Small Cap Feast

21th March 2023

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What’s Cooking In The IPO Kitchen?

Ocean Harvest Technology Group plc, a commercial scale producers of seaweed blend ingredients for the animal feed market intends to join AIM. The main country of operation is Vietnam where the Company's main production and processing facility is located. The Company is headquartered in Theale, UK with further operations in Galway, Ireland and Binh Duong Province, Vietnam. Expected Admission date 29th March 2023.

M7 Box+ REIT plc, a newly established, externally managed closed-ended investment company announces that it intends to join the Wholesale segment of IPSX. Upon Admission, the Company proposes to acquire a portfolio of seven let and operational e-warehouses from M7 Box+ II LP. As at 31 December 2022, the Property Portfolio was valued at £228.9m. Expected Admission April 2023.

Altona Rare Earths, a mining company focused on the development of a significant Rare Earth Elements (REE) mining project in Africa, announced its intention of withdrawing from the AQSE Growth Market to the Standard Segment of the Main Market. The Company has just raised £2m and plans to use the proceeds to complete its maiden JORC compliant Mineral Resource Estimate and a Scoping Study for its Monte Muambe Rare Earths mining project in northwest Mozambique. Admission Delayed. A further update will be provided once the date of Admission, currently expected to be towards the end of March 2023, is confirmed.

Fadel Partners, a developer of cloud-based brand compliance and rights and royalty management software in the media, entertainment, publishing, consumer brands and hi-tech/gaming sectors intends to join the AIM market. Fadel has two solutions, being IPM Suite and Brand Vision. Expected Admission date is late March 2023.

Onward Opportunities Limited intends to join the AIM market. The Company's investment objective is to generate returns for Shareholders through investments in equity and equity-related instruments of UK smaller companies that are predominantly listed or admitted to trading on markets operated by the London Stock Exchange. Admission delayed to late March from mid-March 2023.


Breakfast Buffet

Brand Architekts Group 28p £7.8m (BAR.L)
The development and supply of beauty and personal care brands, announces its interim results for the 6-month period ended 31 December 2022. Revenues for the period increased 45% to £10.6m, as a result of the acquisition of Innovaderma Plc at the end of May 2022. Gross Profit Margin improved to 38.9% (H1 22: 32.5%) and underlying operating loss of £0.8m remained flat with the year prior (H1 22: £08m). Loss before tax increased to £1.8m (H1 2022: £1.1m) owing to Innovaderma related exceptional costs and intangibles amortisation. The Group remain focused on delivering its strategy and returning the Group to profitability.

Caracal Gold 0.4p £7.5m (GCAT.L)
The expanding East African gold producer announces the discovery of a new high-grade zone above the current underground workings and above the areas drilled as part of the Mineral Resource Estimate (MRE) on the Kilimapesa Hill deposit. The area is being accessed from the current open pit, and with exploration drilling on hold at present, a decision was made to bulk sample the area and process the material through the milling plant. 360tpd is being processed through the milling plant, with average grades rom 3.31g/t to 4.74g/t being processed. The exploration team is extending the work on the high-grade zone to define the full extent of the strike, this will be followed by trenching, sampling and drilling, with the goal of defining high grade ore for long-term processing through the milling plant and to include the ounces into the Kilimapesa Hill MRE.

Fintel 198.5p £205.4m (FNTL.L)
The provider of Fintech and support services to the UK retail financial services sector, announces its audited consolidated results for the year ended 31 December 2022. Core revenue increased 8% to £56.4m ahead of its medium-term target, underpinned by growth in the Fintech and Research division. Adjusted EBITDA increased 6% to £19.4m, while statutory EBITDA decreased 33% from £25m to £16.7m. Net cash at the end of the period of £12.8m with a revolving credit facility fully repaid and undrawn since June 2022. Revenue and adjusted profit before tax performed inline with the Board's expectations. Current trading in 2023 has continued to perform in line with expectations.

Fusion Antibodies 35p £9.1m (FAB.L)
A contract research organisation providing discovery, design, and optimisation services for therapeutic antibodies to the global healthcare market, announces that it has filed a patent application for a panel of antibodies that bind to an important target for cancer therapeutics. These antibodies have the potential to inhibit the pro-tumourigenic activity of their target in cancer, which is supported by pre-clinical data. The Company is exploring options to out-licence these antibodies to a clinical development company to progress them into Phase I clinical trials.

Powerhouse Energy Group 1p £39.6m (PHE.L)
The company pioneering integrated technology which converts non-recyclable waste into low carbon energy, announces that it has agreed Heads of Terms (HoTs) with Hydrogen Utopia International Plc (LON: HUI) for the proposed joint development of a non-recyclable plastic waste-to-hydrogen facility site at Longford, County Longford in the Republic of Ireland (the Longford Project). Under the HoTs, PHE and HUI have agreed to use a joint venture vehicle with equal shareholding and development costs being contributed to on a 50:50 basis. PHE has agreed to pay HUI a non-returnable payment of up to £400k in cash in recognition of HUI's contribution to identifying the Longford Project, securing the option to lease and progressing the project. This cash payment comprises an initial payment of £100k on signing the HoTs, a further £100k upon finalisation of the project documentation, and £200k to HUI once planning permission has been granted for the Longford Project on the Longford Site.

Pressure Technologies 38.5p £14.9m (PRES.L)
The specialist engineering group, provides a trading update. The Board is reviewing its accounting policy and past accounting treatment in respect of a small number of long-term defence contracts within its Chesterfield Special Cylinders division. As a result of a correct application of IFRS 15, the Group's results for FY22 are now expected to reflect a £1.2m increase in operating losses over the £1.4m previously announced. The correct application of IFRS 15 has also been applied to prior periods FY19, FY20 and FY2. However, there will be a corresponding increase in operating profits of £2.3m over the remaining lives of these contracts, the majority of which is expected to be in FY23 and FY24. The accounting adjustments only impact the timing of profit recognition under these specific contracts. The Board remains confident in underlying market opportunities and continues to foresee a return to profitability and positive cash generation in FY23.

Renalytix 77.5p £72.7m (RENX.L)
Renalytix plc announces that the review process with the Food and Drug Administration (FDA) for the KidneyIntelX De Novo marketing authorisation application has been delayed, but continues at an advanced stage. Previously the FDA indicated to the Company that completion of the process would be before the end of Q1 2023. The FDA is now working towards a decision date by the end of Q2 2023. Based on recent interactions with the FDA, while there can be no guarantees, management remains optimistic and is working diligently with the FDA towards a successful outcome.

SpaceandPeople 75p £1.5m (SAL.L)
The retail, promotional and brand experience specialist, issues a pre-close trading update for the year ended 31 December 2022 (FY22). Total unaudited revenue for FY22 is approximately £5.5m; in line with market expectations. As at 31 December 2022, the Group had cash of £1.9m (31 December 2021: £1.4m) with £1.5m of term loans (2021: £1.8m) and undrawn bank facilities of £0.7m. Cash headroom at 31 December 2022 was £2.6m (2021: £2.2m). Trading momentum has continued in early 2023.

Symphony Environmental Technologies* 9.5p £17.6m (SYM.L)
The global specialists in technologies that make plastic and rubber products smarter, safer and sustainable, provides an update on the EU court hearing. The company’s case against the Commission, Parliament, and Council of the European Union was heard on 20 March 2023 in the General Court of the EU in Luxembourg. Symphony's case is that Art. 5 of the Single-use plastics Directive 2019/904 is unlawful and is claiming for losses and reputational damage. Symphony does not accept that Article 5 applies to its technology, but the confusion caused worldwide by the wording of the legislation is obstructing the adoption of the technology. A written judgment will be delivered in due course, which the Company’s legal advisers estimate could be 12 to 15 months after the hearing, and without prior notice.

Tissue Regenix Group 0.615p £43.3m (TRX.L)
The regenerative medical device group, announces its audited results for the year ended 31 December 2022. Group revenues increased by 24% to USD24,476k (2021: USD19,746k), the Group experienced growth across all three key business segments (BioRinse, dCELL and The Group’s joint venture, GBM-V). Gross profit for the year was USD11,258k (2021: USD8,476k). Gross margin increased to 46% (2021: 43%). The Group reported a positive Adjusted EBITDA for the first time in the fourth quarter of 2022. The loss for the year was USD2,596k (2021 loss: USD4,985k); the reduction in the loss was driven by the increases in sales revenue and gross margin percentage. In 2023, TRX aims to pursue the commercialisation of products which utilise its core technology platforms, provide product line extensions that are fast to market, and address a specific clinical or commercial need.

21 March 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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