Hybridan Small Cap Feast

14 mins. to read
Hybridan Small Cap Feast

Joiners: Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins,  has joined AIM, alongside a fundraise of approximately £8.8m.

Leavers: No Leavers Today.

 Banquet Buffet

Castillo Copper 2.15p  £30.80m (CCZ.L)

The base metal explorer primarily focused on copper across Australia and Zambia, announces the completion of the Induced Polarisation (IP) survey campaign at the Luanshya Project in Zambia’s copper-belt, identifying up to 14 targets for test-drilling which potentially comprise disseminated copper sulphide mineralisationHighlights include: Up to 14 chargeable zones identified in the recent IP survey, within a 6km zone of copper surface anomalism, which represent excellent drill targets at the Luanshya Project. Modelling was undertaken by CCZ’s consultant geophysicist, who interpreted the IP survey results, which covered the 6km long soil anomaly, which were defined after extensive soil sampling campaigns. The geophysicist noted there are “several zones of high chargeability with associated copper anomalism, which are potential bodies of disseminated copper sulphide mineralisation”.

ECR Minerals 1.675p  £16.5m (ECR.L)

The gold exploration and development company focused on gold exploration in Australia, provides an update on drilling progress at historic reserve number 4, otherwise known as ‘Cherry Tree’, which is part of the Company’s Bailieston Project.  Total of 1545 metres of diamond drilling has been completed to date at the Cherry Tree prospect. The company is currently drilling the final drillhole (BCTDD010) before moving back to complete drilling of the HR3 ‘Byron’ area. Visual examination of drill core BCTDD009 shows the most intense quartz-sulphidic vein drilled to date at Cherry Tree. Orientated diamond core has delineated sulphidic fault zones containing broad low-grade gold mineralisation emanating from a central anticlinal hinge zone.

Good Energy Group 322.50p  £53.7m (GOOD.L)

The 100% renewable electricity supplier and innovative energy services provider, announces it has partnered with Barrow Green Gas (Barrow) for shipping services. The agreement ensures continuity for Good Energy’s gas customers and builds on the renewable supplier’s longstanding relationship with Barrow. Nigel Pocklington, Chief Executive Officer of Good Energy, said: “Partnering with Barrow not only ensures there is no disruption to the service we provide our customers, it also builds on a valuable and longstanding partnership we have with the UK’s leading green gas business.”

Kore Potash 1.20p  £40.5m (KP2.L)

The potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo, provides the following quarterly update for the period ended 30 September 2021. Kola Project; The process to potentially finance the construction of the Kola Potash Project progressed in line with the Memorandum of Understanding signed with the Summit Consortium in April 2021. The Optimisation Study on the Kola Project remains on track for completion in Q1 2022. The Company expects to receive an interim report on the Study within weeks. Work commenced developing an updated geological model for the DX deposit which is expected to be completed in Q4.

Longboat Energy 84.50p  £8.5m (LBE.L)

The emerging full-cycle North Sea E&P company with a portfolio of significant, near-term, low-risk exploration assets, announces a material discovery at the Egyptian Vulture exploration well in PL939 (Company 15%), the second well in its fully-funded, seven well exploration programme. The exploration well 6407/1-9 in the Norwegian Sea encountered light oil in the primary target in the Lower Cretaceous (Cenomanian) Intra-Lange Formation. The top of the reservoir was reached close to prognosis at a vertical depth of 3,684 metres below sea level with 13 metres net sand in a 37 metre oil filled gross interval. The upper part of the Lange sand interval has a high net to gross ratio and porosities in the order of 16 %. An extensive programme of data acquisition and sampling has been carried out and the preliminary analysis of the oil sample indicates a very light oil. The oil-water contact was not encountered. The operator’s preliminary estimate of recoverable resources in the Egyptian Vulture discovery is 19 to 63 MMboe (gross) and the oil-in-place volume has been estimated at 220 to 440 MMboe (gross).

Northcoders 202p  £14m (CODE.L)

An independent provider of training programmes for software coding, announces that it has been awarded the ‘Rapid Growth Award’ at the prestigious Prolific North Tech Awards 2021. Chief Executive Officer, Chris Hill, commented: “We are proud of the role we play in our Northern technology community in helping to address the digital skills gap, and believe our coding and software training plays a pivotal role in ensuring the long term success of our sector.”

Sareum Holdings* 6.50p  £220.5m (SAR.L)

The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of autoimmune diseases and cancer, announces its audited results for the year ended 30 June 2021. Highlights include: raised £2.37m before expenses in June 2021 through two subscriptions by a high net worth individual and a further £2.18m (before expenses) in July and August 2021 through share subscriptions by two additional high net worth individuals plus an exercise of warrants. Cash at bank as of 30 September 2021 of £4.4m. Progress made advancing SDC-1801 with preclinical phase nearing completion. Exploratory CTA now expected to be filed mid-2022 owing to the additional time needed to manufacture capsule drug product, and subject to successful completion of final toxicity and safety studies. For SRA737, Sierra Oncology, continues to explore options for continuing development and Sareum believes that the licensing agreement amendment will prove important in expediting this developmentThe Company will be holding a presentation to investors on Tuesday, 2 November 2021 at 11.00 a.m. via the Investor Meet Company platform: https://www.investormeetcompany.com/sareum-holdings-plc/register-investor

Symphony Environmental Technologies*  26.75p  £47.9m (SYM.L)

Global specialists in technologies that make plastic and rubber products “smarter, safer and sustainable” and Faust Innovations are delighted to announce a new Distribution Agreement for the sale of finished products made with Symphony’s technologies. Faust Innovations is a new company established by Roberto Fama and Henry Uscinski. Italian entrepreneur Roberto Fama created “Art of Hospitality” as a group of companies throughout Europe, the Middle East and Asia, with over 1500 employees, engaged in the management of human resources and supplies to hotels and resorts.  In 2017, he joined forces with Henry Uscinski, to develop a trading business with the focus on hotel amenities, innovative cleaning tools, consumables and disposable medical products.  Symphony’s CEO, Michael Laurier said: “Symphony provides a wide range of innovative products under its d2w and d2p brands which will be very useful in the hospitality industry…..to introduce our products to this important market, initially in Japan, Thailand, the UAE and Hong Kong.”

Zephyr Energy  6.95p  £89.7m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, provides an update on activity at its flagship project in the Paradox Basin, Utah where it recently drilled the State 16-2LN-CC well. Further to its announcement on 15 October 2021, Zephyr announces that the State 16-2LN-CC well has now been successfully and safely completed via hydraulic stimulation in the Cane Creek reservoir. The well was stimulated in fourteen separate stages across 4,020 feet of horizontal lateral wellbore. The stimulation utilised a total of 40,000 barrels of water, 2.4m pounds of sand and a cross linked gel fluid, all in line with pre-completion forecasts. Production testing operations will commence later today.  The Company will provide information on initial production test results after the well cleans up and when an adequate amount of data has been obtained, details of which the Company expects over the next few weeks. 

7digital Group 0.525p  £14.3m (7DIG.L)

The global leader in B2B end-to-end digital music solutions, announces that it has signed contracts with new and existing customers worth an aggregate total of £1m over the term of the contracts, of which over £700k has been secured within the last month and with the majority of the total to be recognised in 2022. The Company has won 3 new clients and secured four contract expansions and extensions, including within the Company’s key markets of music streaming and home fitness.

What’s cooking in the IPO kitchen?

ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas company which has incubated and financially supported ATOME to date, by way of a dividend in specie and flotation.

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. 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 become Guardian Global Security plc 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. Q4 2021.

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 LSE’s Main Market on 2 November, Hostmore plc from Electra Private Equity PLC, it is expected that the Demerger will be completed and the Hostmore shares will be admitted to the Premium Segment. 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 IPO on the 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 EUR850m, potential 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 invest 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. 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). Secondary and primary (c.£25m) offer. Early Nov.

Pantheon Infrastructure to join the Main Market (Premium). PINT will make investments in private infrastructure assets. Due Mid Nov.

Quantum Exponential to join AQSE. The Company intends to identify investment opportunities in the quantum technology sector. 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. Timing and offer TBA.

Softline, the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, is considering proceeding with a potential IPO of GDRs to the Standard listing segment of the Official List, and on the Moscow Exchange.  The Group had a turnover of US$1.8bn 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 IPO 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.

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 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 to late October. The amount to be raised is still yet to be confirmed.

*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).

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *