Small Cap Feast

22th 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

Arecor Therapeutics Resources 265p £81.1m (AREC.L)
The biopharmaceutical group announces that the first patient has been dosed in its Phase I clinical trial investigating AT278, an ultra-rapid acting, ultra-concentrated (500 U/mL) insulin candidate, in Type 2 diabetic patients. The trial is a double blind, randomised, crossover study comparing the pharmacokinetic (PK) and pharmacodynamic (PD) profile following a single subcutaneous dose of 0.5 U/Kg of AT278 (500 U/mL) with NovoRapid® (100 U/mL) in 32 people with Type 2 diabetes in a euglycemic clamp setting. The trial is expected to complete within Q4 2023.

Arrow Exploration 15.5p £34.0m (AXL.L)
The Canada-based junior oil and gas company provides an update on the drilling activity at Rio Cravo Este (RCE) on the Tapir Block in the Llanos Basin of Colombia. The RCE-4 well was completed in the C7-A and C7 Stringer zones and the currently producing from those zones. A submersible pump has been inserted but has yet to be turned on. The well is currently being choked back and it is naturally flowing with a 25/168 choke. In the last 24 hours, it has produced at a rate of 728 BOPD gross (364 BOPD net) of oil at 28.5 API and with a 1% water cut. The RCE-3 well is flowing at 822 BOPD gross (411 BOPD net) while being choked back currently with a 21/128 choke. The submersible pump has been inserted but not turned on at this time. Water cut remains at 0%. Both wells are currently flowing better than expected and the Company is choking the wells back in an effort to manage the reservoir and discourage premature water production. Arrow plans to engage the pumps and slowly increase production once the wells have stabilized.

Atalaya Mining 335p £468.6m (ATYM.L)
The copper company focused on copper production in Spain announce its audited results for the year ended 31 December 2022. Revenue was EUR362m, down 11% and EBIDTA was EUR 55m, down 54% from 2021, due to a EUR 64m increase in annual electricity cost. Net cash remains strong at EUR 53m. Investments in 2023 will continue to focus on growth, cost reductions and decarbonisation, including exploration, E-LIX Phase I and the 50 MW solar plant. Improved performance in 4Q22 provides the basis for strong 2023 outlook, with copper production of 53-55 kt at AISC of $3.00-3.20/lb Cu. Improved performance is expected for 2023, due in part to lower forecast electricity prices

Falcon Oil & Gas 8.35p £86.0m (FOG.L)
The international oil and gas company announce the successful completion of a 25-stage stimulation programme at the Amungee NW-2H (A2H) well. The A2H well was drilled to a total depth (TD) of 3,883 metres, including a 1,275-metre horizontal section within the Amungee Member B Shale (formerly known as the Middle Velkerri B-shale), in the Beetaloo Sub-Basin, Northern Territory, Australia with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B1) Pty Limited in December 2022 with stimulation commencing in February 2023. Flow back operations are ongoing and there is potential to confirm production rates to support the joint venture moving to a multi-well pilot development programme in 2023/2024.

Good Energy Group 187.5p £31.6m (GOOD.L)
The lean energy company has launched a new smart export tariff for households with solar panels. This latest milestone is in line with Good Energy's strategy to expand its decentralised energy services offering. The 'Power for Good' tariff will pay customers 10p per kWh, a leading rate for a variable export tariff which can help the typical solar-powered home generate around £150 per year for the energy they share. This tariff scheme complements and accelerates the company's solar installation rollout strategy.

Pharos Energy 22.9p £98.9m (PHAR.L)
The independent energy company announces its preliminary results for the year ended 31 December 2022. Revenues were up 35% at $221.6m prior to realised hedging loss of $22.5m (2021: $163.8m prior to realised hedging loss of $29.7m). Revenues for Vietnam was $184.8m (2021: $131.0m), with the average realised crude oil price at $106.44/bbl (2021: $72.61/bbl). The revenue for Egypt was $36.8m (2021: $32.8m). Profit for the year was $24.4m (2021: loss $4.7m). Net debt as at 31 December 2022 was $28.9m 4,5 (2021: $57.5m). The 2023 production guidance is 6,050-7,500 boepd net: 4,700 - 5,700 boepd net for Vietnam and 1,350 - 1,800 bopd net for Egypt (compared to 5,418 boepd net in Vietnam and 1,748 boepd net in Egypt in 2022).

Sareum* 86p £58.5m (SAR.L)
The biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces its unaudited results for the six months ended 31 December 2022. Loss on ordinary activities after taxation was £1.4m, reflecting investment in preparatory work for a clinical trial application (2021: loss of £0.9m). Cash at 31 December 2022 was £2.9m (£4.3m as of 30 June 2022). After the period end, Sareum submitted an application to perform Phase 1 clinical studies on SDC-1801 in Australia under the Clinical Trial Notification (CTN) scheme. Approval by the Human Research Ethics Committee (HREC) and acceptance of the CTN by Australia's medicines regulator, the Therapeutic Goods Administration (TGA), is expected in Q2 2023.

Ten Entertainment 284.5p £194.9m (TEG.L)
The UK operator of 49 social entertainment centres, announces its audited results for the 53 weeks to 1 January 2023 (FY22). Revenue was £126.7m, up 51% and profit after tax was £26.6m, up 194% from FY19 (pre-COVID level). Net cash was £10.1m (compared to a net debt of £4.1m ending FY19. The company is currently building two more centres in the UK. Like-for-like sales growth vs 2022 in first 10 weeks of 2023 is up 2.7%. Bowling prices maintained to continue to deliver value for money and maintain sales. Utility costs are 90% fixed until September 2024.

Titon Holdings 70p £8.0m (TON.L)
The manufacturer of ventilation systems and window and door hardware, provides a trading update for the current year to 30 September 2023 (FY23). Trading in FY23 to date has been in line with the Board's expectations. Sales in the first quarter of FY23 in the UK and Europe exceeded the comparative quarter in FY22. Supply chain constraints in the UK and Europe have eased and the Group has cleared the majority of the backlog customer orders. The Board continue to anticipate a return to profitability in H2 FY23.

Verici Dx 6p £10.2m (VRCI.L)
The developer of advanced clinical diagnostics for organ transplant, provides an operational update. Verici Dx continues to execute the commercial introduction of Tutivia™, its first product for kidney transplant rejection, with first revenues in FY 2023 and is exploring strategic options to increase sales distribution and launch its second lead product, Clarava™ by the end of the year. The Company retains sufficient funding to achieve further key milestones in 2023 and the first half of 2024.

22 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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