Hybridan Small Cap Feast

A round up of the day’s news brought to you by the team at small-cap broker and advisor Hybridan.

Dish of the day

No Joiners Today.

Off the menu

G4S has left the main market  following a takeover. 

Anglo African Oil  Gas and Nu-Oil and Gas have left AIM.

Banquet Buffet

Xtract Resources 5.4p  £40.1m (XTR.L)

Update on the Phase 2 drilling programme at the Eureka copper-gold deposit on small scale mining licence number 22134-HQ-SML  located in the Central part of The Republic of Zambia. Phase 2 drilling programme confirms strike extension of the Eureka mineralised zone to the north-west – now at 300m and still open. Three holes assayed so far from the pit development reconnaissance programme return the best copper grades to date beneath the current open pit, averaging 4.42% Cu over 27.0m (circa 18m true width) in angled hole EX-022, including two 9m sub-intervals >6% Cu and 1m >20% Cu.  In the north-west extension, angled hole EX-019 assayed 0.83% Cu over 18.0m (circa 12m true width), including 1.36% Cu over 8.0m. The near-vertical mineral zone occurs directly beneath approximately 9m of overburden/saprolite, suggesting just shallow pre-stripping will be required. The deposit remains open and untested along strike to the north-west, with additional drilling being planned to define further extension. The objective of the Eureka drilling programme is to define a copper resource to sustain a 250,000 tonnes per annum open pit mining operation for at least 3 years. Excavations are under way to develop a box cut to obtain commercial material for dispatch to the market. The very high grades encountered in hole EX-022 require further investigation at depth to test a possible iron oxide copper gold (IOCG) source model.

Personal Group Holdings 241p £75.24m (PGH.L)

AGM statement from the digitally-enabled employee benefits and services provider. Following the meeting, a message from Mark Winlow, Chairman of the Company, will be made available on the Personal Group website which will include the following statement: “We have numerous strategic initiatives underway that give us great confidence for the future, including the introduction of new insurance sales ‘roadshows’, a focus on margin improvement in Let’s Connect and the development of additional benefits services for Hapi. We believe our capability to sell insurance benefits via phone and video conferencing – methods originally developed in response to social distancing restrictions – is a great new addition to the business, which we will retain going forward. This will help us to acquire, retain and recapture policyholders in the longer term. I am also pleased to announce that we have secured significant Let’s Connect and Insurance clients in the first few months of 2021. Similarly, our success with Sage has continued, with our platform currently delivering in excess of £1m gross annualised recurring revenues. It represents an exciting mid-term opportunity.”

REDX Pharma 65p £178.03m (REDX.L)

The drug discovery and development company focused on cancer and fibrosis, is pleased to announce that it has appointed Peter Collum as Chief Financial Officer (CFO). Peter will commence his role at Redx immediately and will be based in the New York area, in the United States. Peter joins Redx from Pharnext SA, an advanced late-stage clinical biopharmaceutical company, where he has been Chief Financial Officer and Chief Business Officer since July 2019. Prior to Pharnext, Peter spent over 17 years in healthcare investment banking, most recently as a Partner at MTS Health Partners, a boutique healthcare investment bank in New York, where he led and participated in numerous M&A and financing deals for public and private life sciences companies both in the US and internationally. Prior to this, he worked in the healthcare investment banking group at Bank of America, with a focus on life sciences. Peter started his career in the pharmaceutical industry at Roche in US Technical Operations. He holds an MBA from the Booth School of Business at the University of Chicago and a BS from Rutgers University College of Engineering.

Mirada 82.5p £7.35m (MIRA.L)

The provider of integrated software solutions for digital TV operators and broadcasters, provides the following trading update for the financial year ended 31 March 2021. The Board expects trading to be in line with market expectations for revenue, EBITDA and profit before tax for the financial year ended 31 March 2021. After the global impact of the COVID-19 pandemic during much of 2020, trading improved during the second half of the financial year as customers re-commenced their investment plans, driven by end-user demand for OTT platforms and online content.  In particular, the deployment of Mirada’s Android TV solution for its customers has seen stronger demand than internally forecast. Between the launch in September 2020 and the end of the fiscal year on 31 March 2021, more than 450,000 Android TV hybrid set-top boxes were deployed amongst the subscriber base of Mirada’s customers. 

Eckoh 77p £195.35m (ECK.L)

FY Mar21 trading update from the global provider of Secure Payment products. The Board confirms that trading for the year ended 31 March 2021 was in line with market expectations. A highlight was the robust level of operating profit, which slightly exceeded last year’s total of £4.7m, despite the planned exit from US Support, a significant negative currency movement, the material Coral contract in the prior year and the challenges of the COVID-19 pandemic. Strong revenue and order momentum in US Secure Payments; resilient performance in the UK. Expectation of material growth in FY23, after FY22 comparable to current year due to the pandemic.

Empyrean Energy 6.75p £33.04m (EME.L)

The oil and gas development company with interests in China, Indonesia and the United States, provides an update on well design and engineering work for the Jade prospect on Block 29/11, offshore China. Comprehensive analysis completed of drilling data from nearby offset wells, including four CNOOC owned wells. A robust well design for the Jade prospect has been finalised after considering two casing design options. All drilling operation issues have been analysed comprehensively for a safe and cost-effective drilling operation. The Jade prospect has been assessed by Gaffney Cline to have Oil in Place (STOIIP) potential of 225 MMbbl (mean) with an upside case of 395 MMbbl (P10).

Tekcapital 13p £17.01m (TEK.L)

The UK intellectual property investment group focused on creating valuable products from investing in university technologies that can improve quality of life, announced that portfolio company Lucyd has expanded its team with three new hires. Following Lucyd’s completion of its successful, oversubscribed Regulation Crowdfund, where it raised $1.07m at a post-money valuation of $4.8m. The new team members will help the Lucyd brand increase its reach into retail markets, improve the company’s online social media presence, and further establish the company within  the smart eyewear market.

Coral Products  14.5p  £12.01m (CRU.L)

The specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester has exchanged contracts for the sale of its freehold premises at North Florida Road Haydock, Merseyside to Glenbrook CP Limited for approximately £3.5m subject to a closing account reconciliation and conditional on the Group replacing the roof of the Property as described below and other certain conditions precedent. The Group will spend approximately £650k replacing the roof to the Property prior to completion, which is anticipated by the end of Q3 2021.

Botswana Diamonds 1.2p  £9.58m (BOD.L)

Discovery of New, Second Kimberlite Blow at Thorny River. The new blow (swell in the kimberlite dyke)  is about the same size as the River Blow discovered at Thorny River in November 2020.  A doubling of the planned six holes to twelve took the discovery close to the River discovery. The widest kimberlite intersected was 18 metres. The Board expects that further drilling should join the two discoveries into one continuous blow.

Getech Group 26.9p £19.73m (GTC.L)

Getech Group who is using its earth science and geospatial skills to accelerate the path to global net-zero, announced that H2 Green Ltd the Group’s subsidiary in the green hydrogen production sector, has entered into a non-binding strategic agreement with Element Two Limited, the aim of which is to supply green hydrogen to their refuelling stations.

What’s cooking in the IPO kitchen?

Boanerges Limited, announces an application of admission onto the Aquis Stock Exchange. The Directors believe that an opportunity exists to acquire and consolidate holdings in SMEs operating in the technology sector, with the intention of creating value for Shareholders. Initially, the Company’s focus will be searching for companies which are based in the UK or Europe where there may be a number of opportunities to acquire interests in undervalued or pre-commercialisation technologies, or current commercialisation technologies, which when applied, produce cost saving or revenue enhancement for customers. Technology company acquisitions may include those involved in Big Data, Machine Learning, Telematics and Internet of Things sectors. Early acquisition of these innovative technologies should provide maximum returns for Shareholders. Expected 17th May.

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Aquis Stock Exchange Growth Market (Access Segment). Admission on AQSE is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Glantus Holdings, a provider of accounts payable automation and analytics solutions, is considering a listing on the AIM market of the LSE. It is focusing on three product areas; Active AP Discovery, Intelligent AP Automation and Advanced AP Analytics, it utilises its internally developed data platform to offer an integrated solution for the finance function, accounts payable in particular. These solutions are offered to over 300 customers, more than 50 of which Glantus classifies as large enterprises. The Group headquarters is in Dublin, Ireland. The main office for EMEA operations is in Harpenden, England. The main office for US operations is in San Jose, California. The core product development team is based in Katowice, Poland with additional team members in a satellite office in Vilnius, Lithuania, and management support from the Dublin headquarters. Valuation, amount to raise, and timing TBC

Alphawave IP Group is considering an IPO on the standard listing segment of the London Stock Exchange. Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing an equity value of up to USD 4.5b for the Group at Admission. During the year ended 31 December 2020, the group generated revenue of USD 32.8m, exhibiting robust growth and delivering a CAGR of 161 per cent. since the year ended 31 May 2018.

Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of  Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager’s data science and machine learning strategy. Capital to be raised on Admission approximately £6.1m. Mkt cap c. £66.4m. Due 10 May.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected tbc.

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