Hybridan Small Cap Feast

13 mins. to read
Hybridan Small Cap Feast

A round up of the day’s news brought to you by the team at small-cap broker and advisor Hybridan.

Dish of the day

Apollon Formularies (AQSE:APOL), formerly AfriAg Global, has completed its admission via reverse takeover on the AQSE Growth market.  £2.5m raised.  Apollon’s Jamaican affiliate has a federal licensing framework that allows it to operate a fully integrated seed to patient business. Apollon’s Jamaican affiliate’s processing laboratory based in Negril, Jamaica is able to produce high volumes of full spectrum medical cannabis oil, using both high and low THC cannabis plant material Apollon’s Jamaican affiliate’s R&D licence allows its medical team to undertake full spectrum, medically supervised treatments and conduct clinical trials as approved  by the Jamaican Ministry of Health.

Off the menu

No Leavers Today

Banquet Buffet

Vast Resources 0.095p £20.24m (VAST.L)

Appointment of Edward Hollings as Processing Manager at its Baita Plai Polymetallic Mine  in Romania. Edward has a wealth of experience in the metals industry having worked in base and precious metal projects for 15 years and specialising in metallurgy and processing.  In his role as Processing Manager, starting on 10 May 2021, at the Baita Plai flotation plant, Edward will become a key part of the new full-time expert management team on site at Baita Plai as the new upgraded mine plan is implemented and successfully delivered over the course of 2021. Edward most recently worked as Process Manager at the multi-national mining company Endeavour Mining, where he managed two gold/ silver heap leach ADR process plants processing 4.3Mt to deliver 110,000oz per annum. 

Rambler Metals and Mining 0.375p £40.1m (RMM.L)

The copper and gold producer, explorer, and developer, has closed the previously announced sale of non-core assets to Maritime Resources Corp. The non-core assets include the Company’s existing gold circuit at the Nugget Pond metallurgical facility and a number of Canadian exploration properties and royalties.   Maritime has  paid US$2.0m in cash and C$0.5m in common shares of Maritime based on the 30-day volume weighted average price (VWAP) on closing, representing 3,571,428 shares issued at a price of C$0.14.  The shares are subject to a four month and one day hold period expiring 13 August 2021. In addition, a deposit of C$200,000 was paid to Rambler on 12 March 2020.The transaction includes the following assets: Nugget Pond gold circuit: an existing carbon-in-pulp leach plant that last operated in 2012 and was previously used to process ore from the Hammerdown mine.  Lac Pelletier gold property: located in the City of Rouyn Noranda, Quebec approximately five km south of Glencore’s Horne smelter and three km north of the Cadillac Larder-Lake Break in the Abitibi Greenstone Belt. A portfolio of Canadian mineral exploration properties and currently non-producing royalty interests including the Gold Hawk property (2% NSR) and Valdora property (1% NSR) near the City of Val-d’Or, Quebec in the Abitibi Greenstone Belt.

Arkle Resources 0.95p £2.9m (ARK.L)

The Company notes the significant rise in its share price yesterday and references made on an investor forum to an article dated 22 March 2021 from bne IntelliNews regarding a potential reverse takeover of Arkle by a Mongolian mining organisation.  The Company confirms that the 162 group of companies (including Arkle) were approached about assisting with the financing of this mining project by an intermediary but have since declined to progress matters and there are no discussions regarding a reverse takeover taking place.

Seeen 41p £20.5m (SEEN.L)

The global media and video technology platform for improved digital marketing yield and connected audience experiences announced a contract win expected to launch in the second quarter of the current year and a strong trading update for the three months to 31 March 2021, both delivering further momentum to the Company. The Company executed its 2020 plan to use its EIS/VCT funding to build a proprietary AI video experience platform and is rolling out additional video technology products to its target customer base starting in 2Q. It has signed a commercial agreement with a major tire retailer in the United States to provide both its CreatorSuiteTM technology and Content Production Services. The agreement is worth a minimum of $50,000 in revenue in the next twelve months, rising to up to $100,000 depending on the amount of traffic driven to the customer’s website through CreatorSuiteTM. 1Q revenue up 12.8% at $2.3m (1Q 2020: $2.1m).

Circle Property  213p  £60.3m (CRC.L)

The Company’s investment and development portfolio, which is almost entirely focused in the regional office sector with no exposure to retail (other than two public houses and one restaurant in Birmingham), has been independently valued at £132.15m as at 31 March 2021 (30 September 2020: £134.6m). This marginal 1.82% valuation decline can be attributed to Covid-19 related market sentiment which we hope will be reversed as the economy recovers. Over the twelve-month period, net asset value per share has decreased by 2.8% reflecting an unaudited estimated NAV of £2.77 per share (30 September 2020: £2.83 per share). Circle has continued to actively engage with its tenants which has resulted in an average rent collection for the year ended 31 March 2021 of 91.5%. Rent collection for the current quarter ended 30 June 2021 stands at 73%. The Board expects to declare a final dividend of 4p per share for the year ended 31 March 2021, which together with the interim dividend of 2.5p per share (paid in January 2021), would bring the total annual dividend to 6.5p per share.

Griffin Mining 143.5p £249m (GFM.L)

As in previous years, production in the first quarter of the year was impacted by the Chinese New Year holidays when mining was suspended and processing scaled back as personnel leave during the holiday period allowing maintenance work to be undertaken. Production in the first quarter of 2020 had been impacted by the suspension of operations at Caijiaying imposed by the Chinese authorities for a month in late January / February and subsequent travel restrictions to contain the Covid 19 pandemic. However, tonnes processed in the first quarter of 2021 were up 12.1% on that achieved in the first quarter of 2019 of 178,615 tonnes and zinc metal in concentrate produced was up 12.8% on that achieved in the first quarter of 2019 of 7,303 tonnes.

Coro Energy 0.38p £8m (CORO.L)

Operational update following the recent acquisition of Global Energy Partnership Limited and its portfolio of operated renewables projects. Structuring of local Philippines project holding company commenced. Work to progress the flagship 100MW wind and 100MW solar projects in the Visayas region of the Philippines initiated, including discussions on the Energy Service Contracts, local landlord engagement, Environmental Impact Assessment, Grid Impact Assessment and the negotiation of Power Purchase Agreements. Initiation of a comprehensive data gathering campaign at the 100MW onshore Philippine wind project. These activities have been commenced with a view to positioning the Company to have both projects construction ready by mid-2022 and, subject to availability of project financing, maiden revenues achieved some 12 months later. Operator of the Duyung PSC, Conrad Petroleum, to submit updated Plan of Development for the Duyung gas project in due course.

Alba Mineral Resources 0.305p £19m (ALBA.L)

The evaluation pitting of the historic waste rock dump at the Clogau-St David’s Gold Mine will commence shortly. The waste rock dump contains material derived from the internal development of the Clogau-St David’s Gold Mine during past periods of production. The dump is estimated to cover about 30,000 square feet and to contain 20,000 tonnes of rock. Nine pits are to be dug, with around 15 tonnes of material to be extracted per pit.  The material will be screened and a sample of the finer material from each pit will then be sent for gold assaying offsite.

Tungsten Corp 31.3p £39.5m (TUNG.L)

The provider of digital financial management products and software solutions, announced that NTT Ltd., a leading global technology services company, has selected Tungsten, the leader in invoice digitisation, to support its goal of 90% invoice digitisation. NTT will be the first Tungsten customer to implement Total AR, Total AP, and the Tungsten Workflow together. The combined solutions will solve de-centralised and paper-based financial challenges and speed consolidation of 15 in-country based finance operations teams into one Global Shared Service Centre.  Anticipated benefits include information acceleration, resource efficiencies, streamlined processes, resulting in productivity gains.

Audioboom Group 685p £107.5m (BOOM.L)

The leading global podcast company, announced the signing of new advertising sales partnerships with MAPP Media in the UK and Ideabrew Studios in India, plus the expansion of the Company’s commercial partnership with the Australian Radio Network in Australia. These strategic partnerships will increase revenue opportunities for the Company in key global markets. Separately Audioboom announced the continued expansion of its podcast network through strategic partnership extensions with True Crime Obsessed and The Morning Toast, a new development and production deal with The Obsessed Network, and the launch of Dark Air – an Audioboom Original featuring star of The Office (US) Rainn Wilson.

What’s cooking in the IPO kitchen?

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market.  Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures.  The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services.  The Board are highly experienced in sports and corporate deal making (Keith Harris, former Chairman of The Football League), technology and electronic gaming (Nolan Bushnell, founder of the pioneering company, Atari), esports and game tech (Kevin Soltani and Jassem Osseiran) and as FD Max Deeley.  Target Admission Date of 26 April.

Darktrace plc. Announcement of Intention to Publish a Registration Document and Potential IPO on the main market of the London Stock Exchange.  Darktrace was founded in 2013 with a mission to fundamentally transform the ability of organisations to defend their most critical assets in the face of rising cyber threats. Darktrace is a world-leading provider of AI for the enterprise, with the first at-scale in-the-enterprise deployment of AI in cyber security  Timing TBA

musicMagpie   is a leader in re-commerce in the UK and US in the circular economy of consumer technology (including smartphones, tablets, consoles and personal computers), books and disc media (including CDs, DVDs and video games).  Expected 28 April. Offer details TBA

Wickes to demerge from Travis Perkins and list on the Main MarketExpected 28 April.

Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor  which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51m) will be used to fund the Acquisition.  Due 19 April.

NFT Investments plc is an investment company that specialises in non-fungible tokens (NFT). Has applied for admission to the Access segment of the AQSE Growth Market. No funds being raised. Due 16 April.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21.   Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

MAST Energy Developments (MED) is to IPO on the Standard List on 14th April under the ticker MAST.  The company has raised £5m giving a market capitalisation on listing of c. £23m.  MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*.   MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.

PensionBee has confirmed its intention to float on the High Growth Segment  of the Main Market of LSE.  The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration as at 28 February 2021.  The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority  shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April.  

Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April.

Proposed move to AIM from the main market (standard)  by Emmerson (EML.L)  to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development workDue 27 April.

*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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