Small Cap Feast – 11 September 2020
Dish Of The Day:
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What’s Cooking In The IPO Kitchen?
Guild Esports a UK-based owner and developer of esports teams, has announced its intention to seek a listing of its ordinary shares to the Standard Listing segment of the London Stock Exchange this autumn. its founding shareholders include David Beckham, former football player and captain of England, and now co-owner of new MLS team Inter Miami CF.
HOME REIT intends to float to the Main Market raising up to £250m. The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless. Due Mid October
S-Ventures – The Company will look to identify investment opportunities in the wellness sector within the UK and Europe. Due 16 Sep on the Aquis Exchange.
Sativa Wellness Group—(Canadian Securities Exchange: STIL) renamed from Stillcanna Inc following the conditional acquisition of Sativa Group (AQSE:SATI) to list on the AQUIS Exchange. A fully integrated European seed to consumer CBD group with the pricing, products, and stability to meet the CBD market demand in the medium term. With world-class extraction and formulation experts, an agricultural team that has over 20 years’ experience farming hemp, along with laboratory testing capabilities, the group has established itself globally as a trusted source of high-grade, premium wholesale CBD brands and products.
Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List
The Hut Group. Expected intention to float on the Main Market. THG is a vertically integrated digital-first consumer brands group, retailing its own brands in beauty and nutrition plus third party brands, via its proprietary technology platform to an online and global customer base. For the year ended 31 December 2019, THG’s revenue was £1.1 billion, up 24.5 per cent. year-on-year, and its Adjusted EBITDA was £111.3 million, representing an Adjusted EBITDA margin of 9.8 per cent . The Company has experienced an acceleration in growth during 2020, with revenue of £676 million, up 35.8 per cent. on the equivalent prior year period , achieved in the 6 months to 30 June 2020, which the Directors believe evidenced the non-discretionary nature of the nutrition and beauty categories .
Kibo Energy PLC, the multi-asset Africa focused energy company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc . Targeted for Q4 2020. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.
Belvoir Group 155p £54.4m (AIM:BLV)
The UK’s largest property franchise announces that it has been notified by Mike Goddard, founder and former chairman of Belvoir of his intention to sell up to 2,000,000 ordinary shares of the Company at a price of not less than 150 pence per Placing Share. The Placing Shares represent up to approximately 5.7 per cent. of the issued share capital of the Company. The Placing will be effected by way of an accelerated bookbuild to institutional investors which will be launched immediately.
B90 Holdings SUSPENDED (B90.L)
The online marketing and operating company for the gaming industry, announces that it is has raised, in aggregate, €450,000 (approximately £408,000) pursuant to subscriptions for convertible loan notes . The Convertible Loan has a three-year term and a 5% annual coupon, payable in arrears on 30 June and 31 December, with the next instalment due to be paid on 31 December 2020. The Convertible Loan is convertible at any time by the investors at a price of 5 p
Empyrean Energy 4.7p £22.2m (AIM:EME)
The oil and gas development company with interests in China, Indonesia and the United States announced a £640.5k placing at 4.5p (7.2% discount to yesterday’s close) with 1 for 1 warrants at 9p. Has also raised £200k at 5 p pursuant to its £10m equity placing facility announced with Long State Investment Ltd announced last December. Tom Kelly, CEO of Empyrean, commented on the Placing:
“Together with the placement to Long State, this placing provides the necessary working capital and time for Empyrean to progress several strategic project and funding alternatives and position itself in preparation for the advancement of its project portfolio in the near term.”
CentralNic 84p £161m (LON:CNIC)
The global internet platform that derives revenue from the worldwide sales of internet domain names and related services announced that, further to the Company’s announcement released at approximately 4.50 p.m. on 10 September 2020, the Bookbuild has closed and the Group has raised gross proceeds of £30 million through the successful private placing of 40,000,000 Placing Shares, representing 20.8% of the existing Company’s issued share capital. The Placing Shares were placed at a price of 75 pence per Placing Share, representing a discount of c.6.0% to the last closing price of CNIC, and the Placing was significantly oversubscribed.
The net proceeds will be used to fund the consideration and fees in respect of the acquisition of the Zeropark and Voluum businesses including all material trade and assets pertaining thereto (together being “Codewise”), from three Polish based entities (the “Acquisition”). The total consideration for the Acquisition is USD 36 million, payable in cash upon completion. The Acquisition is expected to be significantly earnings enhancing immediately upon completion. The Zeropark and Voluum businesses together serve over 6,000 customers across 190 countries. In the 12 months to 30 June 2020, on an unaudited basis, Codewise generated revenue of USD 60.3 million and pro forma adjusted EBITDA of USD 7.4 million.
88 Energy 0.355p £31.7m (AIM:88E)
Update related to results from the Charlie-1 appraisal well, on the North Slope of Alaska. Highlights include:
Final petrophysical interpretation, using sophisticated Laminated Sand Analysis, substantially upgrades net hydrocarbon pay in the Charlie-1 well.Interpretation integrates log data and advanced lab analysis of cores taken during drilling, including excellent liquid hydrocarbon saturations from both Dean Stark and core NMR.
Increase in pay despite higher cut off values being used to determine pay zones. Pay zones also high graded vs initial interpretation with lower water saturation / higher oil saturation and better average porosity
Final petrophysical interpretation will now be integrated into revised mapping of the Seabee and Torok discoveries to determine resource estimates
Nostra Terra Oil & Gas 0.35p £1.33m (AIM:NTOG)
The oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, announced, further to its RNS on 2 September 2020, that it has completed the acquisition of a 100% Working Interest (“WI”) in the Caballos Creek Oil Field, which is located in Atascosa County Texas.
Acquisition completed in one month from asset identification
Financed 100% without dilution
Immediately accretive in terms of cashflow and production
30 bopd current production (gross), which increases Company-wide production by circa 25%
Additional acquisitions being assessed
Safestyle UK 45.15p £60m (LON:SFE)
The leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, today issues an update following an announcement made by UK Window Group of which the Group’s PVCu profile supplier Duraflex is a part.
UK Window Group yesterday announced that certain assets of the Company, including all assets utilised by Duraflex, have been sold to a subsidiary of its current owners. This is part of a wider strategic restructuring programme that it believes will secure the long-term future of the Company with a much improved financial position.
Following this restructure by UK Window Group, the Board does not anticipate any major interruption to our supply of PVCu profiles. Supply chains generally remain stretched by recent good levels of demand in the industry but these challenges will be manageable over the coming months.
Maintel Holdings 212p £30.4m (AIM:MAI)
Maintel, the cloud and managed service specialist, announces that it has appointed Dan Davies, its Chief Technology Officer, to the Board with immediate effect.
Mr. Davies has approximately 20 years’ experience in the managed services sector and has worked with the Company since 2016 initially as Director of Sales Operations and then latterly as Software & Cloud Technology Director and as Chief Technology Officer since January 2020.
China Nonferrous Gold 12.75p £48.8m (AIM:CNG)
The mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, announced that Kryso Resources Limited, a wholly owned subsidiary of the Company, has extended the procurement agreement with China Nonferrous Metals International Mining Co. Ltd (“CNMIM”), the Company’s 38.36% shareholder, previously announced on 8 February 2018.
Under the agreement which CNMIM will continue to act as agent for Kryso Resources Limited to procure equipment, spare parts and other materials required for the Pakrut project. All terms will remain the same as the original agreement (see announcement dated 25 May 2016) save for the total amount to be procured will be limited to US$8 million.
As with the previous agreement, Kryso Resources Limited will retain the final decision in relation to the purchasing of all goods and for acting as agent for LLC Pakrut, CNMIM will also continue to be paid a commission of 5% on all goods procured. The Agreement, governed by the law of China, is valid until January 1, 2023.
Hurricane Energy 3.2p £64m (LON:HUR)
HY Jun 20 results and Technical update –Revenues of $81.9 million in H1 2020 from seven liftings of Lancaster crude (H1 2019: $22.5 million). Despite the significant volatility in oil prices during the period, the Company generated $21.9 million (H1 2019: $6.1 million) of operating cash flow due to low cash production costs of $18.2/bbl (H1 2019: $24.0/bbl)
Loss after tax for the period of $307.7 million (H1 2019: Loss of $21.4 million), including $238.9 million (H1 2019: $nil) relating to the impairment of the Lancaster field and a $34 million credit (H1 2019 : $23.5 million charge) in relation to the fair value of the Convertible Bond.
Lancaster EPS production for September to December 2020 is expected to average 12,000-14,000 bopd, based on production from the 205/21a-6 well on natural flow, expected decline rates and 95% FPSO uptime. Lower oil prices and reduced production expectations will negatively impact anticipated future cash flows, despite the expected reduction and deferral of licence commitment well spending. Consequently, the Company intends to engage with all key stakeholders regarding its forward work programme, capital allocation and financing arrangements.
The Lancaster field is more complex than previously thought. Preliminary analysis suggests that rather than being primarily a basement reservoir, Lancaster has important oil-bearing sandstones onlapping the basement flanks, which may contain significant volumes of oil. Further work is required in order to understand their impact on current reservoir performance and their ultimate potential. The Lancaster oil water contact (“OWC”) is now estimated to be at 1,330 metres TVDSS, compared to the range of 1,597-1,678 metres TVDSS in the Company’s 2017 Competent Person’s Report (“2017 CPR”). This shallower OWC is consistent with the observed earlier and higher water production, and more rapid reservoir pressure decline, than was originally anticipated. Reflecting these new technical interpretations, the Company’s unaudited estimate of recovery from the two existing Lancaster Early Production System (“EPS”) wells assuming no further activity has been reduced to 16.0 MMbbls from 37.3 MMbbls. Considering oil produced to end August 2020, remaining 2P reserves at 1 September 2020 are estimated at 9.4 MMbbls (subject to economic limit test).
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