Small Cap Feast

25th February 2022

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What’s Cooking In The IPO Kitchen?

URA Holdings, a London based mining exploration and development company, intends to list on the Main Market (Standard). URA, a former AIM-listed company, is refinanced and ready for listing as an African focused mineral exploration company. The Company’s purpose is to seek unique, value-enhancing opportunities in minerals as a project generator including to prove-up early-stage exploration projects to spin out/farm out or sell. The strategy is initially focussed on Southern and Central Africa, and good opportunities will occur in countries with relatively stable and reliable political system such as Zambia. The Company has raised £1.05m before costs. The net proceeds of the Placing will be primarily applied for the development of the Group’s Njoka project and working capital. Admission is expected week commencing 21st February 2022.

Neometals Ltd to join AIM. Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. The Company has four key battery materials projects that support the global transition to more circular supply chains and cleaner energy. Three with downstream focus on sustainable materials processing and recycling and one upstream mineral extraction opportunity. Mkt Cap is expected to be approximately AU$716m. Expected 28 Feb 2022.

Cleantech Lithium reported in the press to be planning an AIM float. The Company is developing two projects in Chile. Cleantech is planning to extract lithium from brines utilising environmentally friendly technologies and renewable energy.

GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended will carry on business as a Real Estate Investment Trust, subject to meeting the necessary qualifying conditions. The Company will invest, predominantly, in independent Co-Living Asset, both operational and under development, let to a diversified mix of residents, located in urban centres in the UK and Ireland where there is a shortage of high quality, affordable residential accommodation. Due March 2022.

Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.

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 March.

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. Delayed until second half of Q1 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 March 2022.

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 Feb.


Breakfast Buffet

Arricano Real Estate 27.5c US$28m (ARO.L)

Arricano, a leading retail real estate developer and operator in Ukraine, announces that whilst its centres remain open for essential supplies, trading levels are being impacted by the situation in Ukraine. A further announcement will be made in due course.

Bens Creek 59.5p £210m (BEN.L)

Update from the owner of a metallurgical coal mine in North America supplying the steel industry. Bens Creek has now completed all the necessary remedial works required on its preparation and wash plant. This work is in line with the Company’s stated intentions to repair and upgrade its coal preparation and wash plant, originally acquired at a fair value of US$10m. The preparation and wash plant will now undergo in-depth testing and sample processing, which is envisaged to last approximately two weeks, to ensure it is able to work at maximum efficiency and maximise the recovery of metallurgical coal. The repairs and improvements that have been undertaken are deemed satisfactory to process raw metallurgical coal in order to fulfil the supply required by Bens Creek’s offtake partner, Integrity Coal Inc, New York. Until the preparation and wash plant is fully operational, the sale and delivery of unwashed product to Integrity will continue in line with the announcement made by the Company on 17 January 2022.

Braveheart Investment Group 14.25p £7.4m (BRH.L)

Braveheart Investment Group plc (AIM: BRH), provides the following update on its investment portfolio and strategy. The UK Government’s decision to rapidly wind down the testing and isolation requirements for UK citizens and travellers to the UK has abruptly changed the nature of the COVID-19 test market which has led to a slowing of discussions with the remaining potential acquirers of Paraytec Limited and its COVID-19 test. It now appears unlikely that Braveheart will be able to conclude a sale with one of the remaining engaged parties at an acceptable price in the foreseeable future. Braveheart’s board believes that after the completion of the prospective clinical study, scheduled to be concluded by the end of June 2022 and provide clinical proof of concept of the CX300 technology platform, it would be in the best interests of shareholders that Paraytec focus on the development of the sepsis and bladder cancer applications for its technology. Braveheart’s remaining strategic investments are well positioned for growth and we will continue to adopt a dual strategy of building their value and at the same time engaging in discussions with potential acquirers, thereby seeking to maximise value to Braveheart. Braveheart’s current share price has fallen in recent weeks, largely in response to a change in market sentiment towards ‘COVID companies’, which has impacted other quoted companies in this space. However, the Board believes that while the current share price is now close to the net asset value stated in the unaudited Interim Accounts, Paraytec, though an important component of shareholder value within the Group will not on its own, determine the prospects for increasing shareholder returns.

Concurrent Technologies 75.5p £55.4m (CNC.L)

The specialist in the design and manufacture of high-end embedded computer boards for critical applications, has launched a new Plug in Card (PIC). TR MAx/6sd-RCR is based on the Intel® Xeon® D-1746TER chip launched worldwide by Intel yesterday. This PIC acts as the high-performance server in sensor-based solutions that are used in Electronic Warfare and Intelligence, Surveillance and Reconnaissance applications. The higher bandwidth communication interfaces on this PIC enables these systems to collect and process massive amounts of data without compromising the system Size, Weight and Power (SWaP) metrics. The new board comes loaded with security software which can be enhanced with the addition of the Hardened Security platform designed by the global security and aerospace company, Lockheed Martin. The Plug in Card is fully aligned to the US SOSA™ Technical Standard, allowing a seamless upgrade path for current and future applications.

Insig AI 37p £39.1m (INSG.L)

The data science and machine learning solutions company, announced that CarVal Investors, a global alternative investment manager, and Insig Partners Limited, a wholly owned subsidiary of the Company, have formally entered into a long-term services agreement to develop and launch a new line of high yield (HY) and investment grade (IG) ESG scoring tools. These new ESG scoring tools will be used by CarVal to optimise HY and/or IG portfolios based on ESG considerations. The Agreement follows the successful launch of the CarVal Clean product line and CarVal’s first ESG Collateralised Loan Obligation in 2021, which was supported by Insig AI per the RNS announcement released on 17 August 2021. The Agreement entitles Insig AI to fees based on CarVal’s assets under management raised in connection with the HY and/or IG focused investment pools, which are anticipated to commence within six to twelve months of the completion of the scoring tools and accrue over the life of such investment pools. These fees are anticipated to provide Insig AI with a substantial, long term and growing revenue stream. CarVal’s proprietary ESG risk scores, combined with Insig AI’s Natural Language Processing disclosure scores which use the Company’s machine learning techniques, enable rapid analysis of more data, scenarios and outputs. These capabilities are expected to enable CarVal to make more detailed ESG-influenced investment decisions.

Live Company Group 5.05p £8.4m (LVCG.L)

The Company has signed two new contracts for BRICKLIVE Paddington and Paw Patrol. The first contract for Paw Patrol is with Northampton BID which will run from 12 March to 27 March. Visitors can collect a trail-map and answer questions based on the models of their favourite Paw Patrol characters including Chase, Marshall and Skye. The second is with a heritage steam railway for Paddington which will take place during May half term and is the second time we will be working with a historic railway company. Live Company is a live events, entertainment and sports events company, that has been trading on AIM since 2017. The Group is divided into two divisions the first, BRICKLIVE, consisting of a network of partner-driven fan-based and touring shows using BRICKLIVE created content worldwide. The second, LCSE, manages a number of global sports, entertainment and lifestyle events. LCSEs main focus for 2021 has been the successful launch of the Formula E Cape Town race for series 9 in 2023.

Oxford Biodynamics 23.8p £23.9m (OBD.L)

Oxford BioDynamics announces the US launch of its Checkpoint Inhibitor Response Test (EpiSwitch® CiRT) for oncology. First-of-its-kind precision medicine test to predict a cancer patient’s response to an Immune Checkpoint Inhibitor (ICI). Provides guidance to support critical treatment decisions on beginning or continuing treatment with this essential class of cancer therapeutic. A significant advancement in harmonizing the prediction of response to ICI treatment, as demanded by the FDA and oncologists. Clinically validated blood test now available to oncologists across the US; early adopter orders from oncologists are being booked. EpiSwitch CiRT delivers best in class performance: 93% sensitivity, 82% specificity, 85% accuracy.

Petro Matad 3.65p £32.8m (MATD.L)

Operational update from the Mongolian Oil Company. On the Block XX Exploitation Area The Company has advanced negotiations with operational service providers for the 2022 work programme and has secured some price reductions compared to the 2019 drilling programme. Contracts are being prepared in advance of discussions at the annual budget meetings with the industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM). Petro Matad is pushing for operational activity to start after the winter hiatus in Q2 with the re-entry, stimulation, and completion for production of Heron 1. The environmental impact assessment to allow Petro Matad to operate in Block V in 2022 and beyond was completed, submitted and has been approved by the Ministry of Environment. The Company is now working with the local authorities to try to secure land access and usage permits for the high graded Raptor trend.

Revolution Beauty 127.5p £391.8m (REVB.L)

The multi-brand, multi-category, and multi-channel mass beauty innovator with proven global scale, has completed the acquisition of certain intellectual property assets and inventory of the US born cosmetics brand BH Cosmetics Holdings LLC for a consideration of US$3.9m. The acquisition was financed through the Group’s existing cash resources. This highly complementary acquisition enhances Revolution Beauty’s strategy to offer consumers around the world quality beauty products at affordable prices. Launched in Los Angeles in 2009, Badass with Heart (BH) Cosmetics is a brand with a strong point of view, producing vegan and cruelty-free cosmetics for loyal Gen Z consumers seeking high quality cosmetics at attractive price points. With over 6.5m social media followers, BH sells through its own direct to consumer channel, and several focused retailers across the US, and Germany. The brand, which is well known for its makeup brushes, strengthens categories within the Group’s current portfolio. In 2019, BH delivered net revenue of US$55.8m and was only distributed across online and retail channels in the US and Germany. Covid-19 significantly impacted the business with revenue decreasing to US$33.7m in 2020, generating a loss of US$22.5m, caused by high operating costs. BH Cosmetics filed for Chapter 11 Bankruptcy Code protection in the US Bankruptcy Court on 14 January 2022.

Tekmar Group 43.5p £22.4m (TGP.L)

The provider of technology and services for the global offshore energy markets, announced a proposed conditional placing, via an accelerated bookbuild of new ordinary shares. The Firm Placing will be conducted at a price of 45 pence per share to raise no less than approximately £4m. All of the Company’s executive and non-executive Directors are expected to participate in the Firm Placing. Qualifying Shareholders will be offered the opportunity to subscribe for an aggregate of up to 2,249,015 new Ordinary Shares through an open offer at the Issue Price to raise approximately £1m (before expenses). The net proceeds will be used to: provide working capital headroom to support new contract deployment; invest in operational efficiency improvements; support the Company’s R&D and technology roadmap; and strengthen the Company’s balance sheet. The Issue Price of 45 pence represents a premium of 7.1 per cent. to the closing mid-market price of 42 pence per Ordinary Share on 24 February 2022.

25 February 2022
*A corporate client of Hybridan LLP

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The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

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