Small Cap Feast

29th June 2022

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What’s Cooking In The IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July.

Visum Technologies seeking admission to The AQSE Growth Market. The Company’s business is to own and operate an “on-ride” video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June.

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Due early July 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

Asiamet Resources 1.58p £30.6m (ARS.L)

Due diligence undertaken by PT Delta Dunia Makmur Tbk. (DOID) including the first phase diligence by a bank recommended Independent Technical Expert (ITE) has been completed for the BKM copper project, located in Central Kalimantan, Indonesia. Key highlights of this process include: DOID has completed an extensive due diligence process on the BKM copper project; no project ‘red-flags’ indicated from the ITE following provision of independent report to the Company and DOID; and DOID continues to be a very supportive shareholder and is working with the Company on finalising next steps with respect to advancing the BKM project to development.

Atome Energy 99.5p £32.3m (ATOM.L)

AGM Trading update from the international company focused on green hydrogen and ammonia production, sales and marketing with current projects in Iceland and Paraguay. ATOME continues to make good progress on all of its projects. In particular: Following the signing of the 60MW power purchase agreement for its Villeta Project, ATOME, working in conjunction with its appointed Owner’s Engineer, is targeting the following milestones for its Villeta project appointing FEED contractor by Q3 2022; FEED completion by Q4 2022; Final Investment Decision by end of 2022; and the commencement of construction works phase by H1 2023. ATOME is upscaling its Itaipu/Iguazu project to 300MW (an increase of 50MW) and is in substantive discussions with relevant stakeholders. The Company is also in advanced discussions with offtakers, with firm interest shown in all of ATOME’s prospective Paraguay production. The Company is on the ground in Iceland, in detailed discussions with all the major power providers, and is receiving broad political support for Green Fuel’s hydrogen and ammonia projects. ATOME’s new mobility division is progressing on track with its first 1MW electrolyser currently being built in the UK and scheduled for delivery as anticipated at or around the turn of this year, with first revenues projected in H1 2023.

Crossword Cybersecurity* 28p £21.1m (CCS.L)

The cybersecurity solutions company focused on cyber strategy and risk updated the market on progress on its acquisition strategy. Crossword’s strategy is to continue building on its organic revenue growth and to acquire outstanding cyber security companies that complement and diversify its revenue base. Following the successful integration of three acquisitions since May 2021, Crossword is seeking to acquire a number of companies that will help drive Crossword’s growth ambitions. Following a market mapping exercise, early-stage discussions are being held with a number of candidates that are leading to positive conversations currently taking place. There is no guarantee that any acquisition will proceed but conversations are progressing with target companies.

D4t4 Solutions 242.5p £97.4m (D4T4.L)

The data solutions provider announced two new contracts, demonstrating the versatility and breadth of the Group’s Celebrus CDP and FDP products. The first contract is the sale of Celebrus CDP to a US-based health and financial services group. This sale has been made direct to a new customer for D4T4, though the process has been in close cooperation with a key partner. The second contract is the upsell of Celebrus FDP biometrics functionality to an existing Celebrus CDP customer which is a UK-based online retailer with 2.2 million daily website visits. The two contracts have a combined total contract value of just over £1m and Annual Recurring Revenue of just over £0.3m per annum.

Lords Trading 77p £121.3m (LORD.L)

AGM statement from the distributor of building materials in the UK. Since the full year results on 24 May 2022, demand for the Group’s repairs, maintenance and improvement sector focused product offering has remained resilient and, notwithstanding inflationary pressures and the current macro outlook, the Group continues to trade in line with market expectations for the full year ending 31 December 2022. The Group has further evidenced its three P’s strategy (People, Plant, Premises) via the complete redevelopment and transformation of the Lords Builders Merchants branch in Beaconsfield, gaining additional scale, increasing reach and broadening the product range. “Current FY22 revenue and profitability expectations remain unchanged from the April trading update, with revenues of approximately £438.0 million and adjusted profit before tax of approximately £16.0 million.”

MTI Wireless Edge 63.5p £56.2m (MWE.L)

The technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, announced that its Distribution & Professional Consulting Services division has secured two orders totalling US$0.85m, to be delivered in 2022. The two orders were won by P.S.K. WIND Technologies Ltd. The Group acquired 51% of PSK in January 2022. PSK specialises in the development, manufacture and integration of communication systems and advanced monitoring and control systems for the Government and defence industry market. The orders are from a returning customer for the design and manufacture of portable platforms.

One Heritage Group* 15p £4.9m (OHG.L)

The UK-based residential developer focused on the North of England, has signed an agreement with One Heritage Property Development Limited (OHPD) that sets out the formal relationship between OHPD and the Company. The Board keeps corporate governance under continuous review and the signing of the Relationship Agreement was undertaken as a result of the Board’s ongoing commitment to continually improve the corporate governance in the Company. OHPD is the Company’s majority shareholder, holding 63.8% of the issued share capital in the Company. It also shares a common director in Yiu Tak (Peter) Cheung and provides One Heritage with a £7.5m loan facility.

Oriole Resources 0.19p £3.8m (ORR.L)

The exploration company focussed on West Africa announces that all of the Company’s Directors have now entered into a Salary Sacrifice Scheme to complement the £340k placing announced earlier today. Between June and September 2022, the Board has committed to a Salary Sacrifice Scheme covering £96k of gross salaries, providing additional working capital with which to advance the Company’s assets in Cameroon. The reduction in Company expenses will enable reallocation of cash towards advancing the Company’s exciting exploration assets in Cameroon and thus supplement the Placing announced earlier today.

Symphony Environmental Technologies* 18.75p £33.1m (SYM.L)

Symphony Environmental Technologies provided an update prior to its AGM to be held today at 12.00 noon. The company updated on its strong and growing momentum in the commercialisation of its pipeline, successful government advocacy, and progress with important product certifications, all contributing to create a strong portfolio of environmental and health technologies. Key highlights including the win of their first d2p supply agreement in relation to their d2p enhanced bread packaging which follows US FDA approval in July 2021 and Canada Health approval in September 2021. This agreement with Grupo Bimbo, the western world’s largest bread manufacturer, follows extensive trials and nearly a two year period of evaluation. Symphony has agreed to supply its d2p antimicrobial masterbatch to Grupo Bimbo’s nominated bread packaging manufacturers across the whole of the American continent for a period of three years. As in previous years, the Company intends to provide a trading update around mid-July.

XP Factory 19.25p £28.9m (XPF.L)

XP Factory , a group of leading UK experiential leisure businesses operating under the Escape Hunt™ and Boom Battle Bar™ brands, updated on trading ahead of its AGM. A further two Boom sites have opened in June 2022. The newest owner-operated site opened in Manchester and a further franchise site opened in Ealing. The Boom estate today comprises 17 sites of which four are owner operated and 13 are franchised. XPF also commenced build on a further two Boom sites. There are currently, in aggregate, six Boom sites in build; three of which are to be owner operated and three will be franchised. Eight Boom sites are in the advanced pipeline with more than 20 other Boom sites under active consideration, underpinning a strong pipeline. Boom franchise sites are performing in line with the Board’s expectations, providing further confidence in the concept and commercial model. Escape Hunt owner operated sites have continued to perform well. The UK owner operated estate traded ahead of the Board’s expectations in Q1 2022 and has performed in line with expectations to date in Q2 2022. A new owner operated Escape Hunt site opened in Exeter in April 2022, co-located with Boom. Three further owner operated Escape Hunt sites are in build in Edinburgh (co-located with Boom), Norwich and Bournemouth.

29 June 2022
*A corporate client of Hybridan LLP

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The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

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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In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

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