Small Cap Feast

8th December 2022

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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 £323m.  Expected 13 December. 

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

Anglo Asian Mining 87.5p  £100.0m (AAZ.L)

The gold, copper and silver producer focused in Azerbaijan announces drill results at the Gilar deposit confirming over 60 metres of thick and continuous gold and copper mineralisation. The results derive from the final stage of the first phase of vertical core drilling at Gilar. The drilling has demarcated six zones of mineralisation with the latest drilling defining a deeper zone of continuous mineralisation hosting significant gold, copper and zinc values. A project for underground access with a tunnel suitable for production as well as additional exploration is being planned.

East Imperial 3.33p  £11.2m (EISB.L)

The global purveyor of ultra-premium beverages announces the appointment of SUTL Group as the Company's exclusive distribution partner in Vietnam. Under the terms of the partnership, SUTL will supply East Imperial's entire range throughout Vietnam. SUTL has over 50 years of experience in building an extensive network of close relationships in 18 markets across Asia.  The partnership with SUTL will enable East Imperial to continue to build its presence in the luxury hotel and high-end tourism market.

Falanx Group 0.58p  £3.0m (FLX.L)

The cyber security provider announces its interim results for the year ended 30 June 2022 for the six months ended 30 September 2022. Total revenue remained flat at £1.8m (2021: £1.8m). Within this, monthly recurring revenues from monitoring services increased by 29% to £0.49m (2021: £0.38m). The loss from continuing operations increased to £1.48m (2021: £0.71m). Group adjusted EBITDA loss increased to £1.12m (2021: £0.39m) following investment in sales expansion. Cash balances at 30 September 2022 £1.96m (2021: £0.51m). Post period order growth of 44% for core orders in October and November 2022, compared to the same period in 2021. Gross margin improved to 42% (H1 FY23 36% and FY22 40%).

Focusrite 785p  £460.5m (TUNE.L)

The global music and audio products company announces its Final Results for the year ended 31 August 2022. Revenue grew 5.6% to £183.7m (2021: £173.9m), adjusting for acquisitions and constant currency, this is an organic decline of 2.8%. Operating profit fell by 19.8% to £28.7m from £35.8m, and as a result of  global macro headwinds adjusted EBITDA decreased 12.2%. Throughout the period 22 new products were launched across all brands. For the current year, the first quarter trading has finished in line with expectations. Overall demand for the Group's portfolio of products has remained strong.

Galileo Resources 1.43p  £16.5m (GLR.L)

Galileo Resources provides an update on a reconnaissance mapping and sampling programme completed over the Kamativi Lithium Project in southwest Zimbabwe. Galileo has a current interest of 29% in the Project, held through its interest in BC Ventures. The mapping and sampling has identified 4 target zones with potential for pegmatite-hosted lithium, tin and tantalum. The target zones lie along strike extensions or on parallel structures to the Kamativi Tin Mine which contains a JORC (2012) compliant Indicated Mineral Resource of lithium  in tailings of 26.3Mt @ 0.58% Li2O (Lithium Oxide). Confirmed targets will be identified for follow up work which may include drilling.

Mast Energy Developments 2.95p  £6.4m (MAST.L)

The UK-based multi-asset owner and operator in the Reserve Power market announces an update on its Bordesley peaking power project in central Birmingham, which is in early construction stage. The Company has been granted a gas connection route and has also received approval from network supplier, Cadent Gas, for the required pressure and volumes of gas to fuel the Project. Additionally, the Company has concluded an EPC contract optimisation with Clarke Energy, during which it emerged that replacing the currently planned 2 x 2.5 MW Jenbacher engines with 1 x 4.5 MW Jenbacher engine, will be cost efficient and improve overall engine output efficiencies. It is anticipated that Bordesley will be commissioned and revenue generating by Q4 2023, subject to successful completion of the associated funding process.

Mission Group 47p  £42.8m (TMG.L)

The group of digital marketing and communications agencies announces the acquisition of Influence Sports & Media, by its Agency Mongoose, for an initial consideration of £1.5m, to be satisfied by a cash payment funded through the Group's existing cash resources. Under the terms of the Acquisition Agreement, deferred consideration is payable, contingent on Influence's financial performance in 2023, 2024 and 2025. The Contingent Consideration is to be satisfied by the issue of new ordinary shares (up to a maximum of 40% at MISSION's discretion) with the balance payable in cash. In the financial year ended 31 October 2021, Influence reported a gross profit of £1m, pre-tax profits of £0.3m and, as at 31 October 2021, had net assets of £1k.

Mycelx Technologies Corporation 23p  £5.3m (MYX.L)

The clean water and clean air technology company announces that it will end the year trading fully in line with market expectations for 2022. While the year was a challenge primarily because of project award timelines, the Company is poised to continue its progress into next year with its focus on REGEN, PFAS and the Middle East. MYX also announces it has completed a paid trial in the USA with a global integrated energy company deploying REGEN and Polishing Systems as part of the solution to treat oilfield produced water to the stringent specifications required for beneficial reuse.

Seraphine Group 12.2p  £6.2m (BUMP.L)

The digitally led maternity and nursing wear brand announces its interim results for the 26 weeks ended 2 October 2022. Product revenue declined by 12.1% on a constant currency basis to £18.9m (HY22: £20.8m). Product gross profit margin marginally improved during the period. Adjusted EBITDA, reported a loss of £1.5m (HY22: £2.9m) due to a decline in revenue, increased marketing costs and additional overheads following planned investment in senior personnel. Net debt of £3.6m (HY22: net cash £1.3m) with cash and cash equivalents of £3.3m. Trading for the first 9 weeks of H2 has been in line with management's expectations, however the company remain mindful of the current economic environment.

Tern 11.25p  £42m (TERN.L)

The company focused on value creation from Internet of Things technology businesses announces that it has raised £1.5m, before expenses, through a subscription for 15,000,000 new ordinary shares at a price of 10 pence. The Issue Price represents a discount of 14.9% to the mid-market closing price on 7 December 2022. The Subscription has been undertaken with a single institutional investment fund management firm who have subscribed on the understanding that Tern will use part of the net proceeds to repay the outstanding £400k loan facility and retain the benefit of the Wyld Network's AB shares.

8 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.

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.

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