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Small Cap Wrap – Imperial X, Rockfire Resources, Enteq Upstream and more…

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08 April 2021

@HybridanLLP

*A corporate client of Hybridan LLP

 

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What’s cooking in the IPO kitchen?

 

Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April.

Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor  which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51mm) will be used to fund the Acquisition.  Due 19 April.

NFT Investments plc is an investment company that specialises in non-fungible tokens (NFT). Has applied for admission to the Access segment of the AQSE Growth Market. No funds being raised. Due 16 April.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 2021.   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.”

MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST.  The company has raised £5m giving a market capitalisation on listing of c. £23m.  MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*.   MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.

PensionBee has confirmed its intention to float on the High Growth Segment  of the Main Market of LSE.  The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration, in each case as at 28 February 2021.  The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority  shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April.  

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 April 2021.

Proposed move to AIM from the main market (standard)  by Emmerson (EML.L)  to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work.  

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.

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.
 

Banquet Buffet

Rockfire Resources 0.875p  £7.3m (LON:ROCK)

A Preliminary Scoping Study has returned positive results for a small-scale, open pit mining operation at the Company’s 100%-owned Plateau Gold Deposit in North Queensland, Australia. This study lays solid foundations for in-fill and extension drilling, which is expected to result in an expanded Scoping Study later in 2021.

Preliminary Scoping Study Results include:

· A modest, net positive cash flow, ranging from AUD $6.8m to AUD $19.4m (GBP £3.7m to GBP £10.7m), results from a small-scale, open pit mine. The range of anticipated cash flows dependents on technical and operational variables, however five differing scenarios all resulted in positive cash flow outcomes.

 · Multiple targets within the proposed pit outlines are yet to be drilled and the Scoping Study has identified numerous opportunities to increase gold ounces with additional shallow drilling.

 · Only the top 70 m has been incorporated into the Scoping Study, yet gold up to 16.9 g/t Au has been intersected more than 400 m below surface. There is therefore significant potential to increase the economic outlook of the project based on continued exploration success at depth.

 · 69% of the scoped production originates from JORC Indicated Resources from both the Central and Eastern Breccias.

· Several excellent targets within 250 m of Plateau will be drilled to explore for additional near-surface gold ounces, which are not yet included in Rockfire’s JORC resources.

 

Enteq Upstream 17.75p  £12m (LON:NTQ)

The energy technology company, today announces a trading update for the financial year ended 31 March 2021. Enteq’s trading results for the year ended 31 March 2021 are expected to be in-line with the Board’s expectations, with revenues in the region of $5m and a breakeven adjusted EBITDA.  The cash balance as at 31 March 2021 was $8.1m ($10.2m as of 31 March 2020; $8.8m as of 30 September 2020) reflecting planned on-going investment during the year including the rental fleet, engineering projects and product development.

Enteq’s SABER Tool (Steer-At-Bit Enteq Rotary Tool), a potential ‘game changer’ compared to current rotary steerable systems available, will enable Enteq to enter the Rotary Steerable Drilling service market which has an estimated world-wide annual value of $1.8bn in 2021, of which approximately 40% is accessible by the SABER Tool technology.  The recent product launch resulted in a significant level of enquiries for further technical information.  Field trials for this technology, which incorporates the patents licensed exclusively from Shell and the licensed know-how, are expected to be completed by December 2021. 

 

Tracsis  720p  £211m (LON:TRCS)

The  provider of software, hardware, data analytics/GIS and services for the rail, traffic data and wider transport industries, announced its unaudited interim results for the six months ended 31 January 2021.

· Revenue decreased to £22.2m (H1 2020: £26.4m), with growth in the Rail Technology & Services Division offset by lower sales in the Events and Traffic Data businesses as expected due to ongoing Covid-19 restrictions on their end markets

· £6.1m decrease in revenue in those businesses directly impacted by Covid-19. Revenue growth of 5% across the rest of the Group before the contribution from prior period acquisitions+

· Adjusted EBITDA of £5.4m (H1 2020: £5.6m) only slightly lower than the same period last year, including the positive impact of cost reduction actions taken in response to the pandemic

· Cash balances of £20.8m with no Covid deferrals due to be paid (31 July 2020: £17.9m, 31 January 2020: £26.0m)

· Encouraging start to Q3 trading with high activity levels across large parts of the Group

 

Draper Esprit 814p  £1.1bn (LON:GROW)

The venture capital firm investing in and developing high growth digital technology businesses, today provides an update on recent developments in its portfolio in advance of full year reporting for the year ended 31 March 2021. The Company will provide a full year trading update on 26 April 2021 and will announce full year results on 14 June 2021.

· Strong momentum continues, investing in new portfolio companies across a broad array of technology applications and several follow-on rounds in existing portfolio companies · Invested £162m in year ended 31 March 2021

· Increased investment cadence with £96m invested in the second half of the year, bringing the full year total to £128m, with a further £34m from EIS and VCT co-investment · Earlybird partnership delivering good uplifts with Series C and D rounds from Aiven and Sennder respectively

· Realisations for the year total over £200m with full recent exit from Decibel by way of a trade sale to Medallia, and recent partial realisation of Trustpilot adding to first half realisations of £106m · Strong deal pipeline with over £50m of investment committee approved deals

 

Barkby Group 28p  £38m (LON:BARK)

Portfolio Company  Verso Biosense, an innovator in UK femtech focused on improving women’s health, announced the signing of its second product collaboration agreement with one of the UK’s leading fertility clinics, London Women’s Clinic. London Women’s Clinic will collaborate with Verso, using its uterine monitoring device to refine the technology and biosensing platform to meet the needs of its fertility patients. Verso’s platform captures critical in-vivo, biosensing data for optimisation and personalisation of IVF treatment, providing actionable insights for clinicians and patients. 

The London Women’s Clinic provides world-class fertility care to women and couples across England and Wales. Since it was established in 1985 in Harley Street, it has pioneered many of the routine techniques used to treat fertility today. London Women’s Clinic has regional centres in the South East, North East, and West of England, and Wales.

 

Alpha Financial Markets Consulting 267p  £284m (LON:AFM)

The global provider of specialist consultancy services to the Asset Management, Wealth Management and Insurance industries, provided its pre-close trading update before reporting its results for the year ended 31 March 2021. Following a resilient first half, trading has continued to firm in the second half and the Group expects to report Adjusted EBITDA for the full financial year toward the upper-end of the range of current market expectations. 

Alpha’s consulting teams continue to deliver high-quality client service whilst remote working.  The Group continues to make good progress, to enjoy a healthy new business pipeline and to deliver good levels of new business wins across its geographies.  The Group has also maintained its strong balance sheet, with strong cash collection continuing this financial year.  The Group ended the year with approximately £34m of cash balances and its £20m RCF remains undrawn. 

 

Spectra Systems 188.5p  £84m (LON:SPSY)

Spectra  has received a notice of allowance from the United States Patent and Trademark Office for its technology for disinfecting banknotes from SARS-2 and other biohazards.  The patent is expected to be issued within 6 weeks.  Additionally, patent applications have been filed in other regions worldwide. 

The technology can disinfect five million notes in less than 2 hours and uses nitrogen obtained from the ambient air to create an oxygen-free atmosphere, along with heat, to deactivate SARS-2.

 

Altitude Group  43.5p  £30.7m (LON:ALT)

The operator of a leading marketplace for the global promotional products industry updated on trading for the financial year ended 31 March 2021.

Against a backdrop of difficult trading conditions, the Group has continued to trade positively throughout the period. As a result of continued revenue growth and cost control, performance is anticipated to be in line with the Board’s expectations. Revenue for the quarter to 31 December 2020 was ahead of the Board’s expectations which resulted in gross profit for the quarter of £1.4m and the Group maintains a strong cash balance at 31st of March 2021 of £2.1m versus the last reported position on the 22nd January 2021 of £1.3m.

 

Water Intelligence 740p  £115m (LON:WATR)

The leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water has reacquired its Central Florida franchise within the Group’s American Leak Detection subsidiary .

A few days ago, Water Intelligence communicated that President Biden’s American Jobs Plan would significantly increase market demand for water infrastructure solutions and that the Group would accelerate its strategic growth plan to take advantage of the opportunity.  Today’s franchise reacquisition should be seen in that context as it provides greater scale to corporate operations in eastern Florida, a geography with high demand for water infrastructure solutions.

 

Bango 227.5p  £171m (LON:BGO)

The global platform for data-driven commerce, announces that India’s leading mobile network operator, Bharti Airtel, has expanded its use of Bango Resale technology to offer Amazon Prime Video Mobile Edition. 

Bharti Airtel COO Shashwat Sharma commented, “Expanding our use of Bango Resale technology to the Amazon Prime Video Mobile Edition allows us to offer our pre-paid customers great content, accessible on their favourite device. Bango has proven a valuable partner, we look forward to growing our business with Bango technology.”

 

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Derren Nathan

0203 764 2344

[email protected]

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