Hybridan Small Cap Feast

Joiners: Critical Metals (CRTM.L) has re-joined the Main Market following a RTO. The Company completed the acquisition of a 57% interest in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/ cobalt project. The Company raised £1.8m through placing 9m new ordinary shares at 20p per share. Approximate Mkt Cap £10.5m.

Leavers: No leavers.

Banquet Buffet

Beeks Fin Cloud Group 156p  £102m (BKS.L)

The cloud computing and connectivity provider for financial markets, provides a trading update the year ended 30 June 2022. Beeks has delivered a record performance and exited the year with annualised committed monthly recurring revenue of over £19.3m, up 40% from the prior year. Beeks confirms that the first customer for its newly launched Exchange Cloud offering is ICE Global Network (IGN) part of ICE Data Services, a division of Intercontinental Exchange (NYSE: ICE), the world’s largest exchange group and owner of the New York Stock Exchange.

Epwin Group 73p  £105.8m (EPWN.L)

The manufacturer of energy efficient and low maintenance building products announces that it has completed the acquisition of Poly-Pure Ltd for an initial cash consideration of £15m on a debt-free and cash-free basis, representing a multiple of 6x estimated 2022 adjusted EBITDA. Poly-Pure’s financial year ended 31 July 2022 and it expects to report revenues of c.£10m (£4.7m: 2021) and adjusted EBITDA of c.£2.5m (£0.4m in the year to 31 July 2021). The acquisition is expected to be immediately earnings enhancing.

Ironveld 0.29p  £8.2m (IRON.L)

The exploration and development company that it has been working with Enernet Global Inc. for an optimised hybrid power plant to deliver clean and low cost power to the smelter facility in Rustenburg. The first stage of the service is underway with a 1MW pre-operations power facility and this will enable Ironveld to test and re-commission the smelter. Enernet will fully finance the power plant and sell energy through a power purchase agreement to Ironveld. Enernet will complete installation of the pre-operations power in September 2022.

Kape Technologies 285p  £1,001.6m (KAPE.L)

The digital security and privacy software business, announces its unaudited results for the six months ended 30 June 2022. Revenues increased by 216.6% to $302.4m (H1 2021: $95.5m), with recurring revenues of $268m, an increase of 353.5% (H1 2021: $59.1m). Operating profit went up 333.8% to $59m (H1 2021: $13.6m). Kape is experiencing growing demand across its entire product suite and expects to generate revenues of between $610-624m for the year ended 31 December 2022.

Nightcap 12.6p  £25m (NGHT.L)

The owner of The Cocktail Club, the Adventure Bar Group and the Barrio Familia Group of bars, announces another new opening for Barrio in Watford, northwest of London. This is the second new opening for Barrio Familia Group following the Covent Garden opening and will be the second new opening since it was acquired by Nightcap, taking Barrio sites within the Group to 6. Nightcap now has 37 sites within its estate and a further 19 premises under offer or in legal negotiations for all its brands. The venue will open later this year.

Omega Diagnostics 2.5p  £6.1m (ODX.L)

The specialist medical diagnostics company focused on Health and Nutrition products, announces its audited results for the year ended 31 March 2022. Revenue increased by 25% to £8.5m (2021: £6.8m). However, losses have increased. Operating loss of continuing operations was £0.9m (2021: £0.5m) and loss from discontinued Global Health operations was £9.9m (2021: £2.5m). With a new executive team, the company has realigned its strategy to focus on its Health and Nutrition products. The Health and Nutrition division is profitable and cash generative, with opportunities for expansion both geographically and in terms of product range.

PipeHawk 14.5p  £5.3m (PIP.L)

The provider of ground probing radar equipment and services, announces that its subsidiary QM Systems Limited (QM) has been awarded a contract by RCR Flooring Products, the manufacturing division of RCR Industrial Flooring S.L.U. to deliver a manufacturing solution for a floor jointing system. This contract will generate approximately £1m of revenue, with one third of which to be paid immediately and the remainder paid over the duration of the contract. The company expects that work will commence immediately with delivery within 12 months.

Sareum Holdings* 162.5p  £110.6m (SAR.L)

The clinical stage biotech company developing next generation kinase inhibitors for autoimmune disease and cancer, notes the announcement from Bristol Myers Squibb that the US Food and Drug Administration (FDA) has approved Sotyktu™­(deucravacitinib), a first-in-class, oral, selective, allosteric tyrosine kinase 2 (TYK2) inhibitor. This is the first approval by the FDA of a medicine based on TYK2, a member of the JAK cell signalling family, and therefore supports Sareum’s confidence in its broader portfolio of TYK2/JAK1 inhibitors focused on autoimmune disease. Sareum has submitted a Clinical Trial Authorisation (CTA) to the UK’s Medicines and Healthcare Products Regulatory Agency to initiate a clinical trial of SDC-1801, with an initial focus on psoriasis, and hopes to begin dosing patients for Phase 1b in 2023.

Spectra Systems 161.5p  £72.4m (SPSY.L)

The machine-readable high speed banknote authentication, brand protection technologies, and gaming security software company, announces its interim results for the six months ended 30 June 2022. Revenue increased by 15% to $9,265k (2021: $8,023k), while adjusted EBITDA was up 8% at $3,818k (2021: $3,522k). The Board believes that the company is on track to achieve record earnings and meet market expectations for the full year. The appointment of Dr. Barbara Paldus as an Independent Non-Executive Director is also announced today.

UK Oil & Gas 0.087p  £15.5m (UKOG.L)

The energy exploration and production company announces that it has raised £3m through a placing of new ordinary shares at a price of 0.0875p per share, representing a discount of approximately 20.3% to the closing price on 9 September. The net proceeds will be used to help with the completion of Phase 2 Turkey seismic programme and the subsequent drilling of a new appraisal well in the Basur oil discovery. The company also announces the appointment of Guzyal Mukhametzhanova as Chief Financial Officer.

What’s cooking in the IPO kitchen?

Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company’s investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. To be raised £150m. Expected 4 October 2022.

The Sustainable Farmland Trust PLC, intends to float on the Premium Segment of the Main Market. The Company invest in a diversified portfolio of farmland and related agriculture-focused assets predominantly located in the US. £200m to be raised. Due TBC.

Aurrigo Group plc, a international provider of transport technology solutions, intends to join AIM. The Group designs, engineers, manufactures and supplies OEM products and autonomous vehicles to the automotive, aviation and transport industries. Capital to be raised  and Mkt Cap TBC. Expected Mid-September.

Welkin China Private Equity, newly established closed-ended investment company dedicated to investing in unquoted Chinese companies, intends to join the Premium Segment of the Main Market. The Company is targeting a raise of up to US$300m.

Georgina Energy, focusing on the exploration, development and monetisation of helium, hydrogen and hydrocarbon interests located in Australia intends to join AIM. Georgina Energy has two principal onshore interests: (1) Mount Winter Prospect in the Amadeus Basin in Northern Australia, which the Company has a right to earn an initial 75% interest; (2) Hussar Prospect, 100% owned by the Company, located in the Officer Basin in Western Australia. Expected late September.

Altona Rare Earths, the AQSE-listed mining exploration company focused on rare earth elements projects in Africa, intends to join the Main Market. The trading of its ordinary shares on the AQSE Growth Market will be cancelled simultaneously and its EPIC will be changed from AQSE:ANR to REE. Conditionally raised £1.1m. Expected late September.

Mise en Place**

This is looking like a significant week on foreign exchange markets with markets anticipating another major rise in US interest rates when the Federal Reserve committee meet next week. Online forex trading platform CMC Markets’ Chief Market Analyst Michael Hewson said that:

“Fed chairman Jay Powell’s comments that the Fed was in no mood to dial back on its intention to hike rates by another 75bps has seen short term yields rise sharply to their highest levels since 2008, in part overshadowing a not insignificant 75bps rate rise from the ECB.

The rise in US yields has also been helped by continued resilience in US economic data, while a sharp rise in UK yields was aided by a sizeable new fiscal package announced by the UK government to protect consumers and businesses from surging energy prices.”

*A corporate client of Hybridan LLP

** Content not provided by Hybridan LLP

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