Small Cap Feast

Small Cap Feast – 20 November 2020

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test.   Offer TBC. Due early Dec.

PensionBee the  online pension provider , reported to be considering an IPO on the LSE in the Times at a valuation that could exceed £300m.

DrMartens, the iconic shoe brand is preparing for a £1bn initial IPO next year according to Sky News.

Conduit Holdings is a newly established reinsurance underwriting business focusing on producing strong risk adjusted returns from a diversified and focused business plan. The business has been formed to capitalise on what the Company’s founders, Neil Eckert and Trevor Carvey  believe to be an exceptional market opportunity. Raising $1.1bn. Due December

Helium One Global to join AIM. The Company, through its Tanzanian subsidiaries, holds a 100% interest in 18 licences (the Priority Licences) covering an area of 4,512km2 with an Unrisked Prospective Helium Resource (2U) of 138Bcf (SRK 2019). The Company has spent US$8.25m on exploration, assessment and related activity to date and is now drill ready. Capital to be raised on Admission: £6million. Anticipated market capitalisation on Admission £14.1 million (at the issue price of 2.84p). Due 4 Dec

Downing Renewables & Infrastructure Trust intends to raise up to £200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December

Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec

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 Financial Conduct Authority and Main Market of the London Stock Exchange.  Due by Early Feb 2021

Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Due December

Schroders British Opportunities Trust is seeking to raise up to £250 million on the premium segment of the Official List . The Company believes that there is a once in a generation opportunity to invest equity capital into high quality, high growth UK Companies in the c. £50 million to £2 billion equity value range with sustainable business models at attractive valuations. Due  1 December.

Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem).  FY20 gross profit of £79.2m (+24.5% against FY19) and adjusted operating profit of £31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.

Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at £179m, announced its intention to raise up to £62.5m.  MailBox REIT  will apply for the Ordinary Shares be admitted to trading  on the IPSX Prime segment of International Property Securities Exchange (IPSX ).    Due  November.

Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List.  Timing tbc

Kibo Energy PLC, the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times.   Targeted for Q4 2020.

 

Breakfast Buffet

Pantheon Resources 32p £161m (PANR.L)

The quoted oil and gas exploration company with working interests of 89.2% – 100% in certain projects located adjacent to transportation and pipeline infrastructure on the Alaska North Slope, today announces the results of the Fundraise and Retail Offer which was announced yesterday.

Aggregate gross proceeds of approximately $30.2 million have been raised through the Placing, Subscription and Retail Offer at a price of 31 pence per Ordinary Share.  The Fundraise was significantly oversubscribed and the Company, having taken into account the strong support received from existing and new investors, decided to increase the size of the Fundraise and Retail Offer to $30.2 million. The further funds raised will allow the Company to drill and test all four zones at Talitha-A, and importantly now include drilling of a horizontal section into the Shelf Margin Deltaic sequence. In addition, proceeds of the Fundraise allow Pantheon to continue high grading its acreage position. The Board believes these initiatives will further strengthen the Company’s position in current and future farm-out negotiations.

 

Marlowe 545p £328m (MRL.L)

The specialist services group focused on developing companies which assure safety and regulatory compliance, announces that has signed a new, enlarged revolving credit facility with HSBC UK Bank PLC and National Westminster Bank PLC. The new facility replaces the Group’s existing £45 million facility and comprises a three-year, £70 million revolving credit facility and an additional accordion facility of £20 million. The enlarged debt facility will provide further resources to support the Group’s ongoing targeted acquisition strategy.

 

Mulberry 247p £148m (MUL.L)

The board of British luxury brand Mulberry notes the announcement released yesterday by Frasers Group plc and that:

  • following the acquisition of a further 4,335,720 Mulberry ordinary 5 pence shares, Frasers now holds interests in 22,121,948 Ordinary Shares, representing 36.82 per cent of the issued Ordinary Shares and contracts for differences relating to a further 27,489 Ordinary Shares;
  • due to a dispensation granted to Frasers by the Panel on Takeovers and Mergers under Note 5(b) on the Notes on Dispensations from Rule 9 of the Code, Frasers acquisition of additional Ordinary Shares does not give rise to an obligation for Frasers to make a mandatory cash offer under Rule 9 of the Code;
  • Frasers has reserved the right to make a voluntary offer for the Company and is now in a 28 day “put up or shut up” period in accordance with Rule 2.6 (a) of the Code

 

Genedrive 59p £33.3m (GDR.L)

The near patient molecular diagnostics company, announces the publication of the study data for the ‘Evaluation of the Point of Care Molecular Diagnostic Genedrive HCV ID Kit for the detection of HCV RNA in clinical samples’. The study was led by Dr Ekta Gupta at ILBS, New Delhi, India. The objective of the study was to determine the diagnostic accuracy of the Genedrive HCV ID Kit, as a confirmatory test for seropositive hepatitis C virus (HCV) patients in Indian demographic settings. The diagnostic accuracy of the Genedrive HCV ID Kit was evaluated by comparing the test with the Abbott Real time HCV test on the lab-based Abbott m2000 platform in an Indian demographic and across a range of different genotypes, to ensure suitability for introduction of the product to the Indian population. In India the circulation of HCV genotype is predominantly genotypes 3 and 1 with live infections of HCV estimated at between 6-12 million2.

150 HCV RNA positive and 170 HCV RNA negative samples were tested using both methods. The comparison revealed 100% sensitivity (95% CI 97.9 – 100%) and 100% specificity (95% CI 97.9 – 100%). The overall diagnostic accuracy was 100% (95% CI 98.9 – 100%). Overall, the study demonstrates that the Genedrive HCV ID Kit is suitable for use in India and can be used for decentralised testing of HCV thereby reducing the loss of patients to follow up.

 

ECR Minerals 1.95p £12.8m (ECR.L)

The gold exploration and development company focussed on Australia, updated on its activities in Victoria, Australia, which are carried out through the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd .

MGA has taken delivery of its new Cortech CSD1300G diamond drill rig and a new operational base is being established in Bendigo, Victoria.

All necessary permissions are in place for drilling at the HR3 prospect within the Bailieston project area, where drilling operations will commence as soon as the drill rig is ready.

Soil geochemistry and geological mapping completed at the Cherry Tree prospect in the Baillieston project area.

 

Fusion Antibodies 108p £27m (FAB.L)

The specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, announces its unaudited interim results for the six months ended 30 September 2020 .

  • COVID-19 programme introduced as part of the Mammalian Antibody Library development project
  • Recruitment of a Director of Research & Development, and additional research scientist appointments
  • Trading for the period has been in line with the Directors’ expectations ·Continued improvement in revenues: H1 FY2021 revenues of £1.90 million (H1 FY2020: £1.75 million). R&D expenditure of £271,000, an increase of 50% on H1 FY2020 ·Losses held at same level as same period last year: H1 FY2021 loss of £0.47 million (H1 FY2020: £0.47 million loss) ·£3.0 million (gross proceeds) raised via placing of new ordinary shares ·Cash position at 30 September 2020 was £3.24 million (31 March 2020: £1.54 million)

 

ParkMead Group 28.5p £31.1m (PMG.L)

FY Jun 20 results from the UK and Netherlands focused independent energy group, with four business areas.

Strong financial position and robust producing assets, despite low gas price environment

  • Well capitalised, with cash balances of £25.7 million (US$33.4 million) as at 30 June 2020 · Total asset base increased by 9% to £89.8 million at 30 June 2020 (2019: £82.3 million) · Net assets increased to £71.3 million at 30 June 2020 (2019: £68.3 million) · Revenue for the period was £4.1 million (2019: £8.3 million), reflecting the record-low gas prices seen during the year · Net profit before tax and non-cash impairment charges was £0.8 million
  • Gas prices have since rebounded strongly to approximately €14.0/MWh in November 2020 · Parkmead’s Netherlands assets remain very low cost to operate, and were uninterrupted by the lockdown restrictions introduced by the Dutch Government in March · Netherlands gas production, plus benchmarking & economics consultancy, provides positive operating cash flow to Parkmead. · Parkmead maintains strict financial discipline with very low operating costs

Significant wind farm potential; high-grading of renewables portfolio underway.

 

Renold 12p £27.1m (RNO.L)

The  international supplier of industrial chains and related power transmission products, is pleased to announce the appointment of Andrew Magson to the Board as a Non-Executive Director with effect from 1 December 2020.  Andrew will also be appointed to the Audit, Remuneration and Nomination Committees. 

Andrew, aged 54, has significant experience in senior finance roles in multinational manufacturing businesses, most recently at The Alumasc Group plc where he was the Chief Financial Officer from 2006 to 2020. He qualified as a Chartered Accountant in 1992 with PwC before moving into industry at BPB Plc, where he became Group Financial Controller.

 

Block Energy 4.95p £22m (BLOE.L)

The exploration and production company focused on Georgia, updated regarding the Company’s previously disclosed acquisition of Schlumberger Rustaveli Company Limited. Block is pleased to announce that some amendments have been made to the sale and purchase agreement  with Schlumberger B.V.  that was announced on 26 March 2020 by way of an amendment and settlement deed, including the following:

  • Completion to occur on 23 November 2020, subject to certain conditions;
  • On completion, Block to take possession of approximately 29,000 bbls of crude oil inventory (the “Oil Inventory”); and
  • Schlumberger to enter into a transition services agreement with Block, to assist with the handover.

 

Trackwise Designs 310p £69m (TWD.L)

Trackwise Designs plc, a provider of specialist products using printed circuit technology, is  has conditionally raised gross proceeds of £11 million  at an Issue Price of 200 pence per New Ordinary Share. Additional open offer up to £1m. The net proceeds (after deducting the costs and expenses of the Fundraising), along with the Company’s existing cash resources are intended to be used to increase IHT manufacturing capacity, triggered by the recent EV contract win, future anticipated IHT demand and emerging Medical and Aerospace market opportunities. In addition, proceeds of the Fundraising will provide additional growth working capital.

 

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”.