Small Cap Feast

Small Cap Feast – 03/09/21

Dish of the Day:

CML Microsystems has joined AIM from the Main Market.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September
Reuters reports that Oxford Nanopore, a provider of rapid COVID-19 tests to the UK’s national health service, is working with banks to launch an initial public offering on the London Stock Exchange in the coming weeks. The company aims to build on the 2.48 bln pounds ($3.42 bln) valuation achieved in a funding round in May, two sources familiar with the matter said. The Oxford-based life sciences firm, which counts IP Group and Singapore’s Temasek among its shareholders, provides DNA/RNA sequencing technology for sectors such as biomedical, pathogen, plant and animal scientific research, infectious diseases and food and agriculture.
VSA Capital has applied for admission to the AQSE Growth Market. VSA Capital is an international investment banking and broking firm, with offices in London and Shanghai, providing corporate finance, advisory and capital markets services to private and public companies Offer tba. Due 9 Sep
Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.
Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.
South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. Timing and offer TBA.

Breakfast Buffet

Altus Strategies 79p £63.5m (ALS.L)

Altus has completed the second and final closing of the recently announced agreement to acquire an effective 0.418% net smelter return royalty (NSR) interest on the producing Caserones Copper Mine, located in the Atacama region of northern Chile (see Altus news releases dated 17 and 23 August 2021). Altus is acquiring the NSR interest for US$34.1m through a strategic 50:50 partnership with NYSE American and TSX Venture exchanges listed, EMX Royalty Corporation. Steven Poulton, Chief Executive commented: “”Following this Acquisition, Altus will receive significant quarterly royalty income and will have long-term exposure to copper. We expect the demand for copper to remain strong in the years ahead, as the global economy seeks to decarbonise in parallel with continued infrastructure development, urbanisation and wealth creation in emerging markets. Altus is currently assessing a number of other potential royalty acquisitions globally, alongside our on-going royalty generation programmes in Africa.”

Armadale Capital 5.3p £28.2m (ACP.L)

Formal confirmation and receipt of the Mining Licence for its 100%-owned Mahenge Graphite Project in south-east Tanzania from the Tanzanian Ministry of Energy and Minerals. The Mining Licence provides the Company with exclusive development and mining rights over the graphite resources within the 8.54km2 Mining Licence and is a major de-risking milestone for investors. Transformational permitting milestone for Armadale to build a significant high-grade graphite mine with robust economics (DFS showing pre-tax NPV of $430m, IRR of 91% and Payback Period of 1.6 years).

Base Resources 17.75p £203m (BSE.L)

Base Resources has completed a pre-feasibility study on the potential for mining higher grade subsets of the Bumamani and Kwale North Dune deposits (Bumamani PFS) to extend mine life at its 100% owned and operated mineral sands operations in Kwale County, Kenya (Kwale Operations). The Bumamani PFS concludes that it is economically feasible to mine higher-grade subsets of the Bumamani and Kwale North Dune deposits concurrently with the Kwale South Dune deposit, which would extend the mine life of Kwale Operations by 7.5 months to July 2024.Estimated 11.4m tonnes of material to be mined to produce an estimated 34,000 tonnes of rutile, 113,000 tonnes of ilmenite and 13,000 tonnes of zircon. The Bumamani PFS is a significant further forward step in achieving Base Resources’ goal of extending the mine life at Kwale, providing additional time to develop further opportunities within Kenya whilst maintaining operational continuity. A definitive feasibility study is now underway to improve the accuracy of project estimates.

Circle Property 205p £58.5m (CRC.L)

Circle Property has completed the sale of 135 Aztec West in Bristol to Assura Aspire Limited. The sale price of £3.961m represents a 156% increase (pre-refurbishment cost) and a 62% increase (post refurbishment cost) on the 31 March 2021 valuation of £1.55m. The building was refurbished in the first half of 2021 at a cost of approximately £2.175m less tenant contributions of £0.725m resulting in a net cost to the Company of £1.45m. The cash proceeds from the sale will be utilised to reduce the Company’s gearing from the current level.

Eight Capital Partners 0.055p £0.89m (AQSE:ECP)

Eight Capital Partners, whose strategy focuses on working with, and investing in, technology, media, telecoms and financial services businesses including listed investing companies, announced the launch of EUR25m 4.8% Fixed Rate Five-Year Bonds which are to be listed on the Vienna Stock Exchange. As announced recently in the RNS of 25 August 2021, the Company is seeking to expand its balance sheet by raising new equity capital and the issue of other securities by the Company in stages, in the short-term. The creation of the New Bonds is an important step in the delivery of this strategy. As it moves forward, other developments may include an equity placing via an open offer to all shareholders. Warrants and / or other securities may also be included in the capital raise.

EPE Special Opportunities 425p £125.4m (ESO.L)

Appointment of Michael Gray as non-executive Director with immediate effect. Mr Gray joined The Royal Bank of Scotland in 1983, retiring in 2015 after being Managing Director (Corporate) of RBS International for 10 years. During his 32 years at the firm Michael covered a broad spectrum of financial services including corporate and commercial banking, funds, trusts and real estate. Mr Gray currently holds a number of non-executive positions across private equity, infrastructure and fund management. Michael’s appointments currently include non-executive directorships of Triton Investment Management (a Swedish private equity group), GCP Infrastructure Investments (a FTSE 250 listed company), J-Star Jersey Company Limited (a Japanese private equity group), Foresight Enterprise VCT plc (a listed venture capital fund), Jersey Finance Limited (a Jersey finance not-for-profit), JTC plc (a FTSE 250 listed trust and corporate services company) and TEAM plc (a listed wealth management company). The Directors are pleased to welcome Michael to the Board and are confident his experience in private equity and wider financial services will be a valuable addition to the Company.

Falcon Oil & Gas 9.2p £81.2m (FOG.L)

Results of the production log test at the Amungee NW-1H well. The results suggest a normalised gas flow rate equivalent of between 5.2-5.8 MMscf/d per 1,000m of horizontal section. Amungee is located in the Beetaloo Sub-basin, Northern Territory, Australia and the testing conducted is part of the 2021 work programme which is operated by Falcon’s joint venture partner, Origin Energy B2 Pty Ltd., a wholly owned subsidiary of Origin Energy Limited. Philip O’Quigley (CEO of Falcon) commented: “With our unique and extensive position in the Beetaloo Sub-basin, this is really exciting news for Falcon shareholders and this significant development provides line of sight to the commercialisation of the Beetaloo, for which we remain carried for further activity. A recent report by an industry analyst suggests that gas flows greater than 3MMscf/d from a 1,000m horizontal well are required to demonstrate the commerciality of the Beetaloo. Not only does this test result significantly exceed these parameters and significantly increase our assessment of the Velkerri dry gas play, but it also puts the Beetaloo on a par with other shale gas basins in North America. While we wait for further news from our operations at Kyalla 117 N2-1H ST2 and Velkerri 76 S2-1, we look forward to working with our JV partner, Origin, in establishing the next phase of work on the Middle Velkerri B Shale. With other drilling activity in neighbouring Santos-operated blocks targeting the Velkerri dry gas play, this is an important moment for the nationally significant Beetaloo Sub-basin.”

Mercia Asset Management 38.8p £175.2m (MERC.L)

The proactive, regionally focused specialist asset manager with c.£940m of assets under management, announced a significant syndicated investment into existing direct investment portfolio company Locate Bio Limited, a Nottingham-based business developing a range of orthobiologics. This investment into Locate Bio consists of a syndicated £10m Series A round in which Mercia has made a direct investment of £1.6m, alongside £4m from Mercia’s third party managed funds, which included EIS and VCT capital, together with £3m from BGF and £1.4m from other syndicate partners. This funding round has increased Mercia’s fully diluted direct investment stake to 18.1%, with Mercia’s combined managed funds’ fully diluted stakes now totalling 24.6%. Locate Bio was initially backed in April 2018 by Mercia’s EIS funds. Locate Bio’s products will be used by orthopaedic surgeons to accelerate the natural repair of bone and cartilage. Addressing a multi-billion pound global market, Locate Bio currently has four products going through trials, the first targeting formal market approval by 2022. This £10m round will support the next stages of these trials including its lead bone graft solution (“LDGraft”) as part of the FDA approval process, as well as the development of additional products acquired last year.

President Energy 1.95p £39.8m (PPC.L)

Update in relation to the farm-out agreement in relation to the Pirity Concession, Paraguay. On 8 June 2021, it was announced that a conditional farm-out agreement had been executed and that completion of the agreement was conditional on the approval by the relevant regulatory authorities in Paraguay to the transfer of interests contemplated under the said agreements and also the prolongation of the concession terms for a defined period of time. President confirms that this latter condition has now been satisfied and the term of the exploration concession will now expire on 12 September 2023. If a discovery is made in the meantime, application can be made to convert the relevant area into an exploitation licence. Steps to satisfy the remaining condition continue with the objective of full satisfaction of the conditions by the end of September 2021. At the same time, the expiration time for Hernandarias exploration Concession has been extended to 22 November 2023.

Symphony Environmental Technologies* 27.75p £49m (SYM.L)

Following the recent approval, from the U.S. Food & Drug Administration for its d2p antimicrobial food contact technology, Symphony has now received approval from Health Canada for its use in bread packaging. Approval for Symphony’s d2p antimicrobial food contact technology, applies to polyolefin and polyester multi-layer films for wrapping bread, so as to inhibit the growth of bacteria on the surface of the packaging film, which is vital in a very hygiene-conscious industry. Symphony’s CEO Michael Laurier said “We have been working for some time with customers in Canada, and approval from Health Canada now enables this project to proceed more quickly to commercialisation.”

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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 with “unsubscribe me”.