Hybridan Small Cap Feast

14 mins. to read
Hybridan Small Cap Feast

Joiners: Petershill Partners (PHLL.L), has joined the Main Market (Premium), 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 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%.The Offer Price has been set at 350 pence per Ordinary Share. £4bn mkt cap. Total offer of £1.2bn

GreenRoc (GROC.L), has joined 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.

Leavers: No leavers today.

Banquet Buffet

4Basebio  685p  £84.4m (4BB.L)

The specialist life sciences group focused on exploiting intellectual property in the field of cell and gene therapies and DNA vaccines, has commenced the development of its pilot clean room project for the purpose of manufacturing GMP standard DNA. The manufacturing capacity is being developed in a dedicated 4,400 square feet facility with the installation expected to be completed before the end of 2021. The Facility will provide for seven DNA production suites which, when fully operational, will be capable of generating quantities of DNA with a value in excess of £25m per annum (based on current market prices and depending on customer order batch sizes). Once completed, the Facility will undergo testing and validation with a view to becoming operational during H1 2022. The Company then plans to manufacture and sell research and pre-clinical grade DNA while working towards securing GMP accreditation.

AB Dynamics 2000p  £452m (ABDP.L)

The provider of advanced testing systems, simulation products and testing services to the global automotive and mobility sectors, provides a trading update and details of the launch of ABD Solutions in advance of the publication of its results for the year ended 31 August 2021. The Group performed well during the second half of the year, managing supply chain disruption and currency headwinds effectively in order to meet the strengthening in demand during the period. Revenue for the second half of the year was approximately 20% higher organically than the COVID-impacted H2 2020 and approximately 40% higher on a reported basis, including the contribution from Vadotech Group (“Vadotech”) which was acquired in March 2021. As a result, the Board expects to report revenue for FY21 of ca.£65m. With the business responding well to the continued recovery, reflecting the impact of the strategic enhancement initiatives implemented in the last 18 months, the Board anticipates that the Group will deliver full year adjusted operating profit for FY21 in line with current consensus expectations.

EKF Diagnostics Holdings 82.7p  £376m (EKF.L)

EKF has agreed to acquire the entire issued capital of Advanced Diagnostic Laboratory LLC (ADL Health), a Texas based PCR-focused testing laboratory certified under the Clinical Laboratory Improvement Amendments (CLIA) for high complexity testing, for an initial consideration payment of $10m payable in shares on completion, with further performance-based consideration payable over the following three years. ADL Health’s CLIA-certified laboratory covers the fields of clinical, forensic and microbiological tests. The business has ISO 15189 Medical Laboratory accreditation giving it recognition in 44 countries and reflecting ADL Health’s commitment to high standards. Using its expertise in Polymerase Chain Reaction (PCR) testing, ADL Health also provides COVID testing needs for dozens of Fortune 500 companies and government agencies. In addition, ADL Health is expanding its range of testing capabilities across a broader suite of healthcare applications. Under EKF’s ownership, further investment is anticipated to support the deployment of additional equipment and personnel in order to service customer demand. ADL Health was founded in May 2020 by a management team with over 60 years’ experience in the diagnostics field. Unaudited management accounts for the six months to 30 June 2021 showed revenue of $6.3m and EBITDA of $2.6m.

Harvest Minerals 3.85p  £7.15m (HMI.L)

The remineraliser producer, announced that it has commenced construction of a solar power facility that will meet all the power requirements at its Arapua Fertiliser Project in Brazil. Construction of a solar power facility to supply 100% of Arapua’s power needs expected to be commissioned within five months. Modular design to enable capacity to be increased as production is ramped up. Operating expenditure (mining and processing) to be reduced by 8% because of reduction in energy costs, in line with the Company’s strategy to make Arapua carbon-free.

Jadestone Energy 88.5p  £410m (JSE.L)

The independent oil and gas production company focused on the Asia-Pacific region announced that the Montara H6 development well has been successfully tied into the field facilities and commenced production.  The well delivered an initial rate, after clean-up, approaching 10,000 bbls/d and following a period of well performance testing will be stabilised at around 3,000 bbls/d, as per guidance. The Valaris 107 rig has made the short move to the Skua-10 and Skua-11 workover location, and operations on Skua-11 have now commenced. 

Rockfire Resources 0.93p  £10m (ROCK.L)

Update on exploration programme currently underway at the Company’s 100%-owned Copperhead porphyry project in North Queensland, Australia. Drilling of the first two exploration holes is complete and a third hole is currently in progress. Rockfire’s geologists are logging abundant, narrow, mineralised veins throughout each hole, including veins hosting both copper and molybdenum minerals. Drillhole BCH001, the first hole, was drilled to 501.40 m and copper-bearing veins have been recorded from 8.0 m to the end of hole. Chalcopyrite (copper sulphide) veins are still being recorded at 500.87 m. Vein frequency varies through each hole, which is in line with expectations from historical drill holes at Copperhead. The frequency of veins bearing visible chalcopyrite fluctuates dramatically throughout the hole, with some sections recording < 1 vein/m and other sections hosting up to 8 veins/m. Multiple orientations of the copper-bearing veins are being recorded, with the majority (but not all) chalcopyrite veins striking west-northwest and northwest and dipping very steeply both northeast and southwest. At the bottom of hole BCH001, a weak increase in alteration magnetite is observed and is likely to be the cause of a weakly elevated magnetic response at depth. Geotechnical and geological logging is well advanced and core cutting and sampling is in progress. Rockfire will continue to update the market with  progress, including results as they are received for each hole. Several example photographs of chalcopyrite-bearing veins from the Copperhead drill core can be viewed by following the link provided.  http://www.rns-pdf.londonstockexchange.com/rns/1217N_1-2021-9-27.pdf

Strategic Minerals 0.45p  £8.6m (SML.L)

The profitable producing mineral company, announced that its 100% owned subsidiary Cornwall Resources Limited has successfully completed a trenching and auger exploration program, to investigate the possible presence of extensions of mineralisation to the west of the established Redmoor resource. Significant tin result in trench CRT01, peaking at 0.38% tin over a 2m sample interval and with nearby mineralisation spanning an overall width of 20m. Peak tin values of 0.87% and 0.20% tungsten generated from close-spaced auger sampling within a 60m long anomalous area of greater than 0.10% tin. Future new drill target areas identified. Auger sampling and gravity work ongoing under the Deep Digital Cornwall collaboration.

Xtract Resources 4.6p  £38.9m (XTR.L)

Laboratory assays have been received from the first drill hole (BRDD-21-008) completed on the Phase Two diamond drilling programme at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt of New South Wales, Australia. Assay results for the first angled hole of the Phase 2 exploration drilling at the Racecourse porphyry deposit, confirm high grade copper mineralisation at shallower depths than drilled during the Phase 1 exploration drilling programme. These assay results have enhanced the theory of intersecting high-grade mineralisation at shallower depths within the mineralisation system associated with the high-grade “crown”. The results are very supportive of an open pit objective, and include ( BRDD-21-008) o  184m @ 0.51% CuEq from 204m § including 9m @ 0.90% CuEq from 204m § and 46m @ 0.72% CuEq from 252m, including 8m @ 1.41% CuEq from 290m § and 26m @ 0.77% CuEq from 332m.  The highest-grade intercept returned 1.8% Cu within a 2m interval from 292m. Increased gold grades were intercepted from 446m with an intercept of 12m @ 0.6 g/t Au and the company intends to model this higher-grade ore shoot. Phase 2 drilling programme at Racecourse continues with BRDD-21-020 and BRDD-21-021 underway.

What’s cooking in the IPO kitchen?

Castlenau Group to join  the Specialist Fund Segment of the LSE’s Main Market. Castelnau was incorporated with limited liability in Guernsey under the Companies Law on 13 March 2020 as a closed-ended company limited by shares. The Company’s investment objective is to compound shareholders’ capital at a higher rate of return than the FTSE All Share Total Return Index over the long term. The Company is targeting an issue in excess of £170m. Sir Peter Wood, British entrepreneur and innovator, has committed to make a cornerstone investment of £25m  in the Initial Placing. Due 18 Oct.   

Tortilla Mexican Grill, the largest and most successful fast-casual Mexican restaurant group in the UK to join AIM. Offer TBA. Due 8 Oct

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.   Total offer  £85.4m. Primary £15m. Mkt cap £180.6m. 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 29 September. Total offer £112m. £40m primary. Market cap £280m.  In FY21 the Group continued its strong performance momentum, generating revenues of £196.8m, up from £95.5m in the previous year.

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.

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

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