Small Cap Feast

21st November 2023

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Instem Plc (INS.L) has left AIM.

What’s Cooking In The IPO Kitchen?

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

Accsys Technologies 59.9p £131.9m (AXS.L)
The fast-growing Company that enhances the natural properties of wood to make high performance and sustainable building products announces that it proposes to raise gross proceeds of approximately EUR34m of a convertible loan note and equity placing. A Placing to raise gross proceeds of approximately EUR13m at a price of 69.35 Euro cents (61.00 GBP pence) represents a discount of approximately 3.2%. The Company also announces the issue of between approximately EUR19m-EUR21m new Convertible Loan Notes, which includes the refinancing and discharge of the existing 2022 EUR10m convertible loan with De Engh BV Limited. The net proceeds of the Capital Raise along with the Debt Extension Package allow Accsys to commence commercial operations of its Accoya plant, currently under construction Kingsport, US, in mid-2024, strengthen its balance sheet and increase working capital headroom.

Eckoh 36p £104.6m (ECK.L)
The global provider of Customer Engagement Data Security Solutions announces unaudited results for the six months to 30 September 2023. Revenue decreased 4% to £18.8m (H1 FY23: 19.6m), and as a result adjusted EBITDA decreased by 3% to £4.9m (H1 FY23: £5.0m). The profit before tax reduced 47% to £1.5m (H1 FY23: £2.9m) and the Company holds net cash of £7.3m (H1 FY23: £4.4m). The Company further announced that its new global commercial strategy is progressing well, with focus on the large North America addressable market. The Company is on track to meet expectations for the full year.

Empresaria Group 31.5p £15.6m (EMR.L)
The staffing group provides an update on trading. The most significant impact has been on permanent recruitment throughout the year, and the Company are now seeing clients deferring hiring decisions and/or start dates until the new year. As a result, full year adjusted profit before tax is expected to be in the range of £3.0 to £3.5m. Costs in the second half of the year are expected to be more than £3m, lower than in the first half. The Board mention that challenging market conditions have been experienced throughout 2023 and expect these to continue into the first half of 2024.

Intercede Group 68p £39.6m (IGP.L)
The Company focusing in digital identity, credential management and secure mobility announces that the Group has secured the following new contract and renewal orders: 1) New licence order for MyID CMS from a major world governance bank based in Europe; 2) Commencement of professional services for a new deployment with a US Federal Agency; 3) Upgrade by a large Transportation Agency in the US; and 4) Renewal of Support and Maintenance contracts across a host of smaller clients of the Group. These orders, with an aggregate contract value in excess of $0.5m, underpin the Group's revenue for FY24 and create a contracted revenue backlog for FY25.

Knights Group Holdings 95.6p £82.0m (KGH.L)
A UK legal and professional services business provides a trading update for the half year ended 31 October 2023. The Group anticipates half year revenue of c.£75.3m, an increase of 6% (H1 23: £71.2m), with underlying PBT anticipated to be c.£11.5m, an increase of 28% (H1 23: £9.0m). The Group has net debt of c.£38.3m at 31 October 2023 (H1 23, £35.6m, FY 23: £29.2m), after c.£7.5m of acquisition consideration, debt and related costs in the first half, providing significant headroom against the Group's recently increased £70m revolving credit facility. The Group completed the acquisition of St James Law (Newcastle) and Baines Wilson (Carlisle), further strengthening the Group's presence in the North. The Group's first half performance is in line with the Board's expectations.

Mycelx Technologies Corporation 62p £14.2m (MYX.L)
The clean water and clean air technology Company transforming the environmental impact of industry confirms it has now received the formal Purchase Order for the REGEN contract, which was announced on 16th November 2023, valued at $5.4m. This contract award is further evidence of MYCELX's REGEN solution gaining added traction with both strategic partners and customers of scale. The Company is currently engaged in two trials deploying REGEN media for water treatment: One trial is US onshore, with a US-based oil producer, and the second trial is in the Middle East in cooperation with a technology company focused on Enhanced Oil Recovery oil production. The Company expects the equipment to be operational in H2 2024.

Poolbeg Pharma* 9.35p £46.8m (POLB.L)
A biopharmaceutical company focussed on the development and commercialisation of innovative medicines targeting diseases with a high unmet medical need announces that the Japanese Patent Office has notified the Company of its official decision to grant Poolbeg's Immunomodulator II patent application. Poolbeg has a worldwide licence for POLB001 for all uses in humans and is developing a strong IP portfolio with patents in place, including Immunomodulator I and Immunomodulator II, covering the use of the class of p38 MAP kinase (mitogen-activated protein kinase) inhibitors for the treatment of severe influenza and the use of POLB 001 for the treatment of hypercytokinaemia. By continuing to strategically grow the IP around POLB001, Poolbeg aims to enhance the overall value of this exciting molecule for partnering purposes. This latest patent relates to the pharmaceutical composition of POLB001 for treating severe influenza in hospitalised patients in combination with antiviral compounds.

Trident Royalties 33.5p £98.1m (TRR.L)
A growth-focused diversified mining royalty and streaming Company with exposure to a mix of base battery, precious, and bulk metals announces that all pre-conditions to the Antler Royalty acquisition in the binding acquisition agreement (Agreement) have now been satisfied. On 8 November 2023, the Company announced it had entered into an Agreement to acquire a 0.9% net smelter return (NSR) royalty (Royalty) over New World Resources Limited's (New World) Antler copper project in Arizona, USA. The Royalty also includes a 0.45% NSR over any ground subsequently acquired by New World within 5km. The Royalty was acquired for a total consideration of A$11m.

UK Oil and Gas Investments 0.027p £6.3m (UKOG.L)
The UK-based oil and gas exploration and production Company announces that the Pinarova joint venture's order of more powerful 7-inch perforating guns, arrived in-country last week via airfreight into Istanbul. Upon completion of the necessary preparations/paperwork the guns will be transported to site, triggering the resumption of testing operations. Geochemical analysis demonstrates that the Pinarova mud pit oil is near identical to and from the same source rock as the 42 degree API seismic shot hole oil seep, located around 1.5 km to the west.

Zenova Group 4.5p £4.8m (ZED.L)
The fire suppression and interdiction solutions Company announces further to its announcement on 9 October 2023, that the Company's FX fire extinguisher range has now been granted Europe's highest possible EN3-7 standard certifications for 34A, 113B, 75F and Electrical for the Company's 6-litre product and 43A, 183B, 75F and Electrical for its 9-litre offering. The Company's fluid has been demonstrated further to be effective against lithium battery fires. The testing was undertaken and certification granted by MPA Dresden, a European Union-recognised certification centre.

21 November 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


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