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

Bould Capital readmitted to AIM changing name to Cizzle Biotechnology Holdings (CIZ.L). Cizzle Biotechnology is in the early stages of developing a blood test for the early detection of a majority of the different forms of lung cancer. Its proof-of-concept prototype test is based on the ability to detect a stable plasma biomarker, a variant of C1Z1 known as CIZ1B. C1Z1 is a naturally occurring cell nuclear protein involved in DNA replication, and the targeted C1Z1B variant is highly correlated with early stage Raised £2.2m. Mkt Cap £25.3m.

Off the menu

No Leavers Today

Banquet Buffet

AssetCo 1250p £81.6m (ASTO.L)

Following the readmission of the Company to AIM on 16 April 2020, the Company has reached agreement to acquire the entire issued share capital of Saracen Fund Managers Limited for an effective total consideration of £2.75m.  The Consideration will be satisfied by the issue of 166,904 new ordinary shares  and £664,774 in cash, in each case to be paid on completion. Saracen is an independent, FCA regulated, fund management business based in Edinburgh that was founded in the late 1990s. Saracen has three funds, operating on the T Bailey Fund Services Limited platform, called Global Income and Growth Fund (approximately £103m  of Assets under Management (AuM)), UK Alpha Fund (approximately £14m of AuM), and UK Income Fund (approximately £2m of AuM).

CentralNic 83.4p £195m (CNIC.L)

The global internet platform that derives revenue from the subscription sales of domain names and web services, has been awarded a project by Dot London Domains Limited, a subsidiary of London & Partners, the business growth and destination agency for London which reinvests profits into creating additional economic growth for the city. London was one of the first cities in the world to get its own official TLD name, .London. Through owning and using a .London domain name, organisations and individuals can boost the profile of their websites through a closer and clear association with the London’s brand and reputation, recognised globally as one of the world’s leading cities. CentralNic’s contract with Dot London Domains Limited is for the supply of technical registry services. These underpin the infrastructure of .London and support its growth and sustainability through marketing programmes and initiatives that drive adoption and use of this sought-after top level domain.

E-Therapeutics 25.5p £107m (ETX.L)

ETX announced further to the announcement made by the Company on 13 May 2021  the successful completion of a Placing, Subscription and Retail Offer via PrimaryBid  conditionally raising gross proceeds of £ 22.5m for the Company at the Placing Price of 24 pence per new Ordinary Share.  The net proceeds of the Fundraise will be used to facilitate a number of initiatives, with a focus on expanding the Company’s proprietary, disease-agnostic, drug discovery and development platform capabilities and asset pipeline.

Gresham House 875p £287m (GHE.L)

The specialist alternative asset manager, announced the purchase of shares in Strategic Equity Capital plc, by Gresham House and its affiliates, equating to 5.4% of the share capital. This investment in shares confirms the Company’s indication, made at the time of the appointment of Gresham House Asset Management Limited  as investment manager of SEC, on 27 March 2020, to acquire a significant number of shares in SEC through the secondary market over the medium-term. Gresham House commenced its role in May 2020 with a clear mandate to improve Net Asset Value (NAV) and share price performance, and to narrow the Trust’s discount. Gresham House is committed to these long-term goals and has put in place a clear plan to achieve them which has made significant progress to date through increased profile and investment process enhancements. As part of this plan Ken Wotton – the top-ranked manager with an outstanding 10-year track record of stock selection in this area – was made lead manager of SEC on 29 September 2020 alongside existing fund manager Adam Khanbhai plus substantial resources including an experienced investment committee. Since then the share price and NAV have risen significantly, by 58.2% and 42.8% respectively.

Helios Underwriting 162.5p £110m (HUW.L)

Helios, the unique investment vehicle which acquires and consolidates private underwriting capacity at Lloyd’s, announces the current mid-point forecasts in respect of its portfolio of syndicate capacity for the 2019 and 2020 years of account based on 1st quarter 2021 estimates. The 2019 result showed a good improvement over the midpoint forecasts as at 31^st December 2020, reflecting the maturing of the year of account and the greater clarity over the reserves required for Covid-19 losses.  The breakeven position for the 2020 year of account at this stage reflects the high incidence of natural catastrophes in 2020. The outperformance of 3.21% of the portfolio against the average for the Lloyd’s market for 2019 continues the trend of outperformance achieved over the last 6 years which averages over 4.7% during the period.

MyCelx Technologies 60.5p £11m (MYX.L)

The clean water and clean air technology experts announced validation and capacity upgrade of its PFAS system at an Australian Department of Defence location. This follows a successful deployment of the PFAS (Perfluoroalkyl substances) system by its Australian partner in 2018. The capacity upgrade contract was awarded as a consequence of the robust operating performance demonstrated over a two-year period, within budget, as well as allowing the customer to both support, improve and adhere to, its environmental goals.

IOG 22.5p £108m (IOG.L)

The UK gas company targeting growth and high returns via an infrastructure-led hub strategy, has signed a collaboration agreement with GeoNetZero CDT, Heriot-Watt University’s Centre for Doctoral Training, a leader in applying geoscience to the challenges of progress towards a Net Zero economy. Under this agreement, IOG will support research into carbon capture and storage (CCS) and other renewable opportunities across quads 48, 49, 52 and 53, the location of its asset portfolio and broader Bacton catchment area in the UK Southern North Sea (SNS).

Physiomics* 6p £6.5m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions has been awarded a further contract by existing client Merck KGaA that it expects to be completed over the next two to three months.  This contract follows on from and is additional to the initial tranche of projects with Merck announced on 17 December 2020, with a value of £270k, intended to be completed in the first six to eight months of calendar year 2021.  As has been its practice since 2019, Merck has awarded contracts to Physiomics in November or December to cover the first two to three quarters of the following calendar year and then extended these or awarded new contracts during the course of the year.  The contract announced today represents the first such extension and others will be announced as and when they are agreed.

Sunrise Resources 0.215p £7.9m (SRES.L)

The Company has now completed the scheduled drill programme at its Baker’s Gold Project in Western Australia. All five of the planned drill holes were successfully completed on schedule and to their designated depths. Assay results are expected in approximately 6 weeks-time.

Velocity Composites 23p £8.3m (VEL.L)

The leading supplier of advanced composite kitting solutions and material management services to the aerospace composites industry, has signed a new three-year contract with a major Tier 1 aerostructures manufacturer based in Hampshire. The Contract includes both an extension in the term of an existing five-year agreement entered in August 2016 and the award of new business covering the remaining additional programmes in production at the Customer site, starting immediately. The Contract term, applying retroactively, is valid from 1 March 2021 until 31 August 2024 and expands the long-standing relationship between the Customer and Velocity to supply a fully managed structural material and kitting service for existing and new aerostructure work packages. Services provided by Velocity to the Customer under the Contract have an expected annual value of £4.1m, including the awarded £1.4m of new business on the A350, A400M and Eurofighter Typhoon aircraft platforms, based upon the latest COVID-19 impacted build rate guidance, and will continue as a major contributor to revenues through to 2024. 

What’s cooking in the IPO kitchen?

Pioneer Media Holdings Inc to join the Access segment  AQSE Growth market. The Company is an investment company focused on the eSports and mobile gaming industries, and all business sectors related thereto. No funds being raised. Due 25 May.

Pharma C Investments to list as a SPAC on the Access segment of the AQSE Growth Market. It is specifically seeking to take advantage of the dynamic regulatory environment surrounding legal Medicinal Cannabis.  Raising £1m Due 26 May.

Clarify Pharma , an investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announced its intention to apply for admission of its Ordinary Shares to trading on the Access segment of AQSE) Growth market. The flotation is expected to value Clarify Pharma at approximately £10.5m. The Company plans to raise approximately £5m. 

Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.

Taylor Maritime Investments to join the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3b of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021.

Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.

Belluscura to Join AIM.  The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40m. Due late May.

Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8% compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 %) followed by EMEA (FY20: 17.0%.), and APAC (FY20: 6.4%.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19. 

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.

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. Due 3 June.

*A corporate client of Hybridan LLP

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