Small Cap Wrap – Helium One; Tirupati Graphite; Mailbox REIT PLC: Ixico; Serinus Energy; Benchmark H


27 Nov 2020


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What’s cooking in the IPO kitchen?

Schroder BSC Social Impact Trust plc targeting a GBP100m raise. The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Due 22 Dec. Official List (premium)

Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test. Offer TBC. Due early Dec.

Auctus Growth Plc (LON:AUCT) – Reverse acquisition of HeiQ Materials AG. GBP20m placing for the enlarged group plus further secondary placing of GBP40m for selling shareholders. HeiQ creates technologies that add functionality, comfort, hygiene and sustainability to existing apparel, home textiles, technical textiles, medical textiles and devices and functional consumer products. It is anticipated that the funds raised will be used to strengthen the Enlarged Group’s regulatory portfolio, enhance its direct to consumer marketing and build brand equity, expand its geographical footprint, expand its sales channels, upscale the product HeiQ GrapheneX and build a medical business unit in light of the robust growth that HeiQ Viroblock has experienced due to the COVID-19 global pandemic. Anticipated mkt cap GBP141 million. Due 7 Dec. Main Mkt (Standard)

Conduit Holdings is a newly established reinsurance underwriting business focusing on producing strong risk adjusted returns from a diversified and focused business plan. The business has been formed to capitalise on what the Company’s founders, Neil Eckert and Trevor Carvey believe to be an exceptional market opportunity. Raising $1.1bn. Due December

Helium One Global to join AIM. The Company, through its Tanzanian subsidiaries, holds a 100% interest in 18 licences (the Priority Licences) covering an area of 4,512km2 with an Unrisked Prospective Helium Resource (2U) of 138Bcf (SRK 2019). The Company has spent US$8.25m on exploration, assessment and related activity to date and is now drill ready. Capital to be raised on Admission: GBP6million. Anticipated market capitalisation on Admission GBP14.1 million (at the issue price of 2.84p). Due 4 Dec

Downing Renewables & Infrastructure Trust intends to raise up to GBP200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December

Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec

VH Global Sustainable Energy Opportunities plc, a closed-ended investment company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Financial Conduct Authority and Main Market of the London Stock Exchange. Due by Early Feb 2021

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Due December

Schroders British Opportunities Trust is seeking to raise up to GBP250 million on the premium segment of the Official List . The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. GBP50 million to GBP2 billion equity value range with sustainable business models at attractive valuations. Due 1 December.

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem). FY20 gross profit of GBP79.2m (+24.5% against FY19) and adjusted operating profit of GBP31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at GBP179m, announced its intention to raise up to GBP62.5m. MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). Due 14 December.

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc

Kibo Energy PLC (LON:KIBO), the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times. Targeted for Q4 2020.

Banquet Buffet

Michelmersh Brick 110.5p GBP104m (AIM:MBH)

The specialist brick manufacturer, today announces a trading update ahead of its final results for the year ended 31 December 2020. Trading performance of the Group has been resilient since June 2020 and this has continued through November. Current production capacity is back in line with pre-Covid levels and Group turnover for the months of July to October was 7% ahead of the equivalent period in 2019. The Board now expects that underlying revenue and profit for the Group will exceed market expectations for the 12 months ended 31 December 2020.

Reflecting on the strong trading performance, the Board has decided to repay the monies received under the Job Retention Scheme totalling GBP0.5m. The Group has also experienced strong cash flow over recent months. The Board therefore expects to report a positive net cash position at 31 December 2020, even after repayment of JRS monies, compared with a net debt position of GBP6.5m as at 30 June 2020.

Ixico 122.5p GBP57.7m (AIM:IXI)

GBP1.9 million new business contract for Huntington’s disease study with existing biopharmaceutical sponsor. The AI data analytics company delivering insights in neuroscience , today announces that it has executed a contract to provide neuroimaging services that will support a phase Ib/II clinical trial for Huntington’s disease.

This will build on the Company’s existing relationship with the sponsor with whom they contracted a prior safety and efficacy trial in 2019. By deploying innovative imaging biomarker solutions in early phase studies, IXICO enables biopharmaceutical sponsors to accelerate R&D decision making and maximise the value of their drug development pipelines. The new award reflects and reinforces the confidence customers place in IXICO as the trusted and leading neuroimaging partner for Huntington’s disease clinical trials. This contract was included in management’s expectations of performance for the current financial year but adds to the Company’s strong order book.

Gateley 161p GBP189.35m (AIM:GTLY)

The legal and professional services group, announced a trading update ahead of its half year results for the six months ended 31 October 2020. The Group has demonstrated considerable resilience throughout the Period as a result of its well-diversified service lines, generating revenue of not less than GBP50.0m as compared with GBP51.8m for the prior year. The Group’s activity levels and revenue generation continue to follow an improving trend with monthly activity during September and October being in excess of the prior year comparable periods.

This resilient revenue performance combined with the Board’s swiftly implemented cost-reduction initiatives put in place during the early stages of the COVID 19 pandemic, have combined to yield an underlying adjusted profit before tax1 of not less than GBP7.0m for the Period, compared with GBP6.6m for the prior year. The Group has significant liquidity with net cash of GBP9.6m at the Period end (FY20: Net debt GBP0.9m).

Mirriad Advertising 46.5p GBP99.2m (LON:MIRI)

The computer vision, technology and AI platform company announced that, following the announcement made on 26 November 2020 regarding the proposed conditional Placing and Open Offer, the Company has conditionally placed 57,600,000 Placing Shares at an Issue Price of 40 pence per Placing Share raising gross Placing proceeds of approximately GBP23 million.

The net proceeds from the Placing will be used for general working capital purposes in pursuit of the Company’s existing strategy outlined to shareholders and specifically, it will allow Mirriad to develop its business by investing (a) in its sales capabilities with specific reference to the recently announced Music Alliance and in developing its US revenue stream in general, and (b) in its technology team in the areas of live programming and real-time advertising decisioning and delivery, in addition to further strengthening its balance sheet to better position the Group to successfully service very large partners.

Serinus Energy 2.25p GBP5.4m (AIM:SENX)

International upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania, announces that following the accelerated bookbuild which was announced at 4.35 p.m. on 26 November 2020, the Company has conditionally raised gross proceeds of USD21 million through the oversubscribed placing of 787,936,852 Placing Shares and Subscription Shares, both at a price of 2 pence per new Ordinary Share. The proceeds of the Placing will be used as part of a proposal to retire the EBRD Convertible Debt, and for the installation of the first pumps in a well work over programme for the Sabria field in Tunisia.

Caribbean Investment Holdings 43.5p GBP58.6m (LON:CIHL)

The proposed purchase by the Company of Scotiabank (Belize) Ltd. from Scotiabank Caribbean Holdings Ltd., a subsidiary of The Bank of Nova Scotia (BNS), for an initial purchase price of up to US$30.5 million, has been approved by the Central Bank of Belize; a key condition for the closing of the Acquisition.

The Approval has been granted by the Central Bank of Belize subject to the requirement that SBL merges with The Belize Bank Limited, the Company’s existing wholly owned banking business in Belize by 31 March, 2022 . The Approval also is subject to a number of additional customary technical and administrative terms and conditions, principally in relation to the Post-Closing Merger.

Following receipt of the Approval, the Acquisition remains subject to certain customary conditions and pre-closing steps, which remain outstanding. Subject to the satisfaction and completion of such remaining conditions and pre-closing steps, closing of the Acquisition is expected to take place in the first quarter of 2021.

Benchmark Holdings 53.5p GBP357m (AIM:BMK)

The aquaculture biotechnology Company, announces its audited full year results for the year ended 30 September 2020

o Programme of disposals of non-core businesses completed delivering up to GBP44m; GBP43m gross equity raised in February 2020 through a placing and open offer

o Liquidity (cash and available facility) increased to GBP83.2m (2019: GBP28.2m). Cash at year end of GBP71.6m (2019: GBP16.1m) o Net debt reduced significantly to GBP37.6m (2019: GBP87.1m)

Revenues from continuing operations 15% below the prior year resulting from:

o Good performance in Genetics with revenues 5% above the prior year (+14% in constant currency)

o In Advanced Nutrition revenues down 22% due to the impact of Covid-19 on global shrimp markets and a supply imbalance in the Artemia markets

. Adjusted EBITDA from continuing operations was GBP14.5m against GBP21.3m the prior year reflecting lower revenues and margins in Advanced Nutrition, partially offset by Genetics and a reduction in R&D and operating costs from measures taken to mitigate the impact of Covid-19

Unchanged market conditions; revenues in established business driven by underlying markets with upside from the launch of new products

. Ongoing investment in SPR shrimp, new salmon egg facility in Chile, and launch of BMK08 and CleanTreat(R)

. Continued focus on achieving profitability and cash generation; commitment to maintain financially strong balance sheet aligning pace of investment to cash generation

Immunodiagnostic Systems 250p GBP72m (AIM:IDH)

The specialty solution provider to the clinical laboratory diagnostic market, announces that two SARS-CoV-2 Antigen Rapid Test kits are now available for sale in the UK, European Union and other countries which accept the CE mark as the basis of regulatory approval.

Both tests can be performed by a trained healthcare professional in community locations (e.g. workplaces, schools, doctors’ surgeries) without the need for any laboratory equipment. These tests determine the presence of the SARS-CoV-2 nucleocapsid protein antigen using direct nasopharyngeal swab samples, providing a result within 15 minutes.

Both fast and easy to use tests are based on the lateral flow principle: one in a cassette format, one in a test card format.

Bluejay Mining 10.5p GBP102m (AIM:JAY)

The exploration and development company with projects in Greenland and Finland, updated on its offtake negotiations for the Dundas Ilmenite Project in Greenland.

The commercial terms of an agreement are agreed in principle but the agreement itself is now passing through the final stages of legal review by the counterparty. As the counterparty is a large multinational organisation, the due process for review can and has become extended. It is also vital to ensure the best practical terms available for Bluejay Mining shareholders are obtained.

As a consequence, the counterparty has requested that the MOU, which covers the finalisation of the agreement, be extended. Both parties have therefore agreed a new extension date of 31 December 2020. Further details of the MOU are set out in the Company’s announcement of 22 July 2020.

Providence Resources 7.45p GBP65.35m (AIM:PVR)

The Irish based resource development company notes the recent media speculation regarding the status of its farm out discussions with SpotOn Energy Ltd in relation to Standard Exploration License (“SEL”) 1/11 which contains the Barryroe oil and gas field.

Providence confirms that it remains in exclusive discussions with SpotOn in relation to a farm out of SEL 1/11 and will update the market in due course and as required.

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Derren Nathan

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