 14 Mt @ 1.2% Cu (Inferred) across Hope, Gorob Vendome and Anomaly deposits within which lies 3 Mt @ 1.7% Cu and 0.4g/t Au at the Hope project alone (gross*). AMS estimates 2.4Mt of ore as potentially amenable to an initial, low-cost, open-pit mine. Further studies aimed largely at design optimisation and contract negotiations linked to initial development are also underway including project based financing.

Blencowe Resources 4.45p £9.3m (BRES.L)
The natural resources company focused on the development of the Orom-Cross Graphite Project in Uganda announces it has raised US$500k (£392.3k) at 5 pence per share with a African-based investor (African Investor) through the issue of new ordinary shares. In addition, the Company has conditionally raised a further £2.5m at 5 pence from the issue of new ordinary shares with an additional strategic investor. The subscription price is at a premium of 12.4% to the closing price of 4.45 pence on 8 February 2024 being the last practical trading date. Both investments will provide the company with a good runway to complete the Definitive Feasibility Study this year.

Ethernity Networks 1.1p £1.6m (ENET.L)
A supplier of data processing semiconductor technology for networking appliances, announces the appointment of Ilan Tevet as its new Vice President of Marketing and Business Development. Ilan will be tasked with identifying new opportunities to leverage Ethernity's core competencies to fuel the Company's business expansion. Ilan brings with him over 25 years of diverse experience, encompassing key positions in Sales, Business Development, Product Management, and Marketing.

Intelligent Ultrasound 8.75p £28.6m (IUG.L)
The classroom to clinic ultrasound company specialising in AI software and simulation, announce that it has launched a portable NeedleTrainer Plus ultrasound-guided needling training simulator. The system is aimed at training ultrasound-guided needling in military field-based hospitals, as well as clinical networks outside major urban areas. NeedleTrainer is a training simulator that uses a retractable needle and virtual image overlays to simulate needling on a live volunteer, using a live ultrasound scan.

Itaconix 127.5p £17.2m (ITX.L)
A Company focusing on sustainable plant-based polymers used to decarbonise everyday consumer products, announces the appointment of Jonathan Brooks to the Board as an independent Non-Executive Director. Jonathan is recently retired from the European law firm Fieldfisher LLP where he was a Partner in its Equity Capital Markets practice. With over 35 years of experience, Jonathan has acted for clients in a diverse range of industries, including technology, materials, healthcare, natural resources, renewable energy, and financial services.

Kinovo 55.5p £34.8m (KINO.L)
The property services Group that delivers compliance and sustainability solutions, provides the following trading update. Revenues for the year ending 31 March 2024 are expected to be approximately £65m (FY23: £62.7m) and adjusted EBITDA is expected to be ahead of last year (FY23: £5.5 million) and not less than £6.2m. The Group continues to make progress in East Anglia having opened a new office in December 2023, and has secured eight contracts with new clients via the Eastern Procurement Asset Improvement framework. Six of these are for a term of between one and three years, amounting to a total expected value of approximately £4.2m. The remaining contracts are initially for a shorter term.

Kore Potash 0.6p £24.7m (KP2.L)
The potash development company with 97%ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located in the Republic of Congo (RoC), announces that, in line with expectations, PowerChina International Group Limited (PowerChina) delivered its Engineering, Procurement and Construction (EPC) proposal and draft EPC contract on the 6th of February 2024. During the past five months, PowerChina led five external technical groups that completed additional design and engineering work. In line with the expectations PowerChina has now delivered the EPC Proposal and draft EPC contract offer. The initial EPC contract price aligns with expectations and reconfirms the capital cost detailed in the study.

Premier African Minerals 0.33p £88.8m (PREM.L)
A multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe reports a new SAMREC compliant Mineral Resource Estimate (MRE) on its wholly owned Zulu Lithium and Tantalum Project. The MRE estimates Li2O that is contained in spodumene, specifically Li2O that is attributable to spodumene at 107,366 tonnes and the direct conversion of the contained Li2O to spodumene concentrate 6 (SC6) is 1,789,433 tonnes. Further, the MRE estimates that the ore body contains 1,045,908 kg of Ta2O5. On-going Mineral Resource development drilling, with the aim of identifying extensions to the current MRE and thereto having the potential to add additional Mineral Resources, is ongoing.

Renalytix AI 13.5p £13.5m (RENX.L)
An in-vitro diagnostics and laboratory services company announces that on February 8, 2024 the Centers for Medicare and Medicaid Services (CMS) published a draft Local Coverage Determination (LCD) for the Company's KidneyIntelX and kidneyintelX.dkd testing. The draft LCD specifies coverage for use of KidneyIntelX or kidneyintelX.dkd for patients with diagnosed Type 2 diabetes and Stage 1-3b Chronic Kidney Disease. The LCD was submitted by National Government Services (NGS), a subsidiary of Elevance Health, Inc. a Medicare Administrative Contractor with CMS and responsible for claim review and payment for testing performed in the Company's New York City laboratory.

9 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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