Small Cap Feast

14th December 2023

Dish of the day
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Off the menu
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 Small Cap Team will take a break until Monday 8 January 2024 after this Friday 15th December. Merry Christmas to all our readers.

Dish Of The Day:

Investment Evolution Credit (AQSE: ICE): An U.K. registered fintech group that specialise in online consumer loans, announces its Admission to the AQSE Growth Market.

OnTheMarket (OTMP.L) has left AIM.

Whats baking in the oven?

Potential Initial Public Offerings:

11 December: Kondor AI ITF: A U.K. registered AI company planning to launch the Kondor AI app, which will analyse pictures and live photos and provide solutions to questions and challenges based on visual input, is seeking Admission to the AQSE Growth Market. Expected AQSE Admission is on or around 21 December 2023.

30 November: Flex Labs ITF: a software business engaged in the development of advanced artificial intelligence (AI) middleware products, intending to offer these to business customers through a software as a service (SaaS) model announces its application for Admission to the AQSE Growth Market. Expected AQSE Admission date is on or around 15 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: MicroSalt: the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-December.

Reverse Takeovers:

06 December: Good Life Plus RTO: Formally Semper Fortis Esports Plc, announces its Admission to Access Segment of the Aquis Stock Exchange which constitutes a reverse take-over. Good Life Plus operates an entertainment focused monthly subscription service for consumers that provides access to daily luxury prize draws, along with numerous offers, discounts and rewards. Aquis Admission is expected 18 December.

30 November: EnergyPathways RTO: Formally Dial Square Investments Plc, listed on the Standard Listing of the Main Market, announces its Admission to AIM pursuant to the Acquisition of EnergyPathways Limited which constitutes a reverse take-over. EnergyPathways is an integrated energy transition company, initially targeting development of UK gas assets, with the aim of bringing these into production. AIM Admission is expected mid-December.

Change of Market:
05 December: AdvancedAdvT Limited (ADVT.L):
Intends to delist from its Standard Listing of the Main Market and apply for the Admission of its shares to trading on AIM on 10 January 2024.

Banquet Buffet

Celadon Pharmaceuticals 120p £64.6m (CEL.L)
The pharmaceutical company focused on the development, production and sale of cannabis-based medicines, announces the first supply of its pharmaceutical-grade product to the two commercial contracts announced on 24 May and 5 September 2023 respectively. Periodic invoicing has now commenced for both contracts, announced in May and September 2023, the first of which is worth a minimum of £3m of revenue, with up to £1.2m of revenue anticipated for the second contract. Since the announcement, the Company signed a further commercial contract with a European medicinal cannabis company and has the potential to generate revenue of up to £26m over three years, with the first delivery anticipated in H2 2024.

C4X Discovery Holdings 8.41p £21.2m (C4XD.L)
A Drug Discovery company, announces its full year audited results for the year ended 31 July 2023. Revenue of £1.7m (2022: £2.7m) and a total loss after tax of £11.1m (2022: £8.2m). The Company further announced net assets of £6.5m (2022: £11.8m) and holds net cash as at 31 July 2023: £4.2m (31 July 2022: £5.1m). C4XD announced that they signed an exclusive worldwide licensing agreement with AstraZeneca in November 2022, worth up to $402m, for its NRF2 Activator programme. Post-period, the Company received a payment of £15.95m from Indivior for the outright acquisition of Orexin-1 Receptor Antagonist Programme.

Driver Group 28p £14.6m (DRV.L)
The dispute avoidance and dispute resolution consultancy announces its preliminary results for the financial year ended 30 September 2023. Revenue decreased by 4% to £42.6m (2022: £45.1m) attributable to the restructured Middle East and Asia Pacific regions, however, gross profit margin was at 25% (2022: 21%), a £1.5m increase to £10.8m (2022: £9.3m). Underlying operating profit increase year on year of £1.4m to £1m (2022: Loss (£0.4m), and net cash increased year on year of £0.9m to £5.8m (2022: £4.9m). Utilisation improved to 72.5% (2022: 67.5%), and the Company announced post period Q1 revenue improving with an encouraging pipeline of new enquiries.

EnSilica 39p £30.5m (ENSI.L)
A chip maker of mixed signal ASICs (Application Specific Integrated Circuits), announces that it has conditionally raised approximately £1.56m by way of a placing at a price of 40 pence per new Ordinary Share. The Issue Price represents a discount of approximately 14 per cent to the closing mid-market price of an Ordinary Share on 13 December 2023. The net proceeds will be used to support the tender and execution of new and higher levels of activity, including: 1) seeking to secure two material ASIC design and supply contracts; 2) potential material contract for the "tape-out" and supply of a potentially high volume ASIC; and 3) progressing two consultancy contracts that may be worth, up to US$7.1m.

musicMagpie 13.75p £14.8m (MMAG.L)
A re-commerce business in the UK and US specialising in refurbished consumer technology, announces a pre-close trading update for the full year ended 30 November 2023. Full year revenue is expected to be £136.6m (2022: £143.3m), with a strong Black Friday period. Overall gross margin was 27.7% (2022: 26.2%), as a result, EBITDA is expected to be up 15.4% at £7.5m (2022: £6.5m). The number of active Rental subscribers grew by 21% in the year reaching 37,100 as at 30 November 2023 and net debt as at 30 November 2023 was £13.1m (31 May 2023: £13.6m). The Board is encouraged by musicMagpie's H2 performance and remains confident in its medium-term prospects.

Pantheon Resources 19.12p £175.7m (PANR.L)
The oil and gas company with a 100% working interest in the Kodiak and Ahpun projects, share the complete results of its multiyear leasing programme. Pantheon has been awarded 66,240 acres on the North Slope covering all of the anticipated remaining conventional reservoir potential in the Kodiak Field and the potential eastern extent of the Ahpun Field covered by the 23,040 acres that could be accessed from the West side of the Sag River using current technologies. Pantheon's winning bids averaged $31.83 per acre including fees. When the leases are officially awarded by the State of Alaska, estimated to be in 4 to 6 months' time and they will come with a 10-year initial term.

Sareum Holdings* 57.5p £40.4m (SAR.L)
A biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, publishes an update on operational activities and pipeline progress ahead of its Annual General Meeting (AGM) taking place today at 10.00 am at 85 Gresham Street, London EC2V 7NQ. The Company made good progress in 2023 with its lead programme, SDC-1801, with a Phase 1a clinical trial underway in Australia. Full safety data from the Phase 1a clinical trial are expected to be available during the first half of 2024 and, provided satisfactory results are obtained and subject to financing and regulatory and recruitment preparations. The Company plans to initiate a Phase 1b clinical study, aiming to recruit up to 24 psoriasis patients. This study is expected to be completed before the end of 2024. The Board remains optimistic about Sareum's pipeline of kinase inhibitors.

Star Energy Group 8.05p £10.3m (STAR.L)
The Company focusing on oil and gas extraction but now transitioning to develop and build a geothermal business announces a trading update. The Company remains on track to deliver its full year production target, expected to be c.2,090 boepd. Uptime across the portfolio has remained strong with good results from workovers at Singleton and a rolling programme of well optimisation and stimulation that has yielded additional production equal to c. 50 boepd over this year. The Company holds cash balances as at 30 November 2023 of £2.9m with net debt of £2.6m.

Sutton Harbour Group 14.5p £18.8m (SUH.L)
The marine and waterfront regeneration Company, announces its unaudited interim results for the six-month period to 30 September 2023. Gross profit £1.620m (6 months to 30 September 2022: gross profit £1.415m), however the Company announced a loss before taxation of £0.119m (6 months to 30 September 2022: profit before tax £0.223m). Gross assets marginally increased to £98.859m (31 March 2023: £96.049m) and net debt to £30.468m (31 March 2023: £29.259m). The Company has announced completion of their Harbour Arch Quay and sale of all 14 apartments completed by early November 2023 and has introduced a debt reduction plan to reduce interest burden in 2024.

Zanaga Iron Ore Company 7.74p £46.9m (ZIOC.L)
An iron ore exploration and development company, with the Company's flagship asset being its 100% owned Zanaga Iron Ore Project located in the Republic of Congo announces the appointment of Martin Knauth as Chief Executive Officer with immediate effect. Mr Knauth is a senior mining executive with extensive experience in the industry spanning more than 30 years in a wide range of cultures, countries and commodities.

14 December 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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