Small Cap Feast
Small Cap Feast – 9th September 2022
Dish of the Day:
No joiners today
No joiners today
Off the Menu:
ScotGems Plc has left the Main Market
ScotGems Plc has left the Main Market
What’s Cooking in the IPO Kitchen?
Critical Metals plc, a company established to acquire mining opportunities in the critical and strategic metals sector, is to be re-admitted onto the Main Market under the ticker “CRTM”, following the proposed acquisition of a 57% interest in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project located in the Democratic Republic of Congo. Conditionally raised £1.8m. Expected 12th September.
Aurrigo Group plc, a international provider of transport technology solutions, intends to join AIM. The Group designs, engineers, manufactures and supplies OEM products and autonomous vehicles to the automotive, aviation and transport industries. Capital to be raised and Mkt Cap TBC. Expected Mid-September.
Scythian Mining, a clean gold explorer and developer with operations in Kazakhstan, intends to IPO on the London Stock Exchange in mid-2023, due to successful drilling at Kokkus. Scythian is negotiating an additional funding agreement with a US investor for a further 15,000m of drilling to increase the Kokkus resource with a target of 2-3m oz Au plus a PFS before the IPO.
Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.
Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.
Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.
Amur Minerals 1.34p £18.6m (AMC.L)
The nickel copper sulphide mineral exploration company focused on the far east of Russia announces its unaudited half-year results for the period ending 30 June 2022. Operating loss was US$1.7m, compared with $1.1m in 1H21. Cash balance was US$5.3m. On 8 August 2022, Amur announced its agreement to sell its indirect subsidiary Kun-Manie for an aggregate consideration of US$35m. The buyer is Bering Metals LLC, a Russian company controlled by Vladislav Sviblov. Following receipt of the consideration of US$35m, Amur intends to pay a special dividend of 1.8p per share, within 90 days of the transaction completion. Meanwhile, the company is seeking to acquire another business.
90 Holdings 4.63p £12.3m (B90.L)
The online marketing and operating company for the gaming industry, announces that it has raised £305k (before expenses) through a subscription for 7.625m new ordinary shares at a price of 4p per share, at a discount of approximately 3.3% to the volume weighted average price for the 5 trading days up to and including 8 September 2022. The subscription Shares represent 2.9% of the Company’s existing issued share capital. The net proceeds will be utilised for working capital and marketing activities.
Coro Energy 0.30p £6.4m (CORO.L)
The Southeast Asian energy company with a natural gas and clean energy portfolio, provides an update on Mako Gas Project. The partners in the Duyung PSC have approved an updated Plan of Development (PoD) and have approved and secured alignment with SKKMIGAS on the PoD. The PoD now been submitted to the Indonesian Ministry of Energy and Mineral Resources for approval. The Operator of the Duyung PSC is WNEL, a 100%-owned subsidiary of Conrad Asia Energy Ltd, who hold a 76.5% interest in the Duyung PSC. Coro hold 15%. Empyrean Energy plc hold 8.5%.
Creo Medical Group 68p £123.4m (CREO.L)
The medical device company focused on surgical endoscopy, announces its unaudited results for the six-month period ended 30 June 2022. Revenue was £13.6m, up 5.4% from £12.9m in H1 2021. Underlying EBITDA loss (with R&D tax credits added back) was £11.9m. Cash and cash equivalents was £26.1m and interest bearing liabilities increased to £10.5m at 30 June 2022. Growth in Creo core technology and Kamaptive revenues, gross margin in non-core products and cost control will support the continued reduction in underlying operating loss for 2H 2022.
Great Western Mining 0.13p £4.8m (GWMO.L)
The explorer and developer of gold, silver and copper targets in Nevada, announce the assay results from summer 2022 drill campaign at the Mineral Jackpot and Rock House prospects in the Walker-Lane trend. Four holes were the first ever drilled in this historic group of mines at the Mineral Jackpot and Hole 4 encountered a significant silver intercept with associated gold at very shallow depth. Three holes drilled to follow up successful 2021 programme at the Rock House and there was reportable gold intercepts near to surface. New copper zone was also identified.
Hardide 19p £10.6m (HDD.L)
The developer and provider of advanced surface coating technology, announces its intention to raise gross proceeds of approximately £0.5m through (i) a placing of new ordinary shares via book-building and (ii) a subscription for new ordinary shares by certain directors for an aggregate amount of £0.2m. The fundraising will satisfy the near-term cash requirements. However, further working capital will be required given the challenging business environment and the outstanding cash payment from a significant customer.
London Security £29.00 £355.6m (LSC.L)
The company engaged in the manufacture, sale, and rental of protection equipment announces its unaudited interim results for the six months ended 30 June 2022. Revenue increased by 7.1% to £88.6m but operating profit decreased by 11.4% to £10.9m year-on-year, due to worldwide supply chain disruption, energy and wage inflation. Net cash balance as at 30 June 2022 was £27m, compared with £27.6m on 31 December 2021. During the period, London Security made four acquisitions on the continent and will continue to seek acquisition opportunities across Europe. The company believes that with a healthy balance sheet, it is well placed to cope with any economic downturn.
Marwyn Acquisition 1.8p £11.7m (MACP.L)
The investment company announces its results for the year ended 30 June 2022. Loss after taxation £0.4m (FY21: £0.7m) and net cash balance was £4.8m (FY: £5.2m), with no debts. The Directors believe that the recent decline in certain sector valuations is likely to continue over the short term due to macroeconomic and geopolitical uncertainty, and as a result may provide opportunities for attractively priced assets. The strategy is to acquire platform trading assets in the industrials, manufacturing, engineering, construction, building products or support services sectors.
Manolete Partners 214p £93.6m (MANO.L)
The insolvency litigation financing firm announces that it has received a rare adverse decision in the High Court on one of its larger cases and as a result, the Board has decided to write down the full value of the case for the six months ended 30 September 2022 (FY23 interim results). The impact will be a reduction of £2.3m in pre-tax profits and the cash costs paid out on this case to date are £637k. In addition, due to the challenges in the UK macro-economic climate, the Board has taken a more prudent view of the valuation of the Company’s c.280 ongoing litigation case investments. In conclusion, the company expects to announce a pre-tax loss of c.£5m in the FY23 interim results, the large majority of which will be due to the adjustment of unrealised revenues and unrealised profits.
XP Factory 12.8p £19.2m (XPF.L)
The experiential leisure business operating the Escape Hunt™ and Boom Battle Bar™ brands, announces the acquisition of 100% of Boom Battle Bar Cardiff Limited in Cardiff for an enterprise value of £2.15m. The unaudited net assets of Boom Cardiff as at 30 June 2022 were £240k. Meanwhile, XP Factory’s unaudited half-year results to 30 June 2022 are expected to show revenue in excess of £8m, compared to £1.2m in 1H 2021. Despite the macro-economic backdrop, trading in the UK since 30 June 2022 in both Boom and Escape Hunt sites has been encouraging.
Emily Liu, CFA, CAIA
0203 764 2344
0203 764 2345
*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 firstname.lastname@example.org with “unsubscribe me”.