Small Cap Feast

9th June 2023

Dish of the day
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Dish Of The Day:

Altona Rare Earths (REE.L) a mining exploration company focused on the development of a significant Rare Earth Elements mining project in Africa, has joined the Main Market following the move from the AQSE Growth Market.

Hurricane Energy (HUR.L) has left AIM. 

What’s Cooking In The IPO Kitchen?

CAB Payments Holdings Limited a market lender to business to business (B2B) cross-border payments and foreign exchange, specialising in emerging markets intends to join the Premium Segment of the Main Market. The Group announced revenues of £41.3m for the three months ended 31 March 2023 with YTD adjusted EBITDA margin at 64%. The Offer is expected to comprise a secondary sell-down of existing ordinary shares by Merlin Midco Limited (a wholly owned subsidiary of Helios Investors III, L.P. and Helios Investors III (A), L.P.)

WE Soda, the world’s largest producer of natural soda ash, more commonly known in the UK as sodium carbonate or washing soda, announces that it is considering listing on the Premium Segment of the Main Market. WE Soda, an extractor of soda ash in Turkey and the US, is a subsidiary of Ciner Group, an industrial and media conglomerate. It is a high-margin business and last year it reported adjusted operating profits of $892m on revenues of $1.77 bn. The Offer would be wholly comprised of ordinary shares to be sold by the existing shareholder. Separately from and in addition to the Offer, the Company is also considering making an exempt public offer of Shares to retail investors in the UK through the PrimaryBid platform. The value of Shares sold will not exceed EUR8m equivalent (approximately £6.95m).

Breakfast Buffet

Acuity RM Group 9.75p £11.8m (ACRM.L)
Previously known as Drumz plc, a provider of risk management services announces that it has won a new customer for its STREAM™ Integrated Risk Manager software product used by private and public sector clients to manage their cyber security and other Enterprise risks. A leading British insurance company is adopting STREAM™ to improve its risk management within its organisation. Although a small order, the Company are focused that there are several other opportunities generated by this and other newly appointed and existing partners.

European Metal Holdings 40.5p £77.9m (EMH.L)
An Australian and UK listed mineral exploration and development company announces Geomet s.r.o (its 49% owned subsidiary) has agreed to purchase land at the industrial site Dukla in the Újezdeček Municipality, 6.2 km south of the planned Cinovec Mine portal area, on which it intends to construct a lithium plant, for a total purchase consideration of US$43.96m. The acquisition of the land location of Dukla to the mine site is critical to the minimisation of transport costs and ESG impact. EMH has provided a loan of CZK 121m (US$ 5.51m) to Geomet for its proportion of all deposits and option fees.

Faron Pharmaceuticals Oy 260p £165.1m (FARN.L)
A clinical-stage biopharmaceutical company focused on tackling cancers via novel immunotherapies, announces the release of new biomarker data from the ongoing Phase I/II BEXMAB study of bexmarilimab in combination with standard of care (SoC) in the aggressive hematological malignancies of acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). In BEXMAB patients, a high Clever-1 expression in leukemic blasts is associated with lower levels of antigen presentation. The proposed mode of action of bexmarilimab in AML/MDS is now supported by the biomarker data, which suggests durable Clever-1 target engagement in the bone marrow tumor microenvironment. In addition, bexmarilimab treatment increased HLA-DR expression by leukemic blasts, indicating improved immune recognition and eradication of the malignant cells.

Hummingbird Resources 17.5p £105.3m (HUM.L)
A multi-asset, multi-jurisdiction gold producing company, with two core gold projects, announces first gold pour at the Kouroussa Gold Mine on 08 June 2023, ahead of the end of Q2-2023 schedule and on budget. Mining continues in preparation for name plate production expected during H2-2023. The Kouroussa processing plant is a one million tonne per annum capacity standard carbon-in-leach plant. Detailed Kouroussa exploration plans are being developed with a view to re-initiated exploration drilling plans in H2 2023 / 2024, with the focus to increase Kouroussa's current Reserves base of 647,000 oz at 4.15 g/t.

Invinity Energy Systems 42p £80.2m (IES.L)
A manufacturer of utility-grade energy storage, announces that the Company will deploy the first prototype of its next-generation product at a site in British Columbia, Canada early next year, funded in part by a CAD $0.5m award from the B.C. Centre for Innovation & Clean Energy. The award will support the manufacture and deployment of a 1.2 MWh prototype of Invinity's next-generation vanadium flow battery code-named Mistral. The prototype will be tested against a commercial use case and is expected to be operational in H1 2024.

Katoro Gold 0.09p £0.6m (KAT.L)
The gold and nickel exploration and development company releases its audited results for the year ended 31 December 2022. The Company announced a marginal increase in exploration expenditure to £285k (2021: £284k) and 10% increase in the loss for the period to £1.25m (2021: £1.14m). The diamond drilling programme at Haneti, completed 900.04 metres across three drill holes as planned and with depths of 430.24m, 245.78m and 224.02m respectively. The Company entered into a Joint Venture Agreement with Lake Victoria Gold (LVG) for the development of the Company's Imweru Gold Project. LVG will earn up to 80% in the Project, with the balance of 20% being held by Katoro as a carried interest.

Renalytix 87.5p £82.1m (RENX.L)
An artificial intelligence-enabled in vitro diagnostics company, focused on optimising clinical management of kidney disease to drive improved patient outcomes reports financial results for the fiscal third quarter ended March 31 2023. The Company recognised $0.7m of revenue (Q3 FY22: $0.8m) with operating expense of $11.0m compared with $14.7m in Q3 FY22. Net loss was $12.1m (Q3 FY22: $14.7m) and holds cash and cash equivalents of $33.0m. The Company has continued progress with FDA De Novo authorisation review, with the FDA indicating a target date for decision completion by the end of the second calendar quarter of 2023.

Safestay 31p £20.1m (SSTY.L)
The owner and operator of an international brand of contemporary hostels, announces its audited final results for the 12 months to 31 December 2022. Total revenues increased to £19.1m (2021: £6.4m), an increase of c200%, as a result Adjusted EBITDA increased to £5.9m (2021 loss: £1.0m). Loss after tax decreased by 50% to £0.3m (2021: loss of £0.6m) and the Company holds cash of £5.2m (2021: £4.5m). Occupancy was 63%, compared to pre-covid levels of 77% (2019). Trading in the first four months of 2023 is significantly ahead of budget.

Versarien 3.4p £9.0m (VRS.L)
The advanced engineering materials group, announces its unaudited interim results for the six months ended 31 March 2023. Group revenues of £2.62m (2022: £3.89m), and an increase in adjusted LBITDA of £2.01m (2022: £0.31m). The Group held cash of £0.76m as at 31 March 2023 (30 September 2022: £1.35m), with a placing to raise gross proceeds of £0.53m post period end. The Group aims to divest non-core activities and Asian assets to reduce the requirement for funding from the capital markets.

Woodbois 0.425p £10.6m (WBI.L)
The African focused sustainable forestry, reforestation, carbon sequestration and timber trading company, announces its audited results for the full year ended 31 December 2022. Revenues increased by 32% to $23.1m (2021: $17.5m) with the forestry division generating 66% of turnover and third-party trading 34%. Gross profit increased by 69% to $5.9m(FY 2021: $3.5m) and EBITDA increased to $3.3m (2021: $1.0m). Net loss for the year of $111m. Post year end, the Company announced a $3.4m fundraise completed in March 2023 and has a grant of 50,000 hectares of low carbon stock land in Gabon for initial large-scale afforestation project.

9 June 2023
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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