Small Cap Feast

4th December 2023

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What’s Cooking In The IPO Kitchen?

1 December: Investment Evolution Credit ITF: An U.K. registered fintech group that specialise in online consumer loans, announces its application for Admission to the AQSE Growth Market. The Company currently provides online consumer loans in the U.S. under the brand Mr. Amazing Loans and plans to provide online consumer loans in the U.K. under the brand IEC Credit. Expected AQSE Admission is on 14 December 2023.

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

Arecor Therapeutics 190p £58.2m (AREC.L)
The biopharmaceutical group announces a co-development and exclusive licence option agreement with a leading global medical products company for a high-value, ready-to-dilute (RTD oncology product from Arecor's in-house Specialty Hospital pipeline. Under the terms of the agreement, Arecor and its partner will conduct further co-development and regulatory work with Arecor eligible to receive potential developmental milestones. The agreement includes an option for the partner to be granted an exclusive, worldwide license to further develop and commercialise the product, with Arecor eligible to receive milestones and royalty payments.

Avingtrans 385p £126.6m (AVG.L)
The Company that designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors announces that its subsidiary, Magnetica Limited, has signed a new strategic partnership with Televere Systems, LLC, a leader in radiography product distribution. This agreement appoints Televere as the official US distributor for Magnetica's products. Commencing immediately, this partnership was officially unveiled at the RSNA (Radiological Society of North America) 2023 annual event in Chicago. Magnetica is developing state-of-the-art technology using ultra-compact superconducting magnets in an MRI technology that will operate without liquid helium. Magnetica plans to seek FDA clearance for the product by mid-2024.

Barkby Group 6.0p £8.6m (BARK.L)
The UK-based company in real estate, the operator of Barkby Pub and an investor in Cambridge Sleep Sciences, announces its intention to refinance its existing debt facilities, including the £12m debt facility provided by Tarncourt Properties Limited, a vehicle controlled by the Executive Chairman of the Company, Charles Dickson and his family. This facility was revised on 30 December 2022 and interest is paid at a rate of 3.0% over the Bank of England's prevailing base rate, with an expiry date of 30 June 2024. As at 30 November 2023, net cash available to the Company, including undrawn facilities, remains at £2m.

Cornerstone FS 14.0p £8.0m (CSFS.L)
The foreign exchange and payments solutions Company offering multi-currency accounts to businesses and individuals through its proprietary technology platform, provides a trading update. As noted in the announcement of 24 October 2023, Cornerstone was experiencing strong trading momentum, reflecting the advancements made across the business driving year-on-year increases in active customers and average transaction values. As a result, the Group now anticipates reporting revenue and adjusted EBITDA for the year to 31 December 2023 materially ahead of current market expectations.

Deltex Medical Group 0.18p £3.3m (DEMG.L)
The British manufacturer focused on haemodynamic monitoring technology provide a business update and Board changes. In-hospital testing of the new TrueVue monitor has been on-going for the past three months and the feedback is positive. The first in market sale of the new TrueVue monitor was completed at the end of November 2023. In addition, the Company has received initial orders for new TrueVue monitors, which it expects to fulfil over the coming months. Meanwhile, Ben Carswell has joined the Board as a Non-Executive Director with effect from 1 December 2023. He has experience in commercialising Software-as-a-Service (SaaS) platforms for start-ups and established businesses.

Spectra Systems 190p £85.6m (SPSY.L)
The Company that provides machine-readable high speed banknote authentication, brand protection technologies and gaming security software announces that it has entered into a conditional agreement to acquire 100% of Cartor Holdings Limited (Cartor), a security printing company, for a maximum consideration of £10.5m, including £5.5m to be satisfied in cash on completion. The acquisition is expected to consolidate the supply of Spectra's Fusion polymer substrate and increase margins of the polymer substrate business. In the year ended 30 September 2022, Cartor generated an EBITDA of £3m and net assets at that date were £4.9m.

Titon Holdings 80p £9.0m (TON.L)
The manufacturer and supplier of ventilation systems and window and door hardware provides a trading update for the year to 30 September 2023 (FY22/23). The South Korean business has reported a further decline in statutory profitability for FY22/23 due to year-end taxation and provision adjustments, which will increase the Group’s reported FY22/23 loss before tax compared to the Board's prior expectations, once Titon's share of the losses of the Group's associate, Browntech Sales Co. Ltd, are taken into account. Group cash at 30 September 2023 was £2.2m. Trading in the UK and Europe in the first two months of FY23/24 has been in line with the Board's expectations. Titon currently expects the UK and European business to report a loss before tax for H1 FY23/24 due to the decline in new build activity. Titon Korea is expected to remain loss-making in FY23/24, and the Group is taking steps to progress its plan to streamline the Korean corporate structure and operations.

Wishbone Gold 1.95p £5.0m (WSBN.L)
The Gibraltar-based Company engaged in gold, silver and copper exploration announces an update on this year's exploration programme at its Red Setter prospect located in the Paterson Range in Western Australia. The results confirm a significant gold system with a mineralised strike over 3km. The first stage of drilling six holes (as referred to in the announcement of 12 October) to target depths of 400m-500m has been completed. The holes have been pre-collared to depths up to 342 metres with reverse circulation (RC) drilling; the RC rig has now been demobilised. These holes will be completed to their final target depth with a diamond drill rig, with this second stage of the drill programme expected to take place next year.

Woodbois Limited 0.72p £26.5m (WBI.L)
The African-focused forestry, timber trading, reforestation and voluntary carbon-credit Company announces the appointment of Guido Theuns to the role of Independent Non-Executive Director with immediate effect. Guido has a wide range of international business experience gained over 40 years, in particular in investor communications, governmental and commercial negotiations, risk management, IT and investment fund and family office structuring. He Guido will be a Member of the Audit, Remuneration and Nominations Committees.

Zambeef Products 6.25p £18.8m (ZAM.L)
The integrated agri-business Company advises its shareholders that its basic earnings per share for the financial year ended 30 September 2023 is expected to be 306% and 272% higher (in Kwacha and US Dollar terms respectively) than that of the previous financial year. The Company reiterates the guidance provided in the Company's trading update of 7 November 2023. Revenue, gross profit and adjusted EBITDA (all in USD) are expected to be between 5-15% higher than market expectations.

4 December 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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