Small Cap Feast

5th 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

CML Microsystems 361p £56.1m (CML.L)
A developer of mixed-signal, RF and microwave semiconductors for global communications markets, announces its unaudited results for the six months ended 30 September 2023. Revenue increased by 5% to £10.58m (H1 FY22: £10.05m), profit from operations, excluding the £0.30m of external costs incurred in this half relating to the MwT acquisition, increased by 9% to £1.90m (H1 FY23: £1.75m). The Company holds a cash balance at period end of £20.95m. Post period end, the Company successfully completed the MwT acquisition on 2 October 2023, expanding the Group's product portfolio and complementing existing R&D capabilities.

Iomart Group 157.4p £176.6m (IOM.L)
The cloud computing company announces that it has agreed to acquire the entire issued share capital of Accesspoint Group Holdings Limited, the holding company of Accesspoint Technologies Limited. The initial consideration for the Acquisition is £4.5m paid in cash on completion on a debt and cash free basis, with a potential further £0.5m in cash payable on the achievement of certain post-acquisition milestones. The Acquisition also includes up to a further £1.4m contingent earn-out payment based on the profitability of Accesspoint for the 12 months ending 31 August 2024. The Acquisition will be financed through a combination of existing bank facilities and cash. The Acquisition provides Iomart with industry expertise and a highly capable team with a strong reputation within the legal sector.

IXICO 14.5p £7.0m (IXI.L)
The medical imaging advanced analytics company delivering insights in neuroscience, announces its results for the year ended 30 September 2023 (FY23). The Company announced revenues of £6.7m (2022: £8.6m) a decrease of 22% caused by the slower pace of new client contract wins. As a result, EBITDA loss of £0.8m (2022: £1.5m profit), and the company holds a closing debt-free cash balance of £4.0m. The Company completed its PET analysis of the landmark 1,000 participant BioHermes study for the Global Alzheimer's Platform (GAP) and announced £8.0m in new contracts won across 6 therapeutic areas. The Group has delivered financial earnings in line with market expectations.

Northern Bear* 61.5p £11.5m (NTBR.L)
The holding company of the group of companies providing building and support services headquartered in Northern England and serving customers across the UK, provide the following update in respect of the Tender Offer. Further to its announcement on 29 November 2023, the aggregate number of Ordinary Shares validly tendered by Qualifying Shareholders was 7,831,399 and exceeded the Tender Cap of 5,000,000. As such, the Company will, on average, repurchase 63.8 per cent. of every valid tender received. Accordingly, a total of 5,000,000 Ordinary Shares will be purchased by the Company pursuant to the Tender Offer on 8 December 2023, returning a total of £3.1m to shareholders of the Company. The Ordinary Shares purchased will be held in treasury.

Reabold Resources 0.118p £11.7m (RBD.L)
The oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, announce that it has been informed that the next tranche of the payment from Shell U.K. Limited (Shell) for the sale of the entire issued share capital of Corallian Energy Limited, will be distributed to former Corallian shareholders from today. Reabold will receive £5.2m for the second tranche, which follows the £3.2m received by the Company on 1 November 2022. The final consideration payment, of £4.4m, will be received upon the NSTA granting development approval for the Victory gas field, which is anticipated to occur within the coming months. The proceeds received aim to advance the development of assets across the Company’s portfolio.

Sancus Lending Group 0.5p £2.9m (LEND.L)
The alternative finance provider, offering borrowers fast, bespoke bridging and development finance, announces that it has entered into a joint venture agreement with Hawk Lending Limited to form a new property alternative finance lender (trading as Hawk) and debt advisory business focused on serving international clients with Jersey presence. Under the terms the new Hawk businesses will be equally owned by Sancus Group and Hawk Group. Funding for the Joint Venture's lending operations will be provided by a combination of funding sources including a £30m facility provided by the Morton Family, existing and new loan notes, and other institutional sources of funding, including the Sancus Group's £125m facility with Pollen Street Capital.

Solid State £13.4 £151.8m (SOLI.L)
The component supplier and design-in manufacturer of computing, power, and communications products, announces its interim results for the six months ended 30 September 2023. Revenue increased 48% to £88.1m (H1 2022/23: £59.4m), as a result, profit before tax increased 45% to £6.1m (H1 2022/23: £4.2m) and the Company’s net cash flow from operating activities increased 1560% to £8.3m (H1 2022/23: £0.5m). The Company reported that they have a robust orderbook of £108.6m at 31 October 2023 combined with a strong prospect pipeline, provides the Directors confidence in meeting full year consensus analyst expectations.

Surgical Innovations Group 0.9p £8.4m (SUN.L)
The designer, manufacturer and distributor of innovative technology for minimally invasive surgery, announces that Keyvan Djamarani has been appointed as Independent Non-executive Director with immediate effect. At the same time Nigel Rogers, who previously served time as Chair of the Company, will step down from the Board. Keyvan has over 30 years' relevant experience, holding numerous leadership roles in product development within manufacturing organisations covering medical and pharmaceutical drug delivery devices.

TPXimpact Holdings 39p £35.9m (TPX.L)
The technology-enabled services company focused on people-powered digital transformation, announces its interim results for the six months ended 30 September 2023. Revenue was up 22% to £41.6m (H1 2023: £34.1m), as a result, adjusted EBITDA of £2.0m (H1 2023: £0.9m) and adjusted EBITDA margin increasing to 4.8% (H1 2023: 2.6%). Reported operating loss of £(9.0)m (H1 2023: £(3.9)m), after including £5.6m (H1 2023: £Nil) non-cash goodwill impairment charge and the Company holds net debt (excluding lease liabilities) as at 30 September 2023 of £12.8m. TPXimpact continues to trade in line with the targets announced at the beginning of FY 2024 and expects to deliver revenue in the range of £80-85m and adjusted EBITDA in the range of £4-5m for the full year.

ValiRx 12.25p £12.5m (VAL.L)
A life science company focusing on cancer therapeutics and women's health, announces that ValiSeek Limited, has entered into an exclusive Option Agreement to license VAL401 with Ambrose Healthcare Limited, a private UK specialist pharmaceutical company. Under the Option Agreement, Ambrose Healthcare has a 12-month period of exclusivity under which it may exercise the option to execute a global, exclusive license of Valiseek's VAL401 asset under pre-agreed terms. ValiSeek has received an undisclosed, small fee, settled through the issue of shares in Ambrose Healthcare. Subject to the exercise of the Option by Ambrose Healthcare, the agreement details clinical and commercial milestone payments to be made to ValiSeek totalling a value of up to £16m plus royalties.

5 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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