Small Cap Feast

2nd May 2023

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What’s Cooking In The IPO Kitchen?

Golden Metal Resources Plc a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA intends to join AIM. It was established on 22 April 2021 as a company registered in England and Wales for the purpose of holding all of the Nevada mining assets of Power Metal Resources plc (AIM:POW). The Company holds four mining assets comprising the wholly owned Pilot Mountain, Garfield and Stonewall projects together with an earn-in option over the Golconda Summit project. Each of the projects consists of mining claims located entirely on land managed by the United States Bureau of Land Management. £1.98m total capital to be raised. Anticipated market capitalisation on admission £7.16m. Expected Admission 10 May 2023.

Ashoka WhiteOak Emerging Markets Trust Plc intends to join the Premium Segment of the London Stock Exchange. The Company is a new UK investment trust seeking to achieve long-term capital appreciation through investment primarily in quoted securities that provide exposure to global Emerging Markets and has raised £30.5m through its IPO. Expected Admission 3 May 2023.


Breakfast Buffet

Arrow Exploration 18p £40.2m (AXL.L)
The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announces its Annual Audited Financial Statements and Management's Discussion and Analysis for the quarter and year ended December 31, 2022 and its 2022 year-end reserves report. Arrow recorded $25m of total oil and natural gas revenue, net of royalties (FY 2021: $6.5m). FY 2022 EBITDA of $12.5m (FY 2021: $0.8m), with Q4 2022 EBITDA of $4.5m (Q4 2021: $0.5m). FY 2022 average corporate production was up 223% to 1,345 boe/d (FY 2021: 461 boe/d) with Q4 average corporate production of 1,736 boe/d (Q4 2021: 140 boe/d). At the end of 2022, cash position of $13m. Throughout the period, two wells were successful drilled at Rio Cravo Este (RCE) resulting in material production additions. Two workovers in the RCE-1 and RCS-1 wells at Rio Cravo were completed. These operations targeted additional hydrocarbon bearing zones which resulted in material production additions. Arrow has a fully funded 2023 work program totaling US$32m targeting 10 wells.

Chariot Limited 16.95p £163.3m (CHAR.L)
The Africa focused transitional energy company, announces it has entered into a partnership agreement with Vivo Energy, with the objective of creating a midstream joint venture that will oversee the distribution of natural gas to industrial customers in Morocco. Vivo Energy, a pan-African retailer and distributor of high-quality fuels and lubricants, has a long-standing presence in Morocco's petroleum products' sector, operating a network of over 400 service stations and supplying commercial and industrial customers across a number of sectors in the Kingdom.

Destiny Pharma 34.5p £32.6m (DEST.L)
A clinical stage innovative biotechnology company focused on the development of novel medicines that can prevent life-threatening infections, announces encouraging results from its collaboration with SporeGen Limited, a UK biotechnology company working exclusively on Bacillus and its applications. The collaboration has been partly funded by UK Research and Innovation (UKRI) since September 2020 to co-develop SporeGen's SPOR-COV product as a novel, preventive treatment for COVID-19, influenza and potentially other similar respiratory viral infections. The study results support the original hypothesis that SPOR-COV nasal spray can rapidly stimulate an immune response that primes the human immune system against influenza and coronavirus-type viral threats such as COVID-19.

Kibo Energy* 0.07p £2.1m (KIBO.L)
The renewable-energy-focused development company, provides an update on the progress it has made on its aim to supply solid biofuel as a replacement for conventional coal to various international companies in the manufacturing industry. The Company has recently conducted additional verification testing on selected biomass types through accredited laboratories to determine their performance specifications against specific energy requirements of potential clients as part of an ongoing technical feasibility study. The laboratory tests have yielded better than expected results, demonstrating that the selected biomass types not only match but significantly outperforms conventional coal in many specification categories used in industrial boilers. Kibo are confident that the ongoing feasibility studies will bring further positive results. The Company also announced that Mr. Chris Schutte will be retiring from the Kibo board as of 02 May 2023.

Made Tech Group 20.25p £30.2m (MTEC.L)
A provider of digital, data and technology services to the UK public sector, announces a trading update ahead of the full year ending 31 May 2023. Trading during H2 FY23 has seen improved utilisation levels and continued momentum in Sales Bookings (£75m) and Contracted Backlog (£61m). However, several of the Group's clients have moved the start date of work packages, which had previously been scheduled for April and May 2023, into FY24. As a result of this rephasing, which the Board believes is connected to the new public sector budget year, the Group now expects to report lower than anticipated revenue for FY23 of c.£40m and adjusted EBITDA for FY23 ofat least £1.5m.

Mercia Asset Management 26.5p £118.3m (MERC.L)
The proactive, regionally focused specialist asset manager with c.£1.4bn of assets under management, announces continued inflows into its existing managed funds and successful new fund raises, together totalling c.£80m. The recent inflows across Mercia's managed funds were as follows: Frontier Development Capital continues to grow following its recent acquisition by Mercia, with an additional £30m raised for its FDC Debt LP fund; £18m has been raised by the Northern Venture Capital Trusts; Mercia's latest Knowledge-intensive Impact Enterprise Investment Scheme fund raised £13.6m; The Mercia-managed Northern Powerhouse Investment Fund received £10.3m of additional equity allocation from the British Business Bank; The Mercia-managed Midlands Engine Investment Proof-of-Concept Fund received £8.5m of additional equity allocation from the British Business Bank. As at 31 March 2023, Mercia had £37.8m of unrestricted cash on its balance sheet and no debt.

Plant Health Care 9.23p £28.6m (PHC.L)
A provider of novel patent-protected biological products to help farmers feed the world sustainably, announce its results for the year ended 31 December 2022. Revenue increased 40% to $11.8m (2021: $8.4m), Gross margin improved 200 basis points to 61% (2021: 59%) and adjusted EBITDA loss increased 20% to a loss of $3.7m (2021: loss of $4.6m). Revenue has been driven by the growing demand for Harpinα in North and South America and the successful commercialisation of Saori in Brazil following its launch in 2021. Prospects for 2023 remain positive, in spite of a slow start to the US farming season; other areas of the business have had a good start to the year. Trading is currently in line with market expectations for the full year. Plant Health Care remains on track to achieve annual revenue of $30m by 2025.

SDX Energy 4.85p £9.9m (SDX.L)
The Canadian oil and gas Company, announces that it is partnering with Aleph New Energies (ANE), via a Memorandum of Understanding, to explore and to develop projects in the alternative energy sector. The parties will consider any projects deemed to be alternative energy, including, but not limited to, alternative/noble gases, energy infrastructure, solar, geothermal technologies, energy storage, gas and carbon storage and waste to power. As part of the partnership SDX and ANE will work together to provide technical and commercial support to identify and develop projects; additionally, ANE will provide the financing for such projects.

Synectics 107.5p £19.1m (SNX.L)
The advanced security and surveillance systems provider, provides further information regarding the award of a new casino resort project in Asia. The Company and its long-standing integration partner, Empire Automation, were awarded a contract in December 2022 to provide the surveillance system for Solaire Metro North, a large new-build casino resort in the Philippines, which had been expected to be operational in late 2023. Developed by Bloomberg Resorts, the resort was originally slated to open in 2021, however it is now expected to open in early 2024. Empire Automation has determined the final composition of the solution, and the Company has now received further purchase orders bringing the value of the project to approximately $3m. It is expected that this will be delivered in the fourth quarter of the Company's financial year ended 30 November 2023. The surveillance system supplied by Synectics will comprise over 3,000 channels and incorporating its latest-generation recording solution and cameras.

Totally 20.15p £39.5m (TLY.L)
A provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, announces an update on trading for the 12-month period ended 31 March 2023. The Group anticipates reporting EBITDA for FY23 to be in line with consensus market expectations. At year end, the Company had gross cash of £6.4m (31 March 2022: £15.3m) and net cash of £3.9m. During the last quarter of the period, Totally undertook multiple actions to manage and control costs driven by the high-inflation economy and national workforce challenges, whilst continuing to deliver essential services on behalf of the NHS. These actions will lead to exceptional costs being incurred for FY23 and, to a lesser extent, in the current financial year.

2 May 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged

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