Small Cap Feast

7th October 2022

Dish of the day
No Joiners today
Off the menu
No leavers today
Dish Of The Day:
ACG Acquisition Company Limited has joined the Standard Segment of the Main Market.
Off The Menu:
No leavers today.

What’s Cooking In The IPO Kitchen?

Sondrel Holdings plc, a UK founded and headquartered fabless semiconductor business providing turnkey services in the design and delivery of complex, high end ‘application specific integrated circuits’ (ASICs) and ‘system on chips’ (SoCs) for leading global technology brand, intends to join AIM. Anticipated Mkt Cap £48.1m. £20m to be raised. Expected 21 October 2022.

TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validation and sourcing of Lateral Flow Tests on a commercial scale. Due 31 October 2022.

Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed “pure-play” conversational gaming company. Raising between £5-10m. Delayed but due in October.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invests in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. Raising £200m. Expected 12 October 2022.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m. Due 3 November 2022.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late October.


Breakfast Buffet

Abingdon Health 9.25p £11.3m (ABDX.L)

The international developer and manufacturer of high quality and effective rapid tests, notes that a judgement in relation to the Judicial Review proceedings initiated by the Good Law Project Limited (GLP) against the Department of Health and Social Care (DHSC) is expected to be handed down today at 12 noon. Abingdon Health is an interested party in the case. On 28 June 2022, Abingdon Health confirmed that it has reached a settlement agreement with the DHSC on the outstanding invoices payable by DHSC for lateral flow tests and component stock. The settlement agreement is about the settlement of the outstanding debt of £8.9m (excluding interest).

Impax Asset Management Group 565.5p £749.8m (IPX.L)

The specialist investor focused on the transition to a more sustainable economy, provides an update on the development of its assets under discretionary and advisory management (AUM) for the fourth and final quarter of its financial year. On 30 September 2022, the Company’s AUM totalled £35.7bn, an increase of 3.3% for the quarter, which included net inflows of £606m for the quarter. Over the 12 months of the Company’s full financial year, despite total net inflows of £2.9bn, the Company’s AUM fell by 4.1%.

One Heritage Group* 21.5p £8.3m (OHG.L)

The UK-based residential developer focused on the North of England, announces it will publish its results for the full year ending 30 June 2022 in the second half of October 2022. The group continues to experience industry-wide challenges including mounting cost pressures in respect of building materials and sub-contractor labour shortages. Consequently, it is anticipated that there will be an impairment of two of its development projects. Some delays have also been experienced across One Heritage’s development portfolio due to a variety of factors and further details will be provided in the results. One Heritage is particularly well-positioned to satisfy market demand in its chosen sectors, and is confident in delivering upon its business strategy.

Oxford BioDynamics 18.1p £18.2m (OBD.L)

A biotechnology company developing targeted clinical diagnostic tests for immune health based on the EpiSwitch®3D genomics platform, announces that it has conditionally raised £9.1m from institutional and other investors including direct subscriptions at a price of 20 pence per Placing Share. In addition, the Company has proposed an Open Offer to Qualifying Shareholders to subscribe for a maximum of 14,721,991 newly-issued Ordinary Shares at 20 pence per Open Offer Share. The issue and offer price represents a premium of 33% to the closing mid-market price on 6 October 2022.

PureTech Health 220.5p £621.5m (PRTC.L)

A biotherapeutics company dedicated to changing the treatment paradigm for devastating diseases, notes the recent press speculation and confirms that it has exchanged indicative, non-binding proposals with Nektar Therapeutics, Inc. regarding a possible combination (which may include, amongst other things, an offer for share capital of PureTech). PureTech and Nektar remain in discussions regarding the Proposal. There can be no certainty that any firm offer will be made, nor as to the terms of any such offer. A further announcement will be made as and when appropriate.

Rockwood Strategic £14.05 £63.8m (RKW.L)

The investment fund focused on smaller UK public companies provides a trading update ahead of publication of its unaudited results for the six months ended 30 September 2022 (the period). Net Asset Value (NAV) Total Return in the period was -10.4% to 1446.7p/share, compared to the FTSE Small Cap (ex-ITs) of -20.3% and FTSE AIM All Share of -22.6%. Net cash was £2.4m at the end of the period (representing 6.6% of NAV). Management anticipates a number of H2 investee dividends alongside the announced return of capital from Smoove. As the valuation of UK smaller companies have become very depressed, the pipeline of potential investments has grown for the period ahead.

Solgold 17.53p £402.5m (SOLG.L)

SolGold plc and Cornerstone Capital Resources Inc. announce that they have entered into a definitive agreement whereby SolGold will acquire all of the issued and outstanding shares of Cornerstone, other than Cornerstone Shares already held, by SolGold, pursuant to a court-approved plan of arrangement. Cornerstone Shares will be exchanged for 15 SolGold ordinary shares for each Cornerstone common share held. SolGold may elect to pay up to 20% of the consideration in cash, the cash would be pro rated among all Cornerstone shareholders and the number of SolGold Shares issuable to Cornerstone shareholders would be reduced. If, SolGold elects not to pay any portion of the consideration in cash, existing SolGold and Cornerstone shareholders are expected to own 80% and 20% of the combined group.

Time Out Group 36.5p £122.6m (TMO.L)

The global media and hospitality business announces that it has entered into a management agreement with V&A Waterfront Holdings Ltd to open a new Time Out Market in Cape Town. This is Time Out Market’s 6th management agreement and its first location in Africa. There are currently 13 Markets set to be open by 2025 across 8 countries. Under a management agreement, Time Out Market receives a share of revenues and profits (subject to a guaranteed consultancy fee) but does not contribute to the capital cost of the site.

Virgin Wines 5op £27.9m (VINO.L)

The direct-to-consumer online wine retailers announces that it has been officially certified as a Carbon Neutral business, under the internationally recognised PAS 2060 standard. Virgin Wines is the first online wine retailer to achieve this status, as it works towards its goal of becoming Net Zero by 2045, in line with global efforts to reduce greenhouse gas emissions. The certification also comes as Virgin Wines publishes its first sustainability report based on the Science Based Targets initiative (SBTi) framework and will be included into the annual report 2022. Virgin Wines plans to cut its Scope 1 and 2 carbon emissions by at least 43% by 2030.

Zenova Group 14.5p £13.5m (ZED.L)

The provider of fire safety and heat management technology solutions announces that it has entered a sub-distributor agreement with Palatine Paints (Palatine), a paint manufacturer and supplier. Palatine have placed its first purchase order with Zenova and will initially stock ZENOVA primers, ZENOVA IP thermal insulation paint, and ZENOVA FP fire protection paint. Zenova will work with Palatine to provide staff training for products to be sold via Palatine’s UK branches and associated websites.

7 October 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).

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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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