Small Cap Feast

23 December 2021

Dish of the day
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Off the menu
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Dish Of The Day:
Libertine (LIB.L) has joined AIM. Libertine has developed a technology solution for powertrain OEMs, enabling efficient and clean power generation from renewable fuels. Libertine’s linear electrical machines, controls and tools together form a development platform (intelliGENTM) which the Group provides to OEM customers for their product development programmes. Mkt Cap on admission £27.6m. Capital to be raised £9m.

CT Automotive Group (CTA.L) has joined AIM. CT Automotive is a UK-headquartered company that designs, develops and supplies interior components for the global automotive industry. Customers include a number of original equipment manufacturers (OEMs) and Tier One suppliers to OEMs. Mkt Cap on Admission £74.9m. Capital to be raised £33.6m.

ChallengerX plc (AQSE:CXS), a “SaaS 2.0” monetisation technology and digital marketing company serving sports clubs, players, and other influencers around the world, has joined the AQSE Growth Market
Off The Menu:
No Leavers Today

What’s Cooking In The IPO Kitchen?

Hybridan Small Cap Feast will be back on Tuesday 4th January 2022.

Happy Christmas to all our readers.

Graft Polymer a business focused on the development of polymer modification and drug delivery systems to join the Main Market (Standard). Graft Polymer has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing and reducing material consumption, in turn reducing costs. In late 2018, the Group began its first commercial sales to various polymer compounders in the automotive, packaging, construction, consumer products, clothing, aerospace, healthcare and medical markets. Due late Jan 2022.

Hydrogen Utopia International PLC (HUI), to join Access Segment of the Aquis Stock Exchange. The company aims to become one of the leading new European companies specialising in turning Non-Recyclable Mixed Waste Plastic into carbon-free fuels, new materials or distributed renewable heat. HUI’s activities will range across the full value chain, from the production of energy from Non-Recyclable Mixed Waste Plastic for local communities, to the sale of its products (Syngas, hydrogen, electricity and heat) to end customers. HUI’s initial strategic focus is to work closely with Powerhouse Energy Group PLC to create a project pipeline of HUI Facilities. Due 4 Jan 22. Mkt Cap TBC.

Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Jan 2022.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission date Late Jan 2022.

Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer TBC. Due 27 Dec.

Lift Global, a financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately £ 1.7m before expenses. First dealings in the shares are expected to commence in January 2022. The flotation is expected to value Lift at approximately £2.7m.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in mid January 2022.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Due Jan 2022.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due early Q1 2022.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation. £6m to be raised on Admission. Anticipated Mkt Cap £26m. Due 30 Dec.

Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Due 24th Jan 2022.

Facilities by ADF to join AIM. Facilities by ADF plc is a provider of premium serviced production facilities to the UK film and High-end Television industry. The Group hires out its facilities to productions throughout the UK and Europe, providing its services to some of the world’s largest traditional and on-demand content production companies. The Group’s business has grown to a business servicing productions with its fleet of over 500 trailers and vehicles and providing its services to the largest global production companies including Netflix, Sky, BBC, ITV, Disney, HBO and Apple amongst others and has an estimated 35% market share of providing facilities to the UK HETV market. Anticipated Mkt Cap £37.75m. Capital to be raised £15m. Due 5 Jan 22.

Breakfast Buffet

Duke Royalty 43p £154.3m (DUKE.L)
The provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, provided a trading update for its third financial quarter ending 31 December 2021. Having added three new Royalty Partners in Q2 FY22, Duke has continued to convert its robust pipeline in Q3 FY22, securing two additional Royalty Partners and completing three follow-on investments into existing Royalty Partners. Therefore, the Company expects that cash revenue for the quarter, being cash distributions from its Royalty Partners and cash gains from sales of equity assets, will total £3.9m. Duke is cautiously optimistic that it will be able to announce a further increase in quarterly cash revenue for the period Q4 FY22.

Fintel 227.5p £234m (FNTL.L)
Fintel 227.5p £234m (FNTL.L)The UK fintech and support services business has announced that Premier Miton and Carmignac have joined a growing number of firms committed to multi-year agreements for its managed distribution service, launched earlier this year. This announcement follows news earlier this month of a first-of-its-kind partnership with Aviva and Aviva Investors, and deals with leading brands including Fidelity, Just, Guardian, Schroders and Tatton throughout 2021. Introduced in early 2021, Fintel’s managed distribution service is a subscription-based service that includes research, data, product design and distribution services. Delivered by SimplyBiz & Defaqto, businesses that sit within Fintel, the solution is designed to enhance the services provided to Intermediary Member Firms. SimplyBiz has also announced that Carmignac’s new range of model portfolios, as well as nine of Premier Miton’s risk-adjusted funds, will join its range of Risk Controlled investment solutions, further embedding the partnerships.

Gfinity 3.5p £38.4m (GFIN.L)
The esports and gaming solutions provider today announced an extension of its partnership with global advertising technology platform, Venatus. The renewed agreement will see Gfinity continue to benefit from the successful partnership, further accelerating its focus on driving the value per user across its fast-growing websites under the Gfinity Digital Media group (GDM). The GDM has seen significant growth across this year, now including 8 unique sites and reaching more than 15m unique users in November 2021. GDM is the foundation of Gfinity’s financial model, delivering revenues of £1.6m for the year ended 30 June 2021, up from roughly £0.3m in the previous year. Much of this growth is due to the continued improvement in the annualised value of each monthly user (MAU). Across the full year to June 2021, GDM averaged 10.7m monthly active unique users, delivering average annualised revenue of 15.2p per user. Venatus’ ability to reach and engage with gamers across a range of devices will help GDM as it focuses on its short-to-medium-term target of driving 50m MAUs at a target of 30p per MAU, which would generate revenue of £15.0m per annum.

Inspecs 370p £375m (SPEC.L)
Inspecs has completed the acquisition of Ego Eyewear Limited. Ego Eyewear is a design and licensing company and uses third party eyewear manufacturers to produce premium fashion brands. Its prestigious design house is based in Stockholm, and it also has operations in London, Osaka and Hong Kong. Ego’s licensed brands include Barbour, Liberty of London, Viktor & Rolf, Lyle & Scott, Henry Lloyd and Joseph, and Nordic brands Ivana Helsinki, Valerie and Day. Ego’s main distribution channel is through major optical chains. Inspecs Group plc has acquired 100% of Ego Eyewear Limited for an initial consideration of £6.175m and a deferred consideration partly based on performance over the next 3 years. Ego is expected to have revenue of £8.9m for the year to 31 December 2021 (2020: £3.4m), and Inspecs expects the acquisition to be earnings enhancing for 2022.

Kropz 4.75p £43.2m (KRPZ.L)
The emerging African phosphate developer announced a major milestone with the first introduction of ore to the plant at the Company’s Elandsfontein mine, located in the Western Cape in South Africa. Now that ore has been introduced to the plant, the team is ensuring all the front end circuits are balanced and running stably. The flotation circuits will then be commissioned and the reagents added in due course for the production of the first concentrate. Commissioning activities will transition into full scale ramp-up of the mining and beneficiation plant over the coming six months. Mining activities commenced in October 2021, and significant volumes of ore are available to support the commissioning ramp-up.

Physiomics* 6.65p £6.5m (PYC.L)
The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions announced yesterday that it had been awarded a further contract by existing client Numab Therapeutics (Numab). Building on the relationship that was first announced in May this year, a second contract has now been signed relating to a further Numab programme. The project is expected to be completed in the first half of 2022. Physiomics CEO, Dr Jim Millen, commented : “We are delighted that Numab has once again chosen Physiomics as a partner to deliver insights through the use of its advanced modelling solutions.”

Plexus Holdings 8p £8m (POS.L)
The oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities, has been awarded a purchase order for a POS-GRIP surface production wellhead system for a leading North Sea operator. The order includes Plexus’ POS-GRIP 10,000 psi leak proof “HG®” metal to metal sealing surface production wellhead, together with associated spares and valve equipment for a new gas well in the North Sea. The wellhead equipment is scheduled for delivery in second quarter 2022. The contract is expected to have a duration of approximately 120 days, with most of the revenue to be booked during the Company’s current 2021/22 financial year. This purchase order is in line with the Company’s IP led strategy to continue to gain market share within the production wellhead marketplace, together with the intention to move into other areas of the energy sector, including potentially, geothermal, carbon capture and hydrogen storage.

Redx Pharma 78.5p £216m (REDX.L)
The clinical-stage biotechnology company focused on discovering and developing novel, small molecule, highly targeted therapeutics for the treatment of cancer and fibrotic disease today announces that a milestone payment from AstraZeneca has been triggered as a result of the initiation of a Phase 1 clinical trial of AZD5055 (RXC006), a Porcupine inhibitor targeting fibrotic diseases including idiopathic pulmonary fibrosis (IPF). The milestone payment of $9m has been triggered under the terms of the out-licensing agreement announced on 4 August 2020 and completes the previously described potential total of $17m of early payments between deal signature and the successful commencement of the first clinical trial. Under this agreement, in addition to the $17m in early payments, Redx may receive up to a further $360m in aggregate development and commercial milestone payments. The Company is also eligible to receive tiered royalties of mid-single digit percentages, based on any future net sales.

Yourgene Health 12.75p £92.3m (YGEN.L)
The international molecular diagnostics group, announces that Yourgene Genomic Services has been awarded a contract for the provision of laboratory capacity to support the Winter Surge COVID-19 testing by the Department of Health & Social Care (DHSC), running until 31 March 2022. The ” Mini Tender Winter Surge Capacity (C47365)” contract is the third DHSC contract awarded to the Group this year under the Public Health England National Microbiology Framework Agreement. The previous two awards include the COVID-19 PCR surge testing announced on 19 August 2021 and the recent UKHSA sequencing contract announced on 14 December 2021.

Uniphar 392p £1,077.6m (UPR.L)
Uniphar plc today announces 3 acquisitions of UK-based brand commercialisation and pharmaceutical marketing agency, E4H, UK-based pharmaceutical distributor Devonshire Healthcare Services and Irish-headquartered pharmacy services group, Navi Group. E4H offers a wide range of digital and communications solutions to the pharmaceutical industry, including brand and strategy commercialisation, digital development, omnichannel delivery, engagement and data analysis. Devonshire has provided access to unlicensed and difficult to source medicines across the Middle East and North Africa region for 25 years to a broad variety of healthcare authorities, hospitals, overseas ministries of health and military agencies. Navi drives innovation within the Irish pharmacy sector through leading digital platforms and consistent supply of quality pharmaceutical products to its Irish and MENA partners. Each acquisition includes an upfront payment plus contingent consideration payable upon achievement of certain financial hurdles and each are expected to deliver a Return on Capital Employed to the Group in line with Uniphar’s target rate of 12%-15% within three years. The combined revenue of the acquisitions is EUR39m with the total increase in the number of colleagues joining Uniphar being 110 and expected annualised earnings accretion of mid-single digit.

23 December 2021
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged


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