Small Cap Feast

Small Cap Feast – 07 January 2021

Dish of the Day:

No joiners today

 

Off the Menu:

No leavers today

 

What’s Cooking in the IPO Kitchen?

Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the “London Cocktail Club”), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan.

HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. 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.

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.

 

Breakfast Buffet

Sareum Holdings* 2.5p £81.7m (SAR.L)

The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, announced that, further to its announcement of 8 October 2020, the United States Patent and Trademark Office has now formally approved its patent application (US Patent Application no. 16/351,620), in respect of an invention associated with Sareum’s proprietary SDC-1802 TYK2/JAK1 Kinase Inhibitor Programme. This programme is in preclinical development and targets cancer and cancer immunotherapy.

Following the grant of this patent (US 10,882,829), Sareum has patent protection for the SDC-1802 molecule and pharmaceutical preparations thereof in the US and across all major territories in Europe, Japan and China.

Sareum’s CSO, Dr John Reader, commented : “The granting of this patent in the US completes the protection of the intellectual property for our proprietary SDC-1802 Programme across all major markets. The Board believes that the patent will enhance the value of its TYK2/JAK1 inhibitor programmes and the Company’s negotiating position as it continues to engage in discussions with potential licence partners.”

 

Creo Medical Group 204p £322m (CREO.L)

The medical device company focused on the emerging field of surgical endoscopy, announces that it has received 510(k) clearance from the US Food & Drug Administration (FDA)  for its tissue ablation device MicroBlate ™ Flex .

MicroBlate™ Flex is the fourth device within Creo’s portfolio of flexible endoscopy devices for the gastrointestinal (‘GI’) market to receive FDA regulatory clearance, alongside CE marking already received across the range in 2020. The first Creo product to receive FDA clearance, Speedboat™Inject, is being used by clinicians in the UK, EU, US, South Africa and APAC.

Creo’s suite of devices have been designed to be used with the CROMA Advanced Energy Platform, powered by Kamaptive™ full-spectrum adaptive technology, a seamless, intuitive integration of multi-modal energy sources, optimised to adapt to the tissue effect required for different procedures such as resection, dissection, coagulation and ablation.

 

Versarien 49.05p £93.13m (VRS.L)

The advanced materials engineering group, announced that Dr Stephen Hodge has been appointed as the Company’s Chief Technology Officer  and has joined the Company’s Board with immediate  effect. Dr Hodge is currently Head of Research at Versarien, a role he has held since July 2018. Prior to this, he was employed as a Principal Engineer at Cambridge Graphene Limited, a supplier of graphene inks and other graphene materials, and a subsidiary of Versarien.

 

Judges Scientific 6350p £400m (JDG.L)

The Board of Judges Scientific plc, a group focused on acquiring and developing companies in the scientific instrument sector , provides the following update on the Group’s trading performance for the financial year ended 31 December 2020.

As previously disclosed, following the outbreak of Covid-19 and the subsequent difficult trading conditions associated with lockdowns across the globe, the main impact on the Group has been on order intake which fundamentally drives all other Group key performance metrics. For 2020, year-on-year Organic order intake receded by 13%. Notwithstanding this, the Group starts 2021 with a comfortable Organic order book, equivalent to 14.0 weeks of budgeted sales (31 December 2019: 13.2 weeks). Strong bookings by the recent acquisitions brings the total order book to 15.5 weeks.

The Group delivered significant profit in each month of 2020 and cash generation remained healthy throughout the period. Exchange rates remained favourable throughout the year in spite of Sterling strengthening in the run-up to the conclusion of a trade deal with the EU. In parallel, the Group continued to deliver on its acquisition strategy with the completion of two acquisitions.

The Group continues to prioritise the safety of its colleagues, and despite the numerous challenges posed by the pandemic, the Group’s performance has remained resilient with the second half of the financial year showing a gradual improvement in our trading environment. As a result, the Board anticipates that Adjusted Earnings Per Share for the full year ended 31 December 2020 will be ahead of market expectations.

 

Character Group 425p £90.9m (CCT.L)

The Designers, developers, and international distributor of toys, games, and giftware  announced that contracts have been exchanged for the sale of the Group’s UK overspill warehousing facility at Vernon Works, Oldham in Lancashire for £3.5 million in cash (excluding VAT).  Completion is scheduled to take place on 29 January 2021.  The freehold to the facility was acquired by the Group in July 2011 for a total cost of £1.78 million and had a net book value at 31 August 2020 of c. £1.44 million.

 

Mpac Group 462p £93.3m (MPAC.L)

Mpac Group plc, a global leader in high-speed packaging and automation solutions, provides a pre-close trading update (unaudited) for the year ended 31 December 2020. The Group expects to report underlying profit before tax for the full year 2020 above market expectations, primarily as a result of better than expected margins in Q4 driven by sector mix. Trading continues to be resilient, as Mpac serves essential healthcare, food, and beverage markets, deploying digital technology to mitigate travel restrictions despite the continued headwinds from the pandemic.  

 

Altus Strategies 91p £63.78m (ALS.L)

  • Initial results from 10,000m RC drilling programme at Diba gold project in western Mali
  • Intersections from Diba Deposit include: o  3.34 g/t Au over 60m from 17m (including 13.60 g/t Au over 9m). o  4.48 g/t Au over 15m from 22m (including 7.18 g/t Au over 9m).  22.11 g/t Au over 6m from 89m

 2.51 g/t Au over 12m from 3m (including 3.32 g/t Au over 7m)

  • Two new zones discovered at the Diba NW prospect, 800m northwest of Diba Deposit.

 

Avacta Group 132p £334m (AVCT.L)

The developer of innovative cancer therapies and diagnostics based on its proprietary Affimer® and pre|CISIONTM platforms, has entered into a license agreement with POINT Biopharma Inc., to provide access to Avacta’s pre|CISION™ technology for the development of tumour-activated radiopharmaceuticals. 

The radiopharmaceutical market is expected to grow to $15 billion by 20251 and there is a substantial opportunity to grow much faster if safety and tolerability of these effective treatments can be improved. POINT Biopharma is a clinical-stage pharmaceutical company focused on developing radioligands2 as precision medicines for the treatment of cancer.

 

Eco Animal Health Group SUSPENDED (EAH.L)

EAH has received a marketing authorisation from Brazil’s Ministry of Agriculture, Livestock and Food Supply for Circo/MycoGard®, a vaccine for swine.

Circo/MycoGard® is used for the vaccination of healthy piglets against Porcine Circovirus type 2 (“PCV2”) and Mycoplasma hyopneumoniae, two of the most common primary pig respiratory disease pathogens affecting the health and productivity of swine globally.

 

GCM Resources SUSPENDED (GCM.L)

The  mining and energy company has entered into a Relationship Agreement with Polo Resources Limited. Polo is currently a private limited company and owns 28.3% of the Company’s issued share capital.

The purpose of the Relationship Agreement is to ensure that the Company is capable of carrying on, at all times, its business independently of Polo.

The Relationship Agreement has a minimum term of one year from the execution date, and thereafter will terminate if the ordinary shares of the Company cease to be admitted to trading on AIM or Polo ceases to retain an aggregate interest of 25 per cent or more of the issued ordinary share capital of the Company.

The Company confirms in relation to the Loan Facility with Polo announced on 3 February 2020, it has today drawn down a further £250,000 in accordance with the terms announced thereon. The Company has utilised currently £3.2million of the £3.5million facility. This current drawdown along with existing cash balances will be sufficient to fund the Company for a further 3 months.

 

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”.