Small Cap Wrap – Zephyr Energy, Verditek, Tristel and more…

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24 June 2021

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What’s cooking in the IPO kitchen?

Seraphim Space Investment Trust PLC, a newly established closed-ended investment company which will invest in a diversified international portfolio of early and growth stage Space Tech businesses, announces the publication of its Prospectus in connection with the IPO to the Premium Segment of the Main Market. The Company is targeting gross proceeds of up to £180m through the issue of up to 180m Ordinary Shares by way of the Initial Placing, the Offer for Subscription, Direct Subscriptions and the Intermediaries Offer at 100 pence per Ordinary Share. The Company will subsequently also acquire stakes in four Space Tech businesses upon the completion or termination of currently pending corporate activity in relation to those assets. Assuming the successful completion of these transactions currently underway, the Company’s investment manager, Seraphim Space estimates approximately £70m of value relating to the Retained Assets could be acquired by the Company.

 

Future Biogas Group plc, is a newly formed holding company which will acquire 100% of Future Biogas Limited (“FBL”). Future Biogas is a clean energy company that operates biogas plants in the UK. It is one of the largest biogas producers in the UK, delivering approximately 5,000 cubic metres per hour of green gas to the Gas Grid. FBL was formed in 2010 in order to develop and operate biogas plants.  The Group has deployed over £125m and built 12 biogas plants in the UK since then, largely through tax efficient funding such as VCT and EIS. In 2020, the ten biogas plants operated by the Group generated over 426 GWh of renewable energy. TBC ordinary shares of £0.01 each in the capital of the Company. In addition to the biogas plants it operates on behalf of third parties, the Company intends to build on its experience by constructing its own portfolio of new bioenergy plants with carbon capture storage (“BECCS”). Target fundraise up to £35m. Anticipated market cap TBC. Admission date TBC

 

Saietta Group, announces intention to list on AIM. Saietta, is a UK company that has developed an innovative AFT electric motor (a design of axial flux motor), designed to deliver class-leading performance for its target markets whilst being low cost and built for mass market production. Saietta’s initial target market is the high volume, fast growing lightweight mobility market including motorcycles in Asia. Admission date and market cap TBC.

 

Silverbullet is a provider of digital transformation services and products which assist brand owners and advertisers to optimise their digital marketing investment, with a particular focus on unlocking the potential of first party data and contextual intelligence. The Company announced its intention to seek admission of its shares to trading on AIM, with admission expected to take place on 28 June 2021. Seeking to raise £9.5m. Expected mkt cap c£34.5m.

Poolbeg, Proposed AIM listing and demerger from Open Orphan (ORPH.L). Funds raised as part of Admission will be used primarily to fund the clinical trial costs associated with the development of the Company’s POLB 001 asset as a treatment for severe influenza and to acquire and develop new portfolio assets.  Offer details and timing TBC

Wise, the Fintech and payments start-up is planning to pull the trigger on a direct listing on the London Stock Exchange, becoming the latest tech firm and this time a Unicorn to cash in on the ongoing boom in flotations on the UK’s public markets. Wise plans to establish a customer shareholder programme, OwnWise, which will reward customers joining as shareholders after admission to support its long-term mission. OwnWise, open for pre-applications from UK eligible customers today, provides participants with the chance to receive bonus shares in Wise, representing 5% of the value of the shares they buy and hold for at least 12 months (based on market value at the time of purchase) up to a cap of £100, amongst other perks. All existing investors, including the company’s team of current and previous Wisers (employees) who hold options and shares, will be offered time-limited enhanced voting shares to support Wise’s focus on its mission as it transitions to being a listed company. Admission Due TBC

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 £8m on Admission on AIM, through a placing of new equity at an issue price of 154 pence. Market Cap £48.1m. Due date 28th 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

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.

 

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. 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. Due 30th June.

 

Banquet Buffet

Bezant Resources  0.23p £9.25m (LON:BZT)

Bezant provided information detailing results of recently completed reconnaissance mapping, prospecting and sampling work at its’ 100% owned high-grade Kanye manganese project in Botswana. Up to four historic manganese occurrences were successfully located and sampled in the field within an 8km-belt. 40 grab samples were obtained which assayed from traces up to high-grade results of 67.18% MnO occurring at the Moshaneng borrow pit and 68.01% MnO at the Mheelo prospect. The latter prospect is located just 6km from the Giyani Metals K-Hill manganese project where a feasibility study is due for completion in Q3 2021 (April 2021 PEA indicates an 80% IRR). Bezant plans to follow-up the main targets with clearance/trenching by mechanical excavator to facilitate detailed mapping, prospecting and more systematic sampling. Confirmed targets will be drill tested to define lateral and depth extent of deposits.

 

Diaceutics 128.5p  £108m (LON:DXRX)

The diagnostics commercialisation company for precision testing, announces it has secured four projects with two leading pharmaceutical companies to solve real-world testing hurdles for the rare disease group: Inherited Retinal Disease (IRD). IRD has, until now, been a largely untreatable disease group causing severe vision loss or even blindness, affecting around 2m people worldwide. The contracts demonstrate the applicability of the DXRX diagnostic commercialisation platform outside of the Company’s core area of oncology. The services will be delivered over the course of six months in 2021 across Europe, the UK, APAC & the US. The projects are in partnership with existing pharmaceutical customers of the Company and represent an expansion of its commercial relationship into a new therapy area, in line with the Company’s ‘land and expand’ strategy, and the increased engagement of the customers with the DXRX platform. The contracts will deliver approximately £1.0m revenue within 2021. 

 

Emmerson 5.8p  £487.3m (LON:EML)

Update on progress made at its world class Khemisset Potash Project in Morocco during the first six months of 2021. Environmental approval process reaching completion. All technical work completed, submissions made, and review meeting held with the Environmental Evaluation Committee EEC. Lodged applications for renewal for the remaining research permits that were not part of the Mining Licence area, with a positive outcome expected in Q3 2021.Completed geological work to further improve understanding of the general structures, update various geological plans and maps and, advance the Deep Well Injection plan. Completed a work programme and commenced a tender process for technical field works with the objective of addressing risks and recommendations identified in the FS as well as preparing the data set to be used in the engineering design workstreams. Completed work relating to the technical aspects of the design and engineering to take the Project towards construction readiness. Confirmed initially indicated power cost savings and secured preferred supply option following detailed discussions with several renewable energy providers in Morocco. Commenced FS for the Sulphate of Potash project with a view to diversifying product offering and enhancing margins. Project team continues to be strengthened in preparation for the engineering design and construction phase. Ongoing strategic partner discussions and debt funding due diligence. Altogether, the planned workstreams are on course to meet the target of commencing early construction work by year end.

 

KRM22  40p  £10.7m (LON:KRM)

The technology and software investment company, with a particular focus on risk management in capital markets, announced a partnership with Waymark Tech to add Waymark’s Wayfinder product to the KRM22 Global Risk Platform. A regulatory change management and obligations tracking solution. Wayfinder uses Artificial Intelligence and Natural Language Processing to provide complete horizon scanning of key regulatory changes from more than 2,500 global data sources. The partnership will also facilitate collaboration on additional, innovative compliance services.  Plans include a free-to-use Regulatory Change and Enforcement Actions News Service, and a data-driven Regulatory Rulebook module within KRM22’s Compliance Risk Cockpit. 

 

Petards Group* 12.75p  £7.33m (LON:PEG)

The developer of advanced security and surveillance systems, announces that a key customer has exercised its existing option to extend an existing contract for the provision of software licences, maintenance and support services. This extension, secured by Petards’ subsidiary RTS Solutions (RTS), is effective from 23 June 2021 and runs until June 2023, the value of which is worth over £0.5m with annual revenues in excess of £0.25m. Under the terms of the contract RTS will continue to provide software licences, maintenance and third line support in respect of its real time failure and incident management system that supports the UK’s national rail infrastructure. Commenting on the award, Raschid Abdullah, Chairman of Petards Group PLC said : “We are delighted to have secured this contract extension and that our customer has recognised the expertise and high levels of customer service it has received from RTS over many years. This award, together with the 3-year renewal of licensing and support agreements for WMS software announced in May, adds to RTS’s order book and provides it with a strong core of recurring revenues for the current and following years.”

 

Rockfire Resources 0.82p  £7.88m (LON:ROCK)

Update to its exploration programmes currently underway at the Company’s 100%-owned gold and copper projects in North Queensland, Australia. Copper Highlights: Access track and drill pad preparation is well underway at the Copperhead porphyry project  in preparation for diamond drilling. The project has not been subjected to drilling for nearly 50 years and Rockfire is redeveloping the original access tracks used for historical drilling. The commencement date for drilling is determined by the completion of the access tracks. The drilling supervisor is arriving on site next week to assess logistics, water availability and to check rig access. The drill rig is track-mounted, making access easier and resulting in smaller drill pads being required. Several  kilometres from the actual drilling site, Rockfire geologists are observing weathered sulphides in fractures and veins within the intrusions as the access track progresses up the ridge towards the drill sites. A landowner access agreement , is being negotiated at the Copper Dome porphyry project  in preparation for diamond drilling. Gold Highlights: A high-definition gravity survey is in progress at the Plateau gold deposit , part of the Lighthouse tenement. This survey is designed to detect concentrations of sulphides at depth, beneath the 1.4m tonnes @ 1.20 g/t Au already discovered in the top 100 m from surface at Plateau. Approximately 70% of this survey is complete. Extension soil sampling has been completed at the Bell Rock gold prospect, which also lies within the Lighthouse tenement and is 3.5 km southeast of Plateau. Soil samples from Bell Rock have returned high gold-in-soil values up to 0.4 g/t Au. The highest silver value in the soils is 2.3 g/t Ag and maximum copper value is 466 ppm Cu. These results outline a second, coherent trend, with dimensions of 100 m wide and +350 m long and open along strike.

 

Shield Therapeutics 58p  £125m (LON:STX)

The commercial stage, pharmaceutical company with a focus on addressing iron deficiency with its lead product Feraccru®/ Accrufer® (ferric maltol), confirms that, in line with prior guidance, it will launch Accrufer® in the US on July 1, 2021. Launch stocks of Accrufer® are currently being distributed through the wholesaler channels and will be available to doctors and other prescribers in all parts of the US by July 1, 2021.  A sales force including 30 sales representatives has been recruited and trained and will be starting to contact key prescribers during next week.

 

Tristel 610p  £287m (LON:TSTL)

The manufacturer of infection prevention products, announces that it has received three significant regulatory approvals.  Tristel received its first approval from the US EPA for its foam-based disinfectant for surfaces in April 2018. We successfully enhanced the performance claims of the product with a second approval in January 2019 and then registered the product in three States before curtailing the nationwide registration programme until a third submission could be made to bolster further the competitive positioning of the product. This submission was made in October 2020 and Tristel has now received the third approval for Jet.  Tristel Duo OPH has been approved by Health Canada as a class 2 medical device and is included in Health Canada’s Medical Device License Listing. Tristel Duo ULT has now been approved as a high-level disinfectant for ultrasound devices, and with Trio will be sold throughout South Korea by HP&C Ltd., Tristel’s distributor since 2013.

 

Verditek  2.50p  £8.4m (LON:VDTK)

The international green technology company that develops, manufactures and sells lightweight solar panels, updated the market on developments at the Company’s factory in Lainate, near Milan in Italy. The Company has been subject to a theft from its facility at Lainate. The Company has conducted a physical stock check which indicates a shortfall against book stock of approximately £300k. The local police have been informed and have commenced a criminal case. Further updates will be provided to the market as appropriate.

 

Zephyr Energy 5.45p  £66.7m (LON:ZPHR)

The Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, provides an update on its project in the Paradox Basin, Utah, U.S.A where the Company is preparing to spud the State 16-2LN-CC appraisal well.  The well will seek to target the Company’s first production on the Paradox project, and it is expected that drilling operations will commence in July as previously forecast.  The Company has received all final approvals and permits required to proceed with the drilling of the well. These approvals include surface rights and rights to drill from the Utah School and Institutional Trust Lands Administration, approvals from the Bureau of Land Management, and Application to Drill approval from the Utah Division of Oil, Gas and Mining.  In addition, the Company has received all necessary consents from its joint-venture partner on the Paradox project. With all approvals and permits now in place, the Company is working to finalise the project contracts needed to enable the Company to meet its proposed timeline of a July spud date. 

 

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