Small Cap Feast

Small Cap Feast – 30th May 2022

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Off the Menu:

Origo Partners PLC has left AIM.

What’s Cooking in the IPO Kitchen?

AssetCo plc, intends to join re-join AIM. The Company’s strategy is to develop an agile asset and wealth management company that meets the needs of investors in the 21st century by acquiring, managing and operating asset and wealth management activities and interests, together with other related services. The Company is in the process of acquiring the entire issued share capital of River and Mercantile Group plc (RMG), via a reverse takeover and therefore a Readmission Document is required for the enlarged group. Due 15 June 2022.
Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due Date TBC.
Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.

Breakfast Buffet

Arrow Exploration 16.8p £36.9m (AXL.L)

Arrow Exploration Corp (AIM: AXL; TSXV: AXL) announces that the Rio Cravo Este-2 (RCE-2) well was brought on production on May 23, 2022. The well is currently being managed at reduced rates of 1000 BOPD (500 net). This exceeds forecast pre-drill rates of 360 BOPD net and the water cut has stabilized at less than 20%. The Company has also successfully spud the next well, RCS-1 (Rio Cravo Sur-1) on May 23rd in the Tapir Block of its Rio Cravo Este 2 area, located in the Llanos Basin of Colombia. RCS-1 is expected to reach Total Depth of 8700 feet on or about June 7th. The well is targeting 6 separate hydrocarbon bearing reservoirs. The Company expects the RCS-1 well to come in 20 feet higher at the Carbonera Formation C-7 level, the primary objective, than was experienced in the RCE-2 well. In addition, Arrow announces the filing of its unaudited interim Financial Statements and Management’s Discussion and Analysis (MD&A) for the quarter ended March 31, 2022. The Company’s first quarter 2022 average corporate production increased by 61% to 1,144 boe/d, compared to the fourth quarter 2021 average production of 712 boe/d. This increase was largely attributable to the Canadian operation’s tie-in of the West Pepper well in Alberta, Canada, which was brought on production in December 2021. At the end of the quarter, Arrow had working capital position of $7.6m and a cash position of $8.9m.

Digitalbox 9.8p £11.5m (DBOX.L)

The mobile-first digital media business, which owns Entertainment Daily, The Daily Mash and The Tab, announces it has exchanged contracts to acquire the web and mobile platform assets of TVGuide.co.uk Limited. Total cash consideration of £550k with £20k payable immediately on Exchange to trigger the platform redevelopment, a further £350k payable on Completion, which is anticipated to be within three to six months from the date of Exchange, and a deferred payment of £180k paid four months from the Completion date, or such later period as is agreed, for transitional services to be delivered in connection with the TVGuide website. This includes services required from TVGuide.co.uk Limited to be renamed Yo.tv Limited (TVG), during the transitional period from the date of completion of the Acquisition. The Acquisition will be immediately earnings enhancing when completed. Launched in 2002, TVguide.co.uk is an established dedicated interactive UK TV listings brand Digitalbox will integrate TVguide.co.uk onto its Graphene technology platform, which it has successfully deployed on The Daily Mash and The Tab as part of their respective acquisitions and integrations.

Egdon Resources 3.9p £20.2m (EDR.L)

A UK focused energy company announces that the North Sea Transition Authority (NSTA) has approved the Field Development Plan for the Wressle oil field in North Lincolnshire, held under licences PEDL180 and PEDL182 where Egdon is operator with a 30% interest. The NSTA has also approved the Licences entering their production phase, which will continue through to 2039. Commenting on these positive developments, Mark Abbott, Managing Director of Egdon Resources plc, said: “This is a key milestone for the Wressle project as it transitions from an extended well test to production under an approved field development plan. Wressle continues to generate high levels of production and revenues. The Wressle-1 well is currently amongst the most productive in the onshore UK and to date has produced over 170,000 barrels of oil.”

Genedrive 24.5p £22.7m (GDR.L)

The near patient molecular diagnostics company, announces that the UK Medicines and Healthcare Products Regulatory Agency has granted a CTDA enabling the sale of the Genedrive® COV19-ID Kit in the United Kingdom. Genedrive’s application for approval, under the requirements that came into force on 28 July 2021 via The Medical Devices (Coronavirus Test Device Approvals Regulations (2021)), was made on 21 December 2021. Since submission for approval, the product has undergone positive external validation, commercial partners have been engaged in specific countries, and product claims have been expanded to include the testing of asymptomatic patients. Information about the Genedrive® COV19-ID Kit can be found at https://www.genedrive.com/assays/cov19-id-assay.php

i-nexus Global 5.1p £1.5m (INX.L)

A leading provider of cloud-based Strategy Execution software solutions designed for the Global 5000, today provides its unaudited results for the 6 months ended 31 March 2022. Financial highlights include: New Monthly Recurring Revenue (MRR) improved at £23k (H1 2021: £8k); Net Retention of existing accounts for FY 2022 improved at 94% (FY 2021: 73%); Group Revenue £1.54m (H1 2021: £2.01m); Gross margin relatively stable at 77% (H1 2021: 81%); Adjusted EBITDA loss of £0.14m (H1 2021: £0.12m); Loss before tax £0.34m (H1 2021: £0.43m) and Cash balance at 31 March 2022 improved at £0.69m (Cash and cash equivalents at 30 September 2021: £0.58m). Operational highlights include: Sales momentum continued through the period, securing 5 contract wins and 2 upsells within existing accounts, with a combined FY22 MRR of £23k, a 10% gross increase on our opening position of £235k; The number of renewing customers increased significantly, contributing to a Net Retention rate of 94%, a considerable improvement on the prior year; Average deal size is increasing and we now have clear predictable conversion rates of leads into deals; On track to deliver double digit net MRR growth in FY2 and Continued investment in our solution including new features designed to enhance the user experience.

Kibo Energy* 0.17p £5.0m (KIBO.L)

Renewable energy focused development company Kibo announces that it has entered into an exclusive agreement with Hasta Trust to jointly assess and develop a portfolio of long duration energy storage projects held exclusively by National Broadband Solutions (NBS) in South Africa, with an initial target of c. 36,320 MWh capacity. NBS is currently 100% owned by Hasta. The Agreement is a major step forward in Kibo’s strategy to integrate long duration energy storage into its commercial project pipeline and follows closing a framework agreement with CellCube to develop and deploy CellCube based Long Duration Energy Storage (LDES) solutions in Southern Africa (See RNS of 17 May 2022). Kibo will acquire a 51% interest in NBS, in exchange for granting NBS exclusive access to Kibo’s strategic capabilities and capacity, in respect of long duration storage solutions, for specific market sectors covered by NBS’s project portfolio. Kibo will also appoint three directors to the board of NBS with Hasta appointing two directors.

MediaZest* 0.1p £1.3m (MDZ.L)

An audio-visual solutions provider, provides an update on current trading and performance during the first half of the current financial year, the six months ended 31 March 2022. As expected and noted in the previous financial years’ results announcement on 2 March 2022, the current financial year began encouragingly with the Interim Period showing significant improvement from prior year comparison. As was the case in the six months to 30 September 2021, the Group achieved profitability at both EBITDA and profit after tax levels. Detailed results for the Interim Period are currently in preparation, in conjunction with the Company’s auditors, and will be released in June 2022. Current trading remains positive across the Group’s key retail, automotive and corporate sectors. The Group is also seeing increased demand for temporary and event driven technology as clients’ customers return to their stores and other locations, and seek to reintroduce the ‘wow factor’ to their marketing activations.

Mirriad Advertising 21.0p £58.6m (MIRI.L)

Mirriad, the leading in-content advertising company, today announces its collaboration with Magnite, Inc., the world’s largest independent sell-side advertising platform, to bring scale and automation to the in-content advertising format via programmatic ad campaigns across multiple platforms, channels and markets. Under the terms of the contract signed between Mirriad and Magnite, Mirriad will make ad Inventory available for sale via the Magnite platform, which facilitates the programmatic sale of in-content advertising. This is a pivotal milestone for Mirriad, as it introduces its offering into the digital media ecosystem. Stephan Beringer, CEO, said: “Our collaboration with Magnite is a momentous step forward in terms of our ability to activate in-content inventory programmatically. By scaling across platforms we can drive more valuable ad inventory, from a broader range of video content, to advertisers and their agencies. Working with Magnite is a true milestone on our path to scale.”

Parsley Box 18.5p £16.2m (MEAL.L)

Edinburgh-based company, Parsley Box, the direct-to-consumer provider of ready meals focused on the over 65s, announces it has partnered with a range of iconic British brands to create a unique Afternoon Tea for Two to celebrate the remarkable occasion of Queen Elizabeth II’s Platinum Jubilee. The ‘tea for two’ package includes a range of British products, perfect for celebrating the occasion. The package has been marketed to existing customers through the Parsley Box website and through the Daily Mail Newspaper. This marks the first time Parsley Box has expanded its range beyond meals and the sellout of the 4,000 hampers proves that with the right product and offer, Parsley Box customers will purchase other products they would not traditionally associate with the brand. It also demonstrates Parsley Box’s commitment to product innovation and is part of the marketing strategy put in place this year to focus on relevant occasions for our target demographic.

UK Oil & Gas 0.13p £21.1m (UKOG.L)

UK Oil & Gas announces that its wholly owned subsidiary, UK Energy Storage Ltd (UKEn) has signed an Agreement to Lease (A2L) with Portland Port Limited (PPL) covering two sites at the former Royal Navy port in Dorset, with the intent to develop, subject to new planning consent and securing necessary development finance, a planned integrated Energy-Hub, centered around hydrogen-ready gas storage and a future green hydrogen generation capability. UKEn’s planned Energy-Hub development concept seeks to reinvigorate and build further upon a prior unrealised project by Portland Gas Storage Ltd, granted planning consent by Dorset County Council in 2008, to situate approximately 43 billion ft³ bcf (1.2 billion m³ or bcm) of underground salt cavern storage beneath PPL’s land. The Company and its consultant Xodus plan to develop future potential to supply renewable electricity for green hydrogen production at the site via an over-the-horizon floating wind farm, an area of Xodus expertise. The Company intends to complete further detailed engineering and commercial studies, followed by the preparation and submission of a detailed planning application. Where appropriate and to reduce the planning consent cycle time, the Company intends to update and utilise pertinent aspects of the prior consented development in its planning submission.

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Emily Liu, CFA, CAIA
0203 764 2344
emily.liu@hybridan.com

Sous Chef:

Sacha Morris
0203 764 2345
sacha.morris@hybridan.com

*A corporate client of Hybridan LLP

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