Hybridan Small Cap Feast

Joiners: No Joiners Today.

Leavers: Sumo Group has left AIM following a takeover.

Banquet Buffet

4basebio 590p  £72.7m (4BB.L)

The specialist life sciences group focused on exploiting intellectual property in the field of cell and gene therapies and DNA vaccines, announced a strategic research collaboration between its wholly owned subsidiary 4basebio Discovery Limited and eTheRNA immunotherapies, a pioneering company driving mRNA technology and therapeutic product development for treatment of cancer and infectious diseases. Under the Strategic Research Collaboration, the companies will be collaborating on the use of 4basebio’s synthetic osDNA™ technology as a template for eTheRNA‘s in vitro mRNA production. The successful outcome of this project will pave the way for the use of a novel, high-performance and cost-effective DNA template for IVT mRNA synthesis. mRNA technology has come into focus as a drug class to treat a wide variety of diseases with high unmet medical needs, exemplified by the success of vaccines to treat COVID-19. Normally, linearised plasmid DNA is used as a starting template for in vitro transcription (IVT) into mRNA. This mRNA is then translated in a patient’s cells to produce proteins that could prevent or treat disease.

Anexo 157.5p  £171.7m (ANX.L)

The specialist integrated credit hire and legal services provider, provided a Trading Update in respect of the year ended 31 December 2021 (FY 2021). Revenue growth has exceeded the Group’s forecasts and profit before tax will be significantly ahead of market expectations. The Group’s growth strategy has been supported by a sustained recovery in its core business following the easing of the second national lockdown in March 2021.  The gradual re-opening of the courts has been beneficial to the Group’s legal division, Bond Turner, enabling litigators to increase case settlements and cash collection, supporting further investment in new cases.  This trend is expected to continue as more courts return to normal working. On 7 December 2021 the Group announced the formation of a new Housing Disrepair team within Bond Turner. The team has made a strong start, with both new case and settlement numbers ahead of internal forecasts. The Group looks forward to considerable growth in this area in 2022. The Group continues to monitor developments in the legal action against Volkswagen AG (the ‘VW Emissions’ case). The Group is actively engaged with approximately 15,000 claims. As previously announced, all costs associated with marketing and the processing of claims have been expensed as incurred; investment in case acquisition and development in 2021 totalled £800k.

Barkby Group 18p  £23.3m (BARK.L)

Five women in the UK have become the first in the world to receive a tiny wireless implant that could revolutionise fertility treatment. The micro-sensing device, developed by engineers at Verso Biosense alongside fertility experts and engineers at the University of Southampton, monitors oxygen, pH and temperature levels inside the womb. These critical measurements have never been recorded in vivo before and represent a major breakthrough in fertility assessment and treatment. The technology is being trialled as part of an £850k NHS trial funded by the National Institute for Health Research. The study is expected to close at the end of February 2022.Barkby Group PLC is a diversified group of high growth, high quality businesses run by an entrepreneurial and experienced management team. The existing wholly owned businesses units within Barkby include: Barkby Real Estate, Barkby Pub Co. and Barkby Investments (comprising of Workshop Coffee, Centurian Automotive, Cambridge Sleep Sciences and a minority stake in Verso Biosense).

Bens Creek 40.25p  £141.7m (BEN.L)

The owner of a recently re-opened metallurgical coal mine in North America supplying the steel industry announced that Ben’s Creek Operations WV LLC, a wholly owned subsidiary of the Group, has, on 17 January 2022, entered into a contract to purchase a Superior highwall miner and related highwall mining equipment for use at the Bens Creek mine, ahead of the Group’s preliminary date of deployment in the second quarter of 2022. The highwall miner and associated equipment is anticipated to be delivered in February 2022 and complements the successful implementation of the first highwall miner operated by Mega Highwall Mining LLC (“MHW”) pursuant to the contract mining services agreement with MHW, details of which were announced by the Group on 29 October 2021. The capacity of the Superior highwall miner being acquired is broadly in line with the highwall miner operated by MHW. It is expected that MHW will operate the equipment being acquired. The purchase price of the second highwall miner and related equipment is US$2.5m with $100k being payable on signing of the agreement and the balance to be paid within 30 days. The purchase price of the highwall miner is being funded from the Group’s available cash resources.

Brickability Group 102p  £304.5m (BRCK.L)

The construction materials distributor, updated on trading for the financial year ended 31 March 2022. Following the release of the interims results for the six months ended 30 September 2021, the Group has continued to deliver a strong performance across all of its business divisions. As a result, the Brickability Board announces that it now expects to report an adjusted EBITDA  of a least £32m for the full year to 31 March 2022, ahead of current market expectations. The Group’s continued positive performance, despite the wider challenges and uncertainty caused by the COVID-19 pandemic and industry supply chain disruption, further demonstrates the strength, agility and operational efficiency of Brickability’s diverse multi business strategy, as it continues to successfully navigate these pressures. Taylor Maxwell and the other businesses acquired by the Group during the current year have continued to perform well and the sustained positive momentum and optimism within the UK housebuilding sector is reflected in the Group’s forward order book levels, with demand for the Group’s product offering building throughout this year and expected to continue into the new financial year. Looking ahead, the Board remains confident that the Group is well placed to continue delivering on its strategic objectives and the underlying growth of the business.

Crossword Cybersecurity* 36p  £27m (CCS.L)

The technology commercialisation company focused on cyber security and risk, confirms that it expects to report total income of £2.33m  (unaudited) for the year ended 31 December 2021. Further, the Company is confident of achieving  of achieving income of £4.1m, an implied growth rate of 75% for this financial year, broadly in line with analyst expectations. Income of £2.33m represents growth of 43% in 2021, which includes revenue from now discontinued software development services to related parties.  Growth in core cybersecurity consulting and product related was 57% in 2021. The 2022 income growth will be driven by growth in both cybersecurity consulting and product related income.  Crossword expects to have continued traction with Rizikon, aiming for 1,000 users by the end of 2022, with the ongoing pursuit of the partnership campaigns. Tom Ilube CBE, CEO at Crossword Cybersecurity PLC, said: “We are delighted to have ended 2021 in such a strong position. With the pending completion of the acquisition of a cyber threat company which, on completion, would bring our portfolio to five cyber security offerings alongside our cyber security consulting business, Crossword is now focusing its full attention on marketing and selling its product portfolio and consulting services to scale up the business. We are confident that we can harness our achievements in 2021 to achieve revenue growth of circa 75%, in 2022.”

Chariot 10.77p  £87.7m (CHAR.L)

Completion of the successful gas drilling operations, on the Anchois gas project within the Lixus licence (“Lixus”), offshore Morocco. Chariot has a 75% interest and operatorship of Lixus in partnership with the Office National des Hydrocarbures et des Mines (“ONHYM”) which holds a 25% interest. Anchois-1, the original discovery well drilled in 2009, was efficiently located and the wellhead was inspected, prepared and successfully coupled with the Stena Don rig confirming its potential viability as a future producer well. To maintain efficiency a decision was taken to not take a Sand A gas sample in the Anchois-1 well as gas samples were successfully obtained in the previously drilled Anchois-2 well. Anchois-1 operations will now complete with the well in a condition to allow for potential utilisation in the future development of the field. Anchois-2 well, drilled just prior to the Anchois-1 well operation and successful in its appraisal and exploration objectives with over 100m of net pay, has already been safely and efficiently suspended for potential completion as a production well in the future development of the field. Extensive data recovered from the multiple gas discoveries in the Anchois-2 well, including from a comprehensive sub-surface formation testing programme, which recovered twelve gas samples across seven gas bearing reservoirs, which are currently enroute to the laboratory for detailed analysis. Stena Don rig will begin demobilisation from the well sites imminently.

Evgen Pharma  5.15p  £12.9m (EVG.L)

The clinical stage drug development company developing sulforaphane-based medicines for the treatment of multiple diseases, announces a Memorandum of Understanding with the University of Seville (‘US’), Consejo Superior de Investigaciones Científicas (‘CSIC’) and Fundación Pública Andaluza Progreso y Salud on behalf of the Institute of Biomedicine of Seville, for second generation sulforaphane analogues. Under the agreement Evgen has signed an exclusive option to license new, novel sulforaphane analogues synthesised by these Spanish institutions, subject to a fixed evaluation period. These analogues have the potential for differentiation from SFX-01 in terms of product formulation. They may also have the potential for differential activity against targets that Evgen is pursuing such as STAT3, SHP2 and Nrf2. As such, they could constitute follow-on and/or alternative products which would expand Evgen’s development and partnering opportunities. If the option is exercised it would expand substantially Evgen’s preclinical pipeline of sulforaphane analogues. Analogues from an existing license from US and CSIC are currently undergoing further screening against relevant targets. The current option will be exercised should the Company’s technical evaluation be positive.

Plus500 1,483.5p  £1.4bln (PLUS.L)

Plus500, a global multi-asset fintech group operating technology-based trading platforms , announced today that Plus500 Ltd.’s status as a “Preferred Technological Enterprise” (“PTE”), as accredited by the Israeli Tax Authority (“ITA”) under the tax regime in Israel, has been extended for the financial years 2022, 2023, 2024, 2025 and 2026. Consequently, Plus500 Ltd.’s Corporation Tax rate for each of these financial years will be reduced from 23% to 12% and the Withholding Tax rate applicable for dividends will be reduced from 25% to 20%. This follows Plus500 Ltd.’s initial accreditation as a PTE by the ITA and the Israeli Innovation Authority (“IIA”) in 2020, at which time the Company’s Corporate Tax rate for financial years 2017, 2018 and 2019 was reduced from 24%, 23% and 23% in each respective year to 12% in each of these years. This updated Corporation Tax rate of 12% was also applicable for the financial years 2020 and 2021.  In addition, the Withholding Tax rate applicable for dividends was reduced from 25% to 20%, up to the financial year 2021.

Ten Lifestyle Group  116.5p  £97.3m (TENG.L)

The technology-enabled, global concierge platform for the world’s wealthy and mass affluent, has won a contract with one of Japan’s largest wealth management businesses. The new, multi-year contract will see Ten’s digitally-enabled concierge services being made available for the first time to the new corporate client’s high-net-worth wealth management customers during this financial year. The contract is expected initially to be Small,  with the potential to grow into a Medium contract during the next financial year. This new contract is incorporated within the Group’s existing growth plan.

What’s cooking in the IPO kitchen?

Unbound Group PLC, (currently called Electra Private Equity PLC) to join AIM. Unbound Group, will be the parent company for a range of brands focused on the 55 plus demographic.  Initially focused on Hotter Shoes, Unbound’s curated, multi-brand retail platform will offer additional products and services that will enhance the enjoyment and wellbeing of its targeted customer community.  This online platform will be based on the foundations of Hotter Shoes as a trusted brand, cloud-based digital infrastructure, and strong customer personalisation through data insight. No capital being raised on Admission. Anticipated Mkt Cap c.£30m. Due 31st Jan.

Clean Power Hydrogen, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser is seeking to join AIM. The Group designs and manufactures hydrogen production units and is focused on the commercial production of green hydrogen in a simple, safe, and sustainable manner. The Group intends to raise approximately £50m. Timing TBC.

SuperSeed Capital Limited, to join the AQSE Growth Market. The Company will invest in technology-led innovation primarily through unquoted funds managed by SuperSeed Ventures, the Company’s Investment Manager, with the objective of maximising the investors’ long term total returns – principally through capital appreciation. Mkt Cap and Capital to be raised 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 Jan.

i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM and raise money 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 late Jan.

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 late 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. 

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.

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 Late Jan 2022. Mkt Cap and Capital to be raised TBC.

*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).