Small Cap Feast

18th August 2023

Dish of the day
No Joiners today
Off the menu
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Dish Of The Day:

Tan Delta Systems plc (TAND.L) has joined AIM. The Company has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footprint. The market capitalisation will be approx £19m after raising circa £6m at IPO at 26p. YE December 2022, the Company reported revenues of £1.575m with a net profit of £282k.

Kingspan Group Plc (KGP.L) has left the Premium Segment of the London Stock Exchange.

The Hybridan Team will take a well earned break today for a few weeks.
Back on 4 September. Enjoy the Summer!

What’s Cooking In The IPO Kitchen?

Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market.

Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Breakfast Buffet

Agriterra 1.35p £1.0m (AGTA.L)
The African agricultural company announces that it has concluded a trade finance package with Magister Investments Limited (Magister), the Company's 50.58% shareholder, which will: 1) reduce the finance costs associated with maize purchasing in Mozambique by the Company's wholly owned subsidiary, Desenvolvemento E Comercializacao Agricola, Limitada (DECA); 2) facilitate the purchase by DECA of various capital equipment which will be employed by its operations in Mozambique to drive growth and 3) enable the Group to replace the external finance provided by First Capital Bank, S.A. announced on 14 June 2023. Agriterra has today secured new debt funding from Magister, in an aggregate amount of US$2.9m together with an extension to the US$1.8m convertible loan facility provided by Magister as announced on 29 July 2022. The Group thank Magistra for their continued support in providing the new financing facility.

Alien Metals 0.19p £10.1m (UFO.L)
A minerals exploration and development company announces that following the successful raising and placing of £2m, it has issued notice to the Lender (Bennelong Limited) of its short-term funding facility that it will not be drawing on the Tranche 2 (US$500k) of the Convertible Securities. Accordingly, the Lender holds in total US$500k of Convertible Securities in respect of Tranche 1. The Company successfully raised £2m through a placing announced last week to help advance the Hancock Project and Pinderi Hills.

Beacon Energy 0.143p £15.0m (BCE.L)
The full-cycle oil and gas company with a portfolio of production, development, appraisal and exploration onshore German assets through its wholly-owned subsidiary, Rhein Petroleum GmbH, announces an update on the Schwarzbach-2(2.) (SCHB-2(2.)) well. The SCHB-2(2.) well has encountered good quality oil-bearing reservoirs in the Meletta-Schichten (Meletta) sandstones and the Pechelbronner-Schichten (PBS) sandstones. Initial evaluation PBS indicates a 34-metre gross interval containing 28 metres of oil-bearing net reservoir, with porosities averaging 18% and up to 28%, all of which exceed pre-drill estimates. The operating team will now undertake reservoir clean-up, production testing and install the production liner to bring the SCHB-2(2.) well into production, expected over the next month.

Everyman Media Group 60p £54.7m (EMAN.L)
A independent cinema group in the UK provides the following trading update for the 26 weeks ending 29 June 2023. Group revenue came in at £38.3m (2022: £40.7m) against a strong H1 2022 comparator; the majority being generated in H2 2023 owing to key 2023 releases. Group EBITDA of £5.8m (2022: £7.5m), and three new venues opened at the end of H1, take the Group estate to a total of 41 venues. Barbie and Oppenheimer released in the final week of July, delivered sole revenues of £10.6m and EBITDA of 2.6m. Trading continues to be in line with expectations and the Board remains confident for the full year that it will be in line with market expectations.

Loungers 187.5p £194.4m (LGRS.L)
The operator of all-day café/bar/restaurants across the UK under the Lounge, Cosy Club and Brightside brands, has announced the appointment of Lucy Knowles as Managing Director of its Cosy Club brand. Lucy was previously Managing Director of London-based bar chain, Corney & Barrow, later joining SSP as Group Marketing Director. Lucy led brand and menu innovation for over 150 brands and she will join Loungers in September.

Marula Mining 15,5p £20.18m (AQSE: MARU)
An African focused mining and development company provides an update on the Kinusi Copper Mine (Project). The Phase 1 Program of exploration activities completed by the Company’s geological consultants, Geofields Tanzania Limited (Geofields) in Q2 2023 announce preliminary findings of a copper mineralised corridor at Kinusi extending for over 1km length and over 300m in width at the main Sasimo Prospect and suggest visible copper grades of up to 30%. Geofields have estimated an initial Exploration Target of 10-15m tonnes (Mt) deposit of high-grade copper, gold, and other base metals, with the potential to increase in excess of 50Mt on completion of definitive resource drilling programs. The Phase II program will be undertaken to increase the geological confidence and knowledge at Kinusi.

Plant Health Care 10.1p £34.4m (PHC.L)
A provider of novel patent-protected biological products to global agriculture markets announces that its biochemical fungicide, PHC279, for the control of sugar cane and coffee disease has received federal approval in Brazil. PHC279 is the active ingredient in the Company's product Saori, which is successfully being used in Brazil as a seed treatment for the control of soybean diseases. Derived from natural proteins, PREtec is an environmentally friendly technology which stimulates crop growth, enhances the ability to withstand a variety of abiotic stresses, improves disease control, plant health and yield. The Company is on track to achieve revenue of $30m by 2025 through the launch of new products and organic business growth.

Smarttech247 32.5p £40.3m (S247.L)
A provider of AI-enhanced cybersecurity services providing automated managed detection and response for a portfolio of international clients announces that it has received approval for its VisionX platform to be listed on the Amazon Web Services (AWS) Marketplace. VisionX is Smarttech247's managed detection and response platform which provides around-the-clock security, rapid incident response, and monitoring capabilities using AI in tandem with human led monitoring. The Company mention that listing on the AWS Marketplace enables exposure to a large customer base, streamlined purchasing processes, and scalability.

Southern Energy Corporation 22.5p £30.8m (SOUC.L)
An established producer with natural gas and light oil assets in Mississippi announces its second quarter financial and operating results for the three and six months ended June 30, 2023. The Company generated $0.2m of adjusted funds flow from operations in Q2 2023, excluding $0.5m of one-time transaction costs and general and administrative costs, a net loss of $3.8m in Q2 2023 (Q2 2022: net earnings of $2.8m) and petroleum and natural gas sales of $3.7m in Q2 2023. The Q2 2023 average production was 15,907 Mcfe/d (2,651 boe/d) (96% natural gas); an increase of 12% from Q2 2022. The Company remains committed to reaching its goal of 25,000 boe/d.

Upland Resources 2.4p £26.4m (UPL.L)
The oil and gas company actively building a portfolio of attractive upstream assets announces that, through its collaborative discussions with the Petroleum Authority of Brunei Darussalam, the Company has recently been advised that gas was discovered in two previously unknown reservoirs in the neighbouring block in Brunei, which is located close to, and has a similar geological context to prospective areas in Block SK334. High pressure, material gas discovery where gas flared at surface level with further additional formations are yet to be tested. This is a significant derisking of future exploration and significantly enhances prospectivity in Block SK334.

18 August 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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