Small Cap Feast

Small Cap Feast – 31/08/21

Dish of the Day:

Caracal Gold (GCAT.L) (Formerly Papillon Holdings) has been readmitted to the Main Market with contemporaneous dual listing on the Frankfurt Stock Exchange. As part of the Readmission process, the Company has raised gross proceeds of approximately £5,493,885 completed in two rounds at a placing price of £0.01 per share, implying a market capitalisation of circa £14.5m on Readmission. The Company aims to build a position as an emerging East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Following Readmission, it aims to rapidly increase production to +50,000ozs per annum (‘p.a.’) and build a JORC compliant resource base of +3Moz within 12-18 months from listing. To this end, a phased mine optimisation strategy at the Company’s newly acquired Kilimapesa Gold Mine is already advancing, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz.

SigmaRoc (AIM:SRC) has completed the RTO of Nordkalk Oy Ab, a wholly-owned subsidiary of Rettig Group, for a total Consideration of EUR470m. Nordkalk was established in 1898 as a limestone developer in Finland and since expanded across northern Europe to become the leading limestone company in the area. The Company has raised £260m from the Placing and £1.6m from the Retail Offer. Based on the Placing Price, Mkt Cap on Admission is expected to be approximately £542m.

Off the Menu:

No Leavers today.

What’s Cooking in the IPO Kitchen?

VSA Capital has applied for admission to the AQSE Growth Market. VSA Capital is an international investment banking and broking firm, with offices in London and Shanghai, providing corporate finance, advisory and capital markets services to private and public companies Offer tba. Due 9 Sep
Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
Access Intelligence (ACC.L) to acquire Isentia Group. The Acquisition constitutes a reverse takeover under AIM Rule 14. £50m to be raised on admission of the fundraising shares. Anticipated Mkt cap on re-admission of the Enlarged Group: £153.1m (based on the placing price of 120 pence). The Enlarged Group will provide a broad suite of technology products for marketing intelligence, reputation management, and data insights and the Enlarged Group’s main country of operation will be Australia. Due 2 September.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (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. Offer TBA. Due Late September.
Longboat Energy (LBE.L), Longboat has secured three bilateral transactions to acquire a significant, near term, low risk exploration drilling programme in the Norwegian Continental Shelf. These agreements will provide Longboat Energy with a working interest in up to seven near term exploration wells. The farm-in agreements will constitute a reverse takeover for the purpose of Rule 14 of the AIM Rules. £35m raised prior to re-admission. Readmitted at Mkt cap of c.£40m. Due Early September.
Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.
South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

Breakfast Buffet

Bradda Head Holdings 9.1p £26.7m (BHL.L)

The North America-focused lithium development group, announced three key senior appointments: Adam Hawkins appointed as ESG Officer, Don Hains P. Geo., MBA, appointed as Technical Consultant and Dr. Yatendra Sharma BSc Hons, MSc, PhD, CChem, MRACI, MAusIMM, appointed as a Lithium Processing Consultant. Don is the author of the CIM Best Practice Guidelines for Reporting of Lithium Brine Resources and Reserves and a co-author of the CIM Best Practice Guidelines for Reporting on Industrial Minerals Resources and Reserves. Yatendra has more than 47 years’ experience at top management levels in various multinational companies in production, R&D and project managements of various mineral projects. Yatendra is also the inventor of 16 battery patents (including Li ion batteries and processing of Li from its ore and electrodes materials) and has several publications in international journals.

Clarify Pharma 2.65p £7.9m (AQSE:PSYC)

The investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announces its unaudited financial results for the six months ended 31 May 2021. Raised a total of £1.29m in a pre-IPO funding round. Post-period highlights: Successfully completed an IPO on London’s AQSE Growth Market (AQSE) on 11 June 2021 with a Mkt Cap of approximately £7.43m. Raised £1.96m in total before expenses via a placing and subscription at 2.5p per share at flotation . Made a first capital investment in Beckley Psytech Limited, a private company dedicated to addressing neurological and psychiatric disorders through the novel application of psychedelic medicines. Net cash of £1.79m as at 31 August 2021 Outlook: The deal flow of potential investments remains strong and the Directors and Advisers continue to evaluate exciting new opportunities that will generate long-term value for investors. The Company is well positioned to take advantage of the growing psychedelics market as it continues to develop significantly along with the regulatory environment.

Futura Medical 38.85p £111.5m (FUM.L)

The pharmaceutical company developing a portfolio of innovative products based on its proprietary, transdermal DermaSys® drug delivery technology and currently focused on sexual health and pain, today announces it has entered into a licensing agreement with m8 Pharmaceuticals, Inc, a specialty biopharmaceutical company focused on commercialisation in Latin America, for the rights to exclusively develop and commercialise the Company’s topical, gel-based Erectile Dysfunction (ED) treatment MED3000, in Brazil and Mexico. Futura to receive payments on all sales of MED3000 from m8. Futura also eligible to receive up to $8.5m in milestone payments based on deliverable sales volumes, including a small initial upfront payment. M8 is responsible for all local MED3000 development and regulatory costs in Brazil and Mexico as well as marketing expenses and ongoing pharmacovigilance and safety within the region.

Oxford Biodynamics 50.3p £46.6m (OBD.L)

The biotechnology company developing targeted clinical diagnostic tests for immune health utilising its EpiSwitch®3D genomics technology, announces that it has been awarded an FNIH Partnership for Accelerating Cancer Therapies (PACT) Grant to use the EpiSwitch diagnostic platform for accurate prediction of a patient’s response to Immune Checkpoint Inhibitors (ICIs) from a routine blood sample. The grant worth $910k (RFA #2021-PACT001) is executed by the Foundation for the National Institutes of Health (FNIH), a US not-for-profit organisation managing the precompetitive collaboration between the National Institutes of Health (NIH), National Cancer Institute (NCI), US Food and Drug Administration (US-FDA), and 12 leading pharmaceutical companies comprising AbbVie, Amgen, Boehringer-Ingelheim, Bristol-Myers Squibb, Celgene, Genentech/Roche, Gilead, GlaxoSmithKline, Janssen, Novartis (NIBR), Sanofi, and Pfizer, as part of the Beau Biden Cancer Moonshot™ Initiative accelerating cancer research. PACT seeks to provide a systematic approach to cancer biomarker investigation in clinical trials by supporting development of standardised assays.

Oracle Power 0.37p £8.35m (ORCP.L)

Further highly positive geochemical sampling results have defined five drill target areas at its 100% owned Jundee East Gold Project, located in the Eastern Goldfields region of Western Australia which is located ~7km due east of Northern Star’s Jundee Gold Mine. These further positive results show that indicator elements (including gold and copper) are mobilising to surface at an atomic level above the target area which further supports the potential of a mineralised system in a previously unrecognised greenstone belt, proximal to Northern Star’s producing Jundee Gold Mine, which has a current Resource of 5.4Moz. The programme has successfully defined five large target zones which are now essentially “drill ready” for first pass testing, with a programme currently being developed.

Physiomics* 7.05p £6.9m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions, announced that Hayley Close has today joined the Company as Head of Business Development. Hayley holds a degree in Biomedical Science from University College London and joins from Fusion Antibodies plc, where she was Key Account Manager responsible for identifying and engaging with new clients and developing existing business globally. At Physiomics, Hayley will work directly with the CEO and senior management team with the aim of significantly expanding both existing and new business. Dr Jim Millen, CEO, commented “Physiomics has reached the stage of its growth where we believe there will be real benefit in retaining a full-time business development executive. Hailey joins us with a fantastic track-record and we look forward to working with her to significantly expand Physiomics’ business”.

Strix Group 368p £760m (KETL.L)

The global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, announced that the opening ceremony for its new factory within Zengcheng district in Guangzhou, China, took place on Friday 27 August 2021 and that manufacturing is fully operational. The new factory will double the Group’s current manufacturing capacity enabling it to grow the business and deliver its stated strategy of doubling revenues over the next five years. Efficiencies and further in-sourcing arising from the new manufacturing facility are expected to have a positive effect on margins.

Trident Royalties 33.5p £60.5m (TRR.L)

Trident has entered into a binding agreement with Seduli Sutter Operations Corporation to acquire a Net Smelter Return royalty over production from the Lincoln Gold Mine located in California, USA. Seduli intends to utilise the royalty sale proceeds to finalise the restart of Stage 1 production at the Lincoln underground gold mine. The Net Smelter Return Royalty is being acquired for a cash consideration of US$2.5m, payable immediately by Trident. Seduli has indicated that it will utilise the proceeds to commission the refurbished processing plant and commence mining operations, as well as for general working capital purposes. Royalty payments will be made to Trident on a quarterly basis. The NSR royalty rate will be 1.50%, decreasing to 0.75% upon US$3m being paid on the Royalty. A near term cash-generative royalty over a low-cost, high-grade asset which plans to commence Stage 1 production of 220 tonnes-per-day in 2021, targeting approximately 20,000+ ounces of gold per year. The Project is permitted for Stage 2 production of up to 1,000 tonnes-per-day (80,000+ ounces per year), which is anticipated to commence, subject to funding, immediately following successful completion of Stage 1. Prior to the stepdown in royalty rate, Stage 1 is expected to generate over US$0.5m per year in pre-tax royalty revenue, increasing to over US$2m per year in Stage 2.

Velocys 4.95p £52.7m (VLS.L)

The sustainable fuels technology company, announced that its collaboration partner, Toyo Engineering Corporation (TOYO) is starting the advanced engineering and design phase of a commercial scale biofuel refinery in Japan. TOYO’s engineering study will start to establish commercial-scale production of Sustainable Aviation Fuel (SAF) in Japan. During this phase of the project, TOYO will integrate biomass gasification, Velocys’ Fischer Tropsch (FT) technology and other process technologies to efficiently convert woody biomass into SAF. This project is part of the “Biojet Fuel (or SAF) Production Technology Development Project” of the Japanese Government’s New Energy and Industrial Technology Development Organization (NEDO).

Verici Dx 69.5p £98.5m (VRCI.L)

The developer of advanced clinical diagnostics for organ transplant, announces that patient enrolment for a multi-centre observational clinical validation study for the Company’s lead products has concluded ahead of management expectations. Early completion of enrolment supports that the Company remains on track to complete the validation study for these products by the end of 2021, in line with expectations set out in the Company’s admission document. Verici Dx has partnered with eleven leading US and EU centres to date to run a global, non-randomised study for the clinical validation of Verici Dx’s lead products, ClaravaTM and TutevaTM. The study uses next generation sequencing in the Verici Dx laboratory to create transcriptomic profiles to validate performance characteristics of the lead Verici Dx signature tests. Over the longer term, the study will also provide validation for the Company’s fibrosis test, called Protega™. Patient enrolment continues for validation of Protega and is expected to complete by Q3 2022. The end points of the validation study for this product are expected to be reached up to two years after the completion of enrolment, with data expected shortly thereafter around year-end 2024.

Head Chef:

Derren Nathan
0203 764 2344

*A corporate client of Hybridan LLP


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 with “unsubscribe me”.