Small Cap Feast

Small Cap Feast – 06/09/21

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA
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

AfriTin Mining 5.25p £58.4m (ATM.L)

The company with its flagship asset, the Uis Tin Mine in Namibia, updated on its lithium and tantalum by-product development programme and announced a focused geological exploration drilling programme. Preliminary results from lithium beneficiation test work indicate substantial upgrade potential; Tantalum by-product development progressing to pilot processing design phase; and Initiation of an 8,000 metre lithium and tantalum exploration drilling programme over the next 12 months.

Avacta 140p £355m (AVCT.L)

The clinical stage biopharmaceutical company developing innovative cancer therapies and powerful diagnostics based on its proprietary Affimer® and pre|CISION™ platforms, announces new appointments to its Scientific Advisory Board (SAB), reflecting the progress of the Therapeutics Division and Avacta’s transition to a clinical stage Company. James Spicer is Professor of Experimental Cancer Medicine at King’s College London and Consultant in Medical Oncology at Guy’s & St. Thomas’ Hospitals, London. He has established and runs a world-leading Phase 1 clinical trials programme in solid tumour oncology at Guy’s Hospital, where the portfolio of studies includes novel immunotherapies discovered and developed at King’s as well as many externally sponsored studies. Krishna Komanduri is Chief of the Division of Transplantation and Cellular Therapy, and Associate Chief Medical Officer for Clinical Innovation, at the Sylvester Comprehensive Cancer Center, Miami. He is also a Professor of Medicine, Microbiology and Immunology and a physician-scientist with a laboratory focusing on T-cell immunology in cancer. Dr. Komanduri serves on the United Health Care Oncology Advisory Committee and is a past Chair of the American Society of Hematology Scientific Committee on Host Defense, is the current Chair of the ASTCT Cellular Therapy Committee and Chair-Elect of the Government Relations Committee. Stéphane Champiat MD, PhD is a physician at the Gustave Roussy Cancer Center in Paris, where he focuses on the development of cancer therapeutics, in particular, new immunotherapies. He has been principal investigator or co-investigator of more than 50 Phase I clinical trials run by many of the world’s leading pharmaceutical and biotech companies. He is particularly involved in the coordination of the immunotherapy toxicity management program and the development of the intra-tumoral immunotherapy strategy at Gustave Roussy.

Block Energy 2.6p £16.275m (BLOE.L)

The development and production company focused on Georgia, announced the proposed appointment of Dr Kenneth “Ken” Seymour as an independent Non-Executive Director, subject to the completion of the Nominated Adviser’s usual regulatory due diligence checks. Dr Seymour has worked with major and minor petroleum Exploration & Production companies for over 40 years as drilling engineer, drilling superintendent, drilling manager, general manager, director and adviser in the North Sea and on international assignments in Netherlands, China, Pakistan, Angola, Nigeria and Indonesia. Ken is currently an independent consultant focusing on dispute resolution, drilling optimisation and geothermal energy for HKA Global, Seplat Energy and Ceraphi Energy.

Drumz 0.575p £2m (DRUM.L)

Drumz has exercised its option to acquire a further 5% in Acuity Risk Management Limited, in which Drumz already has a 20% shareholding, thereby increasing its shareholding to 25%, for a cash consideration of £125k. Acuity’s product STREAM™ is an Integrated Risk Manager (“IRM”) software product. STREAM™ is used by private and public sector clients to manage their cyber security and other enterprise risks. Gartner, the global research and advisory firm, has identified Acuity and its product STREAM™ in major reports in 2021. Gartner Peer Reviews on IT Risk Management, STREAM™ is the number one product. Gartner survey on Hype Cycle™ for Cyber and IT Risk Management, 2021 covers Acuity and STREAM™. Acuity has launched a significant upgrade to STREAM™ which offers users enhancements for productivity, workflow, user management, security and audit. Additionally, Acuity has secured ISO 27001 status, the international standard for management and protection of information assets and security. Additionally, Acuity has been shortlisted for ‘Cyber Security Solution of the Year’ in the National Technology Awards, 2021. Acuity’s business continues to expand, there have been two recent new business wins with a value of approximately £250k.

Haydale Graphene 7.05p £30m (HAYD.L)

The global advanced materials group, announced that the Company has signed a Memorandum of Understanding with Viritech Limited. Viritech is developing technologies to deliver advanced hydrogen powertrain solutions for the automotive, aerospace, marine and distributed power industries and Haydale will provide Viritech with consulting engineering support services, including pressure vessel design, structural analysis, and material science analysis. Viritech are world leaders in the development of integrated hydrogen powertrains and, through its technical partnership with Horiba MIRA, has access to 40 major engineering facilities and over 600 engineers onsite in Nuneaton as well as MIRA’s engineering network across the Midlands. Viritech’s focus is on areas where hydrogen fuel cells offer immediate benefits – where the effectiveness of batteries is compromised by mass-compounding or power, range and duration requirements increase, or long-term energy storage is required.

Nightcap 19.5p £36.2m (NGHT.L)

Nightcap has entered into a lease for a new London Cocktail Club bar at 78 Queen Victoria Street in Central London. The site covers an area of approximately 1,500 square feet with a 1:00 am license. The site is expected to be open before the end of the calendar year and will have an unrestricted capacity of 150. Nightcap continues to ramp up its new site roll-out and currently has a further five sites in legal negotiations across several of its brands.

Norman Broadbent 6.75p £3.7m (NBB.L)

The Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), announced that Kevin Davidson will be joining the Board as Chief Executive Officer effective from today. Kevin has extensive executive level experience in the recruitment sector. Most recently, Kevin was Managing Director of leading specialist executive search and leadership advisory firm, Ducatus Partners, a division of Airswift Holdings Ltd, and prior to that was CEO of Maxwell Drummond International, an international boutique executive search firm, where he spent 15 years in various roles including CEO and COO. In addition to his leadership and sector expertise, Kevin has a 20 year history of building businesses in the UK and internationally, including managing global operations and setting up new offices internationally.

Pelatro 40.75p £18.5m (PTRO.L)

The precision marketing software specialist announced a trading update ahead of the release of the interim results for the six months ended 30 June 2021. Customer activity has continued throughout the summer months, including various new change requests which will be delivered in 2021. Additionally, some of the Group’s existing managed services contracts contain provisions for gain share revenue for Pelatro over and above the minimum contractual payments, these provisions are now producing attractive revenue for the Group, again demonstrating the efficacy of their software solutions and value to our customers. The resulting additional revenue gives the Directors full confidence in meeting its revenue target for the year, with current visibility standing at approximately $7.2m. Following the equity fund raise in July, the Group has begun its investment in people and marketing in the “Non Telco” space (where non telco brand campaigns and adverts are sent to consumers via their mobile phone), and to date has hired two people, including a senior manager with 12 years’ relevant experience who is heading the team. Discussions are underway with prospective customers.

Powerhouse Energy 5.7p £224m (PHE.L)

The UK technology company commercialising hydrogen production from waste plastic, has noted the comments in the UK press at the weekend in relation to a potential agreement between DMG® licensee Hydrogen Utopia International PLC and Linde. Linde has finalised a technical feasibility evaluation to deploy the syngas clean-up and hydrogen extraction of Powerhouse Energy DMG® technology. HUI and Linde are in discussions to enter into an agreement to develop a plant in Konin, Poland which would use Powerhouse’s technology. There can be no guarantee such an agreement would be finalised and any agreement regarding building a facility would be subject to material conditions including financing, permitting and planning permission. Powerhouse will update the market with any further developments at the appropriate time.

Wishbone Gold 10.25p £17.7m (WSBN.L)

Wishbone announced the signing of the crucial Land Access Agreement with the Western Desert Lands Aboriginal Corporation (Jamukurnu-Yapalikunu) acting on behalf of the Martu People. Wishbone has a group of highly prospective properties in the Patterson Ranges area: the Red Setter project located 13 km south-west of Newcrest Mining’s Telfer Gold-Copper mine, two smaller tenements to the east of Red Setter (the Golden Retriever and Short-Haired Pointer projects both of which are located between Telfer and Havieron) and the Cottesloe Project, located 55 km south-west of the Telfer Gold Mine and about 35 km south-east of Red Setter. This agreement covers all of these properties and allows the Company to move forward with a Heritage Survey to establish and verify if there are any aboriginal sites of cultural significance on the properties. Following this we can finalise the access for the drilling programs with WDLAC, which have already been approved by the Western Australian Government’s Department of Mines, Industry Regulation and Safety.

Head Chef:

Emily Liu, CFA, CAIA
0203 764 2344

Sous Chef:

Sacha Morris
0203 764 2345

*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”.