Small Cap Wrap – TMT Investments, Sunrise Resources, Coinsilium and more…

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17 Dec 2020


@HybridanLLP




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What’s cooking in the IPO kitchen?


HSS Hire Group,HSS.L transfer from Main to Aim. Mkt Cap c. GBP70m. Recently raised GBP52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan 2021.




Vector Capital to float on AIM, a commercial lending Group that offers secured loans primarily to businesses located in the UK. Substantially all of the Group’s loans are secured by a first legal charge against real estate. The Group’s customers typically borrow for general working capital purposes, bridging, land development and acquisition. As of 30 September 2020, the Group had a loan book of GBP34.7m, with an average loan size of approximately GBP0.57m. Raising GBP3m. Mkt Cap GBP16m. Due late December.




Schroder BSC Social Impact Trust plc targeting a GBP100m raise. The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Due 22 Dec. Official List (Premium).




Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250m to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Minimum offer size reduced to $125m. Now due 22 Dec.




VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb 2021.




Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, to IPO (Main Mkt Prem). FY20 gross profit of GBP79.2m (+24.5% against FY19) and adjusted operating profit of GBP31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Offer price set at 270p Raising GBP352m. Mkt Cap GBP646.6m. Due on 17 December 2020.




Eddie Stobart Logistics (LON:ESL) converting to an AIM investing company. Name change to Logistics Development Group. Focus sectors: logistics, transport, warehousing and e-fulfilment assets. GBP9m to be raised via a placing and subscription and up to GBP7m via open offer. Market cap c.GBP35.1m. Due New Years Eve.




Reverse take-over under rule 14 by MelodyVR (AIM:MVR) Group of Rhapsody International, trading as Napster. Upon completion of the transaction, Napster will be a wholly-owned subsidiary of MelodyVR Group. The enlarged group will combine the service offerings of MelodyVR and Napster, offering music fans a consolidation of music artist’s repertoires including recorded music, short form video content, long form video content, digitally ticketed live streams, educational videos and immersive AR/VR content, into one premium subscription product. Raising $10.1m. Market cap GBP92.4m at 3.75p. Due 29 December.


Banquet Buffet


Keywords Studios 2,647p GBP1,960m (LON:KWS)


The international technical and creative services provider to the global video games industry, today announces the acquisitions of Indigo Pearl Limited and Jinglebell Communications S.R.L.. The acquisitions will further the Group’s strategy to become the ‘go to’ technical and creative services platform for the global video games industry.


Led by Caroline Miller and founded in 2000, Indigo Pearl is a full service PR agency specialising in the video game sector. For calendar year 2020, Indigo Pearl is expecting to generate revenue of GBP1.8m and adjusted EBITDA of GBP280k. Under the terms of the acquisition, Keywords Studios will pay initial consideration of GBP1.1m in cash and the equivalent of GBP0.5m in new ordinary shares on the first anniversary of completion, which will then be subject to orderly market provisions for a further year. Deferred consideration of up to GBP0.4m in cash will be paid to the seller three years from completion subject to certain conditions being met.


Founded in 1981 by Carlo Forester and based in Milan, Italy, Jinglebell is a boutique recording studio that provides audio recording, music production and sound design for video games and advertisements. Jinglebell is expected to produce revenue of EUR2.1m and EBITDA of EUR0.1m for the year ending 31 December 2020 and under the terms of the acquisition Keywords Studios is paying cash consideration of EUR1.5m and the equivalent of EUR0.3m in new ordinary shares on the first anniversary of completion, which will then be subject to orderly market provisions for a further year .




Coinsilium 2.65p GBP3.6m (AQSE:COIN)


The Blockchain, Open Finance and Crypto Finance venture operator has concluded an agreement with The Gibraltar Philatelic Bureau Ltd for the creation of a commemorative limited edition Cryptocurrency Postage Stamp (the ‘Crypto Postage Stamp’) to be released in Q2 2021. The Crypto Postage Stamp will be tied to the release of a blockchain based Digital Collectible, or non-fungible token (NFT) counterpart, to be exclusively produced by Coinsilium in collaboration with Vietnam-based RedFOX Labs Joint Stock Company (RedFOX) under the terms of a Technical Development and Support agreement announced by the Company on 10 December 2020.




Sunrise Resources 0.26p GBP9.6m (LON:SRES)


Sunrise has today commenced extraction of a large bulk sample of natural pozzolan from its CS Pozzolan-Perlite Project in Nevada, USA. A 500-ton sample of natural pozzolan is being mined this week in collaboration with a large cement and ready-mix company (the CRMC). The sample will be ground in the CRMC’s existing mill and will be used in a number of separate commercial concrete pours where the natural pozzolan will be substituted for a proportion of ordinary Portland cement in the concrete mixes. This collaboration is taking place against a background of ongoing offtake and joint development discussions with the CRMC and follows on from a series of successful bench-scale laboratory tests carried out by the CRMC. The costs of mining and transport of the pozzolan bulk sample to the mill will be shared equally between Sunrise and CRMC and all other cost will be met by the CRMC.




TMT Investments* US$7.89 US$229.8m (LON:TMT)


TMT Investments, the venture capital company investing in high-growth technology companies, announce portfolio company Bolt, a leading international ride-hailing and food delivery company (www.bolt.eu), announced, on 16 December 2020, that it had successfully raised EUR150 million.


The transaction represents a substantial valuation uplift of approximately US$14.1 million (or 64%) in the value of TMT’s investment in Bolt, compared to the previous amount as of 30 June 2020 ($22m). The company have also enjoyed a number of other positive revaluations in the portfolio, representing a material uplift in the Company’s NAV of approximately 15.3%, and when aggregated with the Pipedrive disposal an uplift of 44.1%, from the previously stated figure of US$3.46 per share as of 30 June 2020.




Physiomics* 5.65p GBP5.5m (LON:PYC)


Physiomics, the oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, announced that its existing client, Merck KGaA, has today committed to an initial tranche of projects for 2021 with an aggregate value of GBP270,000. These projects are expected to be completed during the first six to eight months of the next calendar year and will span a range of drug targets and treatment types in both pre-clinical and clinical settings.


As has been the case in 2020, the company expects further contracts to be signed with Merck next year to bring the total anticipated revenue derived from Merck for 2021 to at least that seen in previous years. Although the total expected value of such further contracts cannot be known with certainty, this initial order is greater than the GBP250k announced in December 2019 and the Board expects its strong relationship with this long-term client to continue.




Trinity E&P 9.25p GBP36m (LON:TRIN)


The independent E&P company focused on Trinidad and Tobago, has signed a memorandum of understating with The National Gas Company of Trinidad and Tobago Ltd. (NGC), to explore and develop new projects to enable energy transition in Trinidad and, potentially, in the wider Caribbean and Latin America. NGC has been in operation for over 45 years and is strategically positioned in the upstream and midstream of the natural gas value-chain in Trinidad and Tobago. Its core business activities involve the aggregation, purchase, compression, transmission, sale and distribution of natural gas to industrial and commercial users. It also has non-operated interests in upstream producing assets, both oil and gas. This collaborative initiative is part of Trinity’s and NGC’s wider growth strategies; aiming to derive further value from existing licences, to establish a broader portfolio of energy assets via acquisition and partnerships, and to challenge and further reduce carbon output.




Surgical Innovations 1.7p GBP15.9m (LON:SUN)


The designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery, announced a nationwide distribution agreement with existing US distributor, Adler Instrument Company Inc. , for the Company’s full range of handheld surgical instruments, consolidating its product distribution in the US. The agreement brings a significant increase in the number of surgical territory managers promoting SI-branded products across the US. This five-year exclusive contract is worth c. $12m over its duration is effective from February 1, 2021.




Global Petroleum 0.69p GBP2.7m (LON:GBP)


Further to its announcement of 3 December, the Company reported that the interpretation of the seismic data recently acquired, notably the 2D seismic data over the relatively under-explored eastern part of PEL0094 (Block 2011A), is progressing well. The Company expects the interpretation of this data to enhance significantly the prospectivity already identified in this area. Given the progress made, the Company expects to be able to publish an updated Prospective Resources estimate for PEL0094 in the latter part of January 2021. The Company is also confirms that the farm out process for PEL0094 has now commenced. Global is currently contacting potentially interested companies and the data rooms will open in January 2021.




DeepMatter Group 1.8p GBP16.6m (LON:DMTR)


The company focusing on digitising chemistry, has signed a three-year contract with Thieme Chemistry, which is part of the Thieme Group, an award-winning international medical and science publisher serving health professionals and students for more than 130 years, for the supply of technical data services and access to the Group’s proprietary algorithms. The contract builds on a long-standing relationship between the two businesses, providing Thieme with access to DeepMatter’s services and algorithms to ensure the quality of, and access to, their data.




Plus500 1,449p GBP1,500m (LON:PLUS)


The technology platform for trading Contracts for Difference internationally, has extended its Official Main Sponsorship agreement with Club Atletico de Madrid, for the 2021/2022 season. Plus500 has benefitted significantly from its sponsorship of successful sports teams to date, increasing brand recognition globally, growing brand awareness in important markets and expanding the customer base of the Company in new and existing territories.




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