Small Cap Feast

Small Cap Feast – 15 November 2021

Dish of the Day:

PYX Resources (PYX.L) Limited, a producer of premium zircon, has joined the Main Market (Standard), a producer of premium zircon. The Company is currently listed on the National Stock Exchange of Australia, (NSX:PYX), which will remain its primary listing.  Mkt cap c.£349.2m . No funds raised.

 

Off the Menu:

No Leavers Today

 

What’s Cooking in the IPO Kitchen?

What’s cooking in the IPO kitchen?

 

Press reports that  World Chess Championship is reviving plans for a London stock market listing. World Chess is majority-owned by its management team, but also includes Kaspersky, the cybersecurity services provider, among its minority investors.

Gelion to join AIM. UK-Australian energy-storage innovator founded in 2015 by Professor Thomas Maschmeyer as a spin-out from the University of Sydney, Australia’s first university. Due late Nov on AIM. Offer TBC.

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of adjusted EBITDA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by 23  Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12m primary and £8m secondary. Anticipated Mkt Cap on Admission: £92.0m.  Due 22 Nov.

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

Life Science REIT to join AIM  raising up to £300m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties. Due 19 Nov.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

Nu-Oil and Gas  to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Q4 2021.

Pantheon Infrastructure to join the Main Market (Premium). PINT will make investments in private infrastructure assets. Due 16 Nov, raised £400m.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the 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. Due Mid Nov. Offer TBC.

 

Breakfast Buffet

ADM Energy* 1.7p £2.7m (ADME.L)

Fundraise of £475,000 at 1.5p and business update by the natural resources investing company. Subscriptions by five Directors amounting to £175,000 at the placing price.  Additional conversion by debt holders, consultants and service providers equating to £228,500 at the placing price. The funds will be used to provide general working capital for the Company in order to continue its strategy of identifying and evaluating high-quality assets in West Africa at depressed valuations with substantial upside for shareholders. The Company is currently assessing several investment opportunities, in line with ADM’s growth plans and its established relationships with project debt and off-take lenders, which the board considers may have the potential to add significant value to ADM. At Aje, the Partners continue to work on a final investment decision on a new multi-phase development plan for the Aje Field which could significantly increase production levels. The FDP for the initial phase is primarily focused on the development of two new oil wells and a gas injector well which initial appraisals indicate could increase gross field production to 9,000 barrels of oil and liquids per day. At Barracuda the CPR is still to be finalised pending further technical appraisal and, therefore, ADM will only be able to finalise the proposed development plans for Barracuda once it is completed.

 

Angle 128.5p £302m (AGL.L)

The liquid biopsy company announces the appointment of Todd Druley, M.D., PhD. in the newly created role of Chief Medical Officer, based in the United States. Dr Druley brings highly relevant clinical and business expertise to the planning, development and commercialisation of ANGLE’s diagnostics offerings through its clinical laboratories, regulatory filings and pharma services. Most recently, Dr Druley held the position of Chief Medical Officer at ArcherDX, Inc., a genomic analysis company focused on precision oncology, where he established and grew its medical team before the Company was acquired by Invitae Corp. for up to US$1.4bn in October 2020. During his tenure, he built an international team that successfully established new translational applications for ArcherDX assays and, in particular, its “Personalized Cancer Monitoring” assay, which is a patient-specific, bespoke assay for detecting 50 cancer-specific mutations from cell-free DNA in blood.

 

Ariana Resources 4.8p £52.4m (AAU.L)

Ariana announced the commencement of drilling programmes at Salinbas and Tavsan.  These projects are part of the Zenit Madencilik San. ve Tic. A.S. Joint Venture  with Proccea Construction Co. and Ozaltin Holding A.S. and are 23.5% owned by Ariana.   Over 2,300m of resource and exploration drilling planned at Salinbas to increase confidence in resource and extend the peripheries of the current model. Over 2,000m of resource drilling planned at Tavsan prior to commencement of mining. Kiziltepe Sector drilling programme has concluded following the completion of over 15,000m, representing the most significant single programme conducted to date.

 

CloudCoCo 2p £14.1m (CLCO.L)

The UK provider of managed IT services and communications solutions to private and public sector organisations has been awarded a multi-year contract with a new customer in the digital transformation services industry which services clients globally. The contract is valued at approximately £3m over a period of three years with further upside potential. It is the largest managed services contract signed by the Company since CloudCoCo was formed in April 2018 and will see the customer receive a high availability hosted cloud platform solution tailored to its needs and managed 24/7 by CloudCoCo’s team of experts.

 

Kibo Energy* 0.2p £5.1m (KIBO.L)

The multi-asset energy development company notes that its 55% subsidiary, MAST Energy Developments PLC, today announced that MAST’s recently acquired 9 MW Pyebridge Generation facility’s installation commissioning checks have been completed successfully, and that MAST’s engineers have certified Pyebridge in Commercial Steady State Status as of 15 November 2021.

 

Mkango Resources 37.5p £83.4m (MKA.L)

Mkango Announces HyProMag Expansion Into Germany. HyProMag Limited subsidiary established in Germany to rollout commercialisation of HPMS (Hydrogen Processing of Magnet Scrap) technology into Germany and Europe, and to further support Government initiatives to strengthen European rare earth supply chains and accelerate the green transition. New German subsidiary, HyProMag GmbH, is 80% owned by HyProMag Limited and 20% owned by Professor Carlo Burkhardt of Pforzheim University in Germany, co-ordinator of the EUR14m EU funded SusMagPro project (www.susmagpro.eu) focused on rare earth magnet recycling with 19 partners across the European supply chain. Both Mkango and HyProMag now have strong and complementary platforms for growth in both the UK and EU, and are well positioned to capitalise on accelerating demand for rare earths and increased focus on the circular economy.

 

Open Orphan 20.5p £137.5m (ORPH.L)

The rapidly growing specialist contract research organisation (CRO) and world leader in vaccine and antiviral testing using human challenge clinical trials , announces that Venn Life Sciences, a subsidiary of Open Orphan, has signed a contract renewal with a major global pharmaceutical client worth £1.5m over two years. The renewed contract will commence in January 2022, with the Venn team in Breda providing dedicated clinical pharmacokinetics support to this leading global pharmaceutical client on an array of drug development programmes, to study the absorption, distribution, metabolism and excretion of drugs within the body.

 

Seeing Machines 11.38p £441m (SEE.L)

The advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, announces a collaboration agreement with the world’s largest Tier 1 Avionics company, Collins Aerospace. The Agreement positions Seeing Machines to work closely with Collins to jointly market co-developed solutions across the Aviation industry to deliver its eye-tracking technology solutions to Commercial Air Transport, Business, Military, Rotary Wing, General Aviation and Flight Training customers to address improved safety and efficiencies for both pilot training and flight operations.

 

Stanley Gibbons 3.2p £13.6m (SGI.L)

The Company announced the purchase of 20% of the equity in Showpiece Technologies Ltd from Phoenix Asset Management Partners, through its subsidiary Stanley Gibbons Limited. Showpiece is the fractional ownership platform through which the company is making available for sale, beneficial title in fractions of the world’s most valuable stamp, the 1c-Magenta at www.showpiece.com. The cash price of the transaction of £2,000 is equivalent to 20% of the value of the equity in the business, all of which is held in cash. The other 80% is contemporaneously being purchased by Castelnau Group plc, a Company controlled by PAMP, for £8,000. Showpiece is a technology platform business which focuses on providing fractional ownership of culturally significant items. It was incorporated in August 2021 and as of the date of the transaction has not recorded any revenue, profit or loss.

 

Urban Logistics 175.25p £569m (SHED.L)

Further to the announcement on 27 October 2021, Urban Logistics, the last mile logistics focused REIT, announces an  Placing targeting gross proceeds of £200m  at a price of 170 pence per share. Having fully deployed or committed £134m of capital following the Company’s £108m July fundraising, the manager has identified a further pipeline of high quality, last mile logistics assets, strategically located in targeted logistics hubs, totalling in excess of £400m. The Company intends to use the net proceeds to acquire a significant part of this pipeline.

 

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”.