Small Cap Feast

18th March 2022

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What’s Cooking In The IPO Kitchen?

Probiotix Health plc intends to join the Aquis Stock Exchange Growth Market. ProBiotix develops probiotics (live microbes that, when ingested, can alter the composition of the microbiome, and improve human health) to tackle cardiovascular disease and other lifestyle conditions which are affecting growing numbers of people across the world. Mkt Cap and Capital to be raised TBC. Expected 31 March 2022.

Aquis Exchange (AQX.L) the exchange services group, announced its intention to apply for admission of the Group to trading on the Apex Segment of the Aquis Stock Exchange Growth Market. Aquis’ shares will continue to trade on the AIM market of the London Stock Exchange plc to satisfy certain regulatory requirements. The Group is targeting admission to the AQSE Growth Market on 29 March 2022.

Anglesey Mining, a UK mining company currently listed on the Main Market (Premium) intends to move to AIM. Anglesey’s principal asset is a 100% interest in the Parys Mountain copper-zinc-lead-gold-silver project on the island of Anglesey in North Wales. Anglesey is currently exploring and developing the property, which has a high potential for the discovery of additional mineral resources through the development of a new, modern mine in an environmentally sustainable manner. Anticipated Mkt Cap TBC, current capitalisation c£8m. Expected 8 April 2022.

Summerway Capital plc, (AIM:SWC) to be renamed Celadon Pharmaceuticals plc following completion of the acquisition of Vertigrow Technology Ltd, is to relist on AIM. Vertigrow is a UK based pharmaceutical Company specialising in the researching, growing and supply of medicinal cannabis, for a total consideration of £80m. Summerway is an investing company focused on investment and acquisition opportunities across the healthcare and pharmaceutical sectors, particularly within new and emerging therapeutic areas. Capital to be raised on admission £8.5m. Anticipated Mkt Cap approximately £101.8m. Due 28 March 2022.

Cordiant Global Agricultural Income plc intends to float on the Main Market (Premium). The Company’s investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector. The Company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions. The Company will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit. Mkt Cap and Capital to be raised TBC.

Shellraise plc, to join AQSE Growth Market. The Company will focus on identifying investment opportunities in companies operating in the viticulture sector which require funding to increase output. Mkt Cap and Capital to be raised TBC. Expected 1st April 2022.

Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late March.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Mkt Cap and Capital to be raised TBC. Due early April 2022.


Breakfast Buffet

Asiamet Resources 2.2p £42.6m (ARS.L)

Appointment of Mr Darryn McClelland as Chief Executive Officer. Mr McClelland brings over 25 years of mining development, operations and senior management experience across Australia, Indonesia, Laos, Vietnam, Eritrea and Ghana. Of particular relevance to Asiamet’s business is his extensive experience in mine start-ups and commissioning, copper and polymetallic open pit mining operations including copper leaching, and over seven year’s direct operating experience in Indonesia. Mr McClelland is currently the Chief Operating Officer for PT Agincourt Resources leading the operational and exploration functions of the +300,000 ounce per annum Martabe Gold Mine (Martabe) in North Sumatera, Indonesia. The Martabe mine employs over 3,000 staff and contractors and operates to high international safety and ESG standards.

Agronomics 18p £170.5m (ANIC.L)

The investment company focused on cellular agriculture, Agronomics has joined the Alternative Proteins Association as a founding member following its launch on the 15th of March at the Houses of Parliament. The APA is a trade association and non-profit organisation that exists to fuel collaboration across the value chain. It will be a place for entrepreneurs, policymakers, researchers, thought-leaders and investors to navigate the UK regulatory process and advocate for public policy to support the development of the rapidly evolving UK alternative protein industry.

Elixirr International 720p £332.5m (ELIX.L)

The established, global award-winning challenger consultancy, announced the acquisition of the entire issued share capital of technology and data firm, iOLAP Incorporated, for a maximum total consideration payable of US$40m (£30.4m). The Board is update its guidance for the financial year ending 31 December 2022 to reflect its current expectation including c.9 months’ impact of the Acquisition. The Board’s current expectation is that full year FY22 revenue will be in the range of £70m – £75m with an Adjusted EBITDA margin in the range of 27-28%. The business being acquired recorded revenue in 2021 of US$22.3m (£16.9m), normalised adjusted EBITDA of US$4.2m (£3.2m) and normalised profit before tax of US$3.8m (£2.9m). The initial consideration represents a multiple of 6x 2021 EBITDA. The Acquisition brings specialist data and analytics capabilities, including artificial intelligence and machine learning, into Elixirr where there is existing demand for these services. This will enable Elixirr to form even stronger and longer-term relationships with its existing clients as they work together on their toughest business challenges. iOLAP generated 94% of its 2021 revenue from US clients with a similar profile expected this year, resulting in a significant expansion of Elixirr’s US footprint, and delivers work with teams in the US and Europe. The data consulting market is forecast to grow by 32% a year on average to US$4.2bn by 20261, meaning this Acquisition positions Elixirr to maximise its share of that opportunity.

Harland & Wolff 17p £15.9m (HARL.L)

The UK-quoted company focused on strategic infrastructure projects and physical asset lifecycle management, announced the appointment of Malcolm Groat as Chairman of the Board of Directors. Mr. Groat had earlier assumed the role of Interim Chairman on 27th September 2021. Further, as announced in December, the Company intends to appoint another non-executive director, whose skills and experience are commensurate with the requirements of the Company. The Company is currently undertaking a formal process with external recruitment advisors/consultants and a further announcement will be made in due course. The Board, as is currently constituted, has four members comprising two executive directors and two non-executive directors which includes the Chairman. John Wood, Group CEO of Harland & Wolff, comments: “I am delighted that Malcolm has been appointed as Chairman. He has been a non-executive director of the Company since March 2019 and has been deeply involved in all activities undertaken by the Company since that time. Malcolm brings with him a wealth of experience and understands our business model in great depth. I look forward to working closely with Malcolm going forward.”

Kropz 8.5p £77.3m (KRPZ.L)

The emerging African phosphate producer and developer, announced first production of phosphate rock concentrate from its Elandsfontein operation in South Africa. Elandsfontein commenced plant commissioning in Q4 2021 and has achieved a concentrate grade of 31% P 2 O 5 , in line with management expectations. Concentrate samples will now be prepared for shipment to a number of potential buyers to confirm product specifications. Sales to smaller local customers in South Africa will commence in late March 2022. The focus at Elandsfontein now shifts to increasing ramp-up of operations to achieve nameplate capacity and enable the first commercial large scale shipment of Concentrate while optimising process recoveries. All the required reagents have been received on site for the commissioning and initial ramp-up activities. Full production capacity is expected by early Q4 2022. The phosphate rock market remains strong and has shown good interest in Elandsfontein’s low cadmium Concentrate.

Mobile Streams 0.31p £8m (MOS.L)

The mobile content and data intelligence company has exercised its option to acquire the remaining 51% interest in KrunchData Limited on the terms previously announced on 25 March 2021. The £765k consideration will consist of £265k cash and 166,666,666 in shares issued at 0.30p each, being the closing price yesterday, 17 March 2022. As noted at that time, the rationale for the 2021 Transaction was to acquire the full rights to the expertise, systems, software and IP provided under licence by Krunch; to terminate the revenue share agreement, under which 50% of Streams Data revenues were due to be paid to Krunch from January 2022 for as long as the JV Agreement remains in place; and to eliminate the risk of Krunch being able to terminate the agreement at 90 days’ notice. For the year to 31 December 2021, Krunch generated revenues of £397k and a net loss of £85k.

Orchard Funding 55.5p £11.3m (ORCH.L)

The finance company which specialises in insurance premium finance and the professions funding market, provides a trading update for the six months ended 31 January 2022. Trading performance in the Period has exceeded the Board’s expectations. Demand for funding has risen on average across most lending lines, with lending performance as follows: Lending +27% to £38.2m and average loan book up 21.2% to £33.5m. Towards the end of the previous financial year the Group refinanced its borrowings. Toyota Financial Services (UK) PLC provided the Group with a facility of £15m and Natwest Bank PLC with £5m, making a total of £20m to be used for general lending, of which £11.4m was in use at the end of the period. Since the end of the Period, the Group has issued a five-year bond, further bolstering liquidity. The Board therefore considers it has adequate liquidity for its projected lending in all its markets. As a result of this loan book momentum in Period, the Board expects revenue for the year to exceed its prior expectations, while Group costs have remained fairly stable and largely unchanged. resulting in an uplift in profitability for the year.

Serabi Gold 49.5p £38.25m (SRB.L)

Further positive development from the Palito project where brownfield diamond drilling has continued to define mineralisation at the Piaui prospect within a series of parallel mineralised structures located just 500 metres from the current underground mine infrastructure. Shallow drilling confirms the continuity of three major parallel mineralised structures and identifies further smaller parallel zones. Visible gold encountered in PDD0619 within a zone grading 2.6m @ 13.37g/t Au including 0.75m @ 33.74g/t Au from 28.55m. High grade intercepts include: 0.41m @ 16.89g/t Au from 26.40m, 1.94m @ 11.86g/t Au including 0.70m @ 19.15g/t Au from 35.30m (PDD0618) 0.65m @ 14.28g/t Au from 43.1m, 5.90m @ 4.11g/t Au including 1.00m @ 17.56g/t Au from 69.75m (PDD0617) 2.00m @ 3.69 including 1.00m @ 6.54g/t au from 12.0m (PDD0616) 1.60m @ 2.70g/t Au including 0.50m @ 6.30g/t Au from 113.55m (PDD0612)

Trakm8 Holdings 19.5p £9.75m (TRAK.L)

The global telematics and data insight provider announced that its contract with Ingenie Limited has been extended for a further three years. In addition, the contract has been broadened for Trakm8 to provide additional self-fit telematic devices. Ingenie is one of the leading Insurance technology providers using telematic derived data to improve driver risk with innovative driver coaching techniques. John Watkins, Executive Chairman, commented: “The contract with Ingenie has been in place for three years and it is pleasing to extend the scope and duration. We are pleased to continue our association with Ingenie as the market recovers from Covid.”

W Resources 3p £4.4m (WRES.L)

Following the maintenance shutdown announced on 15 February 2022, production at the La Parrilla mine in Spain has now recommenced. There was no production in February other than small quantities of work in progress that were reprocessed during early February. The initial maintenance shutdown was scheduled for two weeks, and in that period further improvements were identified, delaying the restart in addition to the Company evaluating options regarding the Liquefied Natural Gas supply, following the 425% price increase announced last month. During the extended maintenance shutdown a series of important improvements were carried out in order to streamline the efficiency and operation and overall recovery of the plant. These included: reinforcements to the primary and secondary crushing structures; updates to the safety control elements throughout the plant; installation of sump pumps across the plant; preparation for the installation of a new bench of spirals; levelling and compacting of areas for the construction of civil works for the installation of the new intermediate crushed ore stockpile as well as a new laboratory; and construction of additional infrastructure, building meeting rooms and updated staff changing facilities. Further to the funding announcement on 2 March 2022, the first tranche of BlackRock Financial Management Inc. funds has now been received and was in part deployed to secure deliveries of LNG to power the plant. The Company continues to monitor the LNG price and is looking to accelerate plans to have a second electricity power line connected to the mine as well as investigating access to solar energy which will reduce its reliance on LNG.

18 March 2022
*A corporate client of Hybridan LLP

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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).

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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.

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