Small Cap Feast

3rd June 2024

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Dish Of The Day:


The shares of Zegona Communications (ZEG.L) have been readmitted for trading on the Standard Segment of the Main Market, following the reverse takeover of 100% of Vodafone Spain for EUR5bn.


Whats baking in the oven?

Potential**** Initial Public Offerings:

ITF announced:

22nd May: Raspberry Pi announces an intention to float onto the Premium listing segment of the Main Market. Raspberry Pi is a designer and developer of high-performance, low-cost single board computers and compute modules for industrial IoT customers and embedded uses, as well as for enthusiasts and educators, in markets worldwide. The Company is looking to raise $40m, the net proceeds of which will be used by the Company for engineering capital expenditure, to enhance its supply chain resilience and for other general corporate purposes. The Group's revenue was $140.6m, $187.9m and $265.8m and gross profit was $41.9m, $42.3m and $66.0m in the years ended 31 December 2021, 2022, and 2023, respectively.

Media speculation:

2nd June: Online fashion firm Shein from China is preparing to file a prospectus ahead of a potential London float which could value it around £50bn.

Reverse Takeovers:

Change of Market:

Dual Listing :

Banquet Buffet

Deltic Energy 12.75p £11.9m (DELT.L)

The natural resources investing Company with a portfolio of operated and non-operated exploration and appraisal assets in the UK North Sea provides an update in relation to Licence P2252 and the Pensacola discovery. Deltic has been granted a short period of additional time from Shell UK Ltd, in its capacity as Licence Operator of P2252, which will allow Deltic until 12 June to progress discussions with potential counterparties in relation to a possible transaction. There is however no guarantee that discussions will be concluded successfully within that timeframe and, in such circumstances, Deltic will be required to withdraw from the Pensacola licence and transfer its interest in Pensacola to its Joint Venture partners. The Company will make further announcements in due course.

GENinCode 7.75p £13.7m (GENI.L)

The predictive genetics Company focused on the prevention of cardiovascular disease and risk of ovarian cancer announces its audited final results for the twelve months ended 31 December 2023. Revenues increased 51% to £2.2m (2022: £1.4m), driven by core test growth in the UK and Europe. The adjusted EBITDA loss was £6.7m, (2022: loss of £5.6m) reflecting increased investment in the international commercialisation. Cash reserves was £2.5m at 31 December 2023, and an equity raise of £4.0m was completed post period. The Company has recently recognised first revenues in the US market and generally April 2024 YTD consolidated revenues were 37% higher than same period in 2023.

ImmuPharma 2.545p £10.6m (IMM.L)

The specialist drug discovery and development Company announces that it has realised gross proceeds of c£1.5m on the sale of its entire holding of c9.9m shares in Incanthera plc. Following this transaction, ImmuPharma retains c7.3m warrants in Incanthera which have an exercise price of 9.5p and exercise expiry date of 6 September 2024.

Invinity Energy Systems 22.25p £98.04m (IES.L)

The global manufacturer of utility-grade energy storage announces that it has leased an additional manufacturing facility in order to meet the growing demand for long-duration energy storage in the UK. The 26,000 sq. ft (2,415 m2) facility located in Motherwell, North Lanarkshire is c.6 times the size of the Company's existing facility in Bathgate, West Lothian and is expected to increase the Company's UK assembly capacity to over 500 MWh per year. This manufacturing expansion is in line with Invinity's growth strategy set out as part of the successful £57m fundraise which completed on 24 May and included a £25m investment into Invinity by the UK Infrastructure Bank.

Physiomics* 1.3p £1.8m (PYC.L)

The mathematical modelling and data science Company announced last Friday that Dr Christophe Chassagnole would step down as a Director of the Company and as Chief Scientific Officer (CSO), effective 31 May 2024. The Company does not intend to recruit a replacement for the role of CSO as it continues to focus on expenditure directly linked to revenue generating positions. Physiomics will enter into a consulting agreement with Dr Chassagnole that would enable it to continue to take advantage of his expertise following the end of his formal employment. In addition, the Company has entered into an IP Licensing Agreement with Dr Chassagnole under which certain systems biology models and software, no longer used or commercialised by the Company and unrelated to its Virtual Tumour software, will be licensed on a non-exclusive basis to a company set up and owned by Dr Chassagnole. Under this agreement, Physiomics will receive a 2-5% royalty on any gross sales that may be derived from this IP up to a maximum amount of £75k p.a.

Powerhouse Energy Group 1.85p £77.1m (PHE.L)

The Company pioneering integrated technology that converts non-recyclable waste into low carbon energy announces its audited results for the year ended 31 December 2023. Revenue was £181k (2022: £380k), the operating loss (pre-exceptional items) in 2023 was £1.8m (2022: £2.1m) as a result of significant savings in administrative expenses and cash at bank was £4.34m (2022: £5.9m). The manufacturing of the 2.5 tonne per day kiln for the Feedstock Testing Unit (FTU) has been completed. Completion of the FTU is expected towards the end of the year which will allow the Company to accelerate the development of commercial applications for its technology.

Power Metal Resources 19.0p £21.1m (POW.L)

The exploration Company with a global project portfolio announces that it has entered into a legally binding subscription agreement with ACAM LP pursuant to which it will invest £2m in Power Metal by way of a loan note with warrants. Furthermore, the Company has entered into an eight-week exclusivity period and a non-binding term sheet with ACAM with the intention of forming a uranium-focused joint venture involving Power Metal's entire portfolio of uranium licences. It is currently intended that ACAM, or an affiliate, will make an initial equity investment of £10m into the Company's wholly owned Canadian subsidiary company, Power Metal Resources Canada Inc (PMC), for a majority interest in PMC of 70%. The Company will potentially receive an additional cash payment of up to £4m.

SysGroup 35p £17.1m (SYS.L)

The technology partner for delivery and management of cloud, data and security to power Artificial Intelligence and Machine Learning transformation, announces the appointment of Davin Cushman as Non-Executive Director, effective 10 June 2024. Davin has over 25 years of experience within the technology industry. He served as CEO at Ignite Technologies, an enterprise software company, where he completed over 40 mergers and acquisitions during his decade-long tenure. Subsequently, he founded Brightrose Ventures to advise, acquire and operate software companies, with a later $100m commitment from Brentwood Associates for software acquisitions. Davin has an undergraduate degree in Politics from Princeton University and a MBA from Kellogg at Northwestern University.

Tower Resources 0.016p £2.7m (TRP.L)

The Africa-focused energy Company announces its audited results for the 12 months ended 31 December 2023. The loss for the year after taxation was $0.5m (2022: a loss of $1.0m), primarily due to a VAT release of $1.2m. Cash and cash equivalents were $20,633 as at 31 December 2023, prior to receipt of subscription proceeds. A subscription at a share price of 0.02p per share to raise £600k was announced in December 2023, with proceeds receivable in January 2024. The execution of a contract with Borr Drilling Limited for the hire of the Norve jack-up rig has also been announced. This is one of Borr's fleet of high-specification drilling units to drill the NJOM-3 well on Tower's Thali license in Cameroon in 2024.

Zephyr Energy 5.35p £93.7m (ZPHR.L)

The Rocky Mountain oil and gas Company focused on responsible resource development and carbon-neutral operations provides an update on the State 36-2R LNW-CC well (the State 36-2R well) at its project in the Paradox Basin, Utah. Drilling will shortly commence on the final section of the State 36-2R well. The objective for this short section is to land the well safely within the Cane Creek reservoir and drill the remaining 320 feet (of which 270 feet will be drilled horizontally within the reservoir) to intersect both the reservoir and the productive natural fracture system encountered by the State 36-2LNW-CC well. After reaching total depth and setting a production liner, the drilling rig will be demobilised and the well will be prepared for production testing.


3 June 2024
*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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