Small Cap Wrap – Advance Energy, Alien Metals, Helios Underwriting and more…


22 September 2021


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Nucleus Financial Group has left AIM

What’s cooking in the IPO kitchen?

Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October.

Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture division, Light Science Technologies Ltd to join AIM. Due early Oct. Offer TBA.

Responsible Housing REIT to join the Main Market (Premium) raising up to GBP250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.

Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform. Offer TBA. Due 30 Sep.

Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.

Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from GBP52.1m to GBP76m with underlying EBITDA more than doubling to GBP21.8m Timing and offer TBA.

Peel Hunt (to be renamed PH Capital), a UK mid and small-cap specialist investment bank, announces its intention to seek admission of its ordinary shares to trading on AIM. Admission is expected to take place on or around 29 September. In conjunction with a placing of Ordinary Shares the Company will be conducting an intermediaries offer.

Oxford Nanopore Tech–to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation (NYSE:ORCL) whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for GBP150m of a total raise of circa GBP300m. Due early Oct. which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.

Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.

Petershill Partners, Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs (NYSE:GS) Asset Management (GSAM). The Partner-firms have US$187 bn of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA

GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources PLC (AIM:ALBA) and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: GBP5.12m. Anticipated Mkt Cap on Admission: GBP11.120m. Due late September

Responsible Housing REIT to join the Main Market (Premium) 5 October, raising up to GBP250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.

Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to GBP300m. Due on the Main Market (Premium) in October.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.

Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF, FRA:OL11) (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

Banquet Buffet

Advance Energy 3.03p GBP3.1m (LON:ADV)

Update on the Buffalo project offshore Timor-Leste ahead of the drilling of the Buffalo-10 well. Buffalo-10 well on schedule to spud in early November 2021 Shallow water depth of 30 metres, with reservoir depth between 3,200-3,300 metres. Mid case recoverable volume estimate is 34m barrels (gross, 2C contingent resource) in the Buffalo field. Buffalo-10 considered by RISC Advisory to have an 85% probability of confirming a sanctionable development project based on the minimum economic field size. Buffalo-10 to be retained as first production well in development program. Discussions underway to seek to facilitate accelerated first production. Equipment currently being mobilised for drilling

Alien Metals 0.775p GBP26.6m (LON:UFO)

Update on the Hancock Iron Ore Project in the Pilbara region of Western Australia and specifically the publication of a maiden Inferred Resource in excess of 10Mt. The initial Inferred JORC compliant resource stands at 10.4Mt @ 60.4% Fe including 7.8Mt @ 60.1% at the Sirius Extension target, 1.5Mt @ 61.2% at the Ridge E target and 1.1Mt @ 61.9% Fe at the Ridge C target. The Mineral Resource Statement (MRE) has been restricted to material that falls within an optimised open pit shell and within the tenement boundary. Low levels of deleterious elements indicating that Hancock could produce high-quality Direct Shipping Ore (DSO) product. Ridges E and C are only partially tested to date, and the Company feel they have considerable potential to define further DSO grade material.

Helios Underwriting 160p GBP109.4m (LON:HUW)

In line with its strategy of increasing underwriting capacity through acquisition, it has acquired North Breache Underwriting Limited, a limited liability member of Lloyd’s of London. The total consideration paid for North Breache was 3.9m, of which GBP3.4m was paid on completion in cash and GBP0.5m has been satisfied by the issue shares in Helios at 164 pence per share. The 2021 underwriting capacity of North Breache is GBP3.9m. North Breache participates in a spread of Lloyd’s syndicates that broadly matches the existing portfolio of Helios and this transaction enables Helios to continue to build its participations on the better syndicates at Lloyd’s. The consideration represents a discount of approximately 7.5% to the independent valuation of GBP4.2m placed on North Breache by Humphrey’s. In the year ended 31 December 2020, North Breache made a profit before tax of GBP0.1m on gross premiums written of GBP4.0m. Syndicate capacity with an estimated market value of GBP1.5m has been included in the transaction. In addition to the North Breache transaction, Helios is continuing to pursue a number of further Lloyd’s LLV acquisitions in line with its strategy. Terms have been agreed in principle and contractual documentation is being finalised for a further 21 Limited Liability Vehicles which in aggregate have capacity of GBP22.7m.

Ixico 74p GBP35.6m (LON:IXI)

The AI data analytics company delivering insights in neuroscience, announces that it has been awarded a new contract with a value of more than >$750k over 2 years for advanced neuroimaging solutions by a top 5 global Clinical Research Organization (CRO) to support its sponsor’s Phase II Alzheimer’s disease clinical trial. Conducted across 41 investigator sites within the Unites States and Europe, the clinical trial will enrol patients with Mild to Moderate Alzheimer’s Disease to evaluate the safety and efficacy of a subcutaneously administered investigational product. Following the successful completion of the CRO’s independent qualification and audit process, a Master Vendor Agreement was executed between the CRO and IXICO in the month of August. Being selected as a dedicated imaging vendor is expected to significantly enhance IXICO’s opportunity to partner with the CRO’s client portfolio.

Plant Health Care 12.1p GBP36.6m (LON:PHC)

Key milestone for the Company through a new partnership with Nutrien Ag Solutions to launch its novel Saori TM soybean seed treatment in Brazil. Saori, based on Plant Health Care’s PHC279, makes soy plants healthier, improves resistance to disease and increases yield. Brazil is the world’s largest producer of soybeans (40 m hectares forecast next season). Saori is a novel technology for Brazil soybean farmers to grow better crops more sustainably. Saori was approved for sale in January 2021 for the control of Asian soybean rust, after only 12 months of government regulatory evaluation, based on its effectiveness and sustainability profile. Saori will be made available this season by Nutrien Ag Solutions on a limited basis to leading soybean growers, with wide adoption within Brazil expected to take place during the 2022/23 season and thereafter.

Prospex Energy 3.9p GBP6.4m (LON:PXEN)

The investment company focused on European gas and power projects announced that its joint venture company Tarba Energia S.L. has fully approved the budget for well intervention work at its gas to power project at El Romeral in Southern Spain. Tarba is the operator of the plant. Upon success, the well workover has the potential to increase gas production by up to 15,000 cubic metres per day and allow the subsequent start-up of a second generator to double electrical output. Gross budget of EUR89,000 fully approved by Tarba which is in advanced stages of selecting contractors. Contract awards are expected within two weeks. Chemicals for the workover have been ordered by Tarba in anticipation of contract awards. The workover is scheduled for the week commencing 18 October 2021.

SDI Group 204p GBP203.1m (LON:SDI)

AGM trading update from the Group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing control applications. The Group has made a good start to the new financial year, modestly above its initial forecasts, and the Board remains confident that results for the full year will be delivered at least in line with market expectations. Market expectations for FY2021/2022 being Sales of GBP42.05m and Adjusted Profit Before Tax of GBP8.85m.

Urban Logistics REIT 177.5p GBP577m (LON:SHED)

Since the July equity raise of GBP109m Urban Logistics has deployed, or committed to deploy, GBP88m of this equity on 771,748 sq. ft. of logistics units in 6 ‘off market’ transactions. The blended net initial yield was 5.4% and is made up of a combination of income producing assets and forward funding commitments. Separately a further GBP15m was deployed before this equity raise, in 3 transactions for 157,516 sq. ft. of space. The Manager continues to transact on its pipeline of attractive investment opportunities and expects to deploy the remaining proceeds of the equity raise as well as draw down on available debt facilities as planned.

Xtract Resources 3.95p GBP33.4m (LON:XTR)

Geological results from drill hole BRDD-21-017 from the Phase 2 diamond drilling programme at the Racecourse Copper-Gold Deposit on the Bushranger Project, located in the Lachlan Fold Belt of New South Wales, Australia. Drill hole BRDD-21-017 was completed at a total depth of 621.60m and tested the eastern contact of the porphyry, which has been little drill tested to date, and intersected a 607m interval of visible chalcopyrite mineralisation from a shallow downhole depth of 11m. The hole passed through a 150m zone of stronger visible chalcopyrite mineralisation from 159m depth. A second, 31m wide zone of stronger visible mineralisation was intersected from a downhole depth of 479m – this second zone opens up the possibility to define further mineral resources on the eastern side of the central porphyry intrusion.

Zinc Media (AIM:ZIN) Group 60.5p GBP9.8m (LON:ZIN)

Popular factual label Red Sauce, part of Zinc Media Group, is scaling up both its London and Manchester production and development teams following confirmation of a significant volume of commissions. The company has been commissioned by Channel 5 to make 52 hours of programming – the largest volume deal ever received by a Zinc Media label. This is in addition to the 10-part series commission, announced last week, from Dave, the first time that Zinc Media Group has worked with the UKTV-owned channel. Red Sauce has been commissioned by Channel 5 to make Bargain Loving Brits in the Sun – Costa Living. This observational documentary series charts the lives of the Brits who’ve swapped the damp and grey of the UK for a new life in the UK’s most popular holiday destination, Spain. The series will be made by Red Sauce in Manchester. Red Sauce has also secured a 10-part series commission from Dave, the first time that Zinc has worked with the UKTV-owned channel. Special Ops: Crime Squad UK gives viewers a unique insight into the workings of the UK’s elite police task forces. Revenue from Red Sauce commissions announced in the last two weeks reaches an aggregate of GBP4m.

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