Small Cap Wrap – TransGlobe Energy, Tiziana Life Sciences, Tekcapital and more…

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07 May 2021

 

@HybridanLLP

 

*A corporate client of Hybridan LLP

 

Dish of the day

National World (LON:NWOR) reintroduced on the Main Market (standard) of the London Stock Exchange following a suspension in December 2019 as a result of media speculation that the Company was considering acquiring JPIMedia Publishing Limited. The Acquisition of the JPI Group and the funds to implement the Company’s plans for its development were financed by the Company’s cash resources of £4.2m, the issue of £20m convertible secured loan notes and the issue of £1m of unsecured loan notes. Mkt Cap£28.5m. The objective of the Company is to create a modern platform for news publishing through the implementation of a new operating model across multiple brands and platforms by acquiring a number of media and digital technology assets, and leveraging its portfolio to launch new media brands across the UK.

Off the menu

No Leavers Today.

 

What’s cooking in the IPO kitchen?

Taylor Maritime Investments to join the Main Market (premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3b of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021

Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.

Belluscura to Join AIM. The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40m. Due late May.

Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8 per cent. compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 per cent.), followed by EMEA (FY20: 17.0 per cent.), and APAC (FY20: 6.4 per cent.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19. 

Boanerges Limited, announces an application of admission onto the Aquis Stock Exchange. The Directors believe that an opportunity exists to acquire and consolidate holdings in SMEs operating in the technology sector, with the intention of creating value for Shareholders. Initially, the Company’s focus will be searching for companies which are based in the UK or Europe where there may be a number of opportunities to acquire interests in undervalued or pre-commercialisation technologies, or current commercialisation technologies, which when applied, produce cost saving or revenue enhancement for customers. Technology company acquisitions may include those involved in Big Data, Machine Learning, Telematics and Internet of Things sectors. Early acquisition of these innovative technologies should provide maximum returns for Shareholders. Expected 17th May.

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Aquis Stock Exchange Growth Market (Access Segment). Admission on AQSE is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Glantus Holdings, a provider of accounts payable automation and analytics solutions, is considering a listing on the AIM market of the LSE. It is focusing on three product areas; Active AP Discovery, Intelligent AP Automation and Advanced AP Analytics, it utilises its internally developed data platform to offer an integrated solution for the finance function, accounts payable in particular. These solutions are offered to over 300 customers, more than 50 of which Glantus classifies as large enterprises. The Group headquarters is in Dublin, Ireland. The main office for EMEA operations is in Harpenden, England. The main office for US operations is in San Jose, California. The core product development team is based in Katowice, Poland with additional team members in a satellite office in Vilnius, Lithuania, and management support from the Dublin headquarters. Valuation, amount to raise, and timing TBC

Alphawave IP Group is considering an IPO on the standard listing segment of the London Stock Exchange. Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing an equity value of up to USD 4.5b for the Group at Admission. During the year ended 31 December 2020, the group generated revenue of USD 32.8m, exhibiting robust growth and delivering a CAGR of 161 per cent. since the year ended 31 May 2018.

Catena Group (LON:CTNA) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of  Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager’s data science and machine learning strategy. Capital to be raised on Admission approximately £6.1m. Mkt cap c. £66.4m. Due 10 May.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected tbc.

 

Banquet Buffet

Active Energy 0.65p  £25.36m (LON:AEG)

The London quoted international biomass based renewable energy business, announced that the Company received a Notice of Violation issued by the North Carolina Department of Environmental Quality (NCDEQ) on 6 May 2021. During construction, additional control devices to enhance emissions reductions from the Lumberton CoalSwitchTM plant have been installed by the Company. The additions were notified by the Company to NCDEQ, who acknowledge the additions as improvements to the Plant’s construction, however any modifications require an amendment to the Company’s existing air quality permit. The Company’s representatives in North Carolina have already submitted a permit modification application and are in communication with the NCDEQ. The addition of control devices reflects AEG’s commitment to operate the Plant to the highest standards and the Company will continue to work closely with the North Carolina agencies who regulate it to comply with permitting and notice requests. AEG ceased construction on the relevant control devices, as required, and will reply to the Notice in the normal course. Michael Rowan, CEO, Active Energy Group, comments: “Activity at Lumberton has continued for many months and the Plant is nearing completion. NCDEQ has already acknowledged that the additional control devices further reduce emissions, and we are confident that the permit modification, which has already been submitted to NCDEQ prior to the Notice being issued, will be processed in short order. The Company is confident it will meet its existing sales commitments.”

 

Alba Mineral Resources 0.305p  £19m (LON:ALBA)

Following a detailed independent assessment of the Amitsoq Graphite Project in southern Greenland, the Company has declared a significant Exploration Target for the Project. A detailed assessment of all pertinent data sets for the Amitsoq Project concluded that the volume and grade ranges for: (a)  the Amitsoq Exploration Target are between 1.7 and 4.5m tonnes (assuming a density of 2.63t/m3) with a grade range of between 24-36% Graphitic Carbon, for between 408,000 and 1,620,000 tonnes of contained graphite; and (b) the Kalaaq Exploration Target are between 4.0 and 7.0m tonnes (assuming a density of 2.63t/m3) with a grade range of between 23-29% Graphitic Carbon, for between 920,000 and 2,030,000 tonnes of contained graphite.

 

Chamberlin 12.75p  £8.9m (LON:CMH)

The specialist castings and engineering group, in line with its previous announcements, is continuing to reduce costs and streamline the organisation in line with revised levels of revenue. The Board anticipates that the new management structure will be in place by 1 June 2021. As part of this restructuring, the Company announced that Mr Alan Tomlinson is joining the Board as Group Finance Director. Alan Tomlinson is a Chartered Accountant and has been employed by Chamberlin in a senior finance role since 2019 and has previously held a number of senior finance and accounting roles within a large construction company. He is currently the Group’s Finance Controller with additional responsibilities for Petrel, the Group’s specialist lighting company. 

 

H C Slingsby 270p  £2.84m (LON:SLNG)

FY Dec results20. The full year operating profit (before exceptional items) was £1.3m (2019: £0.4m) on sales of £21.8m (2019: £19.6m). Group sales increased by around 11% which together with an improvement in gross margin led to a profit before taxation and exceptional items of £1.1m (2019: £0.2m).  The increase in Group sales is due to demand for Coronavirus related products, as customers sought to continue or restart their operations compliantly. Group sales in Q1 of 2021 against the same period in 2020 increased by 8%. This improvement in sales offset the impact of a fall in gross margin leading to an unaudited profit before tax in Q1 2021 being in line with that achieved in the same period in 2020 of £0.1m. Whilst the Group’s sales grew in 2020 due to demand for Coronavirus related products, this will not necessarily continue to be the case, particularly for items which are more capital equipment in nature. The Group also benefitted from disruption to supply chains which led to the Group receiving orders for virus related products during 2020 which will not repeat in 2021.  As such, it is unclear as to the impact that the virus will have on demand going forward. Slingsby offers commercial & industrial workplace supplies, manufacturing and distributing over 45,000 high quality products.

 

Love Hemp Group 3.45p  £24.12m (AQSE:LIFE)

The UK’s leading CBD product supplier has partnered with Togetherall, a leading online mental health and wellbeing support service, to provide free access to the platform to anyone who subscribes to the Love Hemp newsletter. Through registration via a unique URL, any Love Hemp purchaser or subscriber (aged 16+) can sign up anonymously and have instant, free access to a community of peers who help to support and guide each other, as well as a team of trained mental health professionals who moderate the service and monitor its users’ needs. Togetherall also offers access to a range of courses and resources to help users to understand different mental illnesses, and ways to support them. Togetherall, having been in operation for 14 years and with mental health professionals based around the world, has supported more than 300,000 members living with issues such as anxiety and depression. Its team of mental health professionals monitoring the platform are based all around the world, ensuring 24/7 safe support.

 

San Leon Energy 39p  £175m (LON:SLE)

The independent oil and gas production, development and exploration company focused on Nigeria, announced that John Brown has joined the Board on 7 May 2021 as an independent Non-Executive Director. Mr Brown has more than 20 years of international experience in oil and gas and related industries, including over nine years of experience with operations in West Africa. He is a Chartered Accountant (ICAS) and was Chief Financial Officer or Group Finance Director for numerous UK listed companies within the oil and gas sector including; Gulf Marine Services PLC, Bowleven plc and Pittencrieff Resources plc. Upon joining the Board, Mr Brown will chair the audit and risk committee and be a member of the nomination and remuneration committees. The Company further announces that, as part of a corporate governance review previously announced and conducted in conjunction with its search for a new non-executive director, Alan Campbell, Director of Commercial & Business Development, will step down from the Board with immediate effect. Mr Campbell will remain a member of the Company’s executive management team and will continue in his role of leading San Leon’s commercial and business operations.  He will also continue to act as Company Secretary.

 

Semper Fortis Esports*  3.77p  £15.37m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, notes a media report suggesting that the Company is in discussions with certain leading professional footballers regarding potential future commercial relationships. The Company can confirm that it is pursuing such relationships with leading sports figures in line with the Company’s strategy, as detailed in the Admission Document published on 26 April 2021. The Company will make appropriate and timely announcements as and when any brand ambassador contracts are entered into.

 

Tekcapital  14.75p  £19.3m (LON:TEK)

The UK intellectual property investment group focused on creating valuable products from investing in university technologies that can improve quality of life, noted the announcement released today on behalf of Belluscura, in connection with the proposed admission of Belluscura’s ordinary shares to trading on AIM in conjunction with a placing of new ordinary shares to raise funds. Tekcapital holds 17.1m shares of Belluscura plc.

 

Tiziana Life Sciences 81p  £157.6m (LON:TILS)

The biotechnology company focused on innovative therapeutics for oncology, inflammation and infectious diseases, today announced an interview with CEO and CSO Dr. Kunwar Shailubhai will air on The RedChip Money Report on the Bloomberg Network in the U.S. on Saturday, May 8 at 7 p.m. local time. The RedChip Money Report airs on Bloomberg Television U.S. on Saturdays at 7 p.m. local time in approximately 73M homes. To view the interview segment, please visit: https://youtu.be/_S1mS9thG38

 

TransGlobe Energy 112.5p  £81.6m (LON:TGL)

Financial and operating results for the three months ended March 31, 2021.  Sales averaged 9,691 boe/d including 171.9 Mbbls sold to EGPC for net proceeds of $8.5m. Average realised price for Q1-2021 sales of $48.47/boe; Q1-2021 average realised price on Egyptian sales of $53.31/bbl and Canadian sales of $29.70/boe; Funds flow from operations of $0.1m ($0.00 per share) in the quarter; First quarter net loss of $11.0m ($0.15 per share), inclusive of a $3.0m unrealised loss on derivative commodity contracts; Ended the first quarter with positive working capital of $7.1m, including cash of $28.7m; Subsequent to the quarter, the Company sold a ~499 Mbbl cargo of Egypt entitlement crude oil with net proceeds expected in May 2021; First quarter production averaged 12,221 boe/d (Egypt 10,238 bbls/d, Canada 1,983 boe/d), a decrease of 163 boe/d (1%) from the previous quarter, primarily due to natural declines; Production in April averaged ~13,316 boe/d (Egypt ~11,009 bbls/d, Canada ~2,307 boe/d), an increase of 9% from Q1-2021; The Company announced a merged concession agreement with a 15-year primary term and improved Company economics on December 3, 2020. The agreement is currently awaiting ratification by the Egyptian Parliament but will have a February 2020 effective date upon ratification. As such, the results achieved in Q1 are exclusive of any effective date adjustments that will be made upon ratification.  

 

Head Chef

Derren Nathan

0203 764 2344

[email protected]

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