Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Leavers: Morrisons has left the Main Market following a takeover by a US private equity group.

Banquet Buffet

Chariot 7.85p  £49.99m (CHAR.L)

The Africa focused transitional energy company has signed a Memorandum of Understanding with a leading international energy group. The MOU relates to the key terms of gas offtake and partnering between the Parties in respect of the Anchois Gas Development within the Lixus licence, offshore Morocco. The key terms of the future gas sales agreements will be for c.40 mmscf/d, for up to 20 years on a take or pay principle, to underpin the development. In addition, an agreed framework process has commenced to establish a long-term partnership. The Parties will progress discussions with the view to signing final agreements to implement the Anchois Gas Development with targeted Final Investment Decision in 2022 and first gas in 2024.

Distil 1.55p  £10.24m (DIS.L)

The owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka, notes that Ardgowan Distillery Company Limited, a company in which Distil plc recently made a £3m strategic investment, has signed an equipment supply agreement with Briggs of Burton Plc in relation to Ardogwan’s new Malt Whisky distillery, planned for opening in 2023. Ahead of COP26 in Glasgow, Ardgowan has announced a partnership with Briggs, a globally recognised engineering company with extensive experience in the distilling industry, to realise its ambitious for a new multi-million-pound eco-friendly distillery near Inverkip, west of Glasgow. The partnership goal will be to deliver a carbon negative distillery in 2024 after an initial period of equipment testing and commissioning. 

Equals Group 68.5p  £122.85m (EQLS.L)

The fintech payments group focused on the SME marketplace has completed a material international payments transaction for a large corporate client that will contribute circa £1.5m to Group revenues in the current financial year. The transaction is one-off in nature but evidences the ability of the Group to attract large corporate clients through its state-of-the-art platforms. That, coupled with highly professional service levels, translates into increased credibility for the Group’s ability to act as a financial counterpart in major transactions.

Eurasia Mining 21.5p  £613.5m (EUA.L)

The palladium, platinum, rhodium, iridium and gold producing company, announced an update on the potential asset sale. Further to the proposal  from the credible party (on the potential asset sale announced via RNS on 12 May 2021), the Buyer has informed Eurasia in writing that it has successfully completed its due diligence. As announced via RNS on 30 September 2021, since the receipt of the Proposal in May for the potential acquisition of substantially all of the Company’s assets, additional interest from other parties is being considered by the Board. It is the Board’s intention to advance several options with advice from UBS, DLA Piper and other advisers. Until a transaction is finally concluded there can be no certainty that a transaction will occur or on what terms. Christian Schaffalitzky, Executive Chairman of Eurasia commented: “The Directors are delighted that we are advancing several transactions concurrently. We see competition for Nickel-Copper-PGM assets (with a similar basket of metals like ours and the assets included in our agreement with Rosgeo) increasing on a global scale “.

Fox Marble Holdings  1.31p  £5m (FOX.L)

The marble production company with operations in Kosovo and the Balkans, announces that it and will be supplied during the end of 2021 and has signed a new contract to provide processed marble to a project in Kosovo. Fox Marble will provide Alexandrian Blue and Alexandrian White marble from its quarry in Macedonia, which will be processed at Fox Marble’s factory in Lipjan in Kosovo. The value of the contract is expected to be in the region of EUR100k  and will be supplied during the end of 2021 and 2022.

Gulf Investment Fund US$1.69  US$79.7m (GIF.L)

Further to the announcement on 8 October 2021, the Board of Gulf Investment confirms that all assets in the Tender Pool have been sold. 26 October 2021 will be the Tender Pool Determination Date. As at that date, the Final Tender Offer Asset Value was $9,828,152, giving a Tender Price of $1.7877. The 5,497,652 Tendered Shares will be cancelled. It is expected that the proceeds payable to shareholders who tendered shares will be made by 3 November 2021. For the purposes of this announcement, unless otherwise defined, capitalised words and phrases shall have the meaning given to them in the Circular.

Inspecs Group 385p  £390m (SPEC.L)

The designer, manufacturer and distributor of eyewear frames, today announces a trading update for the nine months to 30 September 2021. The Group’s strong trading performance delivered in the first half has continued into the third quarter with unaudited revenues for the nine months to 30 September 2021 of $185m (six months to 30 June 2021: $125.7m). The Board remains cautious of headwinds in the fourth quarter as COVID-19 continues to impact the global supply chain, but the Group remains confident in its full year outlook and notes the 2022 order book is in line with management’s expectations.

Power Metal Resources 1.7p  £21.55m (POW.L)

The London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an operational update from the Company’s interests in the Kalahari Copper Belt (the KCB) held through the Kanye Resources joint venture  with partner Kavango Resources (LON:KAV). Power Metal holds a 50% ownership interest in the JV which includes ten prospecting licences in the KCB covering an area totalling 4,257km2. Kavango is operator. Environmental Management Plan (EMP) approved covering the Kanye Resources KCB Prospecting Licences (PLs) for a two year period. Exploration vectoring underway, towards initial target selection, including: Re-logging of physical core data from historic drill holes. Ground magnetic geophysics survey underway on the southern limb of the Acacia target, in the JV’s South Ghanzi Project. Work underway to optimise future soil-sampling programmes, to account for changing ground conditions across the JV’s PLs. Initial drill strategy being finalised.

Supply@me 0.25p  £88.5m (SYME.L)

Supply@ME Capital plc, the fintech business which provides an innovative Platform for use by manufacturing and trading companies to access Inventory Monetisation solutions enabling their businesses to generate cashflow announced the appointment of Jim Coyle as its new independent non-executive chairman with effect from 28 October 2021. Mr Coyle is a highly respected, strategic leader who brings over four decades of both executive and non-executive financial services experience to the role. After a thirty-year career at some of the UK’s largest institutions, including BP, Bank of Scotland and Lloyd’s Banking Group Plc, where he served most recently as Group Financial Controller and Deputy Group Finance Director, Mr Coyle has been appointed to a number of Board roles mainly across the financial services industry. He currently serves as a Non-Executive Director and Audit Chair of HSBC UK Bank Plc and M&S Bank Plc and chairs other M&S group subsidiaries, as well as serving as Senior Independent Director on the board of Honeycomb Investment Trust Plc and Audit and Risk Chair at Scottish Water. He has previously held the role of Chair at international payments business World First.

Vast Resources 2.9p  £7m (VAST.L)

£1.35m placing at 2.5p.  The net cash raised from the Placing will cover the shortfall in working capital that has arisen for the reasons set out in the Company’s announcement of 25 October 2021 and for contingencies. The Company would like to confirm it will be making its next sale of concentrate to its offtake partner in early November. Production and sales continue in line with revised internal forecasts announced on 25 October 2021. The Company also announces that Andrew Prelea and Roy Tucker, directors of the Company, have agreed to extend the lock up period in relation to respectively 15,000,019 and 2,250,057 Ordinary Shares held by them and referred to in the announcement of 9 November 2020 by a further year until 30 November 2022.

What’s cooking in the IPO kitchen?

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company,  announced that the Company and Target Mine Consulting (Pty) Ltd have agreed to seek admission for 100% of the Blyvoor Joint Venture project (BV)  by vending each of their separate interests into a new company to be listed on the Standard List of the London Stock Exchange. Katoro will look to recover its total cash expense to date of c.£1.5m in Project development, from the IPO. Timing TBA.

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.

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

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