Small Cap Feast

18th September 2023

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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. Admission delayed.

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


Advanced Medical Solutions 182.5p  £396.4m (AMS.L)

The specialist in tissue-healing technologies announces that it has signed an agreement to commercialise LiquiBandFix8® in the US with TELA Bio, Inc. (NASDAQ: TELA), a specialist medical technology designer and developer of innovative soft-tissue reconstruction solutions that optimise clinical outcomes. This represents a significant commercial opportunity for AMS and TELA Bio as they enter a new addressable market estimated at $200m. To service its growing product portfolio, TELA Bio has projected that its salesforce is expected to reach 75-80 representatives by the end of 2023.

Alba Mineral Resources 0.09p  £7.0m (ALBA.L)

The mineral exploration and development company with mining assets in the UK and Greenland and oil investments in the UK provides an update regarding the dewatering and associated safety and access works at its primary target within the Clogau-St David's Gold Mine in north Wales (Clogau or the Mine), the Lower Llechfraith workings. The Company has commenced emergency abstraction to protect safety and access works completed on Levels 2 and 3 prior to workings reflooding. Final bat exclusion and noise mitigation measure required to be put in place prior to the Company commencing exploration activities at Level 4, post dewatering, namely installation of cabin structure on Llechfraith Adit level, has been completed. Due to ongoing delays in CAA approval, Company now advised that proposed airborne geophysical survey over some of Company's key regional gold targets are likely to be pushed back to October 2023.

Arrow Exploration   20p  £50.1m (AXL.L)

The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provide an update on the Carrizales Norte-3 (CN-3) well on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50% beneficial interest. The Company has completed the previously announced testing of the Carbonera C7 formation in the CN-3 well and the well has been put into production. The well penetrated a 23 foot pay zone in a high quality upper C7 sand, with an estimated porosity of 25%. An electric submersible pump (ESP) has been inserted and the well was initially producing at an average rate of 1,149 BOPD gross (575 BOPD net) of light crude oil of 33° API with a water cut of less than 0.5% over a 22 hour period. To efficiently manage the reservoir, and prevent premature water breakthrough, the ESP has been shut off and the well is naturally flowing. A 23/128 choke is being used to ease production back to a target of 640 BOPD gross (320 BOPD net). The Company maintains the optionality to increase production once the well has stabilized.

Bango 172.5p  £132.4m (BGO.L)

The global platform for data-driven commerce, announces its interim results for the six months ended 30 June 2023. Revenue was up 88% to $20.3M (1H22: $10.8M), in line with management expectations. Strong Digital Vending MachineTM (DVM) traction in the US. New deal in 1H means Bango has secured 3 out of 5 key US telcos, opening up subscription bundling to >200M US customers. The DOCOMO Digital (DDL) integration cost synergies are 90% complete. Gross profit margin remains high at 90% in 1H23 (2H22: 90%). As full synergies from the acquisition are realised, Bango will see Adjusted EBITDA margins increase and is on track to deliver a substantial increase in Adjusted EBITDA for FY24.

B.P. Marsh & Partners  369p  £137.4m (BPM.L)

The specialist venture capital investor in early stage financial services businesses, provides a trading update for the six month period ended 31 July 2023. Group cash and treasury funds were £4.3m at 31 July 2023 (31 January 2023: £12.1m). New dividend and buy-back policy (subject to receipt of proceeds from sale of Kentro) will see c.25% of proceeds of Kentro sale to be returned to shareholders. As announced on 23 May 2023, B.P. Marsh has agreed to dispose of its shareholding in Kentro, the London-based insurance industry investment group, pursuant to an agreement by which Brown & Brown, Inc. (Brown & Brown), one of the largest US-based insurance intermediaries, has agreed to acquire the entire issued share capital of Kentro. Upon completion, the Group expects to receive £51.5m in cash (net of all transaction costs). This is consistent with the Group's most recent £51.5m valuation of the business as at 31 January 2023.

Corcel 0.485p  £7.1m (CRCL.L)

The pan Angolan/Brazilian oil and gas company, with interests across oil and gas and battery metals, announces the completion of an unsecured convertible loan note facility that would potentially extend a total of £10m to be drawn down over a three year period: £1m in October 2023, £1m in January 2024, with a further £8m to potentially be made available over a three-year term. The lender Extraction Srl is a natural resource investment group, of which the Company's chairman is a major shareholder. Loan proceeds are convertible into new ordinary shares at a fixed price of £0.008, a 79.8% premium from the most recent closing price on 15 September 2023, and bear 12% interest per annum. Facility provides both short and longer-term funding for ongoing operations in Angola and business development in Brazil and elsewhere. 

Deltex Medical Group 0.18p  £3.3m (DEMG.L)

The UK-based medical device company announces its unaudited interim results for the six months ended 30 June 2023. Revenue was £1.1m (H1 2022: £1.2m). Operating loss was £0.5m (H1 2022: £0.6m). Cash at hand on 30 June 2023 was £0.1m (H1 2022: £0.6m). Fundraise completed in August 2023 raised £1.89m and £350,000 debt converted to equity to strengthen the Company's balance sheet. New TrueVue monitor CE marked and released in the UK and EU and revenues expected in November 2023. The new TrueVue monitor will be used as the platform for the new non-invasive ultrasound device and clinical evaluations are planned to start before the end of 2023.

Facilities by ADF  53p  £42.9m (ADF.L)

The provider of premium serviced production facilities to the UK film and high-end television industry (HETV) announces its unaudited interim results for the six months ended 30 June 2023. Revenue increased by 73% year-on-year to £21.8m (1H22: £12.6m), driven by demand from Netflix, Apple, Disney and Amazon. Adjusted EBITDA was up 117% to £5.8m (1H22: £2.6m). As announced on 3 August 2023, the Group remains strongly positioned in its markets with high quality UK productions to sustain the business although the current USA Writers (Writers Guild of America (WAG)) and Actors (Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTR)) strikes have been impacting productions around the globe. The Company is in a robust position to capitalise on the opportunity ahead once previous production levels resume.

Filtronic 16.15p £34.7m (FTC.L)

The designer and manufacturer of products for the aerospace, defence, telecoms infrastructure, space and critical communications markets, announces that it has been selected by the Defence and Security Accelerator (DASA), part of the UK Ministry of Defence (MoD), for the prestigious Defence Technology Exploitation Programme (DTEP), supported by Innovate UK. The scheme, sponsored by the MOD's Directorate of Industrial Strategy and Exports (DISE), aims to foster innovation and enhance defence supply chains by supporting small and medium-sized enterprises in developing state-of-the-art materials, technologies and processes. The total grant funding to be received by Filtronic is £170,000 in addition to a further £76,000 worth of support from a lead customer to help embed the technology and capability into the business.

Orcadian Energy  6p  £4.4m (ORCA.L)

The UK-based oil and gas development company has entered into a non-binding Heads of Agreement (HoA) with a North Sea operator, which details a potential farm-out of the Pilot development project in the Central North Sea. If the deal completes as documented in the HoA, the Operator will acquire an 81.25% interest in Licence P2244. Orcadian will retain an 18.75% carried interest in the Pilot development with the Operator paying 100% of the pre-first oil scope of work.  After first oil, Orcadian will pay its working interest share of expenditure. On completion of the transaction, extension of the P2244 licence, and a licence award over former P2320, Orcadian would receive a cash consideration of up to US$200,000 from the Operator, with a further US$3,000,000 being received on Pilot FDP Approval.

18 September 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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