Hybridan Small Cap Feast

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Hybridan Small Cap Feast

Joiners: ProCook, the UK’s leading direct-to-consumer specialist kitchenware brand has joined 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.  Offer size  £39.7m. Mkt cap £158m.

Leavers: No Leavers Today.

Banquet Buffet

Emmerson 6.6p  £55m (EML.L)

The Moroccan focused potash development company has secured a strategic investment of up to US$46.75m from a group of investors to support the development of the Khemisset Potash Project. The primary investor is Global Sustainable Minerals Pte Ltd, a Singapore domiciled investment vehicle backed by a significant south-east Asian investor.  Structured in two tranches comprising: An immediate direct equity investment of US$6.75m at 6 pence per share, an 8% premium to the 30-day VWAP, under the Company’s existing authority to issue shares. Subscription for up to US$40m of convertible loan notes, principal and interest with a conversion price of 8.2 pence per share13 a 48% premium to the 30-day VWAP. The Convertible Loan Notes are designed to contribute directly to the construction funding for Khemisset and are accessible by the Company once the overall funding package for the Project is in place.

Enteq Technologies  15.75p  £10.8m (NTQ.L)

The energy services technology and equipment supplier announced the signing of two exclusive distribution agreements with third-party technology providers to enhance and complement Enteq’s product range.  Enteq has signed an agreement with Houston, Texas, based Erdos Miller, Inc. to be the exclusive distributor outside North America for two of their major product lines. These industry leading technologies include specialised products for improving signal detection and MEMS (micro-electro-mechanical systems) directional sensors.  The agreement will expand Enteq’s range of available technologies offered to international customers. These products are fully aligned with Enteq’s existing portfolio; both SABER (Steer At-Bit Enteq Rotary) and MWD (Measurement While Drilling).  Enteq has also signed an agreement with Alberta, Canada, based Mezintel Inc. to be the exclusive distributor outside Canada for their gamma logging and depth tracking software solutions. These products add additional functionality to Enteq’s existing MWD equipment product range.  

Evgen Pharma 6.45p  £17.7m (EVG.L)

The clinical stage drug development company developing sulforaphane based medicines for the treatment of multiple diseases, notes the publication of data in preclinical models of glioblastoma (GBM) generated by Dr Claudio Festuccia and colleagues at the Universities of Aquila, Rome and Rieti, Italy (Colapietro et al, Pharmaceuticals, 2021, 14, 1082). GBM, also known as glioblastoma multiforme, is an aggressive type of cancer (a type of malignant glioma) that can occur in the brain or spinal cord. GBM is very difficult to treat, and a cure is most often not possible; treatments generally slow progression of the cancer and reduce signs and symptoms. The average survival time is 12-18 months, with only 25% of glioblastoma patients surviving more than one year, and only 5% of patients surviving more than five years. The in vitro data, in GBM cells and patient-derived glioma-initiating cells, show anti-tumour activity of the Company’s lead asset SFX-01. The work goes on to show in vivo anti-tumour activity in both sub-cutaneous and orthotopic xenograft (tumour cell lines are implanted in the brain) models of GBM. In both models, SFX-01 reduced tumour growth substantially and demonstrated statistically significant improved survival. The in vitro work was complemented by a recent pre-print publication from a different laboratory, the University of Auckland, New Zealand, in patient derived cells and 3D spheroid models of GBM (Leung et al 2021). Evgen recently announced the grant of Orphan Drug Designation in the USA for Malignant Glioma, affording the programme additional data protection and other incentives.

Image Scan 2.65p  £3.6m (IGE.L)

The specialists in the field of X-ray imaging for the security and industrial inspection markets, announces the award of a contract to supply a portable X-ray scanning system to a Federal Agency in the USA. The contract is the first part of a framework order that could lead to the purchase of a further twelve systems. The ThreatScan®-LS3 system consists of a compact imaging panel, a portable wireless I-Gen x-ray generator, a laptop imaging station with wireless communication and Image Scan’s advanced ThreatSpect image processing software.  Following on from the sale to a police department bomb squad announced in September, this first order from a federal agency is a further significant step in Image Scan’s development of the important US market.

Insig AI 50.5p  £49.8m (INSG.L)

The data science and machine learning solutions company providing ESG solutions to the asset management industry announced that Colm McVeigh has joined the Company as Chief Commercial Officer. Following the satisfactory completion of standard due diligence and related checks, it is expected that Colm will join the board as an Executive Director. Colm has held senior commercial roles in software and telecoms sectors with a strong track record of driving growth and business transformation. From 2016 until September 2021, Colm was the Chief Commercial Officer of BT One Phone, the mobile Cloud SaaS joint venture in which he led the commercial turnaround which resulted in a high multiple EBITDA minority interest sale valued at £320m. Colm spent more than ten years at BT, having previously been part of its core BT Business due diligence team for BT Group’s acquisition of EE Mobile and then led the commercial Integration of EE into BT Business.

Karelian Diamonds 3.15p  £2.16m (KDR.L)

Highly anomalous amounts of chromite in sampling programme reported by Karelian. Highly anomalous amounts of chromite and forsterite olivine encountered. Metamorphic massive sulphide indicator minerals also identified. Local sampling programme confirms and builds on previous regional studies. Significant implications for additional targets in Karelian’s Northern Ireland licence.

Vast Resources 2.75p  £6.9m (VAST.L)

Update on its producing Baita Plai Polymetallic Mine in Romania. Further to the previous announcement made on 28 October 2021 regarding confirmation of the next sale of concentrate, the Company can confirm that this sale has been completed. As per the announcement of 25 October 2021, the next production and sales volume report will be made in January 2022 in respect of the quarter ended 31 December 2021.

Velocys 8.6p  £91.5m (VLS.L)

The sustainable fuels technology company announced that its wholly owned subsidiary, Velocys Renewables LLC, has entered into a Memorandum of Understanding for the offtake of Sustainable Aviation Fuel  to be produced at the Bayou Fuels project in Mississippi, USA  with International Consolidated Airlines Group S.A.. The MoU covers the purchase by IAG’s constituent airlines, which includes British Airways, Aer Lingus and Iberia amongst others, of an expected 73m gallons of SAF, in aggregate, at a fixed price. After blending, this will produce the equivalent, under US regulations, of 192m gallons of net zero SAF (blended basis) during the term of the purchase contract, which will last for ten years from 2026, which is when the Project’s biorefinery is expected to begin delivering SAF. It represents one third of the facility’s planned annual output and complements the binding offtake agreement for the remaining two thirds annual output announced today with Southwest Airlines. The intention of the parties is to convert the non-binding MoU, which includes all material terms for the offtake, into a definitive offtake agreement as soon as possible within the next six months; the MOU also includes an option for IAG to invest in the Project development phases. The fixed price fuel purchase agreement includes a price support mechanism by IAG for the greenhouse gas credits associated with the SAF production. As a result, the agreement is expected to generate revenues of over $800M to the Project and achieve, under US regulations, an estimated total of 2.2m tonnes of avoided CO2 over the term of the offtake.

Victoria 1,060p  £1,239m (VCP.L)

The international designers, manufacturers and distributors of innovative flooring has agreed to acquire Graniser, a mid-market manufacturer and exporter of ceramic tiles based in Izmir, Turkey. For the 12 months ended 31 December 2020, Graniser generated audited revenues of EUR59.3m (c.£52.8m). Current normalised EBITDA is approximately EUR9m (c. £7.7m). Total consideration to be paid on completion is EUR8.4m (£7.1 m), which will be funded entirely from the Group’s cash balances. In addition, Graniser has approximately EUR39.8m (c.£33.7m) of net debt (including shareholder loans), which will be repaid on completion. Completion is subject to procedural approval by the Turkish competition authorities and is expected to take place in December 2021. On completion, the Acquisition will be immediately earnings accretive.

Zenova Group 102.5p  £5.4m (ZED.L)

The provider of innovative fire safety and heat management technology and products, has secured a major contract for the supply of its products in Australia. The three-year contract, which commences on 1 January 2022, is with Spark Global Australia Pty Ltd in Victoria, Australia, a newly formed subsidiary of a major Australian construction company. Under the contract, Spark will become an Authorised Distributor of Zenova products in Australia and has committed to purchase a minimum of £2m of Zenova’s products each year, including Zenova’s insulating render (IR), insulating paint (IP) and fire-resistant paint (FP). The initial three-year contract can also be extended if certain conditions are met.

What’s cooking in the IPO kitchen?

Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of confidence in the Group achieving no less than £52m of revenue, £21.5m of Adjusted EBITDA and £12.8m of Adjusted EBITA for FY21 Due 23 Nov. Offer TBA.

Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets  to join the Main Market (Premium). Targeting a £150m raise. Due by end Nov.

Eneraqua Technologies to join AIM. The Group is a specialist in energy and water efficiency. The principal activity of the Group is the provision of turnkey solutions for decarbonisation through heating and hot water systems for multiple occupancy social housing and commercial projects. Capital to be raised on Admission: £12.0m primary and £8.0m secondary. Anticipated market capitalisation on admission: £92.0m.  Due 22 Nov. 

DSW Capital to join AIM. DSW is a challenger mid-market professional services business headquartered in the Northwest of England. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income.  Due early Dec. Raising £5m.

Spiritus Mundi  due to join the Main Market (Standard), a special purpose acquisition vehicle which will seek acquisition targets in Europe and Asia in the clinical diagnostics sector . The Company has already raised approximately £1.2m in a pre-IPO fundraising round.

Recycling Tech Group to join AIM, a UK-based engineering, research and manufacturing company that has developed a modular and mass producible machine, the RT7000, which processes hard to recycle plastic waste into a synthetic oil that can be sold back to the petrochemicals industry as a chemical feedstock to make new plastics. Targeting a £40m raise. Due December.

PYX Resources Limited , a producer of premium zircon, to dual list on the Main Market (Standard), a producer of premium zircon. The Company is currently listed on the National Stock Exchange of Australia, (NSX:PYX), which will remain its primary listing.  Due 15 Nov, Mkt Cap c.£358m.

Foresight Sustainable Forestry Company to join the Main Market (Premium),  an externally managed investment company that will invest in UK forestry and afforestation assets. Raising up to £200m. Due 24 Nov.

Travel Chapter Holdings to join AIM. Travel Chapter operates a leading online platform in the structurally growing UK holiday rental market, connecting a supplier base of property owners with their customers and providing a market leading service proposition to both.  Offer TBA. Due mid Nov.

ATOME 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.

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.

Rubix Group Holdings, the market leading pan-European distributor of industrial maintenance, repair and overhaul products and services  to 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. Raising EUR 850m. Due early Nov.

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.

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

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. Due Mid Nov. Offer TBC.

*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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