Small Cap Feast

29th September 2022

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Dish Of The Day:
Rockwood Strategic plc has transferred from AIM to the Main Market.
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No leavers today.

What’s Cooking In The IPO Kitchen?

TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validation and sourcing of Lateral Flow Tests on a commercial scale. Due 31 October 2022.

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m. Timing TBC.

Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company’s investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150m. Expected 4 October 2022.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Expected 12 October 2022.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m. Due 3 November 2022.


Breakfast Buffet

Avacta Group 109.5p £279.5m (AVCT.L)

A clinical stage oncology drug company and developer of powerful diagnostics based on its innovative Affimer® and pre|CISION™ platforms announces its interim results for the period ended 30 June 2022. Revenues increased to £5.5m (H1 2021: £1.5m), while the operating loss from continuing operations reduced to £9.0m (H1 2021: £10.2m). During the period the first-in-human Phase I clinical trial (ALS-6000-101) of AVA6000, a FAPα-activated doxorubicin, progressed through the first and second cohorts and initiated the third cohort. The next pre|CISION™ drug candidate, AVA3996, was selected for pre-clinical development with potential for an Investigational New Drug Application in 2023.

Cornerstone FS 7.25p £3.2m (CSFS.L)

The cloud-based provider of international payment, currency risk management and electronic account services to SMEs, announces that further to the Company’s announcement in March 2022 regarding the variation of terms attached to the Convertible Loan note between the Company and Mr. William Newton (BN), yesterday BN assigned to Atlantic Partners Asia (APA), a strategic partner of the Group, the convertible loan instrument originally executed between BN and the Company on 17 March 2021. The Company has given notice to draw down on the Facility and APA has 5 working days to transmit £350k. Upon receipt of funds the Company will contemporaneously issue APA with Loan Notes immediately convertible into 4,375,000 new ordinary shares in the Company at a conversion price of 8 pence per share. The conversation price was amended from the original Facility – reduced from 26.5 pence to 8.0 pence.

Crossword Cybersecurity* 22p £16.6m (CCS.L)

The cybersecurity solutions company focused on cyber strategy and risk announces its unaudited interim results for the 6 months ended 30 June 2022. Group revenue grew by 85% to £1.53m (H1 2021: £824K ((112% higher excluding discontinued operations)), while Annual Recurring Revenue grew by 48% since 31 December 2021 to £1.97m. The loss for the period increased to £1.88m (H1:21 £1.55m). During the period CCS successfully integrated another acquisition, Threat Status Limited. The outlook for 2022 remains at circa 75% revenue growth to £4m and the Company is confident of delivering further revenue growth of 50% in 2023, taking revenue to £6m.

Kibo Energy* 0.185p £5.6m (KIBO.L)

The renewable-energy-focused development company announces that the Company is proceeding with a proposal for an Initial Public Offering to be named Ultimate Sustainable Energy Ltd (USE) in advancing its Corporate Strategy towards significant renewable/clean energy developer status. The IPO will seek to raise sufficient funds to develop the Company’s portfolio of renewable/clean energy generation projects, thereby supporting the Company’s strategic intent to significantly advance and accelerate the development and execution of its sustainable, renewable energy strategy. The Company will seek admission on AIM, with an anticipated fundraise of c. £7-10m.

Light Science Technologies 7.25p £12.6m (LST.L)

The controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group announces that it has received an additional £500k in forward orders from Rentokil Initial plc, which are expected to be fulfilled between November 2022 and March 2023. These new orders are in addition to historical forward order profiles. Additionally, the CEA division has signed two trial contracts for the recently launched sensorGROW product. If successful, these trials could roll into subscriptions and be worth up to £940k in recurring revenues over a 3 year period. The Group is in talks regarding a number of other trials.

Orcadian Energy 34p £22.6m (ORCA.L)

The low-emissions North Sea oil and gas development company announces that after founding the Company in 2013, Greg Harding intends to retire from the Board and will cease to be a director of the Company from the 31st December 2022. Christian Wilms will also leave Orcadian as a non-executive director from 31st October 2022. The board will look to appoint a new independent board member in due course.

Physiomics* 2.2p £2.1m (PYC.L)

A provider of technology-based solutions to predict the effects of cancer treatment regimens for the biopharma industry reported its Final Results for the year ended 30 June 2022. Total income (revenue and grant income) increased 23% to £900k (2021: £730k) and the operating loss increased 6.5% to £359k. The cash balance at 30 June 2022 was £688k, down 34%, as a result of increased marketing activities and hiring further staff. Throughout the period Physiomics’ new business wins included Ankyra Therapeutics, Ducentis BioTherapeutics and Servier. The Company is pleased to have bounced back to its highest ever level of total income for the year ended 30 June 2022 and sees opportunities for the current financial year in both its core consulting business and in personalised oncology.

Rosslyn Data Technologies 1.85p £6.3m (RDT.L)

The provider of a cloud-based enterprise data analytics platform announces that it has secured a 3-year contract worth £500k from a multinational medtech corporation, which is a new customer for the Company. The customer also has an option to extend the contract for a further 2 years.

SolGold 14.75p £338.7m (SOLG.L)

The leading exploration company focussed on the discovery, definition and development of world-class copper-gold deposits announces its Audited Full Year Results for the year ended 30 June 2022. The Group incurred an operating loss of $21.42m (2021: $13.74m) and a loss after tax decreased to US$1.7m for the year (2021: loss US$23m restated). The decrease in the loss after tax is due to the remeasurement of the NSR financial liability, which represents an amortised gain of US$35m for the year ended 30 June 2022. Exploration and evaluation expenditure were US$66.29m. SolGold reported a cash balance of US$26m (2021: US$109 m).

Symphony Environmental Technologies * 15.5p £28.6m (SYM.L)

A global specialist that makes plastic and rubber products smarter, safer and sustainable announces its interim financial results for the 6 month period ended 30 June 2022. Group revenue fell to £3m (H1-2021: £4.9m) due to short term logistics, regulatory and resource issues. The loss before tax increased to £1.4m (H1-2021: £0.6m). SYM expects to achieve a minimum annualised run-rate revenue of £14m between Q4 2022 and H1 2023, through the conversion of a number of active pipeline opportunities. Also announced Symphony Environmental India Pvt Ltd its Indian joint venture with Indorama Corporation in which SYM own 46.5%, has reported a significant increase in sales of d2w. Based on current enquiry and order activity, sales of d2w by Symphony India are expected to increase to levels of over £250k per month from early 2023.

29 September 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.

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