Hybridan Small Cap Feast

13 mins. to read
Hybridan Small Cap Feast

Joiners: Caracal Gold (GCAT.L)  (Formerly Papillon Holdings) has been readmitted to the Main Market with contemporaneous dual listing on the Frankfurt Stock Exchange. As part of the Readmission process, the Company has raised gross proceeds of approximately £5,493,885 completed in two rounds at a placing price of £0.01 per share, implying a market capitalisation of circa £14.5m on Readmission. The Company aims to build a position as an emerging East African focused gold producer with a clear path to grow production and resources both organically and through strategic acquisitions. Following Readmission, it aims to rapidly increase production to +50,000ozs per annum (‘p.a.’) and build a JORC compliant resource base of +3Moz within 12-18 months from listing. To this end, a phased mine optimisation strategy at the Company’s newly acquired Kilimapesa Gold Mine is already advancing, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz.

SigmaRoc (AIM:SRC) has completed the RTO of Nordkalk Oy Ab, a wholly-owned subsidiary of Rettig Group, for a total Consideration of EUR470m. Nordkalk was established in 1898 as a limestone developer in Finland and since expanded across northern Europe to become the leading limestone company in the area. The Company has raised £260m from the Placing and £1.6m from the Retail Offer. Based on the Placing Price, Mkt Cap on Admission is expected to be approximately £542m.

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Bradda Head Holdings  9.1p  £26.7m (BHL.L)

The North America-focused lithium development group, announced three key senior appointments: Adam Hawkins appointed as ESG Officer, Don Hains P. Geo., MBA, appointed as Technical Consultant and Dr. Yatendra Sharma BSc Hons, MSc, PhD, CChem, MRACI, MAusIMM, appointed as a Lithium Processing Consultant. Don is the author of the CIM Best Practice Guidelines for Reporting of Lithium Brine Resources and Reserves and a co-author of the CIM Best Practice Guidelines for Reporting on Industrial Minerals Resources and Reserves. Yatendra has more than 47 years’ experience at top management levels in various multinational companies in production, R&D and project managements of various mineral projects. Yatendra is also the inventor of 16 battery patents (including Li ion batteries and processing of Li from its ore and electrodes materials) and has several publications in international journals.

Clarify Pharma 2.65p  £7.9m (AQSE:PSYC)

The investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announces its unaudited financial results for the six months ended 31 May 2021. Raised a total of £1.29m in a pre-IPO funding round. Post-period highlights: Successfully completed an IPO on London’s AQSE Growth Market (AQSE) on 11 June 2021 with a Mkt Cap of approximately £7.43m. Raised £1.96m in total before expenses via a placing and subscription at 2.5p per share at flotation . Made a first capital investment in Beckley Psytech Limited, a private company dedicated to addressing neurological and psychiatric disorders through the novel application of psychedelic medicines. Net cash of £1.79m as at 31 August 2021 Outlook: The deal flow of potential investments remains strong and the Directors and Advisers continue to evaluate exciting new opportunities that will generate long-term value for investors. The Company is well positioned to take advantage of the growing psychedelics market as it continues to develop significantly along with the regulatory environment.

Futura Medical 38.85p  £111.5m (FUM.L)

The pharmaceutical company developing a portfolio of innovative products based on its proprietary, transdermal DermaSys® drug delivery technology and currently focused on sexual health and pain, today announces it has entered into a licensing agreement with m8 Pharmaceuticals, Inc, a specialty biopharmaceutical company focused on commercialisation in Latin America, for the rights to exclusively develop and commercialise the Company’s topical, gel-based Erectile Dysfunction (ED) treatment MED3000, in Brazil and Mexico. Futura to receive payments on all sales of MED3000 from m8. Futura also eligible to receive up to $8.5m in milestone payments based on deliverable sales volumes, including a small initial upfront payment. M8 is responsible for all local MED3000 development and regulatory costs in Brazil and Mexico as well as marketing expenses and ongoing pharmacovigilance and safety within the region.

Oxford  Biodynamics 50.3p  £46.6m (OBD.L)

The biotechnology company developing targeted clinical diagnostic tests for immune health utilising its EpiSwitch®3D genomics technology, announces that it has been awarded an FNIH Partnership for Accelerating Cancer Therapies (PACT) Grant to use the EpiSwitch diagnostic platform for accurate prediction of a patient’s response to Immune Checkpoint Inhibitors (ICIs) from a routine blood sample. The grant worth $910k (RFA #2021-PACT001) is executed by the Foundation for the National Institutes of Health (FNIH), a US not-for-profit organisation managing the precompetitive collaboration between the National Institutes of Health (NIH), National Cancer Institute (NCI), US Food and Drug Administration (US-FDA), and 12 leading pharmaceutical companies comprising AbbVie, Amgen, Boehringer-Ingelheim, Bristol-Myers Squibb, Celgene, Genentech/Roche, Gilead, GlaxoSmithKline, Janssen, Novartis (NIBR), Sanofi, and Pfizer, as part of the Beau Biden Cancer Moonshot™ Initiative accelerating cancer research. PACT seeks to provide a systematic approach to cancer biomarker investigation in clinical trials by supporting development of standardised assays.

Oracle Power 0.37p  £8.35m (ORCP.L)

Further highly positive geochemical sampling results have defined five drill target areas at its 100% owned Jundee East Gold Project, located in the Eastern Goldfields region of Western Australia which is located ~7km due east of Northern Star’s Jundee Gold Mine. These further positive results show that indicator elements (including gold and copper) are mobilising to surface at an atomic level above the target area which further supports the potential of a mineralised system in a previously unrecognised greenstone belt, proximal to Northern Star’s producing Jundee Gold Mine, which has a current Resource of 5.4Moz. The programme has successfully defined five large target zones which are now essentially “drill ready” for first pass testing, with a programme currently being developed.

Physiomics* 7.05p  £6.9m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions, announced that Hayley Close has today joined the Company as Head of Business Development. Hayley holds a degree in Biomedical Science from University College London and joins from Fusion Antibodies plc, where she was Key Account Manager responsible for identifying and engaging with new clients and developing existing business globally. At Physiomics, Hayley will work directly with the CEO and senior management team with the aim of significantly expanding both existing and new business. Dr Jim Millen, CEO, commented “Physiomics has reached the stage of its growth where we believe there will be real benefit in retaining a full-time business development executive.  Hailey joins us with a fantastic track-record and we look forward to working with her to significantly expand Physiomics’ business”.

Strix Group  368p  £760m (KETL.L)

The global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, announced that the opening ceremony for its new factory within Zengcheng district in Guangzhou, China, took place on Friday 27 August 2021 and that manufacturing is fully operational. The new factory will double the Group’s current manufacturing capacity enabling it to grow the business and deliver its stated strategy of doubling revenues over the next five years. Efficiencies and further in-sourcing arising from the new manufacturing facility are expected to have a positive effect on margins.

Trident Royalties 33.5p £60.5m (TRR.L)

Trident has entered into a binding agreement with Seduli Sutter Operations Corporation to acquire a Net Smelter Return royalty over production from the Lincoln Gold Mine located in California, USA.  Seduli intends to utilise the royalty sale proceeds to finalise the restart of Stage 1 production at the Lincoln underground gold mine.  The Net Smelter Return Royalty is being acquired for a cash consideration of US$2.5m, payable immediately by Trident. Seduli has indicated that it will utilise the proceeds to commission the refurbished processing plant and commence mining operations, as well as for general working capital purposes. Royalty payments will be made to Trident on a quarterly basis. The NSR royalty rate will be 1.50%, decreasing to 0.75% upon US$3m being paid on the Royalty.  A near term cash-generative royalty over a low-cost, high-grade asset which plans to commence Stage 1 production of 220 tonnes-per-day in 2021, targeting approximately 20,000+ ounces of gold per year. The Project is permitted for Stage 2 production of up to 1,000 tonnes-per-day (80,000+ ounces per year), which is anticipated to commence, subject to funding, immediately following successful completion of Stage 1. Prior to the stepdown in royalty rate, Stage 1 is expected to generate over US$0.5m per year in pre-tax royalty revenue, increasing to over US$2m per year in Stage 2.

Velocys 4.95p  £52.7m (VLS.L)

The sustainable fuels technology company, announced that its collaboration partner, Toyo Engineering Corporation (TOYO) is starting the advanced engineering and design phase of a commercial scale biofuel refinery in Japan. TOYO’s engineering study will start to establish commercial-scale production of Sustainable Aviation Fuel (SAF) in Japan. During this phase of the project, TOYO will integrate biomass gasification, Velocys’ Fischer Tropsch (FT) technology and other process technologies to efficiently convert woody biomass into SAF. This project is part of the “Biojet Fuel (or SAF) Production Technology Development Project” of the Japanese Government’s New Energy and Industrial Technology Development Organization (NEDO).

Verici Dx 69.5p  £98.5m (VRCI.L)

The  developer of advanced clinical diagnostics for organ transplant, announces that patient enrolment for a multi-centre observational clinical validation study for the Company’s lead products has concluded ahead of management expectations. Early completion of enrolment supports that the Company remains on track to complete the validation study for these products by the end of 2021, in line with expectations set out in the Company’s admission document. Verici Dx has partnered with eleven leading US and EU centres to date to run a global, non-randomised study for the clinical validation of Verici Dx’s lead products, ClaravaTM and TutevaTM. The study uses next generation sequencing in the Verici Dx laboratory to create transcriptomic profiles to validate performance characteristics of the lead Verici Dx signature tests. Over the longer term, the study will also provide validation for the Company’s fibrosis test, called Protega™. Patient enrolment continues for validation of Protega and is expected to complete by Q3 2022. The end points of the validation study for this product are expected to be reached up to two years after the completion of enrolment, with data expected shortly thereafter around year-end 2024.

What’s cooking in the IPO kitchen?

VSA Capital has applied for admission to the AQSE Growth Market. VSA Capital is an international investment banking and broking firm, with offices in London and Shanghai, providing corporate finance, advisory and capital markets services to private and public companies  Offer tba. Due 9 Sep

Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors. 

Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.

Access Intelligence (ACC.L) to acquire Isentia Group. The Acquisition constitutes a reverse takeover under AIM Rule 14. £50m to be raised on admission of the fundraising shares. Anticipated Mkt cap on re-admission of the Enlarged Group: £153.1m (based on the placing price of 120 pence). The Enlarged Group will provide a broad suite of technology products for marketing intelligence, reputation management, and data insights and the Enlarged Group’s main country of operation will be Australia. Due 2 September.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.

Longboat Energy (LBE.L), Longboat has secured three bilateral transactions to acquire a significant, near term, low risk exploration drilling programme in the Norwegian Continental Shelf. These agreements will provide Longboat Energy with a working interest in up to seven near term exploration wells. The farm-in agreements will constitute a reverse takeover for the purpose of Rule 14 of the AIM Rules. £35m raised prior to re-admission. Readmitted at Mkt cap of c.£40m. Due Early September.

Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.  

South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

*A corporate client of Hybridan LLP

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