Small Cap Feast

4th July 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
Re-admission of 888 Holdings to the Main Market following the reverse takeover of William Hill.
Off The Menu:
Umuthi Healthcare Solutions has left the Main Market.

What’s Cooking In The IPO Kitchen?

Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their existing bank. Fiinu’s technology arm manages and develops the platform, using open banking, and once the platform is fully operational will also look to develop secondary revenue streams by licensing Fiinu’s intellectual property rights. Capital to be raised £8.01m. Target Mkt Cap c.£53m. Due 8 July.

LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group’s product range is the FER1000 extinguishing fluid, which has been developed by LifeSafe to extinguish five different types of fire: electrical, paper, textiles, cooking oil, and petrol and diesel. The Group’s best-selling product using this patent pending extinguishing fluid is the StaySafe 5-in-1 fire extinguisher. It was launched on Amazon Prime in the UK in August 2021 and subsequently became Amazon Prime’s top selling fire extinguisher in the UK in the same month. In n the year ended 31 December 2021, the Group generated revenues of £670k and a loss post taxation of £1.5m. £3m to be raised. Anticipated Mkt Cap £16.58m. Due 6 July 2022.


Breakfast Buffet

Beowulf Mining 4.3p £35.8m (BEM.L)

The Company has agreed loan financing from a Nordic Institutional Investor of SEK 22m (approximately £1.76m) before expenses. The funding will be used to advance the Company’s projects and achieve key milestones, with the focus being on Kallak. With the award of the Kallak North Exploitation Concession and the appointment of Ulla Sandborgh as CEO of Jokkmokk Iron, this financing builds momentum. It supports the Company’s ambition to have Kallak producing high-quality iron ore products in 2026. Currently, the Company is working with ESG, environmental and engineering consultants on environmental baseline studies and the completion of a Scoping Study timetabled for Q4 2022.

Firering Strategic 6.6p £5.7m (FRG.L)

Firering, an exploration company focusing on critical minerals, announces that it has increased its stake in its flagship Atex Lithium Tantalum Project in Côte d’Ivoire from 51% to 77%. Yuval Cohen, Chief Executive of Firering, said: “We are delighted to have increased our ownership stake at our flagship Atex Lithium Tantalum Project, which we believe has the potential to become a significant lithium resource in West Africa. We are making rapid progress at Atex with the commencement of our 3,000m diamond drilling programme with eleven drill targets identified to intercept the potentially lithium-bearing pegmatite veins – marking a huge step forward in our exploration work. Our heightened confidence is reflected in our decision to increase Firering’s ownership stake in Atex to 77%.”

GRC International 27.5p £29.7m (GRC.L)

The international governance, risk management and compliance company whose main business is cyber defence-in-depth, announces that its IT Governance business is now providing Payment Card Industry (PCI) Qualified Security Assessor (QSA) services in the USA. The business has been authorised to operate in the US and now appears on the PCI Security Standards Council (PCI SSC) website. All businesses that accept payment cards are vulnerable to hackers trying to steal financial information and commit identity fraud. The Payment Card Industry Data Security Standard (PCI DSS) introduced by the PCI SSC, exists to ensure that businesses process credit and debit card payments effectively to protect cardholder data. All organisations that accept, store, transmit, or process cardholder data must comply with the PCI DSS. IT Governance’s new PCI QSA licence means that the business can now extend its Qualified Security Adviser services to the US. It can undertake security audits on organisations that process payment cards and certify that they are compliant with the PCI DSS.

Kibo Energy* 0.1p £2.7m (KIBO.L)

The renewable energy focused development announced that further to the RNS dated 1 April 2022, the Company has agreed a further extension of three months for the Redemption Date of the Convertible Instrument, with all remaining Noteholders. The new extended Redemption Date will now be 30 September 2022. The Further Extension includes Notes in aggregate of £657,985.

Omega Diagnostics 3.3p £7.8m (ODX.L)

Further to the Circular published on the 13 May 2022 indicating that the Group’s CD4 business was being marketed for sale, Omega, the specialist medical diagnostics company focused on industry-leading Health & Nutrition and Global Health products, announces that after receiving a number of indicative offers, the Company has now selected a preferred bidder to acquire its CD4 business. On 2 July 2022, Omega and the preferred bidder signed Heads of Terms in relation to the sale of the Company’s CD4 business, which manufactures and supplies VISITECT® CD4 and VISITECT® CD4 Advanced Disease tests.

Palace Capital 271p £125.3m (PCA.L)

The Main Market property investment company, announces an update from the Board on the strategic options it intends to pursue as part of its commitment to maximising value for shareholders and closing the current share price discount to NAV following the statement made in the Preliminary Results on 14 June 2022. The Group intends to have a pure focus as an ESG driven, regional office market specialist where its expertise can be used to create value from offices with relatively low EPC ratings. In order to execute and finance this strategy, it is proposed that the industrial portfolio, comprising 7 assets, together with an additional property previously classified as a retail warehouse property, will be marketed for sale as a single portfolio. The independent valuation of these properties as at 31 March 2022 was c. £46.5m. £4.5m of non-core disposals since 31 March 2022. Now targeting a LTV limit of 35% and on a normalised basis within the 25%-35% range. The LTV as at 31 March 2022 was 28%.

Sareum Holdings* 207.5p £141.2m (SAR.L)

The specialist drug development company, notes that GSK has completed its acquisition of Sierra Oncology, Inc , the licence holder for SRA737 (a novel Chk1 inhibitor), for US$1.9bn in cash. GSK has noted that the key driver of the acquisition was momelotinib, a drug Sierra is developing for the treatment of myelofibrosis. Sierra submitted a New Drug Application to the US Food and Drug Administration in June 2022 for marketing approval. Following the acquisition, GSK also now owns the licence rights to SRA737, a clinical-stage oral, selective Checkpoint kinase 1 inhibitor that targets cancer cell replication and DNA damage repair mechanisms. Under an amended US$299m licensing deal on SRA737 between Sierra and CRT Pioneer Fund LP (announced 12 November 2020), Sareum is eligible to receive a 27.5% share of any future milestone payments as well as royalties on any future sales. The dosing of the first patient with SRA737 in any new clinical trial would result in a US$2.0m payment from Sierra (now GSK), with 27.5% of this due to Sareum.

Tekcapital 20.3p £30.3m (TEK.L)

The UK intellectual property investment group focused on creating valuable products from investing in university technology that can improve people’s lives, announced that MicroSalt, Inc., the U.S. operating subsidiary of Salarius, Ltd. has provided an update of its commercial activities. MicroSalt continues its rapid expansion in the low salt and sodium markets and is has executed its first bulk B2B MicroSalt order in the US.

WANdisco Name 298.5p £196.5m (WAND.L)

The data activation platform, has won a new Internet of Things contract with a large European automotive components supplier. The Client has entered into a Commit-to-Consume contract which is valued at a minimum of $5m over five years, to replicate over an exabyte of automobile sensor data to the Amazon Web Services’ cloud. The terms of the contract provide that 50% of the $5m will be paid in advance. As it is a Commit-to-Consume contract, revenue will be recognised as the customer moves its data.

Zenova Group 15.8p £14.7m (ZED.L)

The provider of innovative fire safety and heat management technology and products, has commissioned Gardiner Associates Training and Research (GATR) to undertake live demonstrations of its Zenova FP fire protection paint in various environments, including furnished domestic rooms. Taking place in mid-August and early September, those attending the demonstration events will include experts from the insurance sector, fire & rescue services and police services. GATR is Europe’s largest provider of fire investigation training programmes and over the past 25 yrs and have delivered hundreds of theory and hands-on practical courses to thousands of representatives from UK and overseas fire & rescue services, police services, the forensic providers and insurance industry.

4 July 2022
*A corporate client of Hybridan LLP

STAY INFORMED

Our daily digest of news from UK listed Small and Mid caps straight to your Inbox.

Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

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.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute 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 the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.

© Copyright 2022 - Hybridan | Website by Boxed Up Media
First Visit
Legal Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

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.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute 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 the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.

bookcrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram