Small Cap Wrap – Challenger Energy, Draper Espirit, Evgen Pharma and more…

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

14  June 2021
 

*A corporate client of Hybridan LLP

 

Joiners: Endeavour Mining (TSX: EDV, LSE: EDV, OTCQX: EDVMF) has joined the Main Market (Premium). No funds raised. Endeavour is one of the world’s senior gold producers and the largest in West Africa, with operating assets across Senegal, Cote d’Ivoire and Burkina Faso and a strong portfolio of advanced development projects and exploration assets in the highly prospective Birimian Greenstone Belt across West Africa.

 

Leavers: Kcell Joint Stock Company GDRs delisted from the Main Market.

 

What’s cooking in the IPO kitchen?

Orcadian Energy, the North Sea focused, oil and gas development company, announces its intention to seek admission to AIM. The Company’s key asset is the 100% interest in the Pilot oilfield, with audited proven and probable reserves of 78.8m barrels (audited by Sproule BV). Orcadian plans to raise gross proceeds of c. £5m to progress its assets. Expected June/ early July.

Itim Group Limited (to be renamed itim Group plc) is a software technology company, established in 1993. Itim adds value by helping multi-channel retailers optimise their business and stores to improve financial performance and compete more effectively in the digital world of modern retailing. The Company provides flexible solutions proven at adding value as retailers transform stores, digital capabilities and operations suitable for modern retailing and profit improvement. The company plans to raise up to £15m on Admission on AIM (through a placing of new and existing equity). Due date late June / early July.

Spectral MD Holdings, Ltd., a predictive analytics group that develops proprietary AI algorithms and optical technology for faster treatment decisions in wound care, announces its intention to IPO onto AIM. Net proceeds from the IPO will be used to provide capital for the development of DFU technology which will include investment in additional clinical studies supporting the indication along with progressing regulatory filings; build a European presence and implement the Group’s sales strategy to sell the Group’s DeepView® product into various targeted European jurisdiction; build US distribution network and provide working capital. Due late June.

 

Baltic Classifieds Group PLC, the leading online classifieds group in the Baltics, announced their intention to IPO on the Premium Segment of the LSE. The Offer will comprise an offering of both new Shares to be issued by the Company, with gross proceeds expected to total approximately EUR 120m and existing Shares to be sold by ANTLER Equity Co S.à r.l and certain BCG shareholders. The directors intend to use the net proceeds from the Primary Raise for the repayment of existing debt in conjunction with the refinancing of the Senior Facilities Agreement targeting a net debt at IPO of approximately 2.75x FY21 Adjusted EBITDA. Expected early July.

The UK Residential REIT, a proposed closed-ended real estate investment trust established to invest in a diversified portfolio of affordable, privately rented residential real estate assets in attractive locations outside of London, announces its intention to IPO onto the Premium Segment of the LSE. URES is targeting Gross Issue Proceeds of  150m before expenses by means of a placing, offer for subscription and intermediaries offer of 150m Ordinary Shares plus an Issue of up to 50m Consideration Shares in connection with the acquisition of Seed Assets at an issue price of £1.00 per Ordinary Share. Expected market capitalisation following the completion of the acquisition of Seed Assets of £200m. Due 16 July

Nord Gold plc, the internationally diversified pure-play gold producer, announces the intended publication of a registration document and its potential intention to undertake an IPO on the Premium Segment of the Main Market. The Company has also applied for admission of the Shares to trading on the Moscow Exchange.

 

Victorian Plumbing Group Limited the UK’s leading online retailer of bathroom products and accessories, announces its intention to seek admission of its ordinary shares to trading on AIM. Group has grown rapidly in recent years and is now the UK’s leading online specialist bathroom brand by revenue in 2020 and the second largest retailer of bathroom products in the UK with an estimated 14.2% of the bathroom market by revenue in 2020. The Company’s growth trajectory was maintained in the current financial year, delivering results of £140.7m revenue, and £20.1m adjusted EBITDA for the six months ended 31 March 2021.

LionTrust ESG Trust PLC announces the publication of the Prospectus in connection with the IPO on the Premium Segment of the Main Market. The Company is targeting an initial issue of £150m by means of an Initial Placing, Offer for Subscription and Intermediaries Offer of Ordinary Shares at an issue price of 100 pence per Ordinary Share. In addition, pursuant to the Prospectus, a placing programme will allow the Company to issue up to an additional  250m Ordinary Shares and/or C shares, in the 12 months from the date of publication of the Prospectus and following Initial Admission.

 

MADE, a digitally native lifestyle brand in home has announced its intention to IPO onto the Premium Segment of the LSE. MADE’s mission is to make high-end designer furniture and homeware products accessible to everyone.  Their gross sales, net revenue and Adjusted EBITDA were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31 March 2021 and £315m, £247m and (£5.1m), respectively, for the year ended 31 December 2020.  The Offer would comprise a primary offer to raise proceeds to further develop growth in existing markets, improve service through reduction of lead-times offered to customers, scale its homeware range and give the Group increased working capital flexibility. MADE would seek to raise approximately £100m of primary proceeds. Expected June.

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 Access Segment AQSE Growth Market. Admission 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.

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.” Due 22 June.

 

Banquet Buffet

 

Challenger Energy 2.7p  £21.3m (LON:CEG)

The Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and exploration assets across the region, updated on progress at the Saffron-2 appraisal well, currently being drilled at the Saffron project in the South-West Peninsula of Trinidad. The well is targeting the Middle and Lower Cruse reservoirs with an expectation (based upon the Saffron-1 discovery well) of production rates in the range of 200 – 300 bopd. Drilling has advanced through the lower section of the Middle Cruse to a depth of 2,804ft; formations encountered in line with pre-drill expectations. Logging has been completed for this section of the Saffron-2 well; hydrocarbon zones defined. The entire middle section of the well has now been cased and cemented, with drilling of the final stage of the Saffron-2 well underway; the objective in this final section of the well is to define the resource potential of the Lower Cruse, and thereafter production test these zones.

 

Draper Esprit  821p  £1140m (LON:GROW)

Proposed placing by the venture capital firm investing in some of Europe’s fastest growing private technology companies.  The proceeds of the Placing will provide the Company with additional investment firepower, reflecting the accelerating fundraising cadence of the Company’s investment portfolio and pipeline. It is intended that 13,902,778 new Ordinary Shares will be issued under the Placing and PrimaryBid Offer at a price of 800 pence per Placing Share, raising gross proceeds of c.£111m. The Placing Price represents a premium of c.7.7 per cent. to the last reported NAV per Ordinary Share as at 31 March 2021 of 743 pence and a discount of c.4.6 per cent. to the closing mid-market price of 839 pence per Ordinary Share on 11 June 2021. 

 

Evgen Pharma 8.45p  £22.26m (LON:EVG)

The clinical stage drug development company, announces further progress and an update on clinical trial plans for SFX-01 in glioblastoma. Glioma is the most common form of brain tumour affecting around 5 per 100,000 people. The more severe, grade IV classification, glioblastoma, is a very serious form of brain tumour representing 45% of all cases and has a poor prognosis with median survival of around 14 months. Together with neuroblastoma, GBMs now account for more deaths in the under 40s than any other tumour. Previously the Company reported that these data generated by Dr Claudio Festuccia at University L’Aquila showed that with in vivo  pre-clinical subcutaneous and orthotopic models (where glioma cells are implanted in brain tissue representing a more disease-relevant model), SFX-01 produced tumour shrinkage and significantly extended survival times. SFX-01 was also found to potentiate (i.e. substantially increase) the therapeutic effect of radiotherapy in these models. Evgen now report that the in vitro these data from these experiments have been reproduced with very similar results at the University of Auckland using cells generated from freshly extracted patient GBM tissue, rather than the standard GBM cell lines established many decades previously. Further in vivo work has commenced at a contract research organisation to build upon the subcutaneous GBM tumour model experiments conducted by Dr Festuccia. Plans for a Phase II GBM clinical trial with an adaptive design are progressing with a scheduled start in the first half of 2022. In tandem work has started with regulatory advisers on preparation of an Investigational New Drug application for submission to the US Food and Drug Administration in Q4/2021.

 

Faron Pharma 367.5p  £199m (LON:FARN)

Faron Pharmaceuticals Oy, a clinical stage biopharmaceutical company, today announces that the United States Patent and Trademark Office has granted a new US Patent, No. 11,046,761, with claims protecting the composition of matter of bexmarilimab. The patent will be issued on 29 June, 2021. Faron’s wholly-owned novel precision cancer immunotherapy drug candidate, bexmarilimab, targets the Clever-1 receptor, known to be expressed on immunosuppressive macrophages in the tumour microenvironment and circulating in soluble form, and which is capable of directly inhibiting T-cell activation. The reprogramming of these Clever-1 positive macrophages by bexmarilimab, from an immunosuppressive state to an immune-stimulating one, is believed to be a key immune defence against tumour growth and spread.

 

Frontier IP Group 100.5p  £54.73m (LON:FIPP)

The specialist in commercialising intellectual property, today announces that portfolio company Nandi Proteins has appointed David Flower as Chief Executive Officer. David is the former Managing Director, Europe, for Singha beer maker the Boon Rawd Brewery Company. He was previously Managing Director Home Baking for Kerry Foods. David joins Nandi at an important stage. The Company is scaling up its first commercial products to create a wide range of customised ingredients based on vegetable and animal proteins. These functional proteins can be used to replace undesirable ingredients, such as fat, gluten and E-number additives in processed foods, or those that people do not want to consume for example, replacing animal proteins with vegetable proteins.

 

Manx Financial Group 8p  £9.13m (LON:MFX)

MFX has increased its shareholding in Beer Swaps Limited (BSL), trading as Ninkasi Rentals and Finance https://ninkasirentals.co.uk/, to 90% for a cash consideration of £0.3m. The Group acquired 20% of BSL’s issued share capital in 2018, and further enlarged its shareholding to 75% in March 2020. The Group retains an option to acquire the remaining shares by February 2025. BSL, formed in 2015 and based in Ledbury, provides both equipment finance, together with rental products, to the increasingly popular and fast-growing UK based craft and micro-brewing sector. BSL is now one of the largest lessors to this market, owning 221 fermentation vessels and associated equipment, of which 93% of its stock is currently on lease to customers. To fund BSL’s further expansion, the Group’s banking subsidiary, Conister Bank Limited (the “Bank”), has provided an initial £5.0m Wholesale Funding Agreement. For the year ended 31 December 2020, BSL reported a turnover of £0.6m, with net assets standing at £0.2m.

 

Oracle Power 0.475p  £11.65m (LON:ORCP)

Oracle announced what the Company considers to be highly positive geochemical sampling results from its maiden orientation survey at its 100% owned Jundee East Gold Project, located in the Eastern Goldfields region of Western Australia. Jundee East is located ~7km due east of Northern Star’s producing Jundee Gold Mine, which has a current Resource of 5.4Moz. Geochemical soil sampling programme over the first three lines over Jundee East highlights positive responses for gold and copper using Mobile Metal Ion geochemical techniques designed to identify mineralisation below cover. Raw multi element plots show clear variations of elevated gold and copper above buried targets of greenstone belts and intrusions located about 100 metres below surface. These early and positive results show that indicator elements (including gold and copper) are making their way to surface at an atomic level above the main target area and provide further evidence of a mineralised system in a previously unrecognised greenstone belt, proximal to Northern Star’s Jundee Gold Mine. The programme represents a successful test for the validity of geochemical sampling, which will now be expanded to assist with maiden drill targeting, by closer infill and extensional surface sampling.

 

Plant Health Care 16.2p  £48.5m (LON:PHC)

The  provider of novel patent-protected biological products to global agriculture markets, announces it has been awarded the London Stock Exchange’s Green Economy Mark in recognition of its contribution to the global green economy. Chris Richards, CEO of Plant Health Care said, “I am delighted that Plant Health Care has been awarded the Green Economy Mark in recognition of our portfolio of environmentally friendly products. Our Harpin-based products and PREtec technology are derived from natural proteins and represent a low impact approach to protecting crops and increasing yields while being compatible with mainstream agricultural practices.  Plant Health Care is committed to sustainable products which are also highly cost-effective, thereby supporting farmers to feed the world in a more sustainable manner.”

 

Scirocco Energy 1.1p  £8.3m (LON:SCIR)

The AIM investing Company targeting attractive production and development opportunities within the European energy market, announced its proposed investment into Energy Acquisitions Group Ltd (EAG), a specialist acquisition and operating vehicle in the sustainable energy sector. This investment of £1.2m will be funded from current cash resources and signals the Company’s first investment as part of the Company’s revised strategy that targets opportunities within the energy transition in Europe. By creating a joint venture platform alongside EAG, Scirocco Energy will leverage EAG’s strong network and industry leading expertise to gain access to a series of already identified acquisition opportunities within the anaerobic digestion sector. This initial investment will be used by EAG to acquire 100% of Greenan Generation Limited (GGL) and associated 0.5 MWe Anaerobic Digestion plant located in County Londonderry, Northern Ireland. Anaerobic digestion is a process that creates biogas, a renewable energy source that will help the UK deliver on its decarbonisation commitments. This transaction signals a material change to Scirocco’s investment policy and as a result, it is conditional upon shareholder approval, which is to be sought at the Company’s AGM to be held on 9th July, notice of which is being separately announced this morning.

 

SulNOX 1.1p  £8.3m (AQSE:SNOX)

Collaboration agreement with The Hythe Group, a UK-based group specialising in the provision of premium mechanical, building, design and engineering services. This far-reaching arrangement is to bring together the unique environmental science of SulNOx and the maritime engineering skills of Hythe Marine Services (a Hythe Group company) built up over the last 15 years at all levels from small vessels up to aircraft carriers. As a professional combined team, they aim to be able to educate and deliver SulNOx’s proprietary technologies to the world’s largest shipping companies, through engineers of the highest standing. Together, the Company wish to save ship operators money through reduced fuel consumption and significantly reduce toxic emissions. Josh Mathias, Managing Director of The Hythe Group, commented, “As a British engineering company, that has a strong connection to the Maritime Industry, we welcome the chance to work with SulNOx in the quest to help the shipping industry adopt this exciting and unique cost-saving green technology.” Ben Richardson the CEO of the SulNOx Group commented, “To be credible in front of the world’s most prestigious shipping companies, we must add engineering skills of the highest order to our scientific offering. The Hythe Group have all the necessary regulatory approvals to go aboard Naval and Merchant ships alike and have all the top-quality engineering capabilities that we need for an industry that moves over 90% of world trade. We are genuinely excited by this collaboration agreement.”     

 

Head Chef:
Derren Nathan
0203 764 2344
[email protected]

 

Sous Chef:
Sacha Morris­[email protected]

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