Small Cap Feast

14th June 2023

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ABRDN Latin American Income Fund Ltd (ALAI.L) has left the Main Market of the London Stock Exchange. 

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

Aptamer Group 22.5p £15.5m (APTA.L)
The developer of Optimer® binders to enable innovation in the life sciences industry, and Neuro-Bio, with a therapeutic focus on neurodegenerative disease, announces success in the development of Optimer binders to enable a lateral flow test for the early diagnosis of Alzheimer's disease. The Optimer binders have been patented by partners at Neuro-Bio, following the demonstration of performance in specifically binding to the target biomarker and functionality in a nasal mucous matrix. It has the potential to diagnose the disease as early as 10-20 years before symptoms emerge.

Challenger Energy Group 0.105p £10.2m (CEG.L)
The Caribbean and Americas focused oil and gas company, with a range of oil production, development, appraisal, and exploration assets, advises that CEG Goudron Trinidad Limited (CGTL), a wholly owned Trinidadian subsidiary, has been notified by the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI) that the Government of Trinidad and Tobago has authorised MEEI to enter into negotiations with CGTL for the grant of an Exploration and Production (Public Petroleum Rights) Licence for the Guayaguayare block, following a successful bid for that Licence by CGTL. The Company considers the Guayaguayare block to be highly prospective, being amongst the largest remaining underexplored / undrained contiguous onshore areas in Trinidad. The block contains approximately 65 historic wells, mostly inactive, which the Company believes can be reactivated and serviced from existing operations, offering the opportunity for near-term production uplift at minimal incremental cost.

DX Group 31.25p £189.0m (DX..L)
A provider of delivery solutions announces the proposed development of a major new Regional Hub in the East Midlands. The proposed new hub, which includes a new depot serving the local area, is expected to cost c.£12m, including site acquisition, and will be funded from DX's existing cash resources. It will have a 25,000 sq ft footprint and will be developed to service the Group's parcel freight activities. The new hub and depot will provide additional regional capacity and improve efficiency by reducing stem mileage. The Company have a cash position of EUR20.9m, and are accelerating multiple workstreams to focus on completing a bankable feasibility study at their integrated LiOH project in Germany, early in 2024.

DXS International* 3.25p £2.08m (AQSE:DXSP)
DXS’ ExpertCare medicines optimisation tool has been awarded a £20k Invention for Innovation (i4i) FAST (Funding At the Speed of Translation) grant from the National Institute for Health and Care Research. The project study will encompass the review of 480 diagnosed hypertensive patients across several participating GP practices to answer the core question of ‘Does the use of ExpertCare in hypertension medication reviews lead to an increase in the proportion of hypertensive patients whose medication treatment is compliant with NICE guidelines?’. The project research plan and outcomes are intended to verify the impact ExpertCare achieved at the DXS pilot sites in 2021 and 2022 and could prove pivotal in advancing the management of hypertensive patients. Commenced on the 1st of May, the project is on target for completion by the 31st of August 2023. DXS are collaborating with the Eastern Academic Health Science Network who will validate the trial data and publish the results.

Eckoh 40p £116.3m (ECK.L)
The global provider of Customer Engagement Data Security Solutions, announces the audited results for the year ended 31 March 2023 (FY23). Revenue increased by 22% to £38.3m (FY22: £31.8m) driven by organic growth and the full year impact from the acquisition of Syntec in December 2021. Adjusted operating profit was up 48% to £7.7m. Net cash was £5.7m (FY22: £2.8m). Trading in the first two months of the current financial year has been positive, with order value exceeding £7m.

IXICO 19p £9.2m (IXI.L)
The medical imaging advanced analytics company delivering intelligent insights in neuroscience, announces that an existing client has contracted IXICO to provide imaging services for the extension study of their Huntington's disease (HD) Ph2b trial. This is a new study protocol and results in a new work order worth just under £2m which IXICO expects to deliver over the next 4 years.

Marks Electrical Group 93.5p £98.1m (MRK.L)
The fast-growing online electrical retailer announces its unaudited results for the year ended 31 March 2023 (FY23). Revenue was £97.8m up 21.5% (FY22 £80.5m), driven by increased market share. Statutory profit before tax was £6.4m, up 68% (FY22 £3.8m). The first two months of FY24 saw a strong trading momentum, with revenue growth exceeding 30% year-on-year. The disciplined approach to margin management, capital allocation and cash conversion demonstrated in FY23 provides a solid foundation in the year ahead.

TOMCO Energy 0.0852p £2.0m (TOM.L)
The US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces that the Company has raised, in aggregate, gross proceeds of £500k, by way of a £400k placing and a £100k subscription, at a price of 0.08p per share. The Fundraise price represents a discount of approximately 18.8% to the closing price on 13 June 2023. The Fundraise will materially replace the cancellation of a convertible loan note facility and provide additional funds to cover the Company's anticipated expenditure as it progresses its plans for Greenfield in relation to the Tar Sands Holdings II LLC site located in the Uinta Basin, Utah, United States.

ValiRx 9.25p £9.5m (VAL.L)
A life science company focusing on early-stage cancer therapeutics and women's health, announces it has acquired the scientific assets of Imagen Therapeutics Limited (Imagen). Imagen was a pharma services company offering a patient-derived screening platform suitable for large global clients. Total consideration paid was a single cash payment of £170k and was completed using the Company’s existing resources. The equipment, acquired at a significant discount of market prices, will support both the new cancer drug screening services and Inaphaea BioLabs Limited’s wider business interests.

Zinnwald Lithium 11.13p £52.7m (ZNWD.L)
The European focused lithium company developing the Zinnwald Lithium Project in Germany, provides an operational and corporate update on its activities. The Company completed a fundraise at the end of March 2023 of £18.75m supported by existing shareholders. The funds have allowed the Company to accelerate its work across multiple areas, particularly its extensive infill drilling campaign at the Zinnwald Lithium Project. The Company completed in total of 16.9km and drilled over 56 drill holes at the Zinnwald license with drill results supporting the Company's understanding of the ore body.

14 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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