Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Altus Strategies 73p  £58.7m (ALS.L)

Altus announces the discovery of numerous hard rock artisanal gold workings from field reconnaissance at the Company’s Gabal om Ourada (346 km2) and Wadi Dubur (175 km2) projects, located in the Eastern Desert of Egypt. The Company’s 100% owned subsidiary, Akh Gold Ltd, holds gold exploration licences totalling 1,565 km2 in Egypt. The Licences were granted this year as part of a competitive international bid round undertaken by the Egyptian Mineral Resources Authority. 37 hard rock artisanal gold workings discovered across two Projects in Egypt. Longest working mapped for over 370 m, with five others mapped for over 100 m. Less than 50% of Company’s Licences have been visited to date. The discoveries validate the Company’s target generation process. A full technical and operational team has been established in Cairo. Comprehensive exploration programmes are anticipated to commence in Q4 2021.

Appreciate Group  27.25p  £50.8m (APP.L)

The  UK’s leading multi-retailer redemption product provider to corporate and consumer markets, today announces that Laura Carstensen has informed the Board of her intention to step down as Chairman as part of the Board’s succession plan. The Board will imminently commence a search process to appoint a successor and enable an orderly handover. Ms Carstensen will continue to serve as Chairman until the process is completed. An update will be provided in due course.

Botswana Diamonds 1.13p  £8.9m (BOD.L)

Botswana Diamonds, has successfully completed its nine hole drilling programme on the Thorny River property in South Africa. The objective was to see if two kimberlite blows (the River and River Extension blows were one contiguous orebody, thus increasing the overall resource and improving the commercial prospects of the project. Nine percussion holes totalling 483 metres, were drilled. One hole intersected 19.1 metres of kimberlite zone, which is encouragingly the biggest thickness found in all three drilling programmes to date. Another hole intersected a thickness of 13.5m of kimberlite zone. These two intersections came from extending the River Blow toward the Extension Blow. The average kimberlite zone intersection was between 1.5 and 5 metres. Work has now begun to create a model of the combined blows to estimate the potential resource with plans for a possible open cast mining. Two new additional targets have been identified close to the current area. These could also be blows, thus increasing resources.  They will be drilled. John Teeling, Chairman, commented, “This is an excellent set of results. The two blows are, as we hoped, connected – thus increasing the resource. The two thickest intersections close to the River Blow are particularly exciting. Given these results, we are now examining commercial mine alternatives”.

Diaceutics 111.5p  £93.8m (DXRX.L)

The diagnostic commercialisation company, announced that the Company has been named as a finalist in four categories at the Health Tech Awards 2021 organised by the UK’s Health Tech Newspaper, which seeks to celebrate the technology helping to shape the healthcare industry. The categories include Best Use of Data, Best Use of AI & Automation, Innovation in Digital Pathways and Excellence in Cloud Technologies. The HTN Awards help to share and celebrate digital teams, programmes, innovations, and health tech suppliers that have made a difference throughout the year.

Egdon Resources 1.60p  £8.3m (EDR.L)

The established exploration and production company focused on the hydrocarbon-producing basins of the onshore UK, provides an update on operations across its portfolio. Initial production from Wressle-1 surpassing expectation at 884 barrels of oil per day (“bopd”) and 480,000 cubic feet of gas per day on a restricted choke with no formation water seen. Plans to reduce production constraints and define plateau rate at Wressle-1. Planning application for the side-track drilling, testing and production at Biscathorpe to be heard in November.  Shell U.K. Limited advises that the 3D seismic survey over the Resolution and Endeavour gas discoveries has been delayed beyond February 2022. Detailed well design, facilities specification, and commercial modelling nearing completion for the phased redevelopment of the shut-in Waddock Cross oil field with a Final Investment Decision expected to be made by the end of 2021, which could lead to further drilling activity during 2022. Detailed reservoir engineering work underway at Keddington to support target selection for a side-track development well, which could be drilled in 2022 and access gross Mean Contingent Resources of 567,000 barrels of oil which remain to be produced. A programme to plug and abandon the existing Dukes Wood-1 oil well and recomplete this for geothermal heat production has been developed and will shortly be submitted to the HSE.

Europa Oil & Gas 1.45p  £7.5m (EOG.L)

The UK, Ireland and Morocco focused oil and gas exploration, development and production company, provided an update on the Wressle oil field development which is located on licences PEDL 180 and PEDL 182 in North Lincolnshire. Europa holds a 30% working interest in the Licences, alongside Egdon Resources U.K. Limited (30% and operator), and Union Jack Oil (40%). Following the successful completion of the coiled tubing operations on 19 August 2021, the Wressle-1 well has exceeded production expectations. The well has achieved instantaneous flow rates in excess of 884 barrels of oil per day (“bopd”) and in addition, 480,000 cubic feet of gas (c80 barrels of oil equivalent) per day from the Ashover Grit on a significantly restricted choke setting (30.5/64ths) and with high wellhead flowing pressure. No formation water has been seen as the well continues to clean up. 

Kooth 404p  £133.6m (KOO.L)

The digital mental health platform provider, announces unaudited half year results for the six months ended 30 June 2021. Strategic Highlights; Children and Young People: are contracted by more than 90% of NHS England CCGs (2020: 85%). Kooth Adult (early intervention for adults, via NHS) ‘whole population’ total contracts doubled in H1 vs 2020. Kooth Adult now represents £1.5m ARR. Kooth Work (employee wellbeing) growth into membership-based businesses included, for example, the Chartered Management Institute.  Ongoing investment in talent, technology, and outcome measures to deliver personalised, effective care. Financial Highlights; Revenues up 35% to £8.0m (H1 2020: £5.9m). Robust balance sheet with net cash of £8.8m provides capacity for investment. Annual Recurring Revenue (ARR) up 23% to £16.6m. Adjusted EBITDA up 135% to £1.1m. High quality of earnings: More than 90% revenues from contracts of 12 months or longer. More than 95% customer retention by revenue.

Rural Broadband Solutions* 3.53p  £10.7m (AQSE:RBBS)

The  significant provider of high speed broadband to rural areas of Great Britain, announces its unaudited half year results for the six months ended 30 June 2021. Financial Highlights: Turnover for the 6 months to 30th June 2021 increased by 13% to £396k compared to the 6 months to 30th June 2020. Turnover has been improving quarter by quarter since readmission in October 2020. Operational Highlights: Accredited with Ofcom code powers (in order to have physical infrastructure access in the first place). Accredited for Openreach use of infrastructure (access to all Openreach infrastructure). Completed the first phase of 100Gbps Dark Fibre network in Shropshire. As of 9th September, supplying 2,650 premises to our fixed wireless network (FWA) comprising approximately 270 masts / relays and multiple fibre connections. Made significant investment in its FWA network through enabling 10Gbps links between mast sites, and upgrades to broadcast and customer premise equipment. Now offering greater broadband speeds of up to 90Mpbs as a standard package; this is a significant increase from the current available speed of 30Mpbs.  3-year plan to extend gigabit-capable reach through fibre to the premises to over 50,000 properties within Shropshire alone of which at least 15,000 will be connected (this excludes certain premises that will only ever be able to be supplied through fixed wireless).

Tower Resources 0.41p  £8.6m (TRP.L)

The oil and gas company with its focus on Africa announced that the documentation of its farm-out to Beluga Energy Limited of a 49% non-operating working interest in its Thali Production Sharing Contract in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon S.A, is now finalised, and the package of documents is being submitted to the Minister of Mines, Industry and Technological Development today as per the Cameroon Petroleum Code. Completion of the farm-out is still subject to two conditions precedent: the financing contingency requiring Beluga’s shareholders’ approval, and the MINMIDT approval. The Company will notify the market when both conditions precedent have been met. Jeremy Asher, Chairman and Chief Executive Officer, commented: ” We cannot be sure how long the MINMIDT approval may take as it can be as long as 60 days, but we hope it will come much sooner, allowing us to complete the farmout sooner. But in the meantime we are moving forward with contract discussions regarding the rig and services, subject to the MINMIDT approval and conclusion of the farmout in due course.”

United Oil & Gas 2.53p  £16.28m (UOG.L)

The growing oil and gas company with a portfolio of production, development, exploration and appraisal announced an update on the drilling of the ASX-1X exploration well in the Abu Sennan licence, onshore Egypt. ASX-1X exploration well encountered at least 10m net pay in a number of oil-bearing reservoirs. Completion of the well and well-testing is now planned, and if successful, will be followed by an application to the Egyptian General Petroleum Corporation  for a development lease.

What’s cooking in the IPO kitchen?

Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag’s growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European integrated payments & mobility platform focused on the commercial road transportation industry. It makes life simpler for commercial drivers and operators across Europe through its unique combination of payments solutions, seamless technology, a data-driven digital eco-system and high-quality customer service. Due October.

Light Science Tech Holdings, the holding company of the Group’s contract electronics manufacturing  division, UK Circuits and Electronics Solutions Limited, and its controlled environment agriculture  division, Light Science Technologies Ltd  to join AIM. Due early Oct. Offer TBA.

Responsible Housing REIT to join the Main Market (Premium) 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. The Company will acquire and create quality, fit-for-purpose accommodation assets to cater for supported residents across a number of care sectors including adults and young people with learning disabilities, mental health issues, physical disabilities, addiction, those with support needs, those in need of temporary accommodation, the elderly and otherwise vulnerable individuals.

Made Tech, a provider of digital, data and technology services to the UK public sector to join AIM. Founded in 2008 and now with a headcount of over 240 across four UK locations (London, Manchester, Bristol and Swansea), Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform.  Offer TBA. Due 30 Sep.

Arrow Exploration, currently on the TSX Venture exchange to dual list on AIM. Arrow has a portfolio of operated and non-operated interests in producing Colombian oil assets, together with a producing Western Canadian natural gas asset. The Company also has interests in development assets in Colombia. The Company has interests in six onshore blocks in Colombia, held through Arrow’s wholly-owned subsidiary in Colombia, Carrao Energy S.A., and in oil and gas leases in seven areas in Alberta, Canada, held through Arrow’s wholly-owned Canadian subsidiary Arrow Holdings Ltd. Offer TBA. Due end Sep.

Marley Group, a UK leader in the manufacture and supply of pitched roof systems to the construction market , today announces that it is considering an initial public offering on the Main Market (Premium). In HY Jun 2021 revenues grew from £52.1m to £76m with underlying EBITDA more than doubling to £21.8m Timing and offer TBA.

Peel Hunt (to be renamed PH Capital), a UK mid and small-cap specialist investment bank, announces its intention to seek admission of its ordinary shares to trading on AIM. Admission is expected to take place on or around 29 September. In conjunction with a placing of Ordinary Shares  the Company will be conducting an intermediaries offer.

Oxford Nanopore Tech—to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. The Company has recently entered into a memorandum of understanding with Oracle Corporation whereby the two companies will explore collaboratively a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies. Separately, the Company and a vehicle controlled by Oracle have entered into a cornerstone investment agreement, pursuant to which such entity has irrevocably agreed, subject to certain customary conditions, to subscribe for £150m of a total raise of circa £300m. Due early Oct.

Fruugo.com  which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.

Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM late Sep. Offer TBA.

Petershill Partners, Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bn of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA

GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due late September

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.

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.

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.

*A corporate client of Hybridan LLP

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).


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