Small Cap Feast

1st December 2023

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

No joiners today.

No leavers today.

What’s Cooking In The IPO Kitchen?

1 December: Investment Evolution Credit ITF: An U.K. registered fintech group that specialise in online consumer loans, announces its application for Admission to the AQSE Growth Market. The Company currently provides online consumer loans in the U.S. under the brand Mr. Amazing Loans and plans to provide online consumer loans in the U.K. under the brand IEC Credit. Expected AQSE Admission is on 14 December 2023.

30 November: Flex Labs ITF: a software business engaged in the development of advanced artificial intelligence (AI) middleware products, intending to offer these to business customers through a software as a service (SaaS) model announces its application for Admission to the AQSE Growth Market. Expected AQSE Admission date is on or around the 15 December 2023.

23 November — Substrate Artificial Intelligence ITF: 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 announces its Admission to the Aquis Growth Market. Expected Admission date is on or around the 7 December 2023.

15 November: Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore Admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 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-November.

Breakfast Buffet

ADM Energy* 0.6p £2.4m (ADME.L)
The natural-resources investing company announces that the Board has concluded that opportunities available to it in energy technology, such as the OFX Technologies, LLC investment announced 29 November 2023, present a compelling path to growth in per share value and cash flow. As a result, the Board has resolved to consider alternatives for monetising its 12.3% cost share and 9.2% profit share interest in the Aje Field, OML-113 offshore Lagos, Nigeria. Alternatives to be considered by the Company for Aje include its sale, a joint-venture, farming-out or other such transactions. Energy Equity Resources (Nigeria), Ltd., a 16.8% cost share and 12.6% profit share partner in the Aje consortium, will work with the Company on potential alternatives involving third party financing to meet the requirements of both EER and the Company related to the Aje.

Agronomics Limited 10.4p £103.3m (ANIC.L)
The company focused on the field of cellular agriculture, announce that its portfolio company, Clean Food Group, has reached a partnership agreement with Roberts Bakery Ltd (Roberts Bakery), to use Roberts Bakery's surplus bread as a feedstock for its proprietary non-GMO yeast strain in the production of its precision fermentation palm oil. Waste bread is a significant concern to producers and retailers, with studies finding that nearly one million tonnes of bread are lost from the supply chain each year. Agronomics has an equity ownership of 30.59% on a fully diluted basis in Clean Food Group.

Brand Architekts Group 26.5p £7.4m (BAR.L)
The British Beauty brand business, announces on 30th June 2023, a resolution of its legal claim with Jamie Stevens Media Limited (JSML), its joint venture counterparty/co-shareholder in Mr Haircare Ltd. The Group agreed to a full and final settlement of all claims and to purchase JSML's 55% shareholding in Mr Haircare Ltd in cash at a fair value price to be determined by an external valuer. An independent valuer was appointed and JSML's shareholding has been valued at £535k. Final payment will be made shortly. The acquisition of MR Haircare is in line with the company's strategic vision to invest and build its portfolio of high-performance, problem-solving and margin accretive brands. The brand will be relaunched as 'MR Expert Solutions' and the company's vision is to consolidate its position in the Men's Thicken and Disguise haircare category and then expand the brand into adjacent male grooming problem solving categories.

CML Microsystems 390p £60.7m (CML.L)
The developer of mixed-signal, RF and microwave semiconductors for global communications markets, announces that Mark McCabe has been appointed as an Executive Director to the Board of the Company as Chief Operating Officer, effective immediately. Mark joined the Group in 2016 as Managing Director of the Communications business division. Immediately prior to joining CML, Mark was UK business unit manager for Air Liquide, a world leader in the supply of gases to the nuclear, food and electronics markets. Mark qualified as an Electrical and Electronic Engineer working in various Ministry of Defence establishments.

Kibo Energy* 0.045p £1.7m (KIBO.L)
The renewable energy-focused development company, announces that further to its previous announcements dated 23 October 2023 and 13 November 2023, respectively, its subsidiary Mast Energy Developments PLC (MED) announces that, under the terms of the binding Joint Venture Agreement (JVA), Proventure Holdings (UK) Ltd, part of the Proventure Group (Proventure), has failed to meet the conditions to complete the transaction by the contractually agreed completion long-stop date of 30 November 2023. Under the terms of the JVA, in addition to the foregoing penalties, should the JVA be terminated, Proventure shall furthermore pay to MED liquidated damages as a sum equal to 5% of the total investment value due and any reasonable costs and expenses incurred by MED in connection with the agreement. In consideration of the delays, MED has proceeded with advanced discussions with an alternative institutional investor to secure the necessary funding required to advance MED's development plans.

Mind Gym 38.5p £38.6m (MIND.L)
The provider of human capital and business improvement solutions, announces its results for the six months ended 30 September 2023. H1 FY24 revenue was £20.9m, down 22% (H1 FY23: £26.8m) impacted by economic headwinds, resulting in delays and cancellations in Q2, particularly in the US. Cash at 30 September 2023 was £2.1m (31 March 2023: £7.6m). The Company has immediate access to £2.0m of its undrawn £10.0m debt facility. Since the start of October, there have been several notable project wins in EMEA but conversion of opportunities in the US remains slow. The Company has completed an annualised £8.0m cost reduction exercise, of which £3.0m will benefit FY24. The pipeline of opportunities and the revised cost base will enable a return to strong profitability in H2 FY24. The Group continues to target a medium-term EBITDA margin of 15% to 20%.

Rainbow Rare Earths 14.5p £90.6m (RBW.L)
The developer of rare earth mineral projects in South Africa and Burundi, announces that its technical partner K-Tech, was invited to provide a written and oral testimony at a U.S. Congressional Hearing on “The Role of Federal Research in Establishing a Robust U.S. Supply Chain of Critical Minerals and Materials” on Thursday 30 November 2023. Rainbow has worked alongside K-Tech to jointly develop a unique process that offers the potential to recover critical rare earths from phosphogypsum, as is being applied at the Phalaborwa project in South Africa. Rainbow will also be using the K-Tech proprietary continuous ion exchange and continuous ion chromatography separation technology at its Phalaborwa rare earth development project, which will allow for the material to be processed into separated rare earth oxides of 99.95% purity.

Scancell Holdings 11.4p £93.4m (SCLP.L)
The developer of novel immunotherapies for the treatment of cancer and infectious disease, announces the completion of a placing as announced on 30 November 2023. New Placing Shares have been placed at the Issue Price of 11 pence per share. In total, the Company raised gross proceeds of approximately £10.7m. The Issue Price represents a discount of approximately 10.2% to the middle market closing price on 29 November 2023. The Placing Shares and the Subscription Shares together represent approximately 11.8% of the existing ordinary shares.

t42 IoT Tracking Solutions 4.25p £2.3m (TRAC.L)
The company that operates a Low-Earth orbit (LEO) 5G IoT satellite constellation, has agreed to collaborate to boost their connected containers offerings. t42 intends to incorporate 5G-IoT communication modules into its existing and future devices deployed in containers for its more than 50 logistics partners worldwide. Sateliot's unique technology allows extending 5G NarrowBand-IoT connectivity to anywhere in the world without terrestrial coverage. The significance of this technology lies in the premise that operators can connect to the nanosatellite network via a roaming service when they need to extend their coverage. Furthermore, the low cost per device and connection is an added advantage driving this innovation.

Van Elle Holdings 35.5p £37.9m (VANL.L)
The ground engineering contractor provides a trading update for the six months ended 31 October 2023 (H1 FY24. The Group expects to report revenues of approximately £68m, down 16% year-on-year. The net funds position was £8.9m (30 April 2023: £7.5m) and the Group’s undrawn funding facility is up to £11m. Subdued activity levels remain in some of the Group’s end markets, particularly the housebuilding sector, which is expected to continue into H2 FY24. The order book at 31 October 2023 increased to £32.7m (30 April 2023: £30.8m), excluding framework agreements and preferred bidder positions, provides a strong platform entering the second half. The Board continues to expect results in line with market expectations for the current financial year and is confident in the Group’s outlook over the medium term.

1 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