Small Cap Feast

23rd October 2023

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What’s Cooking In The IPO Kitchen?

Announced ITF 11 October: Cykel AI, the company developing artificial intelligence AI software designed and trained to execute commands in response to natural language directives, specifically within the realm of computer interfaces, intends to join the Access Segment of the AQSE Growth Market. Admission on or around 25 October.

Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 30 October.

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. Admission delayed, expected mid-November.


Breakfast Buffet

Eleco 82.5p £68.6m (ELCO.L)
The specialist software provider for the built environment announces that the Board of Eleco plc has appointed Mark Castle, who was acting as Interim Chair, as the permanent Chair of the Board with immediate effect. Mark who joined the industry as an apprentice in 1981, is currently a Non-Executive Director at FTSE 100 housebuilder, Taylor Wimpey and also a Non-Executive Director at Mace Group.

Europe Oil & Gas Holdings 1.18p £11.3m (EOG.L)
The UK and Ireland focused oil and gas exploration, development and production Company announces its final audited results for the 12-month period ended 31 July 2023. Revenue remained at £6.7m despite a lower oil price and the weaker pound (2022: £6.6m) and as a result, gross profit increased 53% to £3.4m (2022: £2.2m). The Company reported a pre-tax loss of £0.9m after a non-cash impairment loss of £1.7m (2022: pre-tax profit £1.4m) and the Company held a cash balance of £5.2m (2022: £8.3m). The Company announced gross production averaged 710 bopd throughout the period (2022: 597 bopd), and the Company remains optimistic about the future.

Horizonte Minerals 18.25p £49.2m (HZM.L)
The nickel company developing two Tier 1 assets in Brazil reports that construction activities continue to progress well at its Araguaia Nickel Project. As of 30 September 2023, US$429m has been spent on Araguaia with progress made across key work fronts and no interruptions to date on construction activities. As stated on 2 October 2023, Reta Engenharia has been retained to complete a detailed capital cost and schedule analysis which is expected to be completed by mid Q4-2023. The Company also state that the Araguaia Nickel Project Line 2 Feasibility Study which aims to double nickel production from 14,500 tonnes per annum to 29,000 tonnes per annum is expected to be published in mid Q4-2023.

Kibo Energy* 0.055p £2.1m (KIBO.L)
The renewable energy-focused development Company announces that further to its previous announcements dated 12 July 2023, 4 August 2023, 1 September 2023 and 22 September 2023, respectively, its subsidiary Mast Energy Developments PLC (MED), a UK-based multi-asset owner, developer and operator in the rapidly growing flexible market, has signed a replacement first definitive and binding Joint Venture Agreement (JVA) with Proventure Holdings (UK) Ltd, part of the Proventure Group. The terms of the replacement JVA are the same in all material aspects as that of the previous JVA. Further, under the terms of the JVA, Proventure is required to make an initial interim payment of £2.0m to the Joint Venture Special Purpose Vehicle and is to be received no later than 10 November 2023. As such, MED has extended the completion long-stop date for the JVA as well as the payment of the balance of the investment, amounting to c. £3.9mn, by no later than 30 November 2023.

Northern Bear* 56p £10.5m (NTBR.L)
The holding company of the group of companies providing specialist building and support services headquartered in Northern England and serving customers across the UK has announced a proposed return of capital of up to £3.1m by way of a Tender Offer for up to 5,000,000 Ordinary Shares at a fixed price of 62p, representing a premium of 39.3% to the closing price of 44.5 pence per Ordinary Share on the Latest Practicable Date. The Tender Offer would create an exit strategy for Shareholders who wish to sell their investments, including Jeff Baryshnik. The Company would fund the Tender Offer using its existing cash resources and an increase of £1.0m to its existing debt facilities of £4.5m from its bank, Clydesdale Bank plc. The Group currently has no bank debt and had a net cash position at the last financial year end of £3.2m. The Group had continued to trade in line with management's expectations since publication of the preliminary results on 17 July 2023.

Ondine Biomedical 11.5p £22.4m (OBI.L)
The Canadian life sciences company reports new independent research findings from Vancouver General Hospital which were presented at the IP2023 conference in Liverpool. With the inclusion of Steriwave nasal photodisinfection in its presurgical quality improvement protocols, researchers at Vancouver General Hospital (VGH) were able to demonstrate a 66.5% reduction in its surgical site infection (SSI) rate in spine surgery patients. The VGH spine group also estimated that the prevented SSIs over the 8-year study period between 2011-2019 resulted in institutional cost savings of $19.9m, a net annual cost saving of $2.49m.

OptiBiotix Health 28.75p £26.2m (OPTI.L)
A life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skincare announces that it has reached an agreement with Tata Chemicals Limited to incorporate its proprietary Fossence into SlimBiome and LeanBiome for the Indian market. Tata Chemicals have approved the use of the Fossence logo on products containing SlimBiome in India bringing a branded ingredient to the attention of Indian consumers. The agreement is part of the Tata Group which employs over one million people with annual revenues in 2022 of $300bn.

Synectics 112.5p £20m (SNX.L)
A Company focusing on advanced security and surveillance systems announces that Craig Wilson, Non-Executive Chair, has resigned with immediate effect to pursue other business interests and Steve Coggins, a Non-Executive Director, has been appointed as interim Non-Executive Chair.

The Mission Group 14p £12.7m (TMG.L)
The Company focusing on digital marketing and communications Agencies provides an update on current trading for the remainder of 2023 financial year to 31 December 2023 (FY2023). The Group's net debt was approximately £25.5m compared to £14.9m as at 30 June 2023. The Group's committed bank facilities comprise a revolving credit facility of £20.0m, with an option to increase the facility by £5.0m, which expires on 5 April 2025. In addition, the Group has an overdraft facility of up to £6.0m. Client wins have been more than offset by losses and several clients choosing to defer or significantly reduce spending and as a result, the Board is extremely disappointed by the recent adverse change in current trading, and the outlook for the remainder of FY2023.

Trinity Exploration and Production 63.5p £24.5m (TRIN.L)
The independent E&P company focused on Trinidad and Tobago provides an update on operations for the three-month period ended 30 September 2023 (the Period). Q3 2023 sales volumes averaged 2,705 bopd (Q2 2023: 2,824 bopd). Production was lower than anticipated due to extended downtime on a key well in the Trintes field which is now back online, and as a result production sales guidance for the full year 2023 is 2,800 bopd - 2,900 bopd (previously 2,800 - 3,100 bopd). The Company announced average realisation of USD 72.5/bbl (Q2 2023: USD 63.7/bbl, Q3 2022: USD 84.3/bbl), and EBITDA, pre-hedging, in Q3 2023 of USD 4.6m (unaudited) (Q2 2023: USD 4.5m (unaudited); Q3 2022 USD 8.7m). The Company holds cash balances of USD 8.4m (unaudited) at 30 September 2023.

23 October 2023
*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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