Small Cap Feast

15th December 2023

Dish of the day
No Joiners today
Off the menu
No leavers today
 The Small Cap Team will take a break until Monday 8 January 2024 after today. Merry Christmas to all our readers..

Dish Of The Day:

Flex Labs (AQSE: FLEX), a software business engaged in the development of advanced artificial intelligence (AI), joins the Access segment of the AQSE Growth Market.

No leavers.

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.

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

88 Energy 0.25p £65.5m (88E.L)
The oil and gas exploration and production company with a North American focus announces that it has expanded its footprint in Texas Permian Basin with acquisition of further non-operated working interest in leases and wells. The Company announces it has acquired ~64.4% net working interest (WI) in 1,262 net acres, located ½ mile south and ¼ mile north of existing Project Longhorn assets (Longhorn) connecting the acreage position. The price of the total working interest is US$0.35M (net to 88 Energy: US$0.26M) paid in cash by the Joint Venture, Bighorn Energy LLC (Bighorn) which comprises of Longhorn Energy Investments LLC (LEI) a 100% wholly owned subsidiary of 88 Energy (75% ownership) and Lonestar (25% ownership). 88 Energy expects Longhorn total gross production to reach approximately 600 - 675 BOE per day (~75% oil) by year end 2024.

Arkle Resources 0.35p £1.6m (ARK.L)
The Irish gold and zinc resources discovery company, announces that it has been awarded two exploration licences in the Makgadikgadi Salt Pans in North Eastern Botswana. The licences, PL 075/2023 and PL 0148/2023, cover 312 and 525 sq kilometres respectively in size. The licences are awarded to prospect for lithium in the Salt Pans. Early-stage prospecting work will begin in early 2024.

Atlantic Lithium 23.58p £144.3m (ALL.L)
The African-focused lithium exploration and development company targeting to deliver Ghana's first lithium mine, announces it has successfully completed a placing and raised A$8.0m at a price of A$0.44 (23.35 pence) per new share, a 10.2% discount to the last closing price of A$0.490. Proceeds will enable the completion of the activities agreed under the grant of the Mining Lease for the Project, key items of early works and permitting-related expenditure, for further extensional drilling to support the delivery of an upgraded Mineral Resource Estimate in Q3 2024, and for working capital purposes.

Barkby Group 6.35p £9.1m (BARK.L)
The roadside real estate business, announces that its joint venture (JV) with Meadow Partners LLP to acquire and develop a portfolio of UK-based Roadside Real Estate assets, has completed its first acquisition, (Acquisition). The JV has acquired an asset in Stoke for a total cost of £5.28m. Meadow acquired the asset in September 2023 and is selling it to the JV at cost. The Acquisition will be funded in line with the principal terms of the JV's equity commitments, whereby Meadow will own and fund 97% of the JV while Barkby will own and fund 3%. Therefore, Barkby has made an initial equity contribution of £167.6k to the JV to fund the Acquisition.

Chamberlin 2.8p £3.9m (CMH.L)
The specialist castings and engineering group, announces an update in relation to Russell Ductile Castings, the Group's Scunthorpe based foundry (RDC). November 2023 saw RDC receive its highest level of monthly order intake on record, exceeding £1.85m - primarily due to new order awards in the renewables sector. RDC's new leadership team has introduced a higher level of focus on the commercial development of the business and as a result has secured 5 new key customers for the business - with a current order book of around £4.0m.

Getech Group 5.1p £3.4m (GTC.L)
The locator of subsurface resources, provides a trading update for the financial year ending on 31 December 2023. A number of projects expected to commence this financial year are now expected to occur in 2024, as a result annual sales are expected to be in the order of £4.0m to £4.4m. Revenue levels are expected to be below market expectations for 2023. The Group's orderbook currently stands at £3.7m (30 June 2023 £4.4m). Of this, approximately half is expected to convert into revenues recognised in 2024. The Company is focused on managing working capital to maintain a positive cash position

Kibo Energy* 0.04p £1.5m (KIBO.L)
The renewable energy-focused development company, announces that its subsidiary Mast Energy Developments PLC (MED), a UK-based multi-asset owner, developer and operator in the rapidly growly flexible power market, has received a director loan amounting to £81k from Paulus Fillippus Venter, a non-executive director and significant shareholder of MED. The proceeds will be used for MED's working capital requirements and is a result of Mr. Venter selling 14,000,000 MED shares (Loan Shares) of his total beneficial holdings of 17,708,538 MED shares.

Naked Wines 45.53p £33.7m (WINE.L)
The online wine retailer announces its half year results for the 26 weeks ended 2 October 2023. Total revenue was £132.3m, down 20% at reported currency rates and down 18 % at constant currency), adjusted EBIT was £2.2m and loss before tax was £9.7m. Post period, the Company held net cash of £7.1m and total available liquidity of £53m as of the end of November, an improvement from the end of H1. Inventory optimisation expected to deliver £40m-50m cash inflow over next 18 months. Customer order patterns are currently in line with the Company’s forecasts.

Sosandar 15p £37.2m (SOS.L)
The company focusing on fashion brands in the UK creating quality, trend-led products for women of all ages, announces the appointment of Nick Mustoe as Non-Executive Chairman. Nick has been Interim Non-Executive Chairman since 16 March 2023. In addition, Jon Wragg, Independent Non-Executive Director, has notified the Board of his intention to step down from the Board in order to focus on other commitments, and, with the Company's agreement, has done so with immediate effect.

XLMedia 6.25p £16.2m (XLM.L)
The digital media company, provides a pre-close trading update for the year ended 31 December 2023. On 28 September 2023 the Company noted on its interim results that it had seen a reduced level of customer acquisition marketing activity, particularly, the withdrawal of the Barstool brand from the market and the subsequent launch of ESPNbet has resulted in a significant change in the revenue profile of the Group's North American activities. The Group's revenues for the full year are now expected to be in the range of $50m to $52m while adjusted EBITDA is expected to be in the range of $12m to $14m. The Group expects to see continued progress from its European brands in 2024.

15 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


Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.


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 with “unsubscribe me”.

© Copyright 2024 - Hybridan | Website by Boxed Up Media
First Visit
bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram