Small Cap Feast – Beowulf Mining; Destiny Pharma; European Metals; SigmaRoc

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Our daily digest of news from UK listed Small and Mid caps

10  June 2021

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What’s cooking in the IPO kitchen? 

Orcadian Energy, the North Sea focused, oil and gas development company, announces its intention to seek admission to AIM. The Company’s key asset is the 100% interest in the Pilot oilfield, with audited proven and probable reserves of 78.8m barrels (audited by Sproule BV). Orcadian plans to raise gross proceeds of c. £5m to progress its assets.

Itim Group Limited (to be renamed itim Group plc) is a software technology company, established in 1993. Itim adds value by helping multi-channel retailers optimise their business and stores to improve financial performance and compete more effectively in the digital world of modern retailing. The Company provides flexible solutions proven at adding value as retailers transform stores, digital capabilities and operations suitable for modern retailing and profit improvement. The company plans to raise up to £15m on Admission on AIM (through a placing of new and existing equity). Due date late June / early July. 

Spectral MD Holdings, Ltd., a predictive analytics group that develops proprietary AI algorithms and optical technology for faster treatment decisions in wound care, announces its intention to IPO onto AIM. Net proceeds from the IPO will be used to provide capital for the development of DFU technology which will include investment in additional clinical studies supporting the indication along with progressing regulatory filings; build a European presence and implement the Group’s sales strategy to sell the Group’s DeepView® product into various targeted European jurisdiction; build US distribution network and provide working capital. Due late June. 

 

Baltic Classifieds Group PLC, the leading online classifieds group in the Baltics, announced their intention to IPO and the intended publication of a registration document. Should BCG proceed with the IPO, the Company will apply for admission of its entire issued Ordinary Share Capital to the Premium Listing Segment of the LSE.

The UK Residential REIT, a proposed closed-ended real estate investment trust established to invest in a diversified portfolio of affordable, privately rented residential real estate assets in attractive locations outside of London, announces its intention to IPO onto the Premium Listing Segment of the LSE. URES is targeting Gross Issue Proceeds of  150m before expenses by means of a placing, offer for subscription and intermediaries offer of 150m Ordinary Shares plus an Issue of up to 50m Consideration Shares in connection with the acquisition of Seed Assets at an issue price of £1.00 per Ordinary Share. Expected market capitalisation following the completion of the acquisition of Seed Assets of £200m. Due 16 July

Nord Gold plc, the internationally diversified pure-play gold producer, announces the intended publication of a registration document and its potential intention to undertake an IPO. Should Nord Gold proceed with the Offer, the Group will apply for admission of its Shares to the Premium Listing Segment. The Company has also applied for admission of the Shares to trading on the Moscow Exchange.

 

Victorian Plumbing Group Limited the UK’s leading online retailer of bathroom products and accessories, announces its intention to seek admission of its ordinary shares to trading on AIM. Group has grown rapidly in recent years and is now the UK’s leading online specialist bathroom brand by revenue in 2020 and the second largest retailer of bathroom products in the UK with an estimated 14.2% of the bathroom market by revenue in 2020. The Company’s growth trajectory was maintained in the current financial year, delivering results of £140.7m revenue, and £20.1m adjusted EBITDA for the six months ended 31 March 2021.

LionTrust ESG Trust PLC announces the publication of the Prospectus in connection with the IPO on the Premium Segment of the Main Market. The Company is targeting an initial issue of £150m by means of an Initial Placing, Offer for Subscription and Intermediaries Offer of Ordinary Shares at an issue price of 100 pence per Ordinary Share. In addition, pursuant to the Prospectus, a placing programme will allow the Company to issue up to an additional  250m Ordinary Shares and/or C shares, in the 12 months from the date of publication of the Prospectus and following Initial Admission.

 

UK SPAC (formerly Mountfield Group and now an AIM Rule 15 Shell) has applied for admission to the AQSE Growth Market. The Company recently raised £3.1m in a placing, giving the Company flexibility in pursuing a reverse take-over transaction. The Directors of the Company are currently in the process of identifying and assessing reverse takeover opportunities with a particular focus on the European medicinal cannabis sector. The Directors are working closely with specialists in this industry in order to evaluate opportunities. Due 11th June.

MADE, a digitally native lifestyle brand in home has announced its intention to IPO onto the Premium Listing Segment of the LSE. MADE’s mission is to make high-end designer furniture and homeware products accessible to everyone.  Their gross sales, net revenue and Adjusted EBITDA were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31 March 2021 and £315m, £247m and (£5.1m), respectively, for the year ended 31 December 2020.  The Offer would comprise a primary offer to raise proceeds to further develop growth in existing markets, improve service through reduction of lead-times offered to customers, scale its homeware range and give the Group increased working capital flexibility. MADE would seek to raise approximately £100m of primary proceeds. Expected June.

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. Due 11th June.

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.”Due 22 June

 

Banquet Buffet

Amino Technologies 158p  £131.65m (AIM:AMO)

The software-led global media technology company that delivers modern TV experiences, announces that 24i has expanded its deployment with Kabelnoord, a leading provider of Pay TV and fibre to the home in the Netherlands, to launch streaming applications for Smart TVs. Kablenoord’s decision to launch additional digital services enabled by 24i’s software reflects the deep and highly successful deployment of 24i’s end-to-end solution in 2018. This partnership has rapidly delivered high demand digital services to Kablenoord’s customers including live TV, pause, restart and catch up functionality.

 

Beowulf Mining 4p  £33.13 (AIM:BEM)

Beowulf’s wholly-owned Finnish subsidiary Oy Fennoscandian Resources Ab has been granted EUR 791k by Business Finland. The grant funding is equivalent to 50 per cent of the 3-year EUR1.6m budget for Fennoscandian’s ‘Spheronisation and Purification of Natural Graphite for the European Lithium-Ion Battery Market’ project. This work is part of the BATCircle2.0 (Finland-based Circular Ecosystem of Battery Metals) consortium which has been granted EUR10.8m by Business Finland as part of a total funding budget of EUR19.3m. BATCircle2.0 is a key project in Business Finland’s Smart Mobility and Batteries from Finland programmes.

 

CAP-XX  7.95p  £36.3m (AIM:CPX)

CAP-XX Limited, a world leader in the design and manufacture of supercapacitors and energy management systems, announced an unaudited pre-close trading update for the year to 30 June 2021 . Revenue for the year ending 30 June 2021 is expected to be approximately 15% higher than the prior year and in the range of A$4.1m to A$4.2 (2020: A$3.6m), with unadjusted EBITDA for the year ending 30 June 2021 expected to be a loss of approximately A$2.1m to A$2.2m (2020: loss A$4.2 m).  These expected sales and EBITDA results are in line with current market expectations. EBITDA losses for the year ending 30 June 2021 are after expensing the set-up of the new manufacturing facility at Seven Hills, New South Wales and increased spending on new product development and the protection of the Company’s IP.

 

Destiny Pharma 145.75p  £87.25m (AIM:DEST)

The clinical stage innovative biotechnology company focused on the development of novel medicines to prevent life-threatening infections, today announces that an abstract providing analysis and discussion of the late-breaking data arising from the recently completed Phase 2b clinical study of  XF-73 nasal gel has been accepted for presentation at Europe’s premier antimicrobials congress, the 31st European Congress of Clinical Microbiology & Infectious Diseases (ECCMID), to be held 9 – 12 July, 2021. XF-73 met its primary end point with >99% nasal S. aureus reduction within 24 hours. Excellent clinical safety profile for XF-73 dosed in patients scheduled for cardiac surgery.

 

European Metals 90p  157.6£m (AIM:EMH)

European Metals announced the engagement of Minviro, a UK-based and globally recognised sustainability and life cycle assessment consultancy, to provide an ISO compliant life cycle assessment (LCA), including a carbon footprint evaluation, of the Cinovec lithium / tin project in the Czech Republic. Life Cycle Assessment is a widely accepted and robust numerical method used to quantify climate change and other environmental impacts for industrial processes, while identifying opportunities for impact reduction and process improvement. The ISO-compliant and third-party reviewed Life Cycle Assessment (LCA) Report is anticipated to be completed and provided to the Company in Q3 2021.

 

Marlowe 781p  £603m (AIM:MRL)

The UK leader in business critical services and software which assure safety and regulatory compliance, announces that it has acquired Healthwork (incorporated as Gel Limited), a national provider of occupational health services, for an expected enterprise value of £17.2m. Founded in 2003, Healthwork is based in Manchester and employs approximately 120 staff, including over 80 clinical professionals. The acquisition of Healthwork adds significant scale to Marlowe’s current occupational health offering of employee mental health, wellbeing and health surveillance services and offers synergies with Marlowe’s wider Governance, Risk and Compliance division. It strengthens Marlowe’s position in occupational health, a market benefiting from strong structural growth and a range of attractive characteristics, such as non-discretionary spend, high barriers to entry and increased demand due to Covid-19. Marlowe entered the occupational health market in March 2020 with the acquisition of Managed Occupational Health. Healthwork will become a platform for further acquisition-led growth within this space. Key management will remain with the business going forward. For the year ended 31 March 2021, Healthwork generated operating profits of £2.6m on revenues of £10.4m. Net assets at 31 March 2021 were £2.6m. The total enterprise value will comprise an upfront cash consideration of £14.2m in addition to performance-related contingent consideration expected to be in the region of £3.0m. The acquisition will be funded from Marlowe’s existing cash resources.

 

Serica Energy 125.7p  £337m (AIM:SQZ)

The British independent upstream oil and gas company with operations centred on the UK North Sea and over 80% gas production provided  an update for the Rhum R3 well. The new completion equipment has been successfully installed into R3 and a flow test has now been performed. A stabilised flow rate of 58.4mmscf/d of gas and 135bbls/d of condensate has been achieved through a 60/64ths inch choke. This rate was constrained by the surface well test equipment on board the WilPhoenix semi-submersible drilling rig and it is expected that the well will be able to produce at higher rates when in production. A diving support vessel has been contracted to install the subsea control equipment required so the well can start producing in Q3 2021. The successful recompletion of R3 will increase the Rhum production capacity utilising the existing facilities located on the Bruce platform and will, therefore, not lead to significant additional CO2 emissions. This is in line with Serica’s stated objective of reducing the carbon intensity (i.e. CO2 per barrel of oil equivalent) of its production operations.

 

SigmaRoc 88p  £246m (AIM:SRC)

The buy-and-build construction materials group announced that from January 2022 its Precast Products Group platform (PPG) will offer Ultra-Low carbon cement-free products for its entire product portfolio, thereby extending the Greenbloc range. In doing so, it will be the first precast products producer in the UK to make this commitment and transition. This announcement follows the launch of Greenbloc – the first ever cement-free alternative to ordinary Portland cement (OPC) concrete blocks – in February 2021.

 

TruFin 80p  £64.6m (AIM:TRU)

TruFin announced a six-month extension to Satago’s commercial pilot with Lloyds Bank of Satago’s software platform for its customers seeking single invoice finance solutions, to enable pilot testing to be concluded. It is anticipated that the trial will conclude during the six-month extension period and, if successful, will lead to a five-year commercial agreement with Lloyds Bank. Both parties are keen to work closely and continue the commercial pilot, in which Satago will develop further integrations with the Bank’s infrastructure and drive additional reach through Lloyds’ regional sales network.

 

Time Finance 28.5p  £26.36m (AIM:TIME)

Ed Rimmer has been confirmed as permanent Group CEO with effect from 1 June 2021. Having previously been COO of the Company, Mr Rimmer was reappointed as Interim Group CEO three months ago. He is a widely experienced senior executive with a strong commercial, financial and operational track record in financial services for over 25 years. He was previously UK CEO of Bibby Financial services, rapidly building the business and doubling its profits to become the largest independent operator in the invoice finance market.

 

 

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