Hybridan Small Cap Feast

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Hybridan Small Cap Feast

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Benchmark Holdings 47.45p  £334m (BMK.L)

The aquaculture biotechnology company, has been granted a variation to its Marketing Authorisation (MA) for Ectosan® Vet from the Norwegian Medicines Agency. This variation to the MA enables the re-use of the treatment water for a second batch of fish, subject to water quality being maintained to the satisfaction of the prescribing veterinarian, therefore increasing the efficiency of treatments. This means a producer will be able to treat a salmon farm more efficiently with a solution that delivers more than 99% efficacy, promotes animal welfare, reduces mortality and protects the environment – driving sustainability in the industry. This MA variation represents a further important step towards our goal of optimising the efficiency of our sea lice solution, and further trials are ongoing to support multiple re-use of treatment water. 

Destiny Pharma 48.5p  £35.6m (DEST.L)

The clinical stage innovative biotechnology company focused on the development of novel medicines that can prevent life-threatening infections, today announces the appointment of Dr. Yuri Martina as Chief Medical Officer (CMO). Yuri brings to Destiny Pharma more than 20 years’ experience and an extensive record of excellence in clinical development and successful interactions at the highest levels with key regulatory, industry and government stakeholders including the European Medicines Agency, the US Food and Drug Administration and the Japanese Pharmaceutical and Medical Device Agency. Most recently, Yuri was Senior Vice President Development and deputy CMO at Grünenthal Group where he was a key member of the Global R&D Leadership and the Global Commercial Leadership Teams. Yuri has been responsible for advancing the Grünenthal Group R&D pipeline, including two phase 3 assets, two phase 2 assets and several early and pre-clinical assets. Yuri has also been a key member and driver in several in-licensing and out-licensing activities and in the completion of the acquisition of Mestex AG.

Echo Energy  0.53p £7.7m (ECHO.L)

Commercial update regarding the Company’s gas sales from the producing Santa Cruz Sur assets, onshore Argentina. The Company confirms that, following a successful commercial process for industrial clients, it has secured two new gas sales contracts at significant premiums to 2021 contracted rates, reflecting the strong competition amongst customers to secure  gas supplies from the Company for the coming year. The Contracts have a term of 12 months, with gas sales under the Contracts beginning in May 2022, and provide for a 65% increase in pricing over average annual contract pricing previously achieved by the Company in March 2021 and a 116% increase on the current summer pricing until end April 2022 under those same March 2021 contracts. The Contracts provide gross 6.0 MMscf/d of committed production, 4.2 MMscf/d net to Echo, at an average price of US$4.33 per mmbtu, with the Company able to elect to sell additional volumes of up to 1.25 MMscf/d net to Echo under the Contracts. This optionality, at the election of the Santa Cruz Sur partners, allows for the potential sale of additional volumes under the Contract at Contract pricing whilst also providing the Santa Cruz partners with a degree of flexibility with which to capitalise on attractive spot market pricing. As a result of the Contracts and at Q1 2022 production levels, approximately 85% of net daily Santa Cruz Sur gas production allocated to industrial customers will now be committed under secured contracts until April 2023. Remaining uncontracted production volumes, where not sold as additional volumes under the Contracts, will be sold into the spot market.

Hutchmed China 204.50p  £1,767.8m (HCM.L)

Hutchmed has issued a Complete Response Letter (CRL) regarding the New Drug Application (NDA) for surufatinib for the treatment of pancreatic (pNETs) and extra-pancreatic (epNETs) neuroendocrine tumors (NETs). FDA determined that the current data package, based on two positive Phase III trials in China and one bridging study in the United States, does not support an approval in the U.S. at this time. The CRL indicated that a multi-regional clinical trial (MRCT) is required for U.S. approval. The safety and efficacy of surufatinib, an oral inhibitor of angiogenesis and immune modulation, was demonstrated in the SANET-p and SANET-ep studies, two randomized double-blind Phase III trials in patients with advanced pNETs and epNETs conducted in China. Results of a HUTCHMED sponsored bridging study conducted in the U.S. suggest similar safety and efficacy to the SANET study population in China. Surufatinib was approved in China for the treatment of pNETs and epNETs in June 2021 and December 2020, respectively. The FDA evaluated the applicability of the SANET studies data generated in one country to U.S. patients and U.S. medical practice. The CRL stated that the FDA will require a MRCT that includes subjects more representative of the US patient population and aligned to current U.S. medical practice.  This action by the FDA is not related to any safety issues with surufatinib. HUTCHMED is working with the FDA to evaluate next steps.

Inland Homes 43.5p  £100m (INL.L)

The brownfield developer, housebuilder and regeneration specialist focused on the South and South East of England, announces the conditional sale of part of Wilton Park, Beaconsfield to a major care home and retirement living operator, Beechcroft Developments, for a total consideration of £19.1m. The sale is conditional on planning permission being achieved and both parties will work closely over the coming months to submit a planning application. The 100-acre flagship site already benefits from planning approval for 304 new homes together with 46 retained homes, for which the Group achieved outline planning consent in 2019. The Group has subsequently achieved reserved matters approval for the first two phases within the site and sold 184 plots to private housebuilder, Bewley Homes. The Group retains ownership of the remaining 120 plots with outline planning approval. The estimated value of the land and properties owned by the Group within Wilton Park is estimated at £90m. The Group’s current bank loan on this site is circa £32m. The conditional sale of this part of Wilton Park is in line with the Group’s primary key strategic objective of maximising the value within its exiting land portfolio to deliver a reduction in net debt. The land market remains strong and the Group is maximising demand for its high quality assets against this backdrop.  

Orosur Mining 12p  £20.8m (OMI.L)

Orosur announced that results from the first reconnaissance geochemical soil sampling program at the La Esfinge prospect at El Pantano have returned highly anomalous results in Gold and several other pathfinder elements, over a 3.3km strike length of the target, with moderate level anomalism over an additional 3.4km of the target. Gold anomalism in soil samples have returned results in excess of 100ppb Au across the western half of the La Esfinge target, with highly significant anomalies from other elements such as Arsenic (As), Silver (Ag), Bismuth (Bi), Indium (In) and Copper (Cu) across the entire length of the target of almost 7km.  Anomalism remains open to the west. While widely spaced and preliminary in nature, these results are highly encouraging from a first pass program and are in accordance with the geochemical responses we would expect to see from an epithermal gold system in this environment.

Plus500 1,568p  £1,554m (PLUS.L)

Plus500, a global multi-asset fintech group operating proprietary technology-based trading platforms, issues a trading update ahead of today’s Annual General Meeting, which will take place in London at 10.00am BST. The Group has continued to perform very well against its key metrics so far in FY 2022. In addition, the Group has made further substantial progress against its strategic priorities, as it continues to develop new technologies to support the expansion into new geographies and product offerings. During the year-to-date, the Group has announced share buyback programmes totalling approximately $105m, reflecting the Board’s continued confidence in the future prospects of Plus500 and the Group’s strong financial position. These share buyback programmes also highlight a preference for share buybacks from a number of Plus500’s major investors, following the Group’s continued engagement with shareholders. The Group will continue to invest in future growth through further organic investments and acquisitions. This builds on recent achievements including on-going enhancements to the Group’s core product offering, the development of its new US futures offering including becoming a full clearing member of the CME in the US, the purchase of EZ Invest Securities in Japan and the on-going development of Plus500 Invest, its share-trading platform, across European markets.

Rambler Metals 27.75p  £44.2m (RMM.L)

The copper and gold producer, explorer, and developer, announced that the employees of its Ming Mine, Nugget Pond Mill and Goodyear’s Cove facilities, are the recipients of the 2021 John T. Ryan National Award from the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) as the safest underground metal mine in Canada for 2021. This honour is awarded by the CIM to the metalliferous mine that, in one or more complete calendar years, experienced the lowest reportable injury frequency per 500,000 hours worked in Canada. Rambler reported zero lost time accidents at its Ming Copper-Gold Mine operations in both 2020 and 2021 and has now operated for over three years with no lost time injuries. Rambler was awarded this national award in 2015 and 2017 while being selected for a regional award in 2019.

SDX Energy 8.75p  £18m (SDX.L)

The MENA-focused energy company, announced a gas discovery at the SD-12_East well that targeted a separate compartment in the Sobhi Field, within the Ibn Yunus North development lease. SD-12_East (SDX Working Interest: 67%) spudded on 17th April and reached TD at 7,295ft MD on 26 April 2022. The primary basal Kafr El Sheikh target was encountered at 6,567ft MD and discovered 70.2ft of net pay gas sand with an average porosity of 24.1%. A secondary target gas sand in the upper Kafr El Sheikh was also encountered at 4,838ft MD and discovered 9.1ft of net pay gas sand with 30.7% porosity. SD-12_East will now be completed, tested in the primary target area and tied-in to the CPF via the SD-12X flow-line and it is estimated that the well will be on production in July 2022. An announcement concerning the results of the testing of SD-12_East will be made in due course. With the completion of SD-12_East, the rig will now move to the final well in the three well campaign, MA-1X, which is targeting the Mohsen prospect and which has a planned spud date in late May.

Seed Innovations 4.8p  £10.2m (SEED.L)

The AIM quoted 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 (LGP) including its quarterly activities report and appendix for quarter ended 31 March 2022. 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 at SEED, commented: “We are pleased to see that during the quarter, LGP’s revenue (unaudited) and cash receipts increased 30% and 100% respectively from the previous corresponding period. We note the quarter over quarter slowdown of international flower sales due to the required shutdown of the Australian GMP facility that had to be commissioned after an upgrade, and expect to see LGP’s international sales continue their growth trajectory in the following quarters. Among the encouraging highlights of the period, we’re pleased about LGP winning its first Italian supply tender and continuing to gain patients in Australia.”

What’s cooking in the IPO kitchen?

Altona Rare Earths, the AQSE listed mining exploration company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE.  The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022.

*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).

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