Small Cap Feast

8th February 2022

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What’s Cooking In The IPO Kitchen?

Following Nvidia’s decision to walk away from its planned US$40bn takeover of Cambridge-based chip designer Arm from Japan’s Softbank, after regulatory hurdles proved insurmountable, speculation is growing over a potential return to the London Markets.

GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended will carry on business as a Real Estate Investment Trust, subject to meeting the necessary qualifying conditions. The Company will invest, predominantly, in independent Co-Living Asset, both operational and under development, let to a diversified mix of residents, located in urban centres in the UK and Ireland where there is a shortage of high quality, affordable residential accommodation. Due March.

Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb.

Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.

Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Due Early Feb.

Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Feb.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £10.7m. Expected admission 9th Feb.

Spiritus Mundi due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector. The Company has already raised approximately £1.2m in a pre-IPO fundraising round. Delayed until second half of Q1 2022.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due early Q1 2022.

Nu-Oil and Gas to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and become Guardian Global Security plc and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Due early Feb.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in. Delayed until Mid-Feb. Mkt Cap and Capital to be raised TBC.


Breakfast Buffet

Aquis Exchange 575p £158.2m (AQX.L)

The exchange software licensing arm of Aquis Exchange PLC, announced a partnership with the neo-exchange for value-driven investment funds, Investre. Investre is building an exchange where retail customers can buy and sell values-driven investment funds-either direct from the asset manager on the primary market, or by trading with other users through an auction process on the secondary market. Aquis is providing the technology to power the secondary market, by supplying a fully outsourced technology model to Investre consisting of its award-winning Aquis Matching Engine, its Aquis Market Surveillance product, as well as ongoing operational support to the business. The duration of the contract will be three years, and the value of the contact will not be disclosed. The partnership will allow for the trading of tokenised, actively managed funds, namely UCITS funds, with launch planned for 2022. This partnership is a significant milestone for Investre, the fintech behind this innovation.

Beeks Financial Cloud 170p £95.7m (BKS.L)

The cloud computing and connectivity provider for financial markets, announced the signing of a £2.5m contract extension over three years with an existing Tier 1 customer. The contract is for the provision of private cloud services into an additional geography. This follows the announcement last week of a $2.2m contract for the Group’s Proximity Cloud, bringing the Total Contract Value of deals signed in the current quarter to over $6m – a record for the Group and evidence of the momentum behind Beek’s specialist cloud offerings for financial markets.

Bidstack 3.55p £33.1m (BIDS.L)

The native in-game advertising group, announced that Glen Ames has been appointed as Chief Technology and Product Officer. Glen is a global product and technology advisor with over 25 years of experience. He has spent 20 years in California’s Silicon Valley, working at major technology companies including Nortel, Yahoo, AOL, AT&T and Turn. Glen has also worked with early-stage businesses, having sold two start-ups and worked for several pre-IPO high growth companies. He has 12 patents to his name. More recently Glen spent five years as CTO/CPO at Captify Technologies, a fast-growing digital media business with the largest independent publisher network in Europe. Under Glen’s leadership, Captify built strong product, data analytics and engineering teams across multiple regions. As a result of his influential profile and track record of building highly scalable companies with innovative data systems, Glen was recommended to the Board to provide Bidstack with product and technology consultancy. The Board is pleased to have evolved this to a full-time appointment as the Company reinforces its capabilities for platforms and publishers. Glen’s appointment, which is not a board position, will allow Francesco Petruzzelli, Bidstack’s current CTO, to move to the position of Managing Director focusing on the Group’s relationships with key customers, including ensuring that its relationships with Azerion and key publishers continue to flourish.

CAP-XX 5.65p £27.7m (CPX.L)

The manufacturer of ultra-thin prismatic and cylindrical supercapacitors, announced that MCCI Corporation, a leading open-source developer for LoRaWAN® long-range wireless IoT networks, has selected the ultra-thin CAP-XX HW103 1Farad 2.75V supercap for its Model 4906 Supercap FeatherWing LoRa Module. MCCI chose the CAP-XX supercapacitor for its thin form factor that fits easily in the Adafruit-Feather-compatible footprint, and for its low Equivalent Series Resistance which enables the high bursts of power needed for LoRa wireless data transmissions in both consumer Internet of Things and industrial IoT devices such as remote monitoring sensors. LoRa® technology enables long-range transmissions with low power consumption.

Destiny Pharma 90.5p £54.6m (DEST.L)

Destiny Pharma plc, a clinical stage innovative biotechnology company focused on the development of novel medicines that can prevent life-threatening infections, has received positive Scientific Advice from the European Medicines Agency (EMA) following its review of Destiny Pharma’s proposed Phase 3 clinical programme design. This pivotal Phase 3 programme is expected to lead to the registration of the XF-73 nasal gel as a new drug in Europe. The Company also announced findings from a recently commissioned, independent market research study which reinforces the clinical support and market potential of XF-73 Nasal gel in Europe. XF-73 is the lead drug candidate from Destiny Pharma’s XF platform, initially being developed for the prevention of post-surgical staphylococcal infections, such as methicillin-resistant Staphylococcus aureus (MRSA), which cause significant complications and increased healthcare costs in the hospital setting.

Empire Metals 0.93p £3.4m (EEE.L)

Empire Metals will commence a strategic phase of exploratory drilling at the Eclipse Gold Project in conjunction with an initial drilling campaign at the new Gindalbie Gold Project, located immediately adjacent and southeast to Eclipse within the Eastern Goldfields of Western Australia. This significantly larger, newly combined Eclipse-Gindalbie project area provides the Company with an exciting advanced gold exploration opportunity. As a result, the Company has decided not to take up the Option over the Central Menzies Gold Project in order to focus its activities on the more promising Eclipse and Gindalbie Projects.

Great Western Mining 0.13p £4.7m (GWMO.L)

Great Western Mining Corporation PLC, which is exploring and developing gold, silver and copper targets in Nevada, today updates shareholders on its 2022 approved drilling programme. Four drill targets have been prioritised for the first stage of the 2022 drill programme, with start-up in early spring as soon as ground conditions permit. 23 holes planned at Trafalgar Hill, OMCO and Rock House. Early spring start-up when ground conditions permit. Drill programme funded from existing cash reserves.

Midwich 600p £532m (MIDW.L)

The global specialist audio visual distributor to the trade market has entered a binding agreement to acquire Nimans Limited and its subsidiaries from Nycomm Holdings Limited. Nimans is a UK based specialist distributor of unified communications, telecoms, collaboration and audio visual technologies. Based near Manchester, Nimans was founded in 1981 and has built a strong presence and reputation in the UK telephony hardware market. In recent years the business has expanded successfully into new market areas such as unified communications, VOIP solutions, security and networking. Key brand relationships include Yealink, Jabra, and BT. The Company trades with over 2,500 telephony, IT and retail customers and employs over 200 staff. In its latest audited financial statements, for the year ended 31 December 2020, Nimans generated consolidated revenues of £114.3m and profit before tax of £5.8m. Net assets (excluding net cash balances) at 31 December 2020 were £11.4m. The transaction has been undertaken on a cash free/ debt free basis. Completion is subject only to FCA approval and expected in the first half of 2022.

Serinus Energy 1.67p £18.8m (SENX.L)

Serinus has commenced a 105 kilometre 2D acquisition program in Romania. The data acquisition is planned to be carried out over 10 days. Subsequently, the data will be sent for processing and AVO analysis. This seismic program is being shot to the north of the Moftinu gas field, providing additional seismic coverage over the Company’s highest ranked exploration prospects. The goal of the program is to augment existing legacy 2D seismic in the area and infill the existing coverage. Once the data has been processed, the Company expects that this new seismic data will de-risk these identified prospects and allow the Company to select the optimum drilling locations for the upcoming 2022 three-well drilling program to be commenced in Q3 2022.

Urban Logistics 182.5p £861m (SHED.L)

The last mile logistics focused REIT, provides a further update on recent activity following its move to the Main Market and £250m equity raise in December 2021. £39.5m of logistics assets recently acquired at a blended NIY of 5.0%. In aggregate £68.1m of capital deployed or committed since the December raise. Group portfolio now consists of 110 strategically positioned last mile/last touch urban logistics assets. £9m asset disposal which has generated an IRR of c. 25%. £40m Aviva Investors debt draw down completed with interest only payments on a fixed rate of 2.26% in a 7 year term facility. 100% of prior quarter rent demanded has been collected.

8 February 2022
*A corporate client of Hybridan LLP

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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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