Today’s Market View – boohoo group, MyHealthChecked, Pelatro and more…

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29 Jan 2021

@HybridanLLP

*A corporate client of Hybridan LLP

 

Dish of the day

Reverse Takeover by London Stock Exchange Group (LSEG.L)  following the  acquisition of  Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion.
 

Off the menu

United Carpets Group has left AIM.
 

What’s cooking in the IPO kitchen?

Moonpig Group expected to join main market Feb.  The retailer of curated gifts and personalised cards is targeting less than 2.0x net debt to EBITDA as at 30 April 2021. In connection with this, the primary offer of new shares is expected to raise gross proceeds of c.£20 million.

 The Offer would be comprised of a secondary offer of existing Shares to be sold by certain existing shareholders and a primary offer of new Shares to be issued by the Company

Dr.Martens—Offer Price set at 370 pence per Share . Due 3 Feb.   Dr. Martens’ total market capitalisation at the commencement of conditional dealings on the main market of London Stock Exchange will be approximately £3.7 billion based on the Offer Price. Partial sale by existing shareholders. No new monies being raised. Total offer size of £1.295 billion 

Supreme, a leading manufacturer, supplier and brand owner of fast moving consumer products, announces the successful pricing of its initial public offering at 134 pence per share with institutional investors, to raise gross proceeds of £67.5 million. It is expected that dealings in the Shares will commence at 8.00 a.m. on 1 February 2021 on AIM  

NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine  and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority  for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA

Foresight Group , the award-winning infrastructure and private equity investment manager  to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA.

Baskerville Capital plc (to be renamed Oberon Investments Group Plc) is a boutique financial institution providing a personalised wealth management service for retail and professional clients, as well as a corporate broking arm for small and mid-cap companies. Oberon’s strategy is to progress through the organic growth of assets under administration in its wealth management division and by the acquisition of complementary businesses in the financial services sector and by creating a trusted brand for the provision of advisory and fundraising services for companies in the small and mid-cap sectors. Expected admission date 9 February 2021.

Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021.  The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada.

VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments announced it intends to launch an IPO of shares on the Official List (Premium) of the Main Market of the London Stock Exchange.  Due by Early Feb.

 

Banquet Buffet

ADM Energy* 5.25p  £6.45m (LON:ADME)

The natural resources investing company, is pleased to announce that is has extended for a further 12 months its indicative MOU to enter into a strategic alliance with Trafigura Pte Ltd, a market leader in the global commodities industry.  There are no other changes to the original MOU.

ADM and Trafigura intend to create a strategic alliance that enables the development and financing of energy projects in Africa. Under the terms of the MOU, ADM will act as the sponsor for investment opportunities in the African energy sector which will be presented to Trafigura for consideration as a trading counterparty, or financing provider.

Trafigura will be entitled to provide ADM with conditional pre-financing of up to US$100 million for the acquisition or development of Approved Projects. It is anticipated that Trafigura may subscribe for up to US$20 million in convertible loan notes in ADM as definitive agreements and project funding for Approved Projects are agreed.

 

Jade Road Investments* 25p  £28.8m (LON:JADE)

2021 Investment Outlook from company focused on providing shareholders with attractive uncorrelated, risk-adjusted returns from a diversified portfolio of pan-Asian investments .

The macroeconomic backdrop for its growth plans looks favourable, with Asian economies expected to lead the world back to growth. Last week, China reported 2.3% GDP growth for 2020, a stronger-than-expected number which means it will be the only G20 economy to post GDP growth for last year, according to the IMF’s latest World Economic Outlook.

As Asia continues to recover from the COVID-19 pandemic, intraregional travel restrictions are expected to ease thereby facilitating physical due diligence on some advanced opportunities, a critical step in the disciplined investment and risk management approach of Jade Road. 

The current investment pipeline includes a number of companies operating in high growth and very topical sectors such as Healthcare Technologies, Fintech and eCommerce. The scarcity of Institutional capital to fund growth plans of such companies puts Jade Road in a strong position to negotiate very attractive terms for new investments. The Company hopes to complete at least one new investment in the first half of 2021 and will make an appropriate announcement at that time.

 

Rockfire Resources 1.325p  £11m (LON:ROCK)

The gold and base metal exploration company announced that the Company’s 100% owned Plateau Gold Deposit, in Queensland Australia, has surpassed a JORC (2012) Mineral Resource of 200,000 ounces of gold. This represents a 515% increase in gold ounces since the Company’s maiden JORC (2012) Mineral Resource reported previously in July 2019.

David Price, Chief Executive Officer of Rockfire, commented: “This outstanding resource upgrade demonstrates the quality of the Plateau asset . I am particularly pleased that we have delineated near-surface gold, at an average grade of 1.2 g/t Au. This represents real potential for Rockfire to achieve its ambition of near-term, open cut gold production whilst the deposit continues to be expanded through further exploration.”

“This is just the beginning of Plateau and we see opportunity for more resources along strike to the east and west, as well as repetitions of the favourable geological and structural setting in the immediate vicinity of Plateau.”

 

Zephyr Energy 2.175p  £15.17m (LON:ZPHR)

The Rocky Mountain oil and gas company focused on responsible resource development, provides an update on its project in the Paradox Basin, Utah, U.S.  While the Company is still awaiting initial core analysis from the laboratory, it has shared  early observations and analysis from the open hole logs: 

·    The State 16-2 well penetrated 21 clastic reservoirs  within the Paradox Formation.     Substantial drilling gas shows were observed across 5 of the reservoirs, including the prime target Cane Creek reservoir.   Robust drilling gas shows were observed across a further 10 of the reservoirs.   Log analysis suggests hydrocarbon saturation across the bulk of these reservoirs. It is worth noting these positive initial results will require further calibration with the acquired core data.

·    These results are consistent with offset wells and suggest the presence of a hydrocarbon-filled reservoir matrix and high Total Organic Carbon  source rock intervals. These high TOC source rock intervals may also store hydrocarbons and act as another low permeability reservoir. 

·    The results provide compelling evidence for the presence of stacked continuous oil and gas plays – plays which could potentially be drained should viable natural fracture networks be identified (as has been demonstrated elsewhere in the Cane Creek Field) or should artificial hydraulic stimulation completion techniques be applied successfully.

 ·    Further evaluation is underway to calibrate the log data to the core data, in order to evaluate which of the additional zones have the volumetric potential to act as viable reservoir targets, and to determine whether hydraulic stimulation can act as a viable reservoir drainage strategy.

 

Dekel Agri-Vision 5.1p  £23.4m (LON:DKL)

The West African focused agriculture company, announced announce that, further to its announcement at 4.30 p.m. on 28 January 2021, it has successfully completed the oversubscribed Fundraising which is now closed.

The Placing, Subscription and PrimaryBid Offer has raised £3.5 million (before expenses) at an Issue Price of 5 pence per share. “The new and existing investors and Directors who have participated in the Fundraising have joined or increased their interest in the Dekel story at an exciting time.  With palm oil prices trading around US$1,000 per tonne and the Cote d’Ivoire high season imminent, the outlook for our Ayenouan palm oil project for 2021 is positive.  With operations at the cashew processing project in Tiebissou on track to commence in Q2 2021, soon we expect to have two producing projects in our portfolio which, in turn, will scale up and diversify our financial profile.”

 

Various Eateries 69.5p  £61.9m (LON:VARE)

“Various Eateries PLC, the owner, developer and operator of restaurant sites in the United Kingdom, which was established to take advantage of the disruption caused by the pandemic, announces an update on recent activity, in light of the ongoing third national lockdown.

The Group has minimised its cash burn during the closure period and has received an interim payment under its Business Interruption Insurance policy of £2.5 million. Whilst this payment does not entirely  compensate for the loss of business over the period of the epidemic, it does support the Group’s overall liquidity, which remains strong. Negotiations with its insurance company regarding additional claims and the final claim period are still continuing and further updates will be provided in due course, as appropriate.

The Board deplores the damage done to our previously vibrant and thriving industry, with the attendant loss of businesses, jobs and livelihoods. However, even allowing for the likely extension of lockdown and restrictive measures, the Group’s growth strategy remains as previously communicated to investors – to capitalise on the opportunities emerging from the impact of the pandemic and associated restrictions. Management continues to expect the availability of prime sites and high-quality staff to provide a backdrop highly conducive to successful expansion.

In line with this strategy, while the business has been closed management has been exploring a number of desirable sites for expansion across the UK. Given the lack of guidance as to when lockdown and other restrictions will be lifted, the Company has so far  chosen to hold off signing up to any new leases, but expects to be able to do so in the near future on terms that reflect the considerable and continuing fall in retail property values. In light of the continuing uncertainty as to when the latest lockdown may end, it is no longer possible to accurately estimate the impact on earnings and therefore the Board is withdrawing its current guidance.”

 

SmartSpace Software 130p  £36.7m (LON:SMRT)

The leading provider of ‘Integrated Space Management Software’ for smart buildings, commercial spaces and hospitality, announced that SwipedOn, its SaaS visitor management subsidiary, has been awarded the leader in the mid-market ‘Visitor Management Software’ category by G2, the world’s leading B2B software and services review platform.

 

Pelatro 38p  £14.1m (LON:PTRO)

The telecom Customer Engagement Hub software specialist announced a new contract win and to provide an update on trading. The mViva platform has been chosen by an Asian telco, which is part of a large global group, for campaign management operations. The contract is recurring in nature and includes a variety of services as well as the software product itself. Over the three-year term of the contract, revenue is expected to be between $1m and $1.2m, depending on the customer’s take up of additional services currently under discussion.

  

MyHealthChecked 2.15p  £11.13m (LON:MHC)

The consumer home-testing healthcare company, announces its intention to conduct an accelerated bookbuild to raise proceeds of approximately £3 million by way of a placing of, and subscription for, new ordinary shares of £0.001 each in the Company .

Proceeds will be used to launch the Company’s current products into the retail sector and develop a pipeline of new products, alongside a smartphone app in order to capture data. MyHealthChecked is looking to increase its headcount to support these commercial activities, more than doubling its team by December 2022 and increasing the required marketing investment to accelerate commercial growth.

 

boohoo group 337.2p  £4.2bn (LON:BOO)

The online fashion group, notes recent media commentary.  The Group confirms that it is in exclusive discussions with the Administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton (excluding HIIT) brands. These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

 

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