Small Cap Wrap – AsiaMet Resources, Escape Hunt, Aquis Exchange and more…

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26 Feb 2021

@HybridanLLP

*A corporate client of Hybridan LLP

 

Dish of the day

Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids has joined the main market (standard). Has raised £13M in an oversubscribed placing. £25m mkt cap. Cellular Goods was established in August 2018 to develop efficacy-led and research-backed cannabinoid products. The initial focus is on two product verticals: premium skincare and topical athletic recovery products to be launched from this autumn. These will be made available through partnerships with leading online and physical retailers and direct to consumers through the Company’s website.

Off the menu

No Leavers Today 

What’s cooking in the IPO kitchen?

tinyBuild— a leading video games publisher and developer with global operations. tinyBuild’s strategic focus is in creating long-lasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC.  Due mid-March.

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Team PLC announced their plans for an AIM IPO.  Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 .   The Company is seeking to raise  no less than £5m.  The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission.

Virgin Wines UK PLC has out their plans for an AIM IPO.  Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates.  Anticipated mkt cap £110m. Raising £13m in new money and vendor sale of £34.9m . Due 2nd March.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange.  Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA.  Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March.  The company raised more than $180m in January with a valuation of more than $7bn. 

Banquet Buffet

Asiamet Resources 2.3p  £34m (LON:ARS)

Placing of circa £1m at 2.2p in addition to previously announced conditional placing and subscription at the same price of £9.1m.  Use of proceeds includes· Completion of a second phase value engineering programme for the proposed 25ktpa BKM copper project, located in Central Kalimantan, which will include metallurgical and process flowsheet optimisation together with associated operating and capital costs refinement; Commence the early stage detailed engineering and design works for the BKM copper project; Finalise the key Pinjam Pakai permit (borrow to use) with the forestry department and secure supplementary permits for construction and commencement of operations; Secure project financing for construction of the BKM copper mine through a combination of debt / equity and offtake/equipment finance. The Company will also consider an IPO on the Indonesian Stock Exchange and/or a partial asset sale as part of securing the required equity finance; Drill test a number of high probability copper targets in close proximity to the BKM copper development project which have the potential to add further resources and mine life to the BKM project.  Continue community engagement and development work on the Beutong IUP host to Asiamet’s large tonnage porphyry copper-gold deposit. Drilling to test the potential for a high grade extension of the Beutong Cu-Au deposit to depth

 

Escape Hunt 24.8p  £22m (LON:ESC)

Exchange of Contracts for French acquisition and Trading Update. The specialist in the growing escape rooms sector, announced  that, further to its announcement made on 22 January 2021 it has exchanged contracts to acquire its French master franchise partner, BGP Escape.  The acquisition is expected to complete on or before 15 March 2021 with the terms of the deal the same in all material respects as set out in the Announcement.

On trading modest improvement in FY20 Group Adjusted EBITDA loss vs FY19, despite COVID-19 restrictions on trade.  Significant progress made in all aspects of the Company’s strategy  – Owner-operated estate expanded by 89% from 9 to 17 (4 new builds, 1 in progress, 3 acquisitions) –  Digital and play-at-home product range launched –  Further progress in the US.

· Encouraging levels of consumer demand between lockdowns gives cause for cautious optimism on full reopening of UK owner-operated sites  · Cash balance at 31 January 2021 of £3.95m

 

Aquis Exchange 547.5p  £148.75m (LON:AQX)

The exchange services group, announced a trading update for the 12 months to 31 December 2020, and an operational update on recent developments across its three divisions. The Company anticipates reporting revenues of no less than £11.0m, marginally ahead of market expectations. In addition, the Company expects to deliver its maiden full year pre and post-tax profit, a performance ahead of market expectations. Revenue growth has been driven in part by continued high levels of trading on Aquis Exchange alongside strong technology sales, with a number of clients having renewed licensing contracts at the end of the year, and a growth in data revenues. Aquis Exchange, the Company’s pan-European equities trading business

The Company’s pan-European equities trading business is executed across its two trading venues, London and Paris, in order to facilitate the trading of EU-listed shares. Since 4 January 2021, Aquis has seen 99% of its continuous European share trading move across to its Paris venue and the Company is reported a smooth transition following Brexit.   Following the UK government’s agreement on equivalence with Switzerland, the Company resumed trading in Swiss shares on 4 February 2021.

Following on from the cloud deployment collaboration with the Singapore Exchange and Amazon Web Services announced on 20 November 2020, Aquis Technologies is building a pipeline of potential customers from across different asset classes and different geographies.

Aquis Stock Exchange (AQSE), the Company’s primary listings market for SMEs. Recent additions to the AQSE roster of corporate advisors, including Hybridan, bring the total to 28. There is a strong IPO pipeline for 2021, including the listing of Samarkand Group.  As part of its strategy to transform the UK listings space, Aquis has also been participating in the UK Listings Review chaired by Lord Hill. The Aquis Stock Exchange rulebook changes implemented in December 2020 have been operating in practice for a number of weeks, with new admissions to the Apex market required to publish a growth prospectus, facilitating private investor participation in Apex IPOs.

 

Alpha Real Trust  160p  £97.15m (LON:ARTL)

FY DEC 20 update.  NAV per ordinary share 209.3p as at 31 December 2020 (30 September 2020: 211.1p).

· Adjusted earnings for the period ended 31 December 2020 of 2.3p per ordinary share (30 September 2020: 1.6p per ordinary share). · For the period ended 31 December 2020 basic losses of 1.5p per ordinary share (30 September 2020: losses of 1.3p per ordinary share).

· Declaration of a quarterly dividend of 1.0p per ordinary share expected to be paid on 9 April 2021. · Robust financial position: a cautious approach to new investment is being taken and cash conserved. · Diversified portfolio of secured senior and secured mezzanine loan investments; as at 31 December 2020, the size of ART’s secured loan portfolio was £32.1m, representing 25.4% of the investment portfolio. The senior portfolio has an average LTV of 59.9% based on loan commitments (with mezzanine loans having an LTV range of between 54.8% and 78.7% whilst the highest approved senior loan LTV is 75.7%).

ART targets investment, development, financing and other opportunities in real estate, real estate operating companies and securities, real estate services, infrastructure, infrastructure services, other asset backed businesses and related operations and services businesses that offer attractive risk-adjusted total returns.

 

Keras Resources 0.1325p  £8.33m (LON:KRS)

The resources company with mines in Togo, West Africa and Utah, USA, updated on its latest Environment, Social and Governance initiatives, specifically at the Nayéga Manganese Mine in Northern Togo. These activities include the formation of the ‘Nayéga Foundation’.

In compliance with Decree No 2017-023/PR, Société Générale de Mines SA (SGM) will contribute 0.75% of revenue from manganese sales at Nayéga to the public treasury to be used for community projects in the vicinity of the Nayéga mine. This fund is managed by a committee, as legislated by the Decree, comprising community leaders, representatives of the Ministry of Mines and Energy and a representative from SGM.

In addition to this regulatory requirement Keras has now undertaken to fund the Nayéga Foundation which will provide another platform for the development of community, environmental and sustainability projects, reflecting Keras’ commitment as a responsible corporate citizen of Togo.  Keras intends to contribute 5% of its attributable net profit from SGM to the Nayéga Foundation on an annual basis.  The Company is currently focussed on establishing the appropriate ESG framework and structures in Togo to support the Foundation and the communities in the vicinity of the Nayéga Manganese Mine.

 

K3 Business Tech 155p  £66.6m (LON:KBT)

K3, which provides mission critical business software, cloud solutions and managed services, announced the sale of its managed services unit, Starcom Technologies Limited, to Node4 Ltd, the UK-based infrastructure and services company backed by private equity investment firm, Bowmark Capital. The total consideration for the disposal was £14.7m, including £0.5m cash on the balance sheet, paid entirely in cash on completion.

The transaction generates a significant profit on disposal, in excess of £10m, which will be accounted for as an exceptional contribution to results in the current financial year to 30 November 2021. In the unaudited results of the financial year to 30 November 2020, Starcom generated £10.2m in revenues and pre-tax profits of £1.2m. Its Group net assets at that date stood at £2.5m.

 

Greencoat Renewables 1.19p  £884m (LON:GRP)

The renewable infrastructure company invested in euro-denominated assets, announced the agreement to acquire Cordal wind farm from Cubico Sustainable Investments, a global renewable energy investor and operator. 

The wind farm is located in Co. Kerry, Ireland, and consists of 28 3.2MW GE turbines that reached full commercial operations in May 2018. The wind farm’s revenues are contracted under the REFIT 2 scheme, providing a long-term guaranteed minimum floor price for the electricity generated until 2032. GE will continue to manage the operations and maintenance contract. 

The acquisition is being funded by the Group’s existing revolving credit facility and is expected to close in April 2021. Following the acquisition, Greencoat Renewables’ total borrowings will represent c.46% of Gross Asset Value.

 

Audioboom 425p  £66.6m (LON:BOOM)

The global podcast company is now ranked the fifth largest US podcast publisher according to Triton Digital’s January 2021 Podcast Report. Since joining Triton Digital’s podcast ranking service in May 2020, Audioboom has been ranked sixth.

Triton Digital rates podcast publishers based on average weekly downloads. Audioboom averaged 10.95m downloads per week in the US during the latest reporting period, moving up one place to reach the top 5 for the first time.

Audioboom moved ahead of Wondery, which is now sixth in the rankings and was acquired earlier in 2021 by Amazon for over US$300m.

 

Corero Network Security 13p  £64.3m (LON:CNS)

The  provider of real-time, high-performance, automatic Distributed Denial of Service (DDoS) defence solutions, updated on its “partner-first” go-to-market strategy with the announcement of several new partnerships in APAC, Latin America and the Caribbean, alongside ongoing enhancements to Corero’s Partner Portal .

Building on the strong successful foundations established in 2020 with resale partners and distributors such as Kite, Telent, Axians Germany, enfoPoint, ECI Networks and Walker and Associates, Inc., Corero  has added several new strategic partnerships with Datacipher and CDM in APAC, and CLA Direct in Latin America and the Caribbean.

With the continued rise in DDoS attacks during 2020 and 2021, these resale partners and distributors recognise that many of their customers within the Service and Hosting Provider space, along with Gaming, Financial Services and SaaS-based customers were in need of updating their network security requirements. 

 

Agronomics 17.625p  £88.5m (LON:ANIC)

The  investor in alternative proteins with a focus on cellular agriculture and cultivated meat, announced that portfolio company LIVEKINDLY Collective has appointed 6 new members to its board of directors.  LIVEKINDLY collective is building its portfolio of brands that offer plant-based chicken alternatives, including The Fry Family Food Co, Oumph! and LikeMeat. The Company’s equity interest in LIVEKINDLY is currently 1.5%. 

 

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

 

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