Hybridan Small Cap Feast

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Hybridan Small Cap Feast

Joiners: Aptamer joins AIM. Mkt Cap on Admission £80m. Capital raised £10.8m.

Leavers: GCP Student Living leaves the Official List.

Banquet Buffet

Advance Energy  4.275p £44.7m (ADV.L)

The energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, provides an update on the Buffalo project offshore Timor-Leste ahead of the drilling of the Buffalo-10 well. The Operator, Carnarvon Petroleum Timor, Lda., has advised Advance Energy that the Valaris JU-107 jack-up rig is currently enroute to the Buffalo-10 well location, with spudding of the well expected to commence within one week. The estimated time to drill and complete the well is around 35 days. RISC Advisory certified the mid case recoverable volume in the Buffalo field to be 34 MMstb (gross, 2C contingent resource), and the primary objective of the Buffalo-10 well is to demonstrate the presence of a significant, previously undrilled attic oil accumulation and for this resource to be converted to 2P reserves. The CPR developed by RISC in March 2021 has demonstrated that an economic development of the 1C resource of 16 MMstb would be viable down to an oil price of $35. It is therefore considered that there is a strong likelihood that the Buffalo-10 well will confirm an economic development project, with RISC’s CPR stating that: “RISC estimate the probability of development to be 86%.”

BlueRock Diamonds  28.5p  £4.2m (BRD.L)

The AIM listed diamond producer, announces an update with regards to operations at its Kareevlei Diamond Mine in the Kimberley region of South Africa. As of today, there are 24 reported cases of COVID-19 amongst the Kareevlei workforce and circa 50% of the employees have not reported for work due to them having contact with affected employees. In all cases reported to date, no employees have experienced serious symptoms. Given the Company’s key priority is the safety and wellbeing of its employees and their families, it has been decided to restrict operations at Kareevlei until the 3rd of January 2022. Provided that the situation does not worsen, it is intended to continue to process the stockpile of crushed ore during this period but no mining or crushing activities will take place.  It is hoped that the closure will act as a circuit breaker and that full operations will restart on 3rd of January 2022 although it is not possible to predict how the pandemic will impact the Company’s workforce over the coming weeks. More positively, the potential impact of restricting operations on the Company’s near term cashflow has been offset to some degree by a successful private sale of a small parcel of diamonds for a total USD545,000 at an average price of USD380 per carat, which included a high value 11.2 carat stone sold for USD97,000.

Bradda Head Lithium  8.5p  £24.5m (BHL.L)

The North America-focused lithium development group, announces that a royalty agreement between the Company and Lithium Royalty Corporation (LRC) has been completed on 21 December 2021. Highlights of the Royalty Agreement include a total consideration paid by LRC for the royalty is up to US$8m. LRC granted a 2% gross overriding royalty over Bradda Head’s sedimentary lithium claims in Arizona (Wikieup project and Burro Creek project) leaving the Company’s pegmatite and brine projects unencumbered. Royalty consideration will be paid to Bradda Head at three predetermined milestones. LRC has also subscribed for US$2m of new ordinary shares (along with US$0.5m via a further subscription) alongside the royalty closing, prior to the signing of the Letter of Intent. Funds from the royalty will be used to develop Bradda’s 47km2 of sedimentary claims in Arizona.

Cordel Group  11.75p  £18.7m (CRDL.L)

The Artificial Intelligence platform for transport corridor analytics announces it has been awarded a six-and-a-half-year contract with Network Rail to replace the UK’s National Gauging Database with a new Railway Gauging Data SolutionThe contract is worth a minimum of £3.2m over the initial contract term. Commencing in January 2022, Cordel will provide a Software as a Service platform for the storage and processing of gauge and clearance information for the entire UK rail network. This covers 20,000 miles of track, 30,000 bridges, tunnels and viaducts and thousands of signals, level crossings and over 2,500 railway stations.  Cordel is equipped to manage the scale and complexity of this engagement, and the data being processed will enable its true AI solution to fine-tune and continually improve its capabilities. This is Cordel’s longest-term contract to date, and the first full-scale deployment of the Cordel platform in the Northern Hemisphere.  The contract may be extended by mutual agreement to a total of eight and a half years. The win follows the success of previous engagements with Network Rail, and Cordel’s partnership with DGauge, UK-based gauging and clearances experts, that provide complementary software and consultancy.

D4t4 Solutions 312.5p  £114.7m (D4T4.L)

The data solutions provider announces multi-year contract wins which will contribute significant revenue to current year results and increase Annual Recurring Revenue, a key metric for the Group. The contract wins include a multi-year contract extension and upsell to a US-based global top ten financial services company, which is an existing Celebrus Customer Data Management customer. It involves the new sale of both the Celebrus Customer Data Platform (CDP) and Celebrus Fraud Data Platform (FDP) products to the customer, representing the first sale of the Group’s FDP product. The commitment deepens the relationship significantly with this key financial sector customer.  Additionally, a Europe-based global top ten banking sector customer for Celebrus CDP has renewed its license and converted to a multi-year ARR model. This decision was driven by the exciting new features available in recent releases of the CDP product around Identity and Data Activation. These multi-year contract wins add over £3m per annum to the Group’s ARR as well as over £9m to the current year’s revenues. Along with existing contracted H2 ARR and continued good visibility of the pipeline for the remainder of this financial year, the new wins underpin the Group’s confidence in achieving board expectations for the full year.

Good Energy 232.5p  £42m (GOOD.L)

The 100% renewable electricity supplier and innovative energy services provider today provides a further trading outlook for the business ahead of the year ending 31 December 2021. The financial performance for November was in line with expectations. The first domestic standard variable tariff (SVT) rise became effective on 1 November 2021, which provided some mitigation against another low wind month, with wind levels 18% below seasonal norms. During December, power and gas prices have increased sharply to unprecedented levels. Power and gas prices on a Day Ahead basis for December compared to November have been on average 36% and 35% more expensive respectively at £256/Mwh and £2.71/therm. Q1 2022 baseload power and gas prices at £489/Mwh and £4.39/therm are 102% and 89% higher respectively. The increases in nearer term power and gas prices are all now feeding very strongly in 2022/2023 seasonal contracts. The industry has also experienced a further sustained period of low wind since 16 December 2021, which is expected to continue until Christmas. These changed conditions are expected to adversely impact full year profits by approximately a further £3m, since guidance given in the last update to the market on 25 November 2021In November, it was highlighted the impact of incurring additional commodity costs from a higher number of business and domestic customers than expected. This is now expected to continue into the first quarter of 2022, at sustained high commodity prices. To absorb some of the higher input costs, Good Energy announced a second domestic SVT price rise of 30% to be effective from 17 January 2022.

Insig AI  46.5p  £46.5m (INSG.L)

A the data science and machine learning group announces its interim results for the six months ended 30 September 2021. Company transformed by reverse takeover of AI/machine learning business Insight Capital Limited. Repositioned as a SaaS product business model from a pure technology consulting solutions provider. Secured contract with Carval Investors L.P (Carval) to support its ESG Collateralised Loan Obligations fund launch. Group revenue of £0.9m (H1 2020: £0.2m), group operating loss pre-exceptional items of £0.5m (H1 2020: £0.3m loss) and net cash at 30 September 2021 of £2.3m, excluding £0.7m R&D tax credit received post period end. Post period end, three contract wins, added further capability and data to assist Royal London Asset Management and there was the appointment of Colm McVeigh as Chief Commercial Officer and successful completion of acquisition of FDB Systems Limited.

Lexington Gold 2.75p  £7.3m (LEX.L) 

The gold exploration and development company with projects in North and South Carolina, USA provides an operational update which includes information with respect to its latest ongoing 5,000m Reverse Circulation (RC) drilling programme. 39 drill holes completed for a total of 3,275m drilled to date, out of the planned total of 5,000m for the Phase 2 drilling programmeDrilling is underway at the Loflin side of the Jones-Keystone-Loflin Project with seven drill holes for a total of 645m completed to dateSignificant sulphide mineralisation of over 25m intersected on the southern side and outside of the current known Loflin resource. Drilling activities will pause during the Christmas and New Year period, with drilling scheduled to recommence on 4th January 2022.  Due to a current backlog reported by SGS Canada, the Company is not expecting the first assay results to be returned during December 2021. The Company has successfully extended an existing 4.05 acre mining lease with an option to purchase agreement on the south-western (Loflin) side of JKL for an additional six year period to 17 December 2027. The Company has retained its 51% interest in all four of its projects by meeting Year 1 minimum expenditure requirements.

Pires Investments 6.15p  £8.4m (PIRI.L)

The investment company focused on next generation technology notes an update made by its investee company, Pluto Digital Assets plc (Pluto), a technology company that is operating in the exciting digital assets sector. Pluto has recently acquired a strategic holding in a leading UK-based computer gaming software studio which marks its entrance into the Play2Earn (P2E) market. P2E refers to the concept of gaming in which a platform provides its players with a chance to earn a form of in-game assets that can be transferred to the real world as a valuable resource.  In addition to acquiring this strategic holding, Pluto and the computer gaming studio are in the process of forming a joint venture to launch a suite of blockchain-enabled games. This investment and joint venture, further details of which are expected to be announced in early January 2022, have already progressed the concept development of new portfolio of games and will focus on high quality gamer experiences, with the added benefit of providing the gamers with the ability to acquire and monetise game assets. During 2022, Pluto expects to launch Non-fungible Tokens (NFTs) and tokens that will secure funding for the development of these games without requiring additional equity capital. During the year, the Pluto Ventures division invested circa $5m across 90 different early-stage digital ventures comprising different verticals, including Decentralised Finance, NFTs and P2E gaming.

Titon Holdings  111.5p  £12.4m (TON.L)

A leading international manufacturer and supplier of ventilation systems, and window and door hardware announces the appointment of Carolyn Isom as Chief Financial Officer of the Group and a Board director of Titon Holdings Plc with immediate effect. Carolyn has been Finance Director of Titon Hardware Limited since December 2019 and has been Titon’s Company Secretary since December 2020. Carolyn qualified as ACCA in 2006 and has held a number of finance roles since then, including as Financial Controller for Norman Disney and Young, an international engineering consultancy group, and as Area Finance Manager for the London and Southeast area for Tarmac, the construction materials and building products business.

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.

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 (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 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 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 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.

Facilities by ADF to join AIM. Facilities by ADF plc is a provider of premium serviced production facilities to the UK film and High-end Television industry. The Group hires out its facilities to productions throughout the UK and Europe, providing its services to some of the world’s largest traditional and on-demand content production companies. The Group’s business has grown to a business servicing productions with its fleet of over 500 trailers and vehicles and providing its services to the largest global production companies including Netflix, Sky, BBC, ITV, Disney, HBO and Apple amongst others and has an estimated 35% market share of providing facilities to the UK HETV market. Anticipated Mkt Cap £37.75m. Capital to be raised £15m. Due 5 Jan 22.

*A corporate client of Hybridan LLP

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