Small Cap Feast

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

25 Nov 2020

*A corporate client of Hybridan LLP

Dish of the day

Kistos (AIM:KIST) is a newly-incorporated closed-ended investment company, established with the objective of creating value for its investors through acquisition and management of companies or businesses in the energy sector. Raising GBP31,7m. Mkt Cap GBP40.2m.

Off the menu

No leavers today

What’s cooking in the IPO kitchen?

Schroder BSC Social Impact Trust plc targeting a GBP100m raise. The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Due 22 Dec. Official List (premium)

Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test. Offer TBC. Due early Dec.

Auctus Growth Plc (LON:AUCT) – Reverse acquisition of HeiQ Materials AG. GBP20m placing for the enlarged group plus further secondary placing of GBP40m for selling shareholders. HeiQ creates technologies that add functionality, comfort, hygiene and sustainability to existing apparel, home textiles, technical textiles, medical textiles and devices and functional consumer products. It is anticipated that the funds raised will be used to strengthen the Enlarged Group’s regulatory portfolio, enhance its direct to consumer marketing and build brand equity, expand its geographical footprint, expand its sales channels, upscale the product HeiQ GrapheneX and build a medical business unit in light of the robust growth that HeiQ Viroblock has experienced due to the COVID-19 global pandemic. Anticipated mkt cap GBP141 million. Due 7 Dec. Main Mkt (Standard)

Conduit Holdings is a newly established reinsurance underwriting business focusing on producing strong risk adjusted returns from a diversified and focused business plan. The business has been formed to capitalise on what the Company’s founders, Neil Eckert and Trevor Carvey believe to be an exceptional market opportunity. Raising $1.1bn. Due December

Helium One Global to join AIM. The Company, through its Tanzanian subsidiaries, holds a 100% interest in 18 licences (the Priority Licences) covering an area of 4,512km2 with an Unrisked Prospective Helium Resource (2U) of 138Bcf (SRK 2019). The Company has spent US$8.25m on exploration, assessment and related activity to date and is now drill ready. Capital to be raised on Admission: GBP6million. Anticipated market capitalisation on Admission GBP14.1 million (at the issue price of 2.84p). Due 4 Dec

Downing Renewables & Infrastructure Trust intends to raise up to GBP200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December

Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec

VH Global Sustainable Energy Opportunities plc, a closed-ended investment company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Financial Conduct Authority and Main Market of the London Stock Exchange. Due by Early Feb 2021

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Due December

Schroders British Opportunities Trust is seeking to raise up to GBP250 million on the premium segment of the Official List . The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. GBP50 million to GBP2 billion equity value range with sustainable business models at attractive valuations. Due 1 December.

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem). FY20 gross profit of GBP79.2m (+24.5% against FY19) and adjusted operating profit of GBP31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at GBP179m, announced its intention to raise up to GBP62.5m. Mailbox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). Due November.

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc

Kibo Energy PLC (LON:KIBO), the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times. Targeted for Q4 2020.

Banquet Buffet

Crossword Cybersecurity* 279p GBP14.3m (AIM:CCS)

The technology commercialisation company focused solely on cyber security and risk management, today announced that The IASME Consortium Limited, the UK Government’s National Cyber Security Centre’s Cyber Essentials Partner, has selected Crossword’s Rizikon Assurance as the core platform to support a new Internet of Things (IoT) device security certification programme. The certification programme is a new scheme designed to give confidence to consumers and businesses that IoT devices have attained a minimum accepted level of security.

Richland Resources 3p GBP33.3m (AIM:RLD)

Completion of its acquisition of Global Asset Resources Ltd (GAR) which, via its wholly owned US subsidiary, holds a 51 per cent. interest in and operatorship of four gold exploration projects (the GAR Projects) in North and South Carolina in the United States. The Acquisition constituted a reverse takeover of the Company, pursuant to the AIM Rules. GBP3.3m raised at 2.75p.

. The GAR Projects are situated in the highly prospective Carolina Super Terrane, which has seen significant historic gold production yet with limited modern exploration; . The region is also host to a number of multi-million-ounce mines with similar geology to the GAR Projects, operated by third party majors; . The Carolinas represent a developed and stable jurisdiction, with modern local infrastructure and ready access to operational resources;

. The strong prevailing gold market environment makes the potential of the GAR Projects particularly attractive; . Excellent Board and management team with significant mining and, in particular, gold mining experience; and Strong local joint venture partner in Uwharrie Resources Inc., which has significant local knowledge and expertise and, in particular, knowledge relating to the local geology and GAR Project areas.

CAP-XX 5.65p GBP25m (AIM:CPX)

AGM Statement from the specialist in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. ” I am very pleased to be able to report to shareholders that, following the successful installation of the former Murata production lines at our newly constructed headquarters facility at Seven Hills, Sydney, we are now in the process of manufacturing product for first product shipment to customers next month – December. We continue to receive strong levels of enquiries for our new DMF, DMT and DMH lines and the level of our orderbook gives us confidence for the outlook for the coming calendar year despite the challenging economic backdrop to world markets.”

“We are also pleased to report that since the publication of our recent results just 3 weeks ago our order book has grown by over 10%. In addition, we have made further progress in the pursuit of our various licencing and patent infringement cases. In closing I would like to thank our shareholders for their overall support and especially for supporting the transaction late last year to fund the Murata supercapacitor acquisition.”

TMT Investments* 6.05p GBP176.6m (AIM:TMT)

As announced on 12 November 2020, following the agreed disposal of the Company’s equity interest in Pipedrive Inc., TMT expects the receipt of approximately US$41 million by the end of 2020. TMT notes that the size of the Company’s current pipeline of new proposed investments which, if approved by TMT’s formal investment committee, may be ready to close prior to TMT’s receipt of the Consideration, exceeds the size of the Company’s current cash reserves. As the Company does not want to slow down its investing activities and potentially miss attractive investment opportunities, the Company has entered into a loan agreement with Macmillan Trading Company Limited, for a loan of up to US$5.0 million. The Loan, which is unsecured and incurs no interest or other fees and is repayable any time before 31 December 2021, will allow the Company to continue to make investments prior to the Consideration being received. Macmillan is owned by German Kaplun, Artemii Iniutin and Alexander Morgulchik, who are all part of the Company’s senior management team. Mr Kaplun and Mr Morgulchik are also substantial shareholders..

Further the Board has approved the extension of the Company’s existing Bonus Plan until 31 December 2024, subject to the following material amendments: The Company’s current bonus year (which was due to end on 30 June 2021) will now run from 1 July 2020 to 31 December 2020; The Company’s bonus year will then run from 1 January through to 31 December for each of 2021, 2022, 2023 and 2024; and from 1 January 2021, the annual Bonus Pool will be increased from 7.5% to 10% of the Net Increase in the Company’s adjusted NAV.

Calnex Solutions 86.5p GBP75.7m (LON:CLX)

Maiden Interims (HY Sep 20) from the provider of test and measurement solutions for the global telecommunications sector . Revenue up 37% to GBP7.7m. Adjusted PBT up 90% to GBP2.4m. . Favourable telecoms market conditions continue into H2 FY21.

. The exponential growth of data creation and migration of industries to cloud computing, along with the long-term transition of the telecoms industry to 5G, continue to drive a need for new test instrumentation, presenting the Company with significant, long-term growth opportunities.

. With the strong growth in revenue from FY20 continuing throughout FY21 to date, and with order intake strong, the Board anticipates that the Company’s financial performance for FY21 will be ahead of current market expectations and that revenue and adjusted profit before tax in the second half of the year will be broadly in line with H1 FY21.

Alba Mineral Resources 0.43p GBP25.2m (AIM:ALBA)

GBP1.2m raise at 0.375p. 1 for 2 warrants issued exercisable at 0.75p. “We will put this funding to very good use as we look to push forward with our ambitious plans both at home, where our Welsh gold assets have recently been strengthened by the addition of the Gwynfynydd Gold Mine, and abroad where our high-grade Thule Black Sands Ilmenite project is an integral part of the emerging world-class ilmenite province of north-west Greenland and where we believe our high-grade Amitsoq Graphite project in southern Greenland is very well placed to benefit from the exponential growth in the electric vehicle sector in the coming years.”

“In the near term, we expect to be in a position to release the structural interpretation of our underground drilling programme at Clogau-St David’s this side of Christmas, together with preliminary structural interpretation from the current surface drilling programme which we also expect to have concluded before Christmas.”

Surgical Innovations 1.45p GBP13.5m (AIM:SUN)

The designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery, announces its collaboration with the Centre for Sustainable Healthcare (CSH) to support wider efforts in the UK and globally to reduce the environmental impact of plastic waste in surgery.

This new collaboration with CSH will enable the validation of the Company’s environmental messaging and demonstrate the quantifiable cost and environmental savings from a ‘greener’ operating room. This data will then help develop information and training for NHS hospitals and staff as they seek to fulfil obligations on sustainability in the NHS, and follows the publication in October 2020 of the NHS ‘Net Zero’ objective, described more fully in the link below. Surgical Innovations’ range of ‘Resposable(TM)’ surgical instruments is designed to provide class leading quality and functionality, whilst reducing plastic waste by approximately 70% compared to that generated from commonly used competing products. In addition, CSH’s global network will help direct the Company’s efforts to promote the Green credentials of its “Resposable(TM) product portfolio to existing and new international partners.

Sigma Capital Group 130.5p GBP117m (AIM:SGM)

The residential development and urban regeneration specialist, announced the appointment of Niamh Waldron as ESG Manager.

Niamh will serve as the Company’s primary point of contact for all ESG matters, and, working with the Board, will lead the ongoing formulation of the Company’s policy and strategy in this area. Her primary focus will be on the continuing formalisation, expansion and improvement of the Company’s existing ESG activities. Her role will also encompass all areas of ESG activity relating to The PRS REIT plc.

Niamh is an education professional with over 30 years’ experience in management and leadership roles. She has high-level experience in policy-setting, review and development, with particular expertise in engaging with national reporting frameworks and regulatory bodies.

SourceBio Intl 181.5p GBP134.64m (AIM:SB)

Update on its testing contracts, its capacity for COVID-19 antigen RT-PCR testing services and an update on trading for its current financial year, ending 31 December 2020.

Renewal of testing services contract with Spire Healthcare Limited . Over 330,000 COVID-19 tests provided under existing Department of Health and Social Care contract. Public Health England’s National Microbiology Framework now expected to be awarded to successful applicants from February 2021

Application for National Microbiology Framework has been submitted on the basis of building testing volume capacity above management’s earlier expectation of 10,500 tests per day. Award of NHS England framework for cancer testing services. The Group now expects to report revenue of approximately GBP50.0m (2019: GBP21.2m) and EBITDA of approximately GBP14.0m (2019: GBP3.0m) for the year ending 31 December 2020

AEX Group 44p GBP36.3m (AIM:AEXG)

Update to its 2020 exploration drilling campaign at its Nalunaq property in South Greenland. The results are complementary to the drilling results reported in a previous press release on October 21, 2020.

. Further results from the Valley Block infill drilling programme include 52.4 g/t over 0.55 meters (AEX2008) and 5.9 g/t over 0.5 meters (AEX2009).

. Visible Gold observed in AEX2009.

. These results support the interpretation that Valley Block is a high-grade domain with a similar footprint to South Block.

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