Small Cap Feast

25th May 2022

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What’s Cooking In The IPO Kitchen?

According to news reports, The Very Group, is looking to float after calling off their plan for a £4bn IPO last year due to a volatile market. The ecommerce group is owned by the Barclays family. According to the Sunday Times, the retailer has offered incentives to senior leaders at the firm for pulling off a flotation, which the Barclays family now hope to get underway in mid-2023.

Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in the UK and Europe. Psych is developing the Blossom Database pursuant to a third-party licensing arrangement, and Psych will work to develop an artificial intelligence platform that will provide biotech companies advanced clinical data that will be able to fast-track drug development and loop back the real-world data, in a centralised database, to provide feedback on molecules and associated therapy programmes. Due Date 9th June 2022.

Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due June 2022.


Breakfast Buffet

Accsys Technologies 125.25p £241.4m (AXS.L)

The fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today announces that it proposes to raise gross proceeds of approximately EUR20m (approximately EUR19m net of expenses) by way of a Placing and Subscription of new ordinary shares of 0.05 euro cents nominal value each in the Company at a price of 145 euro cents (123 pence). The net proceeds of the Issue will be used to strengthen the Company’s balance sheet, increase liquidity headroom and fund additional costs to complete the Arnhem Plant Reactor 4 (R4) capacity expansion. The Issue will also provide increased working capital in FY23 to support the wider Accsys organisation in what is a pivotal year, as the equivalent of an additional 60,000m3 of new capacity projects are due to come online in the next three months, increasing the total capacity at Group level to 120,000m3.

Advanced Medical Solutions 281.5p £608.2m (AMS.L)

The specialist in tissue-healing technologies, has received FDA 510(k) approval for LiquiBand® XL, a new device that can close longer wounds than existing LiquiBand® products. The device consists of a surgical mesh which is used to close the wound and LiquiBand® glue which is used to strengthen the closure and prevent infection. Product launch into the US is expected in the third quarter of 2022. The device has been used successfully on a variety of orthopaedic procedures in multiple territories since its European approval in 2021 and has received very positive feedback in terms ease of use, efficacy and reduced pain and scarring in comparison with other closure methods such as stapling. The addition of LiquiBand® XL to AMS’ Advanced Wound Closure portfolio is an important step in the development of this franchise. It provides access to a new $60m, long wound sealant market in the US but also increases the overall strength of the LiquiBand® portfolio, as it completes the range of applications available, significantly improving the company’s ability to win new contracts and bundle products.

Evgen Pharma 3.85p £10.6m (EVG.L)

The Clinical stage drug development company developing sulforaphane-based medicines for the treatment of cancer and other indications, announces a collaboration with Prof. Francesco Marampon, of Università Sapienza di Roma (La Sapienza) to investigate potential radiosensitisation effects of the Company’s lead asset, SFX-01. The aim of radiosensitisation is to make tumour cells more sensitive to radiation therapy and through this, to improve effectiveness. SFX-01 is a patented composition of synthetic sulforaphane and alpha-cyclodextrin. Previous studies of the compound have shown an increase in sensitivity of cancer cells to radiotherapy in its presence. This was observed in in vitro and in vivo models of glioblastoma. Results of the study were published in a peer reviewed journal, Pharmaceuticals, in 2021 (Colapietroet al2021). The collaboration with La Sapienza seeks to evaluate the radiosensitisation effects of SFX-01 in a different tumour type and to provide further insights into its mechanism of action. In vitro experiments will investigate the ability of SFX-01 to increase the sensitivity of cells to radiotherapy and allow the use of lower radiation doses. Factors that will be investigated include the inhibitory effects of SFX-01 on cell metabolism, focusing on proliferation, cell cycle distribution and induction of death.

Franchise Brands 139.5p £181.2m (FRAN.L)

The international multi-brand franchise business, provides details of its plans to integrate the Group’s direct labour organisations in the UK following the acquisition of Filta Group Holdings plc in March 2022. The acquisition of Filta allows the Group to offer a wider range of drainage, pump, plumbing and fats, oils and grease management services to commercial customers. In order to maximise the opportunity to grow, the Board believes it is important to streamline the way the Group’s businesses operate and collaborate. As such, the Board has identified advantages to harmonising some of Filta UK’s DLO business with Willow Pumps in order to unlock further market opportunities in the B2B division. There are considerable synergies and opportunities in the range of core services of the two DLO businesses, as well as with the Metro Rod franchise network, in particular pump servicing, drainage and fats oils and grease management. These services are very complementary in terms of the customer base, with significant opportunities to cross-sell the now extended range of services to all existing and new customers. These synergies will provide a number of opportunities to enhance performance and customer service and grow revenue and profits for the enlarged group. In order to realise the efficiencies as quickly and efficiently as possible, without constraints or impediments, the Board has determined that the best course of action is to now buy out the earn-out consideration for the acquisition of Willow Pumps that was agreed in October 2019, rather than wait until the earn-out period ends on 31 December 2024.

Kromek 12.75p £55.1m (KMK.L)

The developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces that it has received an order from a US federal entity for the Group’s D3S-ID wearable nuclear radiation detector. The order is worth $695k and is to be delivered in the coming months. This is a repeat order for the D3S-ID from this customer, following the award of a $1.6m two-year contract in September 2021. The D3S-ID is designed to enable first responders, armed forces, border security and other CBRN experts to detect radiological threats such as dirty bombs, radioactive contamination and smuggling of radioactive substances. It is a wearable gamma neutron RIID (radioisotope identification device) that the Group believes is one of the fastest and most accurate isotope identification devices in its class on the market. Kromek’s D3S platform, comprising the Group’s range of D3S products, is widely deployed as a networked solution to protect cities, buildings, or critical infrastructure.

Marlowe 892p £854.9m (MRL.L)

The leader in business-critical services and software which assure safety and regulatory compliance, announces that it has acquired Cedrec Information Systems Limited, a leading digital platform providing Environmental, Health and Safety data & information, for an enterprise value of up to £3m. Headquartered in Gateshead and established in 1994, Cedrec provides data, information and legislative insights to approximately 1,000 customers who subscribe to its SaaS platform to manage their environmental and health & safety compliance processes. Following the acquisition of Barbour EHS from Informa plc in July 2021, the addition of Cedrec to Marlowe will deepen Marlowe’s EHS Intelligence proposition and further increase the Group’s SaaS Annual Recurring Revenues. In the year to 30 April 2021, Cedrec generated revenues of £1.3m and adjusted EBITDA of £0.45m. Net assets as at 30 April 2021 were £1.2m. The Acquisition consideration consists of an initial payment of £2.4m, and subsequent deferred consideration of £0.6m which will be payable after 12 months based on the completion of certain integration objectives. The Acquisition consideration will be settled in cash and funded from Marlowe’s existing cash resources.

SDX Energy 8.25p £16.9m (SDX.L)

The boards of directors of Tenaz and SDX have reached agreement on the terms of a recommended share-for-share combination between Tenaz and SDX. The Combination is to be implemented by means of a court-sanctioned scheme of arrangement between SDX and the Scheme Shareholders under Part 26 of the Companies Act 2006, with the entire issued and to be issued ordinary share capital of SDX being acquired by Tenaz. Under the terms of the Combination, each Scheme Shareholder will be entitled to receive: 0.075 New Tenaz Shares for each 1 SDX Share. The Combination represents a value of approximately £0.10 per SDX Share based upon the Tenaz TSX Closing Price of C$2.19 per Tenaz Share on 24 May 2022, being the latest practicable date prior to the date of this Announcement. Tenaz is focused on the acquisition and sustainable development of energy assets capable of returning free cash flow to shareholders. Since the recapitalisation of a publicly-traded Canadian entity in late 2021, Tenaz has targeted the acquisition of conventional and semi-conventional oil and gas assets in international markets.

Tekcapital 26.5p £37.5m (TEK.L)

The UK intellectual property investment group focused on creating valuable products from investing in university technologies that can improve the quality of life, announces that it has raised a total of £2m (c.US$2.5m) before expenses, in an oversubscribed placing from existing and new shareholders, by way of the issue of, in new ordinary shares of 0.4 pence each in the Company, at 25 pence per share. The net proceeds of the Placing will primarily be used to accelerate the growth of the Company’s portfolio companies. Key Highlights: £2m (US$2.5m ) before expenses was raised by means of a fundraise through the issue of, in aggregate 8,000,000 Placing Shares at 25 pence per Placing Share. Funds raised will be used as follows: £0.4m to build commercial inventory of MicroSalt and SaltMe crisps, £0.4m to build inventory of wireless chargers for Lucyd Lyte smartglasses, £0.3m to provide CAPEX to enhance Guident’s remote monitoring and control centre with AI software features, the remainder of the funds raised will primarily be for additional working capital.

Tekmar Group 38.5p £23.5m (TGP.L)

The provider of technology and services for the global offshore energy markets announced the award of a significant new contract to provide an integrated engineering solution, including Cable Protection Systems, for an offshore wind farm project in the US. The contract is expected to be delivered in 2023. Alasdair MacDonald, CEO of Tekmar Group, said: “This landmark contract award strengthens our position in the US offshore wind market and represents an important milestone in expanding our geographical presence, a key driver of our growth strategy. The contract builds on our encouraging recent contract momentum, including the Dogger Bank Wind Farm, and highlights Tekmar’s range of in-house engineering capabilities to address complex engineering challenges and de-risk cable protection projects. We look forward to delivering on our part of this project. “

Windward 120p £99.6m (WNWD.L)

The Maritime AI company, announced today that it has partnered with the Sierra Leone Maritime Administration (SLMARAD), an open registry which operates and governs the Sierra Leone flag registry. This is the first flag registry to sign with Windward, representing an expansion into a new area of the maritime industry. SLMARAD will use Windward’s AI-powered platform to screen all existing and incoming vessels in its registry, allowing the administration to maintain a high quality of registrants and ensure the safety of life at sea and protection of the marine environment. Ami Daniel, Co-Founder & CEO of Windward said: “We are excited to work with the Sierra Leone flag registry to improve its screening processes and reputation in the global trade community. The AfCFTA agreement has increased the economic potential of Africa in maritime trade and ensuring the safety and reputation of vessels sailing under African flags is essential to conduct trade on a global scale.”

25 May 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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