Small Cap Wrap – Ariana Resources, CPP Group, Aquis Exchange and more…
18 May 2021
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What’s cooking in the IPO kitchen?
Trellus Health which is commercialising a scientifically validated, resilience-based, connected health solution for chronic condition management to float on AIM. Expected to raise gross proceeds of approximately £25m. Due 28 May.
Elcogen Group has announced its intention to IPO on AIM. They are a manufacturer of ceramic anode-supported, low temperature solid oxide cell technology. Elcogen has two core product lines, ElcoCell and ElcoStack. Both product lines are used by customers to integrate into their own end products or systems either for distributed power generation (fuel cells), green hydrogen production (electrolysers) or syngas production (co-electrolysis). The Group operates in Estonia and Finland with headquarters in Tallinn, Estonia. Company financials and deal details TBC. Expected admission date early June 2021.
Pioneer Media Holdings Inc to join the Access Segment AQSE Growth Market. The Company is an investment company focused on the eSports and mobile gaming industries, and all business sectors related thereto. No funds being raised. Due 25 May.
Pharma C Investments to list as a SPAC on the Access Segment of the AQSE Growth Market. It is specifically seeking to take advantage of the dynamic regulatory environment surrounding legal Medicinal Cannabis. Raising £1m Due 26 May.
Clarify Pharma, an investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announced its intention to apply for admission of its Ordinary Shares to trading on the Access Segment of the AQSE Growth Market. The flotation is expected to value Clarify Pharma at approximately £10.5m. The Company plans to raise approximately £5m.
Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.
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% compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 %) followed by EMEA (FY20: 17.0%.), and APAC (FY20: 6.4%.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19.
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 Access Segment AQSE Growth Market. Admission 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.
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. Due 3 June
The UK based international pharmaceutical company trading on the Aquis Stock Exchange, and Aion Therapeutic Inc. (CSE: AION), a BC based international pharmaceutical company trading on the Canadian Securities Exchange, announced that joint testing has revealed their combined formulations to be effective in killing HER2+ breast cancer cells grown in 3D cell culture via three separate mechanisms: direct cell cytotoxicity, immune stimulated T-cell cytotoxicity, and macrophage induced phagocytosis. HER2-positive constitutes approximately 20% of all breast cancers. The testing was performed by BIOENSIS, an independent, pre-clinical predictive pharmaceutical testing laboratory. The medical cannabis formulations were developed by Apollon’s affiliate, Apollon Formularies Jamaica Limited, and the medicinal mushroom formulations were developed by AI Pharmaceutical Limited, a subsidiary of Aion. The testing results showed that Apollon Jamaica’s medical cannabis formulations were particularly effective in killing living HER2+ cancer cells directly (direct cytotoxicity), while Aion’s medicinal mushroom formulations were most effective in stimulating the immune system’s T-cell production to attack and kill HER2+ cancer cells and through macrophage induced phagocytosis. When the two formulations were combined, nearly 100% of HER2+ breast cancer cells in 3D cell cultures were killed through the three different pathways.
Aquis Exchange 675p £183m (LON:AQX)
The primary and secondary trading business of exchange service group Aquis Exchange PLC, has been granted equivalence status by the Frankfurt Stock Exchange’s Open Market. This means companies with a quotation on AQSE can seek a dual quotation on the Frankfurt Stock Exchange and vice versa. With its fully electronic Xetra market and its floor trading venue, the Frankfurt Stock Exchange is one of the largest exchanges in the world and continental Europe’s largest. The Open Market in Frankfurt mainly trades foreign shares, bonds of German and foreign issuers, certificates and warrants in addition to German shares. Currently 44,366 international securities are tradable in the Open Market. For companies considering a dual listing for AQSE securities on the Frankfurt Stock Exchange, advantages include better access to the German-speaking financial community, which has Europe’s largest retail investor community, and stocks become accessible to certain German funds that only allow investment in companies with a domestic listing. Dual listing is a simple process, which carries minor cost implications and, crucially, has no additional reporting or compliance requirements. The arrangement between AQSE and Frankfurt was effective from 3 May 2021.
Ariana Resources 5.3p £57.5m (LON:AAU)
The exploration and development company operating in Europe announced recent resource drilling results obtained from the Banu area of the Kiziltepe Mine. Kiziltepe is part of the Zenit Madencilik San. ve Tic. A.S. Joint Venture with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana. Highlights include: Drilling programme testing the south-eastern half of the Banu vein system over 200m of strike to depths of c. 100m below surface. New significant intercepts within the vein system include: 4.1m @ 3.58g/t Au + 78.9g/t Ag— 7.0m @ 2.01g/t Au + 70.6g/t Ag – 2.6m @ 5.08g/t Au + 102.5g/t Ag. Zone of higher-grade mineralisation confirmed at the south-eastern end of the vein system. Potential remains to expand the open-pittable strike continuity of the vein system from 300m to c. 700m, and in drilling certain other vein systems in the vicinity.
The multinational product and services company which specialises in the financial services and insurance markets, has completed the sale of CPP Creating Profitable Partnerships GmbH, the Group’s German card protection legacy business, to Deutsche Schutzbriefgesellschaft GmbH, the value-adding specialist in German-speaking banking, retail, leisure and other sectors. Total consideration in respect of the Disposal has been agreed at £2.3m which, after adjustment for working capital, will result in the Group receiving cash proceeds of approximately £2.2m before transaction costs.
Crossword Cybersecurity* 430p £24.8m (LON:CCS)
The technology commercialisation company focused on cyber security and risk management, has today announced its intention to establish a subsidiary in the Sultanate of Oman as its Middle Eastern Regional HQ. A memorandum of understand has been signed with Al-Rawahy Holdings LLC of the Sultanate of Oman, which will see the formation of a licensed subsidiary called Crossword Cybersecurity LLC, majority owned by Crossword. The Company believes that Al-Rawahy Holdings LLC is the perfect partner for Crossword, with over 40 years’ experience supporting the growing and vibrant sectors of the Oman economy and throughout the Gulf region. With over 10,000 employees, the group is active in the oil & gas, facility management, telecoms, mining, infrastructure, trading and construction industries. Crossword Cybersecurity LLC will be the exclusive third-party distributor of Crossword’s existing and future cyber security products, including Rizikon, the SaaS platform that enables medium to large companies to assess and manage all risks from their suppliers. Crossword’s full range of cyber security services will also be made available- helping companies in the region improve their cyber security posture to achieve best practices with the latest solutions.
Europa Oil & Gas 1.4p £7.9m (LON:EOG)
The UK , Ireland and Morocco focused oil and gas exploration, development and production company, announced that all necessary consents have been received by the operator, Egdon Resources UK Limited, for the commencement of the proppant squeeze operation at the Wressle oil production site in North Lincolnshire. The proppant squeeze represents the final stage of operations under the field development plan to achieve optimum production levels at the Wressle-1 well. The conventional Wressle-1 oil discovery, which has proven reserves and significant development upside, is located on the western margin of the Humber Basin on licences PEDL180 and PEDL182. Europa holds a 30% working interest in the Licences, alongside Egdon Resources (30% and operator), and Union Jack Oil (40%). The proppant squeeze operation is being undertaken to optimise oil production from the Ashover Grit formation, one of three productive reservoirs present at Wressle, to a constrained gross rate of 500 bopd (150 bopd net to Europa).
Kibo Energy* 0.3p £7.1m (LON:KIBO)
The multi-asset, African focused energy company, has entered into an agreement with South Africa-based Industrial Green Solutions (Pty) Ltd (IGES) to jointly develop a portfolio of Waste to Energy projects in South Africa with an initial target of generating more than 50 megawatts of electricity for sale to industrial users. The Agreement, which is subject to the satisfaction of certain conditions, is in line with Kibo’s strategy to integrate renewable energy into its project pipeline, which includes three utility-scale power generation and mining projects. Under the terms of the Agreement, Kibo will own 65% of Newco Energy (Pty) Ltd (Newco), which will hold the Waste to Energy Project Portfolio, with IGES holding 35%. Newco will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW. Project development duration for first phase of 2 MW expected to be no longer than 16 months including construction. Kibo will fund NEWCO, commencing with an amount of R11,145,000 (GBP560k) as an Equity Loan to Newco for the development of this first project.
Merit Group 67.5p £14m (LON:MRIT)
The data and intelligence business, announces that it is making a strategic investment in DataWorks, a new technology company specialising in web data collection at scale. The investment will give Merit access to market leading technology focussed on the important and fast growing e-commerce market. Under the terms of agreements signed today, Merit Group will take an equity stake of 10.9% in DataWorks for a total consideration of EUR600k payable in two tranches in the current financial year. Merit Group will become the first client of DataWorks giving it a licence to utilise the DataWorks platform. Con Conlon, a Merit Group Executive Director, will join the DataWorks Board. Merit Group, which is investing in DataWorks alongside Enterprise Ireland, will fund the share acquisition from its existing cash resources. DataWorks is a technology company focussed on the creation and deployment of a market leading web data integration engine. Web data is useful information that exists on websites which companies collect and use to inform them about their customers and market trends and provide a competitive edge over their rivals. DataWorks’ platform and technology, which is focussed on the e-commerce market, has the ability to gather very large data sets from multiple sites and geographies in real time.
Personal Group 240p £74.9m (LON:PGH)
The technology-enabled employee benefits and services provider, announced the appointment of Liam McGrath as Chief Operating Officer with effect from 24 May 2021. Liam will be appointed to the Board of the Company from the same date, pending the requisite approvals by the Prudential Regulation Authority and the Financial Conduct Authority. Liam has held COO and senior operations roles at both private and public companies within the financial, insurance and technology sectors, including five years as Group COO of Equiniti Group plc, a major UK outsourcing business. Previous roles include Head of Lending Operations at Royal Bank of Scotland, UK Operations Director at Chaucer Insurance Syndicates and Group COO at Advanced Computer Software Group, the third largest software provider in the UK and a leading IT services provider to the NHS. Liam is a Member of the Institute of Leadership and Management.
Proactis Holdings 74.2p £70.9m (LON:PHD)
The business spend management solution provider has signed a 3-year contract with Sheridan Nurseries, Canada’s largest fully integrated garden centre, retailer and grower to provide its business spend management solution across Sheridan’s 8 locations. As announced previously, the Group adopted a new go-to market strategy for each of its North America, France and Germany territories designed to replicate the successful models deployed in the UK and the Netherlands. This contract win is the second new customer in North America to sign up under the Group’s new go-to market strategy, and complements further success in Germany and France where the Group has signed a total of four new customers under this model.
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