Small Cap Feast

Small Cap Feast – 09/09/21

Dish of the Day:

VSA Capital (AQSE:VSA) has joined 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.

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.
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.

Breakfast Buffet

Alien Metals 0.75p £25.7m (UFO.L)

Update on its inaugural drilling program at the high-grade Elizabeth Hill Silver Project in the Pilbara Region of Western Australia. Multiple occurrences of visible silver have been identified in drill core recovered from shallow drilling completed to date. Additionally, visible copper mineralisation has also been identified. Significant sulphides also identified in core associated with copper and nickel mineralisation. The drilling has so far confirmed the Company’s geological interpretation that the original Elizabeth Hill silver deposit appears to be associated with a much larger polymetallic mineralised system. Indications from the pXRF imply some very high-grade silver readings with current maximum of 21,800 g/t silver (700 Oz/t Ag), 5% copper, 1.1 % Nickel as well as highly anomalous Cu, Ni and Zn readings over consistent interceptions.

CyanConnode 16.5p £36.3m (CYAN.L)

The specialist in narrowband radio frequency mesh networks, won the 2021 Frost & Sullivan Global Smart Metering Technology Innovation Leadership Award. Frost & Sullivan was impressed with CyanConnode’s innovation in the smart meter industry and recognised that it has grown from a regional European pioneer into a global leader.

Dekel Agri-Vision 5p £26.8m (DKL.L)

The West African agriculture company focused on building a portfolio of sustainable and diversified projects provided an August production update for its 100% owned Ayenouan palm oil project in Côte d’Ivoire. Positive August like for like production and pricing results recorded across all key production metrics. 1,852 tonnes of CPO sold in August 2021, 25.0% higher than August 2020 as stock on hand post the high season was sold into a buoyant local CPO market. PKO sales 181.3% higher than August 2020 as a significant portion of high season stock on hand was sold during the month. CPO prices continue to remain very strong with average prices achieved in August 2021 of EUR947, a 76% increase in average realised CPO prices compared to August 2020. International CPO prices continue to remain at 10 year highs. Should prices remain around this level over the coming months, we are very well placed to continue this period of strong momentum into the next high season commencing mid January.

Draper Esprit 1,124p £1,720m (GROW.L)

The venture capital firm investing in and developing high growth digital technology businesses announced the appointment of Sarah Gentleman as Non-Executive Director with effect from 8 September 2021. Sarah will become Chair of the Remuneration Committee and will also be a member of the Audit, Risk & Valuations Committee and Nominations Committee. Sarah is Non-Executive Director, Chair of the Remuneration Committee and Member of the Audit, Risk & Nomination Committees at Rathbone Brothers. She has over 30 years’ experience working in a combination of strategic and financial roles, having started her career as an analyst at McKinsey & Company. These include Business Development Director at Egg UK and Chief Financial Officer at LCR Telecom. Until 2012, she was a sell side banking analyst at Sanford Bernstein where she covered French, Spanish and Italian banks. Most recently, Sarah has been working as an advisor to early-stage technology companies with a focus on FinTech.

Feedback 0.7p £7.4m (FDBK.L)

The specialist clinical communication company, announces that it is launching a new Bleepa product – CareLocker. Revolutionary GDPR compliant patient-centric cloud architecture to underly the Bleepa platform. Increases the opportunities for Bleepa adoption across multiple care settings. Proprietary technology enables an easy route to creation and mobilisation of individual healthcare records. The perfect infrastructure to support roll-out of regional care delivery programmes such as the Community Diagnostic Hub initiative.

GlobalData 1,560p £1,847m (DATA.L)

GlobalData Plc, the leading provider of industry intelligence, today announces its agreement to acquire the Life Sciences business of IHS Markit Ltd. (LS). LS offers comprehensive and independent coverage of drug pricing, reimbursement and market access trends, as well as healthcare forecasts and healthcare economic data microsimulation modelling. These capabilities represent a strategic addition to our existing pharmaceuticals vertical and will result in a true end-to-end offering with industry leading breadth and depth for our clients. Completion, which is subject to certain closing conditions, is expected to occur during Q4 of 2021 and will be funded from the Group’s existing cash resources and banking facilities.

Hardide 31p £17.3m (HDD.L)

The developer and provider of advanced surface coating technology announced that a major European manufacturer of steam and gas turbines for power generation has placed its first production order for the Hardide-A coating on gas turbine compressor blades. The blades are to be processed by Hardide before the end of 2021 and installed in a high efficiency, low emission, gas turbine in early 2022. This initial contract has a value of c.£200K. The ability to coat these components is only possible because of the investment made in the new Longlands Road site, where the larger coating reactor and pre-treatment line can accommodate these sizes of blades.

IQGeo 124p £71.1m (IQG.L)

The developer of geospatial productivity and collaboration software for the telecoms and utility industries announced that its software has been selected by a global top 10 electrical utility provider in Japan. The new contract is for more than 4,000 licences with an annual recurring subscription value greater than £500k. This customer will be deploying IQGeo’s geospatial software as part of a strategic project to monitor and respond to severe weather events that can have a major impact on electrical service for its commercial and residential customers.

Itaconix 6p £26.6m (ITX.L)

The innovator in plant-based specialty polymers announced the first shipment to an EU-based customer for its Itaconix® TSI™ 322 sustainable detergent polymer. The new customer is an established and well-respected European brand that is recognised by both the detergent industry and consumers as a leader in product innovation, performance, and sustainability. The Itaconix polymer is a key ingredient in a new non-phosphate dishwashing detergent which the customer is expected to have on European retail shelves by early 2022. Itaconix® TSI™ 322 allows detergent formulators to meet increasing consumer and retailer demands for sustainable products without compromising on cost or performance.

Morses Club 76.1p £101.7m (MCL.L)

Trading update from the established provider of non-standard financial services, for the 26-week period ending 28 August 2021. Morses Club performed strongly during the period and has traded in line with market expectations. The Group’s offering has continued to evolve over the first half of the year to meet changing customer needs as a result of the Covid-19 pandemic and the Company’s strategy to become a more complete provider of non-standard financial products and services continues apace. In the Digital lending division, customer numbers for both short-term and long-term lending have increased and stood at over 46k at the end of the period, an increase of 100% since the end of FY21. The gross loan book was £35.7m, an increase of 194% against the year-end. Against the same period for 2021, credit issued has increased by 271%, from £9.1m (H1 FY21) to £24.7m (H1 FY22).

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”.