Small Cap Wrap – Open Orphan, Mincon Group, Eight Capital Partners and more…

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10 May 2021

@HybridanLLP

*A corporate client of Hybridan LLP

 

Dish of the day

Catena Group completed a reverse takeover on AIM and renamed Insig AI (INSG.L) by acquiring the remaining shares of  Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager’s data science and machine learning strategy. Capital to be raised on Admission approximately £6.1m. Mkt cap c. £66.4m.

Off the menu

No Leavers Today.

 

What’s cooking in the IPO kitchen?

Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking a raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.

Taylor Maritime Investments to join the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3 billion of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021.

Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.

Belluscura to join AIM.  The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40m. Due late May.

Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8 per cent. compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 per cent.), followed by EMEA (FY20: 17.0 per cent.), and APAC (FY20: 6.4 per cent.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19. 

Boanerges Limited, announces an application of admission onto the Aquis Stock Exchange. The Directors believe that an opportunity exists to acquire and consolidate holdings in SMEs operating in the technology sector, with the intention of creating value for Shareholders. Initially, the Company’s focus will be searching for companies which are based in the UK or Europe where there may be a number of opportunities to acquire interests in undervalued or pre-commercialisation technologies, or current commercialisation technologies, which when applied, produce cost saving or revenue enhancement for customers. Technology company acquisitions may include those involved in Big Data, Machine Learning, Telematics and Internet of Things sectors. Early acquisition of these innovative technologies should provide maximum returns for Shareholders. Expected 17th May.

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Aquis Stock Exchange, Growth Market (Access Segment). Admission on AQSE is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Glantus Holdings, a provider of accounts payable automation and analytics solutions, is considering a listing on the AIM. It is focusing on three product areas; Active AP Discovery, Intelligent AP Automation and Advanced AP Analytics, it utilises its internally developed data platform to offer an integrated solution for the finance function, accounts payable in particular. These solutions are offered to over 300 customers, more than 50 of which Glantus classifies as large enterprises. The Group headquarters is in Dublin, Ireland. The main office for EMEA operations is in Harpenden, England. The main office for US operations is in San Jose, California. The core product development team is based in Katowice, Poland with additional team members in a satellite office in Vilnius, Lithuania, and management support from the Dublin headquarters. Valuation, amount to raise, and timing TBC.

Alphawave IP Group is considering an IPO on the Main Market (Standard). Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing an equity value of up to USD 4.5b for the Group at Admission. During the year ended 31 December 2020, the group generated revenue of USD 32.8m, exhibiting robust growth and delivering a CAGR of 161 per cent. since the year ended 31 May 2018.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (Standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected tbc.

 

Banquet Buffet

Amino Technologies  157.5p  £122.7m (LON:AMO)

The software-led global media technology company that delivers modern TV experiences, has submitted a bid, through a wholly owned subsidiary, to acquire the trade and assets of MobiTV, Inc. and MobiTV Services Corporation, a US live and on-demand TV platform provider. The Possible Acquisition would immediately establish a TVaaS infrastructure capability in the USA for Amino, which the Board of Amino estimate would require significant investment over a 6-12 month period to develop organically. The Possible Acquisition would also provide an immediate contribution towards Amino’s strategic financial goals, in particular its focus on increasing annual recurring revenues. The Possible Acquisition, if completed, would be a Substantial Transaction pursuant to AIM Rule 12. The costs and working capital commitments associated with the possible Acquisition are to be funded by the Company’s existing cash resources and available credit facilities, supplemented by a placing of new Ordinary Shares in the Company to institutional and other investors commitments for which have been made by certain shareholders and other investors, subject to customary conditions including, inter alia, admission of the new Ordinary Shares to trading on AIM. 

 

Begpies Traynor Group 118.6p  £179.6m (LON:BEG)

Acquisition of MAF Property Limited, which trades as MAF Finance Group, a Midlands-based finance broker. Initial consideration of £3.0m: £2.0m cash from the group’s existing facilities and the issue of 847,458 new ordinary shares. Potential earn out of up to £8.75m subject to delivering material growth in profits over the four years post completion. Finance broking complements the group’s existing services and deepens relationships with banks and other lenders. In line with strategy to increase the scale, quality and range of the group’s services both organically and through value-accretive acquisitions. The acquisition is expected to be immediately earnings enhancing.

 

Conygar Investment Co 120.5p  £63.6m (LON:CIC)

The property investment and development group, announces the appointment of David Baldwin as Finance Director with effect from today. David has been with Conygar for five years as Financial Controller and also, since 6 April 2020, as Company Secretary, reporting to the Board. Robert Ware, Chief Executive of Conygar, commented: “We are delighted to welcome David as our new Finance Director who brings with him over 25 years’ experience in corporate and financial management and reporting for a range of commercial and investment property groups.”

 

Corcel  195p  £55.7m (LON:CRCL)

The natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces the acquisition of a 40% interest in the “shovel ready” Tring Road 50MW gas peaking project outside of Aylesbury from Arlington Energy Limited (AE). The Company further announces its intention to explore and discuss with AE the potential, subject to agreement on terms, to co-develop and fund additional  flexible energy assets in the United Kingdom.  

 

Eight Capital Partners 0.06p  £0.2m (AQSE:ECP)

Eight Capital Partners Plc (AQSE: ECP), the investing company whose investment strategy focuses on technology, media, telecom and financial services businesses including listed investing companies, announced the acquisition of financial services business, Innovative Finance Srl. The Company will pay an initial EUR2.45m with a further potential earn-out of up EUR2.45m based on the achievement of financial performance targets. It also announces a Term Loan to the Company of EUR1.1m. The ECP board has been reviewing a number of investment opportunities within the financial services sector and recognises that those engaged in “Fintech” operations, the digitisation of banking services, through to blockchain-backed decentralised finance companies and crypto banks, are revolutionising the way that customers interface with financial services. Companies that embrace this technology are likely to become market leaders within their chosen sectors.

 

Mincon Group 118p  £238.5m (LON:MCON)

The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products, today provides an interim trading update. Mincon is experiencing good order levels in most markets with a positive momentum building across the business and revenue is ahead of last year for the first four months. Sea freight lead times remain challenging due to the pandemic and the Company is using air freight where necessary to overcome these freight challenges. It curtailed other overheads to compensate for any increased freight costs. Covid-19 had an impact on some  key manufacturing facilities in the early part of the year. In particular the beginning of 2021 was challenging for production in the key hammer facility in Shannon, as they endeavoured to ensure they remained Covid-free. This situation gradually improved and by the end of March production levels had recovered and pushed ahead of the 2020 run rate. Mincon continues to advance the business of the Group through investing in new product development and manufacturing methods. In April 2021, the Group was successful in its grant application, as lead member in a consortium, to the Disruptive Technology Innovation Fund promoted by the Irish Government to develop a new robotic seabed drilling system along with the installation and testing of marine anchors using micropile technology. These micropiled anchor foundations will be used for a wide range of applications including offshore wind turbines.

 

Open Orphan 37.13p  £252.7m (LON:ORPH)

The rapidly growing specialist pharmaceutical services contract research organisation (CRO) and world leader in vaccine and antiviral testing using human challenge clinical trials, announces that hVIVO, a subsidiary of Open Orphan PLC, has signed a contract with Imperial College London, as part of a Wellcome Trust funded initiative to manufacture a SARS-CoV-2 challenge virus. The contract is worth £3m and under this agreement hVIVO will develop a new SARS-CoV-2 challenge virus based on new emerging variants of the virus, which will be used in future hVIVO run human challenge trials to allow direct comparisons of vaccines or antivirals against different COVID-19 variants.

 

Physiomics* 6p  £6.2m (LON:PYC)

The provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry, today announces that its total income for the financial year ending 30 June 2021 is likely to be in the range of £700k-£800k and its loss after tax in the range of £170-200k. This is below market expectations and due to both COVID related project delays and to an increased focus on longer-term value-generating activities. The Company’s cash position remains strong, and it is estimated that on 30 June 2021 its net asset position will be c.£1.1m, the majority of which is cash. The Directors also believe that the Company’s selective engagement in activities that do not immediately generate revenue have the potential to deliver significant longer-term value. In particular, the initial work with TabulaRasa Healthcare® (“TRHC”) to integrate Physiomics’ personalised docetaxel model into TRHC’s market-leading precision dosing solution, DoseMeRx is due to conclude within the next few months. Dr Jim Millen, CEO, commented: “The pharmaceuticals and biotech industry has weathered the COVID storm better than many other sectors and industries, however it is not immune, and it is well known that trial delays have been a knock-on effect. We believe the impact on Physiomics will be temporary and we already see that clinical trials and patient recruitment are showing signs of returning to normality.  We have continued to discuss with current clients a number of new projects and have also been in dialogue with a number of potential new clients.”

 

RUA Life Sciences 137.5p  £30.5m (LON:RUA)

The holding company of a group of medical device businesses focused on the exploitation of the world leading long-term implantable biostable polyurathane (Elast-Eon™), provided a trading update ahead of the publication of the Group’s audited final results for the year ended 31 March 2021, which are expected to be released in the second half of July 2021. Continued like-for-like growth in Elast-Eon™ polymer royalty income. Acquired business, RUA Medical, achieved minimum targets set at time of acquisition. Strengthened cash position at year end of £6.4m. Successful fund raise in December 2020 allows roll out of investment in development and scale up activities.

 

STM Group 32p  £18.4m (LON:STM)

The cross-border financial services provider announced the unconditional sale of its Jersey based trust and company services businesses for a minimum net cash consideration of £1.40m. The sale completes the Company’s strategy to exit the CTS sector, and focus on its core activities of pension administration and life assurance. The sale proceeds will further contribute towards funding organic growth opportunities and build on the cash resources available for further M&A activity.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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