Small Cap Wrap – Oakley Capital Investments, Union Jack Oil, Prospex Energy and more…

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Small Cap Feast – 1 March 2021

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What’s Cooking In The IPO Kitchen?

tinyBuild— a leading video games publisher and developer with global operations. tinyBuild’s strategic focus is in creating long-lasting IP by partnering with video games developers, establishing a stable platform on which to build multi-game and multimedia franchises is to join AIM. Offer details TBC.  Due mid-March.

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Team PLC announced their plans for an AIM IPO.  Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 .   The Company is seeking to raise  no less than £5m.  The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission.

Virgin Wines UK PLC has out their plans for an AIM IPO.  Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates.  Anticipated mkt cap £110m. Raising £13m in new money and vendor sale of £34.9m . Due 2nd March.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange.  Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA.  Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March.  The company raised more than $180m in January with a valuation of more than $7bn.


Breakfast Buffet

Equals Group 40.5p £72.3m (LON:EQLS)

The technology-led international payments group focused on the SME marketplace announced a partnership with Tap Global Limited  to provide crypto currency exchange services to both its B2B and B2C customer bases.

Equals’ strategy is to provide multiple payment services across all currencies in a simple, accessible platform.  Historically, the available currencies have been limited to ‘Fiat’ currencies (those backed by governments) but with the increasing recent adoption of crypto as an asset class, the Group has now created the capability for its customers to trade into and out of crypto currencies versus fiat currencies.  This capability is intended to become part of a wider strategy which would include crypto and decentralised finance (DeFi) for the Group.  Further updates on the Group’s positioning in this fast-moving space will be provided when appropriate.

Equals has selected Tap as its first partner, a Gibraltar registered company that is fully regulated by the Gibraltar Financial Services Commission and holds the ‘distributed ledger technology’ licence.  The agreement will initially be on a referral basis, allowing the Group’s customer base to interreact directly with Tap.  In the near future Equals plans to enhance the connectivity of its independent platforms, leading to an enhanced and seamless customer experience.


Physiomics* 7.3p £7.1m (LON:PYC)

HY Dec 20 results from the oncology consultancy using mathematical models and its Virtual Tumour™ technology to support the development of cancer treatment regimens and personalised medicine solutions.

Total income of £386k (six months ended 31 December 2019: £343k) · Operating loss of £132k (six months ended 31 December 2019: £118k) · Cash and cash equivalents of £1.15m at 31 December 2020 (31 December 2019: £434k)

Key events in the period include · Signing of a further contract with Bicycle Therapeutics; the eighth signed with this high-profile UK biotech company, spanning four different assets within its pipeline · Agreement with Astellas Pharma Inc. to model an undisclosed immune-oncology target · UK HRA and ethics committee approval of PARTNER study to be conducted at Portsmouth Hospitals University NHS Trust to generate data to further evaluate the Company’s personalised dosing software tool · Partnership with Tabula Rasa Healthcare® to implement the Company’s personalised dosing tool for cancer treatments in the established DoseMeRx® software platform.

The Directors believe the Company is in a good position to meet market expectations for this year as it continues to make strong progress in each of its key business areas.


1Spatial Plc 35p £38.7m (LON:SPA)

The specialist  in Location Master Data Management (LMDM) software and solutions updated on trading for the financial year ended 31 January 2021. Based on the unaudited financial results, the Group expects to report solid progress in key financial metrics, delivering results ahead of current market expectations due to a robust performance in the second half of the year.

Revenue for the year is expected to be in excess of £24m (FY 2020: £23.4m), with recurring revenue having increased year on year. The order book of committed revenue and longer-term contracts also increased year on year. Adjusted EBITDA is expected to be in excess of £3.2m (FY 2020: £3.2m).

The Group delivered a significantly improved cash performance, with net cash increasing to approximately £4.3m at 31 January 2021 (31 January 2020: £3.9m). The increase in net cash is after payment of deferred consideration of €0.7m (£0.6m), and the result of a strongly positive operating cash flow and a positive free cash flow for the full year.

The Board is confident that the Group’s progress over the last year is set to continue in the coming year. Nevertheless, the Board remains cautious in managing potential risks resulting from the Covid-19 pandemic.


Polar Capital 673p £664m (LON:POLR)

The specialist active asset management group, today announces that the pre-conditions to the acquisition of 100% of the issued share capital of Dalton Capital (Holdings) Limited, the parent company of Dalton Strategic Partnership LLP (Dalton), a UK based boutique asset manager, including receipt of approval from the Financial Conduct Authority, have been satisfied.

The initial consideration for the acquisition has been satisfied through £8.5m in cash plus 7,482 new ordinary shares in Polar Capital.  Further deferred cash consideration in the region of £7.1m, is payable 12 months after completion, with the amount being linked to the value of AuM at the time.

The acquisition of Dalton is in line with the Company’s growth strategy adding a leading European investment team which is complementary to Polar Capital’s existing European Income team, with established funds, and a longstanding track record. In addition to adding £1.3bn of AuM to the Group (this figure excludes £0.28bn of Velox AuM that are not part of the transaction) taking the Group’s AuM to £21.6bn, it also provides Polar Capital with broader wholesale and institutional distribution into Europe, particularly in the German market and includes the existing Luxembourg SICAV umbrella which will aid Polar Capital’s product range for international distribution.


Sativa Wellness 5.3p £16m (AQSE:SWEL)

Sativa’s Polish extraction facility has secured accreditation of its Hazard Analysis and Critical Control Point  system from global quality and certification company LL-C Group, and confirmation that its operations meet the requirements of Good Manufacturing Practice (GMP) and Good Hygiene Practice (GHP) standards for food manufacturing.

This latest achievement, alongside the Company’s recent announcement regarding its Novel Food submission, underpins Sativa’s commitment to continually deliver the highest level of regulatory compliance and product quality – ‘CBD you can trust’.

Geremy Thomas, Executive Chairman, says: “Quality and product safety are paramount within our organisation. Our adherence to these international safety standards assures our customers that we provide them with safe and quality products – CBD you can trust.  We welcome the clarity from UK and European authorities that sets out a clear regulatory pathway, that will allow consumers to benefit from un-fettered access to CBD products.”


Lexington Gold 3.65p £9.5m (LON:LEX)

Drilling operations have commenced at the Jones-Keystone-Loflin Project (JKL). As announced on 2 February 2021, the initial drilling programme will consist of six diamond drill holes for an initial minimum of 610m and will focus on the south-western (Loflin) side of the JKL Project .

The objective of the Phase One Drilling Campaign is to conduct predominantly infill drilling and to confirm and expand on the results of historical third-party drilling performed at Loflin. The drill programme will therefore seek to follow up on historical third-party drill intersections such as hole LOC90-01’s 48.8m interval @ 1.12g/t Au from surface including 18.3m @ 1.57g/t Au.


Kromek Group 16.75p £57.8m (LON:KMK)

The worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets,  has received two new orders worth a total of $750,000, with half of this value due to be recognised during the current financial year. The orders are from existing customers in the Group’s medical imaging and nuclear security markets.

The first order, from an existing OEM customer, is worth $600,000 and is for the supply of detectors to be used in niche SPECT applications. The Group is commencing delivery immediately and this will complete by the end of this calendar year.

The second order is a repeat order from an existing US-based customer, worth $150,000, for the supply of specialised CZT detectors for a nuclear security application. This order is expected to be delivered during the current financial year.


Prospex Energy 2.05p £1.8m (LON:PXEN)

Completion of Acquisition of El Romeral Gas & Power Project in Spain

Completion of acquisition of a 49.9% interest in El Romeral gas and power operation in Spain – includes three producing wells and 8.1 MW power station

Significant potential to increase gas production and electricity generation at El Romeral

El Romeral complements existing portfolio of onshore European gas projects which includes Selva field in Italy where first gas is expected in 2021


Union Jack Oil 0.16p £31.7m (LON:UJO)

The  UK focused onshore hydrocarbon production, development and exploration company announced that it has completed the acquisition of a further 15% economic interest in PEDL253 containing the Biscathorpe project on the terms originally announced on 18 January 2021 and that Union Jack now holds a 45% interest in PEDL253.

On the proposed conventional B-2Z side-track appraisal well, the Company also highlights that a Planning Application has been made for the side-track drilling operation, associated testing and, in a success case, the long-term production of hydrocarbons at the Biscathorpe-2 wellsite, with drilling planned for H2 2021, subject to planning approval.


Oakley Capital Investments 291p £525m (LON:OCI)

Oakley Capital Investments Limited announced that Career Partner Group has completed a refinancing with Arcmont Asset Management. OCI’s share of proceeds via Oakley Capital Fund III 2 will be c.£28m.

Note that the above figure only relates to OCI’s share of Oakley’s overall proceeds from the refinancing. OCI’s liquid resources available for future deployment (including this transaction) are estimated to be c.£197m.


Head Chef:

Derren Nathan
0203 764 2344
[email protected]

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