Hybridan Small Cap Feast

A round up of the day’s news brought to you by the team at small-cap broker and advisor Hybridan.

Dish of the day

Trellus Health (TRLS.L) which is commercialising a scientifically validated, resilience-based, connected health solution for chronic condition management has joined AIM. · Successful Fundraising for gross proceeds of £28.5 million. Market capitalisation of approximately £64.6 million on Admission.

Belluscura has joined AIM (BELL.L).  The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators  has raised gross proceeds of £17.5 million, at an Issue Price of 45p. · Market capitalisation of approximately £50.96 million on Admission

Off the menu

No Leavers Today.

What’s cooking in the IPO kitchen?

African Pioneer, a company engaged in development of the natural resources exploration projects in Sub-Saharan Africa to join the Main Market (Standard). Raising £1.75m Due 1 June

UK SPAC (formerly Mountfield Group and now an AIM Rule 15 Shell) has applied for admission to the AQSE Growth Market. The Company recently raised £3.1m in a placing, giving the Company flexibility in pursuing a reverse take-over transaction. The Directors of the Company are currently in the process of identifying and assessing reverse takeover opportunities with a particular focus on the European medicinal cannabis sector. The Directors are working closely with specialists in this industry in order to evaluate opportunities. Due 3 June

TECC Capital plc is a SPAC applying to be listed on the Access Segment of the AQSE Growth Market with the intention to identify and acquire a suitable business opportunity or opportunities and undertake an acquisition or merger or a series of acquisitions or mergers. The focus will be investing in businesses which are developing and/or supporting the application of technology in innovative sectors such as: artificial intelligence and machine learning; telematics; life sciences (including medicinal cannabis and cannabidiol (CBD) wellness); cyber security; and eCommerce (including big data and the internet of things (IOT). Due 3 June

MADE, a digitally native lifestyle brand in home has announced its intention to IPO onto the Premium Listing Segment of the LSE. MADE’s mission is to make high-end designer furniture and homeware products accessible to everyone.  Their gross sales, net revenue and Adjusted EBITDA were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31 March 2021 and £315m, £247m and (£5.1m), respectively, for the year ended 31 December 2020.  The Offer would comprise a primary offer to raise proceeds to further develop growth in existing markets, improve service through reduction of lead-times offered to customers, scale its homeware range and give the Group increased working capital flexibility. MADE would seek to raise approximately £100m of primary proceeds. 

The Artisanal Spirits Company to join AIM. It is the holding company of the Group, whose principal operating subsidiary, The Scotch Malt Whisky Society Limited (“SMWS”) trades under the Group’s flagship brand The Scotch Malt Whisky Society. SMWS is the leading curator and provider of premium single cask Scotch malt whisky and other spirits for sale primarily online to a discerning global membership. SMWS has a presence in over 30 international markets. Offer TBA. Due 4 June

Arecor Therapeutics announces intention to Float on AIM.  The revenue generating biopharmaceutical company that is targeting improving patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products using its innovative proprietary formulation technology platform, Arestat™. Admission is expected to occur in early June 2021.  Deal details TBC. 

Marex Spectron Group expected intention to float on the London Stock Exchange. Marex have a broad service offering, primarily across energy, commodity and financial markets through its Market Making, Commercial Hedging, Price Discovery and Data & Advisory businesses, and has strong positions across its core energy and commodities markets, executing around 35m trades and clearing over 175m contracts in 2020.  Headquartered in London, the Group was formed in 2011 and currently has 19 offices worldwide with around 1,000 employees and more than 12,000 clients across Europe, Asia and America.  In the year ended 31 December 2020, the Group’s net revenue increased by 17.7% from $352.2m to $414.7m, and adjusted operating profit before tax increased by 15.2% from $53.4m to $61.5m. Should Marex proceed with an IPO, the current expectation is that the shares would be admitted to the Premium Listing Segment of the LSE and the offer would comprise of an offer of existing shares to be sold by certain existing shareholders of the Company.

Elcogen Group has announced its intention to IPO on AIM.  They are a manufacturer of ceramic anode-supported, low temperature solid oxide cell technology. Elcogen has two core product lines, ElcoCell and ElcoStack. Both product lines are used by customers to integrate into their own end products or systems either for distributed power generation (fuel cells), green hydrogen production (electrolysers) or syngas production (co-electrolysis).  The Group operates in Estonia and Finland with headquarters in Tallinn, Estonia. Company financials and deal details TBC. Expected admission date early June 2021.  

Pioneer Media Holdings Inc to join the Access Segment  AQSE Growth Market. The Company is an investment company focused on the eSports and mobile gaming industries, and all business sectors related thereto. No funds being raised. Due 29 May.

Clarify Pharma, an investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announced its intention to apply for admission of its Ordinary Shares to trading on the Access Segment of the AQSE Growth Market. The flotation is expected to value Clarify Pharma at approximately £10.5m. The Company plans to raise approximately £5m. 

Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Access Segment AQSE Growth Market. Admission is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (Standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Due 3 June.

Banquet Buffet

Agronomics 23.25p  £116.7m (ANIC.L)

The alternative proteins company with a focus on cellular agriculture and cultivated meat, announced that  portfolio company  CellX Limited has completed its Seed financing round. Agronomics invested US $50,000 in CellX in December 2020 in the form of a Simple Agreement for Future Equity. Pursuant to this agreement, the SAFE has now been converted at the valuation cap divided by the company capitalisation. Subject to audit, Agronomics will now carry this position forward at a book value of US $300,000, representing a 500% uplift and an IRR of 4,481%. Following conversion, Agronomics now holds 230,681 preferred shares.

Alpha FX Group  1,560p  £639m (AFX.L)

The provider of FX risk management and alternative banking solutions to corporates and institutions internationally, today announces a share ownership scheme for those individuals responsible for  launching the Company’s operation in Amsterdam. Following the establishment of our Netherlands business in 2020, the Group is now issuing new shares to incentivise key personnel within the subsidiary Alpha FX Netherlands Limited. As a result of issuing the new shares, the share capital of Alpha FX Netherlands Limited will be 83.5% owned by Alpha FX Limited, with the balance split between two key  individuals, Alex Sinkinson and James Young (Alex Sinkinson and James Young being the “Participants”). The Participants have the option to transfer their shares in the Subsidiary for shares in the Company under an agreement signed with Alpha FX Limited and the Company. Under this agreement, the Participants are able to exchange 25% of the shares they hold in the Subsidiary for new ordinary shares in the Company for each of the financial years ended 31 December 2023, 31 December 2024, 31 December 2025 and 31 December 2026. The Subsidiary shares exchanged by the Participants will be valued with reference to an 8x multiple of underlying profit after tax achieved by the Subsidiary. Following the exchange of Subsidiary shares into ordinary shares in the Company, Alpha FX Limited’s shareholding over Alpha FX Netherlands Limited will commensurately increase.

Corcel 1.8p  £7.31m (CRCL.L)

The natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces exclusive rights over the acquisition of the “shovel ready” Avonmouth 50MW gas peaking project outside of Bristol from FPC Electric Land Limited.  CRCL acquires exclusive rights to 100% of the Avonmouth gas peaking project further expanding its growing Flexible Grid Solutions project portfolio.  CRCL also acquires the rights over an additional 15MW of potential grid connection capacity and associated land at the Avonmouth complex.  Purchase consideration is £72,000 payable now and a further £72,000 payable at financial close as well as agreement with EL on a 30-year project land lease.  CRCL to take Avonmouth through to financial close, alongside Burwell and Tring Road, during 2021.

EQTEC 1.6p  £116m (EQT.L)

The gasification technology solutions company for sustainable waste-to-energy projects , today announced its intention to raise up to approximately £15m before expenses  The proceeds from the Fundraising will be used to support the Company’s sustainable growth model, acceleration of progress in existing markets, entry into new markets and enhancement of capacity and capabilities.· The Issue Price represents a discount of approximately 11.24 per cent. to the closing mid-market price of the Company’s Ordinary Shares on AIM on 27 May 2021, being the latest practicable date before this Announcement.

Oilex 0.22p  £12.2m (OEX.L)

Oilex advises that the sale of its 40% participating interest (PI) in the Bhandut Production Sharing Contract (Bhandut PSC) has now completed following the receipt of US$290,000 from the buyer.  An additional  payment of US$28,000 is expected for final cash calls related to Oilex’s interest in the Bhandut PSC.

Real Good Food 3.1p  £3.1m (RGD.L)

The diversified food business announces that further to the disposal of Brighter Foods Limited, as announced on 22 April 2021 and completing on 11 May 2021, each of NB. Ingredients Limited (Napier Brown), Omnicane International Investors Limited , and certain funds managed by Downing LLP have each agreed to contribute £180,000 towards the costs incurred by the Group in relation to the Disposal. The total contribution of £540,000 is by way of a waiver of certain of the outstanding loan notes held by each of the Major Shareholders reducing the amount of loan notes outstanding to £22.0 million.  This waiver has been agreed with respect of certain costs related to the Disposal. The £540,000 attributable to waiver is split between c.£350,000 of capital, £100,000 relating to certain management compensation with the remainder being in respect of interest and redemption premium.

Shield Therapeutics 59p  £127m (STX.L)

The  commercial stage pharmaceutical company with a focus on addressing iron deficiency with its lead product Feraccru®/ Accrufer® (ferric maltol), announces that Greg Madison has been appointed as Chief Executive Officer (CEO) with effect from Tuesday, 1 June 2021.  Greg has an excellent commercialisation track record and, in particular, he has deep knowledge and previous experience in the US iron deficiency marketplace. Greg is a seasoned executive who brings strong operating experience and a track record of success leading small to medium size organisations.  Prior to joining Shield, he was Chief Executive Officer at Melt Pharmaceuticals in Boston, MA, a company developing a sublingual formulation of midazolam and ketamine, providing needle and opioid-free procedural sedation and analgesia. Prior to Melt Pharmaceuticals, he was Chief Executive Officer of Keryx Biopharmaceuticals from 2015 to 2018, where he led the transformation of the organisation from development stage to commercial stage focused on Auryxia, an oral product for the treatment of hyperphosphatemia and iron deficiency anaemia, and ultimately leading to a merger with Akebia Therapeutics. In 2013 and 2014, he was Chief Commercial Officer at AMAG Pharmaceuticals where he was closely involved with Feraheme, a leading intravenous product for the treatment of iron deficiency. 

ULS Technology 88.6p  £57.5m (ULS.L)

The provider of online B2B platforms for the UK conveyancing and financial intermediary markets, has agreed a partnership with MPowered Mortgages to provide an integrated panel management service to the recently launched lender. The integrated service will provide MPowered Mortgages with access to ULS Technology’s full solicitor panel, enabling the lender to deliver electronic Offers and Certificates of Title to customers in line with its digitally-focused approach to lending. This is the latest lender partnership announced by ULS Technology which provides full back-office panel management services for lenders to better manage the risk, security and speed of their transactions. Existing partnerships include Principality Building Society, Hodge, Habito and, most recently, Foundation Home Loans.

Yew Grove REIT 98cp  EUR 105m (YEW.L)

Further to previous announcements, Yew Grove REIT plc (LSE:YEW, Euronext: YEW), which owns a diversified portfolio of Irish commercial property assets announced that the entire issued ordinary share capital of Yew Grove will today be admitted to the primary listing segment of the Official List of Euronext Dublin and to trading on the regulated market of Euronext Dublin. Dealings in the Ordinary Shares will commence on the Main Market at 8.00 a.m. on 28 May 2021 and trading in the Ordinary Shares on the Euronext Growth market will be cancelled simultaneously therewith. The Company will retain its quote on the AIM market of the London Stock Exchange. The Company is not raising any funds or issuing any new Ordinary Shares in connection with Admission.

Zinc Media 72p  £11.5m (ZIN.L)

AGM trading update form the  TV and multimedia content producer. The Company has won a further £1.9m of new commissions for 2021 in the last 5 weeks since its last update on 23rd April, coinciding with the easing of lock-down restrictions.   £1.4m comes from the recommission of two returning series and a one-off documentary, and £0.5m from Tern TV and the new Zinc Communicate combined. Zinc Media has had one previously commissioned programme worth £0.8m cancelled due to Covid and a further £0.5m of programmes have been delayed to 2022 following the latest lockdown.  The pipeline continues to build in line with the last market update.  The Group has a number of high value productions at advanced or highly advanced stages of discussion with channels.  Channels have been hesitant to green light these high value programmes during Covid, but the Group is hopeful a number of these will be signed off in the months ahead as confidence returns in the market.