Small Cap Feast

Small Cap Feast – 08/12/2021

Dish of the Day:

RentGuarantor Holdings PLC has joined the AQSE Growth Market. The Company provides a rent guarantee service to tenants wishing to rent property in the UK from the Private Rental Sector. The rent guarantee service is an online service where applications can be managed on a secure and bespoke digital platform designed and built by RentGuarantor Holdings PLC. Raise of £125k, Mkt Cap £22.5m.

Off the Menu:

No Leavers Today.

What’s Cooking in the IPO Kitchen?

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission date Late Dec.
Public Policy Holding Company, to join AIM. PPHC, through its wholly-owned companies, operates a portfolio of independent firms that offer public affairs, crisis management, lobbying and advocacy services on behalf of corporate, trade association and non-profit client organisations. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
Libertine to join AIM. Libertine has developed a technology solution for powertrain OEMs, enabling efficient and clean power generation from renewable fuels. Libertine’s linear electrical machines, controls and tools together form a development platform (‘intelliGENTM’) which the Group provides to OEM customers for their product development programmes. The company also provides engineering services and prototype hardware to support OEM customer evaluation of its technology, and incorporation of this technology into customer-led Linear Generator development programmes. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
LBG Media, digital media and youth content publishers to join AIM. The Company is a multi-brand, multi-channel digital youth publisher and is a leading disrupter in the digital media and social publishing sectors. The Group produces and distributes digital content across a range of mediums including video, editorial, image, audio, and experience. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.
Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer and timing TBA.
Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately 1.7m before expenses. First dealings in the shares are expected to commence in December 2021. The flotation is expected to value Lift at approximately £2.7m.
ThomasLloyd Energy Impact Trust plc, a newly established closed-ended investment company which will invest in a diversified portfolio of unlisted sustainable energy infrastructure assets in fast-growing and emerging economies in Asia, seeking to join the Premium Segment of the Official List . Due 14 Dec raising up to $335m.
Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.
LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.
Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa. The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021. Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website). The Company does not intend to raise any capital prior to or concurrent with admission to AIM. The Mkt Cap on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.
DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Due early Dec. Raising £5m.
Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round.
Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due 16th Dec.
ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation. Due Mid Dec.
Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late Nov.
Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.
M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters. Due 20 Dec.

Breakfast Buffet

AdEPT Tech Group 99.4p £307.3m (ADT.L)

One of the UK’s leading independent providers of managed services for IT, unified communications, connectivity, and voice solutions, reports that Datrix, a leading Smart Infrastructure and Cyber Security solutions provider which the Group acquired in April 2021, has secured a strategically important contract with a leading global financial services business. The managed services cyber security package is worth £1m to AdEPT over the next three years and is the second international contract to be secured by the recently acquired business. This follows the success in June, when Datrix won a pan-European contract with Yesss Electrical to deliver a fully managed and highly secure SDWan service.

Agronomics 21.8p £174.3m (ANIC.L)

The leading listed investment company focused on the field of cellular agriculture announced that its portfolio company The EVERY Company has closed its oversubscribed US$127.5m Series C Round by raising a total of US$175m. Agronomics participated in this round on the 4 November, when it announced its US$8m investment and based on this revised Series C Round its investment will equate to an interest of 1.28%. This equates to an estimated portfolio weighting based on the Company’s last reported Net Asset Value of 5.6%. EVERY is a leading precision fermentation company with a key focus on the commercialisation of proteins traditionally derived from animals. Recently, EVERY launched the world’s first animal-free egg protein and collaborated with the juice brand Pressed to produce smoothies containing their protein. This recent fundraise will help drive the scale up of its animal-free protein platform, so that EVERYs sustainable ingredients can have a worldwide reach.

Baron Oil 0.06p £7.6m (BOIL.L)

Baron’s Timor-Leste subsidiary SundaGas Banda Unipessoal, Lda., which holds a 75% operating interest in the Chuditch PSC, has received interim products from the seismic reprocessing of 1,270 km2 of 3D seismic data along the trend of the Chuditch-1 gas discovery. The reprocessing work is being conducted by TGS-NOPEC Geophysical Company ASA at their UK processing centre, critically in close collaboration with Baron’s technical team. Processed to an interim Pre-Stack Depth Migration, these initial data are already providing encouraging indications of improvement in the quality of subsurface imaging around the Chuditch gas discovery and offset prospects, compared to the legacy data. Interpretations from these interim data will now be used to feedback iteratively into the final sophisticated seismic processing, which remains on schedule and budget, with final data delivery to Baron during Q2 2022. The final processed version will be critical in the re-evaluation of the Chuditch discovery and surrounding prospectively, in particular the evaluation of in-place volumes and the location of potential future wells.

Blackbird 30.5p £103.4m (BIRD.L)

The technology licensor, developer and seller of the market-leading cloud native video editing platform, Blackbird, announced a placing at a price of 28 pence per share to raise approximately £8m before expenses. The Placing has been conducted as a private placement under the Company’s existing allotment and pre-emption disapplication authorities and participation has not been made available to members of the public. The estimated net proceeds of the Placing, which will be £7.6m, will be used by the Company to: develop the Company’s technology offering in the New Markets; grow its software engineering, product and business development teams; expand the Company’s patent portfolio; and conduct appropriate research, prototyping and market testing of new technology developments.

Equals Group 62.5p £112m (EQLS.L)

The fintech payments group focused on the SME marketplace, has significantly exceeded full-year expectations for both revenues and Adjusted EBITDA and is accordingly providing the market with a trading update for the period from 1 January 2021 to 6 December 2021 and 1 October 2021 to 6 December 2021. Group revenue for the year to date was £40.4m compared to £26.8m for the same period in 2020 – an increase of 51%. Group revenue for the Period was £11.6m compared to £5.7m for the same period last year – an increase of 105%. As announced on 28 October 2021, both the year to date and the Period benefitted from a material international payments transaction for a large corporate client that generated revenue of £1.5m. This robust trading performance of the Group further underpins the Board’s confidence in accelerating momentum and maintaining growth moving into the final days of 2021 and into FY-2022. In order to drive further growth the Group continues to re-invest and upgrade the sales functions of the business and this will be reflected in higher staff costs in 2022.

Hargreaves Services 433.5p £140m (HSP.L)

The diversified group delivering services to the industrial and property sectors updated on trading ahead of reporting its interim results for the six months ended 30 November 2021. The Board anticipates reporting strong interim results as all of its business segments are trading in line with its expectations. Whilst, as expected, Revenue will be lower than that which was reported for the six months ended 30 November 2020, due to the disposal of coal trading activities in December 2020, Profit before Tax will be higher. This improvement in PBT compared to the previous period is reflected across each of the three business units.

Inspecs Group 380p £385m (SPEC.L)

Inspecs has acquired the partnership assets and liabilities of BoDe Design Vertriebs GmbH & Co. KG (a limited partnership under German law), a distributor of optical and sunglasses frames principally to the German market. Inspecs is currently the largest supplier to BoDe and will pay an upfront cash consideration of approximately EUR1.76m from existing cash resources and deferred cash consideration based on financial performance over the next three financial years. BoDe is expected to generate revenues of approximately EUR3.75m in 2021 and the acquisition is expected to be earnings enhancing in 2022.

MS International 223p £36.1m (MSI.L)

HY Oct 21 results from the Company which comprises four diverse operating divisions, ‘Defence’; ‘Forgings’, ‘Petrol Station Superstructures’ and ‘Corporate Branding’. Revenue in the latest period increased significantly to £33.16m (2020 £26.34m) producing a profit of £0.77m (2020 loss £1.08m). Basic earnings per share 3.4p (2020 loss 6.6p). The balance sheet remains strong with cash at £15.54m (2020 £14.01m). Furthermore, orders received in the period, when added to those already ‘in hand’, have placed the Group in a very advantageous position despite the global pandemic which will, no doubt, continue to disrupt current and prospective business activity across our operations. “We remain firmly of the opinion that the Company is better placed than it has been for some time, despite the current difficulties brought about by the pandemic and its consequences. All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2020 1.75p) payable to shareholders on the 14th January 2022.”

Sureserve 91.5p £147.5m (SUR.L)

The compliance and energy services Group, announces that it has acquired the entire issued share capital of CorEnergy Limited, a business focused on delivering sustainable energy solutions for public and private sector organisations. CorEnergy was established in 2014 to provide support to public and private sector organisations to assist to reduce energy, improve efficiency and save carbon by providing multi-disciplinary capabilities across a range of energy efficient products, including: LED lighting/controls, solar PV, EV charging, battery storage and renewable heating solutions. CorEnergy’s key sectors include Education, Healthcare, Government, Manufacturing and Distribution. The maximum total consideration payable for CorEnergy is £7.5m, with an initial £5.9m payable on completion, to be satisfied through £2.9m in cash and the rest in shares. The transaction is to be achieved on a debt free / cash free basis. CorEnergy has grown through the successful delivery of a number significant contracts and in the year ending 31 December 2021 is expected to achieve revenues in excess of £6m and EBITA of £1m.

Synairgen 185.7p £374m (SNG.L)

Synairgen presents in vitro potency data for interferon beta against SARS-CoV-2 Variants and lung antiviral biomarker data for inhaled SNG001 at the 8th ESWI influenza conference. In vitro data demonstrate antiviral activity of SNG001 against multiple variants of SARS-CoV-2. Clinical biomarker data show inhaled SNG001 stimulates lung antiviral responses. “This study demonstrated potent antiviral activity of SNG001 against SARS-CoV-2 including Alpha, Beta and Gamma variants, which is important given the continuing emergence and global spread of variants of concern,” Phillip Monk, Ph.D., Synairgen Chief Scientific Officer, commented. Synairgen is investigating the in vitro activity of SNG001 against the Delta and Omicron variants of SARS-CoV-2 and will make data available as soon as possible.

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.