Small Cap Feast

Small Cap Feast – 15 February 2021

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What’s Cooking in the IPO Kitchen?

AMTE Power,  a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7 million by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.

Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on  the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.

Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring.   Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”

Kanabo Group (RTO by Spinnaker Opportunities SOP.L) on the main market (standard). Raising £6m, enlarged mkt cap £23.4m. Kanabo focuses  on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers . Due 16 Feb.

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Auction Technology Group is considering an IPO on the Main Market.  The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions .  In FY20 the Group delivered pro forma revenue of £52.3 million, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Cordiant Digital Infrastructure  to admit its shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange . Targeting a £300m raise. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Due 16 Feb.

4basebio UK Societas   is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients.  The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m. Due 17 Feb

Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective 16 February 2021.  The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada. Raising £8.2m. £18.7m mkt cap.

 

Breakfast Buffet

Microsaic Systems 0.275p £16.7m (MSYS.L)

The micro-engineering, miniaturised chip-based mass spectrometry producer for point-of-need analytical detection, has signed a non-binding Heads of Terms with DeepVerge plc (AIM: DVRG) to enter a multi-year Framework Services Agreement. Under the Agreement, which is expected to be signed on or before 31 March 2021, Microsaic will supply miniaturised mass spectrometry equipment and services on a non-exclusive basis across DeepVerge’s sales, marketing and distribution channels for quality and contamination detection in a range of markets. These include Human, Environmental Health and Diversified Industries, including point of need and laboratory solutions in,  chemical, bio chemical, biofuel, biodegradable plastic, biologics and waste-water treatment industries .

Under this Agreement, Microsaic will transition its business model to a revenue-sharing, collaborative and commercial partnership strategy. The Heads of Terms include provision for an initial order by DeepVerge for two units, each worth £50,000, plus a commitment of up to £150,000 by DeepVerge plc to install pilot facilities in DeepVerge’s York laboratories . Under the Agreement,   Microsaic shall pay to DeepVerge a commission based on the revenues received from customers introduced by DeepVerge.

 

Surgical Innovations Group 2.15p £20.01m (SUN.L)

The designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery (“MIS”), announces a new USA distribution agreement with Microline Surgical Inc. (“Microline”) for the Company’s range of YelloPort+PlusTM and YelloPort EliteTM Access Devices. The 5-year agreement brings a significant opportunity to SI for growth in the US Trocar market.

 Microline’s sales & marketing structure is ideally placed to leverage their experience with Resposable surgical instruments to effectively drive US sales of YelloPort+PlusTM  and YelloPort EliteTM Access Devices.

 

Physiomics* 8.2p £8m (PYC.L)

The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, it has entered into a new agreement with ValiRx plc (AIM:VAL), a clinical stage drug development company.  The new agreement supersedes the agreement between Physiomics and ValiRx which was announced on 13 September 2011. Under the terms of the new agreement, ValiRx will benefit from Physiomics’ experience in modelling the effects of prostate cancer treatment, as well the use of the latest version of its Virtual Tumour™ technology, which will be applied to derive valuable information from the additional data generated by the completed clinical trial of VAL201.  Physiomics will also support ValiRx in modelling the use of the VAL201 peptide in endometriosis (VAL301) and Coronavirus (BC201).

 Physiomics has developed a quantitative systems pharmacology approach that uses pre-clinical and clinical data to model the activity of a drug candidate.  This data can be used to explore the mechanism of action, disease impact and optimal dosing strategies.

Physiomics will receive a fee (capped at £6m) of 6% of any future net revenues that may be received by ValiRx relating to its commercialisation of VAL201 and its derivatives in any indication, including prostate cancer, endometriosis and treatment for Coronavirus infection.  Eligibility for part of this fee will be conditional on completion of an agreed programme of work by Physiomics that builds on the work already carried out under the 2011 agreement.  This programme of work will start on 15 February 2021 and is required to be completed by 15 November 2021.  In recognition of the collaborative nature of this new agreement, Physiomics will also be offered a seat on the ValiRx scientific advisory board.

 

Strategic Minerals 0.525p £10m (SML.L)

Its 100% owned subsidiary Cornwall Resources Limited (CRL) has been notified that the ‘Deep Digital Cornwall’ project led by the University of Exeter’s Camborne School of Mines (CSM), in which CRL and Cornish Lithium are delivery partners, has been awarded funding by the European Regional Development Fund (ERDF), through HM Ministry of Housing, Communities, and Local Government (HMCLG).  Highlights:

  • Redmoor exploration licence area will be used as a field laboratory for collection of geochemical and geophysical data, which will also provide CRL with information relevant to a number of new prospects within its Mineral Rights.
  • CRL to receive up to £446,063 of grant funding for its part in the project from the ERDF, in return for a contribution from CRL of 20% (from existing budget).
  •   Strong alignment with CRL’s objectives for Redmoor, one of which is the continued expansion of its understanding of the geology at this highly prospective site.
  • CRL to benefit from access to international-level research and collaboration concerning the use of digital exploration data, through CSM.
  • Positive support for Cornwall and its natural resources sector from HMCLG and ERDF.

 

Ebiquity 20.9p £17.3m (EBQ.L)

The  independent marketing and media consultancy, announces a pre-close trading update for the financial year ended 31 December 2020, ahead of the preliminary results announcement planned for 25 March 2021.

Ebiquity’s trading for the year ended 31 December 2020 was in line with the Board’s expectations with higher revenue in the second half of the year than in the first. This reflected both the recovery in demand from existing clients as they returned to more normal activity levels, and success in winning new business.  As expected, the Group returned to profitability in the second half, although it is likely to report a small adjusted operating loss for the full year. 

Additionally, the Group’s net debt of £7.7 million as at 31 December 2020 was in line with expectations.

 

Synairgen 193p £386m (SNG.L)

The respiratory drug discovery and development company, today announces that dosing has begun in the inhaled interferon beta formulation (SNG001) sub-study of the ACTIV-2 Phase II/III trial, evaluating patients with mild to moderate COVID-19 symptoms not yet requiring hospitalisation.

 

Advance Energy SUSPENDED (ADV.L)

The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, updated on the Buffalo oil field.  Carnarvon Petroleum Limited (ASX:CVN, Carnarvon), has announced today the award of a drilling management services contract to Petrofac Limited (LSE: PFC) for the B-10 appraisal well, which is expected to be drilled in H2 2021, subject to funding, rig availability and government approvals. 

On 17 December 2020, the Company announced it had entered into a subscription agreement with Timor-Leste Petroleum Pty Ltd (a subsidiary of Carnarvon) to obtain up to a 50% equity interest in Carnarvon Petroleum Timor, Unipessoal Lda (JVco), its subsidiary which holds a 100% working interest in the Buffalo oil field, conditional, inter alia, on raising the necessary funding.  JVco is presently making drilling preparations for the B-10 appraisal well, which is designed to drill the crest of the structure with the objectives of re-certifying resources into reserves and finalising the development plan for this proven oil field.

Following a tender process, Carnarvon made the decision to award the drilling management services contract to Petrofac, which will include completion of detailed well design, procurement of long lead items and contracting the drilling rig and associated services, including a shore based location. Pursuant to the Subscription Agreement, Advance Energy provided approval for the contract award. Drilling of the B-10 appraisal well is anticipated to occur in H2 2021.

 

Learning Tech 175.15p £1,295m (LTG.L)

The provider of services and technologies for digital learning and talent management, has agreed to acquire getBridge LLC and related assets, a leading learning and talent development software provider, from Instructure Inc for a cash consideration of $50.0 million (c.£36.1 million).  Bridge is a learning, performance and skills development platform for mid-enterprise organisations, headquartered in the US with operations in the UK and Hungary.

The acquisition of Bridge significantly extends LTG’s mid-enterprise learning and talent offering.  Bridge is highly complementary to PeopleFluent, which serves the large enterprise market, and BreezyHR, which serves the small and medium-sized business market.  The acquisition is strategically important because it enables LTG to provide a holistic learning and talent development offering to meet the needs of small, mid-size and large enterprises, three distinct groups with varying requirements. The combination and integration of Bridge with LTG’s other portfolio offerings, including the recently acquired Reflektive engagement and analytics platform, will create opportunities for cross-sell and upsell-led growth within the Group.

Bridge achieved unaudited revenue of c.$21.0 million in FY20, of which more than 90% was derived from recurring annual and multi-year contracts. It generated an EBITDA loss of c.$1.3 million in the same period.  With the operational synergies that will be created with the rest of the Group, LTG expects Bridge to become earnings accretive from H2 2021 and to align with its typical software division margins by early 2022.  Bridge has more than 800 customers which combined with LTG’s global customer base represents a compelling cross-selling opportunity.

 

Netcall 59.5p £87.9m (NET.L)

The provider of intelligent automation and customer engagement software, announced the expansion of its Liberty Platform to include Robotic Process Automation (RPA) capabilities and enhancements to Liberty Create, Liberty Converse and Liberty Connect. This follows the acquisition of RPA vendor Automagica in October 2020 and the completion of the integration and development of its RPA solution to manage processes and automation from a single cloud solution.

The launch of Liberty RPA significantly broadens the Group’s offering into the high growth automation market, providing customers with a comprehensive digital transformation toolkit. Comprising Create, the low-code application platform, Converse, the customer engagement and contact centre solution, Connect, the chatbot and instant digital messaging solution, and now RPA, the Liberty platform is a one-stop shop for process automation and customer engagement.

 

Sativa Wellness Group 3.6p £10.89m (AQSE:SWEL)

Sativa has submitted its Novel Food application for validation by the Food Standards Agency ahead of the 31 March 2021 deadline, as part of the Company’s ongoing commitment to continually deliver the highest level of regulatory compliance and product quality – ‘CBD you can trust’.  

The submission, led by award winning Life Sciences Regulatory and Quality Compliance consultancy, Global Regulatory Services and supported by Group’s in-house team of scientist and quality/compliance professionals, incorporates an extensive array of products under its Goodbody brands and on behalf of white label customers. Products include oil-based food supplements, gummies, soft gel capsules and sports recovery gels, as well as wholesale bulk CBD ingredients.

 

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

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