Hybridan Small Cap Feast

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Hybridan Small Cap Feast

Joiners: ACP Energy plc, a company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset, has joined the Main Market (Standard) The Company intends to focus on opportunities in the natural resources sector, raising gross proceeds of £830k.

Leavers: Napster Group has left AIM.

Banquet Buffet

Brandshield 14.5p  £17.1m (BRSD.L)

The  provider of cybersecurity solutions for brand oriented digital risk protection has raised £1.5m at 14p with 1 for 2 warrants at an exercise price of 20p.  Net proceeds from the Placing will be used to build on the following three strategic priorities: –  Investment in sales and marketing efforts both direct and channel partners o  Converting the near-term extensive organic sales pipeline –  Ongoing software development to maintain market-leading position.

CareTech Holdings 544p  £616.55m (CTH.L)

The pioneering provider of specialist social care and education services to adults and children, announced the publication of its inaugural Purpose Report. CareTech has made the decision to publish a separate Purpose Report in order to better define a new purpose-led ESG strategy and   more clearly demonstrate how it impacts society through its business model. The report outlines CareTech’s new “CARE4” responsible business strategy which comprises of four pillars for social impact: Planet, People, Innovation and Community. The overarching social purpose for CareTech is to enable children, young people and adults with complex needs to make their own life choices, and to develop confidence and independence to live, learn, thrive and engage, building better futures. Headline commitments laid out in the purpose report include: · Becoming a net zero business by 2050 · Donating 2.5% of pre-tax profits to the CareTech Foundation annually · Being an employer of choice, investing in its people and valuing their diversity · The establishment of the new CareTech Technology division to spearhead its technology and innovation agenda. 

ITM Power 233.4p  £1,431m (ITM.L)

The energy storage and clean fuel company, provided details of the sale of a 24MW electrolyser to Linde Engineering contained in the Company’s Half Year Report issued yesterday. The electrolyser is to be installed at a site operated by Yara Norge AS  located at Herøya outside Porsgrunn, about 140 km southwest of Oslo. The site covers an area of approximately 1.5 square kilometres and is the largest industrial site in Norway. The Porsgrunn site produces 3m tons of fertiliser per year.  The hydrogen required for ammonia production is currently produced from SMR (steam methane reforming). Yara intends to start replacing this grey hydrogen with green hydrogen produced from renewable energy and electrolysis. The 24MW system supplying 10,368 kg/day of hydrogen will account for approximately 5% of the plant’s consumption and serve as a feasibility study for future upscaling. Yara has received a grant of up to NOK 283m (£23.6m), pending ESA approval, from Enova SF, a Government funding body to invest in green solutions for hydrogen used for industrial purposes in Norway. The electrolyser equipment is due to be ready for shipment from ITM Power in Q4 2022 with revenue realised in the Company’s 2022/2023 financial year. The Porsgrunn plant is one of Norway’s largest sources of CO2 emissions outside the oil and gas industry, emitting around 800,000 tonnes per year. The electrolysis plant will be powered by renewable energy and provide enough hydrogen to produce 20,500 tonnes of ammonia per year which can be converted to between 60,000 and 80,000 tonnes of green fertiliser. This will reduce the plant’s CO2 emissions by approximately 41,000 tonnes. The site is expected to supply its first green ammonia-based products in mid-2023.

Microsaic 0.13p  £7.6m (MSYS.L)

After what will have been over 7 years of service, Glenn Tracey, has notified the Board that he will be stepping down from his role as Chief Executive Officer  with effect from the date of the Company’s next Annual General Meeting , to pursue a non-competitive opportunity. Until that time, Glenn will remain as CEO and Director. The Company and Glenn will also co-ordinate an orderly handover of his responsibilities during this period. The Company will shortly therefore commence a formal process to identify and appoint a successor CEO.  Pending this appointment and to support the orderly handover in due course, Gerry Brandon, Non-executive Chairman, will temporarily play a more active role in the running of Microsaic’s business. The Company has also been making good progress with regard to the recruitment process for sourcing additional independent non-executive directors to the Board and reasonably expects to make at least one such appointment before the next AGM. Gerry Brandon, Chairman commented: “Over his tenure, Glenn has played a valuable role in converting the Compact Mass Spectrometry technology from development stage to a high margin commercial focused business, redefining the strategy towards solving real-world problems in Environmental and Human Health. On behalf of everyone at Microsaic, the Board wishes him every success for the future.”

NetScientific 84.5p  £17.85m (NSCI.L)

The international life sciences and sustainability technology investment and commercialisation Group, announces that its portfolio company, PDS Biotechnology Corporation (Nasdaq: PDSB), announced yesterday preclinical data for its universal flu vaccine, which was shown to be effective against multiple strains of the influenza virus. PDS Biotechnology is developing a new generation of flu vaccines with the potential to provide long-lasting, and broad protection against multiple strains of the virus. PDS believes that the successful development of a universal flu vaccine could eliminate the need to create a vaccine to protect against each year’s predicted variants. According to the World Health Organization, influenza causes 3 to 5m cases and approximately 290,000 to 650,000 deaths each year. PDS0202 combines PDS Biotech’s proprietary Infectimune™ technology with proprietary COBRA (Computationally Optimized Broadly Reactive Antigens) designed by renowned influenza expert Dr. Ted Ross. PDS Biotech announced an agreement with the University of Georgia to license the COBRA antigens. The NIAID-sponsored preclinical work was performed by Dr. Jerold Woodward at the University of Kentucky College of Medicine and Dr. Ted Ross at the University of Georgia, in collaboration with PDS Biotech. The studies demonstrated the ability of PDS0202 to promote robust induction of broadly neutralizing influenza-specific antibodies, flu-specific CD4 (helper) and CD8 (killer) T-cells, as well as long-lasting memory T-cells. This well characterized and robust immune response to the COBRA antigens suggests strong potential for broad and long-term protection against multiple strains of influenza.

Seed Innovations 6.6p  £14m (SEED.L)

The company investing in fast growing and industry leading businesses with a focus on the medical cannabis, health and wellness space, notes the announcement released on the ASX by its portfolio company, Little Green Pharma Ltd including its quarterly activities report and appendix for year ended 30 December 2021. SEED owns a holding of 7,324,796 ordinary shares in LGP representing 3.1% of LGP’s issued share capital. Alfredo Pascual, VP of Investment Analysis of SEED, commented: “It is very encouraging to see such a positive quarter from Little Green Pharma, seeing increasing revenue and record cash receipts of A$4.9m. We are pleased to see the recent distribution agreements throughout Europe and Denmark’s first locally produced cannabis medicine registration. With a strong cash balance of over A$25m and a A$5.8m financing facility from National Australia Bank, SEED are looking forward to a positive 2022 with further progress and news flow from the LGP team.”

Serabi Gold 55.5p  £42m (SRB.L)

First development update on its 100% owned Coringa Project in the Tapajos region of Para State, Northern Brazil. The first of the three veins in the Serra Zone intersected by underground development at the Company’s Coringa Gold Project. The sampled vein recorded assays of 2.94 g/t over 3.63 metres including 12.44g/t over 0.86 metres, using results from Serabi’s in-house laboratory. This initial area of the vein, will form the ramp pillar and was not expected to deliver the same grade and widths as other parts of the vein. This initial intercept is therefore highly encouraging. As anticipated the vein is sub-vertical, which is highly beneficial for mining. The detailed engineering design of the Coringa process plant is advancing well with Brazilian engineering consultants, Icone Technology & Engineering, expecting to compete their work in Q2. The process plant is already at the Coringa site and ready for installation following completion of the detailed engineering and award of the Installation License (“LI”) which is expected imminently. The application for the LI has been submitted and is being reviewed by the State Environmental Agency (SEMAS). In parallel, the Company has been working with Brandt Environmental to complete an Indigenous Study, which the Company expects to have concluded early Q2, coincidental with the award of the Installation License.

Surface Transforms 45p  £87.8m (SCE.L)

The manufacturers of carbon fibre reinforced ceramic materials, provide a pre close trading and operations update for the year to 31 December 2021. Revenue for FY2021 grew 20% to 2.4m (2020: 2.0m). Cash at 31 December 2021 was £13.0m; however, this includes a £3.1m irrevocable letter of credit in the name of a furnace manufacturer which will be progressively drawn down, by the supplier, as furnace manufacturing milestones are met. Other interest-bearing loans and asset finance totalled 1.8m (2020: 0.7m), the increase primarily reflecting the Company’s acceptance of a local government loan on attractive terms, as described in the Company’s announcement released on 24 March 2021. The Company’s final results for FY2021 will be reported in April 2022. At the end of January, daily assembly volumes reached the initial management targets in the production plan required to reach market revenue expectations for 2022. The Company has addressed the specific production issue on the particularly complex furnace described in the 14 December 2021 announcement.  Several satisfactory production batches having now been produced in late December and January. 

Trackwise Designs 84p  £31.5m (TWD.L)

The provider of specialist products using printed circuit technology, provided an update on trading for the year ended 31 December 2021. Subject to audit, the Company expects to report full year revenues of approximately £8.08m (2020: £6.07m) and an adjusted operating loss of approximately £0.54m (2020: £0.19m), both in line with market expectations. The Company reported record IHT revenues of £1.43m, an increase of 140% on the prior year (2020: £0.6m). The number of engaged IHT customers increased as the Company continues to grow its opportunities across its primary target markets of Electric Vehicles ( EV) , Medical and Aerospace. In line with the previously announced Product Manufacture and Supply Agreement worth up to £54m over the next three years, the Company has received orders for Q1 and Q2 of the current financial year from its UK EV OEM customer that now total in excess of £3.5m and expects to receive further orders for Q3 and Q4 in due course. The new plant at Stonehouse, to increase IHT manufacturing capacity, has continued to progress in line with the recent Fundraise announcement of 16 December 2021 and the Company remains on track to deliver the remainder of the agreed volumes with its UK EV OEM customer. Net debt at the year-end was £4.16m prior to the receipt of the second placing tranche and open offer net proceeds of the recent equity raise which completed in the new financial year of approximately £5.86m (before expenses).  Appointment of CFO Designate. The Company also announced that Paul Cook has been appointed as CFO Designate (initially a non-board position) effective 10 January 2022. Paul is working alongside current CFO, Mark Hodgkins, who as previously announced, is retiring, to effect a smooth transition of responsibilities, before taking over from Mark at the Annual General Meeting in June. Paul is an experienced finance professional with a track record of success across senior positions at several technology-driven manufacturing businesses selling into international markets, including Access IS, a manufacturer of scanning devices, and Sonatest, a manufacturer of portable non-destructive testing equipment. 

YouGov 1,260p  £1,403m (YOU.L)

 The international research and data analytics group, today issues a trading update for the six months ending 31 January 2022. YouGov has performed well during the period, with continued growth seen across all divisions and geographies. The Group’s performance has largely been driven by custom tracking work, benefitting from the strong sales pipeline, and the Data Products division as momentum in newer products and a renewed focus on subscription sales has delivered solid results. The transformation of the sales structure over the past year has continued to result in larger and more strategic client wins. Geographically, the US and Mainland Europe remain the key growth drivers. As a result of the trading position in the first half, the full year results to 31 July 2022 are expected to be slightly ahead of the Board’s expectations. The sales pipeline remains robust giving us continued momentum into the second half of the financial year. Consequently, the Board remains confident of achieving top-line growth for the full year in line with the current long-term strategic growth plan, with modest margin expansion due to continued investment in the business. To support future growth in keeping with its strategy, YouGov has maintained investment in its panel, technology and platform at a similar level to the prior year.

What’s cooking in the IPO kitchen?

Rumours in the press suggest that Nvidia’s proposed $40bn acquisition of Arm may not proceed due to regulatory pressure.   Arm’s current owner, Japan-based SoftBank Group, is reportedly considering the possibility of taking Arm public as an alternative with some suggesting London as a potential venue.

Strip Tinning Holdings, an established supplier of specialist connectors to the automotive sector, intends to join AIM. Strip Tinning manufactures specialist flexible electrical connectors related primarily to heating and antennae systems embedded within automotive glazing and to the connection of the cells within electric vehicle (EV) battery packs, increasingly using flexible and lightweight printed circuit technology that also has growing application elsewhere within vehicles. Mkt Cap and Capital to be raised TBC. Due mid Feb.

Artemis Resources ltd, an ASX listed mining exploration and development company intends to join AIM. The Company owns projects based in the Pilbara region of Western Australia, the Greater Carlow Gold-Copper-Cobalt Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara. The Company also owns the Radio Hill processing plant that is currently on care and maintenance. This plant is strategically located only 35km from the Greater Carlow Project. Mkt Cap approximately £52m, Capital to be raised £5m. Due 7th Feb.

Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector,  intends to float on AIM.  Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operations to supply labour to the northern section of the HS2 rail project from London to Birmingham. In addition, up to £4.5m will be raised for the existing shareholder from the sale of part of its interest in the Company. Hercules has a sustained track record of revenue growth from £9.7m in FY 2015 to £30.7m in FY 2019 and has experienced a strong rebound following Covid-19 growing to £14.0m in H1 FY 2021. Expected early Q1 2022.

Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and direct subscriptions by new and existing investor. If the Proposed Transaction proceeds to completion, it is proposed to change the name of the Company to Ondo InsurTech Plc and the name of Labs, which will become a subsidiary of the Company, to LeakBot Ltd. Should the Proposed Transaction not proceed, then the Company would need to apply for the suspension of its listing of ordinary shares to be lifted and for trading to be restored. £5m capital to be raised. Due early 2022.

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 1st Feb.

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. Due Early Feb.

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. Raised £2m. Due 31 Jan.

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 Feb.

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 early Feb.

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

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