Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Arena Events 20.25p  £66.1m (ARE.L)

Arena is a turnkey event solutions provider, supplying temporary physical structures, seating, exhibition services, refrigeration, barriers & fencing, ice rinks, furniture, and interiors servicing some of the most prestigious sporting, outdoor and leisure events across the UK & Europe, Middle East & Asia, and the Americas. Arena is headquartered in the UK and was admitted to trading on AIM in July 2017.  The boards of Theta Bidco Limited  and Arena Events Group plc have reached an agreement on the terms and conditions of a recommended cash offer by Bidco for the entire issued and to be issued share capital of Arena, other than the Arena Shares owned or controlled by Tasheel. Proposed price 21p per share. Represents a premium of c. 48.4% to the closing price of 14.2 pence per Scheme Share on 19 October 2021 (being the Last Practicable Date). The Acquisition values the entire issued ordinary share capital of Arena at approximately £71m on a fully diluted basis and implies an enterprise value of £95.1m.

IDE Group 1.45p  £7.2m (IDE.L)

The mid-market network, cloud and IT managed services provider, announced on 28th September 2021, that the Board was in advanced discussions to sell its wholly owned subsidiary IDE Group Connect Limited.  The Group has confirmed the sale of both IDE Group Connect and Nimoveri Limited to CloudCoCo Group plc for a deferred consideration of £250,000. Commenting on the Sale, Andy Parker, Non-Executive Chairman of IDE Group Holdings Plc, said: As we’ve previously indicated, this disposal allows us to focus on our Partner Business and we have an exciting future ahead of us.  At both a trading level, and after central and plc costs, we have a profitable cash generative business. Our focus is now entirely on growth, both continued organic growth and potential inorganic opportunities.

Kibo Energy* 0.22p  £5.6m (KIBO.L)

The multi-asset energy development company, notes that its 55% subsidiary, MAST Energy Developments PLC today announced that Close Leasing Ltd, a subsidiary of Close Brothers Group plc have offered facilities to MAST to fund the development and construction of the Company’s two owned Reserve Power projects currently in development, Bordesley and Rochdale. The facilities are offered subject to the successful completion of due diligence (including legal, technical and financial and other relevant regulatory checks and approvals. Final details of the facilities will be confirmed at financial close.

Marlowe 920p  £13m (MARL.L)

The leader in business-critical services and software which assure safety and regulatory compliance, announces that it has entered into a binding agreement to acquire Riskwize Limited and its wholly owned subsidiary EssentialSkillz Limited for £25m. EssentialSkillz, a leading provider of eLearning and compliance SaaS. The Acquisition will increase Marlowe’s run rate revenues and adjusted EBITDA to c.£335m and c.£60m respectively, with an underlying Divisional EBITDA margin of c.19%. Software Annual Recurring Revenues increased by the Acquisition to c.£35m, achieving medium term Digital target of 10% of Group revenues being generated from SaaS. The Board has confidence in achieving the Group’s stated target of £100m run rate adjusted EBITDA by the end of FY2024, ahead of the original target set out in February 2021. Proposed placing to raise £50m to fund the Acquisition and further near-term accretive bolt-on acquisitions.

Mission Group 69.5p  £63.25m (TMG.L)

The creator of Work That Counts comprising a network of 15 Agencies delivering real, sustainable growth for its Clients, announces the acquisition of Soul, a leading customer engagement Agency, and provides an update on trading.  Based in London, Soul is a full-service customer engagement Agency that works with psychologists to help businesses better understand human nature and human behaviour. This means they can advise their clients, leading brands such as Genting, John Lewis Finance, Michael Kors and SSE, on what motivates and drives customer decision making. Trading during the second half of 2021 to date has been as expected and the Group is currently on track to deliver a full year performance in line with the Board’s expectations. The Board remains confident that the Group will continue to benefit from the removal of lockdowns and the general return to a more ‘business as usual’ economy, continuing MISSION’s sequential recovery.

One Heritage Group* 49.5p  £16.1m (OHG.L)

The UK-based residential developer focused on the North West of England  announced its audited results for the year ended 30 June 2021. The Group raised a gross amount of £1.5m via the Initial Public Offering in December 2020 and a subsequent placing and subscription in February 2021 raised £548,500. Generated revenue of £0.5m from a combination of development management and Co-living. The former includes fees from two of its three development management agreements. Signed two construction finance agreements for a gross amount of £5.5m, to be drawn down over the period of development for the Bank Street, Sheffield and Oscar House, Manchester projects. The maximum term for both loans is 18 months. Increased the size of its Group loan facility with its major shareholder, One Heritage Property Development Limited, from £5m to £7.5m. Started construction on three developments set to complete in the 2022 financial year, with two remaining developments expected to complete in Q3 2022. These combined comprise a total Gross Development Value (GDV) of £26.3m. Secured pre-sales or reservations on 63 out of the 171 existing development properties, including 100% of the Oscar House development after securing an agreement over all  the units.

Synairgen 165.7p  £333.6m (SNG.L)

The respiratory company developing SNG001, a formulation for inhalation containing the broad-spectrum anti-viral protein interferon beta (IFN-beta) for the treatment of severe viral lung infections, has been informed that the external data safety monitoring board (DSMB) of the ACTIV-2 study has recommended that SNG001 advance into Phase 3 in mild to moderate COVID-19 patients.

TMT Investments* US$9.3  US$269.7m (TMT.L)

The venture capital company investing in high-growth technology companies, yesterday announced a portfolio update.  TMT notes that its portfolio company Backblaze, Inc. publicly filed with the SEC on 18 October 2021 ( https:// www.sec.gov/Archives/edgar/data/1462056/000119312521301141/d62601ds1.htm ).  TMT currently holds a 9.97% interest in Backblaze, Inc. (pre its expected fundraise, as stated in the SEC filing). Further announcements will be made in due course. On 14 October 2021, Delivery Hero SE, one of the world’s leading local delivery platforms, announced that it had entered into an agreement with TMT’s portfolio company, Hugo Technologies Ltd. (“Hugo”), to acquire its multi-category marketplace’s core food delivery and quick commerce business. Founded in 2017, Hugo is currently active in over 40 cities across Guatemala, El Salvador, Honduras, Nicaragua, the Dominican Republic and Jamaica. The transaction is expected to close in Q1 2022 and is subject to relevant regulatory approvals. The proposed disposal by Hugo is expected to generate an uplift of approximately US$2m in the fair value of TMT’s investment in Hugo compared to the previous announced amount as of 30 June 2021. The Company has also made the following new and further investments: US$500k in Adorum, Inc., trading as OneNotary ( www.onenotary.us ), an online notary service; and an additional £1m in Feel Holdings Limited, a subscription-based multivitamin and supplement producer ( www.wearefeel.com ).

Salt Lake Potash SUSPENDED (SO4.L)

The directors of Salt Lake Potash Limited  resolved that it, together with other companies as set out below were insolvent or likely to become insolvent at some future time and that administrators should be appointed to the Companies. The directors of the Companies further resolved that Martin Jones, Thomas Birch, Hayden White of KPMG Restructuring be appointed as Voluntary Administrators of the Companies pursuant to Section 436A of the Corporations Act 2001 (Cth). The appointments of the Administrators followed ongoing discussions between the Companies, the Companies secured creditors and other key stakeholders. A further update in respect of the Companies operations and the restructure / recapitalisation process will be released to the market in due course.

System1 Group  275p  £35.5m (SYS1.L)

Update on trading for the six months to 30 September 2021.  The first half of the current year (H1) saw a marked increase in sales of automated data products including Test Your Ad. Data products represented 45% of Revenue in Q2, growing from 28% in Q1. Data Revenue in Q2 exceeded Q1 despite a quarter-on-quarter reduction in total Group Revenue. The Group’s H1 Revenue grew 22% on last year to £12.3m. Adjusted Operating Costs grew as planned as the Group continued to invest in automated products, technology and business development, increasing by 10% over the comparable period to £9m.  Adjusted Pre-tax Profits are expected to be some £1.3m in H1, approximately £0.9m higher than in the comparable period. Statutory Pre-tax Profits are expected to be £1.3m compared with a loss of £0.4m in the first half of last financial year.

What’s cooking in the IPO kitchen?

Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie ‘Publisher of the Year 2021’ by GamesIndustry.biz. Offer TBA. Due early Nov.

Life Science REIT to join AIM  raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure to an attractive and growing real estate sector. Due mid  Nov.

Alinda Capital Infrastructure Investments to join the Specialist Fund Segment of the Main Market of the London Stock Exchange raising up to £350m. Due Late November.

Nu-Oil and Gas  to acquire Guardian Maritime Ltd and Guardian Barriers IP Ltd and join the Main Market (Standard). Guardian is a technology group that supplies products to prevent unauthorised entry into areas that are deemed to have value, with maritime security being the main focus initially. Subject to shareholder approval, admission will take place during Q4 2021. The Company will change its name to Guardian Global Security plc.

ProCook, the UK’s leading direct-to-consumer specialist kitchenware brand, is considering applying for admission of the Shares to the Main Market (Premium). ProCook’s revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Timing TBA

Silverwood Brands, an investing company established to identify investment opportunities including, but not limited to, in the foods, organic food, wellness, lifestyle and leisure sectors, targeting admission on  the to join the AQSE Growth (Access). Due November 2021. Offer TBA.

Kasei Holdings, a technology specialist investor that focuses on cryptocurrencies and blockchain technologies, due to join the AQSE Growth Market 27 Oct. No funds being raised.

Following the previously announced intention to demerge trading on the London Stock Exchange plc’s Main Market on 2 November, Hostmore plc from Electra Private Equity PLC, Hostmore announces that, subject to approval by Electra shareholders, it is expected that the Demerger will be completed and the Hostmore shares will be admitted to the Premium Segment of the Financial Conduct Authority and to generated from operations over the 3 complete months following the resumption of indoor dining in England on 17 May 2021 (i.e. June to August 2021) was £12.5m. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st.

Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services  is considering an initial public offering Main Market (Premium).  In the six months ended 30 June 2021, Rubix generated Revenue from Ongoing Operations of EUR1,312m and Adjusted EBITDA of EUR123m (9.4% Adjusted EBITDA Margin from Ongoing Operations), an increase of 10.6% and 19.3% compared to the six months ended 30 June 2020, respectively. Raising proceeds equivalent to approximately EUR850m, and additionally may also include the sale of existing ordinary shares by current shareholders. Timing TBA

Firering Strategic Minerals to join AIM, a holding company for a group of exploration and development companies set up to focus on developing assets towards the ethical production of critical metals. The Company’s portfolio of assets is located in Côte d’Ivoire and contains projects that the Directors believe to be prospective for lithium and columbite-tantalite. Due Early Nov. Offer TBA

Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company’s investment objective is to provide investors with an attractive and sustainable level of income returns, with the potential for capital growth, by investing in commercial scale energy storage  and renewable energy generation projects, with an initial focus on a diversified portfolio of battery energy storage systems located in Great Britain. The Company has contracted with Tesla Motors Limited in respect of its initial portfolio of battery storage projects, to be acquired on IPO, which will benefit from Tesla’s 2-hour duration Megapack systems and Autobidder AI revenue optimisation platform. Due Early Nov.

Stelrad Radiator Group,  the specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, is considering an IPO on the Main Market (Premium). Potential secondary and primary (c.£25m) offer. Early Nov.

Pantheon Infrastructure to join the Main Market (Premium). PINT will target attractive risk-adjusted total returns comprising capital growth and a progressive dividend through making equity and equity-related investments in private infrastructure assets alongside other leading private asset investment managers. Due Mid Nov.

Quantum Exponential to join AQSE. The Company intends to identify investment opportunities in the quantum technology sector primarily in the NATO allied countries. The Company has identified over 175 start-ups which potentially meet their investment strategy with a focus on seed funding for start-ups with second stage funding plans in preparation. Offer and timing TBA.

Pod Point, one of the United Kingdom’s leading providers of Electric Vehicle charging solutions is considering a Main Market (Premium) listing. As at 30 June 2021, Pod Point had installed more than 89,000 home charge points and over 13,000 commercial units, including those located at workplaces and destination locations (such as shops and leisure attractions).  Timing and offer TBA.

Tungsten West to Join AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world’s third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3.  Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m. Expected 21 Oct.

Softline  the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential initial public offering of global depositary receipts representing its ordinary shares. The Company is considering applying for admission of the GDRs to the standard listing segment of the Official List of the FCA and to trading on the Main Market for listed securities and on Moscow Exchange.  The Group had a turnover of US$1.8 bln for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets.  Primary proceeds from the Offer are expected to be around US$400m. Due Late Oct.

Marks Electrical, a fast growing online electrical retailer, announced its intention to proceed with an initial public offering and to seek admission to trading on AIM. Marks Electrical sells, delivers, installs and recycles a wide range of household electrical products.  In the year to 31 March 2021 revenue grew to £56m, up 78% against the previous financial year, while EBITDA increased to £7.45m, at a 13.3% EBITDA margin. The Group has made a strong start to its current financial year to 31 March 2022, with revenue growth of 78% in H1 FY2022, versus 47% growth in H1 FY2021.  Offer TBA Admission is expected to take place in early Nov 2021.

Future Metals NL (ASX:FME) (formerly named Red Emperor Resources NL) to join AIM. No funds being raised. Future Metals is a platinum group metals exploration and development company that holds a 100% interest in the Panton PGM Project in Western Australia. The Panton Project comprises 3 granted mining leases (M80/103, M80/104 and M80/105), which cover an area of approximately 23km2 and are located 60km north of Halls Creek and 1km from the Great Northern Highway, in the East Kimberly region of Western Australia. The Panton Project has a JORC (2012) Mineral Resource Estimate of 14.3Mt at 2.19g/t platinum, 2.39g/t palladium, 0.31g/t gold, 0.27 per cent. nickel and 0.08 per cent. copper. Due 21 October. Mkt cap c£35.8m.

M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On Admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully let to 53 occupiers. Rent collections for Q2 2021 stand at 93% and are expected to revert to 100% in the coming quarters.

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. It pushed back its AIM float on 30th September from end September to late October. The amount to be raised is still yet to be confirmed.

*A corporate client of Hybridan LLP

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