Hybridan Small Cap Feast

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Hybridan Small Cap Feast

Joiners: Alkemy Capital (ALK.L) has joined the Main Market Standard. The Company was formed to undertake an acquisition of a controlling interest in a company or business, targeting an acquisition in the mining and technology metals sectors. At the Placing Price and on Admission the Company will have a Market Capitalisation of £2,999,999.50.

Leavers: No leavers today.

Banquet Buffet

1Spatial 44p  £48.6m (SPA.L)

The specialist  in Location Master Data Management (LMDM) software and solutions announced the award of a major new multi-year contract following a competitive tender, in partnership with a consortium. The contract will deliver a significant multi-year digital transformation programme for a department of the UK Government. The 5 year contract is expected to have a total value to 1Spatial of £8m, with a significant weighting towards recurring revenue. The contract comprises recurring software licences (around £1.2m ARR value, expected to commence in early 2023) and software configuration and integration services worth £8m in aggregate over five years, of which £2.1m is expected to be delivered over the next two financial years. Both the software configuration and integration services and the first three years of software licences within the contract are contractually committed, delivering approximately £5.6m of revenue to the Company. As a result of this contract award, the Company anticipates that revenue and EBITDA for FY23 (being the year ending 31 January 2023) will be slightly ahead of its expectations, whilst also driving growth in ARR over the term of the contract. The contract win underlines the quality of 1Spatial’s world-class technology and geospatial expertise, and the ability of the business to scale through the sale of repeatable business applications and software solutions.

Beeks Financial Cloud  189p  £106m (BKS.L)

The  cloud computing and connectivity provider for financial markets, provided an update on trading, following recent significant contract wins, including the first for the newly launched Proximity Cloud offering.  The Group has continued to successfully deliver against its strategic objectives, achieving record sales in excess of $5m of total contract value through July, August and September, ahead of Board expectations. Consequently, the Group’s annualised committed monthly recurring revenue has increased to £15m (30 June 2021: £13.8m) and the Group will recognise an additional £1.3m of revenue from non-recurring product related bookings during the year from signings to date. The Board now anticipates revenues for the year ended 30 June 2022 will be ahead of current market expectations. The additional revenue will be reinvested in the further development of the Proximity Cloud offering, to capitalise on its growing sales pipeline and significant market opportunity.

Bluejay Mining 11.45p  £111.25m (JAY.L)

The exploration and development company with projects in Greenland and Finland, announced the approval and extension of further exploration expenditure by the Company’s joint venture partner Rio Tinto Mining and Exploration Ltd at the Enonkoski nickel-copper-cobalt (‘Ni-Cu-Co’) Project in eastern Finland as part of the JV & earn-in agreement with Rio Tinto Mining and Exploration Ltd announced on 10 November 2020. The Enonkoski JV drilling phase commenced in May-June 2021, and targeted mineralisation in the near-mine areas Tevanjoki and Laukunsuo and was followed by a period of analysis carried out by the JV partners. Based on drilling and the continuous evaluation of existing data and the regional belt, the drilling is being continued. Geological mapping and sampling has been ongoing at the Enonkoski Belt, historical drill core has been relogged and sampled, a top of bedrock sampling programme commenced in mid-August and a detailed approximately 2000 line kilometre Vertical take-off fixed-wing UAV 3C magnetic survey was finished in early September. Planning for the upcoming diamond drill programme is ongoing and preliminary plans include 3,000-4,000 metres of drilling to be conducted in October-December 2021 at several target areas on the belt.

Crossword Cybersecurity* 33.5p  £25.1m (CCS.L)

The technology commercialisation company focused solely on cyber security and risk, today announced HY June 2021 results. Total revenue increased by 22% to £824,923. Product and Consulting revenue increased by 30% over the same period in the prior year. Consulting recurring revenue increased by more than 85% over the same period in the prior year. Total comprehensive loss for the period was £1,546,188, an increase of £152,995 over the same period in the prior year. The increase is due to additional overheads, particularly for legal and professional fees, as a result of corporate activities such as fund raise, acquisition, and share split, during the period. Cash and Cash Equivalents at 30 June 2021 were £682,407. In July 2021, undertook an oversubscribed fundraising of approximately £5.0m at a price of 30 pence per share. Cash at 31 August was £4.1m. With the team CCS has in place and a strengthened balance sheet, Crossword will continue to drive growth and expects to meet market expectations of 50% revenue growth in 2021. Looking towards 2022, the Board is confident of delivering further growth, taking revenue to £4m for that year.

Destiny Pharma 119.5p  £71.5m (DEST.L)

The  clinical stage biotechnology company focused on the development of novel medicines to prevent life threatening infections, announced that the Company’s China regional partner and investor, China Medical System Holdings Limited (CMS), is establishing a new programme with XF-73 targeting the prevention and treatment of superficial skin infections caused by bacteria. The programme will be run in China and will be focused on delivering a novel product in the local regulatory environment. The project will be led, managed and funded by CMS. Destiny Pharma will contribute scientific advice as required through a steering committee to the expert dermatology team at CMS. CMS has an extensive portfolio of dermatology assets and an expert understanding of the market and its requirements through its existing sales and marketing infrastructure. Destiny Pharma has cross-reference rights to data generated from the programme and, in the future, could start a similar skin infection clinical programme focused on commercial territories outside those held by CMS (China and other Asian countries excluding Japan).

Futura Medical 39.30p  £114.8m (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 Labatec Pharma, a Swiss-based specialty pharma Company focused on commercialisation in Europe and the Middle East and North Africa regions, for the rights to exclusively commercialise the Company’s topical, gel-based Erectile Dysfunction treatment MED3000, in the Gulf Co-operation Council (“GCC”) region as well as Jordan, Lebanon and Iraq.

GCM Resources 5.1p  £7m (GCM.L)

The mining and energy company, has noted and reviewed the Chinese President’s address to the United Nations General Assembly, with particular attention to the comments regarding Developing Nations and Climate Change, and provide the following context statement in relation to the Phulbari Coal and Power Project. GCM note that the President stated that as the world emerged from this pandemic, efforts to revitalise economies would also include the pursuit of “greener”, more balanced development and a need for inclusive growth. In this regard he stated China would step up efforts to assist Developing Countries access “green” and “low carbon” energy, and that China would not build new coal-fired power projects abroad. It is noted that no further details were provided, there has been no immediate change in China’s policy and the impact on China’s future financing of coal-fired power projects would not really be understood until a policy is framed and it is seen how that policy is implemented. GCM remain committed to delivering the Phulbari Coal and Power Project in a form that fits in with the Bangladesh Government’s Energy and Power Sector development ambitions. Paramount to the Project’s success is the Phulbari coal mine that can support over 6,000MW of power for some 30 years. The Bangladesh Government has indicated coal-fired power will remain significant in its strategic energy mix for several decades. Whilst the option remains to install power plants at the Phulbari coal mine site, there is also the potential to supply coal to the country’s already commissioned and under construction coal-fired plants. In this scenario, Greenhouse Gas emissions from shipping that quantity of coal to Bangladesh would be eliminated. Extraction of that coal at Phulbari may also take advantage of developments in “zero emission” mining equipment and the real possibility of powering that equipment with solar power installed within the project area. The project site could support the installation of solar panels for grid connection as well.

Maestrano 14.25p  £24.25m (MNO.L)

The artificial Intelligence platform for transport corridor analytics announced its subsidiary Cordel Inc has formed a partnership with leading US rail inspection company Holland, L.P. The partnership will significantly increase Cordel’s market reach in North America, and its exposure to potential new customers. Holland provides geometry, rail wear, and track strength testing services for over 120 freight, transit, short line, and other customers in North America, covering more than 80,000 miles of rail track. The joint service has generated significant interest from customers across North America, and has already secured a first contract with a major metropolitan railway network. The partnership means a number of Holland track inspection vehicles will carry Cordel hardware for contracted services. As these vehicles conduct track inspections, the Cordel hardware will collect LiDAR, video and positioning data. Cordel’s automated software platform will process, verify, and index the data to deliver actionable insights on the state of the line via a secure cloud-based web interface to Holland’s customers, who will benefit from receiving, within days, survey-grade point clouds and high-definition video of inspected areas.

Music Magpie  174p  £187.5m (MMAG.L)

The re-commerce business in the UK and US specialising in refurbished consumer technology, announced the launch of a sustainability partnership with Asda. The ground-breaking partnership will create a circular ecosystem that will prevent thousands of tonnes of consumer technology and media products ending up as waste. It will entail: The roll-out of musicMagpie’s innovative SMARTDrop kiosks across Asda stores; The launch of an affiliate agreement which will give Asda customers the chance to buy and sell pre-owned consumer technology and media items with musicMagpie through the Asda website and mobile app; The continuation of musicMagpie’s pre-existing relationship with Asda, whereby musicMagpie’s pre-owned DVDs and CDs have been available to buy in Asda stores since August 2020.

Semper Fortis Esports* 2.2p  £9.1m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, will be live participating in the upcoming eSoccer Aid event for UNICEF this Thursday, 30 September. The event is being produced by Twitch Rivals in partnership with EA and UNICEF. The company will be represented by Ambassador Dominic Calvert-Lewin in a live streamed showcasing of the event ‘Team England vs. Team Soccer Aid World’ competing in the newly released FIFA 22 alongside other celebrity football talent. The event will not only unlock a large donation to UNICEF but also encourage engagement of EA Sports FIFA players worldwide with UNICEF’s work. The event will be live streamed on Twitch directly through the company’s SMPR Esports Twitch channel: https://www.twitch.tv/smpresports .

What’s cooking in the IPO kitchen?

Press reports that Law firm Mishcon de Reya has agreed a merger with life sciences specialist Taylor Vinters after recently confirming its plans to go public on the London Stock Exchange (LSE).

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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