Small Cap Feast

30th September 2022

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What’s Cooking In The IPO Kitchen?

Milton Capital Plc, a new type of special purpose acquisition company, intends to join the Standard Segment of the Main Market. The directors intend to search initially for acquisition opportunities in the technology sector. The focus for the prospective acquisition is megatrends. This includes sectors such as space, artificial intelligence, machine learning and blockchain technology. Ticker upon admission (MII.L) The Company has raised £1m prior to admission. Expected 4 Oct 2022.

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.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late October.


Breakfast Buffet

Dolphin Capital Investors 3.5p £31.7m (DCI.L)

The real estate investment company announces its interim results for the six months ended 30 June 2022. The total Net Asset Value (NAV) was EUR122.7m, a decrease of EUR3.0m compared to 31 December 2021, principally due to operating, finance, corporate and management expenses. Aggregate debt was EUR18.3m, at the debt to gross asset ratio of 9.7 % (31 December 2021: 9.2 %). During the first nine months of 2022, management has been pursuing divestment opportunities for all of the investment assets other than Kilada and OOKI under construction. For the remainder of 2022, the company aims to complete the sale of its 33.3% stake in OOKI.

EPE Special Opportunities 140p £44.1m (ESO.L)

The investment company focused on small and medium-sized companies in the U.K. announces its intention to commence a share buyback program by using its cash reserves. Due to the current low liquidity in its issued ordinary, on any given trading day the buyback of shares may exceed 25% of the average daily trading volume. Meanwhile, the company is in late-stage negotiations to complete a minority investment of £2.0m into a UK-based, healthy and sustainable premium dog snacks brand. The company’s cash balance as at 31 August 2022 was £26.1m (prior to the proposed new investment). The proposed £2.0m investment would represent 2.7% of the net asset value (NAV) as at 31 August 2022. The investment would have no impact on NAV.

E-Therapeutics 19.25p £99.1m (ETX.L)

The company focusing on integrating computational power and biological data to discover life-transforming RNAi medicines, announces its unaudited results for the six months to 31 July 2022. Revenue was £0.3m (1H: £0.4m). Operating loss was £4.6m (1H21 loss: £3.5m). Post period, the company received the first milestone payment on immune-oncology collaboration with iTeos following successful identification of potential targets. The company indicates that it is on track to achieve further milestone and additional payments in the coming weeks.

ImmuPharma 2.98p £9.9m (IMM.L)

The specialist drug discovery and development company, provides an update on Lupuzor™, following the announcement on 14 September 2022 that its US partner for Lupuzor™ (P140), Avion Pharmaceuticals (Avion), had received a written response from the Food and Drug Administration (FDA) to the Type C meeting. In summary, the FDA recommended assessing the potential to use higher dosing in the next clinical program of Lupuzor™ in Lupus. Since then, both ImmuPharma and Avion, have been reviewing in detail the FDA’s response and recommendations. Further details on the next steps for Lupuzor™ will be communicated to the market, once finalised between ImmuPharma and Avion.

MC Mining 25p £51.3m (MCM.L)

The mining company focused on thermal and coking-coal projects in South Africa, provide its audited results for the year ended 30 June 2022. Revenue was $23.5, up 14%, but the loss after tax was $20.8m (FY2021: loss after tax of $11.8m), primarily due to non-cash charges of $18.3m (including the impairment expense of $14.9m). Unrestricted cash balances at year-end of $3.0m (FY2021: $3.2m). The Industrial Development Corporation of South Africa Limited agreed to extend the repayment date for $9.8m loan plus accrued interest, to 30 November 2022. Meanwhile, the company is expecting to complete the right issue in Australia and South Africa to raise gross proceeds of A$40m in early November.

OPG Power Ventures 7p £28.1m (OPG.L)

The developer and operator of power generation assets in India, announces its results for the year ended 31 March 2022 (FY22). Revenue decreased by 14.66% to £80.1m, primarily due to Covid-19 related disruptions and increased coal prices in the second half of FY22. Profit before tax from continued operations was £13.0m, down 40% (FY21:£21.6m). Net debt reduced from £16.24m in FY21 to £6.9m in FY22, mainly because of the reduction in investments from £29m in FY21 to £5.7m in FY22. Plant Load Factor (PLF) including ‘deemed’ for the five-month period to 31 August 2022 was low at 28.6% as OPG continues to focus on profitability and an optimising PLF with a mix of long term and short term Power Purchase Agreements with the State Utility.

RA International Group 19.5p £33.6m (RAI.L)

The specialist provider of complex and integrated remote site services to organisations globally, announces the award of a new contract to provide operational support capability to the UK Ministry of Defence (MoD). The contract is a five-year global framework agreement which contains two additional option years. The contract ceiling is £35m and will be drawn down as tasks are issued. The contract start date is effective from 1 December 2022.

Rural Broadband Solutions* 2.31p £8.4m (AQSE: RBBS)

The significant provider of high speed broadband to rural areas of Great Britain, announces its unaudited interim results for the six months ended 30 June 2022. Group revenue increased to £688k, up 74% year on year, primarily due to £197k contribution from Cadence acquired in 2021. All other group costs for H1 came to £1.13m (£672k in H1 2021), resulting in a loss after tax of £652k (versus a loss of £401k in 2021). The company is targeting to deploy fibre optic broadband to pass 4,500 homes by the end of 2022. In that announcement in June 2022, CEO Chris New commented that RBBS was looking forward to closing its infrastructure funding. That process is now at a very advanced stage.

Science In Sport 17p £23.6m (SIS.L)

The premium performance nutrition company announces its interim results for the six months to 30 June 2022. Revenue grew by 10% in 1H21 to £32.3m. After a strong start in Q1, the business was impacted by global events and specific one-off events affecting sales and costs. Operating loss totalled £6.9m (1H21: £2.8m). Cash balance was negative £2.7m (December 31 2021: +£4.9m). The company also announces its intention to raise £5m by placing 33.3m new ordinary shares at a price of 15p per share. Net proceeds will be used to buffer against any further economic downturn or unexpected increases in material costs or other costs.

Thor Mining 0.53p £10.6m (THR.L)

The exploration and development company focused on precious, base, energy and strategic metal projects across USA and Australia, provides its audited results for the year ended 30 June 2022. Operating loss was £1.0m (FY21: loss of £2.4m). Cash balance was £1.2m (FY21: £0.8m). The company is currently focusing on progressing its copper, gold, uranium and vanadium projects, while seeking investment/JV opportunities to develop its tungsten assets.

30 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).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

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.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

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MIFID II status of Hybridan LLP research
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