Small Cap Feast

30th November 2023

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What’s Cooking In The IPO Kitchen?

30 November: Flex Labs ITF: a software business engaged in the development of advanced artificial intelligence (AI) middleware products, intending to offer these to business customers through a software as a service (SaaS) model announces its application for Admission to the AQSE Growth Market. Expected AQSE Admission date is on or around the 15 December 2023.

23 November — Substrate Artificial Intelligence ITF: An artificial intelligence Company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health announces its Admission to the Aquis Growth Market. Expected Admission date is on or around the 7 December 2023.

15 November: Afentra Plc ITF: Formerly Sterling Energy plc, and launched in 2021 to support the African energy transition as a independent oil and gas company announces its Admission to AIM pursuant to the Sonangol Acquisition which constitutes a reverse takeover and therefore Admission is being sought as a result of such reverse take-over. The Company will not be raising new capital as part of its Admission. Anticipated market capitalisation on Admission will be c.£65m. Expected Admission date is expected mid-December.

9 November: Chapel Down Group ITF:  England's leading and largest wine producer with an award-winning range of sparkling and still wines, under the Chapel Down brand. The Company owns, leases and sources from 1,023 acres of vineyards in South East England announces its Admission to AIM after its transfer from the Aquis Apex market. The Company will not be raising new capital or providing a secondary offering as part of its Admission. Anticipated market capitalisation on Admission will be c.£75m. Expected Admission date is 7 December 2023.

2 October: Tekcapital announced intention to spin off and IPO: MicroSalt, the developer of salt-producing technology designed to deliver full flavor with less sodium, announces the launch of an exempt public offer of shares to retail investors for up to £2.5m via PrimaryBid as part of its spin out from AIM listed Tekcapital plc (TEK.L). Microsalt announced revenues of US$0.638m in 2022, its first year of retail sales of SaltMe Crisp brand and Microsalt salt shakers in US based supermarkets and through Amazon US. AIM Admission delayed, expected mid-November.

Breakfast Buffet

Ariana Resources 2.45p £28.1m (AAU.L)
The mineral exploration and development Company with gold mining interests in Europe announces a further set of results from the ongoing drilling programme at Salinbas. Completion of resource drilling within the upper Salinbas area resulted in completion of 5,928.8 metres, for 61 diamond holes since January 2023 and 2,006 samples for 1,744.5 metres of drill core are still pending for assay analysis at the Kiziltepe Mine Laboratory. Key intercepts from the latest batch of results include: 1) SALH093: 7.2m @ 9.37g/t Au + 19.6g/t Ag - from 86.2 metres including 1.4m @ 35.02g/t Au + 69.8g/t Ag - from 88.7 metres, 2) SALH092: 6.5m @ 3.69g/t Au + 4.4g/t Ag - from 108.1 metres and 3) SALH102: 11.05m @ 1.56g/t Au + 11.8g/t Ag - from 85.35 metres.

DXS International* 2.75p £1.8m (AQSE: DXSP)
The clinical decision support developer and supplier of clinical decision support systems announces its success in securing £409k of grant funding jointly with Health Innovation East from Innovate UK – the UK’s national innovation agency. The Innovate UK grant will enable DXS to accelerate its efforts in advancing ExpertCare. The funds channeled into intensive research, prototyping, and testing will pave the way for ExpertCare’s ongoing development and route to market. The Innovate UK, DXS and Health Innovation East R&D project (funded for 18- months) will consist of two primary elements: 1) A comprehensive cost-to-benefit analysis in the form of a real-world evaluation led by the Health Innovation East to evaluate ExpertCare's utility within a clinical environment. 2) The development and prototyping of two additional cardiovascular related long-term condition AI algorithms, namely diabetes and hypercholesterolemia, together with common relevant comorbidities.

genedrive 6p £6.5m (GDR.L)
The near patient molecular diagnostics Company announces its audited final results for the year ended 30 June 2023. The loss for the year was £5.2m (2022: loss of £4.7m), R&D spend of £3.9m (2022: £3.9m) and the Company has cash at bank of £2.6m (2022: £4.6m). Genedrive MT-RNR1 ID Test receives positive final recommendation in NICE's Early Value Assessment programme and its MT-RNR1 has commenced rollout in Greater Manchester hospitals. The Company announces its pre-submission process is ongoing with the Food and Drug Administration to determine regulatory process and requirements to place Antibiotic Induced Hearing Loss into the American market.

Global Petroleum 0.068p £0.9m (GBP.L)
An oil and gas upstream exploration Company presently focused on Africa and the Mediterranean announces that it has raised £253k in aggregate before costs through a Placing of new Ordinary Shares at a Price of 0.06 pence per share (Fundraise). The Price represents a discount of 29% to the closing price on 29 November 2023. The primary purpose of the Fundraise is to ensure that the liabilities in relation to the obligations of the Company's Walvis Basin licence PEL94 are completed to pre-agreed timelines set by the Namibia Government.

Microlise Group 97.5p £113.0m (SAAS.L)
A provider of SaaS based transport technology solutions to fleet operators announces that it has reached an agreement to acquire Enterprise Software Systems (ESS), a provider of transportation management system solutions. Under the terms, Microlise will pay an initial £7.65m cash payment and a maximum deferred contingent consideration of £0.85m, payable in cash after 6 months from completion. The vendors will also receive a further £3m from existing ESS cash reserves on completion so that the Company acquires the business on an effective cash and debt free basis. The acquisition is expected to immediately enhance earnings on completion.

Poolbeg Pharma* 9.35p £46.8m (POLB.L)
A biopharmaceutical company focussed on the development and commercialisation of innovative medicines targeting diseases with a high unmet medical need announces that Patrick Ashe, Independent Non-Executive Director, will step down from the Board at the end of November. Eddie Gibson, Non-Executive Director will replace Patrick as Chair of the Audit & Risk Committee and Prof Brendan Buckley, Non-Executive Director will become Chair of the Remuneration Committee.

Proteome Sciences 4.76p £14.1m (PRM.L)
A provider of contract proteomics services to enable drug discovery, development and biomarker identification expects the US laboratory to be operational in the coming weeks and is lining up first customer projects for this laboratory. The Company is also engaged in discussions with several pharmaceutical companies and academic groups regarding single cell proteomics projects and hopes to initiate studies early in 2024. The Company now expects to report reduced revenues for the full year 2023, which will be lower than FY 2022, as a result the Company expects to report a net loss for the full year 2023. In 2024, the Company expects a more positive environment.

SkinBioTherapeutics 18.75p £35.7m (SBTX.L)
The life science business focused on skin health announces that its AxisBiotix-Ps food supplement will launch on on 6 December . The launch of a sales channel through Amazon is a key part of the commercialisation strategy to expand market share for AxisBiotix-Ps. AxisBiotix-Ps first went on sale in the UK in October 2021 and is intended for customers to alleviate sensitive skin conditions such as psoriasis.

Wynnstay Group 372.5p £85.5m (WYN.L)
The agricultural supplies and merchanting group provides an update on trading for the financial year ended 31 October 2023 (FY23). The trading environment in the second half of the financial year was more difficult than the first, with lower farm-gate prices adversely affecting farmer spending patterns. In addition, the seasonally critical final quarter has been impacted by abnormally wet weather. As a result, the Group's results for the financial year are now expected to be below current market expectations. The Board still anticipates that the next financial year will show an improvement over FY23.

Zoo Digital Group 59p £57.7m (ZOO.L)
A provider of cloud-based localisation and digital media services to the global entertainment industry announces its unaudited financial results for the six months ended 30 September 2023 (H1 FY24). Revenues decreased by 58% to $21.4m (H1 FY23: $51.4m) primarily as a result of the Hollywood writers' and actors' strikes. The gross profit decreased by 87% to $2.1m (H1 FY23: $16.5m) and adjusted LBITDA was $7.1m (H1 FY23: EBITDA of $7.3m). The operating loss came in at $10.9m (H1 FY23: $3.8m operating profit), and the Company holds a cash balance of £16.8m at the period end. The Company expects to achieve at least break-even at the EBITDA level in Q4 and return to profitability in FY25 in line with current market expectations.

30 November 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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