Small Cap Feast

1st August 2023

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Cineworld Group (CINE.L) has left the Premium Segment of the Main Market.




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

Barkby Group 3.25p £4.7m (BARK.L)
The Company engaged in real estate development, consumer and hospitality businesses, and life sciences announces that it has completed the disposal of Workshop Trading Holdings Limited, trading under the Workshop Coffee brand by way of a management buyout (MBO). The disposal follows the strategic update provided in July 2022, in which the Company announced its intention to focus on real estate and dispose of non-core businesses. The sales process concluded that the MBO offered the best value for Barkby. The MBO transaction includes the transfer of £1.7m of third-party liabilities, the repayment of £0.2m of intercompany lending and £0.3m of deferred consideration payable in cash in June 2024. Barkby intends to utilise the proceeds of the disposal for general working capital purposes.

Digitalbox 6.5p £7.7m (DBOX.L)
The mobile-first digital media business, which owns Entertainment Daily, The Daily Mash, The Tab, and The Poke announces it has exchanged contracts to acquire the digital assets of 99 Problems, Student Problems and The Life Network Shopping from Media Chain Group Limited (part of Social Chain AG) for a total consideration of $800k. $79k is payable immediately on Exchange as a non-refundable deposit to trigger the license term through a single $1k fee, and a further $720k payable on completion, which is anticipated to be within two to five months from the date of Exchange, through a deferred payment of $520k in cash and $200k in Digitalbox ordinary shares. The Consideration will be funded from the Group’s existing cash resource, which at 28 July 2023 was approximately £2.4m. The Acquisition is subject to completion of satisfactory testing by Digitalbox, through a licence agreement which is in operation until the end of November 2023 and is expected to be immediately earnings enhancing on completion.


Engage XR Holdings 3.6p £18.9m (EXR.L)
The Metaverse/ Spatial Computing technology company provides an update on trading for the six months ended 30 June 2023. The Group continues to trade in line with market expectations. Group revenue is expected to be c.EUR 2.1m, an increase of 18% (H1 2022: EUR 1.8m) and gross margin in H1 2023 was 93%, an increase of 12% (H1 2022: 81%). Cash balance at 30 June 2023 of EUR 9.4m (30 June 2022: EUR 4.9m) as the Group's cash position strengthened following a EUR 10.5m fundraise in February 2023. The Group is gaining traction in the US market. 54% of revenue in H1 2023 has been derived from North America compared to 30% for FY22, following the deployment of the US sales team in mid-2022.


Hargreaves Services 439p £142.9m (HSP.L)
The diversified group delivering services to the industrial and property sectors, announces the appointment of Stephen Craigen as Group Finance Director Designate and as a Director of the Board of Hargreaves, effective 1 August 2023. Stephen has been with the Group for 10 years and has held the role of Group Financial Controller since 2017. John Samuel, the current Group Finance Director, will step down from his role and the Board following the announcement of the Group’s preliminary results for the year ended 31 May 2023, expected to be on 9 August 2023.


ProBiotix Health 8p £8.52m (AQSE:PBX)
The life sciences business developing probiotics to tackle lifestyle conditions such as cardiovascular disease, announces that it has signed an exclusive distribution agreement with Trans Chem to cover the Australian and New Zealand probiotics market. Trans Chem is one of Australia’s leading independent suppliers of innovative products and quality raw ingredients for the pharmaceutical, nutraceutical, food and beverage, veterinary and animal nutrition industries. The Directors believe that Trans Chem is a strong and creditable company, winning ‘Prestigious Quality Material Supplier of the Year’ awarded by the Complementary Medicines Australia (CMA) in 2016, 2019 and in 2021.


Oriole Resources 0.15p £4.3m (ORR.L)
The exploration company focussed on West Africa, announces a conditional subscription to raise £1.76m through the issue of 930m new ordinary shares at a price of 0.19 pence to institutional investor Lanstead Capital Investors L.P. The Issue Price of 0.19 pence represents a 21% premium to the closing mid-market price on 31 July 2023. Gross proceeds of the Lanstead Subscription will be pledged to Lanstead by the Company pursuant to a Sharing Agreement with Lanstead. The Sharing Agreement, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company's share price at the time relative to the Benchmark Price of 0.2533 pence per share. The monthly settlement amounts for the Sharing Agreement are structured to commence approximately 6 weeks following Admission. Immediately following completion of the Subscription, Lanstead will hold a 26.23% interest in the Company.


Symphony Environmental Technologies* 7.5p £13.9m (SYM.L)
The global specialists in technologies that make plastic and rubber products "smarter, safer and sustainable", announces a trading update for the six months ended 30 June 2023 (H1 2023). Group revenue increased to £3.6m (H1 2022: £3m) and Gross profit margins increased to over 42% (H1 2022: 36%). Distribution costs have sharply reduced to circa 3% of revenues (H1 2022: 7%). The Company report a positive turnaround in revenues and sharply improved operating margins for the Group compared to 2022. Whilst a loss will be reported for H1-2023, it will be significantly lower than for the same period last year. The Board expect Symphony will move back into profitability on the back of momentum started during H1 2023 together with the near-term commercialisation of several key projects. These expectations do not take into account Symphony’s joint venture in India.


Virgin Wines 34p £19.0m (VINO.L)
The direct-to-consumer online wine retailers, provides an update on trading for the year ended 30 June 2023. Performance during the Period was in line with expectations, with total revenue for the year of £59m, adjusted PBT of no less than £0.5m and net cash of £5.5m with no debt. 90,000 new customers were acquired during the Period at an average cost per recruit of £12. This was an improvement of 9.2% year-on-year (FY22: £13.22). Conversion and cancellation rates also trended positively throughout Q4, while customer deposits into WineBank achieved a seasonal high of £8m at the year-end. As previously announced, the Company continues to develop a number of new initiatives focused on accelerating its strategic development, which it expects to complete during H1 2024.


Wishbone Gold 2.43p £4.8m (WSBN.L)
The gold and precious metals exploration company with assets in Australia announces it has raised £1.42m gross at a price of 2.4 pence per share and will be issuing a total of 59,059,997 new ordinary shares. This represents a 19% discount to the closing mid-market price on 31 July 2023. The net proceeds will provide additional working capital for the Company but will primarily be used to fund the exploration programs on Red Setter and Cottesloe.


Zytronic 95p £9.7m (ZYT.L)
The North-East of England based innovator and specialist manufacturer of touch overlay sensors for interactive displays used in self-service, gaming, and industrial applications, announces it has appointed Dr. Christopher (Chris) Potts as Non-executive Chairman with immediate effect. Mark Butcher is relinquishing his temporary role as interim Non-executive Chair, but continuing to serve as an independent Non-executive Director. Chris brings over 20 years of senior executive and chair experience of international technology businesses. He is presently Chair of Guralp Systems Ltd. Chris's experience includes managing privately owned firms, private equity backed businesses and divisions of listed public companies.

1 August 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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