Small Cap Feast

29th June 2023

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John Lewis of Hungerford Plc (JLH.L) has left AIM. 

What’s Cooking In The IPO Kitchen?

Ora Technology plc, a software company developing a digital carbon trading platform, offering users the ability to buy, sell and retire verified carbon credits in the voluntary carbon market, intends to join the AQSE Growth Market. Ora’s platform aims to allow access to carbon assets - and the broader carbon economy - with the goal of reducing the complexity of current industry practices, and an emphasis towards providing a simple and intuitive user experience.

Praetura Growth VCT plc, a newly established VCT announces its intention to float on the Main Market of the London Stock Exchange. The Company will provide growth funding to scalable businesses predominantly based in the North of England, across a range of sectors including technology and healthcare. The Company will be managed by Praetura Ventures Limited, a venture capital and EIS business associated with the wider Praetura Group, a Manchester based venture capital investor and small business lender. The Company is targeting to raise £10m at 1 pence per share, via an offer for subscription. The Directors will have the option to utilise an over-allotment facility that will allow the Company to issue a further 10m Ordinary Shares under the Offer.

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with the YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.) It is rumoured to be valued at between £800m and £1bn with Admission currently expected to occur in July 2023.

Breakfast Buffet

AMTE Power 6.25p £2.3m (AMTE.L)
The UK developer and manufacturer of battery cells for specialist markets, announces that it now anticpates the UN certification of its Ultra High Power Cells in the third quarter of 2023. In the certification testing the Ultra High Power cell met all of the A-Sample target performance requirements; however, due to the identification of a minor manufacturing defect, the certification process of the cells has been halted. Cells from the next production batch, in the third quarter 2023, will now be used to certify the product.

Falanx Cyber Security 23p £1.2m (FCS.L)
The UK-based cyber security company provides a trading update for the year ended 31 March 2023 (FY23). Revenues for FY23 are expected to be c.£3.8m (2022: c.£3.5m) representing organic growth of c.9% year on year. The Group experienced steady growth on PenTest revenues at 5% and strong growth in SOC monitoring revenues, up c.21% from FY22. The business pipeline is healthy and the operating cost base has been reduced to improve financial performance.

Faron Pharmaceuticals OY 241p £153.2m (FARN.L)
The clinical-stage biopharmaceutical company focused on tackling cancers via novel immunotherapies, announces that it has conducted a placement of 2,601,510 newly issued treasury shares (Placing Shares) to raise EUR6.6m at an issue price of EUR2.55 per Placing share. The Issue Price represents a 11.8% discount to the close price on 28 June 2023. The fundraise will be used to accelerate its bexmarilimab development program, with a specific focus on combination trials in hematologic malignancies and to fund the working capital into Q4 2023.

Kibo Energy* 0.0575p £2.2m (KIBO.L)
The renewable energy-focused development company, releases its consolidated financial results for the year ended 31 December 2022. The consolidated results including MAST Energy show a total revenues of £1.04m (2021: £3.2k), operating loss of £10.57m (2021: £24.1m) and loss after tax of £10.9m (2021: £23.1m). The Group has a net debt position of £5.0m (2021: net debt of £404.5k). The Group has proceeded with the joint venture agreement to jointly develop a portfolio of Waste to Energy projects in South Africa with Industrial Green Energy Solutions (Pty) Ltd, which will initially develop a phased c. 8MW project for an industrial client, to be followed by six other projects at different sites, to a total generation of up to 50MW.

Physiomics* 0.98p £0.9m (PYC.L)
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions announces that following on from the company’s WRAP Retail Offer, an additional £25.4k was raised plus additional investor demand through the placing of £20k. This brings the total gross proceeds to £380.5k. The proceeds will be directed towards: further expansion and diversification of the client base; expansion of its consulting business into the adjacent area of pharmaceutical biostatistics services; and exploration of opportunities around its personalised oncology software offering.

Poolbeg Pharma* 8.85p £44.3m (POLB.L)
The clinical-stage biopharmaceutical company focusing on infectious and other prevalent diseases with a high unmet medical need, announces a significant breakthrough in its world first influenza Artificial Intelligence (AI) Programme with CytoReason. Poolbeg’s unique disease progression data from influenza human challenge trials combined with CytoReason’s broad repositories of curated disease data were analysed using CytoReason’s industry-leading AI-led platform. The analysis has led to the discovery of multiple novel drug targets for the treatment of influenza. Identification of drug targets from this unique data-set has previously been successful as p38 MAP Kinase, inhibited by POLB 001, identified as a driver of severe influenza but this required manual analysis that took several years. However, through the utilisation of CytoReason's cutting-edge AI technology, Poolbeg has now identified multiple novel drug targets in just 15 months.

REACT Group 1.35p £14.3m (REAT.L)
The specialist cleaning, hygiene and decontamination company announces its unaudited results for the six-month period ended 31 March 2023. Revenue increased by 82% to £9,320k (2022: £5,125k), as a result adjusted EBITDA up materially to £927k (2022: £162k) and gross margins up at 27% from 23%. Net debt increased to £257k (2022: £43k) an increase of nearly 500%. The Company has won multi year contracts worth £800k to provide services from all three segments of the business. It has further won a £500k 18-month contract with a Midlands based school alongside numerous contract renewals.

Roquefort Therapeutics* 6.75p £8.7m (ROQ.L)
The biotech company focused on developing first in class medicines in the high value and high growth oncology market, made the following statement prior to AGM today: Excellent progress across the portfolio, including further advancement of the in-house development of a platform of novel mRNA cancer medicines and the signing of a strategic license agreement with Randox Laboratories to utilise Midkine antibodies in medical diagnostics. The Company has made positive strides across their preclinical portfolio with its Midkine antibody programme targeting metastatic osteosarcoma which falls under the orphan drug category and carries significant commercial incentives. The in vitro results in the anti-cancer mRNA therapeutic in breast and liver cancer showed significant reduction in cancer growth and migration. The anti-cancer Midkine RNA programme produced >90% in vitro efficacy in human liver and neuroblastoma cancer cells. The Company is giving a presentation via the Investor Meet Platform at 11am on Wednesday 5 July 2023.

R&Q Insurance Holdings 44.9p £168.4m (RQIH.L)
The non-life global specialty insurance company focusing on the Program Management and Legacy Insurance businesses, announces its results for the year ended 31 December 2022. Group’s fee Income (excluding MGA stakes) was $92.0m (2021: $44.9m, a 105% increase). Pre-tax operating loss was $33.3m, impacted by $32.0m of adverse development and the transition to a fee-based revenue model at R&Q Legacy. During the year, the Group completed sale of minority stake in Tradesman Program Managers for $47m at 10x adjusted EBITDA and 3.7x initial investment and has raised $50m of preferred equity from Scopia Capital with the opportunity to raise an additional $10m to increase the capital resource of R&Q Legacy. The Group remains focused on the separation of R&Q Legacy and Accredited, with both showing strong pipelines.

Symphony Environmental Technologies* 7.5p £13.9m (SYM.L)
The specialists in technologies that make plastic and rubber products smarter, safer and more sustainable, provides the following update prior to its Annual General Meeting today at 10.30 am. Symphony's financial performance has sharply improved from 2022. As stated in the preliminary announcement on 30 May 2023, the Board expects Symphony to move back into profitability in the coming months, underpinned by the following: Middle East manufacturing and sales on plan; Administrative annual cost base now set 25% lower than 2022 levels; distribution costs as a proportion of revenues reduced by 50% due to generally lower shipping rates and efficiencies from the Middle East factory. Gross profit margins is expected to be at least 5% higher. The Company is confident in delivering positive updates throughout 2023.

29 June 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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