Small Cap Wrap – 1Spatial, Brandshield, BWA Group and more…


13 July 2021


*A corporate client of Hybridan LLP

Joiners: Seraphine Group, has started trading on the Premium Segment on the Main Market. Seraphine, and together with its subsidiaries, is an international digitally-led maternity and nursing wear brand. Offer price 295p. GBP150.2m Mkt Cap. Gross proceeds of approximately GBP61m, equating to a total offer size of approximately GBP75.5m.

Leavers: Immunodiagnostic Holdings has left AIM following a cash offer.

What’s cooking in the IPO kitchen?

South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

GENinCode to join AIM, a UK-incorporated company engaged in the risk assessment, prediction and prevention of cardiovascular disease (CVD), the leading cause of death worldwide accounting for approximately 18m deaths annually. Due 22 July. Offer TBA

Zenova to join AIM. The Company, is the holder of intellectual property to underpin a suite of fire safety and temperature management products and technology applicable to industrial, commercial and residential markets. Capital to be raised on Admission: GBP4.5m. Anticipated market capitalisation: GBP17.74m. Due 22 July.

Microlise to join AIM. Microlise is a leading provider of transport management technology solutions, delivering a globally enabled SaaS platform that digitises the business processes of enterprise organisations running highly complex logistics operations. As at 31 December 2020, the Group had over 400 enterprise customers and over 500,000 vehicle subscriptions. Due Mid July. Offer TBA.

Lords Group Trading to join AIM. Lords Group Trading PLC is a consolidator of specialist merchant businesses across the Southeast and Midlands, adding value to the supply of building materials through product expertise and next day delivery. GBP30m primary, GBP22m shareholder sale, Mkt Cap GBP150m. Due 20 July.

LendInvest to join AIM. LendInvest PLC is the ultimate holding company of LendInvest Secured Income plc, which has debt securities admitted to the Official List of the Financial Conduct Authority and are admitted to trading on the Main Market for listed securities of London Stock Exchange plc. The Offer will raise primary gross proceeds of GBP40m which will be used to invest in LendInvest’s continued growth, through accelerating its technology roadmap and strategically expanding into new property finance product areas. Due 14 July.

Bridgepoint Group to float on the Premium Segment of the Main Market. Bridgepoint is the leader in middle market investing, with a global reach that leverages its strong pan-European footprint and Bridgepoint’s ability to deploy meaningful amounts of client capital across several well established strategies. Raising GBP300m. Timing TBA.

HydrogenOne Capital Growth to IPO on the Premium Segment of the Main Market. HGEN is targeting a raise of GBP250m. First London listed investment fund dedicated to clean hydrogen. Due by the end of July.

Forward Partners Group to join AIM. The Group has made 65 equity investments in early stage, high growth British companies, to build a portfolio that has a net asset value of GBP103.0m as of 31 March 2021. Offer TBA. Due mid July.

Bradda Head Holdings to join AIM. Bradda Head, previously called Life Science Developments Limited and before that Copper Development Corporation, is a delisted company previously quoted on AIM. In January 2018 Bradda Head acquired Bradda Head Limited, a lithium focused exploration company established to develop a portfolio of USA based lithium projects. Raising GBP6.2m. Mkt Cap GBP16.1m. Due 19 July.

Literacy Capital PLC, announces its intention to seek admission of its ordinary shares of GBP0.001 to trading on the Specialist Fund Segment of the Main Market. The Company was created in September 2017 as a permanent capital vehicle to allow longer term decision making and with the intention to generate substantial investment returns. As at 31 March 2021, the Company’s unaudited Net Asset Value is approximately GBP96.4m. Literacy Capital Asset Management LLP is the Company’s investment manager.

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 results of the offer in connection with the IPO to the Premium Segment of the Main Market. Raised GBP178.4m. 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 GBP70m of value relating to the Retained Assets could be acquired by the Company. Unconditional dealings due 14 July.

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 GBP125m 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 GBP0.01 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 GBP35m. Anticipated market cap TBC. Admission date early July.

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.

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. GBP5m to progress its assets. 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 GBP1.00 per Ordinary Share. Expected market capitalisation following the completion of the acquisition of Seed Assets of GBP200m. Due 16 July.

Banquet Buffet

1Spatial 40.50p GBP44.7m (LON:SPA)

The specialist in Location Master Data Management (LMDM) software and solutions, announced an upgrade to its patented rules engine, 1Integrate, which now includes added support for 3D data. In response to growing customer interest in 3D data, 1Integrate 3.0 now supports full 3D data in its data stores, rules and actions. This enhanced capability, available via an additional licence, will enable 1Spatial customers to manage more accurately aspects such as sunlight availability, noise propagation, building heat loss, solar panel capacity or building occupancy. These are typical requirements for facilities management, smart cities or infrastructure management sectors. 1Integrate’s rules engine is a unique no-code capability that provides high performance validation and enhancement of data. 3D data can often be 10 times the size of 2D data and so 1Integrate’s secure and scalable performance enables national-level automated validation, creation, fixing and merging of 2D and 3D data together.

Brandshield 17.62p GBP20.8m (LON:BRSD)

The provider of cybersecurity solutions from brand protection to online threat hunting has completed a contract with the merchandising company of a celebrity franchise. BrandShield has been selected by the customer to deal with the online abuse of its brand and sales of counterfeit merchandise related to the celebrity, which are performed through copyright and trademark infringements and impersonation. The customer will use BrandShield’s capabilities in detecting brand abuse across standalone websites, eCommerce marketplaces and social media networks. BrandShield is seeing an increased demand for online brand protection and online threat hunting from celebrities, social media influencers, content creators and artists. This is believed to be partially connected to the increasing influence of social networks as well as the increasing prevalence of ‘Gated’ social networks.

BWA Group 0.65p GBP1.9m (AQSE:BWAP)

Update on its recent surface sampling programme at its 90% owned Dehane rutile sands project located in western Cameroon. BWA currently has two heavy mineral sands (HMS) licences in Cameroon, both of which are at an early stage of exploration. The Dehane Licence is 132 km2 comprising part of the prospective Nyong river system, located 166 km to the southwest of Yaounde, and 70km from the deep seaport and industrial zone of Kribi and the Nkoteng Licence (“Nkoteng” or the (Nkoteng Project) with area 497 km2, comprising part of the prospective Sanaga river system and located 60 km to the north of Yaounde. The sampling programme comprised 11 hand excavated exploration pits and 29 auger holes for a total of 139.84 m and 171 primary samples. The first pass reconnaissance programme targeted the entire available length of the Nyong river system within the BWA licence at approximately 2.5 km spacing in the north and opening to 3.5 km spacing in the south and has identified an area of alluvial HMS mineralisation related to the extensive river system and associated floodplains. Results confirm the area has anomalous titanium (Rutile-Ilmenite), zirconium (Zircon) and aluminium (Kyanite) with samples reporting up to 2.61% TiO2, 29.0% Al2O3 and 0.26% Zr, present within basal sands and gravels, and overlying clays.

DP Poland 8p GBP46.6m (LON:DPP)

DP Poland, the operator of Domino’s pizza stores and restaurants across Poland, announces a trading update for the month of June 2021. Further to the unaudited trading update for the five month period to 31 May 2021 announced on 18 June 2021, the Group are providing an update for month of June 2021 being the first full month of trading post certain COVID-19 restrictions being lifted on dine in restaurants in Poland. Average daily dine-in sales for the period 18 May to 30 June 2021 have increased by 94% to PLN 122.9k in comparison to the lockdown period 1 May to 17 May 2021 of PLN 63.3k. Dine-in business increased by 25% in comparison to June 2020 but still lower by 24% in comparison to June 2019 (pre COVID market). Like-for-like (LFL) System sales for June 2021 is 5% higher in comparison to June 2020 and 2% lower compared to June 2019. The IT conversion is now complete and the average order receipt in the enlarged Group has increased in June (in comparison to May) by 10%.

Live Company Group 4.90p GBP7.2m (LON:LVCG)

LVCG announced, further to the release dated 3 December 2020 where the Company announced the right to sell sponsorship and the management for the Formula E Motor race in Cape Town, as expected, the FiA and Formula E have ratified the 2021/2022 calendar to include Cape Town as the fourth race in the series. The Company reminds investors that this is a multi-year contract (5 years plus option for another five years) and through its ownership of E-Movement Holdings Limited is entitled to a management fee for the staging of the race as well as having the exclusive sponsorship rights. The final details of the race are in the process of being confirmed but it is thought that the potential revenue and profile uplift the Formula E race brings to the company will be significant.

Proton Motor Power 52p GBP402.4m (LON:PPS)

Europe’s leading designer, developer and producer of fuel cells and electric hybrid systems with a zero-carbon footprint has received a fifth order from GKN Powder Metallurgy (GKN PM) for an additional PM Module S8 designed for the autonomous provision of energy and heat. GKN PM is part of GKN, the Aerospace, Automotive and Powder Metallurgy international business controlled by Melrose Industries PLC. As for previous orders from GKN PM, the Proton Motor system will be deployed to supply self-sufficient clean power and heat in a residential setting from hydrogen generated from renewable sources. Dr. Nahab, CEO of Proton, commented: “We are delighted to continue to support GKN PM in their drive to demonstrate the use of hydrogen as a means of storing energy produced from renewable resources and look forward to expanding our relationship to include training and services to support GKN PM’s international sales.”

Rogue Baron 6.30p GBP5.4m (AQSE:SHNJ)

The company in the premium spirits sector, announced its original bar, Bin 1301, once again saw record sales in June. The Bar produced circa USD 95,000 in unaudited sales over the month. This total was nearly 19% higher than the Bar’s previous record high, March of this year, and roughly 32% higher than any month ever before Covid. The record sales for the month were achieved with eleven days still under Covid restrictions. On June 11th the Washington DC government lifted all of its Covid restrictions. The Bar is now operating restriction free, but still has some of its seating limitations in place.

Star Phoenix 1.85p GBP2.8m (LON:STA)

The Company focused on growth through attractive opportunities, has signed a non-binding agreement with a national university in Australia, Curtin University ranked in the top one per cent of universities worldwide in the Academic Ranking of World Universities (ARWU, 2020) to jointly explore, appraise and develop natural Hydrogen (H2) opportunities in Western Australia. At this stage the term sheet is non-binding, subject to various approvals, including the preparation of documentation and negotiations may be discontinued at any time. Accordingly, there can be no guarantee that this arrangement will progress and a further update will be provided in due course if this arrangement is formalised. Some of the proposed terms of the arrangement include: The intention to develop a clean, decarbonated energy play; H2 as the most abundant element has the potential to become one of the future sources of clean energy; If progressed, a collaboration agreement with a national university could provide access to qualified researchers to undertake the work programme in conjunction with the Company; Potential two-year work programme (the intention is this will be funded by the Company) aimed at establishing production potential; All intellectual property discovered during the project will be owned by the Company; and the parties are working on executing binding agreements.

Symphony Environmental Technologies* 19.25p GBP34m (LON:SYM)

Global specialists in technologies that make plastic and rubber products “smarter, safer and sustainable”, announced a trading update for the six months ended 30 June 2021. Group revenue of GBP4.9m (H1-2020: GBP4.8m) but on constant-currency basis, would have shown a 13% increase to GBP5.4m. Continued investment in Symphony’s sales team, and new Head of Innovation appointed to better manage a strong and growing pipeline of commercial opportunities. Increased budgeted short-term, one-off professional fees including legal, communication, advocacy and external specialist technical costs, alongside non-budgeted increases in distribution and shipping costs. Expected operating loss of approximately GBP0.5m (H1-2020: profit GBP0.04m). Net cash and cash equivalents totalled GBP0.6m as at 30 June 2021 (31 December 2020: GBP0.5m). Board continues to expect that results for the year ending 31 December 2021 will be in line with market expectations. D2p: FDA approved technology updates expected shortly. D2p: Substantial progress in many product areas, strong pipeline progression. New Head of Innovation to lead continued product development. D2w: EU action ongoing, Symphony has replied to EU defences , which did not reveal anything unexpected. Several patent applications filed.

Xtract Resources 4.10p GBP34.7m (LON:XTR)

Results of a MIMDAS IP geophysical survey at the Footrot prospect on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt of New South Wales, Australia. A MIMDAS IP geophysical survey has just been completed across the Footrot prospect, 7km southeast of Racecourse, indicating a large chargeability anomaly extending for over 1km on a similar N-NW trend to Racecourse. Such chargeability anomalies at Racecourse are related to strongly developed pyrrhotite-pyrite mineralisation with associated copper. The target occurs within an area of historic copper soil anomalism and altered porphyritic intrusives which could have similarities to the Racecourse deposit setting. The data will be fully reviewed with the aim of siting a reconnaissance drill hole to test the target as part of the Phase Two drilling programme at Bushranger.

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