Small Cap Feast

4th September 2023

Dish of the day
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Dish Of The Day:

No joiners today.

Whilst we were away: 
Friday 25 August: RegTech Open Project PLC (RTOP) joined the Main Market of the London Stock Exchange via a direct listing without raising any monies. RTOP’s Italian owner The AvantGarde group valued the firm at circa £65m on the first day of dealings and shares opened at 111p.

Trackwise Designs has left AIM today.

Whilst we were away:
Friday 1 September: Axiom European Financial Debt Fund left the Main Market of the London Stock Exchange. 
Thursday 31 August: Pelatro plc left AIM. 
Friday 25 August: BlueRock Diamonds left AIM. 
Thursday 24 August: Best of the Best Plc left AIM.

What’s Cooking In The IPO Kitchen?

Announced ITF 18 August: Tribe Technology, a disruptive developer and manufacturer of autonomous mining equipment intends to IPO on the AIM market. The Company plans to raise gross proceeds of approximately £4.59m from a placing and subscription at 10p per new Ordinary Share. A market capitalisation of £22..2m is anticipated upon Admission on 5 September.

Announced ITF 12 July: Substrate Artificial Intelligence, 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, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join the Access Segment of the AQSE Growth Market. Admission delayed.

Breakfast Buffet

Advanced Medical Solutions Group 187.5p £407.3m (AMS.L)
The specialist in tissue-healing technologies announces a trading update for the year ending 31 December 2023. The Company believes it to be prudent to remove the royalty from Organogenesis in its entirety from Q4 2023 guidance onwards. The 2023 full year impact is expected to be a reduction of £2m to adjusted pre-tax profit. In FY24 and FY25, the removal of the royalty is expected to reduce adjusted pre-tax profit by £4m p.a. with a similar pro-rata impact in FY26 until the end of the agreement in September 2026. As reported in the July trading update, the first half was impacted by reduced royalty income from the patent licencing agreement with Organogenesis. In August 2023, Organogenesis announced that changes to US reimbursement coverage for the treatment of diabetic foot ulcers and venous leg ulcers has created uncertainty regarding the revenue outlook for some of its key products, including those utilising AMS patents.

ANGLE 11.75p £30.6m (AGL.L)
The liquid biopsy company with innovative circulating tumor cell (CTC) diagnostic solutions for the research and diagnostic oncology market announced the launch of its Portrait™ Flex CTC assay. The assay is provided as a service from ANGLE's Onc-ADaPT GCP-compliant laboratories and conducted by an expert team with over 10 years' experience in CTC analysis. CTCs captured and harvested using ANGLE's Parsortix technology are subsequently enumerated and characterised with the Portrait Flex assay. Samples are analysed using immunofluorescence staining for epithelial, mesenchymal, blood lineage and nuclear markers, with the opportunity to include an additional biomarker tailored to customer needs.

Arecor Therapeutics 190p £58.2m (AREC.L)
The biopharmaceutical group advancing today's therapies to enable healthier lives announces that its subsidiary company, Tetris Pharma Ltd, has established an exclusive commercialisation agreement with Goodlife, who will act as sole partner for the import, marketing and distribution of Ogluo in the Benelux region. The Zorginstiuut Nederland (the National Healthcare Institute of the Netherlands) has approved Ogluo at the requested price on List 1B and Goodlife is expected to launch the product in the Netherlands during H1 2024.

CleanTech Lithium 54p £57.5m (CTL.L)
The exploration and development company advancing sustainable lithium projects in Chile provides an update on the commissioning of the DLE Pilot Plant. The plant is designed for process optimisation and to produce a purified concentrated eluate that will feed the downstream process to deliver 1 tonne per month of lithium carbonate equivalent. The first of two parts of the DLE columns, and rotary valve, arrived recently at the Company's facility in Copiapó and are being installed. The second shipment, which will comprise an electrical cabinet, pumps and auxiliary equipment, is due to arrive in the coming weeks. Commissioning of the plant is expected to be finalised in Q4 2023.

Lexington Gold 6.15p £20.4m (LEX.L)
The gold exploration and development company with projects in North and South Carolina, United States, announces its unaudited interim results for the six-month period to 30 June 2023. Net loss for H1 2023 from continuing operations was US$0.4m (H1 2022: US$0.37m). The cash position was US$0.28m as at the half-year end (31 December 2022: US$0.42m). Post-period end, the Company announced that it had raised approximately £2.5m (gross) to the proposed acquisition of a 76% interest in White Rivers Exploration Proprietary Limited, which holds interests in a series of significant gold exploration tenements in South Africa's Witwatersrand gold field.

Physiomics* 1.95p £2.6m (PYC.L)
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, announces the hiring of a new member of its senior management team. Effective today, Dr Peter Sargent will be joining the Company as Chief Operating Officer (COO). Prior to joining, Dr Sargent held a senior management role at global consultancy business Syneos Health Inc (NASDAQ: SYNH). The initial focus of the COO role will be to strengthen the operational performance of the Company and in particular drive the key priorities: expansion and diversification of its client base; expansion of its consulting business into the adjacent area of pharmaceutical biostatistics services; and exploration of opportunities around its personalised oncology software offering.

Sareum Holdings* 82.5p £57.8m (SAR.L)
The clinical-stage biotechnology company developing next generation kinase inhibitors for autoimmune disease and cancer, announces the successful dosing of the first subjects in the multiple ascending dose part of its Phase 1a clinical trial for lead programme SDC-1801. SDC-1801 is a dual TYK2/JAK1 kinase inhibitor being developed as a potential new therapeutic for a range of autoimmune diseases with an initial focus on psoriasis. The safety and pharmacokinetics data from the initial cohorts in Part 1 of the trial indicate a favourable profile and fully support oral dosing of patients once daily. Full safety data from the Phase 1a trial are expected to be available during the first half of 2024 and, provided satisfactory results are obtained, a Phase 1b clinical study is expected to commence as soon as possible thereafter in psoriasis patients.

Trident Royalties 41.5p £120.9m (TRR.L)
The diversified mining royalty company announces that it has entered into a binding sale and purchase agreement to acquire an existing lithium royalty from Atherton Resources LLC over projects owned by Anson Resources Ltd. (Anson, ASX:ASN) in the Paradox Basin in Utah, USA. The Royalty notably covers Anson's flagship Paradox Lithium Project. The Royalty is a 2.50% net smelter return (NSR) royalty tied to Anson's ownership of the projects. At spot prices of approximately US$35,000 per tonne of lithium carbonate equivalent, the Royalty would pay approximately US$11m p.a. for the first ten years.

Tristel 340p £16.9m (TSTLL)
The manufacturer of infection prevention products announces that it has submitted its application to Health Canada to approve Tristel ULT as a Class II Medical Device for endocavity ultrasound probes and skin surface transducers. Tristel ULT is a hand-applied high-level disinfectant foam for medical devices and was approved by the United States Food and Drug Administration (FDA) in June this year for use on endocavity ultrasound probes and skin surface transducers. If the application succeeds, this will allow commercial launch during H2 FY 2024 instead of during H2 FY 2025.

Zenova Group 5p £5.3m (ZED.L)
The provider of proprietary fire safety and heat management solutions announces an inaugural order in Greece for its proprietary fire-retardant intumescent Zenova IP paint combined with proprietary thermal insulation for solar panelled roofs of a large international coffee producer with lots of warehouses across the globe. This initial order with a value of £39,800 is important for Zenova for commercial reasons. Solar panels can be seen to add to fire risk to the roof and Zenova's FP paint fire retardant properties can address that concern and make a key difference to insurability.

4 September 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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