Small Cap Feast

9th 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

Bonhill Group 6.75p £8.1m (BONH.L)
The B2B media business announced an update on the strategic review and formal sale process and an update on trading. The Company has received a conditional offer of £6.6m in cash (equating to a price per share of approximately 5.5 pence) from a privately owned UK media company for the assets and trade of its UK and Asia businesses which, subject to the completion of satisfactory due diligence, is expected to complete in January 2023. In addition, the Company has received indicative conditional offers for its US business, InvestmentNews LLC and will provide a further update once a preferred buyer has been selected. The Company also announced that the Board expected revenues of approximately £14.5m and an EBITDA loss of approximately £0.6m for the year ending 31 December 2022 due to the reluctance of some clients to release planned marketing spend into FY2022.


EQTEC 0.29p £27.3m (EQT.L)
The technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation, announces that it has today entered into a loan facility with Altair Group Investment the Company's largest shareholder. The Facility will provide the Company with an up to £2.0m unsecured loan with a term of 24 months from the date of execution. The Facility carries an annual interest rate of 8.0% on funds drawn and outstanding, with interest payable quarterly in advance. Additionally, the Company will pay a 2.5% fee for arrangement of the Facility.


Greenroc Mining 4.75p £5.3m (GROC.L)
The developer of critical minerals projects in Greenland, has raised £315,000 at a price of 4.5p which represents a discount of 13.5%. The proceeds of the Placing will be used to support an accelerated development programme at the Company's Amitsoq Graphite Project in South Greenland.


Ironveld 0.30p £8.8m (IRON.L)
Ironveld announces updates on the acquisition of Ferrochrome Furnaces, the refurbishment and start up of the smelters, and on the project. Closing of the acquisition remains subject to the satisfaction of certain conditions which are progressing well and relate to finalisation of particular documentation. Progress continues to be made on the refurbishment and start up of the Rustenburg smelter. As announced on 17 October 2022, first production was anticipated in Q1 2023 but Ironveld can now confirm that the first of the smelter's three planned operational furnaces is expected to be in operation within the coming weeks, significantly ahead of the original schedule. Site establishment and preparatory groundworks within the Lapon Licence area are now substantially complete and the mine will be delivering ore to the smelter as planned later this month.


IXICO 26.5p £12.8m (IXI.L)
The precision analytics company delivering intelligent insights in neuroscience announces that it has been selected by a leading global pharmaceutical company, and new client, to provide MRI imaging services for an early phase clinical trial in Multiple System Atrophy. IXICO has signed a start-up agreement with the client which is anticipated to extend to a contract value of approximately £0.6m early in 2023. The trial is expected to last for two years.


Oriole Resources 0.11p £3m (ORR.L)
The gold exploration company focused on West Africa provides an update on its 24.94% interest in privately-owned Thani Stratex Resources Limited (TSR) which holds a 100% interest in the Hodine licence in Egypt. With the Licence due to expire on 31 December 2022, and no possibility of extending its tenure, TSR has advised the Company that it has now formally relinquished the Licence. Accordingly, an amount of £1.45m, relating to the carrying value of TSR, will be written down in the Company's accounts at the year end.


Purplebricks 9.37p £28.7m (PURP.L)
The tech-led estate agency business announces its results for the six months ended 31 October 2022. Revenue for the period was £34.5m (down 16%), adjusted EBITDA loss of £8.4m (down 950%). Annualised cost savings increased from £13m to £17m. Financial benefits of the plan are expected to come through in H2 and drive positive cash generation early in FY24.


SIMEC AtlantisEnergy 2.27p £15.5m (SAE.L)
The developer, owner and operator of sustainable energy projects has announced that the planned 230MW / 460MWh battery energy storage system at the Uskmouth site has been granted planning consent with conditions by Newport City Council. As announced on 24 May 2022, the company has been working with Energy Optimisation Solutions and Quinbrook Infrastructure Partners, via their portfolio company Uskmouth Energy Storage Limited (UES), to develop this project which will be owned and operated by UES. Following this decision the company expects the remaining contractual milestones along with financial close to be achieved in Q1-23.


Technology Minerals 1.62p £21.2m (TM1.L)
The company focused on creating a sustainable circular economy for battery metals, has entered into a £4.0m convertible bond facility with Macquarie Bank Limited and Atlas Capital Markets. The Facility will be used primarily to enable the Company to ramp up of the first phase of operations at the Tipton lead-acid battery recycling plant and prepare to commence industrial-scale processing through an automated plant following approval from the Environmental Agency. It will also support operating costs and capital expenditure. The facility has a coupon of 5% per annum over the SONIA rate.


Trident Royalties 52.5p £152m (TRR.L)
The diversified mining royalty company has announced that it has entered into an agreement with Franco-Nevada Corporation (TSX, NYSE: FNV) for the sale of several pre-production gold royalties for cash proceeds of up to USD15.8m. The Transaction allows Trident to realise a significant return on its initial investment, while rightsizing the gold exposure within its portfolio and further strengthening the Company's balance sheet for subsequent acquisitions. In parallel with the Transaction, Trident has also restructured its existing debt facility with Macquarie Bank Limited on more favourable terms, reducing the coupon by up to 2%, deferring principal repayments, and extending the term by one year.

9 December 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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