Small Cap Feast

Small Cap Feast – 18 November 2021

Dish of the Day:

No Joiners Today

 

Off the Menu:

Boanerges has left the AQSE Growth Market

 

What’s Cooking in the IPO Kitchen?

4GLOBAL to join AIM, a London based software, data and services sport and health company. Offer TBA. Due early Dec.

Skillcast to join AIM. Skillcast provides software and content subscriptions and related professional services to enable companies to implement their staff compliance and training obligations.  Offer TBA. Due early Dec.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market of the London Stock Exchange this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa.  The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021.  Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website).  The Company does not intend to raise any capital prior to or concurrent with admission to AIM.  The market capitalisation on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on Admission: £92.0m.  Due 22 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

Life Science REIT to join AIM  raising £350m. Anticipated mkt cap also £350m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due 19 Nov.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

Nu-Oil and Gas  to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the 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. Due Mid Nov. Offer TBC.

 

Breakfast Buffet

Bivictrix 26.5p £17.5m (BVX.L)

BiVictriX Therapeutics, an emerging biotechnology company applying a novel approach to develop next generation cancer therapies using insights derived from frontline clinical experience announced a collaboration to manufacture BiVictriX’s antibody-drug conjugates with Abzena Limited, a partner research organisation for integrated discovery to cGMP manufacturing solutions for biologics. The collaboration will allow BiVictriX to cost-effectively manufacture its anti-cancer ADCs for use in pre-clinical models without the need for extensive manufacturing facilities of its own. ADC production will be carried out in two cycles: the first cycle being ADC manufacturing for proof-of-concept studies; and the second cycle will cover ADC lead selection and optimisation. This collaboration has been secured just three months after BiVictriX listed on the AIM market of the London Stock Exchange, raising gross proceeds of £7.5m.

 

Cohort 616p £253m (CHRT.L)

The Portuguese military communications company EID, part of Cohort plc, has been awarded a EUR8.5m contract by the Portuguese Army to supply its Dismounted Soldier System to infantry forces.  Deliveries will start in 2022 and will go on through to 2026. The Dismounted Soldier Communications System encompasses a full range of high-tech voice and data communications equipment, including personal and handheld radios, data terminals, and Dismounted Soldier Integrator (data and energy integrator). Additionally, it can integrate with other external sensors carried by the soldier.

 

Croma Security Solutions 92p £13.9m (CSSG.L)

Croma Security Solutions Group Plc, the total security services provider, announced the acquisition of the entire issued share capital of Safeguard Ltd for an upfront consideration of £0.53m plus a deferred consideration of up to £0.08m. Safeguard is a Manchester based locksmith business servicing the security needs of Cheshire and operating from a retail store in Warrington. In the 12 months to 30 September 2021 Safeguard generated revenues of £0.5m and EBITDA of £0.1m. The business was family owned and has £0.1m of cash and a freehold property valued at approximately £0.35m. Safeguard was established in 1982 and over time has built up a loyal customer base amongst local homeowners and businesses, focusing on providing security products to ensure building safety. The acquisition is in line with the Company’s strategy to establish a national chain of modern security centres offering the full range of the Group’s services from manned guarding to CCTV, intruder alarm and advanced security systems as well as high security locks. The Safeguard store will be rebranded and adapted to become a security centre and will benefit from having the Group’s broader expertise and product range behind it. The total number of security centres is now 11.

 

Crossword Cybersecurity* 38p £28.5m (CCS.L)

The technology commercialisation company focused on cyber security and risk management announced the appointment of Naina Bhattacharya, Global Chief Information Security Officer at Danone S.A, who joins  Crossword’s Advisory Board with immediate effect. The Advisory Board, made up of senior information security figures from the corporate world, academia, defence and government, provides a range of unique perspectives that benefit Crossword clients and inform Crossword’s product development strategy. Naina Bhattacharya is Global Chief Information Security Officer at Danone S.A.. Prior to Danone, she worked in consulting and had the privilege of working on complex cybersecurity and data privacy projects across multiple companies in several industries. Naina holds a BEng in Computer Science from BITS, Pilani, India and a post-graduation in management from the Indian School of Business in Hyderabad. Professor Nick Jennings has stepped down from Crossword’s Advisory Board as he takes up his new role as Vice Chancellor and President of Loughborough University. Crossword’s Directors would like to thank Professor Jennings for his service to the company.

 

Cyanconnode 26p £57.2m (CYAN.L)

The specialist in Narrowband Radio Frequency (RF) Smart Mesh Networks  announced the formal opening of their new Corporate Office and IoT Innovation Centre in India. The IoT Innovation Centre, which was inaugurated by Executive Chairman, John Cronin, showcases and builds on CyanConnode’s award winning 3rd generation Omnimesh IoT architecture. Keeping India’s ecosystem and requirements in cognizance, the IoT innovation centre will cater to the country’s requirement of deploying 250m smart prepaid meters, with a focus on innovation, research and development. CyanConnode’s solutions such as hybrid communication for both RF and Cellular meters, long-range RF solution for scattered agricultural and semi-urban consumers is being developed and tested further through this IoT Innovation Centre.

 

FIH Group 245p £30.7m (FIH.L)

The international specialist services group with businesses in the Falkland Islands and UK, announced an important new contract secured by its Falkland Islands business (FIC). FIC the Group’s long-established supplier of essential services to the people of the Falkland Islands has been successful in winning a £17.3m contract to build a total of 70 houses for the Falkland Islands Government (FIG) and the UK Ministry of Defence (MoD) in Stanley and at the Mount Pleasant military base. The contract was won after a competitive tender and will involve the construction of 40 houses for FIG and a further 30 units for the MoD over a period of four years with completion targeted for the end of 2025. The contract is an NEC4 fixed price contract with the possibility of additional client variation orders and agreed protections against unexpected price inflation in labour and materials. The contract follows an earlier 18 house contract for FIG which was extended to 26 units, and which was successfully completed earlier this year. Building work will commence on the two sites involved later this year utilising FIC’s existing team of local construction professionals wherever possible and with materials and additional labour being supplied from the UK. There will be only limited financial impact from the contract in the current financial year.

 

Mirriad Advertising 32.5p £90.7m (MIRI.L)

The in-content advertising company announces a partnership with CANAL+ Brand Solutions to launch a new premium advertising offer. In a first for French cinema, CANAL+ Brand Solutions is now offering advertisers the use of the Mirriad platform to insert products or brands dynamically and seamlessly into finished video content. Starting with feature films, it is hoped that the partnership will extend across CANAL+’s diverse content library in due course. The first insertions of this type will be made available in the 2022 film Tenor, a feature film by Claude Zidi Jr. with Michèle Laroque and Mohamed Belkhir, co-produced by Darka Movies and First Step, distributed by Studiocanal.

 

Poolbeg Pharma 10.38p £51.9m (POLB.L)

Update on the clinical development progress of its lead asset, POLB 001, a small molecule immunomodulator for the treatment of severe influenza. The Company intends to commence the Phase Ib human challenge study of POLB 001 in June 2022 which will be a key step in the molecule’s development. To enable this study, the Company has signed a Letter of Intent to retain the Centre for Human Drug Research (CHDR) to run the challenge study and signed an agreement with SEDA Pharmaceutical Development Services for drug formulation services. A vendor has also been selected for GMP manufacturing of POLB 001. In this study, clinical researchers from CHDR will stimulate a healthy volunteer’s immune system with bacterial lipopolysaccharide (LPS) in a safe and controlled clinical environment. The study will provide key human data on the efficacy of POLB 001 in dampening the immune response in otherwise healthy volunteers. The design of the study (the study protocol) is expected to be finalised by the end of Q1 2022. In advance of the Phase Ib study commencing, the Company has completed the manufacturing of a non-GMP batch of POLB 001 which is on hand for any non-clinical (not administered to humans) requirements, such as formulation. This is also an important step in validating the manufacturing process. On this basis, manufacturing can now be scaled up as required as the clinical development phase progresses. The Company will now move towards manufacturing GMP grade POLB 001 material needed for the LPS challenge study and has similarly selected a vendor for this work.

 

Woodbois 4.6p £85.4m (WBI.L)

The African focused forestry, timber trading, reforestation and voluntary carbon credit company, has joined The Circular Bioeconomy Alliance, an organisation that brings sustainability focused enterprises together and places nature at the heart of restoring the global circular bioeconomy. The CBA was established by His Royal Highness, The Prince of Wales, in his Sustainable Markets Initiative in 2020. The organisation aims to accelerate the transition to a circular bioeconomy that is climate neutral, inclusive and prospers in harmony with nature. The Alliance provides knowledge-informed support as well as a learning and networking platform to connect the dots between investors, companies, governmental and non-governmental organisations and local communities to advance the circular bioeconomy while restoring biodiversity globally.

 

Yourgene 12.25p £88.66m (YGEN.L)

The international molecular diagnostics group welcomes the publication in Clinical and Translational Oncology, titled: ‘Consensus of experts from the Spanish Pharmacogenetics and Pharmacogenomics Society and the Spanish Society of Medical Oncology for the genotyping of DPYD in cancer patients who are candidates for treatment with fuoropyrimidines’, which highlights the benefits of using a DPYD genotyping test to help identify cancer patients with Dihydropyrimidine Dehydrogenase (DPD) deficiency prior to treatment with the chemotherapeutic drug 5-Fluorouracil (5-FU).  Yourgene launched the Elucigene® DPYD assay, used to detect the four most clinically relevant DPYD mutations, back in September 2019, and has already welcomed the screening recommendations in Germany, Wales, NHS England and Belgium.

 

Head Chef:

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

*A corporate client of Hybridan LLP

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