Small Cap Feast

Small Cap Feast – 22nd April 2022

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Lift Global Ventures plc to join AQSE Growth Market. The Company’s investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other forms of “new media”, Investment research providers, Financial PR, IR, design and marketing agencies, Production studios and visual content providers and Technology platforms which facilitate capital raising and/or lending. Mkt Cap and Capital to be raised TBC, expected 29 April.
Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC, expected later in April.

Breakfast Buffet

Blackbird 17p £62.5m (BIRD.L)

The technology licensor, developer and seller of one of the market-leading cloud video editing platforms, Blackbird, today announces that the Company will be showcasing fast, efficient and sustainable cloud video editing on Microsoft’s booth at NAB 2022. Browser-based Blackbird is a fast, professional cloud video editing and publishing platform. Enabling scalable, collaborative production, Blackbird provides instant access to video content for the easy creation of clips, highlights and long form content for rapid content publishing. Proven to reduce carbon emissions by up to 91% compared to traditional video editing workflows, Blackbird also reduces infrastructure costs by up to 75% due to its highly efficient cloud native architecture. Blackbird Edge can be deployed on the Microsoft Azure public cloud platform in just minutes. Blackbird supports the use of Azure Blob Storage of video for ingest and publishing which enables transparency of operation between traditional and cloud enabled workflows for high quality content creation and delivery to any device. In addition to this, Blackbird is integrated with Azure Media Services for stream handling and VOD encoding of edits. A growing number of organizations use Blackbird on Azure for efficient, sustainable video editing and publishing including Deltatre and the National Rugby League.

Directa Plus 124p £81.9m (DCTA.L)

The producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announces that it has signed a non-binding Letter of Intent (LOI) with a leading worldwide supplier of automotive interiors to Tier 1 manufacturers. The partners intend to develop a suite of new products for the automotive industry based on the antimicrobial properties (antibacterial and antiviral), thermal comfort and electrical conductivity properties of the Company’s G+® enhanced fabrics. The LOI has a 12 month term and sees the partners agree to combine resources, competence and know-how to develop G+® enhanced fabrics into a platform of ready to use products for the automotive industry. If both parties are satisfied with the results achieved after the 12 months, the partners shall undertake to negotiate a Supply Agreement between the two companies. Directa Plus is already working with the partner to produce prototypes for a number of global Tier 1 auto manufacturers.

ECR Minerals 1.45p £15.1m (ECR.L)

The gold exploration and development company focussed on gold exploration in Australia, provided an update on drilling at HR3 including the highest grade Gold intercept yet below the soil anomaly drilled by hole BH3DD027. ECR Minerals plc has 100% ownership of the Bailieston Project (EL5433) which contains the gold prospects known as HR3, Cherry Tree, Blue Moon and Black Cat. The projects are operated by ECR’s Australian wholly owned subsidiary Mercator Gold Australia Pty Ltd. ECR Chairman David Tang commented: “A significant amount of work has gone into the drilling programme at HR3, and I am delighted that having seen encouraging and consistent gold grades in the assay results to date, today’s result has provided our best intercept yet. Our team hoped that the ground under Hard-Up Reef would reveal a solid result – and it didn’t disappoint! I look forward to working with our new CEO Andrew Haythorpe and Geologist Adam Jones as we build the results from BH3DD027 into the Maori Anticline target model.”

Itaconix 5.05p £22.4m (ITX.L)

The innovator in plant-based specialty polymers used as essential ingredients in everyday consumer products, announced a placement of new ordinary shares to raise approximately £0.3m by way of direct subscription with existing institutional shareholder IP Group entities and management. The proceeds of the Fundraise will be used for general growth working capital, predominantly to strengthen finished goods inventories held in the EU to assure reliable and ready delivery times to EU customers.

Mirriad Advertising 26p £72.6m (MIRI.L)

Mirriad, the leading in-content advertising company, today announces the US-based appointments of Matt Douglas as Head of Programmatic Partnerships, and Zac Reeder as Head of Studio Partnerships. The pair join Mirriad following the publication of the company’s latest whitepaper which highlighted the strong impact in-content advertising has on audience reach and consumer engagement and purchases. Also strengthening the team is Adam Gilsenan, who has been hired as Head of UK sales. As the new Head of Programmatic Partnerships, Matt Douglas will be responsible for developing strategic partnerships and seamlessly integrating partners into the Mirriad platform. He brings vast experience in the programmatic ad space across video, mobile, native and display to Mirriad, having worked at Verizon, Brightroll and 24/7 before it became Xaxis. Matt is based in New York City. Zac Reeder joins Mirriad as the Head of Studio, Film, and TV Partnerships and is responsible for expanding Mirriad’s content supply from the producer and network side. He brings 20 years of entertainment industry experience in acquisitions, sales, and production to his new role.

nanosynth Group 0.475p £9.4m (NNN.L)

nanosynth group plc, the AIM quoted company, notes the recent enquiries from its shareholders and wishes to confirm that as stated in the announcement on 10 February 2022, the Company intends to grow by acquisition. The Board continues to progress this strategy and, at the appropriate time, a further announcement will be made.

Neometals 101.5p £556.6m (NMT.L)

Innovative project development company, Neometals Ltd, announced that Primobius GmbH, the incorporated joint venture company owned 50:50 by Neometals and SMS group GmbH, has received its ‘BlmSchG’ operating permit for its 10tpd commercial lithium-ion battery recycling facility in Hilchenbach, Germany. Primobius is receiving and storing EV battery modules from its disposal service customer ahead of the commencement of commercial operations in mid-May. The BImSchG (Federal Immission Control Act) applies to construction and operation of ‘installations’ to ensure prevention and reduction of any harmful environmental effects caused by emissions to air, water and soil. In addition to securing the permit, Primobius is delivering its first intermediate active material (Black Mass) product produced during the demonstration trials to a German metal recycler next week. Primobius plans to deliver a number of bulk samples from commercial operations to multiple parties for evaluation of larger, longer term offtake arrangements. Black Mass sales will precede planned hydrometallurgical refining until such time as the facilities have been constructed and commissioned by Primobius and potential partners. The 10tpd Shredding Plant will generate near-term revenue as well as prove the efficacy and operability of the shredding circuit at a 1:5 scale of the larger commercial plants. 50tpd recycling operations are presently the subject of engineering cost studies, scheduled for completion by 30 June 2022.

Surface Transforms 54p £105.4m (SCE.L)

The manufacturer of carbon ceramic reinforced ceramic brake discs, announced the appointment of Ian Cleminson as a new independent non-executive director with effect from 1 May 2022. Ian is currently Executive Vice President and Chief Financial Officer of Innospec Inc., an international speciality chemical business employing 1900 personnel, in 23 countries with sales of over $1.5bn and quoted on the US NASDAQ exchange with a market capitalisation of over $2bn. Ian joined Innospec in 2002 and has served as CFO since 2006. Prior to joining Innospec, Ian held several senior financial management and accounting positions including Financial Controller at a division of BASF and an accountant in practice at KPMG. Ian has a Master of Social Science degree from Birmingham University and is a Fellow of the Association of Chartered Certified Accountants.

Titon Holdings 90p £10m (TON.L)

The international manufacturer and supplier of ventilation systems, and window and door hardware, announced the appointment of Alexandra French as Chief Executive Officer. Alexandra will take up the position of CEO and join the Board on 3 May 2022. Alexandra joins Titon from Johnson Matthey plc where she has spent more than 20 years working in a variety of commercial, operational, technical, quality, and sales and marketing roles. She has worked across various divisions in leadership positions both in the UK and also in Canada. Prior to joining Johnson Matthey plc, Alexandra graduated from the University of Cambridge with a degree in Natural Sciences.

XP Factory 31.5p £47.4m (XPF.L)

The group of leading UK experiential leisure businesses operating under the Escape Hunt™ and Boom Battle Bar™ brands, updated on new site openings since the acquisition of Boom Battle Bar™ in November 2021. The Group has made significant progress, completing the integration of Boom, expanding the UK footprint and further developing the site pipeline. At the time of its acquisition in November 2021, the Boom estate comprised one owner operated site and six franchise sites. Today, there are a total of 11 sites trading, comprising two owner-operated and nine franchises, with a further 10 sites currently in build and scheduled to open over the coming months. Of these 10 sites, 7 are at or near build completion. Once opened, the enlarged estate of 21 sites will comprise 6 owner-operated and 15 franchise venues. Further sites are well progressed and expected to commence build over the summer and ensuing 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”.