Small Cap Wrap – Red Rock Resources; Gfinity; Gaming Realms and more…

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2  Feb 2021

@HybridanLLP

 

*A corporate client of Hybridan LLP

 

Dish of the day

VH Global Sustainable Energy Opportunities plc, (GSEO.L) a closed-ended investment Company focused on making sustainable energy infrastructure investments has arrived  on the Official List (Premium) of the Main Market of the London Stock Exchange raising £242.6m

Moonpig Group (LON:MOON) has  joined the  main market.  The retailer of curated gifts and personalised cards is targeting less than 2.0x net debt to EBITDA as at 30 April 2021. Mkt Cap at 350p c.£1.2bn. £20m primary and £491.2 sale of existing shares.

Off the menu

McCarthy & Stone has left the main market following a takeover.

What’s cooking in the IPO kitchen?

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 

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.

 

Banquet Buffet

Red Rock Resources 1p  £9.73m (AIM:RRR)

Update in respect of Red Rock Australasia Pty Ltd (RRAL) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW).  

Key points

· The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271) has been granted

· The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281) has been granted

· The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285) has been granted

· All licenses are granted for a period of five years

· Red Rock is one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine

 

IDOX  53.9p  £239m (AIM:IDOX)

The supplier of specialist information management software and solutions to the public and asset intensive sectors reported its audited financial results for the year ended 31 October 2020.

· Revenue increased by 4% to £68.0m (2019: £65.5m).  Recurring revenue increased by 5% to £37.4m (2019: £35.7m). Order book for contracted software and services up 31% to £15.9m (2019: £12.1m). Adjusted EBITDA increased by 36% to £19.6m (2019: £14.4m). Adjusted EBITDA margin improved to 29% (2019: 22%). Cash conversion of Adjusted EBITDA to net cash from operating activities improved to 109% (2019: 86%). Free cashflow of £11.2m (2019: £4.4m). Adjusted EPS for continuing operations increased by 39% to 1.81p (2019: 1.30p).

· Net debt at 31 October 2020 down 39% at £16.1m (2019: £26.4m). Final dividend of 0.3p per share (2019: £Nil) declared, in line with the stated intention to restore dividend payments.

· Significant improvements in H2 orderbooks compared to H1, including EIM orderbook, carried into FY21 up over 50% on FY20.

· Combination of recurring revenue and growing order book provides good visibility for current year revenue outlook.

· FY21 year-to-date trading in line with expectations.

  

Gfinity  4.625p  £36.8m (AIM:GFIN)

The esports and gaming solutions provider, today provides an update on first half performance for the financial year ended 30 June 2021.

Gfinity has continued to build on the positive performance announced at its AGM update on 18 December 2020. The Company delivered a strong performance in December, building on the month-on-month profitability reported in October and November. As a result, on an adjusted EBITDA basis, Gfinity was profitable for the final quarter of the 2020 calendar year. Whilst this is a strong performance, the Company notes that due to the project-based nature of the Company’s revenue streams and some seasonality in the business in the short term it does not imply the Company will always be profitable on a monthly basis going forward.

At the half year (31 December 2020), the Company’s cash position was £1.7m, slightly ahead of the cash position of £1.6m as at the end of the financial year (30 June 2020).

 

MelodyVR Group 3.05p  £76.5m (AIM:MVR)

The music company and operator of the MelodyVR and Napster platforms, announced key contract renewals with Napster’s business to business partners and release metrics for the Napster platform for the year ending 31 December 2020;

· Amendment to the platform services agreement with SONOS, one of the world’s leading sound experience brands, covering the expansion of ad-supported SONOS Radio in 14 new territories (UK, Ireland, France, Germany, Italy, The Netherlands, Sweden, Switzerland, Austria, Belgium, Denmark, Norway, Australia, New Zealand).  

· Renewal of the technology and platform services agreement with Panasonic Corporation (Japan) to March 2022, providing application development and integration of Napster services with Panasonic’s HomeX smart home music services;

 · Renewal of the digital media services agreement with Telefonica Germany to December 2022, including a 2-year extension of the Napster music service for O2 subscribers and Aldi Talk service subscribers in Germany.

 These contract renewals are expected to secure revenues of c.$16 million in aggregate over the course of the next 2 years.

 

Active Energy Group 1.125p  £17.34m (LON:AEG)

The London quoted international biomass based renewable energy and forestry management business, announces, further to the announcement made on 1 February 2021 by the Company, the successful completion of an oversubscribed Placing and PrimaryBid Offer, conditionally raising gross proceeds of £7 million at 1p.

Michael Rowan, CEO of Active Energy, said: “The Fundraise and the CLN Restructuring represent significant milestones for AEG and will allow AEG to progress and accelerate its business plans for CoalSwitch™ and the Lumberton site. Construction work is underway to complete the commissioning of the up to 5tph reference plant and to fulfil our first order for the Coalswitch™ product to PacifiCorp. The principal focus is to develop the unique Lumberton opportunity and establish a significant production facility at the Site in North Carolina. In the long term, the Company aims to build a business that is a global provider in next generation biomass solutions and services. We look forward to providing all stakeholders with regular updates within the coming weeks as we progress towards commercialising and producing AEG’s next generation biomass products.”

 

Gaming Realms 32.6p  £93.6m (AIM:GMR)

The developer and licensor of mobile focused gaming content, announced its entry into the Italian market through its collaboration with a number of top tier Italian gaming operators. Gaming Realms’ platform and portfolio have been fully certified for entry into the Italian regulated gaming market by L’Amministrazione Autonoma dei Monopoli di Stato.

Via SG Digital’s Opening Gaming System (OGS) platform, Gaming Realms’ Slingo Portfolio is now live in the Italian market with iGaming operators Goldbet and Sisal Group, and will be going live with Lottomatica later in February.

 

Spectra Systems  180p  £80.16m (AIM:SPSY)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software has executed an agreement with its central bank customer concerning the second phase of the sensor development originally announced on 21 October 2020.  This $5.6 MM revenue second phase follows the $1.9MM first phase development.

 

NetScientific SUSPENDED (LON:NSCI)

The life sciences, technology, investment and commercialisation company, announces that it has a notification obligation pending in respect of one of its portfolio companies. However, the Company is currently not in a position to issue the notification, and as such it has therefore requested suspension of trading in its ordinary shares on AIM pending the release of said notification.

Accordingly, trading in the Company’s ordinary shares on AIM will be suspended with effect from 7.30 a.m. today. Trading will remain suspended until the notification is released to the market.

 

Lexington Gold 3.15p  £8.24m (AIM:LEX)

The gold exploration and development company with projects in North and South Carolina, USA, is pleased to announce an update on its ongoing operational activities.  

· Contract signed with an experienced local drilling company for an initial minimum 610m diamond core drill programme at the Jones-Keystone-Loflin Project

· All requisite environmental approvals for the preparation of the drill sites and drilling programme have been received.

· The initial drilling campaign will focus on the south-western (Loflin) side of the JKL Project.

· Six holes are planned by way of infill drilling in order to expand on and confirm the findings of historical third-party drilling undertaken on the Loflin property.

· The Company has incorporated the historical third-party drilling information from JKL into a 3D model that was used to plan the current drilling campaign

· Drilling is planned to commence later this month once the operating crew for the diamond drill rig become available from other third-party projects they are working on

· Geotech Airborne Geophysical Surveys has completed the processing of the VTEM survey geophysical data captured in December 2020 and the Company is currently undertaking the interpretation and modelling of this data.

· A fixed-wing airborne geophysical survey has commenced over the JKL, Carolina Belle and Argo Projects in North Carolina

 

Draper Esprit 748p  £1,040m (AIM:GROW)

Draper Esprit notes yesterday’s announcement from UiPath Inc., the robotic process automation software business, of its successful $750 million fundraising round at a $35 billion valuation. 

The round was led by Alkeon Capital and Coatue, with Altimeter Capital Management, Dragoneer, IVP, Sequoia Capital, Tiger Global Management and funds advised by T. Rowe Price Associates Inc. also participating. 

UiPath provides a comprehensive robotic software solution for IT-based process automation of legacy processes and is one of the fastest-growing enterprise software companies in the world. 

Draper Esprit originally acquired its holding in UiPath in January 2019 through the acquisition of interests in Earlybird Digital East Fund I. 

Based on the valuation implied by the fundraising, Draper Esprit’s gross fair value (before carry deductions) is approximately £115 million (using a GBP/USD 1.37 exchange rate). This is an uplift of £78 million to the September 2020 fair value of £37 million.

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

 

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