Small Cap Feast

13th June 2023

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What’s Cooking In The IPO Kitchen?

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.)

WE Soda, the world’s largest producer of natural soda ash, more commonly known in the UK as sodium carbonate or washing soda, announces that it is considering listing on the Premium Segment of the Main Market. WE Soda, an extractor of soda ash in Turkey and the US, is a subsidiary of Ciner Group, an industrial and media conglomerate. It is a high-margin business and last year it reported adjusted operating profits of $892m on revenues of $1.77 bn. The Offer would be wholly comprised of ordinary shares to be sold by the existing shareholder. Separately from and in addition to the Offer, the Company is also considering making an exempt public offer of Shares to retail investors in the UK through the PrimaryBid platform. The value of Shares sold will not exceed EUR8m equivalent (approximately £6.95m).

Breakfast Buffet

Cambridge Cognition Holdings 101.5p £35.3m (COG.L)
The developer and marketer of digital solutions to assess brain health, announces it has won a £2m contract for a pivotal cancer therapy trial. The Company will provide its proprietary cognitive assessments (CANTAB®) as an exploratory endpoint with revenue from the contract expected to be recognised over the next 5 years. Supported by the Company's experienced clinical project management team, CANTAB® will be deployed in 9 countries and in 11 languages to accurately assess cognition across 70 trial sites.

Driver Group 32p £16.7m (DRV.L)
The provide of consultancy services to the engineering and construction industries announces its interim results for the six months ended 31 March 2023. Revenue was slightly down to £24.2m (2022: £24.4m) which is attributable to the restructured Middle East and Asia Pacific regions. Gross profit margin at 26% (2022: 24%), a £0.5m increase to £6.3m (2022: £5.9m). Profit before tax increased to £0.5m (2022: £0.1m) and net cash increased to £5.3m (2022: £3.7m). Revenues in the Europe and Americas (EuAm) region increased to £19.1m (2022: £17.4m) with revenues in the Middle East down to £3.7m (2022: £5.4m) and revenues in APAC down to £1.4m (2022: £1.7m). This is in line with the company’s strategy of EuAm being the central business hub. Driver Group's business in EuAm continues to trade profitably, and post-restructure, the Middle East are expected to contribute a profit for the current financial year with APAC being well placed to improve further during FY24 as a consequence of work coming out of Korea.

Hellenic Dynamics 0.115p £14.5m (HELD.L)
The specialist cultivator and supplier of tetrahydrocannabinol (THC) dominant strains of medical cannabis flowers, announces it has signed a Memorandum of Understanding (MoU) with Deutsche Medizinalcannabis GmbH, which trades as Demecan Holding, for the cultivation and supply of medical cannabis flowers. Demecan is the only licensed independent German company that covers the entire value chain for medical cannabis from cultivation through processing to distribution. This MoU represents the first commercial agreement for the company under the expanded contract cultivation strategy. Under the MoU, Hellenic will grow and supply medical cannabis flowers from Demecan provided cultivars, in an indoor cultivation area capable of producing circa 1,200 kg of medical cannabis flowers per annum under Good Agricultural and Collection Practice (GACP). Demecan will then process the delivered flowers in its own EU-GMP facilities for onward sale. Hellenic Dynamics is also in discussions with a number of other licensed European distributors, who have their own GMP processing facilities for similar POD agreements.

Pennant International Group 36.5p £13.4m (PEN.L)
The IPS software and services company, provides a business update, with a number of new contract wins. The company has secured a contract on an Australian defence programme, to supply software solutions and technical services worth AUD$5.2m over 5 years, representing the first sale of Pennant's new GenS software, which will be fully launched to market in early 2024. Pennant have also secured an upgrade on an existing Australian contract to provide specialist facilities and services worth AUD$1.2m over 5 years; a £250k perpetual software licence to a European defence department; and a contract for technical railway mapping services in the UK, worth circa £130k this year.

Rockfire Resources 0.33p £6.1m (ROCK.L)
The base metal, gold and critical mineral exploration company, announces that the Company's fourth drill hole, as part of its geotechnical drilling programme at the Company's Molaoi zinc deposit in Greece, continues to encounter strong zinc continuity. Two lodes have been intersected reaffirming that multiple lodes are continuous at Molaoi. An upper lode of 2.37m @ 6.0% Zn occurs from 107m, as well as 0.8% Pb and 31.3g/t Ag and a lower lode of 2.3m @ 5.3% Zn occurs from 110m, as well as 1.3% Pb and 13.6g/t Ag. Zinc/lead/silver mineralisation continues to be encountered in the projected positions as identified from the historical drilling by the Greek Government.

Roquefort Therapeutics* 6.75p £8.7m (ROQ.L)
The biotech company focused on developing first in class medicines in the high value and high growth oncology market announces the successful completion of in vitro studies for the Company's anti-cancer mRNA therapeutic in breast and liver cancer. The studies demonstrated a statistically significant reduction in both proliferation (cancer growth) and migration. The Roquefort Therapeutics team and collaborators at the University of New South Wales have accelerated development of the MDK mRNA Program and successfully demonstrated its cancer killing ability in validated in vitro models of breast and liver cancer. The mRNA cancer market is a highly attractive new field of medicine (~$31bn, 7.8% CAGR) and is led by Pfizer, Moderna and BioNTech. Roquefort Therapeutics is well positioned in this field, with four mRNA sequences that uniquely target Midkine. These results, while early, validate ROQ’s strategy that demonstrating a significant reduction in both proliferation and migration are an early proxy for metastasis. In parallel, the company’s intellectual property portfolio has been enhanced through updated patent filing.

Tertiary Minerals 0.12p £2.4m (TYM.L)
The mineral deposit exploration and development announces that it's 96% owned Zambian subsidiary, Tertiary Minerals (Zambia) Limited, has applied for, and had approved for grant, a new mineral exploration licence at Mupala in Zambia. The Mupala Project mineral exploration Licence application 32139-HQ-LEL is located 12 km west of the Company's Mukai Project and has been approved for grant by the Mining Licensing Committee of the Ministry of Mines and Minerals Development. The licence application is located adjacent to and immediately east of the Anglo American/Arc Minerals joint venture licence block where Anglo American has the right to earn a 70% interest through expenditure of $88.5m and is for an initial period of four years from the date of grant.

Trinity Exploration & Production 82p £31.5m (TRIN.L)
The independent E&P company focused on Trinidad and Tobago, announces that it has been advised by the Government of Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI) that Trinity's application for the Buenos Ayres block offered in the 2022 Onshore and Nearshore Competitive Bid Round has been successful. The MEEI has invited Trinity to enter into discussions for the grant of an Exploration and Production (Public Petroleum Rights) Licence for the Buenos Ayres Block. Trinity expects to be Operator of the Buenos Ayres block with an 85% interest. Heritage Petroleum Company Limited, the state-owned oil company, will have a 15% working interest (carried by Trinity through the exploration phase).

Vianet Group 85.5p £25.2m (VNET.L)
The international provider of actionable data and business insight through devices connected to its Internet of Things platform (IOT), announces its unaudited results for the year ended 31 March 2023 and a reinstated proposed final dividend of 0.5p per share. Revenue increased 6.7% to £14.11m (FY2022: £13.22m) and recurring revenues remained stable at 89% (FY2022: 88%) increasing by £1.19m to £12.56m. The Company reported a profit before tax of £0.45m after previously reporting a FY2022 loss of £0.17m. The Group is on track to deliver strong earnings growth across its two divisions and maximise the opportunities in new verticals for the financial year ending March 2024 and beyond.

Yourgene Health 0.25p £7.9m (YGEN.L)
An international molecular diagnostic group, announces the conditional divestment of its Taiwanese subsidiary, Yourgene Health Taiwan Co Ltd, to INEX Innovate Pte Ltd, a Singapore based molecular diagnostics company focused on women's and fetal health for proceeds of up to $4m USD (c.£3.2m). The Divestment is conditional upon INEX being granted Taiwanese Government approval. Terms of the Divestment include: US$1m payable on the closing date, and $1m payable as a lump sum or via ad hoc instalments within two years of the closing date (carrying interest at 7% above the Bank of England base rate), and up to US$2m potential earnout subject to the achievement of certain profit related milestones, over the next two calendar years post completion. The Loan Agreement is secured against the shares of the subsidiary being sold such that failure to pay will result in ownership returning to Yourgene with no obligation to return previously received funds.

13 June 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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