Small Cap Feast

Small Cap Feast – 06th March 2017

Dish of the Day:

Sirius Real estate—The operator of branded business parks providing conventional space and flexible workspace in Germany  has joined the Main Market

Anglo African Oil & Gas is due to join AIM today raising £10m

UP Global Sourcing Holdings – The innovative branded consumer goods group has joined the Main Market with a £52.6m vendor sale at 128p.


Off the Menu:

As per the above Sirius Real Estate has left AIM for the Main Market

Glenwick has delisted from AIM.


What’s Cooking in the IPO Kitchen?

Foresight Solar Fund Limited— Seeking to raise £50m on Main Market investing in a diversified portfolio of predominantly UK ground-based solar Photovoltaic assets

BioPharma Credit—Targeting $300m + raise on LSE. “This investment trust will give investors access to debt investments tied to the fast growing life sciences industry, offering predictable cash flows over a sustained period of time.” Admission due 27 Mar.

Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.

Anglo African Oil & Gas— £10m raise Acquiring stake in producing near offshore field in the Republic of the Congo. Admission due 6 March.

Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime.  Admission due 7 March


Breakfast Buffet

AFC Energy (AFC.L) 15p £58.64m

The industrial fuel cell power company, has received confirmation from PowerHouse Energy plc (PHE.L) of the Company’s first commercial sale of a small-scale alkaline hydrogen fuel cell system.  In accordance with the order from PowerHouse, AFC Energy will deliver the system once all parties are satisfied and it is confirmed that the PowerHouse G3-UHt Ultra-high temperature waste gasification system has been successfully recommissioned and is generating a hydrogen stream specification appropriate for the operation of the AFC Energy proprietary fuel cell system.


Touchstone Innovations(IVO.L) 288p £464.3m

Touchstone (formerly Imperial) has led a £12.0m funding round in Garrison Technology Limited a cyber security company based in London. Innovations has committed £3.85m to the round alongside BGF Ventures, NM Capital and existing angel investors. Innovations first invested in Garrison in 2015 and following this new investment, now holds a 22.5% stake in the Company. This is likely to result in a net fair value gain on Innovations’ existing investment of ca. £3.0 million.  Garrison has developed an anti-malware product that effectively blocks the highest impact cyber threats to modern organisations, i.e. internet-borne targeted attacks. Garrison’s unique technology enables a previously unachievable blend of ultra-secure internet connectivity, user experience and enterprise scalability.


4D Pharma (DDDD.L) 605p £391.89m

The company focusing on the development of live biotherapeutics, has updated on the development and first clinical trial of its proprietary diagnostic platform, MicroDx. Interim analysis of data generated in the study has revealed: There are significant differences between the microbiota profiles of IBS patients and healthy subjects. The microbiota of IBS clinical subtypes are not significantly different, supporting the rationale for Blautix as a therapy for all IBS subtypes.   MicroDx is able to differentiate IBS patients from healthy subjects based on metabolite profiles. “The exceptional efforts of our team have potentially opened the way for a point of care diagnostic for IBS, and provided the means to monitor our therapeutic intervention Blautix, our clinical stage programme for the  treatment of IBS.” MicroDX will be incorporated in other trials.


FairFX (FFX.L) 40.75p £42.3m

The multicurrency payments specialist, has agreed a deal with Sky Media, the advertising arm of Sky, to be a sponsor of Sky Sports F1 for the 2017 season; having previously sponsored the channel in 2015. The campaign commences with the first practice session at the Australian Grand Prix™ on March 24th, and runs until the conclusion of the season at the Abu Dhabi Grand Prix™ on November 26th. Sky Sports F1 is the only place where viewers can watch all 20 races live in HD and now ultra HD. FairFX took the decision to return as a sponsor following an extensive analysis of the performance of the previous sponsorship in 2015, which clearly demonstrated the benefits in terms of brand awareness as well as cost effective-customer acquisition. FYDec17E rev £11.16m and PBT of £0.52m.


Versarien (VRS.L) 16p £19.4m

The advanced materials group has completed a  fundraising at 15p in conjunction with an offer via PrimaryBid. The fundraising was oversubscribed and the company has extended the size of the round to £1.5m from £1m. “The funds raised will allow us to significantly scale up both our graphene manufacturing capabilities and our marketing efforts to take advantage of the substantial commercial opportunities we are seeing.”


Abzena (ABZA.L) 36.5p £50.3m

The life sciences group providing services and technologies enabling the development and manufacture of biopharmaceutical products, notes that one of the ‘Abzena inside’ Composite Human Antibody™ products previously disclosed as being in Phase I trials is moving forwards into a Phase II clinical trial. The product is being developed by an un-named major US pharmaceutical company for the treatment of neurodegenerative conditions and has been studied to date in two Phase I clinical trials.


MetalNRG (NEX:MNRG) 1.95p £1.3m

The natural resource investing company, announced the appointment of Paul Johnson as CEO with immediate effect. Paul was previously a non-exec director of the Company. “The management team have been actively investigating new opportunities and have a pipeline from which we anticipate further developments will be announced in due course. The appointment of Paul as CEO marks an inflection point in the commitment of management time to developing the Company.”


Valiant Investments (NEX:VALP) 0.32p £2.6m

Valiant has raised £23,000 by way of a placing at a price of 0.1p. The monies raised will provide the Company with additional working capital and enable it to further accelerate the development of its 84.7% owned subsidiary, Flamethrower plc, an app developer. 


Vernalis (VER.L) 24.25p £127.64m

Vernalis and Servier have reinforced their partnership by entering into a new two-year oncology drug discovery collaboration on an undisclosed target. This agreement extends the existing successful collaborations between Servier and Vernalis since 2007, to combine Vernalis’ proprietary fragment and structure-based drug discovery platform with the oncology expertise at Servier.  Previous successes include discovery of products targeting Bcl-2 and Mcl-1 currently in clinical development. Vernalis will receive a €2 million upfront payment, fees, research milestones and a share in the downstream success of any products coming out of this new collaboration.


Satellite Solutions (SAT.L) 8.87p £47.59m

The global communications company specialising in rural and last mile broadband, has agreed to acquire the entire issued and to be issued share capital of BorderNET Internet Pty Ltd  in Australia and the customer bases of NextNet and AS Distriktsnett  in Norway for an aggregate consideration of £1.8m, to be satisfied by a mixture of cash and shares. The cash elements of these transactions will be financed by utilising the recently announced HSBC facility.  The acquisitions are a continuation of SSW’s roll-up strategy whereby BorderNET’s operations will be integrated into the existing Australian business (Skymesh) and NextNet and ASDN will be integrated into SSW’s existing Norwegian hub (Breiband). The acquisitions bring an additional 5,500 customers in aggregate, creating greater scale and market share as well as the opportunity for operational gearing through cost efficiencies and network optimisation.


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”.