Small Cap Feast

7th December 2022

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Attraqt Group delists from AIM following their acquisition from Crownpeak Holdings LLC. 

What’s Cooking In The IPO Kitchen?

Savannah Energy, the AIM-quoted energy company  is undergoing a reverse transaction in connection with the acquisition of Exxon Mobil Corporation's entire upstream and midstream asset portfolio in Chad and Cameroon. No capital to be raised on Admission.  Anticipated market cap £300m.  Expected admission date TBC. 

Celsius Resources, intends to join AIM. Currently ASX listed, Celsius is a natural resources exploration and development company principally seeking to explore and develop potential world-class copper-gold assets in the Philippines and a cobalt asset in Namibia. Amount planning to raise and anticipated market cap TBC. Expected late December 2022. 

Smarttech247 Group, intends to join AIM.  The company is a provider of AI enhanced cybersecurity services providing automated managed detection and response and has raised £3.67m to support its continued expansion into new products and geographies, development of its proprietary technology and for general working capital purposes. Admission is expected to take place on 15  December 2022 under the TIDM S247.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both Publicly Traded and Private companies - c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Date 16 December.

Kistos Holdings intends to join AIM. The Company was incorporated to act as a new holding company for the group companies 0f Kistos plc (KIST), a holding company with the objective of creating value for its investors through the acquisition and management of companies or businesses in the energy sector. Anticipated Market Cap £327m. Expected 22 Dec 2022.


Breakfast Buffet

Altona Rare Earths 7.25p £0.1m (AQSE:ANR)

The mining exploration company  announces it has completed its 2022 Drilling Programme at its Mozambique Monte Muambe Project, on time and within budget. The results of this final stage of drilling has shown new high levels of Rare Earth Elements across all holes where the drilling has intercepted thick, high-grade mineralisation including 60m at 2.66% TREO.

Caerus Mineral Resources 5p £3.1m (CMRS.L)

The exploration and resource development company operating in the Republic of Cyprus announces it has entered into a binding heads of agreement with PM Ploutonic Metals and Indo-European Mining pursuant to which Caerus will transfer its Cyprus assets to Ploutonic and Indo. The transaction marks the end of the Company's direct involvement in Cyprus and reflects its broader strategy to seek larger development opportunities in the battery metals sector that is aligned to or derived from its partnership with EV Metals (EVM). The Purchasers will pay US$528,001 in cash. 

Carclo 12p £8.8m (CAR.L)

In December 2020, Carclo announced the receipt of a ten-year Framework Agreement from a major global OEM for the supply of a range of components for use in their laboratory-based PCR diagnostic systems.  At full production rates these contracts were expected to deliver incremental sales of between £10m and £15m annually for the life of the contract, with the Board's most recent expectation being that production volumes would start building from the last quarter of the current financial year.  The customer has now informed the Group that they no longer intend to proceed into the production phase of the project.

IXICO 27.5p £13.2m (IXI.L)  

The AI data analytics company delivering insights in neuroscience  announces its results for the year ended 30 September 2022.  Revenues were £8.6m (2021: £9.2m) reflects existing and new client contracts partially offset by material client trial cessations (as first announced in March 2021).  Gross margin of 61% (2021: 66%) reflects an increased proportion of revenues relating to early phase trials.  EBITDA of £1.5m (2021: £1.7m) reflects a fourth consecutive year of profitability and is in line with market expectations.  Closing cash of £5.8m (2021: £6.7m), incorporating operating cash inflows of £0.9m (2021: £0.3m) offset by long-term technology investments of £2.2m (2021: £2.2m). 

Molecular Energies 144p £14.8m (MEN.L)

The energy company provides an update on the progress of the plans for the drilling of its Paraguay exploration well.  The spud date for the drilling of the high impact Paraguay exploration well is dependent upon the procuring by the designated drilling contractor of the drilling rig currently in Paraguay. The delay in procurement by the contractor is due to the numerous consents and approvals needed by the current owner of the rig whose parent is emerging from bankruptcy. The company estimate the start of drilling in the latter part of Q1 2023 with mobilisation commencing in the first part of that quarter.

musicMagpie 23.2p £25m (MMAG.L)

The re-commerce business announces a pre-close trading update for the full year ended 30 November 2022. The Group's financial performance for the year is in line with management's expectations.  November saw increased activity culminating in record sales during Black Friday week.  Full year revenue for the Group will be £144.8m (2021: £145.5m) and EBITDA will be in line with management's expectations. Net debt at 30 November 2022 was £8.2m, better than management's prior expectations.  The Group has a £30m committed revolving credit facility to support future growth in the rental service.

Power Metal Resources 1.37p £22.8m (POW.L)

The exploration company announces a drilling update from the Molopo Farms Complex Project targeting a large-scale nickel and platinum group element discovery in southwestern Botswana. The company reports the presence of targeted nickel sulphides from the inaugural drillhole into target area T1-3.  At T1-6, the targeted pyroxenite intervals originally intersected by the 2020/2021 drillhole KKME1-6 have been intersected by the two new follow-up drillholes into this target area. Drill core samples from DDH1-6B are currently at the lab undergoing assay testing. At target area T1-14, the company await the detailed core logging results and the downhole geophysics survey data which recently completed.  

SDI Group 156p £160m (SDI.L)

The AIM quoted Group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing and control applications announces its interim results for the six months to the end of October 2022. Revenue increased by 28.3% to £31.7m (H1 FY22: £24.7m) and Adjusted profit before tax increased by 14.0% to £6.5m (H1 FY22: £5.7m). During the period, the company made two new acquisitions - LTE Scientific Limited and Fraser Anti-Static Techniques Limited.  The growth over the first half of FY23, includes 3.8% organic growth and 24.5% from acquisitions. The company look forward to delivering a full year trading performance in line with market expectations.

Seed Innovations 2.5p £5.3m (SEED.L)

The investment company announces that the unitholders of portfolio company Fralis LLC (trading as Leap Gaming), have entered into a conditional Sale & Purchase Agreement for the sale of the remainder of Leap to existing unitholder IMG Arena US, LLC based upon an enterprise value of EUR14m.  SEED currently estimates that the consideration at completion will be based on an equity value for Leap of approximately EUR12.9m.

Sovereign Metals 24.5p £111.7m (SVLM.L)

The mineral exploration company announces plans to demerge standalone Graphite Projects (being the Nanzeka, Malingunde, Duwi and Mabuwa Projects) into a wholly owned subsidiary, NGX Limited.  The Demerger seeks to unlock the value of the Graphite Projects for Sovereign shareholders and separate its Kasiya Rutile Project and its standalone Graphite Projects into two distinct companies.  The demerger of the Graphite Projects will be subject to shareholder approval and will involve an in-specie distribution to Sovereign shareholders on the basis of 1 NGX Share for every 11 Sovereign Shares.  NGX is proposing to pursue an ASX listing through an initial public offering of NGX Shares pursuant to a prospectus following the completion of the Demerger.

7 December 2022
*A corporate client of Hybridan LLP

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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.

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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.

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