Hybridan Small Cap Feast

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11 mins. to read
Hybridan Small Cap Feast

Joiners: Windward (WNWD.L) has joined AIM. Windward is a leading predictive intelligence company, fusing artificial intelligence (AI) and maritime expertise seeking to digitalise the global maritime industry. As at 30 September 2021, the Company had 120 permanent employees and had an annual contract value of US$19.7m, with 99 per cent. of the revenue being subscription based. The Placing raised gross proceeds of £26.3m (US$35m) of new capital for the Company  and £8.2m (US$10.9m) for certain existing shareholders and option holders. The Mkt Cap of the Company at the Placing Price will be approximately £126.5m.

Ondine Biomedical (OBI.L) has joined AIM. Ondine Biomedical Inc. is a life sciences company, incorporated in Canada, focusing on the development of photodisinfection-based therapies to provide solutions to drug-resistant infections. Capital to be raised: £22.2m ($30.0m). Anticipated Mkt Cap on Admission at the placing price: £103.9m ($140.1m). 

Leavers: No Leavers Today.

Banquet Buffet

Brandshield 16.75p  £19.8m (BRSD.L)

The provider of cybersecurity solutions from brand protection to online threat hunting has surpassed $5m in Annual Recurring Revenue (ARR), the Company’s primary key performance indicator, for the current financial year ending 31 December 2021. This significant strategic and financial milestone is a 79% increase from $2.8m, the Company’s ARR in December 2020, at the time of BrandShield’s listing on AIM. This growth reflects the strong demand from customers for BrandShield’s unique offering, which protects brands from online threats and scams performed through phishing, fraud, impersonation and counterfeiting across all online platforms, including websites, social media, ecommerce marketplace platforms, mobile app platforms and online advertising. The ongoing momentum that BrandShield continues to build reinforces management’s belief that the Company is ideally placed to capitalise further in the medium term.

Distribution Finance 57p  £102.2m (DFCH.L)

The  specialist bank providing working capital solutions to dealers and manufacturers across the UK, today announces that the Group continues to build on the positive momentum and record new loan origination seen through the year, expecting its full year financial performance to be in line with the Board’s expectations. The Group is not immune to the supply chain challenges and shipping delays reported across many global markets. The Company has been informed that critical orders for a number of its dealers will now arrive in January 2022, later than previously anticipated. The Group expects its loan book to close the year in the range of £250m to £275m. The Group  confirmed its loan book reached c£243m as at the 30 November 2021 (September 2021: £202m), more than doubling since the start of the year and materially exceeding the Group’s prior peak of £213m. Accordingly, the Board now expects the Group to achieve monthly run-rate profitability during Q1 2022.

EQTEC 1.4p  £119.9m (EQT.L)

The technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production announced that EQTEC’s wholly owned subsidiary, Deeside WTV Limited has signed a binding supplemental agreement with Logik Developments Limited. The Agreement, inter alia, sets out the terms on which the parties have agreed to vary the terms of the existing share purchase agreement signed by Logik and Deeside WTV has announced on 8 December 2020 pursuant to which Deeside WTV agreed to acquire full ownership of the project from Logik. Through the new Agreement the Parties will now act in partnership and seek to develop additional waste-to-value infrastructure on the Deeside site. The Parties are currently conducting additional feasibility studies for hydrogen and other biofuels to enhance the Project, which with the currently approved planning permission includes a 182,000 tonne waste reception plant along with 2 MW anaerobic digestion  facility and a 9.9 MWe EQTEC Advanced Gasification Technology facility. 

Ilika 155.5p  £244m (IKA.L)

Ilika a pioneer in solid-state battery technology, announced the official opening of its Stereax solid state battery manufacturing facility in Chandlers Ford, UK on Friday 3 December 2021.  The new facility will manufacture Stereax micro batteries that are designed for powering next generation implanted medical devices and wireless sensors used in the Industrial Internet of Things. The facility was opened by Rt Hon Steve Brine, MP and the Rt Hon Lord Willetts, former Minister of State for Universities and Science and author of the influential “Eight Great Technologies”.

Induction Healthcare 52.5p  £48.3m (INHC.L)

The healthcare technology company that helps to digitally transform hospitals, announces that its remote consultation service, Induction Attend Anywhere, has launched a key new healthcare function. The platform, which has been rolled out across the UK, now also supports clinical group consultations, where one-to-one consultations take place within a group setting of patients with similar clinical conditions. The pandemic, and related restrictions have impacted many group services including addiction and mental health therapy provision. To date clinicians offering digital group consultations have had to rely on non-clinical business conferencing facilities to maintain some continuity, but these can come with privacy and usability limitations. Facing a backlog and an estimated 10m people who may need new or additional mental health support over the next three to five years (according to the NHS Confederation), clinicians require a flexible care model which enables remote group consultations at scale and within a clinically safe setting. Co-created with NHS providers, the Induction Attend Anywhere clinical group consultations function has been designed to virtually mirror standard clinical and patient workflow for optimum integration. A distinctive feature is that there is a single-entry link for each clinical group consultation Waiting Area, avoiding production of multi-patient links and helping to safeguard clinician and patient confidentiality.

Kefi Gold and Copper 0.83p  £17.9m (KEFI.L)

Kefi provided a positive update about the security situation in Ethiopia. As previously reported, following the taking of office in October 2021, the democratically elected Ethiopian Government launched major military offensives in late November 2021 to drive rebel militias out of the neighbouring states they had recently occupied. Over the past few days, both sides in the conflict have reported that the rebel militias are withdrawing. The Government has publicly appealed to the local communities to treat the retreating rebels with dignity. KEFI sees this as a very positive development, so soon after the Ethiopian Government’s re-appointment in October 2021, following the highly significant June 2021 elections. This turning point in the military conflict reinforces KEFI’s optimism that peace will soon be restored in Ethiopia and, to this end, Kefi  also notes that diplomatic efforts have recently been intensified, with mediation now backed by the African Union, United Nations and major world powers. KEFI’s project teams have remained on the ground throughout this period of broader national conflict, preparing for the launch of the Company’s Tulu Kapi Gold Project in an appropriate safety-minded manner. At the same time, Project syndicate members have reaffirmed their intended Project participation as soon as compliance is demonstrated with normal conditions precedent, including the community and security aspects of World Bank IFC Performance Standards – also a condition of the mining licence.

Marshall Motor Holdings 392p  £306.7m (MMH.L)

The Board of Marshall Motor Holdings plc, one of the UK’s leading automotive retail groups, provides an update regarding the terms of a cash offer to be made by Constellation Automotive Holdings Limited by its wholly-owned subsidiary CAG Vega 2 Limited of 400 pence per share for the entire issued and to be issued share capital of the Company announced on 29 November 2021. The Offer price of 400 pence per share in cash, and taking account 36.49 pence per share of dividends paid to shareholders, represents a total shareholder return of 293 per cent. and an IRR of 20.6 per cent. to MMH’s AIM admission price per share of 149 pence. Following careful consideration of both the financial terms of the Offer and Constellation’s stated intentions regarding the conduct of the MMH business under Constellation’s ownership, the Board intends to recommend shareholders accept the Offer.

OKYO 7.35p  £71.35m (OKYO.L)

The biotechnology company focused on the discovery and development of novel molecules to treat inflammatory dry eye diseases and ocular pain announced that working with Ora, Inc., a world-class ophthalmic clinical development partner, it is currently anticipating the filing of an IND in Q3 2022 for OK-101 in the treatment of dry eye disease. OK-101, OKYO’s lead pre-clinical compound is a novel long-acting, G protein-coupled receptor-based anti-inflammatory drug candidate. OK-101 is anticipated to commence human studies with a Phase 2 clinical trial in DED patients in Q4, 2022. The trial is anticipated to be conducted in approximately 100 to 200 DED patients. The study is being designed in conjunction with, and will be managed and monitored by Ora, Inc., well known for its expert leadership of clinical trial activities. The Phase 2 trial is expected to be completed in 6-8 months from enrolment of the first patient.

Semper Fortis Esports* 1.4p  £5.8m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, announces that Kevin Soltani has stepped down as a director and as Chief Executive Officer with immediate effect and by mutual consent. In addition, the Company will establish an Employee Benefit Trust, for the benefit of current and future employees, to acquire all of the ordinary shares and redeemable preference shares in the Company held by GIMA Group Inc and GIMA Group Inc will surrender all its warrants over ordinary shares in the Company. Kevin Soltani held all of his interests in ordinary shares and redeemable shares in the Company within GIMA Group Inc. Furthermore, the share options granted to Kevin Soltani will lapse. Keith Harris, non-executive Chairman, will become interim Executive Chairman pending a search for and appointment of a Chief Executive Officer. The board notes that Kevin has led considerable progress in building the Company’s esports team rosters. The next phase for the Company will be to look to commence the commercialisation of these teams. The board places on record its thanks to Kevin for his efforts in bringing Semper Fortis Esports through its successful IPO and immediate post-IPO team building phase and wishes him well for the future.

Spectra Systems 155p  £70m (SPSY.L)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, announced that its newest customer using the company’s optical materials in K-cups for Keurig brewers has already placed three orders totalling $394k since September. The orders from the new customer are already 93% of the expected 2021 revenues from this product and 46% higher than total orders in 2020.  Dr. Nabil Lawandy, Chief Executive Officer, stated: “We are very pleased to have received such large orders for our optical materials from our newest K-cup printing customer. “Based on this order pattern, we expect that this new customer, along with the existing customer, will result in over $1MM of high margin revenue in 2022.”

*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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