Small Cap Feast

Small Cap Feast – 23 December 2020

Dish of the Day:

Off the Menu:

*Delighted to welcome One Heritage Group #IPO (OHG.L) to the Main Market today. – Property development and management company focusing on the North West – £18m total gross development value – Looking to serve the rising demand in the residential market – Successfully raised £930k @ 10p (market cap £3m). – Use of proceeds to scale the business and facilitate completion of existing projects

What’s Cooking in the IPO Kitchen?

HSS Hire Group,HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan 2021.

Vector Capital to float on AIM, a commercial lending Group that offers secured loans primarily to businesses located in the UK. Substantially all of the Group’s loans are secured by a first legal charge against real estate. The Group’s customers typically borrow for general working capital purposes, bridging, land development and acquisition. As of 30 September 2020, the Group had a loan book of £34.7m, with an average loan size of approximately £0.57m. Raising £3.1m at 38p. Mkt Cap £16m.
Due 29th December.

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 Main Market of the London Stock Exchange. Due by Early Feb 2021.

Eddie Stobart Logistics (ESL.L) converting to an AIM investing company. Name change to Logistics Development Group. Focus sectors: logistics, transport, warehousing and e-fulfilment assets. £9m to be raised via a placing and subscription and up to £7m via open offer. Market cap c.£35.1m. Due New Years Eve.

Reverse take-over under rule 14 by MelodyVR (AIM:MVR) Group of Rhapsody International, trading as Napster. Upon completion of the transaction, Napster will be a wholly-owned subsidiary of MelodyVR Group. The enlarged group will combine the service offerings of MelodyVR and Napster, offering music fans a consolidation of music artist’s repertoires including recorded music, short form video content, long form video content, digitally ticketed live streams, educational videos and immersive AR/VR content, into one premium subscription product. Raising $10.1m. Market cap £92.4m at 3.75p.
Due 29 December.

Breakfast Buffet

Amryt Pharma 195p £349m (AMYT.L)

The global, commercial-stage biopharmaceutical Company dedicated to developing and commercializing novel therapeutics to treat patients suffering from serious and life-threatening rare diseases announced that the U.S. Food and Drug Administration has granted orphan drug designation for AP103 for the treatment of Dystrophic Epidermolysis Bullosa (DEB). AP103 is based on Amryt’s gene-therapy platform technology and offers a potential treatment for patients with DEB, a subset of EB.

SEC Newgate 46p £11.16m (SECG.L)

The insight-driven global strategic communications group that works at the nexus of business, politics, communities, markets and media, has signed agreements to acquire a 60% shareholding in four tranches (15% per annum until 2024) in Orca Affairs GmbH in line with the Group’s Strategic Plan 2021/2023 and stated acquisition strategy. Orca Affairs, based in Berlin, has a strong track record in public and corporate affairs at a national level. The agency’s specialist consultants offer a broad portfolio of services, including institutional events, communications strategies, public affairs, media relations and digital consultancy, brand management, media training and coaching to companies and public institutions across a diverse range of sectors. The initial consideration comprises a completion cash payment of EUR0.7m for a 15% stake. The total Acquisition consideration is subject to a minimum of EUR2.2m and is capped at EUR3.5m. In the year ended 31 December 2019, Orca Affairs’ turnover was EUR10.5m with profit before tax of EUR2.2m in part influenced by short-term extraordinary business which is not continuing into 2021. The Acquisition will be earnings enhancing in 2021.

World High Life 1.9p £4.4m (AQSE:LIFE)

Wholly owned subsidiary, London-based Love Hemp Limited (Love Hemp), has successfully launched a 10 SKU Love Hemp product line across 880 Holland & Barrett stores throughout the UK and Ireland, and online at www.hollandandbarrett.com. Tony Calamita, CEO at Love Hemp says: “This is a significant relationship not only in its scale, but also because Love Hemp and Holland & Barrett have implemented a ground-breaking education and awareness program designed to inform consumers around the benefits of CBD. The opportunity to play such a leadership role in the category is directly aligned with our values. It is important to invest with partners such as H&B to increase knowledge and confidence for consumers, so they know they are buying credible products from credible retailers.”

Polarean Imaging 68.5p £111m (POLX.L)

The medical imaging technology Company, with a proprietary drug device combination product using hyperpolarised xenon-129 gas to enhance magnetic resonance imaging (MRI) in pulmonary medicine, provides an update regarding the status of its New Drug Application (NDA) with the US Food and Drug Administration (FDA). Polarean has received notification of acceptance of the Company’s NDA by the FDA. The FDA has confirmed that the review will follow the standard review time frame with a target Prescription Drug User Fee Act action date of 5 October 2021. The Company plans to make full use of this time with regards to commercialisation and launch preparation.

Bluejay Mining 13.9p £135m (JAY.L)

The exploration and development Company with projects in Greenland and Finlandhas signed a Master Distribution Agreement with a large, long established Asian Conglomerate with global interests in Metals and Mining for the sale of up to 340,000 tonnes per annum of ilmenite from the Company’s flagship Dundas Project, Greenland .

MaxCyte 485p £327m (MXCT.L)

The a global cell-based therapies and life sciences Company, today announced an update on trading for the full year 2020 and progress of the CARMA programme. Based on ongoing momentum in transformational cell therapies and milestone payments from growth in clinical and commercial license partnerships, MaxCyte expects financial results to be ahead of market expectations for the full-year in the core life sciences business (before CARMA costs). A more detailed trading update will be announced the week of 18 January 2021. MaxCyte continues to work with Locust Walk on the strategy and future funding of the Group’s CARMA business, and enrolment and dosing in the existing CARMA no-preconditioning MCY-M11 clinical study is continuing well. The Company will provide a further update in January.

Immotion Group 3.65p £15m (IMMO.L)

Immotion Group, the UK-based immersive entertainment group updated the market on current trading. Despite current Covid-19 challenges, the Company has seen un-audited revenue increase steadily in recent weeks. The Group launched Let’s Explore Oceans (LEO) in mid-October and total group revenue for October was £369k and November was £573k, an increase of 21%, and 87% respectively compared to September (prior to the launch of LEO). Since the launch in mid-October 2020, sales of the Home Based Entertainment product, LEO have exceeded expectations with total units sold up to and including 22 December, of over 11,000 generating total retail sales, including VAT, exceeding £800,000. “The Location Based Entertainment (LBE) business continues to be impacted by the Covid-19 pandemic, and whilst our UK operations are now closed again as a result of recent UK Government requirements, we have seen one further USA site re-open since our last update (and none closed). Whilst capacities remain restricted in many, we are, in the circumstances, encouraged by demand. The Nevada state authorities have recently limited user numbers to 25% of normal capacity in certain attractions, which will be reviewed in mid-January 2021. This will inevitably impact our revenues in this location significantly in this period.” “Whilst the short-term impact of Covid-19 is very frustrating, we remain confident that demand will be very strong for our LBE offering when any sort of normality returns. This would result in very substantial uplifts in revenue and contribution from our LBE business.”

Beeks Financial Cloud 97p £50.15m (BKS.L)

The cloud computing and connectivity provider for financial markets announced the appointment of Kevin Covington to the Board as an independent Non-Executive Director effective from 4 January 2021. Kevin has had more than 30 years’ experience working internationally in the financial services industry for both vendors and banks, with a particular focus on M&A and advisory. Kevin currently runs a boutique advisory firm, Change Alley, which helps develop and grow organisations in the fintech sector. Kevin also acts as an adviser and mentor to a number of companies in the sector, including Adaptive Financial Consulting, KA2, Enyx and, prior to its acquisition by Beeks, Velocimetrics. Previous positions include CEO of a VC backed Australian technology company, Metamako, which was acquired by Silicon Valley based Arista Networks in late 2018 and CEO at technology company ITRS Group Limited.

Gooch & Housego 1185p £297m (GHH.L)

The specialist manufacturer of optical components and systems, announces that G&H photonic systems and components have been successfully launched in space and are performing an important role in Japan’s new inter-satellite network. G&H photonics technology is at the heart of a laser communication system known as LUCAS (Laser Utilising Communication System), which uses hardware developed by Japan’s NEC Corporation for the Japan Aerospace Exploration Agency (JAXA), a government organisation. JAXA and NEC recently announced the launch of LUCAS on board the Optical Data Relay Satellite, which was launched from JAXA’s Tanegashima Space Center in Kagoshima, Japan, using an H-IIA rocket. The pioneering LUCAS system pushes the performance envelope in terms of data rates and latency with the aim of offering near real-time availability of satellite data. Use of the system will show how laser communications can be a viable solution for future high-speed and scalable space communications.

InfraStrata 46.5p £30.2m (INFA.L)

The UK quoted Company focused on strategic infrastructure projects and physical asset lifecycle management has conditionally raised, in aggregate, up to £7.4 m (before expenses) by way of a placing of new Ordinary Shares at a price of 45 pence per share to existing and new investors, as well as an Open Offer to be issued to Qualifying Shareholders at a price of 45 pence per share. The net proceeds from the Placing will strengthen the Company’s balance sheet and continue to enable it to tender for and win larger contracts , as well as to provide capital expenditure for inter alia, the acquisition of a robotic welding panel line and other yard refurbishment programmes in preparation for the potential award and subsequent execution of fabrication contracts; and provide sufficient working capital to improve negotiating position on new contract opportunities by removing the potential for an emphasis of matter statement within upcoming full year results.

Head Chef:

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

*A corporate client of Hybridan LLP

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