Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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ADM Energy* 1.1p  £2.25m  (ADME.L)

The natural resources investing company, provides an update on recent developments concerning its indirect interest in a risk sharing agreement in the Barracuda oil field in OML 141 in Nigeria. As previously announced on 23 and 29 November 2021, K.O.N.H. (UK) Ltd (“KONH”), a company in which ADM acquired a 51 per cent equity interest and which holds, a 70 per cent interest in Noble Hill-Network Limited (“NHNL”), holder of a risk sharing contract in NW OML 141, was notified by NHNL of a dispute regarding KONH’s ownership of its stake in NHNL. ADM and its legal advisers, continue to assert that NHNL’s position as proffered is untenable and wholly without merit and are taking all necessary legal steps to protect and secure ADM’s interest in the circumstance. In the above regard, ADM and KONH instigated proceedings against NHNL at the Federal High Court of Nigeria, Lagos. The Court has been asked, inter alia, to determine KONH’s rights to its 70% interest in NHNL and all other related matters. ADM  announces in the meantime that, on 10 December 2021, it obtained an interim injunction restraining NHNL, its officers, agents, privies or person howsoever connected from selling, disposing, divesting or tampering with the 70% shareholding interest of KONH in NHNL to third-party investors or in any other manner whatsoever. Even though the dispute is now sub judice, it was, and remains, ADM’s and KONH’s preference to seek a resolution with NHNL without the intervention of the Courts. ADM and KONH wish to assure its shareholders and other stakeholders, however, that it is and will continue to take all appropriate steps available to it in law to vigorously protect its interests in NHNL and the risk sharing contract in respect of NW OML 141.

eve Sleep 2.97p  £8.16m (EVE.L)

The direct to consumer sleep wellness brand operating in the UK, Ireland (together “UK&I”) and France announces a trading update following the important Black Friday month trading period and ahead of its 31 December year end. The benefits from the Company’s completed rebuild strategy continue to come through, with eve on-course to deliver a second consecutive year of revenue growth, in-line with market expectations. Notwithstanding strong November comparatives in the UK, eve’s UK e-commerce channel achieved sales order growth in the Black Friday month of 4% year-on-year and 64% when compared to the pre-covid 2019 comparative period. The bedroom furniture category in particular posted strong sales growth in November, up 14% year-on-year, and represented a pleasing 7% of the overall sales mix during this period. Within mattresses, hybrid mattresses remain the outstanding performer, with eve’s high performing original and premium hybrid mattresses taking over 70% of the mattress sales share. The new sleep away range performed far ahead of management’s expectations, with over £50k in sales during the month as people prepare for their first Christmas guests in two years. 

Feedback 0.95p  £25.3m (FDBK.L)

Feedback receives funding from Amazon Web Services in support of its cloud-based tuberculosis screening programme for rural communities in India. AWS provides non-equity funding to support the initial hosting costs of a pilot for Feedback’s cloud-based tuberculosis screening solution to rural communities in India. The TB screening solution will see X-ray images acquired in rural communities pushed by Feedback’s Bleepa Box straight to the cloud to be processed by clinical and artificial intelligence partners. The TB screening pathway, hosted on Bleepa, will connect remote communities with clinical experts and the latest technologies for point of care diagnosis of TB in almost any setting and will be hosted on AWS Cloud.

K3 Capital Group 330p  £241.6m (K3C.L)

The multi-disciplinary professional services firm providing advisory services to SMEs, provided a trading update for the six-month period ended 30 November 2021. The Group delivered a strong performance during the first six months of FY22 and is expecting to report revenues in excess of £30m (H1FY21: £17.6m) delivering adjusted EBITDA of c.£9m (H1FY21: £5.6m). All business divisions have continued to perform well, driven by both organic growth in existing brands as well as the contribution of the recent acquisitions of Knight Corporate Finance Group Limited and Knight R&D Limited which completed in July 2021. Performance is in line with management’s expectations and represents c.50% of market consensus revenue and adjusted EBITDA for the year ended 31 May 2022. The Group maintains strong pipelines across its brands for the second half of the year and management is confident in meeting the market expectations for the full year.

MyHealthChecked 2.6p  £19.7m (MHC.L)

The consumer home-testing healthcare company,  provides an update on trading for the year ending 31 December 2021, which is expected to exceed the higher end range of current market expectations for EBITDA, and meet the higher end range of current market expectations for turnover. As announced on 29 September 2021, MyHealthChecked experienced strong trading in Q3 delivering further revenue growth, a move into a positive EBITDA position and quarterly cash generation for the first time. Despite an anticipated quieter fourth quarter, given that travel volumes are traditionally lower over that period, high levels of demand for the recently reinstated PCR Day-2 test kits and associated laboratory services have resulted in further strong trading in Q4. The Board is now confident that the full year revenues will be around £16m (FY 2020: £49.5k) and deliver an adjusted EBITDA profit of at least £2.1m (FY 2020: £2.7m loss). The business will be cash generative for the year and the Board expects cash balances to be at least £4.6m at the end of the year (31 Dec 2020: £0.47m).

Netscientific 106p  £22.3m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group, announces that on 9 December 2021 its corporate finance and venture capital subsidiary EMV Capital Ltd (EMVC) (i) syndicated approximately £0.74m of its investment into Martlet Capital, first announced on 16 September 2021, to its investor network, and (ii) invested a further £0.73m, approximately, into Martlet Capital which has been agreed to be syndicated to the investor network shortly. As a result of this investment, the total syndicated amount is £1.47m, under carried interest arrangements, while the Group’s direct holding upon completion will have decreased from £1m to £0.25m. This brings the total direct and syndicated investment in Martlet Capital, to a total of £1.72m, which represents 11.2% of the Martlet Capital’s issued share capital (1.6% direct holding and 9.6% advised), and £0.52m of Convertible Loan Notes (£0.075m direct holding and £0.445m advised).

Next 15 Communications 1180p  £1095m (NFC.L)

Trading update the tech and data-driven growth consultancy. Strong revenue growth in Q3: 38% year-on-year, with 26% organic growth. 34% year-on-year revenue growth in first nine months with 24% organic growth. Very encouraging performances across all segments and geographies. Strong performance continuing into Q4. Results for the year to January 2022 expected to be ahead of management expectations.

Physiomics* 6.25p  £6.1m (PYC.L)

The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions, has signed new agreements with existing client, Merck KGaA, with an aggregate value of £300k. These projects are expected to be completed over the course of the next six months and will span a range of drug targets and treatment types in both pre-clinical and clinical settings with a particular focus on DNA damage and repair (DDR) agents. As has been the case in 2021, the board of Physiomics expects further contracts to be signed with Merck over the course of 2022. Dr Jim Millen, CEO of Physiomics, said: “We’re delighted that we continue to have a strong relationship with Merck and that our predictive modelling capabilities are, we believe, proving highly useful in the design of a number of their key clinical programs. In our view, there is no other company with Physiomics’ experience in the field of DDR modelling and with every new project we further develop our capabilities in this field.  These contracts provide a great platform for our work with Merck in 2022 and we expect further projects to be signed over the course of the full year.”

RUA Life Sciences 102.5p  £22.7m (RUA.L)

On 3 November 2021, RUA Life Sciences plc, the holding company of a group of medical device businesses focused on the exploitation of the world’s leading long-term implantable biostable polymer (Elast-Eon ™), announced the submission by RUA Vascular to the US Food and Drug Administration of its Premarket Notification (510k) for a range of polymerically sealed vascular grafts.  After initial document review, the Company’s regulatory team held an initial meeting with the FDA to discuss certain novel aspects of the RUA grafts and, as a result, mutually agreed to convert the 510k submission to a pre submission process, allowing the Company and the FDA to agree the additional data required to facilitate the 510k approval. The regulatory pathway has been extended and, as a result, RUA no longer anticipates first commercial sales of grafts to be achieved during the first quarter of 2022. A further update on the agreed process with the FDA and the likely new timelines for approval of the 510k will be made in due course.

Samarkand 162.5p  £85.2m (AQSE:SMK)

Samarkand Group plc, the cross-border eCommerce technology, services and consumer brand group,  has signed an agreement for the use of its Nomad Checkout cross-border technology product with Strawberrynet in Hong Kong. Strawberrynet is one of the longest-running eCommerce firms in the world, with more than two decades in the beauty industry. Based in Hong Kong and founded in 1998 Strawberrynet boasts over 4m customers in more than 200 countries and offers an extensive range of products from over 800 international brands. Nomad Checkout Enterprise can be easily integrated into a company’s existing eCommerce platform providing a flexible implementation for the merchant and a superior experience for Chinese customers including improved site performance, Chinese payment methods, express logistics options and integrated customs clearance.

What’s cooking in the IPO kitchen?

Carbon Air, a nano-technology company which leverages the absorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company’s proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems, acoustic insulation for domestic appliances and micro-speakers for smartphones. Mkt Cap and Capital to be raised TBC. Due Late Dec.

Aptamer Group to join AIM.  Aptamer Group operates within the life sciences sector and is a leader in the provision of aptamer discovery and selection services and in developing aptamer-based reagents. Aptamers are synthetic nucleic acid-based biological molecules, selected based on their specific characteristics to bind to a ‘target’ of interest.  Targets can include proteins, cells, viruses or small molecules (e.g. therapeutic drug molecules). Mkt Cap and Capital to be raised TBC. Due Mid Dec.

CT Automotive Group to join AIM. CT Automotive is a UK-headquartered company that designs, develops and supplies interior components for the global automotive industry. Customers include a number of original equipment manufacturers (“OEMs”) and Tier One suppliers to OEMs. Mkt Cap and Capital to be raised TBC. Due 23 Dec.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide working capital for the Group. Capital to be raised £20m. Expected admission date Late Dec.

Public Policy Holding Company, to join AIM. PPHC, through its wholly-owned companies, operates a portfolio of independent firms that offer public affairs, crisis management, lobbying and advocacy services on behalf of corporate, trade association and non-profit client organisations. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.

Libertine to join AIM. Libertine has developed a technology solution for powertrain OEMs, enabling efficient and clean power generation from renewable fuels. Libertine’s linear electrical machines, controls and tools together form a development platform (‘intelliGENTM‘) which the Group provides to OEM customers for their product development programmes. The company also provides engineering services and prototype hardware to support OEM customer evaluation of its technology, and incorporation of this technology into customer-led Linear Generator development programmes. Mkt Cap and Capital to be raised TBC. Expected admission date Mid Dec.

LBG Media, digital media and youth content publishers to join AIM. The Company is a multi-brand, multi-channel digital youth publisher and is a leading disrupter in the digital media and social publishing sectors. The Group produces and distributes digital content across a range of mediums including video, editorial, image, audio, and experience. Mkt Cap £360m. Expected admission date 15th Dec.

Equinox International Holdings plc, UK-headquartered medical cannabis company aiming to become the UK’s leading ‘Land-to-Brand’ vertically integrated medical cannabis company, to seek admission of its entire share capital to trading on AIM. Seeking to raise funds to build a state-of-the-art cultivation, extraction and production facility on a Home Office-approved 20-acre UK site. Offer and timing TBA.

Lift Globala financial media and technology-focused investment company led by well-known stock market commentator Zak Mir, to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market. The Company plans to raise approximately 1.7m before expenses. First dealings in the shares are expected to commence in December 2021. The flotation is expected to value Lift at approximately £2.7m.

ThomasLloyd Energy Impact Trust plc, a newly established closed-ended investment company which will invest in a diversified portfolio of unlisted sustainable energy infrastructure assets in fast-growing and emerging economies in Asia, seeking to join the Premium Segment of the Official List . Due 14 Dec raising up to $335m.

Superdielectrics to join AIM, a Company which is focused on developing technology to build supercapacitors with high energy density, low cost, and environmentally benign electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. Admission is expected to take place in early December 2021. The Company intends to raise approximately £20m by way of a placing on Admission.

LEAF Mobile Inc. (TSX: LEAF) (OTCQB: LEMLF), a leading Canadian free-to-play mobile game group, announced its intention to join the Main Market this winter. The Company, which started trading on the Toronto Stock Exchange on February 10th, 2021, will assume a dual-listed structure. The Company intends to raise gross proceeds of approximately CAD$10m and the flotation is expected to value LEAF Mobile at approximately £130m. LEAF is operating within a fast-growing sector with a rapidly increasing total addressable market. Mobile Games are the world’s most popular form of gaming.

Sovereign Metals (ASX:SVM) to dual list on AIM. SVM is developing the Kasiya Rutile Project in their Malawi Rutile Province located in Malawi, Southeast Africa.  The project, which is Sovereign’s near-term focus, has delineated Inferred Resources of 644Mt at 1.01% rutile (0.7% rutile cut-off) including a high-grade component of 137Mt at 141% rutile (1.2% rutile cut-off) and is on track to release a scoping study in late 2021.  Sovereign’s graphite projects in Malawi include Malingunde, where Resources and Reserves under the JORC Code (2012 edition) have been previously delineated supporting a 2018 prefeasibility study (and updated per the DRA competent persons report on the Company’s website).
The Company does not intend to raise any capital prior to or concurrent with admission to AIM.  The Mkt Cap on Admission is expected to be approximately A$280m (being approximately £150m). Due 14 Dec.

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 16th Dec.

ATOME headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM. 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. Due Mid Dec.

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.

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. Due 20 Dec.

*A corporate client of Hybridan LLP

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