Small Cap Feast

13th January 2022

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What’s Cooking In The IPO Kitchen?

Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.

SuperSeed Capital Limited, to join the AQSE Growth Market. The Company will invest in technology-led innovation primarily through unquoted funds managed by SuperSeed Ventures, the Company’s Investment Manager, with the objective of maximising the investors’ long term total returns – principally through capital appreciation. Mkt Cap and Capital to be raised TBC.

Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Jan.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission late Jan.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in mid Jan 2022.

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. Due late Jan 2022.

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 early Q1 2022.

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. Due late Jan 2022.

Breakfast Buffet

ADVFN 70p £18.3m (AFN.L)

The Board of ADVFN (the stocks and shares website) has noted several recent announcements of significant shareholdings and the Board is concerned that control may be being sought by long-standing group of shareholders whose total interests may not be aligned with shareholders as a whole. Furthermore, the Board believes that the Company, having reached a stage of reported profitability, has valuable assets which could well be of interest to a number of parties. As the Board believes that the currently tightly held and illiquid nature of its ordinary shares may represent an impediment to achieving a correct valuation in the market, the Board has been considering the options for the Company with its advisers. The Board wishes to maximise value for all existing shareholders and has now determined to undertake a formal review of the Company’s strategic options. These options include, but are not limited to, a sale of the Company itself which the Board intends to conduct under the framework of a “formal sale process” in accordance with Rules 2.4 and 2.6 of the Takeover Code. As the Company is currently cash generative, the Board does not anticipate any new funding requirements. The Strategic Review is therefore solely aimed at creating and/or realising shareholder value.

Alpha FX 2,255p £923.7m (AFX.L)

The global provider of high-tech, high-touch financial solutions, transforming banking services for corporates and institutions operating internationally, today announces the appointment of Nick Maton as Managing Director, Luxembourg. Nick has over 30 years’ experience in financial services, including managing and growing businesses in the Luxembourg markets, which is an area of strategic importance for the Group. He joins Alpha with an in-depth knowledge of the alternative investment sector alongside his traditional banking experience. Having relocated to Luxembourg in 2006, Nick has spent the past 15 years in senior executive positions at J.P. Morgan, HSBC and most recently as Managing Director of Intertrust, Luxembourg. His experience and leadership in the local industry, combined with delivering client-centric solutions, brings the right set of skills and expertise to extend Alpha’s presence to Luxembourg. Following the launch of Alpha’s alternative banking platform, Alpha announced in October 2021 its intention to open a Luxembourg office to meet growing local demand for its alternative banking solutions. Subject to regulatory approval, the Group expects to fully establish this office later in the year, in order that it has a true local presence and is best positioned to support the needs of its growing client base within the country. Until then, the Group can continue to support its existing clients in Luxembourg by passporting its European regulatory license.

ASOS 2,515p £2,257.6m (ASC.L)

ASOS plc today announces the appointment of Patrick Kennedy, Chairman of Bank of Ireland Group plc and the former Chief Executive of Paddy Power plc, to its Board of Directors with immediate effect. Patrick replaces Ian Dyson as the Senior Independent Non-Executive Director and Audit Committee Chair, following Ian’s appointment as Non-Executive Chair of the Board on 29 November 2021. In a 30-year career in business, Patrick has held a range of senior roles, having started his career at KPMG and McKinsey & Company. From 2006 to 2014 he was Chief Executive of Paddy Power plc and before that worked for Greencore Group plc, including as Chief Financial Officer. He is currently Chairman of Bank of Ireland, Chairman of CarTrawler, the B2B travel technology company, and Honorary Treasurer of the Irish Rugby Football Union. He was previously a non-executive director of Elan Corporation plc, where he chaired the Leadership, Development and Compensation Committee, and a non-executive director of Paddy Power plc, where he chaired the Audit Committee. ASOS is a destination for fashion-loving 20-somethings around the world, with a purpose to give its customers the confidence to be whoever they want to be.

CPP Group 365p £32.3m (CPP.L)

The provider of assistance and insurance products which reduce disruptions to everyday life for millions of customers across the world updated on its investment in KYND, a provider of pioneering cyber risk management solutions to the insurance industry. KYND has secured £3.25m of investment from Business Growth Capital (also known as the British Growth Fund / BGF) a UK and Ireland-based growth capital investment company that provides funding as a minority, non-controlling equity partner. Founded in 2018, KYND has developed an industry-first API-based technology platform that gathers and processes data to assess cyber risk for small and mid-market companies, insurers, brokers, and their clients, providing instant and meaningful insights into exposure. KYND has achieved 1000% growth on annual recurring revenue since June 2020 and developed partnerships with high-profile insurers and brokers, such as Beazley, Howden, Paragon and Alliant. BGF’s investment will be used to accelerate KYND’s growth and global expansion plans while supporting the development and launch of cutting-edge cyber risk technology products.

Finsbury Food Group 99p £129.1m (FIF.L)

The UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, announces an update on trading for the six months ended 25 December 2021. The Group delivered a robust H1 performance, notwithstanding the external challenges being faced by the Company, with total sales of £166.5m representing an 8.9% increase versus the corresponding period in the prior year. It also reflects a 4.4% increase on the first half of FY 2020 (30 June to 28 December 2019) which was a period unaffected by the pandemic. This growth in sales has been driven by a stable performance in UK retail (+1.5%), a continuation of the robust recovery in foodservice (+25.9%) and a 32.3% increase in the Group’s Overseas division. Throughout H1 the Group has faced persistent pressure from input cost inflation, staff shortages and other supply chain disruptions. It has been able to successfully mitigate the impact of these pressures to date through commercial negotiations, operational improvements and other supply chain initiatives. It will continue in the same vein given further inflationary cost pressures are expected in H2. In addition, the impact of Omicron on foodservice consumer demand and production disruption due to staff members required to self-isolate remains unpredictable, but the Company has a successful track record of navigating challenging market conditions, and will continue to use its experience as it works through the second half.

Pipehawk 23.5p £7.1m (PIP.L)

QM Systems Limited, one of the Group’s principal subsidiaries, has signed a ten-year lease for a modern open space building at Hartlebury Industrial Estate – the largest industrial estate in Worcestershire, approximately seven miles north of Worcester at an annual rental of £263k with a rent-free period. The New Premises comprise over 44,000 sq.ft. of useable space, over five times the available floor space and approximately 80% additional office and commercial space when compared with QM’s existing premises. The significant expansion is driven partly by a requirement for more floor space for QM Systems Project Business and partly by QM’s expansion into Contract Manufacturing and New Product Introduction. The Ventive Manufacturing Business Unit will initially occupy approximately 9,000 sq.ft. and approximately 10,000 sq.ft. has been earmarked for further contract manufacturing opportunity which is at an advanced stage of negotiations. The additional space provides the platform to facilitate significant growth within QM over the next few years. PipeHawk’s commercial strategy is focused on providing innovative technology solutions across a wide range of industries, but specialising in Highways, Automotive, Rail, Aerospace and Slip Test Solutions.

Quixant 171.5p £114m (QXT.L)

The provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries, provides an update on trading for the financial year ended 31 December 2021. The Group had a strong finish to 2021 and expects to report full year revenue of $87.1m, ahead of market expectations1, driven by robust demand for Quixant’s products across both the Gaming and Densitron divisions. The Group also expects adjusted profit before tax to be ahead of market expectations, despite the continued pressure on margins presented by electronic component shortages and price inflation. Net cash as at 31 December 2021 increased to $17.6m, as compared to $15m as at 30 June 2021. The robust trading in 2021 and continued supportive trading environment, despite ongoing COVID risks, positions the Group well for further growth. Since Q2 2020 the gaming market has generally remained resilient to lockdown restrictions, and customers have demonstrated increasing demand. The Group enters 2022 with a strong order book which provides good forward visibility across both divisions. Management continues to closely monitor and, as much as possible, mitigate supply chain challenges and the impact of cost inflation on overheads and component pricing which are expected to continue into at least the second half of 2022.

SEED Innovations 7.1p £15.1m (SEED.L)

The AIM quoted company investing in fast growing and industry leading businesses with a focus on the medical cannabis, health and wellness space, updated on its portfolio company Eurox Group, a German-based, European vertically integrated medical cannabis company, which has entered into an exclusive agreement with Orchid Ventures Inc., a multi-state cannabis innovation company, on a submission to German Authorities for approval of a premium medical vaporizer device. Under the terms of the agreement, Eurox, PurTec, and JWEI, the Company’s OEM supplier and partner, will submit one of PurTec’s premium disposable vaporiser devices to authorities in Germany for Medical Device Approval. All three companies will be working in collaboration on several requirements and safety studies to prove the efficacy and safety of the device. The companies have already begun securing various certifications to speed up the approval process. Once the device is approved, Eurox will have exclusivity regarding sales and distribution of the PurTec product in the European Union, United Kingdom and Brazil.

United Oil & Gas 2.7p £16.9m (UOG.L)

Successful test results and commencement of production from the Al Jahraa-13 development well (“AJ-13″), in the Abu Sennan licence, onshore Egypt, which is operated by Kuwait Energy Egypt. Well tested with flow rates of: 897 bopd and 0.95 mmscf/d gas (c. 1,087 boepd gross; 239 boepd net) on a 64/64″ choke and 623 bopd and 0.47 mmscf/d gas (c. 717 boepd gross; 158 boepd net) on a 32/64″ choke. The well has now been tied into the existing facilities and brought on stream at an initial rate of c. 600 bopd gross on a 48/64” choke. This is less than eight days from completion, rapidly adding additional production and revenue to the Company. The ECDC-6 rig will now move to drill the ASD-2 development well, the first well in the 2022 campaign. As previously announced, the AJ-13 well, which is a follow up to the successful Al Jahraa-8 well, safely reached a TD of 3,840m, several days ahead of schedule and under-budget. The well has been logged and interpreted to have encountered 17.5m of net oil pay across the Upper and Lower Bahariya reservoir targets, in line with the range of pre-drill expectations.

Zoo Digital 133p £116.6m (ZOO.L)

The provider of end-to-end cloud-based localisation and media services to the global entertainment industry, announced the appointment of Nathalie Schwarz as Non-executive Director with immediate effect. Nathalie brings 20 years of board-level international experience from her roles in both publicly listed and privately owned companies. She has particular expertise in the media and digital technology sector with a career spanning broadcasting (television and radio), mobile and digital interactive platforms and information/data services. This includes as Group Commercial and Development Director at Channel 4 Television Corporation, overseeing the negotiation of its commercial partnership with UKTV. She also served as Group Strategy and Development Director at Capital Radio plc as the FTSE 250 company completed an £800m merger to create the largest commercial radio analogue and digital group.

13 January 2022
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged


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