Hybridan Small Cap Postcard

While we were away….

Joiners: 5 new ones over last 3 weeks:

Yooma Wellness Inc (AQSE: YOOM), a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, announces it has joined the AQSE Growth Market. Yooma, together with its European deal coordinator, Chrystal Capital Partners LLP, have raised gross proceeds of GBP7.5m, at a price of C$0.90 (£0.5232) per share. Lorne Abony, Chairman of Yooma, said: “Yooma’s listing on the AQSE provides us with a solid foundation on which to execute our growth strategy in the UK, Europe and beyond. Our strategic focus on value accretive acquisitions throughout the world will help to solidify Yooma’s place as a global wellness leader.”

Southern Energy Corp (SOUC.L), an established oil and gas producer headquartered and incorporated in Alberta, Canada, with oil and gas interests in properties located in the south-eastern United States, primarily in Mississippi, has joined AIM. The Group has controlling operated interests in properties covering approximately 30,000 net acres in the Mississippi Interior Salt Basin (MISB), which include its two principal properties Mechanicsburg and Mount Olive East, and approximately 1,200 net acres in the Black Warrior Basin. The majority of the Company’s leases (97%) contain producing wells and are ‘held by production’, requiring no additional drilling or operations for the Group to maintain its existing interest. The Group currently has a working interest in 239 producing wells. No Capital to be raised on Admission. Anticipated Mkt Cap £18.86m. Retains its TSX Venture Exchange listing.

BiVictriX Therapeutics (BVX.L) has joined AIM. BiVictriX is a UK based drug development company which was incorporated in February 2016 and has developed its proprietary Bi-Cygni® technology. This technology utilises Antibody Drug Conjugates (ADC’s), an existing class of potent biological drugs, for the treatment of various cancers including Acute Myeloid Leukaemia, the first condition which BVX intends to treat. Raised £7.5m. Market cap at admission is £13.2m.

Likewise Group (LIKE.L), the fast growing UK floor coverings distributor, has joined AIM with a placing to raise gross proceeds of £10m at the Placing Price of 25 pence per share. At the Placing Price, the company’s market cap on Admission is approximately £48.1m.

Canadian Overseas Petroleum (COPL.L), an international oil and gas exploration, production and development company with production and development operations focused in Converse County, Wyoming, USA, has been readmitted to the Main Market (Standard) following the Reverse Takeover of Atomic Oil & Gas in March. Arthur Millholland, President & CEO, commented: “The assets acquired through the acquisition of Atomic Oil and Gas LLC on March 16th  are performing well beyond our initial expectations. Crude oil production has increased 80% from April 1st, and continues to increase weekly. In fact, crude oil production has increased 22% from the report of our Q1 results on July 26th.”

Leavers 7 off over last 3 weeks: 

UDG Healthcare, Aggreko and St. Modwen Properties have left the Main Market

Sigma Capital Group, Trans-Siberian Gold  and Total Produce have left AIM

Freyherr International Group has left the Aquis Stock Exchange

Quiet markets week this week, back on Thursday 26th

Banquet Buffet

Accsys Technologies 163p  £313m (AXS.L)

The fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today announces an update regarding the final stages of construction towards commercial operation of the new Tricoya® plant in Hull, UK, by Tricoya UK Limited (‘Tricoya UK’), Accsys’ joint venture in relation to the Hull plant. The plant is anticipated to be commercially operational by July 2022.Work is ongoing to potentially accelerate achievement of this milestone. Demand from the large addressable market for Tricoya® continues to be strong, as seen in the buoyant sales previously reported. AXS continues to expect that, once operational, the plant’s production will ramp-up to full capacity over approximately three years. The total project capital cost is expected to be an additional EUR9m to EUR15m more than previously anticipated.  

Arena Events  15p  £49m (ARE.L)

Further to the announcement made on 26 April 2021, the integrated event solutions business, reported that its recently acquired US subsidiary, Arena Aztec Shaffer (AAS), based in Houston, Texas, has agreed to a new multi-year contract with Championship Management, a division of the PGA TOUR. The agreement, which runs until May 2023, covers the same scope of events as previously served by AAS, with pricing adjusted to reflect current market conditions.

B90 Holdings 12.5p  £24.3m (B90.L)

The online marketing and operating company for the gaming industry, announces that it has signed an affiliate marketing agreement with Nordic Group ltd, a leading marketing and online advertising partner, with a focus on Latin America and the Nordics, to promote all its sportsbook and online casino services in various territories. The affiliate deal covers all current and future Bet90 brands and subsidiaries and Nordic will commence promotional activities immediately. B90 will pay Nordic an initial Affiliate Fee amounting to EUR150,000, which will be settled in new Ordinary Shares on 30 November 2021. The total number of new Ordinary Shares to be issued in satisfaction of the Initial Affiliate fee will be calculated based on the average closing mid-market price of B90’s Ordinary Shares over the five dealing days ending on 30 November 2021 rounded upwards to the nearest whole new Ordinary Share and on the then prevailing exchange rate.

I3 Energy 11.05p  £120.6m (I3E.L)

The  independent oil and gas company with assets and operations in the UK and Canada, announced that its wholly owned Canadian subsidiary has closed i3’s previously announced (7 July 2021) strategic Central Alberta asset acquisition from Cenovus Energy Inc., a senior Canadian oil and gas producer, for a total consideration of CA$65m(US$53.7m). The strategic Acquisition, within i3’s Central Alberta core area, is expected to provide strong free cash flow and delivers extensive operational synergies, predictable low-decline production, and a large reserve base with multi-year development opportunities as described further in the Company’s announcement on 7 July 2021.

Microsaic Systems 0.2p  £12.8m (MSYS.L)

MSYS announced continued progress through its collaboration with DeepVerge plc to provide real-time monitoring solutions to detect and identify contaminants in water and soil. Microsaic has launched a miniaturised mass spectrometer platform which provides fully integrated front-end solutions, with software upgrades using AI from DeepVerge, to achieve triple quadrupole limits of detection for real-time monitoring and identification of organic chemicals in water and soil. ‘Triple quad’ limits of detection mean increased sensitivity and specificity, which allows detection and quantitation at lower limits than conventional single quadrupole mass spectroscopy. The new portable Microsaic platform, with triple quadrupole limits of detection is unique, bringing laboratory quality performance to the front-line, at a fraction the cost and up to 90% smaller than traditional triple quadrupole mass spectrometry equipment, reducing workflows and allowing real-time manual, or automated, decision making in real-time.

Oriole Resources 0.52p  £8.3m (ORR.L)

Update on its Senala project in Senegal, where joint venture partner IAMGOLD Corporation  has the option to spend up to US$8m to earn a 70% interest (announcement dated 1 March 2018). IAMGOLD is currently in Year 4 of that earn-in. Oriole-engaged independent consultants have estimated a maiden JORC-compliant MRE for Faré South of 155,000oz Au grading 1.26 g/t Au in the Inferred category. The entire Resource has been defined within the limit of an US$1,800/oz pit shell, with more than two-thirds of the Resource being attributed to near-surface oxide material. The Resource sits within a larger JORC-compliant Exploration Target for Faré South which has up to an estimated 280,000 oz Au grading 1.10 g/t Au. Both the Resource and Exploration Target at Faré South are open at depth and along strike to the northeast and southwest. Recently received RC drilling results for the Faré North and Faré Far South anomalies have not been modelled as part of the Resource and therefore highlight the potential for the definition of additional near-surface resources at Senala. Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project.

Serinus Energy 1.78p  £20.3m (SENX.L)

Appointment of Mr. Stuart Morrison as Chief Operating Officer of the Company. Mr Morrison has over 34 years of oil and gas industry operational experience in numerous senior management roles. Early in his career he worked as a Petroleum and Reservoir Engineer with BP Research, British Gas, Sun Oil and Oryx Energy UK prior to joining Premier Oil in 1997.  At Premier, Mr. Morrison assumed a variety of technical and management positions such as Chief Petroleum Engineer, Business Development Manager and Exploration Manager in corporate roles and business units such as the Middle East and Falkland Islands. In these roles, Mr. Morrison has accumulated an abundance of experience in oil and gas exploration and development, including leading many successful projects. Mr Morrison has a Bachelor of Science (First Class Honours) Degree in Chemical Engineering and a Master of Engineering Degree in Petroleum Engineering, both from Heriot-Watt University, Edinburgh. Serinus is an international upstream oil and gas exploration and production company that owns and operates projects in Tunisia and Romania.

Sureserve Group 95p  £153.1m (SUR.L)

The  industry provider of Compliance and Energy Services, announced that two of its wholly owned subsidiaries (K&T Heating Services Ltd and Sure Maintenance Ltd) have successfully retained a long-term Gas Servicing, Repair and Installation Contract with their long-standing existing client, The Guinness Partnership. The Contract term is a minimum of 5 years and capped at 10 years, commencing on 1st September 2021, and is expected to generate a combined sales revenue of £140m over the full 10 year term. The Guinness Partnership is a large national provider of social housing who own and manage more than 65,000 homes throughout England.

Synectics Group  119p  £21.2m (SNX.L)

The specialist in the design, integration and support of advanced security and surveillance systems, announces the award of a contract worth approximately £1.0m for the Dos Bocas refinery in south-eastern Mexico. Synectics and its integration partner, Mathieson Elco, have been awarded a contract by Samsung Engineering to provide safety monitoring and surveillance equipment for the Dos Bocas refinery in south-eastern Mexico, being constructed for the Mexican state-owned oil company, PEMEX (Petróleos Mexicanos). The project, based on Synectics’ recently-released COEX C3000 4K camera stations, will be completed early in 2022 with delivery commencing later this year.

VAST Resources 7.1p  £15.8m (VAST.L)

The mining company, announced the conditional agreement for the acquisition of Gem Diamonds Botswana (pty) Ltd (GDB), a wholly owned subsidiary of Gem Diamonds Ltd (Gem Diamonds) which owns the Ghaghoo Diamond Mine in Botswana. The acquisition of Ghaghoo, which will be conducted through a joint venture between the Company and Botswana Diamonds plc, will provide Vast with a 90% interest in a high quality and previously producing diamond asset benefiting from world-class infrastructure and capable of generating material revenues in the near term. The acquisition of GDB is conditional, inter alia, on the procurement by Vast of a bank guarantee in favour of Gem Diamonds and on relevant regulatory and competition authority approvals in Botswana and is expected to complete during the latter part of 2021. It is not the intention of Vast to provide funding that may be required for the acquisition of the Ghaghoo Mine from new equity raisings and the Company is currently engaged with third party financiers to support the development of Ghaghoo into production. Andrew Prelea, Chief Executive Officer of the Vast Resources plc, commented: “The proposed acquisition of the Ghaghoo Mine in Botswana is a highly compelling opportunity for Vast to deliver diamond production in a relatively short period, benefitting from a fully equipped mine that has $250m of investment, infrastructure and a significant Resource of quality gems that include large stones and fancy colours.  Importantly Ghaghoo is substantially de-risked both from an exploration and development perspective, and also from the funding structure that we are advancing with third party financiers.

What’s cooking in the IPO kitchen?

According to Reuters, Olam International (OLAM.SI) is considering raising about £2bn ($2.8 bn) through a London listing of its food ingredients unit next year.

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.  

SigmaRoc (on AIM) to complete 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. Due Late August.

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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