Small Cap Wrap – Access Intelligence, AMTE Power, Cerillion and more…

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4 October 2021


@HybridanLLP




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Gamesys has left the Main Market (Premium) following a takeover.




What’s cooking in the IPO kitchen?


M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On admission, the company plans to acquire a portfolio of UK retail warehouses worth GBP120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.


Castlenau Group to join the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of GBP170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of GBP25m in the Initial Placing. Due 18 Oct.


Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct


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.


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. The company last said Sept 13th that it expected to list end of September which has now passed.


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.


Fruugo.com 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.


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. It pushed back its AIM float on 30th September from end September to late October. It last night said that the amount to be raised is still yet to be confirmed.


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


Access Intelligence 150p GBP191m (LON:ACC)


The technology innovator delivering Software-as-a-Service solutions for the communications and marketing industries announced the appointment of Lisa Gilbert as non-executive director with immediate effect. Lisa has significant experience in the technology sector having worked for IBM for 25 years, holding a variety of roles globally. She is currently VP of Brand Sponsorship & Content at Kyndra, an IBM Company after moving from being General Manager of the IBM Marketing Services Center. Lisa’s recent roles within IBM have ranged from VP Marketing of IBM Growth Markets based in Shanghai, China where she led 300 staff across China, APAC, Latin America and EMEA. Other roles include Chief Marketing Officer at IBM Japan, Chief Marketing and Communications Officer at IBM UK and Ireland and Vice President, Marketing Transformation at IBM North America. Lisa Gilbert further enhances the strength and expertise on the Board of the Company following the appointments as non-executive directors of Sarah Vawda, corporate development director for Johnson Matthey, in March 2021 and Katie Puris, Head of Global Brand & Creative at TikTok, in June 2021.




AMTE Power (AIM:AMTE) 204.5p GBP70.9m (LON:AMTE)


The developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, announced a joint venture agreement with InfraNomics Technologies Pty Ltd and advanced plans to build a 200,000 cell micro production line in Australia’s Lithium Valley. The 50:50 joint venture will operate through Bardan Cells Ltd and be based in Kwinana, Western Australia. InfraNomics, which focuses on energy technologies and services, is responsible for capital fund raising, providing local expertise, establishing local sovereign supply chains and supporting the development of Bardan. AMTE Power will provide Bardan with the licenced technology and manufacturing expertise to build cells for use in energy storage systems. In 2018, AMTE and InfraNomics, recognised the commercial opportunity to become a leader in Australia’s battery cell manufacturing sector and began a collaboration which has resulted in the formalisation of the joint venture being announced today. The joint venture marks the transition from feasibility study and detailed business plan to the construction of a micro production line worldwide, for use in long term Net Zero Carbon power storage solutions.




Cerillion 835p GBP246m (LON:CER)


The billing, charging and customer relationship management software solutions provider, updated on trading for the financial year ended 30 September 2021. Cerillion entered the second half of the financial year with a record level of new orders and a record back order book. New orders included two of the largest contracts the Company has secured to date. These and other implementations are progressing well. Reflecting continuing strong trading, revenue for the financial year is expected to be slightly ahead of current consensus market forecasts. However, as a result of a higher proportion of term licence sales than anticipated, adjusted profit before tax is expected to be significantly higher than current consensus market forecasts. Net cash at 30 September 2021 is also anticipated to close very strongly, ahead of projections, at approximately GBP13m (30 September 2020: GBP7.7m). The Company has a strong pipeline of new business opportunities from both existing and prospective new customers and remains well-positioned as it enters the new financial year. The opening of a new office in Bulgaria in September 2021 will support the Company’s continuing growth and is expected to expand quickly to become a new strategic base.




Fletcher King (AIM:FLK) 51.5p GBP4.7m (LON:FLK)


Conditional placing at a price of 52.5 pence per share to raise GBP547,276 before expenses. Mr Elliott Bernerd would be the ultimate beneficial owner of the Placing Shares, which would be subscribed for by CM Strategic 613 Limited (a wholly-owned special purpose vehicle incorporated by Elliott Bernerd). Elliott Bernerd is the founder of Chelsfield, a substantial and long established privately held international property development and investment group. At the request of Elliott Bernerd, the Board of Fletcher King has, subject to regulatory due diligence and the completion of the acquisition by CM Strategic 613 Limited of the Sale Shares and subscription for the Placing Shares as referred to above, invited David Gibbs and Matthew Wise to join the Board of Directors, as non-executive directors. This would increase the number of Directors from six to eight. Matthew Wise was, until April 2021, Chief Operating Officer and Head of Asset Management at Chelsfield Group. Since April 2021, he has been advising Elliott Bernerd’s Private Office on a number of domestic and international transactions. Prior to joining Chelsfield Group in 2011, Mr Wise worked for a number of private and publicly quoted property companies, working on property throughout Western Europe and the UK. David Gibbs was the Managing Partner of Sunrise Brokers, an inter dealer brokerage which employed 200 people in London, New York and Hong Kong, from 2005 to 2017. It was sold to BGC Cantor Fitzgerald in 2016. He is currently a director of Envy Post Production Limited, Chelsfield Capital LLP and Chelsfield Retech Investments Limited.




Insig AI 57p GBP56.2m (LON:INSG)


Insig AI, the technology company that provides machine learning solutions for asset managers announced the second major release of its flagship software, Insig Portfolio. Insig Portfolio is a user-friendly web application which provides portfolio managers of all sizes and strategies with additional data driven insights to aid their investment decisions. Insig Portfolio was developed to alleviate the frustration of asset managers currently working with error-prone spreadsheets, and to remove the time-consuming effort of building data science applications in-house. To address these issues, Insig Portfolio has a framework-based architecture that is easily tailored to a portfolio manager’s investment thesis and preferred sources of data. At the same time, Insig Portfolio’s analytics are underpinned by a robust data management process, freeing analysts and portfolio managers from the need to do time consuming manual data updates. Furthermore, Insig Portfolio includes functionality to explore financial data, ESG metrics, identify important financial features, construct portfolios with machine learning or screening tools, measure and optimise risk exposures, and attribute portfolio performance to regions, sectors and other idiosyncratic characteristics.




Jade Road Investments* 19.50p GBP22.5m (LON:JADE)


Jade Road Investments Limited, the London-quoted, pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns shared its ESG (Environmental Social and Governance) Policy. The Policy is available on the Company’s website: https://jaderoadinvestments.com/responsible-investing. Harmony Capital, Jade Road’s Investment Manager, is a reporting member of the UN PRI (United Nations Principles for Responsible Investment) and its investment process has been redesigned to comply with best-in-class ESG focussed private investment practices. John Croft, Chairman of Jade Road Investments Limited, commented: The Company believes that Environmental, Social, and Principles should be an integral part of the Jade Road’s Investment Process. Underpinning this belief is the principle that through providing capital to assist companies in their growth, Jade Road can not only target attractive returns for stakeholders but be a steward of betterment in the ecosystems and communities within which these portfolio companies operate. Over the coming weeks, Jade Road will also be releasing content on its social media channels around the opportunities for ESG investing in Asia.




Mirriad Advertising 27.5p GBP76.8m (LON:MIRI)


Mirriad, the leading in-content advertising company, today announced it is working with Magnite’s SpringServe, the leading ad serving platform for over-the-top (OTT) and connected TV (CTV), to bring scale and automation to the in-content advertising format via programmatic ad campaigns. Mirriad’s patented, AI and computer vision technology dynamically ‘inserts’ adverts into empty spaces in films and television shows streamed online. The collaboration with SpringServe enables Mirriad to programmatically activate more valuable ad inventory, offering brands digital integrations into a broader range of video content. This simplified in-content approach improves the overall viewer experience by limiting commercial interruptions and provides advertisers with dramatically increased reach and impact. “Working with SpringServe is a decisive step in being able to buy in-content inventory programmatically,” said Stephan Beringer, CEO, Mirriad. “This will unleash new opportunities for publishers and content owners with an ad format that is created in the content itself, thus not interrupting peoples’ viewing experiences. Research continues to prove that the Mirriad proposition is a transformative advertising solution and we look forward to the results we can achieve with SpringServe.”




Oriole Resources 0.44p GBP6.9m (LON:ORR)


Update on its interest in Thani Stratex Djibouti Limited (TSD), where African Minerals Exploration & Development Fund III (‘AMED Fund III’) is managing and funding a multi-million-dollar exploration programme across a portfolio of low-sulphidation epithermal gold projects in the East African Rift Valley. The first and second tranches of the funding, totalling US$5m, have been used to undertake drilling programmes at the Pandora, Assaleyta and Hesdaba projects. At Assaleyta, results for a further two diamond drill holes from TSD’s Phase 2 exploration programme continue to demonstrate the significant potential at the project, with a best intersection of 38.10 metres (‘m’) grading 2.21 grammes per tonne (‘g/t’) gold (‘Au’) from 126.60m downhole including 17.37m grading 3.59 g/t Au returned from the Porcupine Hill prospect. Results also received for 11 Reverse Circulation (‘RC’) holes at the project. At the Hesdaba project, located immediately to the west of Assaleyta, selective sampling of hole Hd-D-17 have returned 19.80m grading 1.18 g/t Au from 79.30m and 10.75m grading 26.27 g/t Au from 108.25m including a bonanza intersection of 1.22m grading 211.00 g/t Au. Results for a further three boreholes, drilled along an 800m strike-length of this system, are still pending. It is anticipated that all outstanding assay results will be received during October, satisfying the Tranche 2 milestones. Subject to continued positive results, the Tranche 3 budget, for a further US$2.5m, is currently being prepared ahead of infill and step-out drilling commencing in Q4-2021. Following completion of the Tranche 2 funding, TSD has concluded a preference share conversion that has seen Oriole’s interest reduced to 9.21% which the Company consequently considers no longer material to the group.




React Group 2.25p GBP11.5m (LON:REAT)


The leading specialist cleaning, hygiene and decontamination company has announced a number of recent contract wins. The largest contract has been awarded to Fidelis to provide contracted maintenance, cleaning and hygiene services within the education sector. It has a total contract value of c.GBP550k during the initial contract term of 3-years, with the option of an additional 3-year extension. The Group has also won a number of smaller to medium sized contracts in the last few weeks, five of these being in contracted maintenance cleaning and hygiene services, all on 3-year contract terms, with other contract wins securing framework agreements to provide specialist reactive cleaning in both the rail sector and housing associations.




Zoltav Resources 23p GBP32.65m (LON:ZOL)


The Russia-focused oil and gas exploration and production company, announces an update regarding the Company’s plans to commercialise the eastern fields of the Bortovoy Licence, Saratov. Project Finance Diall Alliance LLC the Company’s wholly owned Russian operating subsidiary which holds the Bortovoy Licence, has entered into two non-revolving credit facilities with PJSC Sberbank of Russia (OTC:AKSJF). The first loan represents a maximum facility amount of RUB 7.7bln with a final repayment date of 25 September 2031. The second loan represents a maximum facility amount of RUB 700m with a final repayment date of 1 January 2024. The Project represents an expansion of the activities currently carried out by Diall Alliance, the main operating company, at the two currently producing fields at West Bortovoy. The Bortovoy Licence area has nine fields with remaining gas reserves. Currently, only two fields, Zhdanovskoye and Karpenskoye have been developed. The Karpenskoye and Zhdanovskoye field reserves have been depleted by approximately 70% and 40% respectively and are expected to become uneconomical within approximately 2-3 years of further production. The Project provides for a phased commissioning of five new fields, including: Pavlovskoye, February 2022; Lipovskoye, July 2022; Nepryakhinskoye, March 2023; Mokrousovskoye, 2028; and West Lipovskoye, 2030.




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