Hybridan Small Cap Feast

Joiners: Great Southern Copper plc (GSCU.L) joins AIM. The Company successfully raised £3.5m. Mkt Cap £10.6m

Leavers: Zoltav Resources leaves AIM.

Banquet Buffet

Capital Metals 9.25p  £16m (CMET.L)

The a natural resources company focused on the development of the Eastern Minerals Project in Sri Lanka, one of the highest-grade mineral sands’ projects globally, announces its unaudited interim results for the six months ended 30 September 2021. The Group is reporting a pre-tax loss of $1,196,828 (six months ended 30 September 2020: loss of $353,588). The Group’s net cash balance as at 30 September 2021 was $1,199,612 (30 September 2020: $22,547). Highlights include approval of the Environmental Impact Assessment Permit; Drilling Programme at southern license; Richard Stockwell appointment as Technical Manager; IHC Mining progressing Development Study; and James Mahony appointed as Chief Financial Officer.

Deltex Medical Group  1.425p  £8.3m (DEMG.L)

The global leader in Oesophageal Doppler Monitoring announces that its UK subsidiary, Deltex Medical Limited (DML), has been notified of a successful UK Smart Award application by Innovate UK relating to the development of an innovative, hand-held, non-invasive ultrasound device for improved haemodynamic management of hospitalised patients. DML has been successful in this application, subject to final approval by Innovate UK.  During 2021 DML has also been awarded two other grants by Innovate UK to help it with the development of its new, real-time, easy-to-use, and non-invasive haemodynamic monitoring technology.

Hummingbird Resources  14.15p  £55.6m (HUM.L)

The Company provides an update on its extensive 2021 exploration drilling programme at the Sanioumale West (SW) and greenfield deposits, Kama and Diaban, at the Yanfolila gold mine (Yanfolila) in Mali. The Company notes further assays have recently been received from the Sanioumale East deposit drilling campaign at Yanfolila which, once fully reviewed, are expected to be reported in Q1 2022. The Company has received and analysed c.12,800 meters of multiple assays from the SW deposit and assays from the initial drilling completed at greenfield deposits Kama and Diaban at Yanfolila, results show significant grade and depth, such as 8 metres at 20.82 grams a ton at the SW deposit, highlighting upside potential to the deposits’ current Resources and Reserves profile (164,200 ounces and 50,400 oz respectively). Kama and Diaban are two new greenfield targets receiving their first round of drill testing, showing the potential to establish new resources at these deposits. The Company has now completed its extensive 44,000m 2021 exploration drilling programme at Yanfolila. This year’s drilling programme will feed into the Company’s updated 2022 Resources and Reserves statements, scheduled for release in Q2 2022.

Life Science REIT 101.25p  £354.4m (LABS.L)

The real estate investment trust focused on UK life science properties, announces that, on 17 December 2021, it completed the acquisition from Coal Pension Properties Limited of the freehold to a further three buildings at Cambourne Business Park near Cambridge. The purchase price of £50.1m, excluding acquisition costs, was satisfied entirely in cash and reflects a net initial yield of 5.5%. This acquisition, which was under offer at the time of the Company’s IPO last month, follows the £38.7m acquisition announced on 7 December 2021 of an initial three properties at Cambourne Business Park. Following today’s announcement, the Company’s office and laboratory space at the park exceeds 230,000 sq. ft across six adjoining properties, representing 100% of the commercial property on the site. This latest acquisition comprises almost 130,000 sq. ft of high-quality office space let to a variety of occupiers. Occupancy is currently 77.48% with a rental guarantee for 18 months on unoccupied space. The property currently generates c. £2.92m of contracted rent per annum, including guarantees, and has a weighted average unexpired lease term (WAULT) of 5.67 years.

Oriole Resources 0.345p  £6.9m (ORR.L)

The exploration company focussed on West Africa, announces results from the recently completed Phase 2 diamond drilling programme at its 90%-owned Bibemi gold project in Cameroon. The programme focussed on the Bakassi Zone 1 prospect and has delivered best mineralised intervals of 6.50m grading 3.92 grammes per tonne gold including 1.00m grading 16.79 g/t Au, 5.20m grading 1.97 g/t Au and 2.25m grading 8.82 g/t Au including 1.00m grading 19.33 g/t Au. A follow-up programme of infill and extension drilling (Phase 3) is nearing completion and results are anticipated in Q1-2022. Phase 2 drilling completed for 1,650.70m in 11 holes to test a c.1km portion of Bakassi Zone 1, to infill previously reported mineralised zones identified by maiden drilling. Results continue to confirm continuity of surface mineralisation along strike and to a vertical depth of more than 100m below surface. The system remains open at depth.

Palace Capital 255.5p  £118m (PCA.L)

The property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office and industrial sectors, announces that it has completed the sale of Russell House, Walton on-Thames, Surrey for £2.625m and exchanged contracts to sell Westminster House, Gerrards Cross, Buckinghamshire for £1.9m. Both are being sold at a significant premium to book value and the latest transactions bring to £28.2m the value of properties sold under the Company’s £30m disposal strategy. Russell House, which was acquired by the Company in 2014, is a multi-let office and industrial building with a floor area of 23,000 sq ft that is being acquired by a subsidiary of Travis Perkins plc, the FTSE 250 builders’ merchant and home improvement retailer. Since acquisition, Palace Capital has applied its active asset management skillset to the property, bringing it to full occupancy, increasing annual rental income by 30% and, through the sale, crystallising a significant uplift on the original purchase price. Westminster House, which is being acquired by a private investment company, is a multi-let office & residential building, with a floor area of 3,710 sq ft, and the price also reflects a significant uplift on the original purchase price.

Saietta Group 255p  £216.9m (SED.L) 

The UK company that has developed the innovative, patent protected, AFT electric motor designed for high efficiency electric vehicle drivetrains, today announces its first unaudited interim results since its Admission to AIM, covering the six-month period ended 30 September 2021. Sales revenue increased significantly to £795k (H1 2020: £56k) as the Company began proactively marketing its launch motor topology in Q4 2020. Gross profit £437k (H1 2020: £37k) with a gross margin of 55%.Loss before tax £5,231k (H1 2020: £954k loss) reflects the fact that the Group is at the early commercialisation stage and  includes significant share options and IPO-related costs. Adjusted EBITDA a loss of £1,064k (H1 2020 a loss of £394k) and the net cash at the end of the period £31.4m. Saietta remains dedicated to securing a number of long-term, high volume OEM relationships globally and continues to receive a large volume of sales enquiries from numerous OEMs with regards to potentially material contracts.

Sopheon  950p  £98.3m (SPE.L)

The international provider of software and services for Enterprise Innovation Management solutions, announces the acquisition of the business and assets of ROI Blueprints LLC (ROIB) a cloud-based solution focused on detailed enterprise planning and execution. The Group is also providing a trading update for the current year ending 31 December 2021. ROIB is a cloud-based project and portfolio SaaS solution designed to help organisations drive operational execution management of corporate initiatives. Integrating the ROIB solution with Sopheon’s Accolade product will extend the value of Sopheon’s offering and expand market reach. The transaction is structured as an asset purchase. Initial consideration of US$1.5m is payable in cash, funded from the Group’s existing resources of over $24m at 30 November 2021. Sopheon expects revenues and EBITDA for the year ended 31 December 2021 to be comfortably in line with market expectations, coupled with solid progress on building annual recurring revenue.

WANdisco 343p £196.4m (WAND.L)

The LiveData company today announces a significant contract win through its IBM channel. IBM has secured a $3.3m three-year license contract with a large North American multinational investment bank for the use of LiveData Migrator. The initial use case will be for on-premises data replication with further use cases for cloud migration providing opportunities to expand the relationship. Following the agreement with IBM, WANdisco will obtain 50% of the license revenue. This announcement follows last year’s extension of WANdisco and IBM’s existing relationship which integrated WANdisco’s LiveData Migrator into IBM’s Big Replicate solution; allowing IBM customers to seamlessly migrate on-premise data to hybrid cloud and multi-cloud infrastructures.

Zephyr Energy 6.65p  £89.1m (ZPHR.L)

The Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, provides an update on its proposed acquisition of non-operated working interests in the Williston Basin, North Dakota, U.S. The Company now anticipates that completion of the Acquisition will occur during January 2022 and is delayed due to COVID disruptions. Although the completion has been delayed, the Company has made progress towards securing the structured debt funding necessary for completion, and the Company’s Board of Directors looks forward to providing further updates in the New Year.

What’s cooking in the IPO kitchen?

Hydrogen Utopia International PLC (HUI), to join Access Segment of the Aquis Stock Exchange.  The company aims to become one of the leading new European companies specialising in turning Non-Recyclable Mixed Waste Plastic into carbon-free fuels, new materials or distributed renewable heat. HUI’s activities will range across the full value chain, from the production of energy from Non-Recyclable Mixed Waste Plastic for local communities, to the sale of its products (Syngas, hydrogen, electricity and heat) to end customers. HUI’s initial strategic focus is to work closely with Powerhouse Energy Group PLC to create a project pipeline of HUI Facilities. Due 4 Jan 22. Mkt Cap TBC.

Carbon Air, a nano-technology company which leverages the adsorption 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). Anticipated Mkt Cap £80.7m. Capital to be raised £10.8m. Due 22 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 on Admission £74.9m. Capital to be raised £33.6m. 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.

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 (‘intelliGEN^TM‘) 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 on admission £27.6m. Capital to be raised £9m. Expected admission date 23 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 TBC. Due 27 Dec.

Lift Global, a 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 January 2022. The flotation is expected to value Lift at approximately £2.7m.

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 mid January 2022.

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.

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. Due Jan 2022.

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 early Q1 2022. 

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. £6m to be raised on Admission. Anticipated Mkt Cap £26m. Due 30 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. Due 24th Jan 2022.

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, today but we have read no update on it.

*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).