Small Cap Feast

8th February 2023

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What’s Cooking In The IPO Kitchen?

Fulcrum Metals, a holding company of a mineral exploration group with base, precious and energy metal projects in Canada, intends to join AIM. On Admission, the Group's projects will comprise six gold and base metal projects in Ontario, Canada. The Group's projects are pre-discovery with large, diversified land packages that have either substantial historical samples or prospective geology and are located nearby mineral rich deposits or producing mines. Expected mid-February 2023

Breakfast Buffet

Agronomics 12.75p £126.5m (ANIC.L)
The company focused on the field of cellular agriculture announces its unaudited interim results for the six-month period ending 31 December 2022. During the period, the Company completed 9 new investments and had positive revaluations within the existing portfolio, as a result the Company recorded a net profit for the period of c.£18.6m (2021: profit of c.£2.5m). During the six months, the investment income, including loan interest and net unrealised gains, increased to c.£19.87m (2021: c.£3.62m). The Group expects developments in a number of their portfolio companies that should positively impact their valuation.

Deltic Energy 3.15p £58.7m (DELT.L)
The natural resources investing company with a high impact exploration and appraisal portfolio focused on the Southern and Central North Sea, announces a significant gas and oil discovery at Pensacola on Licence P2252 in the Southern North Sea. Pensacola could represent one of the largest natural gas discoveries in the Southern North Sea in over a decade and deltic pre-drill volumetrics for Pensacola were confirmed by well - P50 Estimated Ultimate Recovery of 302 BCF. The net cost of drilling the well is expected to be £11.1m. Following the discovery, in line with the Company's strategy, Deltic will consider all options including appraisal and development as well as potential full or partial monetisation of value.

Hardide 13.5p £8.0m (HDD.L)
The developer and provider of advanced surface coating technology, announces annual results for the year ended 30 September 2022. Revenues increased by 39% to £5.0m (FY21: £3.6m). The strong revenue growth led to a reduction in the EBITDA loss to £0.9m for the year, (FY21: £1.5m). The Group reported cash of £0.7m (FY21: £1.5m). The board continue to focus on becoming profitable and cash generative and to increase value for shareholders over the medium to longer term.

Pennant International Group 32.5p £12.0m (PEN.L)
A global provider of training technology and integrated product support solutions, provides the following trading update. The Group announced a 14% decrease in revenues to c.£13.7m (2021: £16m). Gross margin was higher at 42% (2021: 27%) and EBITDA of c.£0.5m. The Group also reported reduction in net debt of £0.4m (2021: net debt of £3.5m). The Board retains a positive outlook, with the three-year order book at year-end of £25m (2021: £22m), of which £13m is scheduled for delivery in 2023.

Renalytix 110p £82.4m (RENX.L)
The developer of artificial intelligence-enabled clinical in vitro diagnostic solutions for kidney disease announces a c.$20.3m (c.£16.9m) private placement of Ordinary Shares and American Depositary Shares at a discount of c.28.9%. The Company intends to use the net proceeds from the offering as follows: C.$10.3m for clinical product development; C.$7.7m for sales and marketing; and C.$2.0m for corporate support and financing costs.

Renold 27.05p £61.0m (RNO.L)
An international supplier of industrial chains and related power transmission products issues a trading update covering the 10 month period ended 31 January 2023. Turnover totalled £199.0m, up 25.4% (10 months to 31 January 2022: £158.7m), and the Group’s order intake was £216.5m, a year on year increase of 19.2%. The integration of Industrias YUK S.A. continues in line with management's expectations at the time of the acquisition and net debt is still expected to be below 1.5x EBITDA. The Board is confident that the Group will deliver revenues and underlying profits in excess of market expectations.

Sosandar 23p £50.9m (SOS.L)
A fast growing fashion brand in the UK, creating quality, trend-led products for women of all ages, announces a proposed placing for ordinary shares to raise c.£4.0m at a price of 22p. In addition, the Group intends to issue new ordinary shares at the issue price via the BookBuild Platform to raise a further £0.5m to provide to existing retail shareholders. The Company intends to use the net proceeds for further investment in stock, enabling increased provision of Sosandar's product range in-store with third party partners including Sainsbury's. It will also create further balance sheet headroom for other growth initiatives and investment in the Company's customer acquisition model.

Tialis Essential IT 67.5p £16.3m (TIA.L)
The mid-market network, IT Managed Services provider announces that Andy Parker, the Company's Non-Executive Chairman, has agreed to become the Company's Executive Chairman. This is to aid the integration process following the completion of the acquisition of the profitable partner contracts from Allvotec which was announced on 1 February 2023.

Trident Royalties 58p £169.0m (TRR.L)
The diversified mining royalty company, notes the announcement by Lithium Americas Corp, (LAC) that it has received a ruling from the US District Court, District of Nevada for the appeal filed against the Bureau of Land Management for the issuance of the Record of Decision relating to LAC's Thacker Pass lithium project (Thacker Pass). The favourable ruling by the Federal Court confirms the permitting process for Thacker Pass was conducted thoroughly and responsibly, and results in there being no impediment to commencing construction. Trident holds a 60% interest in a gross revenue royalty over the entirety of Thacker Pass. Thacker Pass continues to develop into a world class lithium asset following the recent $650m equity investment from General Motors.

Xerox Technology Group 4.55p £6.9m (XSG.L)
The firm that reduces the impact of clothing on the planet, provides a pre-close trading update for the full year to 31 December 2022 (FY22). The Board expects adjusted EBITDA loss for FY22 to be 5-10% (£6.8m) higher than prior guidance owing to timing of commercial milestone payments and some minor restructuring undertaken with associated costs of £0.3m. The Group continues to support IFB; licence partner in India for the final stages of testing of a 9kg domestic machine prior to market launch.

8 February 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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