Small Cap Feast – Live Company Group; Ncondezi; Directa Plus and more…

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Our daily digest of news from UK listed Small and Mid caps

09 March 2021

@HybridanLLP

 

*A corporate client of Hybridan LLP

 

Dish of the day

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 has joined AIM. TBLD.L  Mkt cap £340.6m, Gross proceeds £154m of which £36m is primary.  Dec 19 numbers $28m revs / losses of $2.6m. June 2020 interims – $18.5m revs / $2.7m profit

 

Off the menu

Countrywide has left the main market (premium) following a takeover.

 

What’s cooking in the IPO kitchen?

Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans.  Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes.  The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited).  Deal details TBC and admission is expected to occur late March/ early April 2021.

Caerus Mineral Resources, a London based exploration and resource development company focused on developing mineral resources in Europe, recently announced the acquisition of New Cyprus Copper P.A. Ltd and its intention to IPO onto the Standard List.  The NCC Acquisition provides Caerus with access to copper – gold exploration licences in the Republic of Cyprus.  The company has raised circa £2.25m by way of placing and subscription.  First Day of Dealings expected 19 March 2021.

Proposed move to AIM from the main market (standard)  by Emmerson (LON:EML)  to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. Subject to EGM on 21st March. 

Rogue Baron plc have announced its application for admission to the AQSE growth  market.  Rogue Baron owns five subsidiaries, namely: Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC.  The Company’s goal is to build each of its brands that makes them a buyout target.  Deal size TBC an expected admission date 12th March 2021. 

Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE.  Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers.  Total revenues were US$64.3m, US$81.9m and US$102.0m for the years ended 31 December 2018, 2019 and 2020, respectively.  The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50m to support Trustpilot’s growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees.  Timing TBC. 

In The Style, the e-commerce womenswear fashion brand with an influencer collaboration model, announces their intention to float on AIM.  In The Style is a pure-play e-commerce fashion brand with a l customer base of women predominantly aged between 16 and 35. Founded in 2013, the group has delivered £35.4m net sales and £3.6m Adjusted EBITDA in the nine months to 31 December 2020, with sales up 159% from £13.7m for the nine months to 31 December 2019.  Admission is expected to take place on or around 17 March 2021.  Deal size TBC. 

Media reports video game firm, Catalis is mulling a London IPO, just over a year after being bought by a private equity firm.  Catalis’s accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m.  Deal details and timing TBC. 

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.

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 is expecting to release its IPO plans on 8th March.  The company, said to be targeting a valuation of up to $10 billion, intends to opt for a dual-class share structure for three years after the listing, meaning Deliveroo’s founders could retain extra voting rights for that period.

 

Banquet Buffet

Invinity Energy 149p  £129m (AIM:IES)

The manufacturer of vanadium flow batteries for the large-scale energy storage requirements of businesses, industry and electricity networks, has released a trading update.  

The Company continues to build on record 2020 orders of 18.6 MWh, which comprised a number of  strategically significant projects . The pipeline stands at 143.7 MWh up 18.4% since November 2020.

Notes strong policy movements in the UK which Invinity believes will significantly strengthen domestic opportunities, including:

–         £68m of funding announced in the 2021 Budget for “longer duration energy storage” projects explicitly excluding lithium-ion or pumped hydro storage. 

–         The introduction of new ancillary service markets in 2021 which are highly appropriate for technologies capable of high energy throughput such as flow batteries.

 –        Rising carbon prices and the introduction of green bonds which are expected to provide support to renewable and energy storage projects.

 

Cornish Metals 8.5p  £11.9m (AIM:CUSN)

Cornish Metals signs important South Crofty leases and agreement for disposal of mine water treatment waste.

· An agreement has been reached with Brownfield Investments Ltd and Roskear Minerals LLP to lease a 1.2 hectare site surrounding New Roskear Shaft in Camborne for up to 23 years;

· An agreement has also been reached to lease the mineral rights owned by Roskear Minerals LLP within the South Crofty Underground Permission Area for up to 25 years; and

· A binding heads of terms has been agreed with Wheal Jane Ltd for the disposal of waste material derived from the treatment of mine water from South Crofty Mine into the Wheal Jane tailings dam located 12 kilometres east of South Crofty. The agreement will become effective when dewatering of South Crofty commences.

 

Caretech Holdings 543p  £615m (AIM:CTH)

AGM Statement from the provider of specialist social care and education services to adults and children in the UK. At the AGM, Farouq Sheikh, Executive Chairman of CareTech, will confirm that the Group’s trading performance to-date for FY 2021 is in-line with the Board’s and market’s expectations and that the Group has successfully maintained its proactive approach to managing the impact of COVID-19. 

The Group’s priority has continued to be the safety, health and well-being of its employees and on continuing to deliver a high quality service to those in its care. Following on from previous announcements, all operational sites continue to be open in the current lockdown and, in the absence of routine regulatory inspections, the Group has effectively reinforced the management of quality and care governance functions keeping to its high standards.

CareTech’s financial position remains robust with strong cash generation being deployed across a growing pipeline of development opportunities across the Group as well as continuing to de-lever in line with stated targets.

 

Ideagen 273.5p  £690m (AIM:IDEA)

The supplier of regulatory and compliance software, announced the acquisition of Qualtrax Inc to further extend the Group’s presence in the United States for a total net cash consideration of approximately $14.9m.

Acquisition Highlights

· Qualtrax is a fast-growing supplier of QHSE to a number of highly regulated industries including laboratory services, manufacturing and aerospace

· 350 clients, including WalMart, the D.C. Office of the Chief Medical Examiner, Colorado Bureau of Investigation and the Arkansas State Crime Lab

· Currently employs 40 people from its office in Blacksburg, Virginia which will become Ideagen’s new US HQ

· Qualtrax’s current Annualised Recurring Revenue (ARR) book is approximately $5.1m of which over 90% is SaaS

 

Prospex Energy 1.85p  £1.64m (AIM:PXEN)

The  investment company focused on European gas and power projects,  has raised £750,000 gross via a placing  at 1.5p. Warrants will also be issued to Placing subscribers, on the basis of one warrant per two Placing Shares subscribed for, with an exercise price of 3p, and a term of two years from Admission. The Placing was undertaken with new and existing investors as well as a Director of the Company who is acquiring Placing Shares with an aggregate value of £30,000.

The net proceeds of the Placing will primarily be used to fund planned programmes at the El Romeral integrated gas production and power station operation in southern Spain, and the Podere Gallina licence onshore Italy where first gas at the Selva field is expected to commence later in 2021, subject to the granting of a production concession.  The balance of the net proceeds will be used for general working capital purposes, including the evaluation of new business opportunities.

 

Live Company Group 4.75p  £5.23m (AIM:LVCG)

Live Company Group has signed a new contract for Paddington Bear with the Black Watch Museum in Perth, Scotland .

The tour of the iconic Paddington Bear which include Aunt Lucy, Mr Brown and Paddington Bear himself will be showcased in October 2021. This is the first time the Company has collaborated with the Black Watch Museum which is named after the Black Watch regiment which was formed in 1739 to keep ‘watch’ over the highlands and also the first time one of our tours will take place at visitor attraction in Scotland. 

 

Ncondezi  4.3p  £15.75m (AIM:NCCL)

Ncondezi has signed a Master Services Agreement with Synergy Consulting to provide financial and transaction advisory services to the Group for the integrated Ncondezi 300MW coal fired power project and coal mine in Tete, Mozambique .

· MSA covers potential advisory services to the Project up to Financial Close, including:

o  finalisation of Project power tariff with Electricidade de Moçambique ;

o  negotiations with China Machinery and Engineering Corporation  on Project subscription price;

o  negotiations with Project lenders for debt financing; and

o  capital raising for Ncondezi’s equity contribution towards the Project at Financial Close.

 

Directa Plus 122p  £74.9m (AIM:DCTA)

The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets,  has received another positive test result relating to the potential for absorption of the Company’s pristine graphene nanoplatelets powder (Pure G+®) through human skin.  This latest in vitro test showed that there is no absorption potential for Pure G+®, taking the total number of positive in vitro test results to eight.

 

Kromek 16.125p  £69.64m (LON:KMK)

The worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, announces that it has been awarded a contract worth a minimum of $960,000 in the Nuclear Detection segment, of which approximately $150,000 will be realised in the current financial year. 

The Group will receive $260,000 to customise its CZT detector platform for integration into a new radiation detection product that will be available in Asia. This development work will commence immediately and be completed by the end of this calendar year. The Group will then supply the customised platform under a three-year contract, which is worth a minimum of $700,000.  

 

Tribal Group 93.9p  £189m (ON:TRB)

The provider of software and services to the international education market, announced the appointment to the Board of Diane McIntyre as Chief Financial Officer, with effect from 1 June 2021.

Diane has over 25 years’ experience in finance roles, including her most recent role as Director of Finance at  Sky UK Limited, and previous senior financial and executive positions at Vodafone Group PLC and Cable and Wireless plc.  As an experienced finance leader, Diane has a wealth of knowledge across commercial negotiation, strategy development and operational expansion.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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