Small Cap Feast

1st July 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Alteration Earth PLC (ALTE.L), a UK company established as a special purpose acquisition company to seek and acquire businesses in the clean technology and/or clean energy sector, announce that its ordinary shares have been admitted to the Standard Segment of the Official List and to trading on the Main Market of the London Stock Exchange. The Company completed a successful seed and subscription funding round raising gross proceeds of £1,260,000 before expenses.
Off The Menu:
No Leavers Today.

What’s Cooking In The IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July.

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Anticipated Mkt Cap £16.58m. Due 6 July 2022.


Breakfast Buffet

ADM Energy* 0.7p £1.8m (ADME.L)

The natural resources investing company, provided an update on the legal proceedings in respect of its interest in the Barracuda oil field. As previously announced on 13 December 2021, the Company and K.O.N.H. (UK) Ltd (KONH) obtained an interim injunction at the Federal High Court of Nigeria, Lagos restraining Noble Hill-Network Limited, its officers, agents, privies, or person howsoever connected from selling, disposing, divesting, or tampering with the 70% shareholding interest of KONH in NHNL to third-party investors or in any other manner whatsoever. Further to the announcement on 6 May 2022, the Company has been advised that the Court has adjourned this matter until 16 November 2022. The Company and NHNL informed the Court they are in settlement discussions with a view to resolving the dispute. If no agreement can be reached that will satisfy the Company’s demands, ADM will await the Court’s final determination of the suit. The interim injunction continues to stand in the meantime and a further update will be made in due course.

Arc Minerals 3.4p £38.5m (ARCM.L)

Further to the announcement of 29 April 2022, the Company has received on 30 June 2022 the first cash payment of US$125k towards the US$1.5m receivable from the disposal of its Casa interests. The next US$125k is due within the next 30 days and the issuance of $1.25m in listed stock remains due by 28 July 2022. The initial cash payments were delayed due to constraints imposed by relevant Canadian exchange regulations. Arc Minerals is a dynamic junior exploration company focused on exploring for base metals (principally copper) in Africa.

Eight Capital 0.05p £0.2m (ECP.L)

The financial services fintech operating group that aims to source and deliver tech, fintech and other on-trend-sector transactions announced that its wholly owned independent corporate advisory subsidiary, Innovative Finance Srl, has appointed Mr Luciano Maranzana to its board as Managing Director. Mr Maranzana, 59, has enjoyed a highly successful professional career spanning nearly 30 years, primarily in real estate asset management.

Good Energy 272.5p £45.8m (GOOD.L)

The 100% renewable electricity supplier and innovative energy services provider, today announced the final deferred consideration received in relation to the disposal of its 47.5MW renewable generation asset portfolio as part of an ongoing strategic shift to energy and mobility services. On 20 January 2022 the Company announced the disposal of its 47.5MW generation portfolio to Bluefield Solar Income Fund. Total consideration of up to £24.5m was comprised of initial and deferred payments. The initial consideration of £16.4m, less distributions since the lockbox date of £0.7m, resulted in £15.7m being paid to the Company on completion. The company now confirms that the final deferred consideration payment of £0.5m has been received. As a result, the final total consideration received in respect of the Portfolio was £21.2m.

Live Company Group 5.8p £10.6m (LVCG.L)

Update by the live events, entertainment and sports events company on the KPOP.Flex post receipt of the final ticket reconciliation. Final ticket sales of 65k over the two day festival with a higher than expected average ticket price. Overall the event is expected as reported in our recent 2021 Report and Accounts to be profitable. Event streaming broke even with plenty of take aways for potential increased revenue generation for next shows. Merchandising upfront payment was EUR350k and total merchandising sales were in line with this payment. There was insufficient time to secure sponsorship but conversations are ongoing for future events.

Manolete Partners 300p £131.2m (MANO.L)

The UK’s leading insolvency litigation financing company, for the second year in succession, is the only firm to be ranked by Chambers in Band 1 for Insolvency Litigation Funding. Chambers and Partners yesterday released their rankings in their Litigation Support Guide for 2022. Manolete was also the only firm ranked in Band 1 in the previous 2021 Guide. Mena Halton, who leads Manolete’s in-house legal team is also the only Band 1 ranked lawyer for Insolvency Litigation Funding. Mena recently joined the Manolete Board as Managing Director.

Neometals 53p £281.5m (NMT.L)

The Emerging battery materials producer Neometals Ltd announced the appointment of highly experienced executive, Merrill Gray (B.Eng., B.Sc., M.B.A., FIEAust, FAusIMM.), as Head of Recycling. Ms Gray’s extensive 30-year career has led her to hold roles as a leader and senior executive in ASX-listed public and private companies. Over the past decade, she has been focused on future energy and next generation sustainability solutions. Most recently Ms Gray held the position as Managing Director at Hexagon Energy Materials Limited.

Personal Group 270p £84.4m (PGH.L)

The workforce benefits and services provider, announced the acquisition of Quintige Consulting Group Limited, a leading employee experience and reward consultancy, for a cash consideration of £0.9m. QCG was founded in 2000 and has become a leading HR consultancy business supporting a wide range of public and private sector organisations. It provides consultancy regarding employee experience, reward and recognition and has a strong pay benchmarking survey practice. Its clients include the British Transport Police, the Confederation of British Industry, Ofcom, The Southbank Centre, Siemens and Yoox Net-a-Porter Group. For the year ended 31 May 2022, QCG generated revenue and EBITDA (both unaudited) of approximately £750k and £200k respectively with the Acquisition expected to be immediately earnings accretive.

San Leon Energy, SUSPENDED (SLE.L)

Further to the Company’s announcement on 3 May 2022, San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, provides the following update in respect of its potential follow-on investment in the Oza oil field in Nigeria. San Leon’s announcement of 3 May 2022 noted that the Company had an option until 30 June 2022 to provide a further loan of US$2.5m to Decklar Resources Limited, in order to increase its shareholding in Decklar from 11% to 15% (or otherwise accept the pro rata reduction in its shareholding in Decklar to 11%). San Leon is in discussions with Decklar in respect of potentially extending the Option Period. The Company will release further announcements as and when appropriate.

Vertu Motors 56.5p £198.5m (VTU.L)

The UK automotive retailer with a network of 160 sales and aftersales outlets, announced the acquisition of Wiper Blades Limited, a leading e-commerce business specialising in the on-line sale of car wiper blades and other associated products through operating websites. This acquisition is in line with the stated strategy of the Group to develop ancillary businesses to add revenue and profit streams that complement the core business and is further adding digital capabilities and reach. Wiper Blades Limited complements the Powerbulbs.com business the Group bought in June 2021. The share capital of Wiper Blades Limited, was acquired for a cash consideration of £3.5m, which includes £1.1m of cash, subject to finalising the completion accounts. Consideration includes a payment in respect of goodwill of £2.4m. For the year ended 31 August 2021, the business achieved revenues of £2.2m and an unaudited profit before tax of £0.5m. The acquisition is expected to be earnings enhancing in the current year.

1 July 2022
*A corporate client of Hybridan LLP

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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.

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MIFID II status of Hybridan LLP research
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